Mid-term Business Plan
2028
FUJI SOFT INCORPORATED(Code: 9749 TSE Prime Market)
February 14th, 2024

Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

▍Mid-term Business Plan 2028 in the timeline

VisionOur goal is to become the leading company in
IT/OT system, software and service provider tocontribute to our customers and society

1 trillion JPY
company2028

Mid-term Business Plan 2028 (2024-2028)“Steady Growth, Innovation, and Bases for the Future”
Focus on Growth and Profitability
New Plan2024

Midterm Business Plan (2022-2024)
Leading DX from both IT and OT with digital technologies:
better life for customers, innovation for society

Nov: Tender offers wholly acquire the four listed subsidiaries

2023

2022

Feb: Announcement of the “Future Vision” in the Corporate Value Committee FY2022 Activity
Status Presentation
Dec: Five new outside directors proposed by the company were appointed at the extraordinary
general meeting of shareholders. New management teams starts

Nov: Disclosed a interim report on the progress of the Corporate Value Committee
June: Launched the Corporate Value Committee in order to re-evaluate business challenges

Copyright ©2024 FUJISOFT INCORPORATED, All rights reserved.
Copyright ©2024 FUJISOFT INCORPORATED, All rights reserved.

22▍Performance over the last 10 years
As a result of the efforts to strengthen business to become a leading company in the industry, the Company have doubled sales over the past 10
years and have succeeded in reaching the 300 bn JPY level of sales, which is considered the standard for semi -major SIer company.
The Company have made significant progress in enhancing strength, acquiring new customers, and securing human resource to dev elop the cycles
necessary for further growth
Operating profit(100 mn JPY)

Sales
(100 mn JPY)

Mid-term
plan

2023
2022

9.9%(2.8x)

168

2021

2021

The Mid-term Business Plan was established amid the post-COVID the uncertain outlook for the market. To confront various changes in themarket environment (e.g., U.S. and China tensions, weak yen), the plan focuses on strengthening profitability and improving capital efficiency.
With this transition, the Company have achieved most of the 3-year plan quota within 2 years

2,788

Operating profit
183
CAGR

2022

2,579

Maintaining growth during the COVID pandemic
Although the impact of COVID put a brake on demand in the contracted development field, the Company maintained its sales and profit growthtrend by capturing changes in demand such as remote work. The Company have allocated personnel in response to changes in the market
environment

2,410

2020

160

2020
2019

2,311

133

2019
2018

2016
2015

84

2014

83

2015
2014
2013

1,485

0

100

200

300

400

Recovering from the 2008 financial crisis

1,415

Revenues and profits recovered from a downward trend to a base of increased revenues and profits. Improvement of employee benefits over theyears, which had been reduced due to the financial crisis. Focused on CRM (cloud, robotics, mobile, AutoMotive) as a future growth technology
field

1,382

73

2012

2012

In anticipation of a recovery in ICT demand, the Company changed its growth policy. Expecting a recovery in business, the Company quickly
developed new business structure which includes the hiring and training of more than 500 new graduates. Despite the increase in costs required
to increase personnel and upfront investments to cultivate customers and projects, the Company prepared to respond to the expected expansionof the market

1,537

77

2013

Scaffolding for Resurgence

1,642

88

2016

Proactive efforts to increase the number of employees have been successful, and the company has been able to respond to the expansion ofmarket demand and achieve growth and steady improvement in profitability. Continuous improvement of employee compensation has led to anincrease in market demand, the development and strengthening of human resources, and the ability to respond to a variety of projects and gain
more clients and their trust

1,808

97

2017

2017

Steady Growth

2,043

114

2018

Market Environment and Policies

Enhancing growth and profit by launching the Corporate Value Committee and proposing the Mid-term
Business Plan (2022-2024)

2,989

207

2023

Operating profit
margin (%)

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

3,200

**Figures for 2013/12 FY are based on a 12-month conversion due to achange in the fiscal year end

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▍Business bases and cycles
The Company has built a cycle and customer base, human capital base, and strategic partner base to support business expansion.

Building a cycle to get new customers anddeals for continued business expansion

Expanding
new clients

A cycle expands the base of customers and cultivating them in depth bystrengthening sales personnel, enhancing promotions, and expanding
sales of strategic products

Strengthening Customer Relationship
Evolving the relationship from an on-site contract development partner to a
management-level relationship

Cultivatecustomer
relationship

Accumulation and formalization of experiences
Response

Sales network

to support continued expansion
Formalize experience and wisdom accumulated through R&D and on-site
projects in the AIS-CRM field to create an environment in which the latest
technological trends and case studies can be made into knowledge andaccessed. Enhance HR and business capacity

Creating anewbusinessmodel

Customer
Base

Human
Capital Base
R&D/ Experience

Building an HR cycle for continued expansion

Strategic
Partner Base

programs, and on-site on-the-job training; continue to strengthen career
recruitment; expand the base of business partner employee participationand strengthen the business partner policy

Enhancing Strategic Partners

Developing New Customers
Challenge to build a newcooperative relationshipthat is not just aboutcommissioning

Develop a cycle of large-scale new graduate recruitment, various training

To increase corporate value and expand points of contact with customers,

Product
Service

HR Recruitment/
Development/ Business
Partner Policy

discover and collaborate with competitive services in Japan and overseas,

Strategic
Partner
Alliancebuild strategic relationships, and establish a cycle to expand sales

Development into new products and services
Creating a new product / service process by leveraging the enlarged
market strength
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▍Business Bases and Cycles: Results－Customer Base (FUJISOFT)
Our technological capabilities (cutting-edge technology, trouble prevention, and productivity improvement) and strengthened sale s force havecreated a cycle that enhances the customer base and cultivating in depth, resulting in larger projects and more direct busine ss (=Prime).

Prime Ratio

Major Customers* (2014=10)▶ The scale of projects undertaken has increased due
to enhanced customer cultivation.

▶ The percentage of prime deals also grew by morethan 10% compared to 2018
100%

CAGR

+10%

11.6％
27

85%

80%

79%

79%

2019

2020

82%

82%

2021

2022

75%

10

60%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2018

2023

※ Annual transaction amount of 1 bn JPY or more
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▍Business bases and Cycles results －HR Base (FUJISOFT)
Our human resource base, whether in terms of project management, expertise, or technology, has expanded significantly due to its extensive
in-house training curriculum, on-the-job training, community and conferences.

PM (# of personnel)
Number of certified in-house project
managers

CAGR

13.7％

1,773

Specialist (# of personnel)
Number of internal specialists
certified in operation and technology

AIS-CRM HR (# of personnel)
Number of technical strategy skill
holders (total number of personnel)

CAGR

CAGR

10.4％

12.9％

1,694

9,140

4,422
632
489

2013

2023

2013

2023

2017
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6▍Mid-term Business Plan (2022-2024) in retrospect
We have mostly achieved the 3-year plan target within 2 years. Operating income has increased by more than 20% over the past two years as aresult of our focus on improving profitability.

Net Sales (100 mn JPY)
Consolidated

Operating Profit (100 mn JPY)

Non-consolidated

3,500

3,150

3,000

2,989

2,788

3,000

Non-consolidated operating profit

Consolidated operating profit margins

Non-consolidated operating profit margins
8%

350

6.9%
300

2,579

Consolidated operating profit

6.5%

7%
6.8%

2,500

CAGR：7.7%
1,923

2,000

2,070

2,220

250

6.0%

200
168

CAGR：10.9%

150
100

CAGR：8.5％

500

6%
200

97

141

4%

154

3%

115

2%

50

CAGR：20.6％

1%

0

0

2021

2022

Results

2023

2024 (Forecast)

Forecast

Mid-termmanagement
plan target

5%

183

1,500

1,000

6.9%
220

207

5.5%

1,757

7.0%

6.6%

0%
2021

2022

2023

2024
(Forecast)

Results

Mid-termmanagement
plan target

Forecast

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▍Corporate Value Committee overview
Review Point• Solving governance issues in general,

GovernanceCommittee

Activities• Review of governance issues such as

including the governance of the Board of

optimal institutional design, review of board

Directors and optimizing governanceagendas and voluntary committee structures

structures

Review Results

Execution• Requires transition to a monitored• Preparation for transition to a company withinstitutional design

an Audit and Supervisory Committee• Requires functional separation of the• Functional separation of the Management

Management Committee

Committee into Nomination, Compensation,
and Ethics Committee• Review of board agenda and effectivenessassessment methods

Corporate Value Committee•

Business
Review
WG

Failure to convert improvement in system• Re-evaluation of a business strategy.

development capability into economic value, • Evaluation of the midterm plan andresulting in low profitability compared tobusinesses to be enhanced
peers• Evaluation of business profitability• Technology development and change in theGroup
Companies
Review WG

ICT field is extensive and accelerating,requiring more efficient technology
collaboration, service evolution, and• Making the final decision based on
evaluations made by Business Review WG• Optimal implementation of scheme based on
established policies• Requires to create a vision for the future.

• Disclosed the Mid-term Business Plan

• Requires to plan a business strategy• Set operating profit per capital as the most

• Requires to plan a profit enhancing strategy• Requires innovation to adapt changes in theenvironment

important KPI• Announcement of making the four listed
subsidiaries into wholly owned subsidiaries• Requires dynamic operations and synergies
throughout the groupmanagement system building throughout thegroup•

Real-estate
Review WG

In the past, real estate holdings were part ofa growth strategy, but the significance realestate is questionable• Evaluate the significance of real estateholdings• Evaluate necessity of each physical office• Optimal implementation of scheme based on• Requires Hurdle Rate vs. Market Value Rateof Return• Liquidate real estate that are below the• Classified the liquidation priorities into four
categories, and liquidation is implemented inaccordance with it

hurdle rateestablished policies

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8▍Mid-term Business Plan 2028: Formulation Process
As announced in the press release on January 12, 2024, "Announcement on the Progress of Corporate Value Enhancement Measures", our corporate
value enhancement measures (including the "Midterm Business Plan2028") have been formulated after feasibility review by the Special Committee

Overview

Organization
Corporate
Value
Committee

Executives

•
•

•
•
•

SpecialCommittee

Board ofDirectors••

Evaluation of business challenges
Formulation of future vision

Evaluation for improvements
Formulation of a business strategy

Corporate Value
Committee

Major Global
Consulting Firm

Evaluation of business challenges
Formulation of future vision
Evaluation for improvements
Formulation of a business strategy

Executives

Appointment

Submission
Review, order additional review

A major global consulting firm is
retained to review and evaluate thefeasibility of the Mid-term Business
Plan (19 meetings were held in total)
Submitted to the Board of Directorsof an opinion on the probability of
the Midterm Plan

Approval

Development of the
Mid-term plan

Submit additional evaluation
Review

Resolution

SpecialCommittee
E va l u a t e d t h efeasibility of theplan

ReportBoard ofDirectors

Submitted opinions

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Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

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10Mid-term Business Plan 2028: Our Vision

Five Years of Innovation and Development

Steady Growth, Innovation, and Bases for
the Future
Although being conscious of profit growth, FUJISOFT has developed its business andm anagement plans with an em phasis on sales growth in order to establish a firm foothold in
the IC T indus tr y. H owever , the C om pany now aim s to bec om e a “ lead in g co m p an y p ro v id in g
systems, software, and services in the IT and OT fields” and to contribute to customers
and society, have formulated a policy to further strengthen profitability while growing sales
s tar ting this year . In par tic ular , s et the am ount of oper ating inc om e per c apita in the m ain
unit as the most important KPI and aim to implement related measures

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11

Group&Synergy

FusionField

OperationalField &Solution
Deployment

Embedded/ Control
Field

FUJISOFT Overview▍Mid-term Business Plan 2028: Our Vision
Past

Present

2008 Financial Crisis-2022-2023

2021(2024)

Build the promotional capabilities, systems, and cycles
necessary to capture market share in response to an
expanding market.
Establish double-digit growth cycles in the main field.
Sales growth and profit growth beyond sales
growth(Improvement in profit margin).

Target of the Mid-term Plan 2028
2024-2028

Continued growth and stronger
profitability.
20% growth in operating income while
continuing high growth in the commission
field.
Challenges in new fields (fusion fields)

Strengthening of important capability base (next page)Top-level scale in the software industry
Cultivation of customer relationships
Accumulated experience andachievements

Customer: A large number of domestic customers
HR: Diverse technical workforce
Accumulation： Technology and know-how accumulated
through actual achievements

Challenges: Work style: customer-driven, individual process/style hardware-driven,transitioning to a software-oriented style that cannot be standardized, transitioning
Response
to a service-oriented style

Prime empowerment
Broad solution expansion
Prime capability, systemization

Customer: Cultivate a broad customer & major customer base
HR: Prime response team (PM, Architect, etc.)
Accumulation： Prime customers and advanced technology (AISCRM, etc.)

Challenges：Lack of HR and experience
Enhancing customer relationships
Preventing problems in increasingly complex projectsーEmphasize the uniqueness of each group company andcreate synergies
Enhance the strengths of each group company andestablish a growth strategy.

FutureResponse

Five Years of Innovation and Development
Scaffolding for steady growth, innovation, and further breakthroughs
Promote both continued growth that outpaces market growth and strengthen profitability
Aggressive investment for further growth and improvement of various indicators byenhancing profitability
Establishment of a structure to create further group synergies
Emphasis on shareholder returns
Strengthening of important capability base continued

Become a “leading company providing
systems, software, and services in the IT
and OT fields” and to contribute tocustomers and society

Expanding the corporate value as an industry leader.
Grow to a level where we are recognized as a key partner by many of our customers
Further advancement of partnership

Leading company in the industry
Recognized by many customers as a key
partner
Leader in development methodologies,
designs, and processes.

Increase the number of work styles and contracts in which we can take the lead
Research software development methodologies and develop systems to lead the way
Strengthen fields where we can take the lead, such as service design methods

Establish virtuous cycle such as : Deploy solutions and reach out to customers Enhance customer relationships, business expansion- undertake project- HR growth.

Further speed up HR development
Increase the number of work styles and contracts in which we can take the lead andlead our clients
Review and upgrade project management methods, which are becoming increasingly
complex due to technological developments

Start taking on challenges in new fields
Launch of alliance activities with potential
customers and solution vendors

By combining our existing customer base, technology, and experience, establish new
fields beyond contracted development, with a particular focus on the IT x OT field. In
addition, commercialize products and services.
Aiming to establish new business fields by implementing flexible measures including
capital policy

Assembly of new group operations
Variation in operating results among groupsubsidiaries
Changing customers, technologies and trends
Making four of the listed subsidiaries
wholly owned

Realization of dynamic operations with HR, technical experience, and customer
supportCreation of synergies in the fields of business, embedded/control, and product/service,
as well as making operation and maintenance and BPO a total service
Building new services through collaboration of HW business
Aiming to increase value through group synergies even in new fusion fields

Recognition as a top SIer
Leading projects by combining new SI
methods on top of traditional construction
methods (leader of continuous innovationin systemization development methods,
such as AI-based development and cloudbased development)

Possession of system/software &service provision solutions in the IT x
OT field
Establishment of sustainable andvalue-added service fields

Optimization as a group and developmentof the strengths and individuality of eachcompany
Flexible allocation of various
management resources

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12▍Business bases and cycles (Repost)
The Company has built a cycle and customer base, human capital base, and strategic partner base to support business expansion.

Building a cycle to get new customers anddeals for continued business expansion

Expanding
new clients

A cycle expands the base of customers and cultivating them in depth bystrengthening sales personnel, enhancing promotions, and expanding
sales of strategic products

Strengthening Customer Relationship
Evolving the relationship from an on-site contract development partner to a
management-level relationship

Cultivatecustomer
relationship

Accumulation and formalization of experiences
Response

Sales network

to support continued expansion
Formalize experience and wisdom accumulated through R&D and on-site
projects in the AIS-CRM field to create an environment in which the latest
technological trends and case studies can be made into knowledge andaccessed. Enhance HR and business capacity

Creating anewbusinessmodel

Customer
Base

Human
Capital Base
R&D/ Experience

Building an HR cycle for continued expansion

Strategic
Partner Base

programs, and on-site on-the-job training; continue to strengthen career
recruitment; expand the base of business partner employee participationand strengthen the business partner policy

Enhancing Strategic Partners

Developing New Customers
Challenge to build a newcooperative relationshipthat is not just aboutcommissioning

Develop a cycle of large-scale new graduate recruitment, various training

To increase corporate value and expand points of contact with customers,

Product
Service

HR Recruitment/
Development/ Business
Partner Policy

discover and collaborate with competitive services in Japan and overseas,

Strategic
Partner
Alliancebuild strategic relationships, and establish a cycle to expand sales

Development into new products and services
Creating a new product / service process by leveraging the enlarged
market strength
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13

▍Outline of Midterm Business Plan 2028
The profitability improvement efforts of the past two years have been highly effective (non-consolidated operating income CAGR 20.5%), and the Company
aims to further improve profitability while growing sales during the new Mid-term Business Plan period

Consolidated (100 mn JPY)
Operating profit

Non-Consolidated (100mn JPY)

Sales

Operating Profit※ New business included

Sales

3500
5,000

3,035

4,350
4,500

4,000

2,770

3000

3,700

4,000

2,537

3,400
3,500

2,989

2,220

3,150
1,923

2,788

3,000

2,310

2,500

2,579

2,410

CAGR：
7.7%

1,501
1500

2,070

1,757

2000

2,043

2,334

2500

1,641

CAGR：
8.5%

1,306

2,000

CAGR：
10.9%

1,500

CAGR：
20.5%

1000

1,000

500

114

133

160

168

183

207

220

260

320

380

450

179

222

268

331

152

2024

2025

2026

2027

2028

500

71

78

93

97

115

141

2018

2019

2020

2021

2022

2023

0

0

2018

2019

2020

2021

Actual

2022

2023

2024

2025

2026

2027

Mid-term Business Plan

2028

ActualMid-term Business Plan

Sales CAGR ：7.9%

Sales CAGR：7.8%

Sales CAGR ：9.6%

Sales CAGR：8.0%

Operating Profit CAGR：12.7%

Operating Profit CAGR：16.8%

Operating Profit CAGR：14.8%

Operating Profit CAGR：18.6%

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14▍Detailed plans (Non-Consolidated)
The Company plans to invest 11.2 bn JPY over the next 5 years in new business development (R&D, capital investment in AI research, etc.) to take on thechallenge of entering new business areas. Although the five-year investment will have a negative impact on operating profit and operating profit per capita, theCompany plans to achieve the initial target of 3 mn JPPY in operating profit per capita for the non-consolidated and existing business

FUJISOFT
400

Overview of operating profit

Summary of operating profit per capital(100 mn JPY)

(1 mn JPY)

Existing Business Operating Income

350
291

300

246
198
200

Impact from investments to new business
Operating income per capita in FUJISOFT

Impact from investments to new business

154

152

19

23

3.10
3

2.70
2.40

18
331

2

222

1

0

2.00
1.65

1.60

0.20

0.25

0.25

0.20

0.05

268
179

Operating profit per capital of existing business

24

2
100

4

1.80

2.15

2.45

2.90

0
2024

2025

2026

2027

2028

2024

2025

2026

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15

▍Outline of group subsidiaries and group synergy plan
The Company aims to achieve further growth through synergies by combining the technologies, skills, and expertise of each company through the transition to
making the four listed subsidiaries wholly owned subsidiaries

Sales and operating profit of group subsidiaries and group synergies (100 mn JPY)
Sales and operating income of group subsidiaries, taking into account group synergies
1,600

Operating Profit

1,427

Sales
1,310

1,400

1,212
1,116

1,200

853
727

800

876

817

769

977

921

1,000

1,026

600

400

200

39

43

55

72

67

68

66

82

107

92

77

126

0

2017

2018

2019

Before COVID-19

2020

2021

2022

2023

2024

2025

2026

2027

COVID-19

Previous plan

Mid-term Business Plan

Sales CAGR：8.3%

Sales CAGR：1.3%

Sales CAGR：5.6%

Sales CAGR：7.9%

Operating profit
CAGR：18.4%

Operating profit
CAGR：14.4%

Operating profit
CAGR (4.3%)

Operating Profit CAGR：13.7%

2028

Impact from unprofitableprojects at somesubsidiaries
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16▍Financial Management Goals
Results for
FY December 2023

Sales

298.9 (Bn JPY)

YoY

Forecast for
FY December 2024

FY December2024(liquidation impact)（excludedliquidation impact）

315.0 (Bn JPY)

(1.0) (Bn JPY)

316.0（¥ Bil）

(Rental sales)

Operating
Profit20.7(Bn JPY)

22.0 (Bn JPY)

(1.2) (Bn JPY)

Net Income

11.8 (Bn JPY)

21.0 (Bn JPY)

5.1 (Bn JPY)

9.2 %

15.9%

257 JPY

141 JPY

ROE

OperatingCF pershare

FY December 2024

(Rental income)(Gain on sale of realestate)3.6%（105.8％）23.2（¥ Bil）
（112.1％）15.9（¥ Bil）

435.0 (Bn JPY)

45.0 (Bn JPY)

（134.7％）32.0 (Bn JPY)

12.3%

20.0 % or more

265 JPY

600 JPY or more

(Gain on sale of realestate)(124) JPY

Target for FY
December 2028

(Gain on sale of realestate)※ Impact of Real Estate Business from liquidation and extraordinary income and corporate taxes
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17

Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

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18

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍Challenges and implementation measures to realize corporate value enhancement
The Company aims to strengthen profitability and review capital efficiency for further development on top of the business base the Company havedeveloped to date

Challenges

Implementation measures⚫ In addition to organic growth promoted by turning the growth cycle that theCompany have acquired so far, will set the most important KPI "operating income
per capita" to improve ROE, EPS, and cash flow per share

01 Strengthening⚫ Require to strengthen businesses thatprofitability ofexisting
businesses⚫ Enhance the values to the customers• Enhance the business partner policy• Improve productivity• Optimize SG&A expenses

are not providing or promoting corporate

Profitability⚫ The group is not able to provide services
to customers as a whole and is limited tosome transactions

02 Further growththrough groupwide measures anddevelopment of
new business infusion fields• Accelerate organic growth through dynamic group-wide operations by making listed
subsidiaries wholly owned• Strengthening the ability to transform in response to changing customer needs⚫ Create new businesses with higher added value by integrating the three main fields(business SI, embedded/control software, and product services)• Utilize accumulated assets (IT x OT experience, HR, customer and alliance relationships)• Collaboration, co-creation, and co-prosperity with user companies, strategic partners,
and research institutions through R&D and product investment⚫ Improve capital efficiency through real

⚫ Improve capital efficiency through real estate liquidation

03 Re-evaluationof capital⚫ Growth strategy investment with cash
allocation
generated• R&D Investment • M&A investment for new• HR Investment
business opportunities⚫ Growth strategy investment with cash generated

estate liquidation

CapitalEfficiency⚫ Strengthen synergies and leverage the unique strengths of each company to enhancethe overall strength of the Groupvalue• R&D Investment• HR Investment• M&A investment for new business opportunities
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01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍Details of measures to improve profitability of existing businesses
The source of corporate value is HR, and believe that an indicator of the value added by the HR is the most appropriate KPI for increasing corporate
value. Monitoring is conducted based on the framework described below (p. 35).
KPI
KPI

Measure Excerpts
Components

Item

Detail・Strengthen of cross-business: Further strengthen existing relationships with customers and build a company-wide cross-business structure and culture toprovide high-value-added services to customers through All FUJISOFT・Strengthen of technical capabilities: In the fields represented by DX AIS-CRM SD, we are making R&D investments to enhance our capabilities in newtechnological fields, increase the value we provide to customers, and build new IT solutions and services

Improvementof customer
value

・Provide one-stop services: Build a system that can provide one-stop services from upstream processes to operation and maintenance and infrastructure,
while increasing added value by providing combined expertise in embedded/control system development, communications technology, business systems,
and other areas.

・Strengthen our basic business: Review the roles with customers and other workflow to improve the value provided in terms of manpower per month, andexpand into a success-oriented business

Gross profit

・Expansion of all-in projects: Increase the number of projects that we can proactively promote to raise the value to our clients, increase the ratio of partnercompanies, and flexible optimization of internal resource allocation

Operatingincome perPartner policies

・Reviewing customer relationships and upgrading partner policies to increase the ratio of partner companies, secure human resources, improve productivity

capita・Building customer relationships to drive productivity
Productivity
improvement

・Further strengthening of trouble prevention measures
・Promote technological innovations such as generative AI, test automation, enhanced development environments and tools, product-based development, andnew cloud-based development methods

Selling, generalandadministrative
expenses

Optimizationof selling cost・Visualize sales activities using indicators, review sales processes, and promote efficiency and sophistication by monitoring each indicator and performing the

Optimizationofadministrative
cost

・Promote visualization and optimization of business workflow through operational reforms (activities ongoing since 2019)

PDCA cycle

・Promoting improvement and optimization of efficiency through modern system implementation and DX promotion, such as core system renewal based on
operational transformation, no-code, low-code, and usage of generative AI
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01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍Details of measures to improve profitability of existing businesses
In FY2022, the Company restarted the cross business and built a new structure and culture. The effects are beginning to be seen, and during the period of thisMid-term Plan, the Company will strengthen cross-business with subsidiaries that will become wholly owned subsidiaries, aiming to further increase value

2022

2023

Establishment of Cross-business2024 and on
Strengthen of Cross-businessAcceleration through solution deployment
Cross-business inquiries in FY2023 to exceed 130% of the previous year

これまでの取り組み
Past Initiatives
・Establishment of a cross-functional organization(Solution Business Dept. and DX Product Business Dept.).
・Rules for monitoring mechanisms and visualizationof cross-in/cross-out
・Selection of focus themes and commercial products
・Target setting
・ Incentive granting

Challenges:
Further strengthen commissioned-based cross business

Provide “all the value and technology” of ourgroup to increase the value we offer tocustomers

Increase business with customers andexpand our business

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01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍DX support for customers and in-house business reform/DX implementation
Further advance DX, such as using digital technology and applying AI to system construction and put further emphasis on the technology strategy “DX+AISCRM+SD+(5)G2” to contribute to the customers and the competitiveness of the Company to expand and strengthen its businessHelping Customers to Improve Their CompetitivenessSupport for new business opportunity

IoT
Integration

AI

Security

Integration

Integration

DX Solution
Operational
System Dev
System Infra’ Dev

Enhancement

ＳＩ
Cloud
ComputingEmbedded/Control
Software Dev

Cutting Edge
Software
Auto
MotiveIntegration

Integration

HW Product+
SW Experience

Product Provision

5G, Local 5G initiatives
And globalization

Strengthening existing businesses

Robot

MobileIntegration

Integration

Enhance own DX promotion.
Further sophistication of datautilization. Improve development
productivity through LLM utilization,
test automation, and development
process innovation etc.
Pursuing Hybrid Workseven further

DX + AIS-CRM + SD + ( 5 ) G2
<Ice Cream>

Thorough in-house use of digital technology
X×The technology strategy “DX+AIS-CRM+SD+(５)G2”

Enhance Competitiveness

Follow the progress on DX
Develop DX-HR
Construct a digital platform(Operational from 2024 ）Core system renewal

Core / HR development

Helping customers improve their competitivenessStrengthen the competitiveness of the Company
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22

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍Organizational Management for Improved Profitability
Since the issues faced by each site differ, the model of divisions that have achieved the current KPI of operating profit per capita is divided into patterns (hereinafterreferred to as the “Success Model”). For divisions that have not yet achieved the KPI, the Company will use the Success Model to orientate them toward the target andmonitor them according to their characteristics
Improvement Process
1: Model and pattern divisions that already have operating income per capita in excess of 3 million yen
2: Decide the direction to take based on 1, depending on the situation at each site
3: Conduct periodic monitoring and review progress and policies

The issues faced by each site differ

7,000
6,000

Optimization of business partner employee
ratio
Productivity improvement
Service modelingSemi-Commissioned Contract⇔ Lump-Sum Contracting
Resident type ⇔ Take-home type

operating income per capita( O n e t h o u s a n d ye n )Organizing and contracting businesses
with customers

Price optimization

5,000

A

4,000
3,000

B
C

2,000
1,000
0
(1,000)

50%

60%

D

70%

80%

90%

100%

(2,000)

Accumulate experience and increase
efficiency
Building relationships with customers
Expansion of high-value technical fields

Before partial account ofhead office expenses

Cost to Income Ratio

A：For divisions that have already achieved or are on track to achieve 3 million
yen in operating income per capita, set strategies to achieve 5 million yen
B：Departments expected to be attainable within 3 years carry out 2
C：Departments expected to be attainable within 5 years carry out 2
D： Departments that do not fall under A-C will be considered for a fundamental
review
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01 Strengthening
Profitability▍Future Strategy

02 Further Growth

03 Capital Allocation

Dynamic group-wide operations are necessary to respond to changes in the business environment surrounding. In addition, in order to leverage the uniquestrengths of each company while enhancing synergies across the group as a whole, four listed subsidiaries were made wholly owned subsidiaries

Dynamic group-wide operations⚫ Prompt communication and decision-making, deployment of research⚫ Strengthen sales collaboration and promote cross-businessresults and know-how, sharing and deployment of intellectual property, ⚫ Controlling and reducing the Group SG&A expenses
and timely and appropriate allocation of human resources⚫ Flexible organizational management⚫ Strengthening group governance and maintaining and honing strengths ofindividual companies (eliminating conflicts of interest)

Creation of further corporate value through collaboration of each company’s
technology, skills, and experiences

Organizational strength to accumulate and sublimate new technologies within the group⚫ Develop and effectively utilize human resources and accumulate intellectual property and experiences throughbalanced group investment and integration of knowledge at each site
⚫ By developing these group assets into the markets of each company and making them a source of strength, theCompany can increase corporate value and accumulate experience as know-how

Strengthening the Group’s ability to respond to customers’ changing needs⚫ While customers are changing for their own innovation in the DX trend, the Company, as a group, will actively promote own
innovation, such as DX of the system development process, to increase the value the Company provides to customers⚫ At the same time, the Company will utilize the accumulated experience in dealing with customers to transform the way theywork, their roles and to be more effective in response to their changing needs
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01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation▍Creation of further value through collaboration of technology, skill, and know-how ofeach group company
The Company aims to achieve dynamic operations in human resources, technical know-how, and customer service in order to increase value throughgroup synergies while leveraging the strengths of each company

Collaboration Examples
Value-added by collaboration from theProvide consistent solutions such as MBSE, MBD,
software implementation, and maintenance
Expansion into various industrial fields••

CSC: Model-based upstream experience, MBSE subsidiary
FUJI SOFT: Experience in MBD with a focus on the automotive field and research
into the MBSE field•

Enhancement of advanced solutions from 3D
design documents to PLM implementation andmaintenance••

CSC: Know-how in providing packaged services
FUJI SOFT: Experience of PLM SI Project•

Provide consistent services from system design
to system outsourcing and BPO•

VINX: System outsourcing know-how, structure, and experience cultivated in thelogistics field
SB: Experience in BPO and support center operations in a variety of fields
FUJI SOFT: Proven track record of many IoT system projects and deployment ofoperational-related business with a wide range of customers

Add value by sharing various know-how in thefields of automobiles, telecommunications, etc.

•

Collaboration in the fields of smart logistics andsmart factories

•
•
•
•

•

very upstream and upstream process ofcontrol system development

Strengths of Each Company•

to software implementation
Responding to the increasing
complexation of the engineering chain

Strengthening of integrated services,
including operation and maintenance,••in new service fields such as
cloud computing and IoTValue-added through collaboration of•technical know-how•
Combination of know-how in the IT x OT field•

CCC: Know-how and experienced human resources that are based on hands-on
work, regional offices
FUJI SOFT: Wide range of customers and business fields and know-how inadvanced fields such as AIS-CRM
CSC: IoT Product Solutions & Know-how
VINX: Customer operational know-how in the logistics field
SB: Various back office services experience
FUJI SOFT: Experience in robotics, material handling equipment, PLC, AMR, andother controls and WMS

Abbreviation: CSC: Cybernet Systems, VINX: Vinx, CCC: Cyber Com, SB: FUJISOFT SERVICE BUREAU
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25▍Creating New Business ｜DX Solution Field

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation

Develop new business fields with “IT x OT” through Collaboration, Co-creation, and Co-prosperity with customers using a wide range of businessknowledge, product knowledge, and an environment that facilitates to consult customers’ issues that built up through organic growth of existing businesses

Primary Themes

DX Fields⚫ Workplace
Transformation

Creating New Value
Development of customers and society
User Company⚫ Smart Factories⚫ Robotic SI

Commission:⚫ Local 5G

Research Institutes

Collaboration
Co-creation
Co-Prosperity⚫ DigitalTwin/
Simulation⚫ IoT Operations⚫ New Retail

R&D
Investment

Product
Investment

CapitalManagement⚫ Digital Education⚫ Web3.0/ NFT/
Metaverse⚫ Social Infrastructure
field etc.

Assets: IT×OT Know How• Accumulation to date

• Customer relationships• HR, Partners• Alliance

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01 Strengthening
Profitability▍New Business Overview

02 Further Growth

03 Capital Allocation

The Company established a specialized organization in January 2024 to develop new businesses under a structure independent of existing businesses, with afocus on collaboration in the IT x OT field

User Companies・
Research Institutes
Others

1. Collaborate
Co-create
Co-prosper

New Business Chart

NEXT Business Dept.
Robotic SI Team

Support for capitalalliance *1

Existing
Business Segments

Product Support

Team 2.

⚫ Professional organizations,PTs, study groups
Business startup
accelerated
through access tocapitalSmart Factory
Smart Logistics
Robotic SI

3. New Business Plan

Team 3.

3.

*2

Open Innovation
(TBD)

2.

Commercialization
support over 1 bn JPY

Partner

Nursing Field

・・・

In-house incubation

Partner

Workplace
Transformation
Local ５G

New Business Plan

PartnerPartner

Initiator*1: Support for product planning promoted by existing business segments with accumulated knowledge*2: Commercialization of plans initiated by existing business segments

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▍(Reference) New Business Overview

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation

Themes (as of today): 9 themes selected based on the collaboration, co-creation,and co-prosperity model in IT x OT and the in-house product model■ Collaboration, co-creation, and co-prosperity model in IT x OT

Smart FactorySpecialized PT(*) alreadyestablished

Smart Logistics■ (In-house) Product Model

Specialized PT(*) alreadyestablished• Collaboration with various vendors involved in factory line
construction• Collaboration with various vendors involved in the logistics
business• Promotion of sophisticated manufacturing throughsoftware by utilizing various technologies related tofactories• Promotes autonomous control of warehouses by utilizing
various logistics-related technologies

Local 5G

Specialized PT(*) alreadyestablished

LLM

Specialized organizations
already established• Collaboration with telecom operators and chip vendors• Collaboration with cloud vendors and AI vendors• Promotes accelerated market adoption by providing an
inexpensive local 5G environment that leverages open
technology• Accelerates market adoption based on case studies ofthree key technologies: general-purpose LLM, dedicated
LLM, and RAG

Operation maintenanceSpecialized PT(*) alreadyestablished• Envisioning new operation and maintenance services inline with the cloud era• Provide advanced operation and maintenance services for
multi-cloud environments based on the existing OpsPower
RUKIA

Digital Education

Specialized PT(*) alreadyestablished• Envisioning IT human resource development business anda new service that provides an environment for advanced
education.
• Providing adaptive education and its environment by
utilizing AI and LLM technologies, and leveraging a virtual
education platform

Robotic SI• Collaboration with robotics-related vendors• Lead the digitalization of the manufacturing line byutilizing technologies such as simulation, IoT, and AI to
improve production efficiency

Workplace Transformation• Providing a new service concept to promote business
improvement using Labor Data
• Providing solutions to visualize labor quality and improve
operational efficiency by utilizing data from moreNOTE,
FAMoffice, and VSReport contrail.

Nursing• New service concept for advanced nursing care services• New digitally-enhanced services for advanced carefacilities※PT: Fixed Term Project Team
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28▍Capital Allocation

Basic Concept

Cash inflows

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation• Growth investments and shareholder returns will be determined in a flexible manner,
assessing investment opportunities• Aims to maintain financial stability while emphasizing shareholder returns and capitalefficiency• Cash Flow + Cash Flow from liquidation of real estate: Expect togenerate 220 bn JPY or more (150 bn JPY or more fromexternal financing is separately planned)

Growth investment: cash on hand andusage of debt

Shareholder return: 140 bn JPY (estimate)• Strategic alliances or M&A, establishment of new subsidiary policy, human resources investment,
and R&D in new fields and to complement existing businesses• Flexible fundraising, including borrowing upon investment opportunities(41 bn JPY is allocated to making 4 listed companies into wholly owned subsidiaries)

Buyback of 100 bn JPY or more
▶Timing will be determined according to the liquidation of real estates and other factors
Dividend estimated 40 bn JPY (payout ratio 35%)▶*The amount of dividend for each fiscal year will be determined based on normal profitability
excluding extraordinary gains/losses associated with the liquidation of real estate

Aim to achieve 600 JPY of operating CF per share and ROE of at least 20.0%
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29▍Real estate liquidation schedule and progress

01 Strengthening
Profitability

02 Further Growth

03 Capital Allocation

As disclosed in August 2023, the Company is liquidating the real estate holdings, and progress is as follows:

Rank

Criteria# ofProperties

NotableProperties
Ryogoku

Rank A

There are no obstacles to liquidation andno significant monetary impact, making it
possible to proceed with liquidation as
quickly as possible

8

Akihabara
Properties that will eventually beliquidated, but require a certain amount oftime for adjustment

9

Kinshicho
OomiyaRank C

Rank D

Aim to liquidate at least one property by the end of 2023 and complete theliquidation of the remaining properties around the time the year-end
financial results are announced (February 2024).

Fukuoka
Osaka

Rank B

Schedule and Progress▶2 properties Fukuoka and Atsugi Dai Ni properties are scheduled
to be liquidated at the end of February, and remaining six properties
are scheduled to be under contract in March.

Due to the large scale of the properties, and special circumstances suchas the unique usage of facilities and relationships with tenants, a certain
amount of time is expected to be required for the liquidation process▶On-going with the aim of executing the plan one year after theAugust 2023 disclosure (August 2024).

Shin-Nagoya

Properties that requires carefulconsideration for liquidation scheme,
timing, need for relocation, etc.

5

Not subject to liquidation for the time
being, as the land is non-transferable fora certain period of time due to landacquisition conditions

1

Properties with full business use in offices, data centers and others.
Liquidation scheme, timing, relocation needs must be carefully considered.
Sakuragicho

Shiodome

Non-transferable for a certain period of time due to land acquisition
conditions

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30

Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

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▍HR Strategy｜HR Policy
The Company values people who believe in the potential of “people” and work with integrity, regardless of their background.
Provide opportunities for people who are ambitious and can to take on challenges, and realize diverse human resource recruitment and diverse work styles

For Diverse HR
Management

Admin

Sales

Planning

Technology

DX AIS-CRM

Management
Managerial andsupervisory
employees

Variousspecialties

Marketing
Promotion

Business Planning,
Corporate Planning,
Product Planning

Project Managers, IT Consultants,
Cloud Engineers, Infrastructure
Construction Specialists, IT Architects

Service Design, IoT Specialist,
Security Human Resources, AI
Specialists, Data Scientists

Diverse Engineers

Variouse-Learning
Architect
LiaisonCommittee

IT
Consultation
Dojo

Experience and Learning Opportunities
Through Various Communities
IoT
Promotion
Conference

In-house
SocialNetwork

FujiTube

Workplace
ReformInnovation
ConferenceAI
Promotion
Conference

Security
Specialist
LiaisonCommittee

PM
LiaisonCommittee

Active recruitment
and expansion
Side Job
ProgramRemoteWork
ProgramUltra Flex

Child/Nursing
Care Leave

Diversity
Female Empowerment

Specialist
Program

PM Certificate
ProgramSelf-development
incentive program

Study Abroad
Program atcompany expense

Strategic promotion
qualification
and recommended
seminar program

In-house products and environments that support diverse work styles: moreNOTE, FAMoffice, VDI, M365, +F Mobile Router・・・
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▍Number of recruits: actual and plan
The Company expects to continue to employ a ratio* of approximately 10% during the planed period. As competition is expected to intensify in the recruitmentof experienced workers, the Company will continue to actively recruit new graduates.
*Adoption ratio: Number of employees adopted in the current year ÷ Total number of employees at the beginning of the fiscal year.

Graduate (Including admin)

Mid-career

Employment Rate (Mid-career)

Employment Rate (Graduate)

Actual(# of employees)
1,400

Employment Rate (Total)

Mid-term Business Plan 2028

19.4%

20%

17.2%

18%

1,200
16%

14.4%
1,000

12.4%

11.8%
10.7%

800

14%

12.6%

11.7%

10.8%

10.2%

10.7%

10.4%

11.2%

11.1%

9.3%
600

8.4%

8.0%

8.3%

8.1%

10%

8.2%

7.0%
6.1%

7.9%

7.4%

8.1%

7.7%

5.4%

400

8%

6%

2.7%

200

12%

2.7%

3.3%

3.3%
2.0%

2.9%

3.0%

3.1%

3.3%

4%

2%

0

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026
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2028

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33

Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

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▍Execution ｜Framework and Incentives
In addition to the monitoring function to date, the Company will establish a new monitoring function specifically for the Mid-term Business Plan and raise reports to
the Board of Directors and the Corporate Value Committee. Also, the Company plans to introduce an incentive system for directors and executive officers linked tothe achievement status of the Midterm Business Plan as their responsibility.

Board of Directors

Execution deliberation anddecision-making

Corporate Value
Committee

Implementation of various measures suchas deliberation and approval bymanagement
Various review meetings

Mid-term business plan
monitoring
Following the status of KPI/measures andaddressing issues, and meetings to discuss
measures to achieve Mid-term Business Plan

Promotion of various themes(Conference bodies, projects, etc.)
Promotion of achievement of asingle fiscal year
Meetings to discuss measures to achieve thenumerical plan

Strengthen the amount of operating income per capita in
FUJISOFT, Group synergies, Strengthening of trouble
prevention and management, control of SG&A expenses,
Cross-business promotion, etc.
Conference bodies and monitoring functions for various
measures

Promotion at each site

Promotion in each group subsidiaryBusiness operations at each headquarters

Subsidiary Management

Establishment of incentives for achievement of five-year plan
Introduce an incentive plan for directors and executive officers linked to the achievement of the plan
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35

Agenda01.

Review of current Mid-term Business Plan

02.

Targets of Mid-term Business Plan 2028

03.

Detailed measures

04.

HR strategy

05.

Execution framework to realize the Mid-term
Business Plan 2028

06.

Appendix - Engagement with capital markets

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36▍Our engagement with capital markets
We have put emphasis on engagement with investors and shareholders since the established of the Corporate Value Committee in 2022, followed by
the Governance Committee

2021

Extraordinary general
2022 ※
meeting of shareholders

2023# of investors

51 investors

60 investors# of meetings

133 meetings

163 meetings# of investors

26 investors

22 investors# of meetings

61 meetings

36 meetings

IR Meetings

49 investors
123 meetings

SR Meetings

We engaged in dialogue with investors and shareholders.
We have taken into account opinions and concerns expressed during the dialogue
in formulating the Mid-term Business Plan
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37

Disclaimer
This material is not intended to solicit, mediate, or interfere investments in any transactions with us or other companies. Strategies,
plans, policies, forecasts, and other prospective statements contained in this material are based on certain hypotheses(assumptions) which we established using information that has been obtained at present as well as future forecasts, thus contains
various risks and uncertainties. Therefore, the actual results may differ considerably from the information described in this material.
In addition, regardless of any deviation in the actual results, we do not necessarily revise or otherwise change the content of thismaterial in each case for voluntary disclosure. Nor are we obliged to revise or otherwise change the content of this material.

Contact Info：
FUJI SOFT INCORPORATED[Corporate Finance Dept.]（TEL：045-650-8811）
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