Integrated Report 2023
Apr. 1, 2022–Mar. 31, 2023

A Future for People and IT

To be an extremely unique entity thatpractice and research, including the esof true computer science
From our founding prospectus of March 1969

Technical capabilities
NSD is a group of engineers, with system engineers accounting for more than 95% of personnel.
We have accumulated technical expertise through our strong track record in system development,
and are highly skilled in the application of advanced technologies.

×

Insightful understanding
We have assimilated knowledge of our customers’ operations by our long-standing relationships
with them. We possess a deep understanding of our customers’ challenges, and leverage ourstrengths as an independent system integrator to provide them with optimal IT solutions.

combines
stablishmentg= Reliability
Our high-level technical capabilities and insightful understanding
have resulted in trusting relationships with customers.
We have therefore been doing business with many of our customers
for a long period of time.

Create the
Future for People
Bring People
to the Future

P05
NSD’s Characteristics
and Strengths

P19
President’s Message

P41
Segment Overview

P57
Outside Directors’ Round-Table Discussion

P48
Environmental Initiatives

P61
P51
Social Initiatives

03

Integrated Report 2023

Governance Initiatives

Contents
Business Foundation
05 NSD’s Characteristics and Strengths
07 NSD History

Management
Philosophy

09 NSD’s Business Lines
11 Value Creation Process

The NSD Group contributes to the sound13 Materiality

development of society by pushing the

15 Management Resources

boundaries of IT to create and provide new

17 Value Provided to Society

solutions beneficial to people and society,

Growth Strategies
19 President’s Message
23 Medium-Term Management Plan

while viewing coexistence and co-prosperity with employees, customers, andshareholders as the very essence of ourcorporate activities.

27 Business Strategies
33 Financial Strategies
37 Human Resource Strategy (Special Feature: Making NSD Stronger)

Business Portfolio
41 Segment Overview

Editorial Policy
This integrated report touches on important financial andnon-financial information while highlighting topics that wewant to convey to shareholders, investors, and other stakeholders, so that they have a better understanding of the

43 Financial IT

initiatives undertaken by the NSD Group to continuously

44 Industry & Infrastructure IT

enhance corporate value. For more information, please vis-

45 IT Infrastructure Construction

it our website.

46 Solution Business

Foundation of Value Creation to Support GrowthReporting Period:	April 1, 2022 to March 31, 2023 (Thisreport includes some information
pertaining to after the reporting period.)
Reporting Scope:	
NSD Co., Ltd., and NSD Group companies

47 Sustainability
48 Environmental Initiatives

Disclaimer

51 Social Initiatives

This report is intended to provide information on the NSD

57 Outside Directors’ Round-Table Discussion

Group’s efforts to enhance corporate value, and is not in-

61 Governance Initiatives

Corporate Data
71 Financial and Non-Financial Data
75 Company Information

tended to solicit the purchase or sale of shares. Any forward-looking statements in this report, such as performance
forecasts, are based on information available to the Groupand the outlook at the time that this report was produced.
NSD makes no promise that it will achieve these forward-looking statements which may also be subject tochange without prior notice. NSD shall not be responsible forany damages resulting from the use of this report.

Integrated Report 2023

04

NSD’s Characteristics and Strengths

The source of NSD’s strengths lies within
our valued customers who place their trust in us,
as well as in our highly professional employees
For more than half a century since our founding in 1969,
NSD has worked on system development for many customers, including financial institutions, manufacturers, andStablecustomer basesocial infrastructure companies.
At the same time, we have built a relationship of trustwith our customers and established a business model forreceiving orders continually. These so-called “lifelong customers” are the NSD’s strengths.

For over half a century, we have accumulated a wealth oftechnical knowledge and expertise through the development

Outstanding
technical
capabilities

of a wide variety of systems for a large number of customers.
In more recent years, we have been refining our ability
to apply advanced technologies, such as AI, IoT, and robotic process automation (RPA), to our business, leveraging these in system development as well as actively using
them in collaboration with customers to create solutions totheir business challenges.

We have around 4,000 highly specialized system engineers
who can meet the diverse needs of our customers, fromindividual consulting to mission-critical large-scale system

Human resourcesthat inspire trustdevelopment.
We also develop our employees into true professionals
by improving not only their technical skills but also their soft
skills. Having such employees helps to build relationships oftrust with customers, creating a virtuous business cycle.

05

Integrated Report 2023

Business Foundation

Growth Strategies

What makes NSD

different

Business Status

Corporate Data

Foundation of Value Creation to Support Growth“We can trust NSD!”—words we often have the pleasure of hearing from our customers. The strengths of NSD lie not only in
our customer base and technical capabilities, but also in the strong sense of responsibility on the part of our employees. Suchemployees sincerely confront the challenges faced by our customers and do their utmost to solve them. Through repeating
this process, we have built a solid relationship of trust with our customers, leading to feedback of the kind mentioned above.

¥77.9

Operating income¥12.5

billionOperatingmarginbillion

EBITDA
marginNet sales

16.1

17.1

¥219.2

Dividend
payout ratio

Total return
ratio

50.6

74.9

ROE

TSR

%

billionMarketcapitalization

%

%

%

19.3

(as of September 30, 2023)

241.5

%

SINCE
1969

4,448

Year established

%

1969

SE ratio*2

95.2

%

Turnover ratio*3

Employees(as of September 30, 2023)

3.5%*1: The above figures are in principle based on fiscal 2022 results.
*2: The ratio of system engineers to non-consolidated employees.
*3: The turnover ratio among non-consolidated employees. Calculated excluding mandatory retirements and persons using the Company’s early retirement incentive program.

Integrated Report 2023

06

NSD History

A journey of half a century alongside our stakeholde
Toward a next stage of further growth through future
History since the Foundation
The management philosophy of NSD is coexistence and co-prosperity
with employees, customers, and shareholders. NSD has grown by adhering to the philosophy and meeting the expectations of all our stakeholders.

FY2023(Forecast)▶ Trends in Net Sales

FY2001
Over 3,000 employees

FY1991
Over 2,000 employees

Founded in 1969

度

FY1970 1990年度

FY1984
Over 1,000 employees

FY19802000年度FY19902010年度FY2000FY2010

FY2020* Figures for 1998 and earlier are non-consolidated figures.

Main Topics
1969 NSD established as Nippon System Development Co., Ltd.
1969
(Original company name in Japanese)

1988 Listed on the 2nd Section of the Osaka Securities Exchange
1988
1991 Certified as a systems integrator by the Ministry of International
1991

Trade and Industry (now the Ministry of Economy, Trade and Industry)

1998 Listed on the 1st Section of the Osaka Securities Exchange
1999

2012 Established NSD International, Inc. (New York State, U.S.)
2012
2012 Established Renbenxindong Technology Ltd.
20122014 Established Chengdu Renbenxindong Technology Ltd.
20142015 Acquired NMSystems Co., Ltd. as a subsidiary*
2015
2017 Acquired Japan Job Posting Service, Inc. as a subsidiary*
2017

年度 年度
年度 年度
1970年度
1970年度
19801980
19901990
1999 Listed on the 1st Section of the Tokyo Stock Exchange
1999

年度 年度
年度 年度
20002000
20102010
2019 Established NSD Advanced Technology Research Institute Co., Ltd.
2019

2001 Acquired FSK Co., Ltd. as a subsidiary2001

2022 Moved to the Prime Market of the Tokyo Stock Exchange2022

2007 Shareholders Relation Service, Inc. launched operations
2007

2022 Acquired Trigger Inc. as a subsidiary2022
2023 Acquired ART Holdings Co., Ltd. as a subsidiary2023

2010 Changed name to NSD Co., Ltd.
2010

2023 Acquired NHOSA Corporation as a subsidiary
2023*The two companies merged in 2018 under the name StellaS Co., Ltd.

07

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growthers
e-oriented strategies
Current Position, and Toward the Future
Net sales

As IT advances, its use is rapidly expanding and deepening in scope.

¥97.0billion

As an IT company, NSD sees this trend as an opportunity to contribute more broadly to societal
development. We are deploying aggressive strategies such as transforming our business model andexpanding our operations, aiming to become a corporate group with over 100 billion yen in net sales.

77.9▶ Trends in Net Sales and Operating Income

51.5
36.6

40.2

61.9

58.0

55.2

65.0

42.9

6.3

4.4

4.8

5.1

FY2012FY2013

FY2014FY20157.1

7.9

FY2016FY20178.6

FY2018

71.1

66.1

9.5

9.8

FY2019FY202011.4

FY2021

12.5

Operating income¥14.0billion

FY2022

FY2023(Forecast)*

Medium-Term Management Plan
1st

2nd

3rd

4th

P.23

IT Trends
Advancements in cloud technology

Increasing demand for and practical applicationof new technologies such as AI and IoT

Shortage of system engineers
Basic Strategies
Hone our competitive edge in systemdevelopment by entering new areas

Improve technical responsiveness to newtechnologies in system development

Expand the scale of the solution business into a second pillar of the Company
Proactively promote M&A* Figures forecast for fiscal 2023 are those announced on May 9, 2023.

Integrated Report 2023

08

NSD’s Business Lines

Solving social issues with the power of IT
by supporting smart living and DX in various industries an
System Development Business

Finance
Banks, trust banks, insurance companies, securities companies, and credit
card companies are our main customers, and we support a wide range of
operations from core systems to industry-specific systems.

Service
We have a wide range of customers,from media organizations to schools
and research institutions, and support
them with a variety of systems tailoredto specific operations, such as election
reporting systems for media organizations, for example.

Telecommunication
We cater to major telecommunications
carriers as our main customers, ranging from landline to mobile phone services. We are involved in the development of core systems as well as support
the development of services utilizing 5G
technology.

Solution Business09

Medical & Healthcare

Human Resources

We provide solutions for dental clinics that
handle everything from electronic medical
record creation to billing processing. We
also offer solutions that support everything from the creation of reports for accident occurring in medical settings to theplanning of countermeasures, as well as
solutions to support health and productivity management.

We provide various HR solutions, supporting everything from recruitment
marketing to selection progress management, as well as solutions that centralize the management of operations
required for staffing.

Integrated Report 2023

Logistics
We provide solutions to centrally manage a variety of operations required forcommercial warehouse management,from basic management tasks such as
acceptance and delivery, inventory,
and location management to peripheral tasks including customs clearance
information management.

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Datand fields

Transportation
Our main customers are airlines, railway companies, and transportationcompanies. We provide a wide range
of operational support, from customer-facing systems (such as reservation
systems) to various back-end systems.

Operational
Improvement
We offer solutions that utilize RFID,
which employs small wireless chips forthe identification and management ofpeople and objects. We support operational improvement in all sectors, including medical and nursing care settings, manufacturing management infactories, as well as contactless entry
and exit management.

Manufacturing
We develop product supply and demand systems and production management systems for customers
across a range of sectors, from electronics and automobiles to food andpharmaceuticals, supporting productivity improvement in a variety of production processes.

Security
We provide solutions for building secure
networks and addressing issues such as
information leakage and unauthorizedaccess. As Japan moves away from
PPAP, a file-sharing method using password-protected zip files, we are contributing to this initiative by providing solutions to enable the safe transmission andreception of large amounts of data.

Public Organizations
We support operational efficiency for
key clients such as central government
agencies, local governments, and affiliated organizations. In addition to systematizing processes within government offices, we provide one-stop
service systems for administrative procedures for example.

Shareholder Relations andInvestor Relations Support
We offer full outsourcing services forshareholder benefits, from planning toordering and handling inquiries aboutcomplimentary goods, and provide aplatform that connects issuer companies with individual investors.

Integrated Report 2023

10

Value Creation Process

NSD aims to build a sustainable society and continu
to solve various social issues that arise as a result oMateriality

P.13

Environment

Management Resources

P.15

Human Resource

Worsening climatechange problem● Professional humanresources

Reducing impact on global
environment● Trustworthy business

目指
Visio

Busines

Sustained gro

partners

Evolution of IT

Technology & Expertise● Extensive businessSociety

Greater cyberrisks● Advanced technology

Contributing to society byusing our characteristics asan IT company
Creating a workplace where
diverse human resources canthrive with job satisfaction

Business● Solid management

systemLack of IT humanresources

External
environment

knowledge andtechnical expertise

expertise andapplication capabilities

Customer Base● Diverse customer baseof blue-chip companies

Financial
金Industry&		InfrastrucIT		Infrastr
Construct

SolutionB		● Co-creation in

Governance
Fall in workingage population

advanced technology
fieldsFinanceStrengthening the foundation
for the Companyʼs existence● High cash flow

generation capability● Sound and solidMore diversity

11

Integrated Report 2023

financial baseFoundatBusiness Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth

uously improve corporate value by using IT
of changes in the external environment.
Value Provided to Society

指す姿on

A company that offers a “Future for People and IT”

Creating Economic Value●

ss Strategies

P.27

●

owth in the system development business

Make the solution business a second pillar of the Company

Net sales:¥77.9 billion
Operating income:¥12.5 billion● Net income attributableto owners of the parent: ¥10.2 billion●

Expand advanced technology and DX-related businesses

P.17

ROE：

19.3 ％(Fiscal 2022 results)

Effective use of M&A

Creating Social Value
Employeess Activities● Growth and career

P.41

development● A healthy and rewarding

work environment

SystemConsulting

IT
金融IT

P.43
Customers&		cture IT
SoftwareDevelopment

ructure		
tion

Advanced
Technology
DX

P.44

Providing
Solutions● Innovation

P.45
Business Partners

P.46

Business		
IT Infrastructure
Development

Maintenance &Operation● Value creation throughco-creation● Fair and equitabletransactions

Shareholders● Improvement of shareholder

tion to Support Sustainable Growth
Human Resource
Management● Sustained growthvalue and return of profits● Highly transparent

P.51

Supply Chain
Management

Governance

P.61

P.54

information disclosureand dialogue

Communities● Solutions that supportsocial infrastructure● Employment

opportunities

Integrated Report 2023

12

Materiality

From among a wide range of ESG-related issues, we have identified materiality items based on the strengths of the
NSD Group and industry characteristics and promote initiatives to effectively help build a sustainable society.
Materiality Identification Process
In identifying materiality, we carried out the process with the advice of outside experts, based on the two perspectives of“importance for stakeholders” and “importance for the Group.”
STEP

1

STEP

2

STEP

While receiving advice
from a third party(external expert), eachmateriality item isprioritized and organizedin the form of a map.

Issues and the voices of eachstakeholder that the Groupshould deal with are identified.

3

The Sustainability
Management Committee
takes the lead in
discussing the validity ofpriorities.

STEP

4

Final decision after
deliberation by the Boardof Directors.

Materiality Map● Environmental materiality● Social materiality

Corporate GovernanceCompliance● Governance materiality

Human Resource Development

Importance for stakeholders

Job Satisfaction for Employees
Data Privacy & Security

Diversity & Inclusion
Energy Management

Responsible Provision of AI

Climate Change

Supply Chain
Management

Waste Management

Social Innovation with IT

Health and Productivity Management

Water

Biodiversity

Contribution to Local Communities

Importance for the NSD GroupE Reducing Impact on Global Environment
Materiality

Climate Change
EnergyManagement

Waste
Management

13

Integrated Report 2023

Measures⃝Thorough environmental management
based on ISO14001⃝Environmentally friendly initiatives
Target CO emissions
2
FY2030: 827 t-CO2 (35% reduction fromFY2020 levels)
FY2050: 356 t-CO2 (72% reduction fromFY2020 levels)⃝Reducing waste by going paperless andrecycling computers, etc.
Target Sheets of printing paper used
FY2030: 630,000 sheets (30% reduction fromFY2020 levels)

Initiatives and Achievements⃝Established an environmental management system incompliance with the ISO14001:2015 certification
standards, and operated and managed it inaccordance with the PDCA cycle.
⃝FY2022 greenhouse gas emissions were 915 t-CO2, a
28% reduction from FY2020 levels (base year).
⃝760,000 sheets of printing paper were used in FY2022,
a 15% reduction from FY2020 levels (base year).
⃝The rate of reusing and recycling computers was kept
at 100%.

RelatedSDGs

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data  S Contributing to Society by Using Our Characteristics as an IT Company
RelatedSDGs

Materiality

Measures

Initiatives and Achievements

Social Innovation
with IT⃝Solving social issues by creating and providing
solutions that use advanced technologies⃝Provided a solution for analyzing the movement of workers
using autonomous navigation and a solution for preparing
meeting minutes using voice recognition and speaker identification technologies. Also utilized advanced technology insystem development.

  S Creating a Workplace Where Diverse Human Resources Can Thrive with Job Satisfaction
RelatedSDGs

Materiality

Measures

Initiatives and Achievements

Human Resource
Development⃝
Skills development through extensive training
systems and practical guidance•Improving technical skills as engineers (fromthe basics to exploring advanced technologies)• Improving human skills as members of society⃝In FY2022, conducted training with an emphasis on agile
development and technology trends.

Job Satisfaction
for Employees

Health andProductivity
Management

Diversity &Inclusion⃝Providing appropriate and sufficient opportunities
for employees to develop their skills⃝Improved compensation through base pay increases, etc. in
FY2022 and FY2023.

⃝Having a fair personnel system that rewards contribution⃝Considering further enhancement of the personnel system,
such as dividing career paths into subcategories toward
FY2024.

⃝Providing an environment where employees canwork safely and in good health⃝FY2022 stress check results showed a downward trend in
the ratio of highly stressed individuals, down 0.9% from theprevious year to 11.5%.

Target Maintain less than 20.0 hours of overtime
Target 75% or more of paid vacation days taken⃝Certified as a Health & Productivity Management Outstanding Organization (Large Enterprise Category) for six consecutive years.

⃝Steady rollout of initiatives for women’s advancement in the workplace⃝In FY2022, the ratio of female employees was 19.6%, andthe ratio of women in management positions was 6.2%.

⃝Creating a comfortable working environment that
respects employee diversity
Target Female employees in FY2025: 23% or more

⃝The ratio of women in new graduate hires in FY2023 was
46.7%.

in⃝Held seminars for male employees on childcare support
systems. The ratio of male employees who took childcare
leave in FY2022 was 30.9%.

Target 
Male employees taking childcare leave in⃝Promoted understanding through D&I training, distributionof educational booklets on LGBTQ issues, etc.

⃝Encouraging equal and fair dealings with business partners⃝Compiled items to be addressed by business partners in
our Sustainability Procurement Guidelines and actively encouraged regular sharing of information with their senior
management.

Target 
Womenin management
FY2030: 10% or morepositions

FY2025: 50% or more

Supply Chain
Management⃝Expanded credentials eligible for financial incentives. As ofthe end of FY2022, there were a total of 4,629 employeeswith IT credentials.

⃝Sharing and taking on sustainability challenges
together with business partners

G Strengthening the Foundation for the Companyʼs ExistenceMateriality

Corporate
GovernanceCompliance

Initiatives and Achievements⃝A Board of Directors that supports highly effective
supervision and transparent management decisions⃝T hree of the seven directors and two of the three Audit& Supervisory Board members are independent outside
officers.

⃝Officer remuneration system to support businessexecution that leads to efficient and sustained
growth⃝Director remuneration consists of base remuneration, bonuses, and stock-based remuneration (over 40% is performance-linked remuneration).

⃝
Fostering and enforcing an awareness aroundcompliance⃝Regularly conducted training on important laws and regulations such as Japan’s Subcontractor Act and Anti-Monopoly Act, as well as on harassment prevention (maintained a
100% participation rate).

⃝Ensuring fair trade and preventing corruption⃝Preventing compliance violations, etc.

Data Privacy &Security

Related
SDGs

Measures⃝I mproving employee literacy on information
security⃝Strengthening security through measures against
cyberattacks, vulnerability diagnostics, etc.

⃝Compliance status is reviewed by the Risk Management
Committee. Issues and other matters are reported to theBoard of Directors.
⃝Regularly conducted training on information security andthe protection of personal information (maintained a 100%
participation rate).
⃝
The Information Security Committee met 12 times in
FY2022. Issues and other matters are reported to the Boardof Directors.
⃝Reinforced measures to prevent unauthorized access andmalware infection, etc.

Integrated Report 2023

14

Management Resources

A group of professionals with over 4,000 system engineers (ratio of system engineers: 95.2%)●

Human Resource

An organizational culture of approaching all tasks
with earnestness and a sincere attitude that ourcustomers appreciate●Professional human resources●

Trustworthy business partners●

A total of more than 4,000 employees with IT credentials, which ensures high-quality, reliable project
management●Ensuring high mobilization capabilities with business
partners that meet selection criteria, primarily core
partners●Promoting the development of professional humanresources through extensive technical training●Technology &Expertise

Extensive business knowledge
and technical expertise●

Solid management system●Advanced technology expertiseand application capabilities●

For over half a century, NSD has accumulated awealth of business knowledge and technical expertise through the development of systems for customers in a wide range of industries●

Thorough project management and strict management standards prevent unprofitable projects at thesenior management level●Advanced technology expertise and application capabilities accumulated through practice and research led
by NSD Advanced Technology Research Institute●

Solid and well-diversified customer base consistingof major blue-chip companies, that is not affectedby changes in the business environment of specificindustries●Customer Base
Diverse customer base of bluechip companies●

Co-creation in advanced technology fields●Solid relationships of trust with customers fromwhom we receive orders on an ongoing basis●Of the top 50 companies, more than 80% havebeen our customers for 10 or more years●

Customers from various industries co-create solutions using advanced technology as investing companies and member companies of NSD Advanced
Technology Research Institute●Finance

Management focused on capital efficiency and cash
flow generation capability●High cash flow generation
capability●Sound and solid financial base●

15

Integrated Report 2023

Aggressive investment in growth and enhanced
shareholder returns through high cash flow generation capability●Securing a sound and solid financial base throughsafe and secure investment of surplus funds and aconservative basic policy for strategic shareholdings●Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

Number of employees

Number of employees with
IT credentials*2

Number of business
partners*2

As of September 30, 2023

Total at the end of FY2022

Results for March 2023

4,448

4,629

305

Number of participants intechnical training*2

Ratio of unprofitableamount to net sales*2

New technologies andDX-related sales in thesystem development
business

Total for FY2022

3-year average

1,027

0.08％

Number of companies
engaged in transactions*2

29.3％

Ratio of sales from top 10
companies*2

FY2022 results

1,348

ROE

19.3％

Number of investing
companies and member
companies of NSD
Advanced Technology
Research Institute

28.4％

11

EBITDA margin

Equity ratio

17.1％

80.3％

Free cash flow

Net assets¥16.0billion¥55.4billion*1: In principle, the above figures are based on fiscal 2022 results.
*2: The figures are provided on a non-consolidated basis.

Integrated Report 2023

16

Value Provided to Society●Financial Indicators
Net Sales

Operating Income / Operating Margin■■ Net sales (millions of yen)

61,94465,063

66,184

71,18877,982■■ Operating income (millions of yen)
● Operating margin (%)

8,654

9,545

11,414

12,524

9,842
16.0

14.7

14.9

14.0
FY2018FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2022Net Income Attributable to Owners of the Parent /Net Income per Share

Shareholders’ Equity / Return on Equity (ROE)■■ Net income attributable to owners of the parent (millions of yen)■■ Shareholders equity (millions of yen) ● ROE（％）● Net income per share (yen)*1

10,21954,70951,194

7,823
5,817

6,314

6,373

48,611
46,89844,43799.37
69.65
FY2018

78.21

80.10

FY2019FY202012.6
FY2021

FY2022Market Capitalization /Total Shareholder Return (TSR)● TSR: NSD (%)● TSR: TOPIX including dividends (%)

170,657

121.5

183,254

217.6

95.0

85.9

FY2018FY2019122.1

FY2020

FY2022

137.5

43.1

124.6

FY2021

FY2022FY2018

58.8

67.7

86.3
52.3

52.4
46

42

FY2019FY2020*1: Per share indicators are based on the number of shares after the Company’s stock split executed on January 1, 2020.
*2: Fiscal 2019 indicators are calculated to include the Company’s 50th anniversary commemorative dividend (14 yen per share).

Integrated Report 2023

FY2021● Dividend payout ratio (%)*2 ● Total return ratio (%)*230
FY2020FY2019

77.1

180.5
139.7

13.7

■■ Dividend per share (yen)*1 *2

145,822
106,697 114,789

FY201815.7

13.8

Shareholder Returns■■ Market capitalization (millions of yen)

17

FY202152

FY202167

FY2022

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth●Non-Financial Indicators
Employees

Female Ratios■■ Number of employees

3,428

FY20183,467

FY20193,522

FY20203,560

FY2021

3,595

FY2022●Employees (%) ●Managers (%)

17.0

17.6

3.5

3.5

FY2018FY2019

18.7

19.3

4.7

5.4

FY2020

FY2021

19.6

FY2022Average Monthly Overtime Hours /Ratio of Paid Vacation Days Taken

Average Years of Service / Turnover Ratio■■ Average years of service ●Turnover ratio (%)*3

15.3■■ Average monthly overtime hours●Ratio of paid vacation days taken (%)

19.4

15.0

19.9

17.0

14.8

19.0

18.5

14.6
14.3

73.8

72.4

3.8
2.8
FY201859.9
2.6

FY2019FY20202.9

FY2021

FY2022

Number of Employees with IT Credentials

4,014

FY20184,001

FY2019FY2018FY2019FY2020

FY2021■■ CO2 emissions (total for NSD + subsidiaries in Japan) (t-CO2)

4,527

4,629

1,341

1,280

1,273
1,026

FY2020

FY2022CO2 Emissions■■ Number of IT credential holders

4,353

63.3

FY2021

FY2022FY2018FY2019FY2020

FY2021915

FY2022*3: Calculated excluding mandatory retirements and persons using the Company’s early retirement incentive program.

Integrated Report 2023

18

President’s Message

We will fulfill our mission as an IT company
through practice and research,
the starting point for everything NSD does
The NSD Group’s DNA
In every era, practice and research form the foundation“To be an extremely unique entity that combines practiceand research, including the establishment of true computerscience”

fered answers that only we could have come up with.
Sensitive to changes in the technology that meets theneeds of the times, our business model continues to

These are the thoughts our founder put into words as

evolve, as nowadays, for example, we are focused on de-our founding prospectus when NSD was established invelopment that leverages advanced technology and the1969. Now, half a century later, NSD has grown into acreation and provision of solutions. Even so, our approachcorporate group with more than 4,000 employees, but inof emphasizing practice and research from the customer’s

every era, the spirit of practice and research forms theperspective remains an immutable constant. Rather thanfoundation of the Group. This is because we believe thatblindly chasing new technologies, our approach is to tack-repeated practice and research will lead us closer to thele challenges one by one, helping customers hone theiressence of problems and enable us to provide the value

competitive edge. We are always thinking about what wethat is truly needed.

need to do to achieve this, and steadily and repeatedly

I believe that the NSD Group has been able to remain

pursue practice and research, firmly planting our feet on

on a growth path until now because we have continuously

the ground and then taking one step at a time. This is therepeated practice and research to solve problems always

spirit that has supported and driven the growth of the NSD

from the customer’s perspective, and have found and of-Group.

Being earnest
Since its founding, another of the strengths that the NSD

into practice, and this approach has resulted in longstand-Group has emphasized is a willingness to act responsibly

ing business relationships with customers whom we canand sincerely in response to requests from customers.

now call “lifelong customers.”

Even when a problem occurs, we resist the temptation toThis earnestness possessed by each and every one ofrun away. Instead, we search for the root cause and faceour employees is an indispensable element for increasing

the problem head on. This attitude has often earned us

the value of our customers’ respective enterprises, and ul-

praise, with customers concluding that “NSD is earnest.”

timately, for enabling the NSD Group to grow. It is the NSD

The most important thing for building a relationship oftrust is to steadily put the obvious, i.e., acting responsibly,

19

Integrated Report 2023

Group’s DNA, and we intend to keep passing it on.

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

Yoshikazu Imajo
President & CEO

Mission as an IT Company
Moving forward with adapting to the changes in the business environment
In recent years, the IT industry has enjoyed a favorable op-

altered the fields we focus on to adapt to changes in ourerating environment with a significant increase in efforts tooperating environment, such as the advancement of cloudachieve digital transformation (DX) against the backdrop oftechnology and the spread and expansion of advanced

the spread of new technologies such as AI/IoT and a shifttechnologies, in order to precisely meet the needs of ourto cloud computing, regardless of domestic and overseas

customers. Currently, as stated in our five-year medi-

economic trends. Although IT has become essential as aum-term management plan, which we began executing in

key infrastructure supporting society, Japan still lags be-

fiscal 2021, we are focusing on helping our customers im-

hind other countries in terms of IT adoption and the use ofprove their competitiveness through systems development

advanced technologies, and we expect IT needs to further

that leverages new technologies and DX, as well as on cre-

increase for many of our customers.

ating and delivering the solutions that society needs.

Given these circumstances, NSD is keenly aware of its
mission as an IT company to help customers surmountThrough such initiatives, we are intent on fulfilling our mission as an IT company.

their challenges through the power of IT. We have alreadyIntegrated Report 2023

20

Presidentʼs Message

Progress with Execution of the Medium-Term Management Plan
Reaching our performance targets in the final year of the planIn fiscal 2022, the second year of the medium-term manage-

been able to complete three M&A transactions.

ment plan, the order environment remained strong as the

In October 2022, we welcomed Trigger Inc., which has

pandemic subsided and IT investments that had been post-

strength in IT consulting, to the NSD Group, thereby rein-

poned were resumed, and there was also a continuous emer-

forcing our consulting capabilities in areas such as upstream

gence of new needs in the new technologies and DX fields.

system development processes. Then, in April 2023, ART

Given this favorable environment, net sales in fiscal

Holdings Co., Ltd., which possesses a stable foundation in

2022 increased by 9.5% year on year to 77.9 billion yen on

such businesses as system development, mainly in thethe back of steadily improving performance of both the

Hokuriku region, also joined the NSD Group. This allowed us

system development business and the solution business.

to secure the ART Group’s excellent customer base along

Of this, net sales in new core business* climbed by 20.7%

with more than 400 high-caliber systems engineers, whichto 28.4 billion yen, with the new technologies and DX-relat-

has helped fortify the foundation for achieving further growthed system development business as the driver. Operatingof the system development business. And later, in May

income rose 9.7% to 12.5 billion yen, as higher revenues

2023, the NSD Group also welcomed NHOSA Corporation,

absorbed base salary increases, M&A-related expenses,

the market leader in the dental systems field, which includes

and amortization of goodwill. As a result, it was our 11th

receipt computers for dental clinics for managing medical

consecutive year of growth in both revenues and profits,

records. We believe that the addition of this company to theand I view this as further evidence that we have made ourGroup will help us to expand our solutions business in thebusiness foundation even more robust.

medical and healthcare domains.

* New core business refers to the new technologies and DX-related systemdevelopment business and the solution business.

Coupled with solid organic growth, we expect the impacts of these three M&A deals to lead to significant improvements in our financial performance in fiscal 2023 and21

One of the measures in our medium-term management

into the future, and we are now within reach of becoming aplan is to invest a total of 20 billion yen in M&A for the sus-

corporate group with consolidated net sales of over 100

tainable growth of the system development business andbillion yen, one of the performance targets we set in our

the expansion of the solution business. So far, we havemedium-term management plan.

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

Toward Further Advancement
Strengthening NSD’s capabilities
For the NSD Group to achieve sustainable growth, I regard

ing to further enhance personnel measures to reflect health

it as essential to secure human resources and bolster ourand productivity management initiatives and respect work-

ability to handle new technologies in the system develop-

life balance.

ment business and to enhance our lineup of offerings in thesolution business.

In the solution business, we intend to further enhancethe development and provision of solutions that involve theIn the system development business, we are continu-

use of services, and grow the business to make it a second

ing to focus on recruiting fresh graduates, as it is this thatpillar of our operations. This move reflects the ongoing piv-

has created the corporate culture of the NSD Group, but

ot from owning to using systems, which is taking placeby expanding mid-career recruitment, including hiring byagainst a backdrop of developments such as the shift toregional offices, we are also working to secure exceptional

cloud computing. As part of this effort, NSD Advanced

professionals who can contribute immediately. Further-Technology Research Institute is pursuing the unique ap-

more, we are concentrating on providing internal technicalproach of forming partnerships with customers and jointly

training programs to new hires to get them up to speed on

developing new solutions that meet their needs. By further

new technologies. We are also stepping up our recruitment

accelerating and strengthening this co-creation process,of personnel with knowledge of new technologies, such as

we will be looking to expand our solutions lineup. On thepeople who have been involved in cutting-edge technology

other hand, when developing solutions in house, it takes

research at graduate schools, etc. And to ensure we cantime to scale up the business. We will therefore continue toretain the top-flight talent we have secured, we are not only

explore potential M&A deals with companies that alreadymoving to improve salaries and benefits, but are also work-

offer competitive solutions in specific fields.

To Our Stakeholders
Aiming for further evolution while respecting NSD’s origins
As I mentioned above, the impacts of our recent M&A

committed to continuing to evolve for further growth.

deals, coupled with the effect of steady organic growth,

In the IT industry these days, the operating environment

are expected to make a strong contribution to our financial

is changing at a rapidly accelerating pace in advanced tech-performance from fiscal 2023 and to set us on the path tonology fields, and the NSD Group must respond flexibly toachieving tremendous growth into the future. So in May

meet these changes. In an environment like this, it is all the2023, we revised up our medium-term management plan

more important for us to deploy our business approach

performance targets to take these impacts into account,from customer perspective and our earnestness as weap-

and are now aiming for net sales of 110 billion yen and anons, and we therefore intend to further evolve and to fulfill

operating income of 16.5 billion yen, having increased both

our mission as an IT company through practice and re-targets by 10%. We expect to achieve our initial target ofsearch, the starting point for everything NSD does.

100 billion yen in consolidated net sales ahead of schedule, but 100 billion yen is no more than a milestone on the

I wish to thank all of you in advance for your continued
support.

road to sustainable growth of the NSD Group. We remain

Integrated Report 2023

22

Medium-Term Management Plan

Two years of progress that has exceeded expectations
Upward revision of performance targets as a result of factors including successful M&A
NSD aims to become a corporate group with net sales
above 100 billion yen within the five-year period of the medium-term management plan that commenced in fiscal
2021.
Over the past two and a half years, we have focused on
expanding the business foundation of the whole NSD
Group through organic growth as well as by leveraging
M&A. As a result of these efforts, we have laid the ground-work for becoming a corporate group with a revenue exceeding 100 billion yen.
Continuing ahead, we will focus our efforts on the development of new technologies and digital transformation(DX)-related systems, as well as solutions, in order to adapt
to a digitalizing society. We thus strive to transform into a
corporate entity with higher added value.

▶ Long-Term Vision

Evolving the business based on a solid foundation
Value propositions that resonate with customers
Autonomous talent who demonstrates creativity▶ Vision for 2025

Create a “uniquely
NSD” touch in thesystemdevelopment
business

Developbusinesses withcore strengths in
multiple domains

Become a groupof IT engineers
who createtransformation
together with ourcustomers▶ Basic Strategies

Achieve sustainable growthin the system development business

Make the solution businessa second pillar of the Company

Expand advanced
technology
and DX-related businesses
先端技術・DX関連事業の拡大

Effective
use of M&A
M&Aの積極的活用

Advancementof ESG initiatives
ESG活動の推進

23

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status■ Progress

To sustainably grow NSD’s system development business,a core business of the Company, we have focused onstrengthening our project acquisition capabilities and securing talent to drive growth. In fiscal 2022, we exceeded
our initial objectives thanks to robust customer orders
within our new technology and DX-related system development business. This resulted in our 11th consecutive
period of revenue and profit growth. Seeing this as a growth
opportunity for NSD as a company, we have concentrated onstrengthening recruitment, expanding our regional bases, aswell as deepening relationships with business partners to enhance our mobilization capabilities.
In the solution business, we have not only strengthened the

Corporate Data

Foundation of Value Creation to Support Growthsales of existing solutions but have also expanded the scale ofbusiness through the use of M&A. Additionally, we have newly
established Advanced Solution Planning Department and DX
Consulting Department to enhance our proposal and development capabilities in advanced technology, as well as strengthen
our ability to capture the needs of the market in response to DX.
On account of these initiatives and the impact of M&A,
we have upwardly revised targets for the final year of our
medium-term management plan as per below. Additionally,
due to the increase in the amortization of goodwill from thisround of M&A, we have added EBITDA and EBITDA margin
to our KPIs as new indicators. This allows for a more consistent comparison of profitability with past performance.

▶ Net sales▶ Operating income▶ EBITDA margin / ROE■ Results■ Projected■ Results■ Projected● EBITDA margin ● ROE

97.0

71.1

¥110.0 billion
103.0¥16.5 billion
14.0

15.0

12.5

77.9

11.4

* The ROE for fiscal 2022 temporarily surged
due to a significant rise in net income attributable to owners of the parent because of extraordinary factors such as substantial gains
from sales of shares associated with the termination of a capital and business alliance.

FY2021

FY2022

FY2023 FY2024 FY2025(Projected) (Projected) (Projected)

FY2021

FY2022

FY2023 FY2024 FY2025(Projected) (Projected) (Projected)

FY2021

FY2022

FY2023 FY2024 FY2025(Projected) (Projected) (Projected)(billions of yen)First year

Second year

Third year

Fourth year

Final year

Final year

FY2021Results

FY2022
Results

FY2023
Projected

FY2024
Projected

FY2025
Projected

FY2025(Initial Projections)

71.1

77.9

97.0

103.0

110.0

100.0

Of which new corebusiness accounted for

23.5

28.4

37.5

43.0

50.0

40.0

Operating income

11.4

12.5

14.0

15.0

16.5

14.5

Operating margin

16.0%

16.1%

14.4%

14.6%

15.0%

14.5%

Net income attributable toowners of the parent

7.8

10.2

8.7

9.5

10.5

10.0

EBITDA

12.1

13.3

16.6

17.7

19.2

-

17.1%

17.1%

17.1%

17.2%

17.5%

-

15.7%

19.3%

15.4%

15.9%

16.6%

15.0%

Net sales

EBITDA margin
ROE* Projected figures are those announced on May 9, 2023.

Integrated Report 2023

24

Medium-Term Management Plan

■ Expand Business Through the Use of M&A
NSD is promoting investment in M&A with a view to expanding our business foundation under our medium-term
management plan. In terms of achievements to date, wehave welcomed Trigger Inc. into the NSD Group in October
2022, followed by ART Holdings Co., Ltd. and its subsidiaries (Art Group) in April 2023, and finally NHOSA Corporation in May 2023.
These M&As not only contributed to sustainable growthin the system development business and expanded scalein the solutions business, which are the basic strategies ofthe medium-term management plan, but also served as aneffective measure to address the increasing severity of theshortage of system engineers (SE). We will continue toconsider the use of M&A in the upcoming term of our medium-term management plan.

▶Points of emphasis in M&A

Trigger
System Development

Strengthening our consulting capability
Contributing to the realization of value propositions that resonate with our customers

ART Group
System Development

Expertise in business domains that are highly synergistic with NSD
Securing high-quality system engineers to enhance our project responsivenessART Technology Co., Ltd. ART Software Co., Ltd.
ART Solution Co., Ltd. human design Co., Ltd. Create Atelier Co., Ltd.
Solutions

Providing RFID solutions
Contributing to the expansion of our solutions lineup

ART Finex Co., Ltd.

NHOSA
Solutions

Providing industry-leading solutions for dental clinics and dialysis facilities
Contributing to the expansion of our solutions lineup

25

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status● Achieving sustainable growthin the system development business
Trigger Inc. is a company that specializes in consulting
focused on execution support in the IT field, as well as
system development and operations support. NSD acquired Trigger Inc. with the aim of bolstering our overall
proposal capabilities by strengthening our offering in the
IT consulting domain, which covers the initial stage ofsystem development (the upstream process). As a result,
we expect an increase in both revenue and profit within
our system development business. We have already begun initiatives aimed at the benefits of the NSD Group,
including the secondment of engineering staff from Trigger Inc. to NSD.
The ART Group has a well-balanced industry portfolio,
consisting of large, reputable companies in sectors suchas insurance, credit cards, electrical and electronic equipment, and automobiles. The Group has approximately 460
employees and generates revenue of about 8 billion yen, of
which around 80% comes from the system development
business. NSD and the ART Group have extremely highcompatibility in business domains, foundations, and strategic objectives. Therefore, to achieve our basic strategy ofsustainable growth in the system development business,
we are combining our respective strengths including technical expertise, development capabilities, and customer
bases. We are actively working to create and manifest synergies in both existing businesses and in new fields.

Foundation of Value Creation to Support Growth

Corporate Data

●Securing SEs
The ART Group is based in Fukui Prefecture and primarily
operates within Tokyo and the Hokuriku region, as well as
developing its business in Nagoya and Osaka. The Group,
as a reputable local company, has stable recruitment
channels primarily in the Hokuriku region, and hires
high-quality talent. NSD opened regional bases in Sendai
and Hiroshima with the aim of securing SEs through local
hire. Welcoming the ART Group aligns with this strategy
of regional expansion.
●Expanding the scale of the solution business
NHOSA Corporation is a company that has provided IT
solutions to hospitals and clinics since its inception in
1979. Its revenue exceeds 5 billion yen. In addition to holding the highest market share in Japan in its field of specialty—the receipt computer system for dental clinics—thecompany also provides operating support systems to dialysis facilities in hospitals and clinics.
In NSD’s medium-term management plan, we aim to
make the solution business our second pillar of revenue
through a specific strategy that involves expanding and accelerating the scale of the business using M&A. The acquisition of NHOSA Corporation significantly contributes tothe strengthening of our solutions.
By merging NSD’s technology with NHOSA Corporation’s expertise, we aim to pursue synergies. With NHOSA
at the core, we will work toward further expansion in the
medical and healthcare fields within our solution business.

▶Solution Business

SR and IR Support

Medical & Healthcare

Security

Human Resources

Business Improvement

Logistics

Integrated Report 2023

26

Business Strategies

Co-creating the future withour customers throughadvanced technology

As the speed of technological innovation accelerates, NSD
is leveraging its unique strengths to create further added
value by sustaining growth in system development, ourcore business since our founding. In addition, we are growing our solution business as a second pillar to stabilize ourbusiness foundation by expanding our recurring revenue
model.

At present, we are also focusing on expanding our new
technology and DX-related businesses that incorporate IT
including advanced technologies, into practical applications,to emphasize the co-creation of new value with our customers. In doing so, we are responding to our customers’ evolving needs. We are also utilizing M&A to further expand therange of solutions we can offer customers.

■ Achieve Sustainable Growth in the System Development Business
Since our founding, for over half a century, our system development business has not only supported NSD’s growth
as our core business, but has also contributed to enhancing the corporate value of our customers across a variety ofindustries. In addition to aiming for further growth in systemdevelopment as our core business, we offer our customers
system development aligned with modern needs by leveraging advanced technologies, unconstrained by traditionalframeworks.
●Strengthening project acquisition capabilities
As times and technologies change, the challenges that ourcustomers face and the objectives they aim for are becoming increasingly diverse. What such a situation calls for is tounderstand the business more than the customer does, tograsp the customer’s thoughts, and to support them inmaking the right decisions about which path to take toachieve their objectives. At NSD, the leaders of our development divisions (who are well-versed in both the customers’
businesses and systems) also handle sales. This enables us
to understand our customers’ needs deeply and efficiently,
and to put in place a structure whereby we can make thebest possible proposals. We are focused on strengthening
our organizational structure to be able to respond to theincreasingly diverse needs of the future.

27

Integrated Report 2023

●Using advanced technology
Taking into account the growing demand for advanced technologies such as AI and IoT, as well as DX using robotic process automation (RPA) and the cloud, NSD is leveraging its
strengths in practical business applications to provide systems that meet these needs. At present, there is a high demand for new technology and DX-related solutions, which are
driving the growth of our system development business. To
support this growth, we are also working to strengthen ourhuman resources by hiring advantageous talent, including
graduate students who have been researching AI.
●Securing the talent needed to drive growth
To expand the scale of our system development business, thepower of people—specifically, the capability of system engineers—is indispensable. In addition to our Tokyo Head Officeand branch offices in Osaka, Nagoya, and Fukuoka, we haveestablished offices in Sendai and Hiroshima. We are focusing
on securing talent through recruitment activities in a wider
geographic area than ever before. By welcoming the Hokuriku
region-based ART Group into the NSD Group, we have also
secured high-quality talent in the field of system development.
We will continue to respond to our customers’ needs with
precision by harnessing the collective strengths of the NSD
Group, including our business partners.

Business Foundation

Growth Strategies

Business Status

Achieve sustainable growth in thesystem development business
Strengthening responsiveness in upstream processes to
win more projects from customers●W inning new business in domains such as digitalization forgovernment administration●S ecuring the talent needed to drive growth●Foundation of Value Creation to Support Growth

Corporate Data

Make the solution business a second
pillar of the Company
Accelerating development within the healthcare field inJapan and overseas●F urther strengthening sales capability of HR-related products●D eveloping new services in the field of shareholder services●

Expand advanced technology and DX-related businesses
Accelerating business expansion in AI product development
Deepening collaboration and bringing about co-creation
with our customers●●Horizontally deploying knowledge and expertise from
specialist departments to other business divisions within
the Company●E xpanding measures such as training programs. aimed atdeveloping DX talent and improving technical skill levels●Effective use of M&A■ Make the Solution Business a Second Pillar of the Company
We are strengthening and expanding our solution businesswith a view to using the advancements in cloud technology
and the spread of subscription models as a growth opportunity for NSD. We are also accelerating the rapid introduction of new solutions to the market by integrating
the operation of NSD Advanced Technology Research Institute, which is responsible for product planning, with ourdevelopment divisions.
●Expanding our leading solutions in niche markets
We are currently focused on expanding our businessdomains, including medical and healthcare, human resources, logistics, security, SR and IR, as well as process
improvement using RFID. While many of our solutions areniche, we aim to be at the top of each of these fields, thereby ensuring steady growth in our solution business.
●Grounded research into advanced technology
We are pursuing grounded technological research that isuseful in real-world business scenarios, while determining
the utility of advanced technologies, in collaboration witha range of customers who are leading enterprises within
their respective industries. With “co-creation” as our keyword, we are creating new solutions by thinking from ourcustomers’ perspective and always working alongsidethem. We are delving into research themes with a view tocommercialization a few years down the line, advancing
the planning and development of solutions that will serve
as sources of competitive strength. Through these efforts,
we will contribute to enhancing the future value of ourcustomers.
●Business expansion through the use of M&A
We are also advancing non-organic business expansion
through the use of M&A. We have welcomed NHOSA,
which has strengths in solutions for dental and dialysis clinics, as a member of the NSD Group, thereby expanding
NSD’s business foundation in the medical and healthcare
fields. Having welcomed the ART Group into the NSD
Group, it is also now possible for us to provide RFID-related
solutions, allowing us to contribute to operational improvement for our customers. We will continue to consider M&A
opportunities where there are attractive solutions with thepotential to lead in niche markets.

Integrated Report 2023

28

Business Strategies■ NSD Group’s Advanced Technology Initiatives
The utilization of advanced technologies will be the key tofuture growth and expansion in both our system development and solution businesses.
A significant characteristic of NSD Group’s researchand development into advanced technologies is our focus
on the application and practical use of these technologies.
NSD Advanced Technology Research Institute, which is
responsible for research and product planning, collabo-

rates with our Advanced Solution Business Division that
promotes commercialization focused on development. Together, they identify advanced technology themes for potential commercialization in a few years’ time. Through theprocess of investigation and research through to development, we help to solve the challenges facing our customers and society.

▶Organizational Chart of Advanced Technology Initiatives
We have established a system that can support the application of advanced technologies to ourcustomers’ businesses across all aspects, from research and planning to development and consulting.

Advanced
Technology
Strategic
Business Unit

Partnercompanies
Collaboration

NSD
Advanced
Technology
Research
InstituteIntegrated
Operations

Advanced
Solution
Business
Division
Offering

Advanced Technology
Development Department

Cooperation

Advanced Solution
Planning Department

Cooperation

DX Consulting Department

Running inparallel

Systemdevelopment
divisionsIntegrated Report 2023

SharingissuesOffering
MarketDevelopment
Business Division

Customers

29

Customers

Customers
SharingissuesBusiness Foundation

Growth Strategies

Business Status●Research into Advanced Technology
In general, R&D sometimes begins from basic researchon elemental technologies with a time horizon of decades. However, at NSD Group, we consider researchand development as one approach for increasing the future value of our customers. We are therefore focusing
our research on technologies that are directly related toour customers’ businesses.
NSD Advanced Technology Research Institute has
established a unique structure whereby it engages inFoundation of Value Creation to Support Growth

Corporate Data

research and development in partnership with major companies that represent various industries, a setup that sets
us apart from other companies. As a result, we are able tolisten to the true voices of our customers, thereby understanding the business challenges they face and the IT solutions they require. This enables us to find more useful andeffective solutions for them.
“Grounded research into advanced technologies”
that is useful for real-world business is a feature of the
NSD Group.

▶Examples of Research

Image
Image
analysisanalysisNaturalNaturallanguage
language
analysisanalysis

ObjectObject(kinetic)(kinetic)
detection
detection
analysisanalysis
Identification
Identificationof uniquenessof uniqueness

Voice
Voice
and andsoundsoundanalysisanalysisSpeaker
identification
and andword
vectoring
Speaker
identification
word
vectoring

UI, UI,
VR,VR,
AR AR

Other
Other
fieldsfields

Voice
Voice
and andgesturegestureUI UIUtilization
Utilizationof VRof andVR andAR, AR,
etc. etc.

Blockchain
Blockchain●Practical Application of Advanced Technology
Due to progress made in advanced technology, we are
now able to offer solutions that are more suited to our customers’ needs, as well as speed up system development.
NSD is actively utilizing advanced technology in both
our system development and solution businesses. Leveraging our extensive technical expertise and understandingof our customers’ operations, we are meeting the increasingly sophisticated and diverse needs of our customers.

In the system development businessIn addition to actively utilizing highly versatile technologies
such as RPA and the cloud, we also handle niche systems
such as using language analysis technology to analyze
survey information as well as data from X (formerly Twitter)and Instagram for marketing and negative online sentimentdetection. Leveraging our strengths as an independent
system integrator, we select technologies that best meet
our customers’ needs from among the many advanced
technology options out there, in order to offer them themost optimal systems.

Integrated Report 2023

30

Business Strategies

Additionally, NSD has a large pool of talent who are
well-versed in the latest development technologies, including employees who have been selected as AWS Heroes
and those who hold the Scrum@Scale certification.
By collaborating on projects with these employees in the
Advanced Solution Business Division and employees in theexisting system development divisions who are well-versed
in our customers’ operations, we are able to provide optimal
systems for solving our customers’ challenges.
In the solution business
By utilizing advanced technology, we have been able tosolve previous problems in solution development, making it possible to meet the needs of our customers more
precisely.
For example, the flow line analysis tool “Tracking Navi”
designed for factories and warehouses combines the “autonomous navigation” patented technology owned by the
National Institute of Advanced Industrial Science and Technology (AIST) with NSD’s lightweight technology. This enables managers to accurately track workers’ movements bysimply giving them a smartphone, reducing both implementation and operational costs compared with measurement
methods that require the installation of numerous beacons.
The AI meeting minutes solution, QuickDigest, utilizes
voice recognition technology and speaker identification
technology to transcribe spoken content for each speaker.
This eliminates the need for manual sorting of speakers,
which was necessary in previous meeting minutes solutions.
In addition, in order to create groundbreaking solutions,31

Integrated Report 2023

not only is technology important, but flexible human thinking in how to utilize it is also essential. The QR code reception system for Microsoft 365 users, QuickReception,
adopts a mechanism that is the opposite of the general QR
code reception systems where visitors show their QR code
on a dedicated terminal. With QuickReception, the visitor
scans the reception’s QR code and completes the checkin process in just one click. By rethinking the approachfrom the opposite direction, we have eliminated the costsof setting up dedicated reception terminals and the hassleof sending QR codes, thereby significantly reducing boththe time and expense involved in reception tasks.
Going forward, we will continue to collaborate with ourcustomers in implementing advanced technologies, creating useful and unique IT solutions, and contributing to social innovation.

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

Product Introduction

Tracking Navi

QuickDigest

Uses autonomous navigation to visualize the location information of workers
operating indoors. By recording all the movements of workers that cannot be
managed by warehouse/inventory management systems, we achieve the digitalization of factories and warehouses.
Automatically creates meeting minutes with a high level of accuracy. Only one person needs to install it to transcribe an entire meeting’s audio. Supports both faceto-face and online meetings. We support meeting review and information-sharing
with meeting minutes that capture a sense of presence.

QuickReception

A fully contactless QR code reception system for Microsoft 365 users that completes
check-in easily in 5 seconds. Using a mechanism that is the opposite of conventional methods, visitors can complete the check-in process simply by scanning the reception’s QR code and clicking once.

TeA-L/Right

AI checks people’s handwashing procedures on their behalf at all times. Offers
support through example videos until the handwashing procedure can be done
correctly. Reliably records who washed their hands and when; information that
can then be used as evidence for hygiene management checks.

Introducing our Engineers

Shigeru Oda (joined in 2010)
Advanced Technology Development Department,
Advanced Solution Business Division
He was recognized as an AWS Hero* in 2022.
He belongs to the Company’s Advanced Solution Business Division
and work as an expert system engineer. Utilizing his knowledge of AWS
and community management skills cultivated through various activities, He
is involved in design, development, and training using cloud technology.
* AWS Heroes are individuals who are recognized by AWS for their extensive knowledge and advanced skills in AWS technologies. They
contribute significantly to improving the skills of AWS users by dis-■AWS certifications obtained by Mr. Oda (partial list)

seminating their knowledge and skills through social media, blogs,
events, and workshops. As of the end of September 2023, only 16
individuals have been recognized as AWS Heroes within Japan, andthey have significant influence over the AWS community worldwide.

Integrated Report 2023

32

Financial Strategies

Supporting growth throughprudent and efficientfinancial management

NSD’s financial strengths lie in its high cash flow generation
capabilities and solid financial base. We aim to further enhance corporate value by leveraging these strengths in bothflow and stock as well as achieving high capital efficiency. Up
until now, we have expanded our business through organic
growth, with the system development business as the driver.
However, in our current medium-term management plan, we
have decided to actively pursue non-organic growth in orderto accelerate the growth of our solution business, and havecommitted to pursuing M&A on the scale of 20 billion yen.

Furthermore, we have always positioned shareholder returns
as the most important management issue, and have been
actively implementing these with a total return ratio of over
70% as our basic policy.
We are committed not only to maintaining and enhancing our cash flow generation capability but also to
managing our finances with prudence and efficiency inorder to support our investment in growth and shareholder returns as well as our daily business from a financial
perspective.

■ Basic Policies for Financial Management
In order to invest in sustainable growth and proactively provide returns to shareholders, our basic policy is to prioritize
capital efficiency and the ability to generate cash flow in our
financial management.
For this reason, we have set ROE and EBITDA margin
as KPIs in our medium-term management plan, and areworking to improve them. For fiscal 2025, the final year of
the plan, we are aiming for an ROE of 16.6% and an EBITDA margin of 17.5%.
At the end of fiscal 2022, ROE was 19.3%, an increaseof 3.6% from the previous year, due in part to special factors such as gains from the sale of shares associated with

●EBITDA / EBITDA Margin / ROE●Operating Cash Flow / Free Cash Flow■■■ EBITDA (billions of yen) ● EBITDA margin (%) ● ROE (%)■■ Operating cash flow (billions of yen)■■ Free cash flow (billions of yen)

16.6
12.1

17.7

19.2

13.3

11.0

10.5
15.9

17.1
15.7

13.7

17.1
15.4

17.2
15.9

17.5
16.6

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025(Projected) (Projected) (Projected)

33

Integrated Report 2023

16.0

6.7

8.1
7.4

FY2019FY20207.2 6.8

5.4 5.0

FY2018FY2021

FY2022

Business Foundation

Growth Strategies

Business Status

the termination of capital and business alliance (excluding
this gain, it was an increase of 0.4% from the previous year
to 16.1%).

Corporate Data

Foundation of Value Creation to Support Growth

The EBITDA margin remained steady at 17.1%, maintaining an extremely high level within the IT industry.

■ Raising and Management of Capital
Since we do not require large-scale business assets (depreciable assets) such as data centers within our businesses, as a principle we provide working capital and capital
investment through cash flow from operating activities andown funds from retained earnings.
We hold an amount of funds on hand, equivalent tothree months of net sales as a guideline, to ensure thesmooth operation of our businesses.
Furthermore, we make every effort to manage surplus
funds safely and reliably, ensuring that we do not invest in
financial instruments that carry the risk of loss of principal
due to price fluctuations upon redemption.

Cash Inflow

Cash Outflow

Investment in growth
Human resource investment, R&D, M&A

Sound and solid financial base
(Prudent raising and management of capital)

High capital efficiency

Enhanced shareholder returns

FY2022 Results

FY2022 Results

Basic Policy on Shareholder Returns

EBITDA margin17.1％

Equity raio 80.3％
ROE 19.3％

Total return ratio 70% or more
Dividend payout ratio 50% or more

■ Investment in Growth
The primary source of organic growth for the Company liesin acquiring human resources that underpin our operational
expertise and technical capabilities, as well as in enhancing
our lineup of unique solutions. Therefore, when it comes toinvestment in growth, we prioritize allocating funds to humanresource investment and research and development costs.
In addition, to further accelerate our growth in a robust
way, we have decided to fully embark on non-organic
growth starting from this medium-term management plan,and have prepared a budget of 20 billion yen.
On account of environmental changes, such as theworsening shortage of system engineers, we have pursued
M&A initiatives. As a result, by May 2023, we had successfully concluded three M&As totaling 19.4 billion yen. These
M&As enabled us to further expand our business founda-tion by securing more system engineers and enhancing ourlineup of solutions.
We are currently focused on the post-merger integration (PMI) processes for the companies acquired throughM&A. However, we would like to continue considering further M&A should favorable investment opportunities arisein the future.

▶Results of Investment in M&A
Share acquisition date
Trigger Inc.

Oct. 2022

ART Holdings Co., Ltd.

Apr. 2023

NHOSA Corporation

May 2023

Integrated Report 2023

34

Financial Strategies■ Cross-Shareholdings
As a principle, cross-shareholdings are held subject to thefollowing conditions:(1) They must contribute to the development and expansion of the Group’s businesses or the welfare
and benefits of our employees.
(2) The invested company's ROE (5-year average) must
exceed our capital cost.
We also review whether these conditions of holding arebeing met for each invested company on an annual basis.
Based on the results of that review, we determine the holding policy for the fiscal year in question.
As a result of reducing our cross-shareholdings basedon this policy, at the end of fiscal 2022, our cross-shareholdings comprised 12 stocks valued at 1.1 billion yen (including
non-listed shares). The proportion of cross-shareholdings tototal assets stands at 1.7%.

■ Shareholder Returns
Having long regarded the return of profits to shareholders
as the most important management issue, we actively return profits to shareholders based on our policy of sharing
outcomes of the Group on a consolidated basis.
Since fiscal 2020, we have implemented shareholder
returns based on a basic policy of a dividend payout ratioof 50% or above and a total payout ratio of 70% or above(both on a consolidated basis).
In fiscal 2022, we achieved a total return ratio of 74.9%,●Dividend per Share / Dividend Payout Ratio■■ Dividend per share (yen) ■ Commemorative dividend (yen)● Dividend payout ratio (including commemorative dividend) (%)

67

68

with a dividend payout ratio of 50.6%. This was a result ofproviding total shareholder returns of 7.6 billion yen, comprising dividends of 5.1 billion yen (67 yen per share annually) and share repurchase of 2.4 billion yen.
Furthermore, we aim to hold treasury stock amounting
to around 10% of the total shares issued. If this number
exceeds 15%, it is our policy to retire it back to approximately 10%.

●Dividend Amount / Share Repurchase /Total Return Ratio■■ Common dividend (millions of yen)

■ Commemorative dividend (millions of yen)■■ Share repurchase (millions of yen) ● Total return ratio (%)

137.5

52
46
14 *

32

46
4,999

42

２

52.4

52.3

FY2020

FY2021

FY2022

FY2023(Forecast)*1: The per share dividend amount is based on the number of shares
after the Company's stock split executed on January 1, 2020.
*2: Commemorative dividend marking NSD's 50th anniversary.

35

Integrated Report 2023

2,699

989

50.6
2,550

FY201986.3
67.7

FY20193,326

FY20204,048

FY2021

FY2022

FY2023(Forecast)*1: Amounts of share repurchase and total return ratio indicate
the acquisition amount and total return ratio for the period
from April to March of the following year.
*2: NSD retired 1 million treasury stock in December 2019,2.344 million treasury stock in March 2022, and 3 million
treasury stock in September 2022.

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth■ Sound and Solid Financial Base
A solid financial base is essential for operating a business in a stable manner. From this perspective, we
strive to consistently maintain the integrity of our balance sheet through conservative measures, such as
setting prudent policies for the management of surplus

funds and strategic shareholdings.
As of the end of fiscal 2022, we have achieved a solid
financial foundation with net assets of 55.4 billion yen
against total assets of 68.1 billion yen.

●Total Assets●Net Assets / Equity Ratio■■ Total assets (billions of yen)■■ Net assets (billions of yen) ● Equity ratio (%)

68.1
55.8

FY2018

59.4

63.2

47.3

53.8

FY2019FY2020

FY2021

FY2022

44.9

49.1

51.8

83.9

82.5

81.8

80.9

FY2018FY2019FY2020

FY202155.4

FY2022Integrated Report 2023

36

Human Resource Strategy

Special Feature

Making NSD Stronger
Mayuko Miike
Executive Officer
General Manager of Human Resources Department
NSD believes that employees are our greatest asset. We strive to
be a company that provides a rewarding workplace, where ourstaff can work with pride and fulfill their dreams.
With the growing importance of human capital management in recent years, NSD has significantly evolved its personnel systems, pursuing a human resource strategy with more of amanagement perspective. Mayuko Miike, Executive Officer andGeneral Manager of the Human Resources Department, shared
her insights regarding the NSD’s human resource strategy.

■ Human Capital Management

Our assets are our earnest organizational culture, which
responds to the trust of our customers, as well as our solid
technical capabilities. It is our people who foster this environment—individuals who are sincere, passionate, andpossess inner strength.
When it comes to our human resource strategy, we
therefore hold dear the NSD mindset that is passed downfrom senior staff to newer hires through focusing on new■ Increasing Our Fans in a Way Unique to NSD
For us to continue being a workplace of choice in an era
where every company is pursuing human capital management, it is essential that our stakeholders, including our
employees, be NSD fans. For that reason, we are now
once again in the process of refining what makes NSD
unique from the perspective of human resources.

● The earnestness that is continuously passed down from
employee to employee cultivates our organizational culture
Our internal training is based primarily in-house, with curriculums developed and implemented by departments specializing in technology and quality, and the human resources
department, which deals with so-called “soft skills.” Junioremployees from advanced technology research departments also act as instructors, with the training also serving
as a venue to roll out technologies internally. Instructors for
new employee technical training are senior staff from theirassigned divisions who, based on the standard curriculum,
teach not only technical skills but also the behavior expectedof working professionals and the basics of being a systemengineer, while applying their own creativity and ingenuity.
When on-the-job training begins, trainers and senior employees provide guidance with the sort of passion from37

Integrated Report 2023

graduate recruitment. Furthermore, we also pursue the hiringof mid-career employees in line with our business objectives
to increase the variety of perspectives and promote diversity.
Additionally, by promoting autonomous learning through inhouse training and mentoring, we are providing an environment where employees can thrive with job satisfaction ingood health over the long term, ensuring that our company
continues to be chosen as a place to grow and contribute.

which they themselves once benefitted. This environment
where employees naturally teach one another and the NSD
mindset is passed on is one of the characteristics of theCompany that we want to continue to value.
Furthermore, we will increase external training for learning
new technologies, video learning tools to encourage self-improvement, and short online courses to provide numerous opportunities for skills development, responding to the appetite of
our employees for such opportunities.
●Meritocracy is the source of producing solid technical capabilities
Although new graduate recruitment is core for us, ourcompany atmosphere that is not bound by academic
background or age is in large part due to both the message from management and the functioning of the personnel system. We have introduced the concept of Mission
Grade, promoting individuals to positions of great responsibility regardless of age, gender, or how they wererecruited. Additionally, we have established a dual track toprovide career paths for highly specialized fields, allowing
employees with a strong orientation toward technology toreceive salaries and benefits commensurate with their expertise through enhancing their specialization. We also

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

NSD’s Human Resource Strategy●V aluing the NSD mindset that is passed down from senior to junior employees, with a focus on new graduate recruitment●A lso pursuing mid-career recruitment in line with our business objectives to increase different perspectives andpromote diversity●P romoting autonomous learning through in-house training and mentoring●P roviding an environment where employees can thrive with job satisfaction in good health over the long term

Details

have a system in place that rewards departmental results
at the end of the fiscal year through a performance-linked
bonus. This meritocracy also serves as a source of producing our solid technical capabilities. We believe thattechnical capabilities include not only IT skills but also an
understanding of the customer’s operations and proficiency in that area. We therefore do not carry out regular employee reassignments that significantly change their area of

P.39・40

specialization. Instead, we have a system that allows forflexible responses according to project needs.
Through revisions to our systems going forward, we will
aim to encourage motivated staff to take on positions withgreater responsibility, on the other hand, present clear career paths for engineers who wish to steadily progress, webring out the strengths of each individual, thereby achieving growth for our employees.

■ Having Employees Who Like the Company Strengthens Its Organization
According to our internal survey for fiscal 2022, the figures for
employees’ willingness to continue working for us and their
engagement metrics were positive in all categories. In an era
where lifestyles are changing and people have more choicesin the way they work, I believe that having employees with thesentiment “I like this company” strengthens the organization.

Going forward, we will continue to cherish our employees and maintain an environment where they can thrivewith job satisfaction in good health over the long term.
Through pursuing our human resource strategy, we aim tobe the company of choice for our employees and otherstakeholders alike.

Topic
Embodying What is Unique to NSD in Health and Productivity Management
At NSD, we are actively engaged in creating an environment where employees can continue to work in good
physical and mental health, enabling us to strengthen
our management foundation by securing outstanding
talent and improving employee productivity.
In particular, the NSD Health Insurance Association takes advantage of its unique characteristic as
the Group’s unified health insurance association tooffer proactive support on both mental and physicalhealth issues common across the Group, in collaboration with the Company. This support extends to thehealth and well-being of employees and their families.
Furthermore, the Healthcare Business Divisiondevelops and provides solutions that support thehealth and productivity management of corporations.
By utilizing these solutions and the expertise possessed by this division in our own health and productivity management initiatives, we are promoting a styleof health and productivity management that leverages
NSD’s distinctive features.
More details about NSD’s health and productivity management initiatives

P.52

Improvement of lifestyle habits combined with employee interaction
Internal company events utilizing “CAReNA,” an app developed in-house“CAReNA de Nihon Isshu” (Around Japan with CAReNA)(Running since October 2022)
This walking rally event involves a virtual tour around Japan by converting the number of steps logged in the app
into distance. When participants reach checkpoints located in various regions, local gourmet foods are delivered totheir homes. The event has sparked conversations
among employees asking one another “How far have you
gone?”
fosteringa ▶︎Average steps taken 7,020
sense of unity while also
6,831
being enjoyable.
The average number
6,346
of steps taken by employees has increased since
before the event, contributing to the enhancement
FY2021 FY2022 FY2023
of their health.
(As of September 30)

Integrated Report 2023

38

Human Resource Strategy● Valuing the NSD mindset that is passed down from senior to junior employees, with a focus on new graduate recruitment● Also pursuing mid-career recruitment in line with our business objectives to increase different perspectives and promote diversity■ Recruitment

At NSD, in addition to skills and experience, we regard theattitude of engaging with work in a sincere manner to be an
important asset. To facilitate the inheritance of such amindset within the organization, we focus our recruitment
activities on new graduate hires. Given that we base ourapproach on in-house training and development, our selection process does not focus on the presence of knowledge at the time of joining the Company or on academic
background—nor does it consider gender. Instead, weplace importance on suitability for the system engineer
role, compatibility of the individual’s personality with our organizational culture, and a high level of eagerness to learn.
On the other hand, in order to strengthen our capability
to deal with cutting-edge technologies, we are also hiring a
set number of individuals who have researched advanced
Ratio of new graduate hires

Ratio of women in new graduate hires

92.8%

46.7%

technologies during their student years to be immediate
contributors to our workforce. These individuals are assigned to advanced technology research departments immediately upon joining the Company and are demonstratinghigh performance from an early stage in their careers.
In recent years, we have also been focusing on acquiring
talent through mid-career recruitment in line with our businessobjectives. While emphasizing unity within the organization
through the inheritance of the NSD mindset, we are also increasing different perspectives and promoting diversity.
Additionally, we pursue various strategies to be an attractive place of employment by enabling diverse working styles
that align with individual preferences by establishing offices inregions other than where our main offices are located, catering to the employment needs of locally-oriented engineers.

Sendai Business Site, established in August 2022
Hiroshima Business Site, established in December 2022

● P romoting autonomous learning through in-house training and mentoring■ Human Resource Development

At NSD, our management philosophy speaks of “pushing
the boundaries of IT.” To meet the rapidly diversifying andsophisticated needs of customers arising from the advancement of IT, NSD is implementing a variety of technicaltraining programs to ensure that employees can acquire
cutting-edge skills. Employees from advanced technology
research departments serve as instructors, making it avenue to roll out technologies internally as well.

Examples of technical training in FY2022● Scrum development for beginners● Agile development̶testing and quality● Agile project management using scrum
development● Agile development̶test-driven development
and automation● Getting started with Angular● Getting started with Nest.js● Readable code reading club

39

Integrated Report 2023

Additionally, to promote autonomous learning, we haveestablished a financial incentive system for employees
gaining qualifications, targeting a wide range of credentials. We keep the eligible qualifications and incentive
amounts under regular review.
In addition to enhancing IT skills, we also conduct thorough training to improve soft skills. We offer annual training
on basic skills as a working professional for employees(new graduate hires) up to their third year with the Company. Furthermore, when employees are promoted, we provide training to help them contemplate their personal vision
as well as management-related training.
The training curriculum is developed in a mutually complementary way by departments specializing in technology
and quality and the human resources department, which
deals with soft skills.

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

● Providing an environment where employees can thrive with job satisfaction in good health over the long term

■ Personnel System

NSD’s personnel system combines the concepts of a job professional qualification system with the Mission Grade system,
creating a structure that reflects both the level of contribution
to the company in the medium to long term, and the role andskills in the short to medium term. We operate on a meritocratic system where both younger employees and mid-careerhires are promoted to important roles. At the end of the fiscal▶︎NSD’s personnel system (including system revisions for FY2024)
Professional
Qualifications

Mission GradeManagement
Level

・・・

Technology
Specialist

↑↓
C

A
↑↓

×

3
↑↓
2
↑↓

Engineeror
Staff

Staff Stream↑↓

Expert Stream

B

Advanced Research Stream

ManagerorSpecialist

Management Stream

Technology Stream↑↓

1■ Human Resource Retention

year, bonuses reflecting the performance of their respective
departments are distributed with the aim of rewarding the results of their work. At NSD, evaluations are never affected bygender or nationality, and pay for men and women is equivalent when viewed by job rank for regular employees.
When it comes to promotion, we have established systems for managerial and advanced specialist positions, under
the concept of encouraging diverse and flexible career formation that matches the role being undertaken and the goals of
the individual employee. For fiscal 2024, the system of advanced specialist positions will be divided into a Technical
Stream and a Staff Stream. Furthermore, within the Technical
Stream, we will establish an Advanced Research Stream tolead new technologies and DX-related fields through cutting-edge and pioneering research, as well as an Expert Stream
where individuals can demonstrate their exceptional expertise,aiming to raise the ranks of highly specialized personnel.
▶Gender pay gap for regular employees by job rank (FY2022)
Managers
93.3％

Section Heads
96.5％

General employees
93.0％* The percentage represents the wages of female employees relative to male employees(taking the latter to be 100%).
* The fact that the pay ratio is in the 9 0% range for all ranks is due to the presence ofdifferent professional grades within each rank, differences in the gender composition ratio
by grade, as well as the average age of female employees being lower compared to male
employees, among other factors.

NSD’s employee turnover rate hovers around the 3% mark,We regard our employees as our greatest asset, andwhich is low compared with others in the industry. The av-

believe that we have been able to maintain a high retention

erage length of service is also increasing, reaching 15.3

rate of talented staff through the implementation of various

years in fiscal 2022. This also compares favorably with in-measures aimed at creating and maintaining a comfortable

dustry peers.

working environment.

Implemented base salary increases from FY2022 to
FY2023●2
 0% of contributions provided as an incentive in the employee stock ownership association●G enerous healthcare support provided through the Group’s
unified health insurance association●S ystems established that go beyond statutory requirements, such as allowing reduced working hours whilechildren are in elementary school●S ystems established for off-peak
commuting, paid leave by the hour,
and a system that allows employees
to accumulate a fixed amount of
paid leave●E mployees with over ten years of service
granted additional leave for meritorious
long service on an annual basis●Enhancing work-life balance
Asset accumulation

Physical and mental healthEnhancing a sense of belonging to the Company

Results of the internal survey for FY2022
I want to continue working for this company going forward●

I want to contribute more than what is expected of meby the Company and my manager

● 

78％
75％

* Willingness to continue working for the Company and engagement metrics were positive in all categories.

Integrated Report 2023

40

Segment Overview

NSD’s primary business is comprised of the system development business and the solution business.
The system development business provides tailor-made services in application development, IT infrastructure construction and others, based on specific customer needs to help customers pursue their management

strategies and resolve their management issues.
The solution business develops and provides customers with solutions as IT products that address issues common to many customers, such as challenges common toeach industry and those related to security.

System Development Business
Financial IT

Solution BusinessIndustry & Infrastructure IT

IT Infrastructure Construction
NSD

NSD Advanced Technology Research Institute
ART Group
NSD International
FSK
TriggerStellaS

Chengdu Renbenxindong Technology

Shareholders Relation Service
NHOSA
Renbenxindong Technology

New Core BusinessNew core business refers to business domains tofocus on under the medium-term management plan
as a driver of the NSD Group’s future growth. In thecurrent medium-term management plan, we havedefined the development areas that leverage newtechnologies or help achieve DX in the system development business as well as the solution businessas new core businesses.
In fiscal 2022, new core business net sales increased by 20.7% year on year to 28.4 billion yen,making a steady increase in the quantitative aspect.
We have set a target of achieving new core businessnet sales of 50.0 billion yen (which accounts for 45%
of consolidated net sales) in fiscal 2025, the final
year of the current medium-term management plan.

41

Integrated Report 2023■■ New core business net sales (billions of yen)

Percentage of new core business net sales to total net sales (%)

37.5

FY2021

FY202243.0

50.0

FY2023
FY2024FY2025(Projected) (Projected) (Projected)

Business Foundation

Growth Strategies

Business Status

System Development Business

Foundation of Value Creation to Support Growth

Corporate Data

Others 1.8%

We provide comprehensive system services based on
customer needs, from system planning and design to development and post-installation operational support.
This business segment comprises the three subsegments of financial IT, industry & infrastructure IT, and IT
infrastructure construction, and has a well-balanced sector portfolio consisting of major blue-chip companies in awide range of sectors, including finance, service, manufacturing, telecommunications, and transportation.
Having greater responsiveness in upstream processes has recently enabled us to support customers in building their business models. In addition, with the use ofadvanced technology, we appropriately meet customers’
needs for digital transformation.

Construction 1.6%
Electricity, gas, and water 1.2%

Finance
37.2%

Public 6.9%
Commerce 4.6%
Transportation 8.7%

Net salesby customer sector
Telecommunications
7.9%

for FY2022

Service
17.1%

Manufacturing 13.0%

Strengths in the System Development BusinessIn-depth operational knowledge and technical expertise gained from many yearsof business dealings withcustomers in a number ofindustries

Ability to apply AI, IoT, andother advanced technology in actual business settings

Around 4,000 engineers
with advanced expertise

Solid customer base centered on major blue-chipcompanies

Solution BusinessWith our technological development capabilities honed in system development and advanced technology application capability, we develop and provide a variety of IT-powered solutions
to solve various business and social issues.
We offer a wide range of solutions, including one-stop human resource solutions that support companies with their recruitment and staffing services, logistics solutions with enhanced functions that support companies with their commercial
warehouse operations, and complete outsourcing services forshareholder benefit programs.
We have been expanding our range of solutions throughM&A and included a receipt computer system for dental clinics
and RFID-based solutions in fiscal 2023.

Human resource
28.4%

Others 37.2%

Net salesby solution category
for FY2022
Logistics
8.9%

Security 13.1%

Shareholder benefit
program services
12.4%

Strengths in the Solution Business
Wealth of technical skills
gained from system development

Ability to apply AI, IoT, andother advanced technology
in actual business settings

Ability to gain insight into customer needs using a customer base consisting of companies in a number of industries

Extensive solutions offeredby multiple subsidiaries withstrengths in specific fields

Integrated Report 2023

42

Financial IT and Industry & Infrastructure IT

Financial IT
Subsegment Overview
We provide software development and system consulting for financial
services customers, such as banks, insurers, and securities companies.
Main Examples of Development●B anking: accounting systems (deposits, forex, lending, etc.) and information

systems (customer information file and anti-money laundering)●T rust: pension management systems and securities agency systems●S ecurities: online trading systems and order-taking systems● Insurance: policy management systems and sales support systems●C redit cards: credit information management systems and e-commerce

payment systems■ Vision in the Medium-Term Management Plan
● A ccurately respond to the diverse needs of customers from legacy systems to systems

that utilize new technology, and further deepen our business relationships
As the promotion of DX has been accelerating in recent
years, banks, insurers, and other financial services companies have been making a transition to next-generation systems, giving rise to the need for reconfiguring legacy systems into more flexible systems.
NSD has many years of experience developing andmaintaining key customer systems and understands every■ FY2022 Results

aspect of these systems. In addition to this knowledge, wewill further deepen our relationships with customers by focusing on the development of engineers who can handle
open system development from upstream processes
through, for example, the enhancement of their open system design know-how.

Subsegment net sales increased by 10.1% year on year tobers of system renewal projects mainly in mega banks and24,561 million yen and operating income increased byexisting system development projects, in addition to a

13.3% to 4,522 million yen due to a significant increase insteady increase in orders from insurance companies andorders from banks resulting from an increase in the num-credit card companies.

Net Sales

Operating Income / Operating Margin■■ Operating income (millions of yen) ● Operating margin (%)■■ Net sales (millions of yen)

20,56020,79022,307

4,522

24,561
3,398

3,597

3,991

17.9
17.3
16.5

FY201943

Integrated Report 2023

FY2020

FY2021

FY2022FY2019FY2020

FY2021

FY2022

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

Industry & Infrastructure IT
Subsegment Overview
We provide software development and system consulting to customers in industries like manufacturing, telecommunications, transportation, and the public sector.
Main Examples of Development●S ervice: election reporting system●T ransportation: operations plan management system●M anufacturing: product supply-demand management system●T elecommunications: calling rate management system●C ommerce: order management system●E lectricity: power rate management system●C onstruction: design management system■ Vision in the Medium-Term Management Plan
● Improve response capabilities to new technology and DX projects by working with the Advanced Technology Strategic Business Unit
● Increase orders in new fields utilizing 5G / 6G

In the industry & infrastructure IT subsegment, we dobusiness with customers in a wide range of industries, and there is growing demand for new technology and DX across all these industries.
NSD is exploring innovation in the development of
new technologies and DX-related fields. It is also improving the responsiveness of our software development by sharing technologies within the company■ FY2022 Results

Subsegment net sales increased by 9.2% year on
year to 35,506 million yen due to a steady increase inorders from the manufacturing, transportation, andpublic sectors, in addition to the effect of M&A of Trig-

Net Sales

ger Inc. Operating income increased by 6.3% year on
year to 5,919 million yen mainly due to an increase incost of sales resulting from a base pay raise, as wellas to M&A costs and amortization of goodwill.

Operating Income / Operating Margin■■ Net sales (millions of yen)

29,880horizontally and vertically. Furthermore, it focuses on
training open system engineers to meet the various
needs of our customers. As the need for services that
address large capacity and low latency utilizing 5G
and 6G technology is expected to increase, we will
improve our expertise and technology related totelematics services with the aim of increasing orders
in new fields.

30,33935,506■■ Operating income (millions of yen) ● Operating margin (%)

5,569

32,509
4,750

5,919

4,694
17.1

15.9

FY2019FY2020

FY2021

FY2022FY201915.5

FY2020

FY2021

FY2022Integrated Report 2023

44

IT Infrastructure Construction and Solution Business

IT Infrastructure Construction
Subsegment Overview
We provide services for IT infrastructure and network construction, system consulting, and system maintenance and operation to a broad
range of customers, including financial institutions and the public sector.
Main Services●P lanning and procurement: consulting services and IT infrastruc-ture service sales support●D esign, construction, and implementation: design and build-up

support of cloud, platforms, networks, storage, virtualization
infrastructure and security, and application development support●O peration and maintenance: system management and maintenance services, system operation services, life cycle management services, and help desk services■ Vision in the Medium-Term Management Plan
● Foster technical skills and mobilization capabilities that lead a response to non-functional requirements mainly using cloud technology● Expand new business to help companies transit away from legacy systems and promote government digitalization

The key to sustainable growth in the IT infrastructure field isimproving our responsiveness to virtualization technology,
cloud use, operation automation, and other technologies
following the needs of today. We will share knowledge andexpertise with the Advanced Technology Strategic Business
Unit and NSD Advanced Technology Research Institute toenhance our technical skills and mobilization capabilities.

■ FY2022 Results

Subsegment net sales increased by 9.9% year on year to
10,275 million yen due to a significant increase in orders
from the public and financial sectors, including those for infrastructure construction projects from government agencies, cloud computing projects from banks and insurance
Net Sales

companies, and business process outsourcing projects
from local governments. Operating income increased by
15.3% year on year to 1,750 million yen partly due to an
improvement of profitability.
Operating Income / Operating Margin■■ Net sales (millions of yen)

9,353
7,730

In addition, there is a growing movement by companies tobreak away from legacy systems and by government to promote digitalization. This necessitates response to non-functional requirements such as security and scalability on a different
level than before. To make the best proposals for these requests, we will focus on improving our consulting capabilities in
addition to enhancing our technical skills as mentioned above.

10,275■■ Operating income (millions of yen) ● Operating margin (%)

1,750
1,518

8,052
1,117

1,166
16.2

FY201945

Integrated Report 2023

FY2020

FY2021

FY202214.5

14.5

FY2019FY2020

FY2021

FY2022

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth

Solution Business
Subsegment Overview
We offer an extensive lineup of solutions, from highly ubiquitous security
software to packages for specific industries.
Main Examples of Solutions●M edical and healthcare: receipt computer system for dental clinics, dialysis treatment

support system for medical institutions, medical incident management system, andremote health support service●H uman resource: recruitment management system and staffing services support system●L ogistics: commercial warehouse management system●O peration improvement: RFID* solutions, and tools for analyzing the movementof workers in factories, warehouses, and other work sites*Automatic identification technology that uses radio waves to read and write information on IC tags ina non-contact manner●S ecurity: secure file-sharing system and solutions to prevent misdirected emails●S R and IR support: complete outsourcing services for shareholder benefit programs■ Vision in the Medium-Term Management Plan
● Expand the scale of the solution business into the second pillar of the Company

We aim to expand the solution business by expanding ourlineup of niche-top solutions and putting more effort into
selling our existing solutions so as to make the solution
business our second earnings base along with the systemdevelopment business.
We will put a particular focus on developing and offer-■ FY2022 Results

Segment net sales increased by 8.0% year on year to 7,836
million yen due to a significant increase in orders for rental
business solutions in addition to an increase in orders forshareholder benefit program services, while there was a decrease in sales of human resource solutions and logistics
Net Sales

ing solutions that utilize advanced technology and will workwith our customers on research and planning to create
new solutions.
We will also accelerate the expansion of our lineup ofsolutions through M&A.

solutions due to the absence of sales of large-scale projects
in the previous fiscal year and delays of orders. Operating
income increased by 16.2% year on year to 702 million yen
partly due to an improvement of profitability.

Operating Income / Operating Margin■■ Net sales (millions of yen)■■ Operating income (millions of yen) ● Operating margin (%)

7,836
7,134

7,098

702

7,257

572

604

494
8.1

8.3

6.9

FY2019FY2020

FY2021

FY2022FY2019FY2020

FY2021

FY2022Integrated Report 2023

46

Sustainability

Sustainability Declaration
Recognizing that the realization of a sustainable society is essential, we fulfill our social responsibilities byactively contributing to the sound development of society through the creation and provision of new solutions beneficial to people and society , viewing coexistence and co-prosperity with employees, customers,
and shareholders as the very essence of our corporate activities. We simultaneously strive for sustainablegrowth by promoting ESG initiatives.

Environmental
Initiatives▶▶P.48GovernanceInitiatives
SocialInitiatives▶▶P.5147

Integrated Report 2023▶▶P.61

Environmental Initiatives

E

Environmental Initiatives
NSD recognizes that the conservation of the earth’s environment is one of the issues for management.
In an effort to limit our impact on the environment, the Group is working to reduce energy consumption andwaste derived from our business activities in accordance with our Environmental Policy.
NSD will contribute to a better, more prosperous global environment in collaboration withour customers and business partners across various industries.

Environmental Policy
To create a sustainable society, the NSD Group will,in accordance with the Group’s Sustainability Declaration,systematically and continuously work to conserve the earth’s environment,
including tackling the problem of climate change, helping to build a better,more prosperous global environment in collaboration withcustomers and business partners across various industries.
1. We will help conserve the global environment by reducing the impact our business activities, services, andproducts have on the environment.
2. We will clarify and comply with all environmental laws, regulations, and agreements associated with ourbusiness activities, as well as the requirements of our customers and local communities.
3. We will actively work to save resources and reduce waste by recycling to reduce the impact our offices haveon the environment.
4. We will establish an environmental management system and set environmental targets, reviewing them
regularly to make continuous improvements. We will also deliver education and promote activities onenvironmental issues to raise awareness among each and every employee on the environment.

■ Climate Change & Energy Management●Tackling climate change
In order to address the increasingly serious issue of global
climate change, NSD has positioned climate change and energy management as one of its material items, and is working
to reduce greenhouse gas (CO2) emissions by setting medium- to long-term targets in line with the framework of theParis Agreement.
We conduct business with customers in a wide range ofindustries, and so we recognize the importance of predicting
the impact that climate change, which brings more abnormal
weather, storms and flood damage, will have on our businessactivities. Based on this understanding, we will analyze therisks and opportunities that climate change poses to our business and we will disclose all such information.

●Reducing greenhouse gas (CO2) emissions
Since NSD is mainly engaged in software development
and does not have facilities, such as data centers,
which use large amounts of energy, the Group’s direct
CO2 emissions are very small. As such, we are working
to reduce CO2 emissions by attempting to cut down on
the amount of electricity and air conditioning we use in
our offices.
To achieve these reductions, we have set and areworking towards long-term targets of a 35% reduction
by fiscal 2030, ending March 31, 2031, and a 72% reduction by fiscal 2050 (compared to fiscal 2020 levels).
CO2 emissions in fiscal 2022 were 915 t-CO2, a 28.1%
reduction compared to fiscal 2020 (base year).

Integrated Report 2023

48

Environmental Initiatives●CO 2排出削減目標▶ CO2 emissions and reduction targets（t-CO2）
Results

1,273

Results

Results

TargetTarget19% reduction 28% reduction 35% reduction 72% reduction●Renewable energy and LED lighting
NSD has few in-house facilities with many of its offices
rented in office buildings. Since it is difficult for us to intro2 排出量推移●CO
duce
renewableenergy and LED lighting by ourselves
when（implementing
initiatives in our offices, we are making
t-CO2e)requests to the building management companies at each
1,341
of our sites
to switch
to renewable
1,280
1,273energy CO2-free energy
tariffs and to change to LED lighting.
1,026
We have already switched to renewable energy power000
at our head office and Nagoya branch office. LED lighting
has also been introduced at several business sites, including our head office.

2018年度FY2020(base year)

FY2021

FY2022

FY2030FY20502019年度

2020年度

2021 年度

2022年度※CO2排出量計算式：各拠点の電力使用量×排出係数* Coverage: Head office, branch offices, business sites, consolidated
subsidiaries (excluding overseas subsidiaries)* Energy measured: Scope 2 emissions only
* CO2 emissions calculation formula: Electricity consumption at each site ×Emission factor at each site(Emission factors are based on those of the electric power companies as
disclosed by the Ministry of the Environment)■ Waste Management

NSD has been working to reduce waste, mainly with the recycling of computers that are no longer used in its business. We
recognize that the reuse and recycling of waste and resources
through separation is one of the issues of conserving the environment.
In accordance with our Environmental Policy, we will continue to actively work to reduce waste by going paperless andthrough the reuse and recycling of computers in order to reduce the impact our offices have on the environment.

demic, NSD’s move to go paperless has made great progress with the implementation of computer workflow systems
and remote working.
● 印刷用紙の利用枚数推移・削減目標▶ Sheets of printing paper used and reduction targets(ten thousands of sheets)
Results

90

Results

Results

Target5% reduction 15% reduction 30% reduction●100% computer reuse/recycling rate maintained
In terms of the reuse and recycling of computers, the department in charge regularly shares information and coordinates efforts within the Company. As such, we have beenable to maintain a 100% reuse/recycling rate.
●Going paperless
As part of its efforts to go paperless, NSD is introducing EDI
transactions in its supply chain, working to convert internal
documents into electronic form, and cutting down on theamount of printer paper it buys and uses.
Taking advantage of countermeasures in light of the pan-49

Integrated Report 2023

FY2020(base year)

FY2021

FY2022

FY2030Business Foundation

Growth Strategies

Business Status■ Environmental Management System●Environmental management structure
To ensure that our environmental initiatives are carried out,
NSD has established an EMS* Promotion Team under the
Sustainability Management Committee.
The EMS Promotion Team directs and supervises theenvironmental initiatives in each department of the Compa-

Foundation of Value Creation to Support Growth

Corporate Datany, and works to continuously improve the Company’s environmental measures through dedicated internal contact
points with customers and business partners across various industries.
*EMS: Environmental Management System

Shareinformation

EMS Promotion Team
Chief Environmental Officer(Chief General Manager of Corporate Service Division)
Environmental Manager
Secretariat●ISO 14001:2015 certification
NSD has established an environmental management system in compliance with the ISO 14001:2015 certification
standard, and operates and manages it using a PDCA
cycle in order to clarify the impact of its business operations on the global environment and work to improve it.
Specifically, the EMS Promotion Team takes the lead informulating annual environmental targets that lead to environmental conservation, such as reducing the amountof electricity and copy paper used at offices, dissemi-

Direct andsupervise

Customer & Business Partner
Contact Points

Gatherinformation

All Departments

Direct andsupervise

Department Environmental Managers

ReportDepartment Environmental Promotion Officers

Customers & Business Partners

Sustainability Management Committee

Board of Directors▶ Environmental management structurenates details of them to employees each month in cooperation with department environmental promotion officers, encourages employees to work toward achieving
them, and reports on the state of their achievement.
To raise environmental awareness among each and every employee, we also provide environmental education(e-learning) for all employees, conduct regular internal audits to assess the state of our environmental activities,
and implement initiatives to achieve targets and makecontinuous improvements.

Certified organization

NSD Co., Ltd. Head Office

Scope of certification

System Development Business• Planning, design, and development of IT systems• Construction of IT infrastructure
Solution Business• Provision of services that utilize IT• Sales of software products

Certification body

Japan Quality Assurance Organization (JQA)

Standard

ISO 14001:2015 / JIS Q 14001:2015

Certificate number

JQA-EM7822

Initial date (expiry date)February 3, 2023 (February 2, 2026)

Integrated Report 2023

50

Social Initiatives

S

Social Initiatives
Recognizing that our employees are our greatest asset, NSD strives to;operate a fair personnel system that rewards contribution; provide ample and well-suited opportunities for skill development;
create a comfortable working environment, and;create a workplace where diverse human resources can thrive with job satisfaction.
These initiatives are being promoted not only within the Company but throughout the whole supply chain.
We are also aiming for coexistence and co-prosperity with society by actively engaging in social contribution.

■ Human Resource Development

In order to respond to changes in the business environment, such as with the ever-advancing cutting-edge technologies and rapid progress in digital transformation, NSD
not only conducts a range of technical training programs
so that employees can acquire leading-edge technologicalskills, but also provides soft skills training that encourages
employees to be self-starters. In this way, NSD enhances
both the technical and human capabilities of its workforce.
In addition to such training programs, NSD nurtures
employee growth through the practice of assigning theright person to the right job.
●Training to improve technical skills
NSD conducts training for employees based on their position and experience in the Company. The training is aimed
at giving employees the basics of systems development
and project management, including risk management
training and drawing up project plans for systems development.
We also have some elective training programs so that
employees can improve their skills. This type of training
seeks to provide employees with system development
skills related to trends in technology, new technologies andDX-related businesses, as well as the project management
skills required for the respective roles and positions of theemployee. In fiscal 2022, we conducted training on various
topics such as Agile development—test-driven development and automation and Getting started with Angular. We
also provide our employees with opportunities to participate in a variety of training programs, including externalgroup training, SEcollege (a course for system engineers),
and e-learning courses.

51

Integrated Report 2023

Aiming to give and help employees improve their project management skills, NSD also encourages employees
to obtain Project Management Professional (PMP)® certification which is granted to those who have a certain level ofexperience, education, and knowledge
in project management. The purposeof this training is to help those employees who are expected to go on to promote projects acquire the right kind of
project management expertise.
• The PMI® ATP logo is a registered trademark of the Project Management
Institute, Inc.
• PMP® is a registered trademark of the US-based Project Management
Institute.

●Training to improve soft skills
NSD conducts training for employees based on their position and experience in the Company to help them develop
their soft skills around the idea of becoming self-starters.
Such training includes facilitation and coaching, vision formation, and strengthening value proposition capabilities.
By combining these programs with on-the-job training toencourage employees to gain the job knowledge and expertise as well as the skills specific to each workplace, wehelp support the growth of our employees with respect toevery individual’s unique characteristics.
We also conduct training on specific topics to foster anawareness of compliance issues, ensure a thorough understanding of information security, and improve leadership skills for junior employees.

Business Foundation

Growth Strategies

Foundation of Value Creation to Support GrowthBusiness Status

Corporate Data

■ Health and Productivity Management Initiatives
For each and every employee to fully demonstrate their capabilities and play an active role, they must be physically andmentally healthy and have a fulfilling private life. The Chief
Health & Productivity Management Officer is the president.
The top officer responsible for planning and implementing
initiatives is the officer in charge of human resources. The Human Resources Department promotes health and productivity management in cooperation with the Healthcare Business
Division and the NSD Health Insurance Association.
Especially, the NSD Health Insurance Association takes
advantage of its unique characteristics as the Group’s unified health insurance association to actively support thehealth promotion of employees and their families in cooperation with the Company.

The Health Promotion Office (part of the Human Resources Department) engages in health and productivity
management across the organization through the efforts ofindustrial physicians and health nurses, who are healthcare
professionals.
In addition, with the aim of instilling the philosophy ofhealth and productivity management, we have establishedthe “Health Promotion Meeting” consisting of both managers and non-managers from our various business units anddivisions. By collecting the opinions of employees, we areworking to smoothly carry out health and productivity management measures.

Sustainability Management Committee
Board of Directors, Management Meeting▶ Organizational structure for promoting health and productivity management
Chief Health & Productivity
Management Officer (President)
Officer in charge ofhuman resources

Health Promotion Meeting
HealthHealthPromotion
Promotion
Managers
Members

Human Resources Department
Health Promotion Office
Report

HealthCounseling Office
Industrial physician
Health nurse

HealthPromotion
Staff

NSD Health Insurance
Association
Collaboration

Healthcare
Business Division

Information
sharing andconsultation

Employeerepresentatives

Employees, Families, Business Partners●Health promotion and disease prevention
NSD strives to help improve employees’ lifestyle habits
and health literacy to prevent physical and mental
illnesses. We drew up a “Health and Productivity
Management Strategy Map,” which clarifies relations
between initiatives and effects, and are strategicallypromoting each measure.
We introduced a health points system in fiscal 2 0 1 7
using a health app developed in-house to improve
employees’ health literacy by supporting them to achieve
health goals that they set themselves and providing healthinformation. Although there was previously an issue withlack of exercise due to work centered primarily arounddesk work, the percentage of employees walking over
8,000 steps a day and the average number of steps haveincreased as a result of encouraging exercise using thissystem. For example, as an in-house event using thissystem, we have held a walking rally event that involved avirtual tour around Japan by converting the number ofsteps logged in the app. In this event, we aim to makewalking even more fun by earning local specialties andpoints by reaching checkpoints along the route. As aresult, both the number of participants and the average
number of steps increased compared to before the event,leading to improved employee health.

We have also put into place a consultation systemstaffed by staff from the Health Counseling Room and
Health Promotion Office, providing ongoing follow-up or
encouraging employees to undergo more thoroughexaminations based on the results of health checkups.
We are also focusing on initiatives to prevent theoccurrence of mental and physical illnesses, such as
operating a BMI improvement program that provides
exercise and dietary guidance to employees with a high
BMI, providing e-learning on mental and physical health,and streaming videos on mindfulness.
▶ Number of participants and effectiveness of the walking rally event
Participants
1,593 people

8,000 steps or more per day
406 people

Average steps
6,831 steps
6,346 steps

1,395 people

FY2021 FY2022

292 people

FY2021 FY2022

FY2021 FY2022
Integrated Report 2023

52

Social Initiatives●Balancing work with childcare, nursing care andmedical treatment
NSD has created a considerate system so that employees
bringing up children can continue to work comfortably withpeace of mind. As well as establishing a system that surpasses the requirements of Japanese law, such as allowing childcare leave to be extended until the end of April ofthe fiscal year following the date the child reaches the ageof two, and allowing employees with children to work
shorter hours until the child finishes elementary school, we
provide support for employees returning to work and provide information even during childcare leave. We have established a corporate culture where employees can feel
free to take childcare leave and NSD follows up with themwhen they return to work. As a result, the percentage offemale employees taking childcare leave has been 100%since fiscal 2000, when we began taking this statistic. We
also encourage male employees to take childcare leave,with the number of male employees
doing so, on the rise. Our target ismore than 50% of male employees
taking childcare leave.
We have also created a system
where employees can balance workand caring for family members bytaking leave or working shorter hours. Industrial physicians
and public health nurses counsel employees who are being treated for cancer, cardiac diseases, or brain diseases
and share information with their bosses. In this way, we
help employees being treated for a medical condition balance treatment and work.
As a result of improving the work environment, the percentage of women among all employees continues to rise,
and the average length of service continues to increase forboth men and women.

▶ Ratio of employees taking childcare leave●育児休業取得率推移●月平均残業時間（法定外）▶
Average monthly overtime
hoursおよび有給休暇取得率の推移(non-statutory) and paid leave taken■■ Male (%) ■■ Female (%)
100

100

●Reducing long overtime hours and creating an environment
where employees can feel free to take paid leave
NSD aims to achieve average overtime hours of 20 or lessand employees taking 75% or more of their paid leave. We
strive to reduce overtime hours and create an environment
where employees can feel free to take paid leave.
We allow employees to take half-day leave and takeleave by the hour. We also provide leave for meritorious
long service. We provide a variety of leave options so thateach employee can take leave flexibly in ways that are convenient for them.
We are striving to reduce overtime hours by strengthening management—that is, by providing training to managers
and increasing the percentage of PMP-certified employees.

■■ Average monthly overtime hours ■■ Paid leave taken (days)
100

100

100

Percentage of paid leave taken (%)
59.9

19.0

17.0

26.2

30.9

70.1

63.3
18.5

11.7

12.4

FY2020

FY2021

13.7

17.3
2.3
FY20189.0
FY2019FY2020

FY2021

FY2022■ Diversity & Inclusion

NSD strives to create and maintain a comfortable working
environment, creating a workplace where diverse human resources can play an active role with job satisfaction, regardless of gender, sexual orientation, age, educational background, race, ethnicity, nationality, ideology, beliefs, or
physical, intellectual, or mental disability.
●Efforts to promote women’s advancementin the workplace
In order to promote the active participation of women in theworkplace, NSD has set a target of increasing the ratio of53

Integrated Report 2023

FY2022■Ratio of women
2019

2020

2021

2022

2023

(March 31)

17.0%

17.6%

18.7%

19.3%

19.6%

Managers(March 31)

3.5%

3.5%

4.7%

5.4%

6.2%

2019

2020

2021

2022

2023

New graduate hires
30.9%(joined April 1)

37.2%

35.7%

32.3%

46.7%

Employees

Business Foundation

Growth Strategies

Business Status

female employees to 23% or more by fiscal 2025 and to
10% or more for women in management positions by fiscal
2030. Our recruitment activities are based on the policy of
ensuring that at least 50% of all new graduates hired eachyear are women. Our aim is to increase the ratio of female
talent, including in management positions as core to theCompany’s human resources, by increasing the ratio of female employees.
As part of our efforts in recruiting new graduates, we provide opportunities for female students to come and speakwith female employees of different age groups and careers
helping to give them an idea of what their career could be likeafter joining the Company. We have also set up a page on our
website introducing some of our female engineers and managers in an effort to provide more information.
● Creating a workplace where diverse humanresources can thrive
Diversity in the workforce and equal opportunity
initiatives
To support a balance between childcare, nursing care,
medical treatment and employment, NSD is enhancing
some of our benefits programs, including the accrual leavesystem and return-to-work interviews, and actively working to foster an internal culture that makes it easy to benefit from such systems with, for example, messages fromsenior management, educational booklets, and seminars
on work-life balance.
D&I training
NSD carries out training on diversity and inclusion in aneffort to create a workplace free from discrimination. Furthermore, we respect the diversity of our employees and■ Supply Chain Management

NSD’s business operations are supported by many business partners. We recognize that further deepening cooperation with these business partners will be vital to ourefforts to achieve a sustainable society. To this end, as wellas engaging in equal and fair business transactions, we are
actively promoting work style reforms together with ourbusiness partners, such as telework and reducing working
hours by streamlining business processes.
●Sustainable procurement
Sustainable Procurement Guidelines
To work with our business partners toward the realization of a sustainable society, we created guidelines, withreference to the Code of Conduct developed by the Responsible Business Alliance, an industry coalition dedicated to corporate social responsibility in global supply
chains, to outline the matters in which we expect ourFoundation of Value Creation to Support Growth

Corporate Data

promote understanding through e-learning programs andeducational booklets on LGBTQ issues.
●Human rights initiatives
NSD supports international norms on human rights stipulated in the UN’s International Bill of Human Rights and theInternational Labour Organization’s ILO Declaration on
Fundamental Principles and Rights at Work. In compliancewith laws and regulations, we respect the basic labor rights
of workers to act collectively, bargain collectively, and theright to organize.
At any time in or outside of the workplace, we will not
engage in any behavior or make any remark that violates human rights, and we will not discriminate on the basis of gender, sexual orientation, age, educational background, race,
ethnicity, nationality, ideology, beliefs, or physical, intellectual,or mental disability.
In addition, we do not tolerate forced labor or child labor
under any circumstances.

business partners to engage. As such, we have requested
that our business partners understand and implement our
Sustainable Procurement Guidelines.
Regular sharing of information withsenior management of business partners
NSD visits its business partners regularly to hold dialogue
with senior management so as to gain their understandingof our approach to sustainable procurement and request
their active involvement in our sustainability activities.
We are also working to inform business partners
about our approach to sustainability through a dedicatedcontact desk.
Supporting sustainability activities of business partners
To promote sustainability initiatives together with our business partners, NSD checks the status of sustainability iniIntegrated Report 2023

54

Social Initiatives

tiatives undertaken by all business partners with whom wecurrently do business, using a checklist created based on
our Sustainability Procurement Guidelines. In order to help
our business partners better understand sustainability, thechecklist also includes a description of specific sustainability initiatives.
The same checklist is used as a reference in selecting
new business partners.
● Initiatives to deepen collaboration withbusiness partners
Fair and equitable business transactions
Whenever we commence business dealings with a new
business partner, the Development Support Department,
which is a department responsible for procurement, reviews the transaction to ensure compliance with laws.
We have also established a whistleblowing hotline thatis accessible to our business partners in an effort to prevent fraud and scandals.
Creating a comfortable work environment for our
diverse workforce
NSD is also working to foster workplaces that are comfortable and offer diverse work styles for our business partners, too, in much the same way as our own employees.
As part of this effort, we have expanded our network
equipment for remote connections to establish a teleworkenvironment accessible also to business partners.
We are working to prevent long working hours by sharing working hour data with the managers of our business
partners and discussing ways to increase the efficiency ofbusiness processes. Each procurement department uses
an IT system to carefully monitor the working hours of dispatched workers in particular to ensure compliance with
Article 36 of the Labor Standards Act.

■ Contributing to Society

Rigorous information security countermeasures withbusiness partners
To maintain good supply chains, having a high degree of
information security awareness is vital so that measures
can be continuously taken.
NSD assesses new business partners based on its Information Security Policy to make sure that they have anappropriate information security management system inplace. If they fail to satisfy our requirements, we may refuse
to do business with them.
Additionally, every year we provide information security
training to our business partners to foster understanding ofand ensure compliance with our Information Security Policy.

●Developing talent in IT for the future
As an initiative to develop talent to lead the way forward in
information technology, NSD supports activities to foster
creativity as well as programming courses for children.

programming, digital crafts, and more, providing children
with the opportunity to take on new challenges and create
new things.
(Organized by the Programming Club Network (PCN))

Sponsor of the All Japan KOSEN Programming Contest
The contest invites technical college students from national, public, and private schools nationwide to submit programs and source codes with the aim of supplying the very
best talent to the IT industry.
(Organized by the Japan Federation of KOSEN Association)

Sponsor of CyberSakura
CyberSakura is an educational program aimed at fostering
future talent in cybersecurity. The program aims to improve
literacy in computers, networks, and security for junior highand high school students nationwide through practice sessions where students can gain practical experience, as
well as competitions where students compete for the highest score.
(Organized by L community)

Sponsor of the PCN Kids Programming Contest
The contest invites elementary and junior high school students from across Japan to participate in games, online

55

Training support for business partners
NSD offers the same IT training programs provided toits new employees to the new employees of its business partners, too, to help enhance their IT skill level.

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Business Foundation

Growth Strategies

Business Status●Contributing to local communities
Regional revitalization initiatives
In addition to our main offices in Tokyo, Osaka, Nagoya,
and Fukuoka, NSD is branching out to regional areas,
opening offices in Sendai and Hiroshima in 2022. With thisexpansion into regional areas, we are responding to theneeds of those choosing to remain in their communities,
creating employment opportunities in local areas, as wellas helping to develop and provide work for IT engineers.
We donate to regional revitalization projects operated
by local governments, and support the promotion of the IT
industry and the development of IT human resources
through industry-academia-government collaboration.
Donations to date are as follows.
● Oct 3, 2022: Sendai City’s promotion project for
growth industries to develop IT human resources● Apr 21, 2023: Hiroshima City’s support project foruniversities developing human resources who contribute to the local society
Initiatives to support disaster-affected areas
In the wake of the Great East Japan Earthquake, in addition to providing network diagnostic services* free ofcharge and gifting money to affected areas, NSD passedon donations from employees to the West Japan Heavy
Rain Disaster Relief Fund, helping to provide disaster relief
and assist with recovery from natural disasters.
* A service that quickly collects and analyzes the communication sta-

Foundation of Value Creation to Support Growth

Corporate Data

Photo courtesy of PCN

switches and routers of companies in disaster-stricken areas, andthen makes proposals for system recovery and business continuity

Social contribution through a shareholder benefit program
NSD offers shareholder benefits that allow shareholders to
select preferential products from a product catalog. With
this shareholder benefit program, we have established thefollowing donation options as a way for our shareholders tocontribute.
● Supporting IT education for the children of the future● Supporting children’s cafeterias● Support for disaster areas● Support for developing countries

tus of network equipment and work devices such as the servers,■ Social Innovation with IT

The rise of new technologies in recent years, such as AI
and IoT, has led to the use of big data and business digitalization. Information technology, therefore, not only
helps to improve operational efficiency but also plays arole in creating new businesses. Against this backdrop,
NSD makes full use of new technologies in developing

systems for customers, helping to solve through digital transformation (DX), the many different problems customers face.
Through the development and provision of solutions
and products, NSD is working to solve many of the issues
common to its customers.
NSD Group’s Advanced Technology Initiatives

P.29

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56

Outside Directors’ Round-Table Discussion

Aiming to enhance corporate governanceand achieve sustainable growth

Toru Takeuchi

Kumiko Jinnouchi

Atsuhiro Kawamata

Outside Director

Outside Director

Outside Director

At NSD, we have appointed three independent outside directors who possess a wealth of experience and deep
expertise in corporate management, legal affairs, accounting, and other specialized fields. These outside directors
actively provide suggestions and proposals on management issues. As key members of the Governance Committee, an advisory body to the Board of Directors, they shared their evaluation of the effectiveness of our Board, as
well as their views on themes going forward and the role of outside directors.

■ Impressions of NSD
Kawamata Before my appointment in June 2020, I
lacked knowledge about the IT industry and NSD, andhad a preconception of IT companies being rather dry.
However, in reality, I found NSD to be a conventional
Japanese company in the best sense of the word—everyone is very earnest, and management greatly values
its employees. On the other hand, at a time when many
companies were scrambling to respond to the pandemic, I was also impressed by NSD’s quick decision-making in establishing a policy for vaccinations early on. All
meetings, including those of the Board of Directors, were
held online. However, when I asked questions about
pre-meeting materials, including inquiries about industry
terms and accounting standards, I received replies by57

Integrated Report 2023

the next day, which facilitated a smooth understanding
even in an online environment. In the post-pandemic period, I am now able to directly hear from internal directors
and executive officers in face-to-face meetings, further
deepening my understanding of the Group.

Jinnouchi I was appointed in June 2019, but even
before my tenure, NSD had a system in place for outside
directors to participate in meetings of the Management
Meeting and the Executive Meeting, and to conduct preliminary deliberations ahead of the Board of Directors
meetings. I remember feeling what a wonderful company
this was, where the issues under consideration arebrought forth as agenda items with a clear structure atBusiness Foundation

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Business Status

the next Board of Directors meeting, enabling even more
fruitful discussion to take place.
In fiscal 2022, resolutions were passed at the Boardof Directors meetings regarding the M&A of three domestic companies (Trigger Inc., ART Holdings Co., Ltd,and NHOSA Corporation). Both Director Kawamata and
Director Takeuchi have expertise in corporate management, and I was greatly impressed at how the practical
discussions on non-superficial acquisition schemes related to M&A were conducted with great intensity amonginternal and outside directors, resulting in a speedy resolution.

Takeuchi When I was approached about serving
as an outside director, what I checked first was the Company’s sales revenue situation, and then the staff composition and the years of service of the employees. At
the time, NSD had over 3,000 employees and was
growing with the goal of reaching 100 billion yen in net
sales. I also found that it had many employees with longer years of service compared with IT industry peers. I
had the strong impression that this was a company thatvalued its people and was poised for even greater growthin the future. Furthermore, in a landscape where many
companies view the role of outside directors as a mere
formal requirement, the requests I received to attend not
only the Board of Directors meetings but also meetingsof the Management Meeting and the Executive Meeting,where practical discussions take place, really resonatedwith me and led to my acceptance of the position ofoutside director.
What left the most significant impression on me also
at the Board of Directors meetings were the resolutions
regarding the M&A projects. In my former position, I had
extensive experience with M&A and faced various challenges, so I have my own set of checkpoints to avoid

Foundation of Value Creation to Support Growth

Corporate Data

failure. I asked detailed questions about whether theevaluation of the business was entirely outsourced toconsulting firms, about the purpose of the acquisition,
and about how the business would be managed
post-acquisition. The executive officer in charge responded with sincerity, allowing me to make an informed
decision having fully understood the situation.

Kawamata As you have both mentioned, the fiscal
2022 agenda for the Board of Directors involved major
management decisions, including three acquisition projects and the dissolution of a capital and business alliance contract with Pro-Ship Incorporated. In my former
position, I was involved with post-acquisition management and post-merger integration (PMI) over a long period of time, and governance is an area that requires
particular attention. In recent years, it is not uncommon
for corporate scandals to arise not within the parent
company itself, but rather within its group companies. If
something occurs within an acquired company, from thedate of acquisition, it becomes the responsibility of theparent company. The excuse that the company has only
just joined the group is not a valid reason. If the acquiredcompany’s business type is different, standardizing all
aspects of governance to match that of the parent company can be challenging. However, by implementing
consistent group governance measures, such as having
a centralized whistleblowing hotline across the groupand managing data through system integration, it is possible to confidently engage in group management with asense of security. For this reason, I advised the management team during the Board of Directors meetings to
prepare for Group management with ample margin whenan acquisition takes place, and work has now commenced on this initiative.

■ Talent Development for the Next Generation
Jinnouchi I believe that the remarkable development of our Group thus far can be attributed to the business acumen of the current management team, including
President Imajo. The next challenge will be how to develop successors who will inherit the DNA of the current
management team, and it is essential to establish aproper course of action for this. Our Governance Committee is composed of President Imajo, who is the chairperson, and us three outside directors, which allows us
to exchange opinions candidly on a wide range of management themes. The president’s diligence in his consideration of the Company’s future comes across veryclearly, and it is precisely for this reason that we sometimes pose tough questions to him, making for a very

tense atmosphere in the meetings. I hope to contributeto the development of a management succession plan
while making use of this forum.

Takeuchi During the pandemic, the president andthe internal directors primarily handled the Q&A sessions
through remote meetings. Going forward, however, I
would like to increase interactions with executive officers
and senior employees in face-to-face meetings to understand who the potential leaders of the next generation might be. Generally speaking, if a superior is too
capable, their subordinates tend to become dependent
on instructions and precedents, which can decrease
their inclination to problem-solve independently. This canIntegrated Report 2023

58

Outside Directors’ Round-Table Discussion

with long years of service who support the management,
and this is true not only in Japan but also in Westerncountries. From this perspective, I feel that if we canproperly convey the current management team’s business philosophy and NSD’s raison d’être, i.e., purpose,to the next generation, the Company will continue to become even better.

ultimately pose issues for the company’s continued
growth and sustainability. To mitigate against such negative aspects, I believe it’s important to pass on forms oftacit knowledge to the next generation, such as the current management team’s thoughts on the business andtheir judgment criteria, in the form of explicit knowledge
such as written documents or videos. With the increasein the size of the Company and the number of employees through M&A, I feel it is essential to create a framework that allows us to maintain our unique characteristics while also enabling the expression of individuality
and growth.
In recent years, the mobility of talent has increased,
and the appointment of employees with specialized
knowledge has become an indispensable element for corporate growth. On the other hand, when considering sustainable growth, it is also crucial to have employees who
not only possess specialized knowledge but also have a
deep understanding of the company’s essence, including
its social significance and long-term growth prospects.
Even in Western blue-chip companies, where the mobilityof talent is more fluid than in Japan, the core talent that
supports the company outside of specialized professions
are those who love the company and work there for a long
period of time. The same is true for management. During
periods of transformation, there may be a demand for
professional managers. However, in companies that areexperiencing stable growth, it is often the core members■ The Role of the Outside Directors
Jinnouchi After four years of experience as an outside director, I have come to realize that there is an inherent
disparity in the amount of information between management and outside directors, and realistically speaking, it
is challenging for us to surpass management in making
executive decisions. Why then, one might ask, are outside directors deemed necessary? It is because they canmake objective judgments from an external perspectivethat is not present within the organization, as well as promote various viewpoints based on societal trends,

59

Integrated Report 2023

Kawamata From the perspective of talent, diversity
is also an important management theme. Regrettably, it
seems undeniable that the IT industry as a whole stilltends to be a male-dominated one. As part of our efforts
to ensure diversity, we have set targets for the proportionof female staff in management positions and alike, andwe are also enhancing our education and training programs related to career development for women andmid-career hires. Regarding diversity in management,enhancing the ratio of female directors is being considered within the Corporate Governance Code. It is a factthat Japanese companies often require a degree of external impetus to initiate change, but ultimately, I believe
it comes down to the resolute determination and abilityof management to implement “change” that makes thedifference.
Taking diversity from a different perspective, whenlooking at the global market, companies that create innovation have a number of outstanding geniuses among
their staff. Those who are not constrained by conventional wisdom have changed the world. From that perspective, I believe that if a company can cultivate aculture that allows talented employees to develop theirabilities without being confined to existing frameworks,
further growth can be expected. We have already established an Advanced Technology Strategic Business Unit,
and we are advancing new initiatives for new technologies and DX by expanding incentive systems for those
who hold qualifications in AI and cloud-related fields, forexample. I am looking forward to steadily nurturing these
initiatives and incubating new businesses.

Business Foundation

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Business Status

including SDGs and the empowerment of women. I believe that outside directors can ensure objectivity andprovide insights for risk avoidance, mitigating the dangerof biased management decisions being made due to unconscious biases and noise that may affect those whohave been with the same organization for many years. In
that sense, I believe that outside directors also hold value as a part of the diversity within corporations.
IT firms are facing significant changes in the industry
environment, and it is not easy to envisage the future outlook of NSD in five to ten years’ time. I make use of theanalytical skills I have honed as an attorney-at-law to detectand present any discrepancies between the Company’s
performance forecasts, management plans, and future vision with the actual state of affairs, in the hope of bringing
these to the attention of the management team.

Takeuchi Indeed. As a company grows, there
tends to be a homogenization of thought with the president at the apex, and diversity can be lost. At suchtimes, I believe that the value of outside directors lies inoffering suggestions based on experience of different
corporate cultures from outside the company. To makesuggestions, it is necessary to have a good understanding of the company’s internal affairs, but there have beentimes when I have had unnecessary concerns due to alack of understanding.
For example, at NSD, the shortage of engineers wasa serious issue against the backdrop of our expanding
system development business. I was quite concerned
about securing personnel due to the increasing burden
on existing employees, but the Company had alreadyconsidered various measures, and recently was able toincrease the workforce by approximately 400 engineers
by acquiring ART Group through M&A. I would like toensure that we strengthen our back office to accommodate the increased number of employees moving forward. As I mentioned earlier, now that the pandemic has
subsided and we are finally able to interact with on-site
operations, I want to accurately understand the gap between our current state and our ideal state in order toprovide more precise advice.
Also, as I have not been in the outside director rolefor very long, I feel that I am able to view NSD more objectively. Hopefully, I can provide advice on aspects that
may be difficult to notice from within the Company itself.
Kawamata Company management must be conducted from the perspective of stakeholders that encompass
our entire society. In doing so, the external viewpoints provided by outside directors are essential. Additionally, it
could be said that the role of an outside director is akin tobeing a bridge between the common sense of those within and outside the company, especially given that discrep-

Foundation of Value Creation to Support Growth

Corporate Dataancies in this regard can lead to a higher risk of misconduct. As I mentioned earlier, I hope to be able to provide
advice in my dual role of acting as both a brake and an
accelerator, utilizing my experience in PMI and group governance, including overseas acquisitions.
As I stated at the beginning, NSD’s strengths lie in its
culture of earnestness and sincerity in dealing with every
matter. Corporate culture is, in essence, all about thepeople. It is my hope that, while preserving an earnest
corporate culture, we will remain a youthful company
that expands the potential of each and every employee
and produces outstanding talent.

Takeuchi In my former position, I not only served
as an executive in accounting and finance but also managed the operations of an overseas headquarters.
During that time, I focused on devising various strategies
tailored to each region to engage a diverse workforce, as
well as on establishing management metrics to serve as
specific goals. For NSD to achieve further growth, I
would also like to see the setting of indicators to motivate people, in addition to accounting KPIs. I believe thatyounger employees in recent years are getting job satisfaction not only from remuneration but also from contributing to society through their work. Personally, I would
be grateful if I am able to serve as a close confidant to
NSD’s management and leadership, as well as utilize myown experience.
Jinnouchi I also believe that NSD’s strengths lie in
its people, and that a management team that values its
employees leads to a business that gains the trust of its
customers. Recently, there has been much discussion
about how the evolution of IT, such as generative AI, willchange daily life. This includes not only the positive aspects of such changes, but worrisome elements as well.
I believe that the societal role of IT companies is to support the transformation of society in a direction thatmakes people happy, and to do so by solving social issues with IT. For that reason also, it is my wish that NSD
will continue to grow as a warm and caring company
that values its people.

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60

Governance Initiatives

G

Governance Initiatives
NSD Group recognizes that both corporate governance and compliance are critical components of company management.
We will continue to strive to maintain and strengthen relevant systems to further solidify the foundation for NSD’s existence.
As an IT company, NSD is focused on enhancing data privacy and security as well as improving quality management.

■ Corporate Governance

NSD’s basic approach to corporate governance is to earn
the trust of our shareholders and investors by applying theprinciples and provisions of our Management Philosophy
and Basic Management Policy towards accelerating decision-making, clarifying management responsibilities, enhancing and strengthening our compliance structure, andengaging in timely and appropriate information disclosure.
We believe that a firm corporate governance structure is thefoundation that will enable us to secure appropriate profitsand make sustainable increases to our corporate value.
●Corporate governance structure
NSD has adopted an Audit & Supervisory Board structure.
In addition to the General Meeting of Shareholders and directors, our corporate bodies include the Board of Directors,
the Audit & Supervisory Board, Audit & Supervisory Board
members, and accounting auditors. We have also established various committees, including the Governance Committee as an advisory body to the Board of Directors, theManagement Meeting and the Executive Meeting as deliberation bodies for the President & CEO, and the Sustainability
Management Committee and the Risk Management Committee subordinate to the Board of Directors. To accelerate
decision-making by the Board of Directors and strengthen
auditory functions, we also have adopted an executive officer system to promote dynamic business execution.
This system is practical for our Group since our Group business domains do not branch into various sectors and because
this system will enable us to build an effective and efficient governance structure that is ideal for our business scope. In addition to Audit & Supervisory Board member functions, we havealso appointed multiple outside directors to strengthen andenhance management monitoring functions.
Board of Directors
The Board of Directors is comprised of seven directors, of61

Integrated Report 2023

which three are outside directors. The Board of Directors
convenes, as a general rule, at least once per month todecide on important matters related to management andbusiness execution, as well as to monitor the status of execution of duties by each director. Board of Directors
meetings are attended by three Audit & Supervisory Board
members, who confirm the legality of decision-making andexecution of duties by directors.
Audit & Supervisory Board and Audit & Supervisory Board
members
The Audit & Supervisory Board is comprised of one fulltime Audit & Supervisory Board member and two outside
Audit & Supervisory Board members. The Audit & Supervisory Board members audit the status of the execution ofduties by directors and the design and operation of theinternal controls system by attending Board of Directors
meetings and other important meetings as well as by examining the status of business and assets. The Audit &Supervisory Board holds regular meetings to determine
audit policy and the division of duties for Audit & Supervisory Board members, and to discuss the audit results ofeach Audit & Supervisory Board member.
Governance Committee
We have established a Governance Committee as an advisory
body to the Board of Directors to ensure fairness, transparency,
and objectivity in decision-making conducted by the Board of
Directors. The Governance Committee is chaired by the President & CEO, and is comprised of a total of four members: thePresident & CEO and three outside directors. The Committee
provides advice and recommendations to the Board of Directors based on deliberations of various matters, including thenomination and removal of directors and Audit & Supervisory
Board members and remuneration systems for directors, anddecides on matters delegated by the Board of Directors.

Business Foundation

Growth Strategies

Foundation of Value Creation to Support GrowthBusiness Status

Corporate Data

▶Corporate governance structure map
General Meeting of Shareholders

Management/Supervision

Elect/Dismiss

Board of Directors

Audit & Supervisory
Board

Elect/Dismiss

Accounting Auditor

Audit

Audit

Governance Committee

President & CEO
Business Execution

Elect/Dismiss

Sustainability Management Committee

Risk Management Committee

Management Meeting

Compliance Committee

Executive Meeting

Information Security Committee
Internal Auditing Department
Audit

Executive Officers
Each Section of NSD

Subsidiaries▶Structures of each organization (as of October 1, 2023)
Name

Position

Board ofDirectors

Audit &
Supervisory Board

GovernanceCommittee

Management
Meeting

Executive
Meeting◎◎◎

Yoshikazu Imajo

President & CEO◎

Hideshi Maekawa

〇

〇

〇

〇

〇

〇

Hidetaka Kikawada

Director, Senior Managing
Executive Officer
Director, Senior Managing
Executive Officer
Director, Managing
Executive Officer

〇

〇

〇

Atsuhiro Kawamata

Outside Director

〇

〇

〇

〇

Kumiko Jinnouchi

Outside Director

〇

〇

〇

〇

Toru Takeuchi

Outside Director

〇

〇

〇

〇

Kiyoshi Kondo

〇

◎

〇

〇

〇

〇

Chieko Nishiura

Full-Time Audit &Supervisory Board Member
Outside Audit &Supervisory Board Member
Outside Audit &Supervisory Board Member〇〇

Satoshi Kiyota

Managing Executive Officer〇

Atsuji Kobayashi

Managing Executive Officer〇

Akio ShinnoManaging Executive Officer〇

Tatsuo Kawauchi

Executive Officer〇

Masataka Komatsu

Executive Officer〇

Osamu Yamoto

Kunio Kawa

◎ Chair, 〇 Member
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Governance Initiatives

Management Meeting and Executive Meeting
We have established a Management Meeting and an Executive Meeting as deliberation bodies for the President & CEO.
The Management Meeting is chaired by the President &CEO, and is comprised of a total of eight members: sevendirectors (including three outside directors), and a full-time
Audit & Supervisory Board member. The Management
Meeting convenes at least once per month to deliberate
and report on important matters related to management,
including management plans and management strategy.
The Executive Meeting is chaired by the President &CEO, and is comprised of a total of 13 members: sevendirectors (including three outside directors), a full-time Audit& Supervisory Board member, and five executive officers.
The Executive Meeting is convened at least once per monthto deliberate and report on important matters related tobusiness execution, including budget creation and the status of implementation.
Various committees
We have established a Sustainability Management Committee and a Risk Management Committee that are subordinate to the Board of Directors, as well as a Compliance
Committee and an Information Security Committee that are
subordinate to the Risk Management Committee.
Sustainability Management Committee
The purpose of the Sustainability Management Committee is to tackle SDGs/ESG initiatives across the organizations. The Committee is chaired by the President &CEO, and is comprised of related officers and department managers.
Risk Management Committee
The purpose of the Risk Management Committee is toconduct Group risk management. The Committee ischaired by the President & CEO, and is comprised ofrelated officers, including the officer in charge of internal
controls, as well as department managers.
Compliance Committee
The purpose of the Compliance Committee is to respondto compliance violations and draft prevention measures.
The Committee is chaired by the President & CEO, and iscomprised of related officers and department managers.
Information Security Committee
The purpose of the Information Security Committee is tooutline Group security measures and information security policy. The Committee is chaired by Head of Corporate Service Division, and is comprised of related officers
and department managers.

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Integrated Report 2023

● Activities of the Board of Directors andthe Governance Committee
Activities of the Board of Directors
In fiscal 2022, the Board of Directors held 15 meetings andadopted resolutions or reported on the following matters:
Matters resolved
The Board of Directors passed resolutions on the Company’s management strategy, including the annual budget, the review of the Medium-Term Management Plan,
organizational changes, business alliances and M&As. It
also adopted resolutions on financial strategies, including a financial plan and shareholder return measures
such as dividends and share buybacks, and on officer
personnel matters, including the selection of candidates
for directors and Audit & Supervisory Board members
and the appointment of executive officers.
Matters reported
The Board of Directors monitored matters including thestatus of budget execution, employment and retirement
status, sustainability activities and health and productivity management initiatives, and directed necessary actions accordingly
Activities of the Governance Committee
In fiscal 2022, the Governance Committee held five meetings to select candidates for directors and Audit & Supervisory Board members and presented them to the Board of
Directors. The Committee also verified the appropriatenessof the amount of bonuses for each individual officer as proposed by executive directors and presented to the Boardof Directors the total amount of payment.
●Officer remuneration
Policy and details of director remuneration
The remuneration of NSD’s directors is calculated based on
the roles and responsibilities of each position, while alsoemphasizing links with performance in order to strengthen
the incentive for enhancing the Company’s performance.
Therefore, director remuneration consists of base remuneration as fixed remuneration, bonus as short-term incentive-based remuneration, and stock remuneration as
medium- to long-term incentive-based remuneration. The
ratio of incentive-based remuneration to the total remuneration of each individual director is at least 40%.
However, outside directors, who occupy a position of
independence from business execution and who are responsible for the supervision of management, only receive
base remuneration, which is fixed remuneration, because
performance-linked remuneration is not suited to their role.

Business Foundation

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Business Status

Base remuneration
Base remuneration is paid monthly as fixed remuneration
for the performance of duties. It is paid according to thebase remuneration table following the roles and responsibilities of each position.
Bonus
Bonuses are paid annually as short-term incentive-based
remuneration for achieving the business plan for eachfiscal year. They are calculated by reflecting the performance and qualitative evaluation results in the standard
bonus amount prescribed by position following the bonus calculation standards. Performance evaluations use
net sales, operating income, ordinary income and net
income (consolidated basis) as financial indicators forappropriately reflecting performance in each year underevaluation. The ratio calculated based on the rate ofachievement of these targets is used as an evaluation
indicator. Qualitative evaluations consider the directors’roles, implementation of responsibilities, and their activities for the year under evaluation that cannot be assessed using financial indicators.
Stock remuneration
Stock remuneration provides an incentive for continuously enhancing the Company’s corporate value andpromotes shared value between directors and shareholders. It comprises restricted shares issued annually
as medium- to long-term incentive-based remuneration.
Procedures for approving director remuneration
The details and procedures for approving director remuner-

Foundation of Value Creation to Support Growth

Corporate Data

ation are stipulated in the Policy on Remuneration for Directors and Executive Officers. This policy is determined by
the Board of Directors based upon deliberations held atmeetings of the Governance Committee.
The Governance Committee, entrusted by the Board of
Directors, approves the basic remuneration table, bonus
calculation standards and standard bonus amount, andstock remuneration threshold amount based on this policy.
With regard to bonuses, executive directors conduct
performance and qualitative evaluations of those eligible forpayment through consultation, and formulate a plan for theamount of bonuses for each individual. The GovernanceCommittee verifies the appropriateness of the individual
payment amounts, and then the total payment amount is tobe resolved at a meeting of the Board of Directors.
●Internal controls system
NSD has established and operates an internal controls system in compliance with the Basic Policy on Establishmentof Internal Controls System established under the provisions of the Companies Act and the Regulations for Enforcement of the Companies Act. We report the status of
the system and its implementation to the Board of Directors every fiscal year as part of our assessment of the internal controls system as a whole, and when required, we
make improvements to the system.
Additionally, we have established the GovernanceCommittee as an advisory body to the Board of Directors.
This committee ensures fairness, transparency and objectivity in decisions made by the Board of Directors andworks to strengthen NSD’s corporate governance.

▶Total remuneration for each officer category (FY2022)
Total amount for each type of remuneration (thousands of yen)
Category

Directors (Outside directors)

Payment amount(thousands of yen)
196,320(25,200)

Audit & Supervisory Board
members (Outside Audit &Supervisory Board members)

28,800(13,200)

Total

225,120

Fixed remuneration

Performance-linked
remuneration

Non-monetary
remuneration

Number ofrecipients7(3)

122,700(25,200)

57,000(—)

16,620(—)

28,800(13,200)

—

—

4
(3)

151,500

57,00016,62011*1. Director remuneration does not include salary paid to directors who serve concurrently as employees.
*2. Fixed remuneration is the amount of base remuneration paid during the fiscal year ended March 31, 2023, performance-linked remuneration is the amountof bonus with the fiscal year as an eligible period, and non-monetary remuneration is the amount of stock remuneration incurred as an expense during the
fiscal year.

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64

Governance Initiatives■ Compliance
NSD recognizes that compliance forms an important foundation of its corporate activities. Accordingly, we have established the NSD Group Code of Conduct and the NSD
Group Behavioral Guidelines, and have developed a compliance structure. In addition, through training and othermeans, we strive to increase awareness of complianceamong officers and employees and to carefully abide bylaws and regulations.
●Compliance structure
NSD has established the Compliance Committee under the
Risk Management Committee, which carries out company-wide cross-functional risk management.
The Compliance Committee is chaired by the President &CEO and consists of members, including related officers anddepartment managers. It strives to ensure employee compliance with laws and regulations through response to compliance violations and the formulation of preventive measures.
Following the changing operating environment andincreasingly diverse and complex nature of business activities, it is becoming even more important to foster
awareness of legal compliance among employees and increase their compliance literacy. Toward this end, we are
actively working to enhance our training and awarenessprogram on compliance.
●Compliance training
NSD considers compliance training to be a mandatory component of training on its Risk Management Rules. Every year,
we provide comprehensive training to officers and employees and also offer separate training sessions as needed.
The training curriculum is expansive and covers a hostof subjects from laws and regulations to labor management
and harassment.

●Compliance and workplace harassment hotlines
From the standpoint of ensuring the effectiveness of ourcompliance structure and in an effort to prevent complianceviolations and harassment in the workplace, NSD has established a compliance hotline and harassment hotline allowing
all individuals involved in the NSD Group’s operations, including officers, employees and business partners, to submit a report or share a concern without fear of reprisal.
Each hotline has both internal and external (law office)contact points, providing an environment where reports or
consultations can be made without hesitation.
●Ensuring fair trade and preventing corruption
Ensuring fair trade
The NSD Group Code of Conduct and the NSD Group Behavioral Guidelines both require that our actions abide bycorrect corporate ethics and comply with relevant laws andregulations, including Japan’s Unfair Competition Prevention Act and Anti-Monopoly Act.
Prior to commencing business dealings with a new customer or business partner, we review the transaction to ensurecompliance with various laws and ordinances, such as Japan’s Subcontractor Act and Temporary Staffing Services Act.
Actions to prevent corruption
We engage in fair business activities following social norms
and comply with anti-corruption laws and regulations, including Japan’s Unfair Competition Prevention Act.
We have established an Anti-Bribery and Corruption Policy to prohibit business entertainment and gift giving, alongwith the provision of improper money, goods, benefits, orother economic benefits to public officials and those in similar positions. Through compliance training, we ensure thatappropriate action is taken in all relevant situations.

■ Data Privacy & Security
As an IT company responding to the era of digital transformation, NSD is working on data privacy and security as
one of our most important challenges in order to earn thetrust of customers and society.
Recognizing information security incidents such asleaks and unlawful disclosure of information as major risks
for corporate management, we strive to safely and securely handle information assets (maintain confidentiality, integrity, and availability), including personal information, as a

65

Integrated Report 2023

company that handles important information for customers
and employees.

Business Foundation

Growth Strategies

Business Status●Basic Policy on Information Security
To maintain the confidentiality, integrity, and availability of
all information assets, and thereby earning the trust ofcustomers and society, NSD has established its Basic
Policy on Information Security in an effort to ensure thesecurity of information.
Moreover, specific measures are stipulated in the Information Security Standards and the Information Security
Procedures as sub-provisions of the Basic Policy on Information Security to ensure that measures are effective.
Basic Policy on Information Security
1.We will establish and comply with an information security policy in order to protect information assets
from threats of disaster, damage, negligence, andwillful intent.
2.We will make our employees aware of the importance of information security and ensure that they
are fully aware of our policy so that they can handle
information assets appropriately.
3.We will comply with laws and regulations regarding
information security and the protection of personal
information.
4.We will inspect and audit our compliance with theinformation security policy in an effort to operate it
appropriately.
5.We will continuously ensure the effectiveness of our
information security policy in response to social andtechnological changes.
●Information security management system
NSD has established the Information Security Committee
under the Risk Management Committee to strengthen information security. The committee regularly assesses information security risks facing the company as a whole, puts

Foundation of Value Creation to Support Growth

Corporate Data

in place preventive measures, and reports on the status ofcompliance with rules.
Moreover, we are taking physical measures by developing systems such as equipment and functions to preventthe risk of information leaks, malware and other virus infections, as well as unauthorized access to the Internet ande-mails.
●Employee training on information security
Every year, NSD carries out training for employees on the
Company’s rules and risks. Furthermore, we regard problems related to information security that occur on a daily
basis outside NSD as issues of our own. As such, we verify
whether there are any similar problems within the Company, and make them known to all employees. When laws
and regulations such as the Act on the Protection of Personal Information are revised, we provide education to employees to ensure thorough compliance with such laws andregulations.
●Cyber attack countermeasures
In addition to information leaks and cyberattacks by hackers, the risks of organized terrorist cyberattacks from othercountries, such as ransomware demanding money and the
shutting down of vital infrastructure, have recently come tothe fore.
In light of these heightened security risks, NSD outsources vulnerability assessments of internal and external
systems to a third-party in order to prevent unauthorizedaccess and malware infection. Furthermore, we are working to strengthen security by providing targeted attack
countermeasures, firewalls, web content filtering, and an
intrusion prevention system (IPS).
As targeted email attacks are evolving and becoming
even more sophisticated, we will strengthen our defenses
and provide training and education to eliminate humanvulnerabilities.

■ Quality Management
To provide quality that satisfies our customers, NSD aims
to improve quality and productivity by way of continuous
implementation of the PDCA cycle through three initiatives:
quality management based on quality guidelines, process
improvements through the rollout of a standard process,and training for improving our technical skills.
We have established the Quality Support Department
as a specialized unit in charge of quality management, andthe Technology & Process Support Department as a specialized unit in charge of process improvements and technical skills training.

●Quality management based on quality guidelines
Based on quality guidelines, NSD evaluates and improves
quality in every phase and process, from project estimates
to delivery. For projects over a certain size, members of the
Quality Support Department are given exclusive responsibility, and together with the departments in charge of development, work on quality assurance activities.

Integrated Report 2023

66

Governance Initiatives● Process improvement through the rollout of astandard process
As part of our efforts for process improvement, we haveestablished an NSD standard process, which is being rolled
out across the Company.
By using the NSD standard process, we are working tostandardize the work procedures and templates used at

the development site.
Furthermore, NSD has adopted Capability Maturity
Model Integration (CMMI)* as an improvement model andcreated an NSD standard process by imparting our experience and achievements in CMMI theory.
*CMMI is a framework developed at Carnegie Mellon University’s Software
Engineering Institute to improve software development processes.

▶Project flow for quality evaluation and improvement

Quality Support Department

1/4 complete

Create quality
views report

3/4 complete

Create quality
views report

Joint review

Joint review

Decisionon
工程着手
process
判定
start-up
・Collection andevaluation of quality
performance data
・Quality improvement
support

1/2 complete

工程途中のSelf-inspection
duringprocess
自己点検

Create quality
evaluation
report●Achieving QCD+CE
At NSD, we define the successful elements of a project interms of achieving the five elements QCD+CE, and we proceed with a project with these elements in mind.
We define the three basic elements of project successas: Quality, ensuring the quality demanded by the customer; Cost, achieving the target productivity; and Delivery,
meeting not only the delivery date to the customer but also
the completion of each process. We have also defined two
additional elements of project success as an organization:
Customer satisfaction; and Employee satisfaction, or upskilling of project members. At NSD, our aim is to ensure
we achieve all these five elements in every project.

Completion

Complete

Create projectcompletion report

Make checks using quality
evaluation report (final version)

Joint review

On start-up

Make checks using
milestone checklist

Createproject plan

Design through to testing (implemented for each process)

Make checks using process
start-up check sheet

Development departments

Project launch

Create performancedata report

SubmitDecision on
processtransition

Create quality
evaluation
reportEmployee
Satisfaction

Customer
Satisfaction

Project
Success

Cost

Quality

67

Integrated Report 2023

Delivery

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

■ Management System (As of October 1, 2023)●Directors

Yoshikazu Imajo(Born October 13, 1961)

President & CEO
Attendance record in FY2022:
Board of Directors mtgs: 14/15
Governance Committee
mtgs: 5/5
Term of office: 17 years

Hideshi Maekawa(Born February 16, 1962)

Director,
Senior Managing
Executive Officer
Attendance record in FY2022:
Board of Directors mtgs: 15/15
Term of office: 17 years

Osamu Yamoto(Born February 20, 1963)

Apr. 1984
Apr. 2005
Jun. 2006
Jun. 2007
Apr. 2008
Apr. 2009
Apr. 2011

Joined NSD Co., Ltd. (NSD)
Executive Officer Chief General Manager, Systems Division 1
Director & Executive Officer Deputy Operating Officer
Managing Director & Executive Officer Deputy Operating Officer
Senior Managing Director, COO
President & CEO, COO
President & CEO (present position)

Apr. 1982
Apr. 2006
Jun. 2006
Apr. 2013

Joined NSD
Executive Officer Head of Corporate Staffs Division
Director & Executive Officer Head of Corporate Staffs Division
Director & Senior Executive Officer Head of Public & Telecommunication
Business Division Senior General Manager, IT Services Business Division
Managing Director Head of IT Services Business Division
Senior Managing Director Head of Industrial Business Division
Director, Senior Managing Executive Officer
Director,
Senior Managing Executive Officer Head of Corporate Administration Division
Director, Senior Managing Executive Officer Head of Corporate Service
Division Head of Corporate Planning Division (present position)

Apr. 2014
Apr. 2016
Jun. 2017
Apr. 2018
Jun. 2020

Apr. 1987
Sep. 2007
Apr. 2014

Director,
Senior Managing
Executive Officer

Jun. 2014

Attendance record in FY2022:
Board of Directors mtgs: 15/15
Term of office: 9 years

Jun. 2017

Jun. 2016

Apr. 2018

Hidetaka Kikawada(Born May 18, 1973)

Apr. 1998
Jul. 2015
Apr. 2017

Director,
Managing Executive Officer

Apr. 2018

Attendance record in FY2022:

Apr. 2019

Board of Directors mtgs: 11/11
Term of office: 1 year

Oct. 2021
Jun. 2022

Atsuhiro Kawamata(Born August 14, 1961)

Director
Attendance record in FY2022:
Board of Directors mtgs: 14/15
Governance Committee
mtgs: 5/5
Term of office: 3 years
Outside Director

Apr. 1984
Nov. 2005
Jul. 2008
Jan. 2015
Jan. 2019
Jan. 2020
Jun. 2020

Joined NSD
Executive Officer Chief General Manager, Systems Division 5
Senior Executive Officer
Head of Public & Telecommunication Business Division
Director & Senior Executive Officer
Head of Public & Telecommunication Business Division
Managing Director Head of Public & Telecommunication Business Division
Senior General Manager, Business Sales Division
Director, Managing Executive Officer
Head of Public & Telecommunication Business Division
Senior General Manager, Business Sales Division
Director, Senior Managing Executive Officer COO (present position)

Joined NSD
Chairman & CEO, Chengdu Renbenxindong Technology Ltd.
Executive Officer
Chief General Manager, Public & Telecommunication Business Division 1
Executive Officer
Chief General Manager, Advanced Technology Promotion Division
President & CEO, NSD Advanced Technology Research Institute Co., Ltd.
(present position)
Managing Executive Officer
Head of Advanced Technology Strategic Business Unit
Director & Managing Executive Officer
Head of Advanced Technology Strategic Business Unit (present position)

Joined Japan Tobacco Inc. (JT)
Director, Business Planning Department, Food Business Division
Senior Vice President, Head of China Division,
Tobacco Business Headquarters
President & CEO, TableMark Holdings Co., Ltd. (Retired in December 2018)
President & CEO, TableMark Co., Ltd. (Retired in December 2018)
Senior Vice President, Head of Food Business,
Food Business Planning Division, JT
Advisor, JT (present position)
Outside Director, NSD (present position)

Independent Officer* Term of office represents the period as of June 2023.

Integrated Report 2023

68

Governance Initiatives●Directors and Audit & Supervisory Board Members
Kumiko Jinnouchi(Born February 16, 1967)

Director
Attendance record in FY2022:
Board of Directors mtgs: 15/15
Governance Committee
mtgs: 5/5
Term of office: 4 years
Outside Director(Born January 1, 1959)

Director
Attendance record in FY2022:
Board of Directors mtgs: 15/15
Governance Committee
mtgs: 5/5
Term of office: 2 years(Born September 19, 1954)

Full-Time Audit & Supervisory
Board Member
Attendance record in FY2022:
Board of Directors mtgs: 15/15
Audit & Supervisory
Board mtgs: 15/15
Term of office: 7 years

Kunio Kawa
(Born July 16, 1955)

Audit & Supervisory
Board Member

Jun. 2018
Jun. 2021

Apr. 1977
Apr. 2006
Jun. 2008
Apr. 2011
Apr. 2013
Apr. 2015
Jun. 2016

Nov. 1990
Jun. 2009

Attendance record in FY2022:
Board of Directors mtgs: 11/11
Audit & Supervisory
Board mtgs: 11/11
Term of office: 1 year

Joined Nitto Denko Corporation
General Manager of Accounting & Finance Department
Vice President, General Manager of Corporate Accounting Division
Director, Vice President, General Manager of Corporate Accounting Division
Director, Senior Vice President, General Manager of Corporate Sector
Director,
Executive Vice President, General Manager of Corporate Strategy Sector
Director, Senior Executive Vice President (Retired in June 2020)
Outside Director, NSD (present position)

Chieko NishiuraDec. 2006

Joined Toyo Trust and Banking Company, Limited(now Mitsubishi UFJ Trust and Banking Corporation)
Joined NSD Executive Officer
General Manager, Public Relations Department
Director
Director & Executive Officer
General Manager, Office of President
Director & Senior Executive Officer
General Manager, Office of PresidentManaging Director
Full-Time Audit & Supervisory Board Member (present position)

Joined Mitsubishi Gas Chemical Company, Inc. (MGC)
Executive Officer
General Manager, Corporate Planning Division
Director, Managing Executive Officer
Director, Senior Managing Executive Officer
Representative Director, Senior Managing Executive Officer
Director
Audit & Supervisory Board Member
Executive Advisor (Retired in June 2022)
Outside Audit & Supervisory Board Member, NSD (present position)

Independent Officer

Audit & Supervisory
Board Member
Term of office: New appointment

Independent Officer* Term of office represents the period as of June 2023.

69

Apr. 1981
Apr. 2002
Jun. 2010
Jun. 2011
Jun. 2014
Jun. 2015

Jun. 2012
Apr. 2015
Jun. 2015
Apr. 2018
Jun. 2018
Jun. 2020
Jun. 2022(Born March 1, 1984)

Outside Audit & Supervisory
Board Member

Jun. 2019

Independent Officer

Kiyoshi Kondo

Outside Audit & Supervisory
Board Member

Jan. 2002
Jan. 2014

Joined The Sanwa Bank, Limited. (now MUFG Bank, Ltd.)(Retired in June 1995)
Registered as an attorney-at-Law (Dai-ni Tokyo Bar Association)
Established Jinnouchi Law Offices
Representative Attorney-at-law (present position)
Outside Director, NSD (present position)

Independent Officer

Toru Takeuchi

Outside Director

Apr. 1989

Integrated Report 2023

Dec. 2009
Sep. 2014
Jun. 2016
Jun. 2023

Joined ShinNihon LLC (now Ernst & Young ShinNihon LLC)
(Retired in September 2014)
Registered as a certified public accountant
Established Nishiura Certified Public Accountant Office (present position)
Of Counsel, S&N Partners LAW AND ACCOUNTING OFFICE(present position)
Outside Audit & Supervisory Board Member, NSD (present position)

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

●Expertise Expected of Members of the Board of Directors
Expected expertise
Name

Directors

Audit &
Supervisory
Board Members

Corporate
Management

IT

Legal &
Compliance

Finance &Accounting

GlobalBusiness

Yoshikazu Imajo

〇

〇

〇

〇

〇

Hideshi Maekawa

〇

〇

〇

〇

〇

Osamu Yamoto〇〇

Hidetaka Kikawada〇〇

Atsuhiro Kawamata

〇

〇

〇

Kumiko Jinnouchi

〇

〇

〇

Toru Takeuchi

〇

〇

〇

Kiyoshi Kondo

〇

〇

〇

Kunio Kawa

〇

〇

〇

〇

〇

〇

Chieko Nishiura〇〇●Executive Officers
Names of executive officers who are not directors and their responsibilities are presented below.
Name

Position

Responsibilities

Satoshi Kiyota

Managing
Executive Officer

Head of Financial Business Unit

Atsuji Kobayashi

Managing
Executive Officer

Head of Social Infrastructure Business Unit, and General Manager ofSocial Infrastructure Business Division 2, Social Infrastructure Business Unit

Akio ShinnoManaging
Executive Officer

Head of Industry & Solution Business Unit, in charge of IT Infrastructure Business Division

Tatsuo Kawauchi

Executive Officer

Head of Development Support Division

Yoshihiko Kurihara

Executive Officer

General Manager of Corporate Planning Department, Corporate Planning Division

Masataka Komatsu Executive Officer

General Manager of Healthcare Business Division

Hajime Shinagawa

Executive Officer

General Manager of IT Infrastructure Business Division

Shingo Shinohara

Executive Officer

General Manager of Social Infrastructure Business Division 1, Social Infrastructure Business Unit,
and General Manager of Social Platform Division

Toshiya Shimura

Executive Officer

General Manager of Market Development Business Division

Masaru Sugiura

Executive Officer

General Manager of Industrial Business Division 2 andGeneral Manager of Enterprise Business Division, Industry & Solution Business Unit

Shinji Suzuki

Executive Officer

General Manager of Financial Business Division 1, Financial Business Unit

Umon Takahashi

Executive Officer

General Manager of Advanced Solution Business Division,
Advanced Technology Strategic Business Unit

Shuji Takahashi

Executive Officer

General Manager of Industrial Business Division 1, Industry & Solution Business Unit

Tsuyoshi Takeda

Executive Officer

General Manager of Financial Business Division 2, Financial Business Unit

Kiyoharu Taniguchi

Executive Officer

General Manager of Financial Business Division 3, Financial Business Unit

Mayuko Miike

Executive Officer

General Manager of Human Resources Department, Corporate Service Division

Kiyokimi Yagi

Executive Officer

General Manager of Corporate Secretary Department, Corporate Service Division

Integrated Report 2023

70

Financial and Non-Financial Data
Key Financial Data (Consolidated)*1
FY2013

FY2014FY2015FY2016

Operating Results
Net sales

40,28542,99051,585――――

Cost of sales

31,65533,77740,674

43,762Gross profit

8,630

9,213

10,911

11,472

Selling, general, and administrative expenses

3,781

4,069

4,532

4,298

Operating income

4,848

5,144

6,378

7,173

EBITDA (Operating income + Amortization of goodwill + Depreciation)

5,180

5,507

6,904

7,666

Ordinary income

5,076

5,326

6,456

7,300

Net income attributable to owners of the parent

3,165

2,973

3,110

4,543

Orders received (System Development Business)

35,01535,576

42,836

43,778Order backlog (System Development Business)

7,085

7,195

8,511

8,460

New core business net sales

55,234

Profitability Indices
Gross profit margin (%)

21.4

21.4

21.2

20.8

Operating margin (%)

12.0

12.0

12.4

13.0

EBITDA margin (%)

12.9

12.8

13.4

13.9

Ratio of net income to net assets attributable to NSD shareholders (ROE) (%)

7.5

6.9

7.5

10.8

Ratio of ordinary income to total assets (%)

10.6

10.9

13.2

14.7

Financial Position
Current assets

33,92434,88734,54337,073

Non-current assets

14,385

14,91013,64913,836

Total assets

48,30949,79748,19350,910Current liabilities

3,926

6,345

6,171

6,525

Non-current liabilities

1,352

744

459

407

Total liabilities

5,278

7,090

6,631

6,932

Net assets

43,03042,707

41,561

43,977

Per Share Indices
Net income per share (EPS) (yen)

38.10

36.02

35.49

52.90

Net assets per share (yen)513.98473.17471.17505.34

16.0

39.0

18.5

22.0

Annual dividend per share (yen)Capital Expenditure, Depreciation & Amortization
and Research & Development Expenses

1,249

998

532

295

Depreciation & amortization

Capital expenditure

274

297

413

424

Research & development expenses

224

239

263

147

Cash Flows
Cash flows from operating activities

3,412

4,512

2,304

5,115

Cash flows from investing activities

1,034

285

263

1,500

Cash flows from financing activities-2,255-4,937-3,463-2,692

Free cash flow

4,447

4,798

2,568

6,615

Cash and cash equivalents at end of period

21,986

21,93020,942

24,875

Dividend payout ratio (%)

42.0

108.3

52.1

41.6

Total return ratio (%)

73.6

165.7

112.1

63.7

Shareholder Returns*3

Stock Price Indicators
Year-end stock price (yen)587.73885.50832.00804.00Market capitalization

48,84479,02872,39869,009Price-earnings ratio (PER) (x)

15.20

16.97

24.58

23.44

Total shareholder return (TSR) (%)*4

―

―

―

―

(Comparison index: TOPIX including dividends [%])

(―)

(―)

(―)

(―)

*1 Changes in accounting standards and policies are reflected in the financial data for the fiscal year in which they were adopted and beyond (not retroactively adopted).
*2 In the event of a stock split, etc., per share indices are calculated based on the number of shares as of the end of the most recent fiscal year.
*3 Fiscal 2014 and 2019 indicators for dividend payout ratio and total return ratio are calculated to include the Company’s 45th and 50th anniversary commemorative dividends.
*4 Total shareholder return is the total return, including dividends and capital gains, and is calculated with the stock price at the end of fiscal 2017 as a base of 100%.

71

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

(millions of yen)
FY2017FY2018FY2019FY2020

FY2021

FY2022

58,08061,94465,063

66,184

71,18877,982―――18,00423,53728,411

46,172

48,78051,11852,14555,35060,431

11,907

13,164

13,945

14,03815,837

17,550

3,989

4,509

4,400

4,195

4,422

5,025

7,918

8,654

9,545

9,842

11,414

12,524

8,470

9,355

10,20810,50912,156

13,351

8,119

8,756

9,661

9,955

11,654

12,662

5,368

5,817

6,314

6,373

7,823

10,21946,41548,99958,91659,81767,64072,411

9,423

10,06813,175

13,895

17,581

19,830

20.5

21.3

21.4

21.2

22.2

22.5

13.6

14.0

14.7

14.9

16.0

16.1

14.6

15.1

15.7

15.9

17.1

17.1

12.1

12.6

13.8

13.7

15.7

19.3

15.5

15.9

17.6

17.6

19.0

19.3

34,42535,81939,65444,06848,20655,11919,621

20,058

14,23015,39015,067

13,04054,04655,87853,88559,45863,274

68,159

7,392

7,701

7,820

8,823

9,435

11,123

640

830

1,086

1,461

1,994

1,577

8,033

8,532

8,907

10,284

11,42912,70146,01347,34544,97849,173

51,84455,458

63.38

69.65

78.21

80.10

99.37

132.31537.08566.36557.46613.71657.57711.73

26.0

30.0

46.0

42.0

52.0

67.0

213

314

553

689

560

390

443

468

427

423

492

490

65

157

155

118

184

190

10,067

6,457

5,461

6,764

8,157

7,244

-5,822

-412

4,285

-658

-377

6,018

-3,321-4,556-8,569-3,628-6,146-7,574634

5,048

11,050

7,499

6,867

16,08522,16822,681

25,172

29,02929,75738,297

41.0

43.1

58.8

52.4

52.3

50.6

66.3

77.1

137.5

67.7

86.3

74.9

1,085.50

1,288.50

1,440.00

1,841.00

2,192.00

2,384.00

91,693

106,697

114,789

145,822

170,657

183,254

17.13

18.50

18.41

22.98

22.06

18.02

―

121.5

139.7

180.5

217.6

241.5

(―)

(95.0)(85.9)(122.1)(124.6)(131.8)Integrated Report 2023

72

Financial and Non-Financial Data

Key Financial Data (Consolidated)(millions of yen)
FY2018FY2019FY2020

FY2021

FY2022

By Segment
Net sales
System Development Business
Financial IT

20,36820,56020,79022,307

24,561

Industry & Infrastructure IT

28,24829,88030,33932,50935,506IT Infrastructure Construction

6,915

7,730

8,052

9,353

10,275

Solution Business

6,524

7,134

7,098

7,257

7,836

Adjustment

-482

-241

-97

-239

-197

61,57365,063

66,184

71,18877,982Financial IT

3,117

3,398

3,597

3,991

4,522

Industry & Infrastructure IT

4,483

4,750

4,694

5,569

5,919

IT Infrastructure Construction

982

1,117

1,166

1,518

1,750

Solution Business

120

494

572

604

702

Adjustment

-211

-215

-188

-268

-368

Total

8,492

9,545

9,842

11,414

12,524

Total
Operating income
System Development Business

System Development Business (By Industry)
By customer industry
Finance

21,195

21,86721,31922,84026,127

Service

9,272

9,477

10,272

11,303

11,998Manufacturing

6,566

7,142

7,578

8,402

9,103

Telecommunications

4,947

5,120

5,670

5,605

5,560

Transportation

4,104

5,089

4,976

5,706

6,066

Commerce

2,522

2,874

3,000

3,086

3,229

Public

3,595

3,087

3,007

4,133

4,859

Electricity, Gas, Water

1,520

1,823

1,541

792

856

Construction

1,195

1,284

1,362

1,295

1,139

Others

196

188

366

787

1,220

Total

55,117

57,95659,097

63,95470,162Major Banks

7,567

8,326

7,417

8,194

9,636

Other Banks

2,776

2,528

2,586

2,524

3,040

Insurance Companies

7,580

8,087

8,333

8,272

8,862

Securities Companies

1,325

1,319

1,113

1,201

1,315

Credit card Companies

1,491

1,077

994

1,595

2,045

Others

455

528

873

1,052

1,228

Total

21,195

21,86721,31922,84026,127

―

1,807

1,877

2,288

2,222

744

746

808

694

1,277

1,069

904

969

1,016

832

1,076

1,027

2,261

2,560

2,155

2,906

7,107

7,087

7,233

7,819

Breakdown of Financial sector

Solution Business (By Solution Category)
Human Resource
Logistics
Shareholder Relation Services
Security
Others
Total

73

Integrated Report 2023

―
―
―
―
―

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth

Key Non-Financial Data
FY2018FY2019FY2020

FY2021

FY2022

Personnel
Number of employees (consolidated)
Male
Female

3,428

3,467

3,522

3,560

3,595

2,804

2,809

2,818

2,830

2,826

624

658

704

730

769

3,003

3,051

3,080

3,106

3,109

Male

2,493

2,514

2,505

2,506

2,499

Female

510

537

575

600

610

17.0

17.6

18.7

19.3

19.6

Number of employees (non-consolidated)

Ratio of female employees (%)
Ratio of female managers (%)

3.5

3.5

4.7

5.4

6.2

Number of new graduate hires

137

139

137

129

130

Male

100

96

86

83

88

Female

37

43

51

46

42

27.0

30.9

37.2

35.7

32.3

10

15

11

20

18

10

8

8

11

16

Ratio of women in new graduate hires (%)
Number of mid-career hires
Male
FemaleTurnover ratio (%)*6
Average years of service
Male
FemaleAverage salary (yen)

0

7

3

9

2

2.8

3.8

2.6

2.9

3.5

14.3

14.6

14.8

15.0

15.3

15.3

15.5

15.8

16.1

16.3

10.1

10.3

10.3

10.6

10.9

6,362,181

6,411,394

6,423,166

6,515,058

6,714,129

Average monthly overtime hours

19.4

19.9

17.0

19.0

18.5

Number of paid leave days taken

14.2

13.9

11.7

12.4

13.7

Ratio of paid leave days taken (%)

73.8

72.4

59.9

63.3

70.1

Number of employees taking childcare leave

32

27

47

37

36

2

8

13

17

17

Male
FemaleRatio of employees taking childcare leave (%)

30

19

34

20

19

27.6

25.0

43.1

43.5

48.7
30.9

Male

2.3

9.0

17.3

26.2

Female

100

100

100

100

100

Ratio of employees returning from childcare leave (%)

100

96.9

100

95.7

97.3

Number of employees working reduced hours due to childcare

75

94

94

100

103

Number of employees using the family care leave system

2

1

3

3

0

Number of employees using the short-term family care leave system

1

4

6

3

4

Number of employees working reduced hours due to family care

1

1

3

2

2

4,014

4,001

4,353

4,527

4,629

Number of IT credential holders*7
Environment
CO2 emissions (Scope 1) (t-CO2)
CO2 emissions (Scope 2) (t-CO2)*8
Electricity consumption (kWh)
*8

87

96

64

77

86

1,341

1,280

1,273

1,026

915

2,282,297

2,248,712

2,301,866

2,382,447

2,375,359

Governance
Number of female directors

1

1

1

1

1

Ratio of female directors (%)

16.7

16.7

16.7

14.3

14.3

Number of independent outside directors

2

3

3

3

3

Ratio of independent outside directors (%)

33.3

50.0

50.0

42.9

42.9

Number of independent outside Audit & Supervisory Board members

2

2

2

2

2

Ratio of independent outside Audit & Supervisory Board members (%)

66.7

66.7

66.7

66.7

66.7

*5 Unless otherwise indicated, the data represent non-consolidated figures.
*6 The turnover rate is calculated excluding mandatory retirements and persons using the Company’s early retirement incentive program.
*7 The number of IT credential holders represents the total number of holders of Information Technology Engineer Certification, PMP® (Project Management Professional; PMP®
is a registered trademark of PMI, USA) credential, various vendor credentials, and credentials issued by other organizations.
*8 CO2 emissions cover the head office, branch offices, business sites, and consolidated subsidiaries (excluding overseas subsidiaries) and are calculated by multiplying
electricity consumption at each site by the emissions factor at each site.

Integrated Report 2023

74

Company Information (As of March 31, 2023)●Corporate ProfileName

NSD Co., Ltd.

Established

April 8, 1969
System Development Business(1) Planning, design and development of IT systems(2) Construction of IT infrastructure

Business lines(1) Provision of services that utilize IT

Solution Business(2) Sales of software products
Capital7,205 million yen

Number of employees (consolidated) 3,595●Offices
Head Office

WATERRAS TOWER, 2-101 Kanda-awajicho, Chiyoda-ku, Tokyo, Japan

Osaka Branch Office

DOJIMA AVANZA, 1-6-20 Dojima, Kita-ku, Osaka-shi, Osaka, Japan

Nagoya Branch Office

NAGOYA Lucent Tower, 6-1 Ushijimacho, Nishi-ku, Nagoya-shi, Aichi, Japan

Fukuoka Branch Office

Kyukan Jotenjidori Building, 1-13-1 Hakataekimae, Hakata-ku, Fukuoka-shi, Fukuoka, Japan

Sendai Business Site

AER, 1-3-1 Chuo, Aoba-ku, Sendai-shi, Miyagi, Japan

Hiroshima Business Site

HIROSHIMA TRAIN VERT BUILDING, 1-2-22 Kamiyacho, Naka-ku, Hiroshima-shi, Hiroshima, Japan●Organizational Chart (As of October 1, 2023)
General Meeting of Shareholders
Financial Business Unit

Audit & Supervisory Board Members
Audit & Supervisory Board
Board of Directors

Industrial & Solution
Business Unit

Governance Committee
Sustainability
Management Committee
Risk Management
Committee

Business Headquarters

Social Infrastructure
Business Unit
Advanced Technology
Strategic Business Unit

Compliance
Committee
Information Security
Committee
President & CEO
Management Meeting
Executive Meeting

Corporate Planning DivisionCorporate Service Division

Financial Business Division 1

Systems Department 1–3

Financial Business Division 2

Systems Department 1–3

Financial Business Division 3

Systems Department 1–3

Industrial Business Division 1

Systems Department 1–5

Industrial Business Division 2

Systems Department 1–3

Enterprise Business Division

Enterprise Business Promotion Department

Social Infrastructure Business Division 1

Systems Department 1–4

Social Infrastructure Business Division 2

Systems Department 1–7

Advanced Solution Business
Division

Advanced Technology Development Department
Advanced Solution Planning Department
DX Consulting Department

IT Infrastructure Business Division

IT Infrastructure Department 1–3

Market Development
Business Division

Business Integration &Promotion Department
Digital Service Sales
Promotion Department 1–2

Social Platform Division

Systems Department 1

Healthcare Business Division

Healthcare Business Promotion Department

Development Support
Division

Development Support Department
Technology & Process Support Department
Quality Support Department

Corporate Planning
Department
Corporate Secretary Department
Human Resources Department,
General Affairs Department,
Accounting & Finance Department
Internal Auditing Department

75

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status

Foundation of Value Creation to Support Growth

Corporate Data

●Group Companies (As of October 1, 2023)
Company name

Address

Business lines

NSD Advanced Technology ResearchInstitute Co., Ltd.

Chiyoda-ku, Tokyo

Research and development of advanced technology andcreation of new businesses

StellaS Co., Ltd.

Chiyoda-ku, Tokyo

Human resource solutions and logistics solutions

FSK Co., Ltd.

Iwaki-shi, Fukushima

System construction, operation support, maintenance,and business support

Trigger Inc.

Chiyoda-ku, Tokyo

IT consulting and system development

ART Technology Co., Ltd.

Sabae-shi, Fukui

System development and solutions

ART Finex Co., Ltd.

Sabae-shi, Fukui

RFID product development and solutions

ART Software Co., Ltd.

Fukui-shi, Fukui

System development and solutions

ART Solution Co., Ltd.

Kanazawa-shi, Ishikawa

System development and solutions

Create Atelier Co., Ltd.

Minato-ku, Tokyo

System development and solutions

NHOSA Corporation

Nakano-ku, Tokyo

Development and sales of systems for dental clinics and dialysis facilities

Shareholders Relation Service, Inc.

Chiyoda-ku, TokyoIR support services for individual shareholders

human design Co., Ltd.

Fukui-shi, Fukui

Temporary staffing and education support

NSD International, Inc.

New York State, USA

Services for Japanese companies in the United States

Chengdu Renbenxindong Technology Ltd.

Chengdu, China

Offshore development and services for Japanese companies in China

Renbenxindong Technology Ltd.

Beijing, China

Health management services in China●Business Network (As of October 1, 2023)●拠点 Renbenxindong Technology Ltd.

NSD International Inc.

Chengdu Renbenxindong Technology Ltd.

8
8

Sendai Business Site

● Head Office● Branch Office● Business Site
● Subsidiary

ART Technology Co., Ltd.
ART Finex Co., Ltd.
ART Software Co., Ltd.
human design Co., Ltd.

FSK Co., Ltd.
ART Solution Co., Ltd.

NSD Head Office
Hiroshima Business Site
Fukuoka Branch OfficeOsaka Branch Office

Nagoya Branch Office

NSD Advanced Technology Research Institute Co., Ltd.
StellaS Co., Ltd.
Trigger Inc.
Create Atelier Co., Ltd.
NHOSA Corporation
Shareholders Relation Service, Inc.

Integrated Report 2023

76

Company Information (As of March 31, 2023)●Stock Information
Stock exchange of listing

Prime Market of Tokyo Stock Exchange

Securities code

9759

Number of shares per trading unit

100

Number of authorized shares

200,000,000

Number of issued shares

87,000,000

Number of shareholders

22,189Administrator of shareholder registry

Mitsubishi UFJ Trust and Banking Corporation 1-4-5, Marunouchi, Chiyoda-ku, Tokyo●Share Distribution by Type of Shareholder
Treasury shares
11.65%

Individuals andothers
26.72%
Foreigncorporations, etc.
23.74%

Financial institutions
26.30%
Financial
instruments firms
0.86%
No. of shares:

87,000thousand

Other
corporations
10.73%●Shareholder Distribution by Type

●Foreign corporations,etc. 0.99%●Other corporations
0.54%●Financial
instruments firms
0.14%●Financial institutions
0.10%

Individuals
and others
98.23%

No. ofshareholders:

22,189●Major Shareholders
Number of shares
held (thousands)

Ownership ratio (%)*

The Master Trust Bank of Japan, Ltd.

9,509

12.37

IPC Co., Ltd.

5,658

7.36

Custody Bank of Japan, Ltd.

4,050

5.26

State Street Bank and Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited Tokyo Branch)

4,024

5.23

Northern Trust Co.
(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited Tokyo Branch)

3,792

4.93

State Street Bank and Trust Company(Standing proxy: Mizuho Bank, Ltd.)

3,329

4.33

The Nomura Trust and Banking Co., Ltd.

3,258

4.23

KD Associates, Ltd.

2,697

3.50

NSD Employee Stock Ownership Association

2,211

2.87

The Dai-ichi Life Insurance Company, Limited

2,072

2.69

Name

* Although the Company owns treasury stock (10,131 thousand shares), it is excluded from the calculation of ownership ratio.

77

Integrated Report 2023

Business Foundation

Growth Strategies

Business Status

Corporate Data

Foundation of Value Creation to Support Growth●NSD’s Stock Price (Comparison with TOPIX)
（%）

600
600
NSD

TOPIX

500
500
400
400
300
300
200
200
100
100
0

0

Mar. 20132013/3Mar. 20142014/3Mar. 2015

Mar. 20162015/3Mar. 20172016/3Mar. 20182017/3Mar. 20192018/3Mar. 20202019/3Mar. 2021

2020/3Mar. 2022

2021/3Mar. 2023

2022/32023/3

600●Dividendper Share
(yen)

500

■■ Common dividend ■ Commemorative dividend

80

67.0

400

60

46.0

300

39.0

40

200
16.0

20

100

22.5

18.5

22.0

26.0

14.0

30.0

32.0

16.5

0

0 FY2013
2013/3

氏名FY2014
2014/3

役職

52.0
42.0

FY2015
2015/3

FY2016
2016/3

FY20172017/3

FY2018
2018/3

FY20192019/3

担当

FY20202020/3

FY20212021/3

FY20222022/32023/3●Market Capitalization(billions of yen)200■■ Year-end market capitalization

183.2

150

170.6
145.8

100
50
0

39.0
48.8

79.0

72.3

FY2013

FY2014FY201569.0

FY201691.6

FY2017

106.6

114.7

FY2018FY2019FY2020

FY2021

FY2022

Our website
Corporate Information

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

Investor Relations

https://www.nsd.co.jp/english/ir/index.html

Sustainability

https://www.nsd.co.jp/english/sustainability/

Integrated Report 2023

78

NSD Co., Ltd.
WATTERAS TOWER, 2-101 Kanda-awajicho, Chiyoda-ku, Tokyo,
101-0063, Japan
Tel: +81-3-3257-1130
https://www.nsd.co.jp/english/