Financial Results
for the First Quarter of the Fiscal YearEnding March 31, 2024
August 2, 2023

© 2023 TIS Inc.

Highlights

Fiscal 2024 First Quarter: Financial Highlights
・Sales and income up year on year.
・Even with upfront investment, including investment in humanresources, gross profit margin improved and operating marginsettled in 11% range.
・Overall order volume and order backlog increased year on year.
Drop in software development order volume reflects reactionary
decrease.

© 2023 TIS Inc.

2

Contents

Fiscal 2024 First Quarter: Financial Highlights
Fiscal 2024 Performance Forecast
Reference Materials- All statements described in these materials are based on information available to management regarding the TIS INTEC Group—that is,
TIS and the subsidiaries under its umbrella—as of the presentation date and certain assumptions deemed reasonable at this time. No
intent is implied of promise by the Company to achieve such forward-looking statements. Indeed, various factors may cause future results
to be substantially different from the assumptions presented in these materials.
- Amounts for each three-month quarter are calculated by subtracting data for the respective period from the cumulative total.
- Segment sales include intersegment sales. (Except page 9)© 2023 TIS Inc.

3

Fiscal 2024 First Quarter: Financial Highlights
Fiscal 2024 Performance Forecast
Reference Materials© 2023 TIS Inc.

4

Fiscal 2024 First Quarter: Performance Highlights (YOY change)・Higher sales and higher income, thanks to business expansion through accurate responses to clients’
IT investment needs, including demand for digital transformation.
・Operating margin moved into 11% range for first time in a first quarter. Will maintain solid profit
growth ratio.
[Millions of yen]First Quarterof Fiscal 2023

First Quarterof Fiscal 2024

YOY change

Net Sales

118,072

129,429+11,357[+9.6%]

Operating Income

12,502

14,310+1,808[+14.5%]

Operating Margin

10.6%

11.1%+0.5P-Net Income Attributable to Owners of
the Parent Company

8,763

10,147+1,384[+15.8%]Net Income to Net Sales Ratio

7.4%

7.8%+0.4P--Non-operating income: ¥1,165 million(YOY change -¥248 million）-Extraordinary income: ¥773 million(YOY change +¥724 million)-Non-operating expenses: ¥147 million(YOY change +¥22 million)-Extraordinary loss: ¥ 223 million(YOY change -¥120 million)© 2023 TIS Inc.

5

Fiscal 2024 First Quarter:
Operating Income Analysis, Increase/Decrease Reasons (YOY change)
・Even with robust upfront investment, achieved increase in operating income.
Gross profit margin rose to 27.0%.
[Billions of yen]

Operating Income[Operating Margin]

+0.54

+3.09

14.31

[11.1%]

12.50

+1.80

[+14.5%]-1.82[10.6%]Of which, effect ofchange in statusof consolidated
subsidiary, etc.
was +¥0.14 billion

Gross profit margin27.0Actual%[YOY change +0.5 points]

First Quarter of
Fiscal 2023

Increased
sale

Improved
profitability

Increased
SG&A expenses

Prior investment costs for promoting structural transformation:
Up ¥0.48 billion (YOY change)(Cost of sales: +¥0.39 billion, SG&A expenses: +¥0.09 billion)
Software investment / human resources investment / R&D investment+
Human resources investment costs (additional): Up ¥1.36 billion (YOY change)(Cost of sales: +¥0.92 billion, SG&A expenses: +¥0.43 billion)© 2023 TIS Inc.

First Quarter of
Fiscal 2024

Changes in SG&A expenses
Effect of change in status ofconsolidated subsidiary, etc.
Prior investment (excludes cost ofinvestment in human resources)
Prior investment (cost of investment
in human resources)
Others+0.09

Total+1.82

-0.16

+0.43
+1.46

6

Fiscal 2024 First Quarter: Sales by Client Sector
・Higher sales year on year across all client sectors. Key drivers of demand were credit card, bank(overseas), services and public sector clients.
2023年3月期

2024年3月期

第1四半期

第1四半期

First Quarter of Fiscal 2023

22,84133,544[Millions of yen]

35,503First Quarter of Fiscal 2024

24,612[+5.8%][+7.8%]10,596

7,698

8,868

Credit card

ｶｰﾄﾞ

10,659

7,617

3,577

[+19.5%][+1.1%]

Banking

Insurance

銀行等

保険

4,351 10,458[+1.9%][+7.9%][+5.5%]

Other finance

Assembly-based
組立系製造
manufacturing

ﾌﾟﾛｾｽ系製造
manufacturing

Processing-based

Distribution

その他金融

28.4%

10.2%

19.3%
7.5%
6.5%
3.0%

8.9%

Financial sector: 36.3% Industrial sector: 54.5%
Public sector: 6.1%
Other sectors: 3.1%
© 2023 TIS Inc.

7,209

Creditｶｰﾄﾞcard
Banking
銀行等[+47.0%]Service

流通

Distribution
流通

Othersその他[+1.3%]
Others

その他

2.9%
8.2%
19.0%

27.4%

Net Sales
Breakdown
by Client
SectorServiceｻｰﾋﾞｽ
Public公共institutions

公共3,606 3,651

First Quarter of Fiscal 2024

Otherfinance
その他金融
Assembly-based
組立系製造
manufacturing
Processing-based
ﾌﾟﾛｾｽ系製造
manufacturing

Public institutions

ｻｰﾋﾞｽ

Insurance
保険

Net Sales
Breakdown
by Client
Sector7.0%

10,599

8,717

8,265

[+21.6%]First Quarter of Fiscal 2023
3.1%
6.1%

13,037

12,082

6.7%

10.1%

8.2%
5.9%
3.4%

8.2%

Financial sector: 36.5% Industrial sector: 52.4%
Public sector: 8.2%
Other sectors : 2.9%
7Fiscal 2024 First Quarter:
Sales and Income by Key Business Segment (YOY change)[Millions of yen]
Offering Service
Business

Business Process
Management

Financial IT
BusinessIndustrial IT
BusinessRegional ITSolutionsFirst Quarterof Fiscal 2023

First Quarterof Fiscal 2024

YOY change

Net Sales

26,19228,018+1,826[+7.0%]

Operating Income

1,467

1,157-310[-21.2%]

Operating Margin

5.6%

4.1%

-1.5P

-

Net Sales

10,581

10,300-280[-2.7%]

Operating Income

1,087

727-359[-33.1%]

Operating Margin

10.3%

7.1%

-3.2P

-Net Sales

22,96026,737+3,777[+16.5%]

Operating Income

2,7954,081+1,285[+46.0%]Operating Margin

12.2%

15.3%+3.1P-Net Sales

26,701

28,670+1,969[+7.4%]

Operating Income

3,544

4,393+848[+23.9%]Operating Margin

13.3%

15.3%+2.0P-Net Sales

36,397

41,784+5,386[+14.8%]Operating Income

3,404

4,061+656[+19.3%]Operating Margin

9.4%

9.7%+0.3P-Offering Service Business:

Overseas business contributed to sales growth. Posted higher sales but lower income, reflecting expanding IT
investment across a broad spectrum of sectors, including payment services, and increased upfront investment costs.
Business Process Management: Existing data entry business struggled, impacting segment results, leading to lower sales and lower income.
Financial IT Business:
Higher sales and higher income, driven by large-scale projects ordered by core clients in credit card sector as well as
public-sector financial institutions.
Industrial IT Business:
Sales and income were up, reflecting trend toward expanded IT investment, especially among existing clients inmanufacturing sector, and buoyed by ERP demand.
Regional IT Solutions:
Progress in solution deployment complemented by successful capture of IT demand, particularly from healthcare andbanking clients, leading to higher sales and higher income.

© 2023 TIS Inc.

8Fiscal 2024 First Quarter:
Sales by Key Business Segment *For external clients[Millions of yen]
Offering Service BusinessFirst Quarterof Fiscal 2023

First Quarterof Fiscal 2024

YOY change

23,35824,928+1,570[+6.7%]

Software development

11,177

10,288-889[-8.0%]

Operating/cloud services

6,983

8,526

+1,542[+22.1%]

Product/software sales

5,197

6,113+916[+17.6%]

9,997

9,798-198[-2.0%]

Software development

4,289

3,222-1,066[-24.9%]Operating/cloud services

5,707

6,385+678[+11.9%]-189+189-

22,57026,366+3,796[+16.8%]

Software development

12,115

15,336+3,220[+26.6%]

Operating/cloud services

9,103

9,635+532[+5.8%]

Product/software sales

1,351

1,395+43[+3.2%]

26,52628,540+2,013[+7.6%]

Software development

17,75818,946+1,187[+6.7%]

Operating/cloud services

5,827

6,516+688[+11.8%]

Product/software sales

2,940

3,077+137[+4.7%]

35,00539,277+4,272[+12.2%]

Software development

17,88320,063+2,180[+12.2%]

Operating/cloud services

13,603

13,922+318[+2.3%]

Product/software sales

3,518

5,291

+1,773[+50.4%]

Business Process Management

Product/software sales
Financial IT BusinessIndustrial IT BusinessRegional IT Solutions© 2023 TIS Inc.

9Fiscal 2024 First Quarter: Order Status (Total)・Overall, year-on-year increase in order volume and backlog.
・Lower order volume for Financial IT Business reflects changes in demand for software development.
[Millions of yen]Orders received during first quarter

First Quarterof Fiscal 2023

First Quarterof Fiscal 2024

YOY change

88,24989,536+1,287[+1.5%]

Offering Service Business

15,733

16,531+798[+5.1%]

Business Process Management

10,237

10,236-1[-0.0%]

Financial IT Business

14,415

12,423-1,992[-13.8%]Industrial IT Business

19,827

21,534+1,707[+8.6%]

Regional IT Solutions

28,03428,809+775[+2.8%]

Order backlog at end of first quarter

132,876

141,830+8,954[+6.7%]

Offering Service Business

23,78625,634+1,847[+7.8%]

Business Process Management

8,744

7,887-856[-9.8%]

Financial IT Business

31,23534,855+3,620[+11.6%]

Industrial IT Business

31,166

31,059-107[-0.3%]

Regional IT Solutions

37,94342,393+4,450[+11.7%]© 2023 TIS Inc.

10Fiscal 2024 First Quarter: Order Status (Software Development)
・Drop in order volume due to reactionary decrease in demand for large-scale projects in Financial IT
Business as well as reduced Business Process Management demand.
・Order backlog reflects impact of reactionary decrease in demand for large projects in Industrial IT
Business.
[Millions of yen]Orders received during first quarter

First Quarterof Fiscal 2023

First Quarterof Fiscal 2024YOY change

61,232

59,070-2,161[-3.5%]

Offering Service Business

9,561

10,630+1,069[+11.2%]Business Process Management

4,530

3,524-1,005[-22.2%]Financial IT Business

11,872

9,018-2,853[-24.0%]Industrial IT Business

16,83917,430+590[+3.5%]

Regional IT Solutions

18,427

18,465+37[+0.2%]

Order backlog at end of first quarter

92,331

94,606+2,275[+2.5%]

Offering Service Business

14,684

14,070-614[-4.2%]

Business Process Management

8,744

7,751-993[-11.4%]

Financial IT Business

21,63525,507+3,872[+17.9%]Industrial IT Business

23,22021,178-2,041[-8.8%]

Regional IT Solutions

24,04626,099+2,052[+8.5%]© 2023 TIS Inc.

11

Fiscal 2024 First Quarter: Financial Highlights
Fiscal 2024 Performance Forecast
Reference Materials© 2023 TIS Inc.

12

Fiscal 2024: Performance Forecasts*No change

・Anticipate higher sales and higher income as effect of changes, decided on in fiscal 2023, regarding
status of consolidated subsidiaries, will help to absorb higher costs stemming from prior investment
activities, including robust investment in human resources.
・The anticipated decrease in net income is primarily due to a reactionary drop in extraordinary income
due to such factors as a reduction in strategic shareholdings in fiscal 2023.
[Millions of yen]

Fiscal 2023
actualFiscal 2024
estimate

YOY change

Net Sales

508,400

530,000+21,599[+4.2%]

Operating Income

62,32863,500+1,171[+1.9%]

Operating Margin

12.3%

12.0%

-0.3P

-Net Income Attributable toOwners of the Parent Company

55,46142,000-13,461[-24.3%]Net Income to Net Sales Ratio

10.9%

7.9%

-3.0P

-Net Income per Share (Yen)

227.11

174.19-52.92[-23.3%]

ROE *

18.8%

13.7%

-5.1P

-* ROE estimate for fiscal 2024 is a calculated value.

© 2023 TIS Inc.

13Fiscal 2024: Operating Income Analysis, Increase/Decrease Reasons[Forecast]*No change
・Expect higher operating income as further improvement in gross profit margin absorbs rising costs
paralleling prior investment activities.
・If considering effect of goodwill and amortization, contribution from Nihon ICS, a newly consolidated
subsidiary, will have limited impact on income.
[Billions of yen]

Operating Income[Operating Margin]+6.17+2.59
63.50

62.32

[12.0%][12.3%]

-7.59

28.4

Increased
sale

Improved
profitability

Increased
SG&A expenses

Anticipated prior investment costs for promoting structural transformation:
Up ¥1.47 billion (YOY change)(Cost of sales: +¥1.00 billion, SG&A expenses: +¥0.47 billion）
Software investment / Investment in human resources / Investment in R&D+
Anticipated cost of investment in human resources (additional):
Up ¥5.00 billion (YOY change)(Cost of sales : +¥3.20 billion, SG&A expenses : +¥1.80 billion）© 2023 TIS Inc.

[+1.9%]Of which, effect ofchange in statusof consolidatedsubsidiary, etc.
was +¥1.08 billion

Gross profit margin
Plan%[YOY change +0.5 points]

Fiscal 2023
actual+1.17

Fiscal 2024
estimate
Changes in SG&A expenses
Effect of change in status ofconsolidated subsidiary, etc.
Prior investment (excludes investment
in human resources)
Prior investment (investment inhuman resources)
OthersTotal+2.36

+0.47
+1.80

+2.94
+7.59

14

Fiscal 2024: Sales and Income by Key Business Segment[Forecast]*No change
Fiscal 2023
actual[Millions of yen]
Offering ServiceBusinessBusiness Process
Management

Financial IT
Business

Industrial IT
Business

Regional ITSolutions

Net Sales

122,800+11,047[+9.9%]

Operating Income

6,426

7,450+1,023[+15.9%]Operating Margin

5.8%

6.1%+0.3P-Net Sales

43,25544,000+744[+1.7%]

Operating Income

5,123

5,150+26[+0.5%]

Operating Margin

11.8%

11.7%

-0.1P

-Net Sales

101,184

105,500+4,315[+4.3%]

Operating Income

13,896

13,900+3[+0.0%]

Operating Margin

13.7%

13.2%

-0.5P

-Net Sales

113,632

115,700+2,067[+1.8%]

Operating Income

16,72816,800+71[+0.4%]

Operating Margin

14.7%

14.5%

-0.2P

-Net Sales

160,010

165,100+5,089[+3.2%]

Operating Income

19,343

19,900+556[+2.9%]

Operating Margin

12.1%

12.1%

-0.0P

-Business Process Management:

Industrial IT Business:
Regional IT Solutions:© 2023 TIS Inc.

YOY change

111,752

Offering Service Business:

Financial IT Business:

Fiscal 2024
estimate

Expect higher sales and higher income, mainly from effect of change in status of consolidated subsidiaries. Expanding
demand for payment settlement and other broad-based services will be key contributor to sales.
Re-expanding business process outsourcing business, fueled by enhanced added value of services, and concerted
efforts, especially to support business optimization, should lead to gradual increase in sales and income.
Anticipate higher sales, underpinned by steady progress on large projects and capture of IT investment demandcentered on existing clients. Income on a par.
Income likely to be flat, despite higher sales through capture of investment demand, particularly from core clients.
Expect higher sales and higher income, reflecting wider demand for solutions and capture of IT investment demand
from medical services and existing clients.

15

Fiscal 2024 First Quarter: Financial Highlights
Fiscal 2024 Performance Forecast
Reference Materials© 2023 TIS Inc.

16

Fiscal 2024 First Half:
Sales and Income for Key Business Segments [Forecast] *No change[Millions of yen]

Fiscal 2023
first half

Fiscal 2024
first half

YOY change

Net Sales

245,305

261,000+15,694[+6.4%]

Operating Income

27,70929,500+1,790[+6.5%]

Operating Margin

11.3%

11.3%+0.0P-Net Income Attributable toOwners of the Parent Company

18,834

19,500+665[+3.5%]Net Income to Net Sales Ratio

7.7%

7.5%-0.2P-

Net Sales

53,88758,400+4,512[+8.4%]

Operating Income

2,494

2,800+305[+12.2%]

Operating Margin

4.6%

4.8%+0.2P-

Net Sales

21,49021,800+309[+1.4%]

Operating Income

2,405

2,400-5[-0.2%]

Operating Margin

11.2%

11.0%

-0.2P

-

Net Sales

48,71854,200+5,481[+11.3%]Operating Income

6,311

7,500+1,188[+18.8%]Operating Margin

13.0%

13.8%+0.8P-

Net Sales

55,21956,100+880[+1.6%]

Operating Income

7,763

7,700-63[-0.8%]

Operating Margin

14.1%

13.7%

-0.4P-Net Sales

76,30481,600+5,295[+6.9%]

Operating Income

8,352

9,000+647[+7.7%]

Operating Margin

10.9%

11.0%

+0.1P

-Key Business Segments
Offering Service
BusinessBusiness Process
Management

Financial IT
BusinessIndustrial IT
BusinessRegional ITSolutions© 2023 TIS Inc.

17

Fiscal 2024 Second Half:
Sales and Income for Key Business Segments [Forecast] *No change
Fiscal 2023
second half

[Millions of yen]

Fiscal 2024
second half

YOY change

Net Sales

263,095

269,000+5,904[+2.2%]

Operating Income

34,61834,000-618[-1.8%]

Operating Margin

13.2%

12.6%

-0.6P-Net Income Attributable toOwners of the Parent Company

36,62722,500-14,127[-38.6%]Net Income to Net Sales Ratio

13.9%

8.4%-5.5P-Net Sales

57,86564,400+6,534[+11.3%]Operating Income

3,931

4,650+718[+18.3%]Operating Margin

6.8%

7.2%+0.4P-Net Sales

21,76522,200+434[+2.0%]

Operating Income

2,717

2,750+32[+1.2%]

Operating Margin

12.5%

12.4%-0.1P-Net Sales

52,46651,300-1,166[-2.2%]

Operating Income

7,585

6,400-1,185[-15.6%]

Operating Margin

14.5%

12.5%

-2.0P-Net Sales

58,41259,600+1,187[+2.0%]

Operating Income

8,965

9,100+134[+1.5%]

Operating Margin

15.3%

15.3%-0.0P-

Net Sales

83,706

83,500-206[-0.2%]

Operating Income

10,99010,900-90[-0.8%]

Operating Margin

13.1%

13.1%

-0.0P

-Key Business Segments
Offering Service
Business
Business Process
Management

Financial IT
Business
Industrial IT
Business
Regional ITSolutions© 2023 TIS Inc.

Estimated amounts for second half of fiscal 2024 = Annual estimates for fiscal 2024 – First-half estimates

18

Handling these materials
These materials are protected by Japan’s Copyright Law and the Unfair Competition Prevention Law. Unless TIS has expressly given permission, these materials shall not
be copied, duplicated, transcribed, reprinted or modified in part or in whole, inherent know-how shall not be used, and business secrets shall not be disclosed. Company
names, product names and logos are the trademarks or registered trademarks of each company.