Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2022
(April 1, 2021 through September 30, 2021)(Prepared pursuant to Japanese GAAP)All financial information has been prepared in accord with accounting principles generally accepted in Japan.
This is a partial English translation of the original Japanese-language document. All information pertains to consolidated
results unless otherwise noted. Information on the basis of presentation of consolidated financial statements does not appear inthis translation.
November 5, 2021
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:TIS Inc.
The First Section of the Tokyo Stock Exchange3626
https://www.tis.com/
Yasushi Okamoto, President
Masahiro Hiwasa, Department Manager of Finance & Accounting Dept., Corporate
Planning SBU.
+81 3-5337-4569

Scheduled dates
Submission of quarterly report:
Commencement of dividend payments:

November 11, 2021
December 10, 2021

Supplementary materials to the quarterly results:
Quarterly results presentation held:

Available
Yes (targeted at institutional investors and analysts)
Figures in millions of yen are rounded down to the nearest million

1. Consolidated Results for the First Half of the Fiscal Year Ending March 31, 2022
(April 1, 2021 – September 30, 2021)(1) Consolidated Financial Results

Percentages indicate year-over-year changes
Net sales

Operating income

millions of yen%

millions of yen%

First Half, FY2022
234,332
10.9
23,866First Half, FY2021
211,308-2.3
18,211
Note: Comprehensive income: First Half, FY2022: 24,405 million yen (54.0%);
Net income
per share – basic
First Half, FY2022
First Half, FY2021

Net income attributableto owners of the parent
company

Recurring profit
millions of yen%

31.1
24,09956.6
15,521-4.7
15,392-23.1
10,277First Half, FY2021: 15,846 million yen (41.6%)

Net income
per share – diluted

yen

yen

61.88
41.00

-

(2) Consolidated Financial Position
Total assets
millions of yen

millions of yen

Net assets
millions of yen

Equity ratio%

End of First Half, FY2022
456,630
293,02662.2
451,072
279,42960.0
End of FY2021
For reference: Total equity: End of first half, FY2022: 283,919 million yen End of FY2021: 270,481 million yen*Total equity = Shareholders’ equity plus total accumulated other comprehensive income

%

51.0
-22.5

2. Cash Dividends for Shareholders of Common Stock
Cash dividends per share
Record date or
periodEnd-Q1End-Q2yen

End-Q3yen

11.00
FY202113.00
FY2022
FY2022(forecast)
Note: Revisions from the latest release of dividends forecasts: None

Year-end

Total

yen

yen

-

24.00

35.00

yen

-

27.00

40.00

3. Forecast of Consolidated Results for FY2022 (April 1, 2021 – March 31, 2022)

Net sales

Full FY2022(year ending Mar. 31, 2022)

Operating income

Percentages indicate year-over-year changes
Net income
attributable to
Net income per
Recurring profit
owners of the parent
share – basic
company

millions of yen%

millions of yen%

millions of yen%

millions of yen%

yen

480,000

7.1

52,00013.7

52,00032.5

38,00037.2

151.94

Notes:(1) Revisions from the latest release of earnings forecasts: Yes(2) The forecast of consolidated results may be revised depending on when the novel coronavirus outbreak comes to an end.

※ Notes(1) Material reclassifications of subsidiaries during the period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None
Exclusions: None
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock):
End-First Half, FY2022 (September 30, 2021):
251,160,894 shares
End-FY2021 (March 31, 2021):
263,367,294 shares
2) Treasury stock as of period-end:
End-First Half, FY2022 (September 30, 2021):
1,599,487 shares
End-FY2021 (March 31, 2021):
12,595,655 shares
3) Average number of shares (during the respective six-month period):First Half, FY2022 (ended September 30, 2021):
250,839,654 sharesFirst Half, FY2021 (ended September 30, 2020):
250,666,830 shares
Note: Treasury stock includes the number of the Company’s own shares held by TIS INTEC Group Employees’
Shareholding Association Trust and the Board Incentive Plan (BIP) Trust.

Quarterly review status
These materials are not subject to the quarterly review procedures to be conducted by certified public accountants or an audit
firm.
Caution on Forward-Looking Statements and Other Important Matters
At a Board of Directors meeting held on May 12, 2021, TIS Inc. (TIS) resolved to acquire its own (treasury) shares inaccordance with Article 156 of the Companies Act of Japan, as applied pursuant to Paragraph 3, Article 165 of said Act.
Accordingly, “Net income per share – basic” in the Forecast of Consolidated Results for FY2022 has been presented taking
into account the effect of this acquisition of treasury shares.
This report contains forward-looking statements that reflect TIS’s plans and expectations based on information available to
TIS at the time of preparation and on certain other information TIS believes to be reasonable. These forward-looking
statements are not guarantees of future performance, and actual results, performance, achievements or financial position may
differ materially from those expressed or implied herein due to a range of factors. For the assumptions underlying the forecasts
herein and other notice on the use of earnings forecasts, refer to “(3) Consolidated Earnings Forecast and Caution on ForwardLooking Statements” in the “1. Results of Operations” section on page 7 in the Accompanying Materials.

Accompanying Materials – Contents

1. Results of Operations

2(1) Analysis of Consolidated Operating Results

2(2) Analysis of Financial Condition

6(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements

7

2. Consolidated Financial Statements

8(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income and Comprehensive Income

10

Consolidated Statements of Income
For the First Half

10

Consolidated Statements of Comprehensive Income
For the First Half

11(3) Notes on the Consolidated Financial Statements

12(Notes on the Going-concern Assumption)

12(Notes on Significant Changes in the Amount of Shareholders’ Equity)

12(Changes in Accounting Policies)

12(Significant Subsequent Events)

13

3. Other Information

14

-1-

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first six months of fiscal 2022 (April 1, 2021 – September 30, 2021), the Japanese economy continued
to face difficult conditions due to the impact of the spread of the novel coronavirus (COVID-19). The outlook
too has been clouded by a variety of factors, and there is still a need to carefully monitor the impact ofJapanese/global trends in infections and fluctuations in financial markets.
The IT services industry, to which the TIS INTEC Group (“the Group”) belongs, is expected to see further
increases in IT investment demand as the transformation of business processes and business models utilizing
digital technologies progresses globally. This is demonstrated by factors such as the Bank of Japan’squarterly Short-term Economic Survey of Enterprises in Japan (September 2021), which showed a 15.1%
year-on-year increase in company software investment plans (all industries, including financial institutions).
In this environment, the Group launched its new three-year medium-term management plan (2021-2023) infiscal 2022 for further growth in achieving “Group Vision 2026” and is working to accelerate businessrestructuring with enhancing provided digital transformation value as the keystone.
Consolidated net sales for the Group in the first six months of fiscal 2022 rose 10.9% year on year to¥234,332 million. Operating income rose 31.1% to ¥23,866 million, recurring profit rose 56.6% to ¥24,099
million, and net income attributable to owners of the parent company rose 51.0% to ¥15,521 million.
Sales were up sharply year on year as a result of meeting the demand for IT investment, such as customers’
demand for digital transformation and the contribution of the results of companies that became subsidiaries in
the previous fiscal year. As for operating income, the gross profit ratio rose 1.9 percentage points to 25.7%
over the previous year’s level due to factors such as the provision of high value-added businesses and thepromotion of productivity improvement measures, in addition to the increase in income due to higher
revenue. This offset the increase in selling, general and administrative expenses, which were mainly due toinvestments such as office reform costs that will contribute to future growth. As a result, operating income
was higher, and the operating income ratio increased 1.6 percentage points year on year to 10.2%. The yearon-year increase in recurring profit and net income attributable to owners of the parent company reflected thegrowth in operating income as well as improved non-operating income.
From the start of the first quarter of fiscal 2022, the Accounting Standard for Revenue Recognition, etc.,
has been applied, but the impact on overall results has been minimal.
Segment results for the period are as follows. The sales figures for each segment include inter-segment sales.
1) Service IT BusinessThis segment comprises Group businesses providing knowledge intensive IT services that leverage theGroup’s service and industry know-how to create universalized, template-oriented solutions for its
customers (including default configuration and ERP).
Segment sales in the first six months of fiscal 2022 totaled ¥74,551 million, up 18.6% year on year, andoperating income increased 86.9% to ¥4,807 million. In addition to capturing demand for IT investments inareas such as settlement solutions and marketing, which is growing with the advance of digitalization, thecontribution from the results of companies that became subsidiaries in the previous fiscal year meant ayear-on-year increase in both sales and profits, with the operating income ratio increasing 2.3 percentage
points year on year to 6.4%.
2) BPOThis segment comprises businesses that leverage the Group’s extensive service and IT know-how to deliver
business process outsourcing (BPO) services, including marketing and sales services and office andcontract operations.
Segment sales in the first six months of 2022 totaled ¥18,025 million, up 5.6% year on year. Operating
income expanded 17.2% to ¥1,535 million. Steady growth in response to growing outsourcing needs ofcompanies in the insurance industry and other sectors led to an increase in both sales and profits year on
year and pushed up the segment’s operating income ratio to 8.5%, a year-on-year improvement of 0.8
percentage points.

-2-3) Financial IT BusinessThis segment comprises businesses that leverage business and operating know-how specific to the financial
sector to raise the value-added of clients’ operations, expand their use of IT, and provide support tooperations using IT.
Segment sales in the first six months of fiscal 2022 totaled ¥60,528 million, up 12.9% year on year, andoperating income increased 17.2% to ¥7,822 million. Expansion of IT investment by credit card companies
and other core clients led to an increase in both sales and profits year on year, with the operating income
ratio increasing 0.4 percentage points year on year to 12.9%.
4) Industrial IT BusinessThis segment’s businesses leverage business and operating know-how specific to non-finance industries toraise the value-added of clients’ operations, expand their use of IT, and provide support to operations using
IT.
Segment sales in the first six months of fiscal 2022 totaled ¥93,677 million, up 2.4% year on year, andoperating income increased 20.6% to ¥9,405 million. Along with the contribution of the results ofcompanies that became subsidiaries in the previous fiscal year, there was steady IT investment by coreclients in the manufacturing/service industries, and IT investment demand from regional and small andmedium-sized companies, which had been subdued due to the spread of COVID-19, started to recover. The
impact of lower sales with the application of the Accounting Standard for Revenue Recognition, etc. wastherefore offset, leading to a year-on-year increase in both sales and profits, with the operating income ratio
increasing 1.5 percentage points year on year to 10.0%.
5) Other
The Other segment includes a number of ancillary businesses that provide information systems to clients.
Segment sales in the first six months of fiscal 2022 totaled ¥4,343 million, up 5.6% year on year,
operating income was up 11.4% to ¥457 million, and the segment’s operating income ratio was 10.5%, up
0.5 percentage points.
As noted above, the Group launched its new three-year medium-term management plan (2021-2023) infiscal 2022 as a second step towards realizing its “Group Vision 2026”. Under the slogan of “Be a DigitalMover 2023”, the Group is increasingly focusing on Strategic Domains* and is working to acceleratebusiness restructuring, with enhancing provided digital transformation value as the keystone.
*Note: “Strategic Domains” are the four business domains designated to be built into the corebusinesses of the Group by 2026, as set forth in Group Vision 2026.
In fiscal 2022, the first year of the medium-term management plan (2021-2023), the Group willenergetically implement various measures in line with the following Group management policies.
Group Management Policies for Fiscal 2022
(1) Promote efforts in improving value provided to society and corporate value by sustainability management(2) Enhance efforts in achieving high value-added by innovating production and improving provided digitaltransformation value(3) Invest in growth for enhancing the ability to provide digital transformation value while maintaining fiscal
soundness(4) Promote a growth strategy aimed at becoming a top-class IT group in the ASEAN region and establish
governance(5) Continuously enhance employee job satisfaction and promote the growth of our highly-diversified humanresources to drive the shift to digital transformation
The status of issues and initiatives in the Group management policies are presented below.
1) Promote efforts in improving value provided to society and corporate value by sustainability-3-management
The Group has established a system for advancing sustainability management by means such as
setting up a Corporate Sustainability Committee, identifying materiality, and identifying four societal
issues to resolve. In the medium-term management plan (2021-2023), the Group will promote theachievement of priority management resource distribution in business activities that contribute tosolving societal issues identified. And it will advance ESG, promoting contribution to a decarbonized
and recycling-oriented society, sustained improvement of stakeholder engagement, and pursuit ofcorporate governance that enhances trust from society.
At the same time, the Group will continue strategic brand activities in an effort to increase corporate
value and consumer recognition. As a result of continuing to place commercials on television andarticles in advertising materials, the consumer recognition of the Group increased and resulted in
improved employee satisfaction and hiring capabilities, demonstrating certain results based on brandactivities.
The Group has been implementing initiatives related to high-priority topics such as environment andhuman rights. For example, we made efforts such as establishing the Basic Direction on Corporate
Sustainability and a human rights policy as well as expressing support for the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD). The Group will continue to deepen its
sustainability management, aiming to contribute to a sustainable society and actualize continuous
improvement in corporate values.
Also, the Group has opted to apply to list on the Prime Market to be newly established following themarket restructuring that the Tokyo Stock Exchange is scheduled to implement in April 2022.
2) Enhance efforts in achieving high value-added by innovating production and improving provided
digital transformation value
The Group is keenly aware of the social responsibility involved in providing information systems associal infrastructure and is continuing to work on improving quality, productivity, and technologicalcapabilities. From the perspective of innovating production, in particular, we have continuously madeefforts to eliminate unprofitable projects, carry out reforms aimed at further improving the profitabilityof enhancement areas, and promotion of offshoring. Currently, we are also continuing efforts toward
improving the profitability of the entire Group by means such as going ahead with the deployment of“Trinity Ver. 2” as a quality management system that supports service-type business.
In order to fulfill the mission in the Group’s basic philosophy, “OUR PHILOSOPHY”: “To brightly
color the future as a mover that utilizes digital technology”, we are aiming to harness digital technology
to provide end-to-end value relating to digitalization-related issues, from strategy proposals through tothe provision of solutions to customers and wider society, and we are going forward with efforts toachieve high value-added by improving provided digital transformation value. One example is being
selected as a “DX certified business operator” by the Ministry of Economy, Trade and Industry in May
of 2021. We were selected in recognition of the Group’s initiatives up to now relating to digitaltransformation for customers and ourselves that meet the certification standards of the Ministry of
Economy, Trade and Industry, and appropriate disclosure of information for stakeholders.
In the settlement business field, a Group strength, we will a establish credit card processing service
where systems centering on business processing services related to member management and affiliate
shop management are provided as a service and expand lending services where systems for loans andother financial service operators are provided on the cloud. Additionally, we will enhance data analysis
functions that connect to these and heighten functionality. And by making microservices out of thosefunctions for each application and purpose and promoting the provision of flexible services that are
responsive to change, we will improve our ability to provide comprehensive services in thedigitalization of settlements and finance, with the aim of further enhancing our strengths and expanding
our business domains.
In particular, we will use the credit card processing service scheduled to launch in the first half offiscal 2023 to ensure we meet the growing demand for comprehensive processing services, including
finance functions. Additionally, we are rolling out business in all areas of the settlement business to-4-

cover all aspects of digitalized payments, including digital accounts, mobile wallets, service
coordination, security, and data utilization.
Also, to “further strengthen the frontline” where we are connected with clients, we are promoting
strategic management resource placement and human resources development to enhance consulting
functions in upstream areas such as strategy proposal and issue/solution identification in order topromote digital transformation. As part of these efforts, we are coordinating with Miotsukushi Analytics
Co., Ltd., a subsidiary consolidated in August 2020 with strengths in data analysis/AI, to strengthen
value provision for the digital transformation of core clients. We have also set up a DX Strategy Human
Resources Committee and are engaging in a number of related initiatives, including commencing
consideration and discussions of concrete measures and policies. We plan to proactively re-assign
personnel and recruit mid-career personnel experienced in this field to increase the number of digitaltransformation consultants by about 50 and establish a 300-strong team by the end of fiscal 2022.
3) Invest in growth for enhancing the ability to provide digital transformation value while maintaining
fiscal soundness
To achieve continuous corporate growth and corporate value enhancement in this operating
environment with increasing uncertainties as an even more competitive corporate group, we willproactively make growth-oriented investments in four areas (software investment, human resources
investment, R&D investment, M&A and capital tie-ups) and further advance investment management togain appropriate returns. In the three years of the medium-term management plan (2021-2023), theGroup’s policy is to conduct investment for growth totaling approximately ¥100 billion and promote
improving provided digital transformation value and acquiring new technologies, and we are currently
incrementally expanding our investments.
Also, the Group is currently considering optimal group structures from the perspective of promoting
business focus on the four strategic domains targeted in Group Vision 2026. As part of this, we havedecided to transfer all of the shares of the consolidated subsidiary, Chuo System Corporation, to outside
the group and have concluded a share transfer agreement with the counterparty to the transfer. As part ofpromoting various measures aimed at structural transformation, we will continue to optimize the groupstructure and revise the business portfolio, appropriating the funds gained from these efforts to invest in
growth in accordance with the cash flow allocation policy in our financial investment strategy.
4) Promote a growth strategy aimed at becoming a top-class IT group in the ASEAN region and establish
governanceBy strengthening the partnerships and alliances in ASEAN nations established in the previous
medium-term management plan and utilizing cutting-edge technologies and disruptive technologies, theGroup will globally expand its “IT Offering Service” and “Frontier Market Creation Business” as set
forth under Strategic Domains.
In this environment, we will create yet more business synergies with MFEC Public Company
Limited, a leading player in providing IT solutions for enterprises in Thailand that became a subsidiaryof TIS from October 2020, with the aim of enhancing our competitiveness and expanding business.
Moreover, we will further strengthen the strategic partnership with Grab Holdings Inc., which
operates the largest digital payment platform in Southeast Asia, collaborating on enhancing digital
payment infrastructure and developing new settlement technologies in Southeast Asia and Japan.
In addition, we are strengthening alliances with leading technology companies in China, including as
forming a capital and business partnership with Hangzhou Qulian Technology Co., Ltd., a leading
blockchain technology company in China.
5) Continuously enhance employee job satisfaction and promote the growth of our highly-diversified
human resources to drive the shift to digital transformation
To continue to enhance the value exchange between employees and Group companies, the Groupwill promote a human resources strategy focusing on diversification and advancement of individuals.
We will take on the challenge of enhancing engagement with employees through the creation of anenvironment and organizational culture where all members of a diverse workforce can thrive,-5-

promotion of next-generation workstyle reforms looking towards the “new normal,” and advancementof human resource portfolio management by the digitalization of a human resources database.
Additionally, to further accelerate structural transformation, we will make an effort to strategicallysecure and foster advanced human resources in areas such as management, consulting, global business,and service business and will place them optimally.
For example, we have established a teleworking program to promote flexible working styles for
employees, and a growth support program that places value on autonomous career development, and are
expanding and enhancing our life stage support program aimed at promoting self-actualization andsupporting employees through various stages of life.
In addition to the abovementioned initiatives and in line with the Group’s policy of flexibly managing its
capital position to enable flexible responses to its operating environment while continuing to enhanceshareholder returns and capital efficiency, we conducted a buyback of a total of 1,430,400 shares in
September 2021 (total acquisition cost: ¥4,470 million) and retired almost all treasury shares (a total of
12,206,400 shares; the equivalent of 4.6% of issued shares prior to retirement).
(2) Analysis of Financial Condition(Assets)
Consolidated total assets as of the end of the second quarter came to ¥456,630 million, an increaseof ¥5,557 million from ¥451,072 million at the end of the previous fiscal year.
Current assets totaled ¥221,653 million, down from ¥229,965 million at the end of the previous
fiscal year, primarily owing to a ¥6,665 million decrease in notes and accounts receivable, andcontract assets.
Note that, as described in 2. Consolidated Financial Statements, (3) Notes on the Consolidated
Financial Statements (Changes in Accounting Policies), as a result of the application of the
Accounting Standard for Revenue Recognition, etc., “notes and accounts receivable” shown under“current assets” in the consolidated balance sheets for fiscal 2021 have been reclassified as “notes
and accounts receivable, and contract assets” from the first quarter of fiscal 2022.
Fixed assets totaled ¥234,976 million, up from ¥221,106 million at the end of the previous fiscal
year, due mainly to a ¥9,865 million increase in investment securities.
(Liabilities)
As of the end of the second quarter, total liabilities amounted to ¥163,603 million, an ¥8,038 million
decrease from ¥171,642 million at the end of the previous fiscal year.
Current liabilities totaled ¥110,440 million, up from ¥100,915 million at the end of the previous
fiscal year, primarily owing to a ¥20,133 million increase in short-term borrowings.
Non-current liabilities amounted to ¥53,162 million, down from ¥70,726 million, primarily owing
to a ¥20,855 million decrease in long-term debt.
(Net assets)
As of the end of the second quarter, total net assets amounted to ¥293,026 million, a ¥13,596 million
increase from ¥279,429 million at the end of the previous fiscal year. The increase was primarily
impacted by a ¥9,350 million increase in retained earnings from net income attributable to owners of
the parent company.

-6-(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements
The Group’s consolidated business performance in the first half of fiscal 2022 was significantly stronger thanforecasts. The transfer of shares of a consolidated subsidiary is also expected to result in the posting ofextraordinary income of approximately ¥6 billion in the third quarter. In light of this, the consolidated
earnings forecast for fiscal 2022, released on May 12, 2021, has been revised as outlined below. We willcontinue to expand our business by accurately responding to customers’ demand for digital transformation.
Furthermore, we will provide high value-added business and promote productivity enhancement measuresand the like while sustaining our investment in future growth with the aim of achieving even higher
profitability and achieving the targets in our revised full-year plan.
Note that this forecast is subject to change depending on the situation with the COVID-19 pandemic,
which remains highly uncertain.
Revised consolidated earnings forecast for fiscal 2022

Net sales
millions of yen

Previous forecast(A)
Revised forecast(B)
Change (B-A)% change(Reference)
FY2021 results

Operating income

Recurring profit

Net income
attributable toowners of theparent company

millions of yen

millions of yen

millions of yen

Net income
per share – basic
yen

470,000

48,50048,50032,200128.78480,000

52,00052,00038,000151.9410,000

3,500

3,500

5,800

－

2.1

7.2

7.2

18.0

－

448,383

45,74839,257

27,692110.51

Note that the Group’s medium-term management plan (2021-2023) includes a basic shareholder return policythat targets a total return ratio of 45%. Due to implementation of the abovementioned share buyback, andbased on the current consolidated earnings forecast and dividend forecast, the total return ratio for fiscal 2022
is expected to be 38.2%. Still, the effective total return ratio is expected to be 43.4% based on the Group’s
policy of using income acquired through operating activities, which is not affected by temporary gains orlosses, as the capital for returning profits to our shareholders, in accordance with our basic policy.
*Total return ratio: The ratio of the combined value of dividend payments and share buybacks versus net
income attributable to owners of the parent company-7-

2. Consolidated Financial Statements(1) Consolidated Balance Sheets
As of March 31, 2021

Items
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Notes and accounts receivable, and contract assets
Lease receivables and lease investment assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Leased assets, net
Other property and equipment, net
Total property and equipment
Intangible assets
Software
Software in progress
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-8-

As of Sep. 30, 2021

millions of yen

millions of yen

83,318111,356

82,213

‒
4,641
286
2,970
2,979
237
24,465(290)
229,965

104,690
4,201
267
2,824
1,354
193
26,193(285)
221,653

34,258
6,798
9,682
4,321
9,135
64,19736,45010,403
9,682
4,144
7,325
68,006

15,463
12,334
1,593
1,757
31,148

15,115
12,392
1,492
1,637
30,63786,005
6,375
8,443
27,505(2,567)125,760
221,106
451,072

95,8706,509
7,821
28,696(2,565)
136,332
234,976
456,630‒

As of March 31, 2021

Items
Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Income taxes payable
Accrued bonuses to directors and employees
Provision for loss on order received
Provision for office restructuring cost
Other allowances
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities from revaluation of land
Accrued retirement benefits to directors
Other allowances
Net defined benefit liability
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-

As of Sep. 30, 2021

millions of yen

millions of yen

26,467
5,793
8,829
15,405938
413
109
42,958100,915

21,58325,926
6,596
16,134890
118
39,190110,440

37,326
4,628
1,023
272
5
169
12,895
6,095
8,311
70,726
171,642

16,470
4,210
4,380
272
5
127
12,882
6,736
8,075
53,162
163,603

10,001
84,337173,230(18,812)
248,756

10,00164,960
182,581(3,570)253,972

25,51333,194
4(2,672)(264)(316)
29,946
9,106
293,026
456,630‒(2,672)(667)(449)
21,724
8,948
279,429451,072‒

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Half, FY2021
First Half, FY2022
Items(Apr. 1 – Sep. 30, 2020) (Apr. 1 – Sep. 30, 2021)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expense
Interest expenses
Equity in losses of affiliated companies
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on valuation of investment securities
Impairment loss
Other
Total extraordinary loss
Income before income taxes
Income taxes: current
Income taxes: deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent company- 10 -

millions of yen

millions of yen

211,308
161,048
50,26032,04818,211

234,332
174,072
60,25936,39323,866

127
675
376
1,179

206
644
521
1,372

134
3,722
140
3,998
15,392

163
650
325
1,139
24,099

3,660
2
3,662

0
5
5

247
625
701
78
1,653
17,401
6,114
713
6,827
10,573296
10,277

149
133
169
80
533
23,572
6,909
488
7,398
16,173652
15,521

Consolidated Statements of Comprehensive Income
First Half, FY2021
First Half, FY2022(Apr. 1 – Sep. 30, 2020) (Apr. 1 – Sep. 30, 2021)

Items

millions of yen

Net income
Other comprehensive income
Net unrealized gains on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of equitymethod affiliates
Total other comprehensive income
Comprehensive income(Composition)
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to noncontrolling interests- 11 -

millions of yen

10,573

16,173

5,091
(61)
311

7,681
9
134
133

(68)

272

5,272
15,846

8,231
24,405

15,49423,743

351

661

‒

(3) Notes on the Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
At a Board of Directors meeting held on September 1, 2021, TIS resolved to retire 12,206,400 shares oftreasury stock on September 28, 2021, pursuant to the provisions of Article 178 of the Companies Act. This
resulted in a 19,363 million yen decrease in both additional paid-in capital and treasury stock.

(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., have been
applied from start of the first quarter of fiscal 2022. Accordingly, revenue is recognized when control of thepromised goods or services has been transferred to the customer at the amount expected to be received in
exchange for those goods or services. The main changes that have been made are as follows.
(1) Revenue recognition pertaining to agent transactions
For transactions in which the Group’s role in providing goods or services to the customer is that of an agent,
the Group previously recognized revenue at the total amount of compensation received from the customer.
However, from the first quarter of fiscal 2022, the Group recognizes revenue on a net basis, which is theamount received from customers less the amount paid to suppliers.
(2) Revenue recognition pertaining to cost recovery method
Previously, the completed-contract method was applied to transactions in which performance obligations areto be satisfied over a certain period of time and it was deemed that reasonable estimation of the degree ofcompletion was not possible. From the first quarter of fiscal 2022, the Group recognizes revenue using thecost recovery method when it is probable that the costs incurred will be recovered.
The Group’s application of the Accounting Standard for Revenue Recognition, etc., is in accordance withthe transitional treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of retrospectively applying the new accounting policy prior to thebeginning of the first quarter of fiscal 2022 was reflected from the retained earnings at the beginning of thefirst quarter of fiscal 2022. The new accounting policy was then applied from the balance of retained earnings
at the beginning of the first quarter.
As a result, net sales and cost of sales in the first half of fiscal 2022 decreased ¥1,983 million. The impact
on the balance of retained earnings at the beginning of fiscal 2022 resulting from these changes isinsignificant.
As a result of application of the Accounting Standard for Revenue Recognition, etc., “notes and accounts
receivable” presented under “current assets” in the consolidated balance sheet for fiscal 2021 are shown as
being included in “notes and accounts receivable, and contract assets” from the first quarter of fiscal 2022.
Note that, in accordance with transitional treatment set forth in Paragraph 89-2 of the Accounting Standard
for Revenue Recognition, fiscal 2021 statements have not been reclassified to conform to the newpresentation method.

(Application of Accounting Standard for Fair Value Measurement, etc.)
Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019), etc., have been
applied from start of the first quarter of fiscal 2022. In accordance with transitional treatment set forth inParagraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Group has opted to apply the- 12 -

new accounting policies set forth by the Accounting Standard for Fair Value Measurement, etc.
prospectively.
Thus, the Group has decided to use the fair value calculated using inputs adjusted for quoted market prices
for identical assets in active markets available to the Group at the date of calculating fair value as thequarterly consolidated balance sheet amount. Previously, the acquisition cost of convertible bonds with stockacquisition rights, which were considered to be financial instruments for which it was extremely difficult todetermine market price, was the amount used in the quarterly Consolidated Balance Sheets.

(Significant Subsequent Events)(Sale of subsidiary shares)
The Company’s Board of Directors passed a resolution on October 12, 2021, to sell all of the shares of Chuo
System Corporation, a wholly owned consolidated subsidiary of the Company, to Chuo System Holdings Co.,
Ltd. and concluded a share transfer agreement on the same day.
All shares are scheduled to be sold on November 18, 2021. With this share transfer, Chuo System
Corporation will be excluded from the Company’s scope of consolidation in the third quarter.
(1) Reason for the sale of shares
The Group seeks to achieve sustained corporate growth and corporate value improvement through achieving
the aims of Group Vision 2026 and is bolstering its focus on four strategic domains.* The Group is currently
considering optimal group structures as part of efforts to achieve the structural changes outlined in theGroup’s medium-term management plan (2021-2023), and the decision to conduct this share transfer was
made in light of this.
* Four business domains designated to be built into the core businesses of the Group by 2026, as set forthin Group Vision 2026.
(2) Name of counterparty to sale
Chuo System Holdings Co., Ltd. (a special purpose company with capital support from BCM-V Investment
Limited Partnership)(3) Date of saleNovember 18, 2021 (scheduled)(4) Name of subsidiary, business activities, and details of transactions with the Company
November 18, 2021 (scheduled)
Name: Chuo System Corporation
Business activities: Business application development/operational management solutions
Details of transactions with the Company: Outsourced system development(5) Number of shares to be sold, sale value, gain/loss on the sale, and percentage of ownership after the sale
Number of shares to be sold: 139,000
Gain/loss on sale: While the net assets of Chuo System Corporation as of the date of the sale are yet to be
determined, the Company expects to post extraordinary income of approximately \6billion as gain on the sale of subsidiary shares in the third quarter.
Percentage of ownership after the sale: -%The Company will refrain from disclosing the sale value due to the confidentiality obligations in the sharetransfer agreement. The Company deems the sale value, which was determined through negotiation with thecounterparty to the sale, to be a fair value.

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3. Other Information
INTEC Inc., a consolidated subsidiary of the Company, is currently in litigation with Mitsubishi ShokuhinCo., Ltd., which filed a claim for compensation in connection with services including systems development
provided by INTEC Inc. (Amount of compensation demanded: 12,703 million yen; date the complaint wasreceived: December 17, 2018).

- 14 -