Organization for Business Innovation and Communication

Integrated Report 2023

OBIC Co., Ltd.

Top Message
We will continue to change and grow with customers, continuing to move forward with powerful steps
Our Future Business Strategy
Human CapitalThe driving force behind OBIC’s growth is employee growth. OBIC is strongly committed to
the recruitment of new graduates, and works hard to balance strengthening organizational
capabilities with improving employees’ individual specialization through training from a
medium- to long-term perspective in line with each employee’s characteristics, while maintaining
membership-type employment. Based on an open corporate culture, employees with abundant
expertise engage in friendly competition, thereby cultivating diversity and giving rise to new ideas
and innovations every day. We will continue to develop business even further by supporting thecontinuous growth of each and every employee.

Masahiro Noda

Shoichi Tachibana

Chairman and CEO

President and COO

Recent Business Environment
The global economy has been undergoing major changes due to tense overseas situations, soaring
resource prices, and global monetary tightening, and there has been an increased focus on sustainable business growth. In such an environment, information and time have become increasingly
important, in addition to traditional management resources such as human, material and financial
resources, and demand for system investment to enhance corporate productivity has been picking
up. As information systems with higher cost performance are being sought, OBIC proposes solutions that are designed to maximize management efficiency for its customers by providing systems
that can be installed quickly and can get up and running rapidly. These solution proposals havebeen well received by customers of varying company sizes across a wide range of industries.
Notably, OBIC provides cloud services as a one-stop service covering infrastructure toapplications from its in-house cloud center. This offering has earned strong customer recognition
as a service that directly helps to not only reduce operational and maintenance costs, but also
implement advanced security, accelerate decision-making by management, facilitate business
continuity planning and make new work styles possible.

1

OBIC Co., Ltd.

Intellectual Capital
OBIC has shifted its business model from “labor intensive” to “knowledge intensive,” and concentrated on improving employees’ skills and expertise as well as enhancing product functions. As for
OBIC’s intellectual capital, we have accumulated a total of over 1,500 business model patents, which
gives us a competitive edge. We will continue to strategically utilize intellectual capital and promote
continual innovation by employees, thereby providing services with even higher added value.
Natural Capital
OBIC recognizes the importance of its social responsibility to reduce the environmental burden
in order to alleviate the risk of global climate change, and works on promoting a knowledgeintensive business that does not rely on increasing human resources or environmental resources
through various types of technological innovation and managerial efficiency. We have worked
to reduce greenhouse gas emissions from OBIC and corporate customers by concentrating
operations at the cloud center, which boasts advanced environmental performance, and have
set targets to cut greenhouse gas emissions by 50% by 2030 (vs fiscal 2017 levels, Scopes 1 and 2)
and to achieve net zero emissions by 2050. We will continue contributing to the realization of asociety in which environmental conservation is balanced with sustainable corporate growth.
We are evolving and growing together with our customers as business partners, while making
contributions to society through our business activities by helping companies to create new
earnings drivers based on our corporate philosophies of “Company growth starts with employee
growth” and “Innovation ~Destruction and Creation~.” We hope you will continue to look forward
to the OBIC Group’s solid growth prospects for the future.

Vision (Corporate Philosophy and Management Philosophy)
Company growth starts with employee growthInnovation ~Destruction and Creation~
Since our foundation, we have concentrated on personnel development based on the ideathat company growth starts with employee growth. Each individual employee possesses aninnovative spirit and works hard to improve their skills and expertise, not limiting themselvesto their past experiences of success or conventional methods. In this way, they aim for continuous growth.

Mission (Taking Responsibility as a Company)
Support customers’ business reform through the provision of
information systems and contribute to the establishment ofsustainable management foundations
As IT services have become an integral part of social infrastructure, OBIC offers customers
integrated services from provision of systems to support after implementation. We believe our
mission is to help our corporate customers achieve sustained growth.
We support customers’ business reform as their business partner, and contribute to theestablishment of sustainable management foundations, thereby sparking innovation of corporate management throughout Japan.

INTEGRATED REPORT 2023

2

50 Years of History
Founded on a user-oriented approach;started with 2 million yen in capital stock andan office of approx. 20 m2

Transitioned to open systems anddeveloped the OBIC7 series

Osaka Business (currently OBIC) was founded in 1968 during the period of rapid economic growth inJapan. At the time, many large companies had installed accounting machines and large computers
to handle the increasing volume of bookkeeping calculation work. Accounting machines cost several
million yen at the time, which was quite expensive for SMEs, so they would outsource complicatedand extensive paperwork to outside calculation centers.
While working as a sales representative for an import and sales company of accounting machines,
Masahiro Noda (currently Chairman and CEO) held a fervent desire to encourage SMEs to use accounting machines to streamline their administrative processes. He started an accounting machine leasing
business, in which he would acquire used accounting machines that were stored in the warehousesof large companies at low prices, refurbish them, and rent them to SMEs for a fixed monthly fee. He
founded the company as a husband and wife team with stock capital of 2 million yen.

Building during the “Osaka
Business” period (Higashi-ku(currently Chuo-ku), Osaka)

Accounting machines handled at the time

In the 1970s, office computers for SMEs were launched one after another. When Mitsubishi Electric
Corporation introduced its MELCOM series, the first domestically produced office computer, we
signed a distribution agreement and became the No. 1 dealer for sales of MELCOM80. Later, when
the focus of office computer sales shifted from hardware to software, we announced our in-housedeveloped office computer OFFICE80 based on the know-how we had accumulated through leasesales, and it was adopted by customers in various businesses and industries.
In the 1990s, Windows took the PC industry by storm, which led to a rapid shift from the heyday
of office computers to open systems. In order to quickly shift the focus of our business from officecomputers to PCs, we provided PCs to approximately 1,000 employees, trained them in their operation, and began developing an ERP system. At the time, ERP software was mainly created for large
companies and was entirely dominated by major foreign manufacturers until OBIC released the OBIC7
series, which targeted SMEs and was suited to Japanese business practices. The software received
high acclaim for its extensive functions and thorough support.

Named No. 1 dealer for Mitsubishi Electric(at center: former Mitsubishi Electric President Shindo)

Launch of OFFICE80,
the Company’s proprietary brand of office computer

OBIC7 series of comprehensive corporate ERP software
focused on accounting

1979
Number of office computers (MELCOM80 series) delivered exceeds 3,000 units
OBIC Office Automation Co., Ltd. founded
1968
Company founded in Osaka as Osaka Business Co., Ltd.

Japan World Exposition held in Osaka

First giant panda brought to Japan

Kawabata Yasunari awarded the Nobel Prize in Literature

3

OBIC Co., Ltd.

1974
Company name changed to OBIC Co., Ltd.

1980
Office computer “OFFICE80” developed

Treaty of Peace and Friendship Between Japan and the People’s Republic of China signed
Apple Computer, Inc. (now Apple Inc.) founded1997
OBIC7 series of comprehensive corporate ERP software products developed

Tokyo Disneyland opens

Heisei era begins, Berlin Wall falls, and the Cold War ends
Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in Employment goes into effect

Great Hanshin-Awaji Earthquake

50 Years of History

Listed on the First Sectionof the Tokyo Stock Exchange

Promotes Cloud Business

After listing on the Second Section of the Tokyo Stock Exchange in 1998 and on the First Section in
2000, we took various steps to further enhance the management efficiency of our customers. To thisday, we continue to implement a unique proposal style of an integrated production and sales system,
in which sales and SE staff work together in an open-plan office space to address customer issues.
In 2005, construction of the Tokyo headquarters was completed, and a bamboo grove and a smallstone wall were placed in the front garden as a reminder that our employees, who are as flexible andpliable as bamboo, shall work together and press on, as expressed in the quote “The people are yourcastle and your stone walls.”
We also strengthened our ties with society by sponsoring the OBIC Seagulls American footballteam and holding the “OBIC Special Concert” featuring world-renowned conductor Ken-Ichiro
Kobayashi.

Starting from 2013, we began providing OBIC Cloud, a private in-house cloud service. It has beenhighly commended as a solution that enables early system startup and Group-wide optimization, as
well as quick adaptation to changes in the business environment. In addition, in 2017, we opened the
OBIC Cloud Academy, a training facility for customers, which has generated further benefits of system
implementation by using the OBIC Cloud to improve project efficiency and hold system operation
learning sessions.
In 2018, the year of our 50th anniversary, the cumulative number of companies that have installed
the OBIC7 series exceeded 20,000, and its use has spread to corporate customers of various industries
and sizes. We will continue to strive to contribute to our customers and society through sincere
customer service and continued innovation.

1999 The first OBIC Special Concert held

OBIC
Family Sports Festival

2003 American football team OBIC Seagulls is formed
In 2021, won the top league championship for the eighthtime, and first time in seven years

1998
Listed on the Second Section of the Tokyo Stock Exchange
2000
Designated to the First Section of the Tokyo Stock Exchange

FIFA World Cup Korea/Japan begins
Financial Services Agency established; 2,000 yen note issued
Nagano Winter Olympic Games held

2017 Seminar held at OBIC Cloud Academy

2017
OBIC Cloud Academy (Tokyo) opens
2013
Launch of OBIC CloudGreat East Japan Earthquake

Tokyo Skytree opens

Dematerialization of share certificates of listed companies
Bankruptcy of Lehman Brothers (2008 Financial Crisis)

2020 The OBIC Midosuji
Building completed in Osaka,
the site of the Company’s
founding

2018
Number of companies using the OBIC7 series exceeds 20,000
2020
Market capitalization exceeds 2 trillion yen

Tokyo 2020 Olympic Games held
Outbreak of the COVID-19 pandemic
New era “Reiwa” is announced

INTEGRATED REPORT 2023

4

Materiality
Key Priorities Related to BusinessCompany growth starts with employee growthInnovation ~Destruction and Creation~

Technology
innovationand productdevelopment
Production
capitalCorporatephilosophy

Business
continuity plansIntellectual
capitalSustainablegrowth of society
and OBIC

Key
priorities related
to businessInformation security
enhancement

Key
priorities related
to corporate
activities

Increasing added
value throughaccumulation of
know-howHumancapitalNaturalcapitalSecuring and training human resources

Information security enhancement

Realization of employee work-life balance

Business continuity plans

Environmental preservation, including
climate change response

Increasing added value throughaccumulation of know-how

5

OBIC Co., Ltd.

Development of OBIC7 series of comprehensive corporate ERP software products●

Provision of private cloud services●

Data utilization harnessing the latest digital technology such as AI●

Meeting certification standards for information security management●●

Development of a telework environment●

Establishment of duplicate cloud computing center sites●

Arranging a manual for responses during large-scale disasters and conducting periodic training●●

Securing andtraining humanresources●

Ensuring diversity
through employee
growth●Environmental
preservation,
including climatechange response●●A cquisition of business model patents focused on the business practices of each business sector
and industry
Data utilization harnessing the latest digital technology such as AI

Identification and improvement to employee engagement by implementing a feedback system for
operations and operational processes
Development of diverse core personnel through a direct sales structureA rranging a wide variety of education and training programs and skills development, such as for
IT, accounting or specific industries, matching employees’ characteristics
Promotion of flexible work styles such as paid holidays in one-hour increments, staggering work hours and telework●

Acquisition of the Kurumin certification for being a company that excels at supporting childcare●

Meeting certification standards for environmental management systems●●

Rigorous corporate governanceFostering new graduate employees from the very beginning of their professional careers●

Ensuring diversity through employee growth

Rigorous corporate governanceO btaining an SOC 1 Type 2 and SOC 2 Type 2 Report in compliance with the U.S. Statement on
Standards for Attestation Engagements No. 18 (SSAE No. 18) for OBIC cloud services

Key Priorities Related to Corporate Activities

Realization of
employee work-lifebalanceTechnology innovation andproduct development

●

●

●

Information disclosure based on the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD)
E nhancing transparency, fairness, and objectivity by establishing a Nomination and Remuneration
Advisory CommitteeF ormulating and thoroughly implementing each policy concerning compliance with ethics, laws
and regulations, etc.
S olving compliance violations, etc. at an early stage and preventing them from occurring
beforehand by establishing an internal reporting system

Value Creation Process
Source of Our Competitive Advantage

Input
Financial Capital
Equity¥327.8 billion

Free cash flow

¥54.2 billion

Production CapitalContinuously strengthen products that address customer needs

Creation of Social and Economic ValueBusiness Model

OutcomeFinancial Capital

Emphasis on
new graduates

ROE16.1%
Equity ratio

In-housedevelopment

89.4%

Production Capital
Certified as a JSTQB Platinum Partner

Strengthen quality control of products and projects

Results

Provide cloud services with advanced security levels

OutputUpgrade and expand training facilities for customers

SOC 1, 2 Type 2 report
Cloud service operation rate

99.9% or moreIntellectual Capital
Consolidated ResultsIntellectual Capital
R&D expenses

¥1.7 billion

Accumulate expertise through the acquisition of business model patents
focused on the business practices of each business sector and industry

One-stop
solutions¥100.1 billion

Operating income¥62.4 billion

Operating income margin
Periods of consecutive profit growth

Human Capital
Total number of consolidated employees

Strengthen products using technology such as AI and RPA

Net sales

62.4%
29

Dividends

2,082

Active recruitment of new graduates

Annual dividend per share¥250

Development of diverse core personnel

Payout ratio

44.2%

Number of patent applicationsOver 1,500

Human Capital
Number of new graduate employees

146

Ratio of women in managerial posts

9.8%

Employee turnover rate (five-year average)

4%

Improve production through employee innovation
Increase in operating income per employee vs previous fiscal year +14.7%

Development of personnel to respond flexibly to changes
Social Capital

Direct sales

Support digital transformation and help companies to create new
earnings drivers by providing cloud services to customers

Social Capital
Total customer baseOver 25,000 companies

Expand use of cloud services
Dialogue with stakeholders such as investors

Natural Capital
Environmental policies and formulation of targets
Build an environmental management system

Fulfill social responsibilities that ensure business continuity

Cloudbusiness

Natural Capital
Reduce the environmental impact of OBIC and its customers byconcentrating operations at the cloud center
Efficient energy use
Reduction in CO2 emissions per unit

29% vs previous fiscal year

INTEGRATED REPORT 2023

6

Business Model
One-Stop Solution Service
OBIC has remained committed to a user-oriented approach since its foundation in April
1968. From the customer’s viewpoint, OBIC has continuously delivered “the expertiseneeded to generate management efficiency” as required by its customers. These
activities have given rise to the one-stop solution service, a solutions platform that only
OBIC can deliver. This service has a solid reputation among customers as a businessmodel unique to OBIC.

R&D

Consulting

One-Stop
Solution Service
Support

In-House Development and Direct Sales Emphasizing Direct
Relationships with Customers

System installationandcustomization

OBIC constantly provides optimal solutions to customers by identifying the continually changing
issues and needs each customer faces in a timely manner. This is done by remaining firmly committed
to in-house development and direct sales, and forming direct relationships with end-user customers.

Supporting Customers through an Integrated In-House System for
All Processes through to Continuous Improvements after Installation
OBIC provides all IT utilization processes through an integrated in-house system ranging frominstallation consultation to systems planning, design and development, cloud environments andother infrastructure, operation, support after installation and the supply of information.

7%(Fiscal year ended March 31, 2023)

System Integration Services
System Support Services

Recruitment of New Graduates

Office Automation Services

OBIC recruits only new graduates as employees. By carefully taking
time to develop employees’ technical abilities, skills and abilities tomake proposals as well as communication skills, OBIC works hardso that it can provide the optimal solutions for management issues
faced by customers.
“People are the real assets of Osaka Business”(from a corporate brochure published in 1973)

7

OBIC Co., Ltd.

3%

Composition Ratio by Segment

56%
49%

41%

Operating income

Net sales

44%

Business Model
Industry- and Business-Specific Support Capable of Addressing
Customers’ Business Diversification Initiatives
Since its foundation, OBIC has been involved in system building and operational improvement for customers across a broad range of industries and businesses. For issues specific to each business type, OBIC staff
members, who possess knowledge and expertise on those businesses, leverage their abundant trackrecord and experience to guide customers to the optimal solutions.

Flat and Open Organization to Offer In-Depth Support to Customers
OBIC has adopted a flat and open organization in which sales, SE and support staff work closely together
to serve customers. Bringing together the expertise of each type of professional across the lines of different
job specialties enables OBIC to rapidly solve the problems faced by customers.
OBIC7 Series
The OBIC7 series of comprehensive corporate ERP software products is a component-based ERP productthat utilizes information systems, such as those for personnel, payroll, management of working conditions,sales and production, with a primary focus on accounting information systems, to enable the constructionof optimal core operating integration systems for each company.
Utilizing the advantages of a component-based system developed in-house, it maximizes thecharacteristics of customer business types and business formats through customization, and is designed
in such a way that integration is not compromised even when introduced sequentially starting from key
components based on an investment plan.
Because of this, it enables
smooth, total optimization in a
Portal and groupware
short timeframe, contributing
to the optimization of further
Project management
For
For
investment in information
the wholesale industry
the real estate industry
Management
systems for entire groups at a
strategy support
Humantime when the importance ofPayrollresources
For thegroup-based management is
For themanufacturingretail industry
industry
growing.
Accounting information
Sales
Working
information
conditions
The OBIC7 series has been
Production
information
installed by many companies
For the service industry
For the financial industry
Other industry- andsince being launched in 1997
operation-specific systems
and has since secured the top
share of both the number of
Cloud infrastructure (OBIC7 Cloud)companies installed and sales.

By Industry Sector

By Company Size (Sales)(Fiscal year ended March 31, 2023)(Fiscal year ended March 31, 2023)

Other

Financialindustry

19%

Serviceindustry

28%

1%Manufacturingindustry28%

Distribution
industry24%¥100 billion ormore annually24%

Less than¥10 billion annually23%

From ¥10 billion
to ¥100 billion annually53%* Based on net sales of System Integration Services

No. 1*1 share of net sales for ERP
OBIC ranked No. 1 (12.9%) in terms ofmarket share by vendor sales in FY2021
in “ITR Market View: ERP Market 2023,” amarket research report published by ITR
Corporation.
In addition, we ranked first in accounting operations (13.5%) and sales operations (17.0%) for market share by businessfield in FY2021, as well as in various othermarket shares.

10.1%

OBIC

12.9%

7.0%
5.5%
5.5%

5.3%

Source: ITR Market View: ERP Market 2023
*1 Based on FY2021 sales amount

INTEGRATED REPORT 2023

8

Financial Capital
Operating Income Rose for29th Consecutive Fiscal YearNet Sales/Operating Income (¥ million)/Operating Income Margin (%)
Net sales

Since its establishment, OBIC has pursued quality in management with a focus on operating income, and continued to
grow even during various global financial crises, such as
when the bubble economy burst and Lehman Brothers failed.
Recently, factors such as tense overseas conditions, surging
resource costs and global monetary restraints have changed
the world dramatically. Nevertheless, the Company’s employees
pulled together and pushed ahead with business. As a result,
we achieved operating income growth for the 29th consecutive fiscal year and a record operating income margin of 62.4%.
Going forward, we will continue working to secure a strong
management foundation and raise ROE to 10% or more, while
striving to grow earnings and enhance corporate value by sufficiently investing in human resources, cloud-related facilities,
and so forth.
Furthermore, we regard returning profits to shareholders as
one of our key priorities. We believe appropriate reflection of ourcorporate value in our share price will enable us to meet shareholders’ expectations. We plan to pay dividends at a consolidated
payout ratio of roughly 40% for the foreseeable future.

9(¥ million)

Operating income

Operating income margin
100,167

100,000

(%)

100

80

80,00062.4
60,00062,49060

40,00040

20,00020

0’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23

0GrowthProfitability

Efficiency

SafetyContinuity

Operating income(YoY)

Operating income
marginReturn on equity(ROE)

Equity ratio

115.4%

62.4%

16.1%

89.4%

Period of consecutive
operating income
growthOBIC Co., Ltd.

29 fiscal years

Production Capital
Initiatives for Security
Security Responsibility
We are also concentrating on measures to combat the recent surge in cyberattacks. We have established a dedicated security team in-house, drawn
up security rules, and monitor quality. In addition, we enlist several external firms specializing in security to perform periodic vulnerability assessments,
and OBIC7 and our cloud services are highly commended.
To develop security personnel, we encourage employees to acquire the national cybersecurity certification of Registered Information Security
Specialist. At present, between 10 and 20 of our employees are registered as holding this certification and keeping it up to date. We will spare no effort
in ensuring security so that customers will feel comfortable entrusting us with installing and operating their systems.
ISO/IEC 27001 (ISMS)
We recognize that the information assets of both the Company and the customers that we serve are a critical component of our managementfoundation.
We hold information security seminars for all employees several times a year and work to improve employees’ knowledge about security. In addition, to protect these information assets from various security risks, we acquired Information Security Management System (ISMS) certification in 2007,
and have since then expanded the scope of acquisition. Furthermore, an audit is conducted each year by an independent third party for obtaining
and maintaining ISMS certification.
We have secured appropriate measures against risks involving information security under the director in charge of information security.
Policy on Personal Information Protection
We deeply understand that it is our social responsibility as a company to appropriately handle our clients’ personal information, and work to protect
personal information based on the personal information protection policy we have established.
For details, please click the link below.
https://www.obic.co.jp/policy.html (Japanese language only)

Registered Information Security Specialist(Scope of registration)
System analysis, design, development, maintenance, operation, and services ordered by customers, design and development of integrated package
software, and installation and support services,incorporated business units (Tokyo Headquarters,
Tokyo Headquarters Kyobashi Edogrand, Osaka
Headquarters, Yokohama Branch, Nagoya Branch,
Kyoto Branch, Fukuoka Branch, and East Japan Data
Center No. 2)

INTEGRATED REPORT 2023

10

Production Capital
Initiatives for Products and Service
Quality Responsibility
We recognize that providing high-quality products and services is important to ensure rapid installation and reliable operation. To
realize high quality through technological capability improvements in our software testing, we encourage employees to study for the
JSTQB software testing qualification, and have acquired certification as a Platinum Partner, the highest rank in Japan.
Cloud Services
All of the many solutions provided by OBIC are available as cloud services. We build dedicated environments for each customer in our
in-house cloud center, which dramatically reduces their maintenance and upgrade work, while ensuring advanced security and rapid
deployment of reliable operations. Our cloud services help our corporate customers optimize their groupwide operations, organizations and work styles by strengthening internal controls and enabling remote work. We also promptly respond to rapid changes in thebusiness environment.
SOC 1 and SOC 2 Type 2 Report
We have obtained SOC 1 Type 2 Report on internal controls related to contracted business in compliance with the U.S. standard
AT-C Section 320 (SSAE No. 18) as well as SOC 2 Type 2 Report on internal controls related to Trust service standards (among security
standards) in compliance with the U.S. standards AT-C Section 105 and AT-C Section 205 (SSAE No. 18) and SOC 2 Trust Service Criteria(Security).
OBIC is capable of providing highly transparent and highly trustworthy cloud services to its client companies, along with reducing
the burden of audits of financial statements, audits of internal controls and other such processes, and has received objective evaluations of its response to information security risks.

Cloud center

OBIC Cloud Academy, a Training Facility for Customers
The OBIC Cloud Academy serves as a venue for concentrated testing by our customers and meetings to explain operations, as well as
for planning the rollout of solutions in dedicated cloud service environments prepared for each customer. The OBIC Cloud Academy isavailable at all of the Company’s bases across Japan, and the number of visiting companies has surpassed 26,000 total as of March 31,
2023. We are examining various ways it can be utilized as a part of services to assist customers with business continuity planning.

OBIC Cloud Academy

11

OBIC Co., Ltd.

Human Capital
Our Approach to Human Development
Since its foundation, OBIC has emphasized the view that company growth starts with employee growth.
By taking the time to really cultivate the attributes of new graduate employees in accordance withmedium- to long-term targets without being restrained by standard frameworks such as membership-type
and job-type employment models, we are working to bolster our organizational capabilities by fostering
our corporate culture, while enhancing individual employees’ expertise.

Number of Hires2019/32020/32021/32022/32023/32024/32025/3(Planned)

112

109

125

142

145

146

150

Recruitment Strategy
Emphasis on New Graduates
OBIC recruits only new graduates as employees. Employees’ ability to come up with proposals, communication skills, and other human skills are crucial to exploring and finding the best solutions for customers’
business issues. OBIC invests considerable time in developing such human resources. OBIC is strongly
committed to recruiting new graduates as employees it fosters from the very beginning of their professional careers, and works to rigorously develop and motivate human resources.
What We Are Looking for in Employees
Guided by our philosophy of “contributing to the growth of Japan’s economy and society,” we want tocontribute to corporate and social development by solving our corporate clients’ management issues andcontributing to sustainable growth. To continue to address the diverse array of issues faced by our customers as their management partners, we believe not being bound by precedents or past successes andhaving unconventional flexibility and playful ideas as well as a drive to contribute to society are important.
Those are the kind of people we are looking to hire.

Ratio ofnew graduate hires

Ratio of women among
new employees

Training
participation rate

100%

24.0%

100%

*As of April 1, 2023

Training Flowchart
Phase 3:

Education System
To help our customers sustain growth, our employees must have not only IT skills, but also business knowledge in accounting and other areas, as well as industry-specific know-how. Under our robust educationand training system, all employees work to improve a diverse range of knowledge and skills in accounting
and other areas, regardless of their type of job.
As for training formats, we offer online training tailored to various areas of study and participants, inaddition to in-person training, so that all sorts of employees can work to improve their skills in a flexible
manner. We also support employees’ learning by providing assistance for obtaining certifications, paying
certification allowances, and working on online education.
Moreover, innovations arise every year through all employees participating in presentations on
management objectives that have been held since our founding, in addition to other seminars.

Obtain know-how unique
to OBIC

Presentations on management objectives, training forin-house products, training by sharing case studies, etc.

Phase 2:

Obtain highly specialized knowledge
and information

IT skills, industry and business skills, financial analysis andbookkeeping skills, project management, quality management(JSTQB), information asset management, etc.

Phase 1:

Obtain people skills

New employee training, documentation, presentation, facilitation,
logical thinking, leadership, etc.

INTEGRATED REPORT 2023

12

Human Capital
Initiatives for Health and Productivity Management
We have worked hard to maintain and improve the health of our employees based on the principle offamily (an emphasis on new graduates) which we have cultivated since the early days of our foundation in
1968. We are considering and implementing cross-organizational measures extending from main departments to the work-life balance promotion team, centered on our goal of creating environments where
employees can work with good health and grow.
As indicators of health and productivity management, we established a paid leave acquisition ratio of
75%, and have been seeing improvements every fiscal year through the encouragement of periodicallytaking leave and the introduction of a cool-down break.
In recognition of these initiatives, we have been continually certified as a Health & Productivity
Management Outstanding Organization since 2021.

Health & Productivity Management Outstanding Organization 2023
OBIC was designated as a “Health & Productivity Management Outstanding
Organization 2023” by the Ministry of Economy, Trade and Industry and the
Nippon Kenko Kaigi. Based on the belief that employees constantly innovating andfully leveraging their abilities ends up supporting customers’ sustainable growth,
OBIC will continue striving to create environments where employees can workwith good health and grow.

Initiatives to Raise Engagement
OBIC is committed to creating environments where each and every employee can engage in rewarding
work. Employees have interviews with their supervisor several times a year where their progress towards
achieving the business activity targets that they set at the start of the fiscal year is checked, and that
information is utilized in assigning the right people to the right jobs. In addition, we have established a
feedback system that accelerates growth and increases motivation by providing employees with feedback
from those around them. Moreover, we hold the OBIC Family Sports Festival attended by employees
and their family members every year throughout Japan, and give a whole Christmas cake to employees
at Christmas. These initiatives have shaped an open corporate culture that emphasizes communication,
which helps to foster solid teamwork in our business activities.
Additionally, we have introduced an employee stock ownership plan for all employees as a system forsustained enhancement of corporate value.

Status of initiatives forthe paid leave acquisition ratio
As ofMarch 31, 2023

Target for the fiscal year
ending March 31, 2028

70.2%

75.0%

Benefits
As benefits for all employees, in addition to housing allowance, vouchers for welfare facilities, and mealvouchers at the employee cafeteria, we have introduced a selective welfare program which allows
employees to choose benefits suited to several styles from a large number of benefit programs such as
travel, gourmet, sports, childrearing, and self-improvement.

Christmas cakes are handed out to employees every year

13

OBIC Co., Ltd.

Human Capital
Diversity
We believe that individual employee growth combined with greater diversity creates a synergistic effect.
To that end, we encourage employees to hone their respective skills and know-how and build on theirindividuality in an open corporate culture that emphasizes communication.
In addition, we promote flexible work styles so that all employees in various circumstances can use
their abilities to the fullest, and have successful long-term careers. For instance, we offer paid holidays thatcan be used in one-hour increments, shortened working hours for employees raising children until theirchildren finish the sixth grade of elementary school, staggered working hours, and working from home.
Regarding gender diversity, we aim for a ratio of women in managerial posts of at least 10%, and achildcare leave acquisition ratio of 70% or more for male employees, and will continue to work on increasing growth opportunities for employees.
Flexible work hours and locations

Kurumin Certification
OBIC has received Kurumin certification from the Minister of Health, Labourand Welfare for being a company that excels at supporting childcare.
We will keep working to create environments where all employees cangrow and work long term by supporting a good balance between work andchildcare through various initiatives such as enhancing systems for childcare
leave and shortened working hours.
Based on the Act on the Promotion of Women’s Active Engagement inProfessional Life, we have set the following goals under a General Employer Action Plan from fiscal 2023 to
fiscal 2027.
 chieve a ratio of women in managerial posts of 10% or more by the fiscal year ending March 31, 2028AAchieve a childcare leave acquisition ratio by male employees of 70% or more by the fiscal year ending March 31, 2028
Achieve a paid leave acquisition ratio of 75% or more by the fiscal year ending March 31, 2028

Ratio of women in
managerial posts

Ratio of female
employees

9.8%

20.3%

* As of April 1, 2023

As of April 1, 2023

Ratio of employees returning
to work after childcare leave

Childcare leave acquisition
ratio of male employees

91.2%

71.2%

* As of March 31, 2023

* As of March 31, 2023

For details, please click the link below.
https://www.obic.co.jp/sustainability/society/pdf/20230401.pdf (Japanese language only)

INTEGRATED REPORT 2023

14

Natural Capital
Basic Philosophy on Environmental Management

Environmental Performance Data

OBIC recognizes the gravity of its social responsibility to conduct its operations in anenvironmentally friendly manner. Accordingly, OBIC will drive innovation in various
technologies and improve management efficiency to help realize a society balancing
environmental preservation and sustainable corporate growth.

2018/3

Data item

Action Guidelines
1. We recognize the finite nature of resources and energy and strive to use them effectively.
2. We sufficiently consider the conservation and protection of the natural environment and biodiversity.
3. We strive to reduce environmental impact by providing cloud services to customers.
4. We promote work styles that do not require employees to commute or travel, such as working
from home.
5. We act in compliance with environmental laws and regulations, regional ordinances andconventions, and agreements with stakeholders.
6. We work to improve environmental performance by building and operating an environmental
management system, regularly evaluating the progress made on achieving targets, andcontinuously making improvements.

Environmental Targets
Reduce CO2 emissions (reduce by 10% vs previous fiscal year)
Effective use of the Company’senvironmental resources

Fuel
Kerosene
consumption
DieselReduce waste per employee(reduce by 5% vs previous fiscal year)

Enhance management resource
efficiency at partner companies andsafeguard business continuity

Provide cloud services (cloud utilization rate of at least 90%)

Provide flexible and diverse
workplace environments

Develop remote working environments(environment completion rate: 100%)

Legal compliance

Comply with environmental laws and regulations (zero violations)Base yearℓ38,7002020/32021/32022/32023/336,60036,200

0

0

0.06

0.16

0.05

0.08

0.06

0.05

t

1.63

1.67

1.73

0.00

0.00

1.64

City gas

1,000 Nm3

93

84

92

75

70

61

Heat consumption (steam, cold water)

GJ

1,081

1,583

1,853

1,839

3,376

2,864

Electricity consumption

MWh

4,771

4,695

4,525

4,392

4,175

3,936

Water usage*1

m3

12,791

12,873

13,668

12,177

11,714

11,421

t

119.4

120.8

117.3

96.0

105.2

120.8

%

62.2

64.1

57.4

64.3

66.9

71.6

Industrial waste*

t

29.0

64.2

29.6

29.6

17.1

22.5

Industrial waste recycling rate

%

100

100

100

100

100

100

2

GJ

54,02653,441

52,56648,99948,77946,600General waste*1
General waste recycling rate
12050/3

Reduction
Reduction
rate target
rate target(vs base year) (vs base year)

13.7%

3

CO2 emissions Scope 1*

t-CO2

307

282

300

166

156

217

29.4%

Scope 2*3

t-CO2

2,374

2,283

2,157

1,971

1,970

1,469

38.1%

Scope 1 + 2*3

t-CO2

2,681

2,565

2,457

2,137

2,126

1,686

37.1%

0.040

0.035

0.031

0.025

0.024

0.017

58.1%

CO2 emissions per ¥1 million of net sales(Scope 1 + 2)*4

2030/330,040kL

Waste

2023/3

LatestReduction ratereporting year (vs base year)

LPG

Primary energy consumption*

Reduce CO2 emissions per unit of net sales(reduce by 20% vs previous fiscal year)

Unit

2019/350%

100%*1 Water usage and waste is calculated for the Tokyo headquarters.
*2 The amount of energy converted from fossil fuels, nuclear fuels and natural energy such as hydropower and solar power.
*3 Scope 1: Direct emissions from fuel consumption at Company facilities
Scope 2: Indirect emissions from the use of electricity and heat at Company facilities*4 CO2 emissions ÷ Consolidated net sales (¥ million)

External Evaluations
ISO 14001 Certification
ISO 14001 is an international standard for environmental management systems. It provides organizations
with a framework for protecting the environment andresponding to changing environmental conditions,while striking a balance with socioeconomic needs.

15

OBIC Co., Ltd.

(Services)
System analysis, design,development, and maintenanceservices ordered by customers,
design and development ofintegrated package software, andinstallation and support services

Third-Party Assurance
We have obtained third-party assurance for CO2 emissions from JIC Quality Assurance
Ltd. (JICQA), an organization for third-party assurance. We will continue to work onhighly reliable information disclosure.

Natural Capital
Climate Change Initiatives
Governance
We have established the Sustainability Promotion Committee that works under the directsupervision of the President and COO. The President and COO has also been designated as the
person ultimately responsible for climate-related issues and receives daily reports from committee
members regarding changes in the external environment and other issues concerning climatechange, progress made on meeting the Company’s targets, and proposals for new initiatives. If
necessary, these reports and other information are shared with the Board of Directors and otherrelevant parties.
Strategy
1. Risks
Regulatory

Transition risks Legal

Increase in the cost of business due to the introduction of new environmental regulations, such as carbon taxes

Litigation and halts in operation due to serious violations of environmental
laws and regulations, etc.

3. Policy for Reduction of Greenhouse Gas Emissions
We recognize risks and opportunities in climate change which are reflected in our policy to
reduce greenhouse gas emissions and in our initiatives. In an aim to reduce the environmentalload of our Tokyo headquarters, we promoted a change to LED lighting for all buildings and aconversion to energy saving facilities, which have helped to reduce annual electricity consumption. Additionally, going forward we will gradually convert the electricity plans at offices in eachlocation to renewable energy, thereby reducing CO2 emissions on a continual basis.
Risk Management
We conduct risk management through a committee and a risk management system. Eachquarter, relevant departments compile climate-related data at the committee’s request and thisinformation is used by committee members for monitoring purposes, including to confirm thestate of progress, conduct analysis, and identify issues. This ensures the continuous monitoringand management of risk.
Indicators and Targets
We have set the targets below for cutting greenhouse gas emissions (Scope 1 + 2*).
2030

Damage to the Company’s reputation due to an inability to conform to
Reputational
greenhouse gas emission regulations or the like

50% reduction in emissions compared to fiscal 20172050

100% reduction in emissions* Scope 1: Direct emissions from fuel consumption at Company facilities
Scope 2: Indirect emissions from the use of electricity and heat at Company facilities

Physical risks

Impact on business operations or damage to Company facilities, etc. dueto a major natural disaster caused by climate change

2. Opportunities
Products and services

Increased demand for services through cloud centers that offer advanced
environmental performance due to a growing need to reduce greenhousegas emissions

Resource efficiency

Reductions in operational costs accompanying more efficient use ofenergy, such as electricity

Resilience

Increased demand for secure cloud centers that ensure business continuity in the event of a major natural disaster

Response to CDP Questionnaires
CDP climate change surveys target the world’s top companies by market
capitalization and investigate factors such as their activities to reducegreenhouse gas emissions and initiatives for mitigating climate change.
We responded to the CDP questionnaire for fiscal 2022 and received a B
rating.

INTEGRATED REPORT 2023

16

Intellectual Capital
Process for Accumulating Intellectual Property

Patent Acquisition Framework

Strengthen proposal
capabilities

In-house development
and employee education

Strengthen products andservices

Emphasis on
new graduates
In-housedevelopment

Develop market for
medium- to large-sizedcompanies

Direct sales
Accumulate accounting
and industry expertise

Acquire business model
patents

Patent Strategy
OBIC has accumulated a wealth of expertise in various industries and businesses by providing
solutions to customers through in-house development and direct sales activities over many years.
To visualize and increase the added value of this expertise leading to differentiation from thecompetition and bolstering of knowledge intensive business, the Company has been working forover two decades on acquiring business model patents.
Business model patents are patents that are granted for frameworks that utilize systems andother devices to solve business issues. We believe our strength in providing integrated in-houseservices for customers ranging from consulting to business process improvement proposals,
systems design, and support after installation is reflected in the number of these patents that wehave acquired.

17

OBIC Co., Ltd.

Total Number of Patent Applications andRegistrations (patents)

OBIC’s patent strategy emphasizes acquiring
patents linked to management strategy.
1,502
500
1,500
We are working to acquire patents that are
Application
valuable to customers by incorporating
Registration
1,235
423
400
1,200
the process of acquiring business model
patents within various sales, marketing, and
1,002
development strategy processes, such as
300
900strengthening products and services in line775
with marketing for industries and business653
230
200
600
es, and employee education.
In addition, our patent acquisition activi122
ties extend throughout the entire Company
100
300
72
62
as we have established an implementationteam in each business division, centered on
the Solution Business Division’s Intellectual
0
0
’21
’19
’20
’22
’23
Property Strategy Team headed by the
President and COO.
OBIC has applied for and obtained over
1,500 business model patents in total as of March 31, 2023, which is a high level for the IT sector.
Going forward, we will keep endeavoring to provide services that offer even higher added value
and contribute to a sustainable society by actively using patented technology and encouraging
constant innovation by employees.

External Evaluations
OBIC received a high external
assessment of its activities towards
a sustainable society from the Japan
Patent Information Organization(Japio), ranking 6th in the JapioSDGs Patent Index Company
Ranking* among companies in theinformation and communicationsindustry category.

Patented technology that improves operation
efficiency and productivity
Patented technology that facilitates appropriate
management decision-making by companies
Patented technology that realizes waste reduction, paperless operations, and digitalization
Patented technology that strengthens internal
controls and governance* Japio-SDGs Patent Index Company Ranking
https://transtool.japio.or.jp/work/data/SDGs_index_ranking_2022.pdf (Japanese language only)Corporate Governance
Outline of Corporate Governance Framework

Evaluating the Effectiveness of the Board of Directors

General Meeting of Shareholders
Election and dismissal

Election and dismissal

Consult
Report and propose
Supervision ofmanagement

Board of Directors

Election and dismissal

Nomination and Remuneration
Advisory Committee(discretionary advisory body)

OBIC exchanges opinions about the effectiveness of the Board of Directors through individual
consultations with outside officers. The Company held discussions at the Board of Directors basedon the results of those consultations, and has determined that the effectiveness of the Board of
Directors is largely secure.
Summaries of the evaluation results are as follows.

Audit

 BIC’s Board of Directors is well balanced and comprised of members who understand theO
Company’s management philosophy and policies and have a wide variety of experiences and knowledge. It aims to carry out appropriate decision-making and supervise the execution of operations.
● Free and active discussion as well as constructive exchange of opinions are conducted by all of
the attending directors including outside directors.
● The Nomination and Remuneration Advisory Committee, which is a voluntary advisory body,also receives appropriate advice and proposals from outside directors, and works effectively.
●

ReportElection and dismissal
Supervision and instruction
ReportAudit & Supervisory Board

ReportBusiness
Execution

Board of Executive
Officers

Audit

Three types of audit(internal audit, Audit &Supervisory Board members’audit, external accounting audit)

Instruct

Coordination

Coordination

Internal Audit Dept.
(Corporate Planning Office) Coordination

Accounting Auditor

Management
Strategy Committee
ReportOperating/Administrative
Departments

ReportGeneral Affairs Dept.
Compliance and risk management

Three types of audit(internal audit, Audit & Supervisory Board
members’ audit, external accounting audit)

Based on these evaluation results, OBIC is working to improve the effectiveness of the Board of
Directors even further.

Countermeasures for Business and Other Risks
Group Companies

OBIC has built a corporate governance system that enlists the Board of Directors to serve as a managerial
decision-making body, while also employing the Audit & Supervisory Board equipped with the managerial
audit function, and an Executive Officer system to further strengthen the corporate structure.
The Board of Directors meets regularly once a month to deliberate on all important matters, and also
discusses and explores countermeasures with respect to progress achieved in business performance. The
Company has 12 executive officers in addition to four directors who concurrently serve as executive officers.
Adoption of the Executive Officer system has culminated in a framework that separates the managerial
decision-making and supervision functions from the business execution functions and that makes it possible
to promptly address changes in the business environment. At meetings of the Management Strategy
Committee, held on the same day as those of the Board of Directors, committee members discuss mattersreported particularly regarding the current status of business performance in respective departments, andsubsequently make decisions on specific measures in that regard.
The Audit & Supervisory Board consists of three members including two outside Audit & Supervisory Board
members and serves to strengthen the management monitoring function. Its members conduct daily audits,
attend important meetings including those of the Board of Directors, and provide advice and recommendations
as appropriate. The Audit & Supervisory Board works smoothly, seeking to ensure objectivity and neutrality.

Risks

Countermeasures

Technology innovationand product development

Strives to engage in research and development activities related to the latest
technology trends in a wide range of fields, including network technology
and communications technology, verification of new hardware products orverification of software and middleware.

Loss of human resourcesand expertise

Spends significant time and money each year on securing and developing
talented human resources and working to develop human resources withstrong future potential.

Information security

Strives to strengthen and ensure customer data management and toprevent leaks by establishing information management rules, ensuring that
all employees are made aware of these through training, and strengthening
software and information security.

Environmental
and climate change

Strives to implement business continuity plan measures, such as setting up
a teleworking environment for employees and establishing duplicate cloudcomputing center sites. Furthermore, by concentrating its cloud computing
centers with advanced environmental performance, it is working to reduce
its own greenhouse gas emissions and those of its customers.

INTEGRATED REPORT 2023

18

Corporate Governance
Details of Officer Remuneration
Category

Directors

Process for Determining Officer Remuneration

Type of remuneration

Eligibility

Limit

Basic remuneration(monthly fixed remuneration)

Inside andoutsideCapped at ¥1,000 million annually(including no more than ¥90
million for outside directors)

Bonuses
Inside(performance-linked remuneration)

Up to 0.5% of net income or¥400 million annually

Shares with restrictions on transfer

InsideUp to ¥600 million annually

Inside andoutsideUp to ¥30 million annually

Audit &
Supervisory Basic remuneration
Board(monthly fixed remuneration)members

Director remuneration is comprised of monetary compensation as basic remuneration(monthly fixed remuneration) and bonuses (performance-linked remuneration), andnon-monetary compensation as restricted stock compensation. Bonuses in the form of
performance-linked remuneration are paid at a fixed period every year with net income
on a non-consolidated basis, which is the ultimate profit from execution of duties towhich the directors make direct contributions, as the performance index, thereby increasing the directors’ ambition to improve performance. The rate of performance-linked
remuneration is approximately 20–30% in the case of standard performance. OBIC’s nonconsolidated net income for the fiscal year ended March 31, 2023 was ¥46,918 million.
Remuneration for Audit & Supervisory Board members is basic remuneration (monthly
fixed remuneration) only.

Total Remuneration, etc. for Each Officer Category
Category

19

Total amount of
remuneration, etc.

(¥ million)

Total amount of remuneration, etc. by type
Basic
remuneration

Bonuses

Shares withrestrictions on transfer

Directors(outside)

830
(32)

605
(32)

182
(—)

42
(—)

Audit & Supervisory
Board members(outside)

24
(12)

24
(12)

—
(—)

—
(—)

Total
(outside)

854
(44)

629
(44)

182
(—)

42
(—)

OBIC Co., Ltd.

Original proposals for the amount of remuneration are drafted based on an additive and subtractive formula within a range determined at the General Meeting of Shareholders after giving consideration to theCompany’s performance based on remuneration according to position in relation to the status of execution of each executive’s duties. Based on the results of an inquiry to the Nomination and Remuneration
Advisory Committee, which is a voluntary advisory body in which outside directors make up a majority ofthe members, a decision is made by the Board of Directors.
Remuneration for Audit & Supervisory Board members is basic remuneration (monthly fixed remuneration) only. The amounts of remuneration for Audit & Supervisory Board members are calculated per discussions among the Audit & Supervisory Board members, within the range resolved by the General Meetingof Shareholders.
Drafting of
remuneration amounts,
etc.

Consult

Consideration by the
Nomination
and Remuneration
Advisory Committee

ReportResolution by
the Board of Directors

April 2022

The Nomination and Remuneration Advisory Committee considered details of officer bonuses for the fiscal
year ended March 31, 2022, and the individual amounts to be paid for basic remuneration for directors in thefiscal year ended March 31, 2023. The committee resolved to report to the June 2022 meeting of the Board of
Directors on the draft produced as a result of the consideration.

April 2022

The Board of Directors resolved to pay the Special Reward Bonus for the Founder and to introduce a shares withrestrictions on transfer plan.

June 2022

A meeting of the Board of Directors following the Ordinary General Meeting of Shareholders received the reportfrom the Nomination and Remuneration Advisory Committee and passed a resolution on the officer bonuses forthe fiscal year ended March 31, 2022, and the allocation of basic remuneration for officers in the fiscal year ended
March 31, 2023, and the shares with restrictions on transfer plan as a compensation plan for directors.

The Nomination and Remuneration Advisory Committee considered details of officer bonuses for the fiscal year
ended March 31, 2023, and the individual amounts to be paid for basic remuneration and for the shares with
March 2023
restrictions on transfer plan for directors for the fiscal year ending March 31, 2024. The committee resolved to
finalize the draft sometime after April 2023.
April 2023

The Nomination and Remuneration Advisory Committee considered details of officer bonuses for the fiscal year
ended March 31, 2023, and the individual amounts to be paid for basic remuneration and for the shares withrestrictions on transfer plan for directors in the fiscal year ending March 31, 2024. The committee resolved toreport to the June 2023 meeting of the Board of Directors on the draft produced as a result of the consideration.

June 2023

A meeting of the Board of Directors following the Ordinary General Meeting of Shareholders received the reportfrom the Nomination and Remuneration Advisory Committee and passed a resolution on the officer bonuses
for the fiscal year ended March 31, 2023, and the individual amounts to be paid for basic remuneration and theshares with restrictions on transfer plan for directors in the fiscal year ending March 31, 2024.

Corporate Governance
System of Directors and Audit & Supervisory Board Members (11)SkillsCategory

Directors

Audit &
Supervisory
Board
members

Name(Date of birth)

Position/responsibilities, etc.

Business
execution

Independent/
outsideSex

Corporate
management

Innovation~Destruction
and Creation~

Businessand industry
experience

Accounting
and finance

Male

●

●

●

●

●

●

●

●

Masahiro Noda
(August 24, 1938)

Chairman and CEO

Shoichi Tachibana(April 26, 1961)

President and COO(Chairman of the Board of Directors)

●

Male

Atsushi Kawanishi(November 29, 1958)

Managing Director
Head of Human Resources andAdministration Supervision Group

●

Male

●

●

Takao Fujimoto(April 7, 1971)

Managing Director
General Manager of Kansai Business Div.

●

Male

●

●

Takeshi Okada(July 1, 1981)

Director
General Manager of Capital Area
Solutions Business Dept.

●

Male

●

●

Yasumasa Gomi
(February 8, 1943)

Director

Independent
outsideMale

Takashi Ejiri(May 16, 1942)

Director

Independent
outsideMale

Mime Egami(September 14, 1957)

Director

Independent
outsideFemaleAkira Koyamachi(March 4, 1958)

Audit & Supervisory Board member(standing)Yasuo Tanaka(December 12, 1973)

Audit & Supervisory Board member(part-time)

Independent
outsideMale

Shigetsugu Yamada(July 4, 1974)

Audit & Supervisory Board member(part-time)

Independent
outside

Male

●

Legal

●
●

●

●
●

●

Male

●

ESG

●
●

●
●
●

●
●

Executive Officers (12) * Excludes four directors serving concurrently as executive officers
Tomonori Anan

Executive Officer

Administrator of Business Planning Office and Accounting Div.

Tetsuji Yamagishi

Executive Officer

Administrator of Capital Area Solutions Business Dept. 5 and Business Dept. 6 and Administrator of Sales Dept.

Kosuke Ishikawa

Executive Officer

Administrator of Human Resources Dept.

Tomoyuki Kajiura

Executive Officer

Administrator of Sales Promotion Div., Solutions Business Div.

Shinichi Furuya

Executive Officer

Administrator of Capital Area Solutions Business Dept. 1 and Business Dept. 2 and Administrator of System Dept.

Fumio Fukushima

Executive Officer

Administrator of Marketing Promotion Div., Solutions Business Div.

Masakazu Hirose

Executive Officer

Administrator of Capital Area Solutions Business Dept. 1 and Business Dept. 2 and Administrator of Sales Dept.

Toru Kanasugi

Executive Officer

Administrator of Purchasing Div.

Takashi Omori

Executive Officer

Administrator of Capital Area Solutions Business Dept. 3 and Business Dept. 4 and Administrator of System Dept.

Keigo Fujihata

Executive Officer

Deputy General Manager of Kansai Business Div.

Yosuke Matsuno

Executive Officer

Administrator of Capital Area Solutions Business Dept. 3 and Business Dept. 4 and Administrator of Sales Dept.

Yuta Hanada

Executive Officer

General Manager of Chubu Nagoya Business Div.

INTEGRATED REPORT 2023

20

Financial Highlights
Consolidated

Net Sales (¥ million)

Operating Income (¥ million)/Operating Income Margin (%)

100,167

100,000

80,00080,48883,86262,490(¥ million)

60,00070,223(%)

70

70,00054,13589,47648,07750,00074,163

43,23840,00037,939

62.4

65

60.5
60

57.3

60,00060,17460,00052,60050,00046,012
41,92740,00053.7

30,00055
30,00051.2

40,00020,0000Ordinary Income (¥ million)

’19

’20

’21

’22

’23

20,00050

10,000

45

0

’19

’20

’21

’22

’23

0

20,00010,000
0

’19

’20

’21

’22

’23

* Increase in operating income for 29 consecutive years

Net Income Attributable to Owners of the Parent (¥ million)
50,11650,000Cash Flow (¥ million)

Net Income per Share (¥)

30,000600

25,00038,00140,000565.1426,54043,50035,096489.96500

22,722
20,43732,22320,00030,00017,25018,316400

15,000300

10,000

200

5,000

100

362.26394.56427.2220,00010,000

0

0

’19

’20

’21

’22

’23

’19

’20

’21

’22

’23

* Cash flow = net income + depreciation– dividends – incomes derived from equity method affiliates

21

OBIC Co., Ltd.

0

’19

’20

’21

’22

’23

Financial Highlights
Total Assets (¥ million)

Net Assets (¥ million)

400,000

366,708

Equity Ratio (%)

400,000

100

323,927
298,257

300,000

244,909

89.2

90.1

89.2

90.6

89.4

’19

’20

’21

’22

’23

327,864

264,59680

293,567

300,000

266,025
218,476

238,39260

200,000

200,000

40
100,000

100,000

20

0

’19

’20

’21

’22

’23

Return on Equity (%)

0

20

15.4

’20

’21

’22

’23

Return on Assets (%)

20

15.5

’19

15.1

15.5

18.0

18.1

0

Net Assets per Share (BPS) (¥)

18.7

19.3

20.3
4,000

3,697.16
3,310.49

16.1

15

15

2,990.72

3,000

2,456.16
10

10

2,000

5

5

1,000

0

’19

’20

’21

’22

’23

0

’19

’20

’21

’22

’23

0

’19

2,680.06

’20

’21

’22

’23

INTEGRATED REPORT 2023

22

Financial Highlights
Return on Invested Capital (ROIC) (%)

15

13.0

13.4

13.6

14.1

Dividend per Share (¥)
14.9

Payout Ratio (%)

250

250

50

215

40.6

12

200

9

150

6

100

20

3

50

10

40

185

43.3

43.9

44.2

’21

’22

’23

37.3

160

0

’19

’20

’21

’22

’23

0

30

135

’19

’20

’21

’22

’23

0

’19

’20

* Return on invested capital (ROIC) =operating income after tax / (shareholders’ equity + interest-bearing debt)

Net Sales per Employee (¥ thousand)Operating Income per Employee (¥ thousand)
46,86145,00038,282

39,77329,23530,00042,136

Value Added per Employee (¥ thousand)

39,59940,00035,29325,49335,36632,05622,801

30,00020,56530,00020,00029,417
26,491

18,09220,00015,00010,00010,000

0

’19

’20

’21

’22

’23

0

’19

’20

’21

’22

’23

* Net sales per employee, operating income per employee and value
added per employee were calculated on the basis of the average numberof employees for the year.

23

OBIC Co., Ltd.

0

’19

’20

’21

’22

’23

* Value added = operating income + labor costs + depreciation

Non-Financial Highlights
Non-consolidated

Ratio of Female Employees (%)

Paid Leave Acquisition Rate (%)

Ratio of Women in Managerial Posts (%)

15

25

19.1

20

15.7

17.0

80
70

19.9

17.5
10

9.1

9.8

5.8

6.5

65.9

66.5

’19

’20

’21

69.6

70.2

’22

’23

60
50

15

10

65.8

7.2

40
30

5

20

5

10
0

’19

’20

’21

’22

’23

Number of Employees Acquiring Childcare Leave (People)

0

’19

’20

’21

’22

’23

Acquisition Rate of Male Employees Taking
Childcare Leave, etc. (%)
80

80

0

Ratio of Employees Using
the Shorter Work Hour System (%)
20

71.2
70

70
60

59

58

61

59
53

60

50

50

40

40

30

30

20

20

10

10

16.7

65.2
58.9

17.2
15.8

15.8

16.5

15

54.4
40.2

0

’19

’20

’21

’22

’23

0

10

5

’19

’20

’21

’22

’23

0

’19

’20

’21

’22

’23

* The number and ratio of employees using the shorter work hour system
are calculated for female employees only.

INTEGRATED REPORT 2023

24

Support for Sports and Culture
OBIC Seagulls

OBIC Special Concerts

American football requires level-headed insight, in-depth strategy and team-oriented tactics. These attributes have a lot in common with OBIC’s approach to business, which involves working closely together
with companies to help transform their businesses through information systems. OBIC has sponsored the
OBIC Seagulls since 2003.The team is part of the National Football Association (commonly known as the X
League) and won the American Football Japan Championship, Rice Bowl 74, in 2021, achieving the feat ofwinning for the eighth time overall.
The OBIC Seagulls are based in
Narashino, Chiba Prefecture, andinteract with the community andconduct activities to popularize
American football. The team strives
to contribute to society throughsports through continuous participation in various events such as putting
on performances at a community
marathon and teaching elementaryand junior high school students
about the fun of American footballin sports classes. Going forward, theteam continues to be grateful to all
for their support and will continue
In 2021, won the top league championshipfor the eighth time, and first time in seven years
striving to be loved by many people.

OBIC has held the “OBIC Special Concert” series every year in Tokyo, Nagoya, Osaka and Fukuoka
since the first concert was held in 1999. It is a popular series of concerts featuring accessible andauthentic classical music. Fabulous performances are given by a first-rate orchestra under thepassionate direction of Mr. Ken-Ichiro Kobayashi, who is known as a “fiery maestro.” Concert halls
are filled to capacity with audiences who are captivated by these musical performances.

A community interaction marathon with Seagulls players

25

OBIC Co., Ltd.

Community interaction with Seagulls players

OBIC Special Concert

Mr. Ken-Ichiro Kobayashi

Golf (Professional Golfer Isao Aoki at Mobara Country Club)OBIC has long sought to help promote the sport of golf in various ways through Japanese
professional golfer Isao Aoki. Since signing an agreement to appear in an OBIC TV commercial in 1982, Mr. Aoki has served as the public face for OBIC while continuing to leadan impressive career on the golf course. Mr. Aoki was inducted into the World Golf Hall of
Fame in 2004, and was awarded the Order of the Rising Sun, Gold Rays with Rosette in 2015.

Mobara Country ClubClub pro Isao Aoki

Company Profile
Company name

OBIC Co., Ltd.

Trademark

Stock Information (As of March 31, 2023)
Total number of shareholders

5,838

Number of shareholders holding full trading units

3,965

Number of shares listed and registered

99,600,000

Headquarters

2-4-15 Kyobashi, Chuo-ku, Tokyo

Number of shares owned by non-residents

32,681,068

32.8%

Date of establishment

April 8, 1968 (Showa 43)

Number of shares owned by Company directors
and principal shareholders

62,947,740

63.2%

Capital stock¥19,178 million

Number of floating shares (consolidated numberof shares consisting of less than 50 trading units)

1,750,683

1.7%

Number of employees

Consolidated: 2,082 Non-Consolidated: 1,888 (As of March 31, 2023)

Number of shares owned by investment trusts

7,259,800

7.2%

Consolidated: ¥100,167 million
Non-Consolidated: ¥93,344 million (Fiscal year ended March 31, 2023)

Number of shares owned by pension trusts

975,400

0.9%

Net sales
Stock listing

Tokyo Stock Exchange Prime Market (Securities Code: 4684)

Principal Shareholders (As of March 31, 2023)

Total number of shares issued

99,600,000 shares

Ranking

Overview of operations• System Integration Services• System Support Services• Office Automation Services

Group companies

OBIC Office Automation Co., Ltd.
OBIC Business Consultant Co., Ltd. (Prime Market)
O.B. System Co., Ltd. (Standard Market)

Financial Results Information

Name

Number ofshares owned(thousand)Ownership
ratio (%)

1

Noda Management Co., Ltd.

16,90919.06

2

The Master Trust Bank of Japan, Ltd.

14,144

15.95

3

Custody Bank of Japan, Ltd.

6,337

7.14

4

JP Morgan Chase Bank 385632 (Standing proxy: Mizuho Bank, Ltd.,
Settlement & Clearing Services Division)

4,650

5.24

5

Masahiro Noda

2,881

3.24

6

Mizuki Noda

2,781

3.13

1,722

1.94

Fiscal year

From April 1 through March 31 of the following year

7

SSBTC Client Omnibus Account (Standing proxy: The Hongkong andShanghai Banking Corporation Limited, Tokyo Branch, Custody Service)

Ordinary General Meeting of
Shareholders

June each year

8

State Street Bank and Trust Company 505234 (Standing proxy: Mizuho
Bank, Ltd., Settlement & Clearing Services Division)

1,479

1.66

9

DANOX Co., Ltd.

1,050

1.18

10

Kazue Horiuchi

965

1.08

Date of record of the Ordinary
March 31 each year
General Meeting of Shareholders
Date of record for dividends ofsurplusYear-end dividend: March 31 each year
Interim dividend: September 30 each year

* OBIC held 10,919 thousand shares of common stock in treasury* Numbers of shares stated above include shares held in trust as follows:

(thousand)

The Master Trust Bank of Japan, Ltd.

14,144

Custody Bank of Japan, Ltd.

6,337

INTEGRATED REPORT 2023

26

OBIC Co., Ltd.
OBIC Co., Ltd. Headquarters
OBIC Bldg., 2-4-15 Kyobashi, Chuo-ku, Tokyo 104-8328
TEL 03-3245-6500

OBIC website
www.obic.co.jp/e/Securities Code: 4684