September 27, 2018
(Translated from the Japanese original)
Company Name: TIS Inc.
Toru Kuwano, Chairman, President andRepresentative:
Representative Director
Stock Listing:First Section of the Tokyo Stock Exchange
Stock Code:3626
Masakazu Kawamura, Department Manager
Contact:of Corporate Management Dept.
Phone:+81-3-5337-4569 (in Japan, 03-5337-4569)
Notice Regarding Booking of Extraordinary Loss and Extraordinary Income
The Board of Directors at TIS Inc. (hereafter, “TIS” and “the Company”) resolved at its meeting on
this date to carry some of the expense burden related to data center migration and to sell investment
securities. As a result, the Company will book extraordinary loss as well as extraordinary income.
Details are provided below.
Details
1. Reason for carrying some of the expense burden related to data center migration and details
about extraordinary loss
(1) Reason for carrying partial burden of expenses related to transfer of data centers
As described in “Notice Of Extraordinary Loss and Extraordinary Income,” dated September 30,
2015, management reviewed the future direction of TIS’ data center business, decided on a plan
to integrate data center operations in Tokyo and Osaka, and began rolling out measures,
including suggestions to user companies that they migrate to new data centers, as the Company
moved toward the eventual closure of old data centers where equipment was becoming outdated.
At old data centers in the Tokyo area, a particularly vital component of the migration
strategy is the migration of special customers whose usage of data center services is large-scale.
TIS pursued discussions with these customers, seeking to shape a consensus on such factors as
the timing of migration, and realized during the process of these discussions that data centermigration-related expenses associated with these special customers would be enormous. It wasimperative that the Company avoid issues that would erode future profitability, namely, theappearance of additional expenses accompanying a delay in the closure of old data centers. To
stay on schedule, it was decided that TIS would carry some of the expense burden related to datacenter migration for these special customers and book the amount under extraordinary loss.
This will cause a temporary expense burden, but after considering the overall picture, notjust the fact that migration ensures that TIS maintains existing business, including continued useof TIS’ data centers by these special customers, but also potential requests for services associatedwith migration paralleling the stronger relationship that TIS develops through the discussion
process with each of these special customers as well as expanded business opportunities forservices in new fields where aggressive IT investment is anticipated, then the contribution tohigher corporate value over the medium to long term is worth carrying some of the expenseburden for these special customers.
(2) Details about extraordinary loss
Expenses related to data center migration: ¥8.8 billion
12. Reason for sale of investment securities and details about extraordinary income(1) Reason for sale
As part of efforts to utilize corporate assets more efficiently and improve financial footing,management decided to sell investment securities, with gains from the associated sale to bebooked under extraordinary income.
(2) Sold assets
Listed securities: One issue(3) Date of sale
September 27, 2018(4) Details of extraordinary income
Gain on sale of investment securities: ¥10.0 billion
3. Outlook
The impact of extraordinary loss and extraordinary income booked in this situation was considered
and, given the fact that TIS’ consolidated performance is moving generally in line with targets
announced on May 10, 2018, no changes will be made to the consolidated forecast at this time.
Reference: TIS’ Consolidated Performance Forecast (Announced May 10, 2018) andPrevious Fiscal Year’s Actual Results(Millions of yen)
Net sales

Operating income

Recurring profit

Net income
attributable to parentcompany

Fiscal 2019 consolidated forecast(Year ending March 31, 2019)

414,000

35,00035,00023,300

Fiscal 2018 (actual)(Year ended March 31, 2018)405,648

32,74332,795

20,620

END2