Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 11,2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name:
Systena Corporation
Listing:
Tokyo Stock Exchange
Securities code:
2317
URL:
https://www.systena.co.jp/
Representative:
Kenji Miura, Representative Director and President
Inquiries:
Takafumi Kai, Managing Director
Telephone:+81-3-6367-3840
Scheduled date of annual general meeting of shareholders:June 23, 2022
Scheduled date to commence dividend payments:
June 9, 2022
Scheduled date to file annual securities report:
June 23, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen

March 31, 2022

65,272

7.2

9,106

13.7

8,578

14.3

5,992

20.5

March 31, 2021

60,871

(5.7)

8,006

(1.9)

7,507

(4.6)

4,974

(9.1)

Note: Comprehensive income%%

Millions of yen

For the fiscal year ended March 31, 2022:
For the fiscal year ended March 31, 2021:

Basic earnings
per share
Fiscal year ended

Millions of yen

Diluted earnings
per share

Yen%¥6,089 million¥5,018 million

Return on equity

Yen

Millions of yen%[21.3%][(8.9)%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

%

March 31, 2022

15.47

–

21.6

20.8

14.0

March 31, 2021

12.84

–

20.6

20.1

13.2

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2022:¥(144) million
For the fiscal year ended March 31, 2021:¥(748) million
Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Basic earnings per share has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2022

43,47730,173

68.5

%

76.83

Yen

March 31, 2021

38,88625,996

65.9

66.17

Reference:

EquityAs of March 31, 2022:¥29,762 million
As of March 31, 2021:¥25,632 million
Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Net assets per share has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

5,544

(559)

(1,905)21,964

March 31, 2021

7,205

(1,562)(1,983)

18,875

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended

March 31, 2021
Fiscal year ended

March 31, 2022

Yen

Fiscalyear-end

Yen

Total

Yen

Total cash
dividends(Total)Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

10.00

–

10.00

20.00

1,945

38.9

8.0

–

10.00

–

3.50

–

2,334

38.8

8.4

–

4.00

–

4.00

8.00

Fiscal year ending

March 31, 2023

44.3

(Forecast)

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. The stated year-end dividend pershare for the fiscal year ended March 31, 2022 takes the said stock split into account. The total annual dividend for the fiscal
year ended March 31, 2022 is not shown because a simple total cannot be calculated due to the implementation of the stock
split. The annual dividend per share for the fiscal year ended March 31, 2022 that does not take the stock split into account is
24 yen (the interim dividend of 10 yen per share and year-end dividend of 14 yen per share).

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March
31, 2023)
Net sales
Millionsof yenFiscal year ending

March 31, 2023

71,450Operating profit(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Ordinary profit
owners of parent
per share%

Millionsof yen%Millionsof yen%Millionsof yen

%

Yen

9.5

10,28012.9

10,280

19.8

7,000

16.8

18.07

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

450,880,000 shares

As of March 31, 2021

450,880,000 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

63,483,788 shares

As of March 31, 2021

63,505,356 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

387,386,464 sharesFiscal year ended March 31, 2021

387,371,768 shares

Notes: 1. The Company has introduced a stock compensation plan, and in calculating the number of common treasury shares at theend of the period and the average number of shares outstanding during the period, the number of treasury shares includes
shares of the Company held by Japan Custody Bank, Ltd. (the Trust Account) as trust assets for the “Trust for Granting
Shares to Directors and Executive Officers” and the “Trust for Granting Shares to Executive Officers.” The number oftreasury shares held by the Trust Account included in the number of treasury shares at the end of the fiscal years ended
March 31, 2022 and March 31, 2021 was 1,612,300 shares and 1,634,000 shares, respectively, and the number of treasury
shares held by the Trust Account excluded from the calculation of the average number of shares outstanding during the
fiscal years ended March 31, 2022 and March 31, 2021 is as follows: the average number of common treasury shares heldby the Trust Account for the years ended March 31, 2022 and March 31, 2021 were 1,622,086 shares and 1,636,938 shares,
respectively.
2. The Company implemented a four-for-one common stock split effective December 1, 2021. Number of shares has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March
31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Operating profit

Millions of yen%

Millions of yen

Ordinary profit%

Millions of yen

Profit%Millions of yen%

March 31, 2022

58,110

6.1

8,500

13.6

8,455

9.7

5,566

23.4

March 31, 2021

54,794

(6.9)

7,483

(4.1)

7,705

(0.4)

4,510

(11.6)

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Yen

March 31, 2022

14.37

–

March 31, 2021

11.64

–

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Basic earnings per share has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2022

39,797

27,684

69.6

%

71.46

Yen

March 31, 2021

35,891

24,062

67.0

62.12

Reference:

EquityAs of March 31, 2022:¥27,684 million
As of March 31, 2021:¥24,062 million
Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Net assets per share has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements in this material, including earnings forecasts, are based on information currently
available to the Company and on certain assumptions deemed reasonable. Actual results may differ significantly
due to various factors. For assumptions underlying the forecast and cautions regarding the use of earnings
forecasts, please refer to “1. Overview of operating results, etc., (1) Overview of operating results for the period
under review, (ii) Forecast for the next fiscal year” on page 6 of the Attached Materials.

Attached Materials Table of Contents
1. Overview of operating results, etc. ..................................................................................................................................................... 2(1) Overview of operating results for the period under review ........................................................................................................ 2(2) Overview of financial position for the period under review ....................................................................................................... 8(3) Basic policy on profit distribution and dividends for the fiscal year under review and the next fiscal year ........................ 10(4) Business and other risks .............................................................................................................................................................. 10(5) Issues to be addressed .................................................................................................................................................................. 11
2. Corporate group ................................................................................................................................................................................ 13
3. Basic approach to the selection of accounting standards ............................................................................................................... 13
4. Consolidated financial statements .................................................................................................................................................... 14(1) Consolidated balance sheet ......................................................................................................................................................... 14(2) Consolidated statement of income and consolidated statement of comprehensive income .................................................... 16
Consolidated statement of income ................................................................................................................................................ 16
Consolidated statement of comprehensive income ...................................................................................................................... 17(3) Consolidated statement of changes in equity ............................................................................................................................. 18(4) Consolidated statement of cash flows ......................................................................................................................................... 20(5) Notes to the consolidated financial statements .......................................................................................................................... 22(Notes on premise of going concern) ............................................................................................................................................... 22(Significant matters that serve as the basis for preparing consolidated financial statements) .......................................................... 22(Significant accounting estimates) ................................................................................................................................................... 24(Changes in accounting policies) ..................................................................................................................................................... 25(Unapplied accounting standards, etc.) ............................................................................................................................................ 26(Additional information).................................................................................................................................................................. 26(On the consolidated balance sheet) ................................................................................................................................................ 27(On the consolidated statements of income) .................................................................................................................................... 27(On the consolidated statement of comprehensive income) ............................................................................................................. 28(On the consolidated statement of changes in equity) ..................................................................................................................... 29(On the consolidated statement of cash flows) ................................................................................................................................ 31(Lease transactions) ......................................................................................................................................................................... 31(Financial instruments) .................................................................................................................................................................... 32(Securities) ...................................................................................................................................................................................... 35(Retirement benefits) ....................................................................................................................................................................... 36(Tax effect accounting).................................................................................................................................................................... 37(Revenue recognition) ..................................................................................................................................................................... 38(Segment information, etc.) ............................................................................................................................................................. 39(Information on related parties) ....................................................................................................................................................... 43(Per share information) .................................................................................................................................................................... 43(Significant subsequent events) ....................................................................................................................................................... 44
5. Non-consolidated financial statements............................................................................................................................................. 45(1) Non-consolidated balance sheet .................................................................................................................................................. 45(2) Non-consolidated statement of income ....................................................................................................................................... 48(3) Non-consolidated statement of changes in equity ...................................................................................................................... 50(4) Notes to the non-consolidated financial statements ................................................................................................................... 52(Notes on premise of going concern) ............................................................................................................................................... 52(Significant accounting policies) ..................................................................................................................................................... 52(Significant accounting estimates) ................................................................................................................................................... 54(Changes in accounting policies) ..................................................................................................................................................... 54(Additional information).................................................................................................................................................................. 55(On the non-consolidated balance sheet) ......................................................................................................................................... 55(On the non-consolidated statements of income) ............................................................................................................................. 55(Securities) ...................................................................................................................................................................................... 55(Tax effect accounting).................................................................................................................................................................... 56(Significant subsequent events) ....................................................................................................................................................... 56
6. Other .................................................................................................................................................................................................. 57
The Company will hold a briefing session for investors as follows. The materials distributed at the briefing will be posted on the
Company’s website immediately after the briefing.
・May 16, 2022 (Monday): Company Information Briefing for Institutional Investors and Analysts-1-1. Overview of operating results, etc.
Matters discussed here that are not historical fact reflect judgments made as of the end of the fiscal year underreview.
(1) Overview of operating results for the period under review(i) Operating results for the period under review
During the fiscal year under review (April 1, 2021 to March 31, 2022), the Japanese economy saw exports
continue to increase against the backdrop of recovery in overseas economies, but domestic demand wasaffected by restrictions on economic activities due to the COVID-19 pandemic, with only a moderate
recovery mainly in individual consumption. Toward the end of the period, amid rising inflationary pressures
worldwide, the high prices of resources and raw materials following Russia’s military invasion of Ukraine
and the rapid weakening of the yen became further risk factors for the economy.
Amid this environment, the Group continued to promote its business activities, focusing on IT support andsoftware development support through remote sales and teleworking.
With regard to the launch of new projects, the Group pursued aggressive sales development, including
development of new clients through inbound sales utilizing web content and gradually increasing face-toface meetings due to a rise in physical commute ratios among clients.
In the Solution Design Business, the Group focused on expansion in the in-vehicle, Internet business, IoT,
robotics/AI, and DX fields, where significant growth is expected. Here, the Group worked to further increase
orders and improve profitability by further utilizing near-shore development at regional bases and off-shoredevelopment in Vietnam.
In the Framework Design Business, the Group deployed its system development expertise from thefinancial sector to customers in the public and distribution/services sectors, and worked to expand orders inthe business application development and infrastructure (cloud) architecture operations.
In the IT Service Business, the Group grew its customer pool and sales volumes by further strengthening
alliances with Group companies and partner companies, as well as by promoting the development of IT
service products through the use of inbound sales.
In the Business Solution Business (renamed from the Solution Sales Business), the Group actively pursued
orders for projects to respond to the shift to digital technologies, as well as orders for system development
and maintenance and operation projects by strengthening cooperation with the DX Promotion Department,
which handles robotic process automation (RPA) and data linkage tools integrated at the beginning of the
fiscal year under review.
In the Cloud Business, which is responsible for promoting the subscription business model, the Groupextended the functionality of its Canbus. and Cloudstep in-house products, actively promoting sales throughweb marketing. In addition, the Group is developing commercial products with keywords such as IoT,
security, and blockchain, and promoting collaboration with subsidiaries and venture companies in Japan andoverseas to achieve sales globally.
As a result of the above, consolidated results for the period under review were net sales of ¥65,272
million (up 7.2% year-on-year), operating profit of ¥9,106 million (up 13.7% year-on-year), ordinary
profit of ¥8,578 million (up 14.3% year-on-year), and profit attributable to owners of parent of ¥5,992
million (up 20.5% year-on-year).
In the fiscal year under review, the Company reviewed its business management categories and changed theclassification of its reportable segments as follows. The business of ProVision Co., Ltd., which had beenclassified under the Solution Design Business, was reclassified into the IT Service Business, and the businessof IDY Corporation, which had also been classified under the Solution Design Business, was reclassified
into the Business Solution Business. In addition, new service areas such as RPA, which had been classified
under the Framework Design Business, have been reclassified into the Business Solution Business.
The following describes performance by segment. Note that net sales for each segment include inter-segment
sales or transfers.
For comparisons with the previous fiscal year, figures for the previous fiscal year have been reclassified
into the new reportable segments.

-2-

a. Solution Design Business
The Solution Design Business is divided into five categories: In-Vehicle, Social Infrastructure, Internet
Business, Products, and DX Services. Net sales in this business amounted to ¥20,663 million (up 7.8%
year-on-year), and operating profit was ¥4,132 million (up 14.0%).
(In-Vehicle)
In the in-vehicle category, featuring development of elements such as Mobility as a Service (MaaS),
autonomous driving, in-vehicle infotainment, telematics,1 and the development of electronic control units(ECUs), the Group achieved significant sales growth in MaaS-related services thanks to differentiationfrom competitors owing to technological capabilities that leverage the Group’s experience in the in-vehicle
business and telecommunications business. In particular, there is a rising number of projects seeking
commercialization through proof of concept (PoC), and this is expected to grow further. In addition, invehicle infotainment and telematics are also on a recovery track, and the Group will continue to takeaggressive actions to advance these areas. Furthermore, the Group has positioned these areas as long-term
priority focus areas, and through its participation in the MONET Consortium,2 the Group will aim tofurther enhance its business value in the mobility field.
1 Telematics is a term created from the combination of “telecommunication” and “informatics.” It is a
generic term for the provision of services using mobile communication systems, such as mobile
phones, to automobiles and other mobile objects.
2 MONET Consortium is a consortium established by MONET Technologies Inc., a joint venture
between SoftBank Corp. and Toyota Motor Corporation, to promote next-generation mobility services,solve social issues in mobility, and create new value.
(Social Infrastructure)
In the social infrastructure category, the Group supports the mechanisms of society, including
telecommunications infrastructure, payment infrastructure, transportation infrastructure, power grids, andmore, and enriches people’s lives. Here, sales grew significantly, especially in services related to thedevelopment of 5G infrastructure. In addition, with the spread of 5G infrastructure, orders for service
development utilizing this network have been brisk. As demand for the development of services utilizing
5G is expected to increase in the future, the Group will closely monitor trends in projects related to 5G
infrastructure.
(Internet Business)
In fields related to the Internet Business, such as Internet services and e-commerce, sales remained steadyin service development for 5G, cashless payment in e-commerce, and system development and verification
related to the utilization of personal data. Orders from companies seeking to further strengthen theircashless payment ecosystems were particularly strong. This area is expected to continue to grow due torising demand amid the COVID-19 pandemic.
(Products)
In fields related to product development, including smartphones, home appliances, and robotics,
development and quality verification associated with smart home appliances experienced steady growthwith the keywords “AI” and “IoT,” strengths of the Group. In addition to product development and quality
verification, the Group’s ability to provide one-stop support throughout the product lifecycle, including
environment construction and support, also differentiates the Group from its competitors and has helped it
achieve steady results. The Group will continue to expand orders received further by flexibly resolving
both emergent and latent issues through its one-stop services.
(DX Services)
In the DX Services field, the Group has received many inquiries thanks to its offerings utilizing in-houseservices and open source software (OSS) in addition to conventional system development service as
demand increases for achieving digital transformation (or DX, the concept of improving all aspects of lifeand business through permeation of information technologies). The Group will continue to focus on-3-expanding its in-house services while strengthening its sales capabilities and aggressively developing newclients in this field.
Regarding the status of the Group’s response to COVID-19 and its impact on activities within thisbusiness, the Group has shifted to telecommuting in many business areas, successfully mitigating risksfacing the continuation of business activities.
The Group will continue to promote business by taking rigorous infection control measures.
b. Framework Design BusinessIn this business, the Group harnessed its track record in application development in the financial sector to
expand the scope of its offerings to customers in the public sector, distribution/services, and in social
infrastructure, leading to an increase in orders.
In the financial sector, the Group provides core system development services for customers in thebanking industry and life and non-life insurance businesses. The Group achieved expanded sales not only
in long-term development work in areas such as contract management systems and accounts systems, butalso by expanding its scope of services to include Internet banking and new systems such as theconstruction of data utilization infrastructures.
In the public sector, sales increased due to the expansion of projects related to taxpayer identification
numbers (My Number) and education. New projects are being acquired in the areas of systemdevelopment, infrastructure construction, and operation and maintenance. Going forward, the Group willcontinue to actively develop these as new pillars of this business.
In addition, for general corporate clients, the Group won commissioned development projects andadvanced proposals for business improvement projects using DX solutions. The Group’s total system
support proposals, from proof of concept support in the system planning stages to operations after systemdevelopment, have led to an increase in orders.
As a result, net sales in this business amounted to ¥5,143 million (up 14.3% year-on-year) andoperating profit was ¥1,014 million (up 31.5% year-on-year).
c. IT Service BusinessAs more and more companies, regardless of industry, are promoting DX and reforming work styles, there
is movement to restructure and optimize existing IT environments, leading to expanding demand for IT
outsourcing, including IT support services for companies that are creating new business models.
Under these circumstances, the Group focused its efforts in its core businesses, providing services
directly related to accelerating its customers’ business growth. These core businesses consist of not only
contract IT support and PMO services, including assessment and consulting, leveraging the Group’s
experience in addressing customer demands by responding to changes in the environment, but also IT
solution sales for IT training, security services, and more.
In the software testing services business, the Group worked to expand orders and improve profitability
by offering testing services across all processes, from quality control process consulting to debugging, tocustomers who provide web content/applications in a B2B2C model.
In addition, the Group established a new location to promote engagement of persons with disabilities
and actively invested in the hiring and training of talented human resources throughout this business tofurther expand its business and improve profitability.
With regard to its measures against COVID-19 within this business, the Group continues to shift from afull-time, on-site work style to telecommuting and remote service provision, utilizing inbound sales in its
sales activities.
As a result, net sales in this business amounted to ¥15,690 million (up 14.8% year-on-year) andoperating profit was ¥2,197 million (up 17.3% year-on-year).
d. Business Solution BusinessIn this business, where the Group is mainly engaged in B2B sales of IT-related products and system
integration services mainly for foreign-affiliated and medium-sized companies, projects addressing theshift to digital technologies began to gradually gain traction in the continuing difficult environment amid
the COVID-19 pandemic.
-4-Specifically, the system integration business was able to win a number of orders for virtualized
infrastructure replacements with core system functions, server relocations, and lift and shift, a type ofcloud migration.
In addition, the Group successfully won orders for system development and maintenance and operation
projects responding to the shift to digital technologies by strengthening cooperation with the DX
Promotion Department, which handles RPA and data linkage tools integrated at the beginning of the fiscal
year under review.
However, due to the continued difficulty in procuring IT equipment such as PCs, servers, storage, andnetwork equipment due to a worldwide shortage of semiconductors in addition to prolonged businessnegotiations amid the COVID-19 pandemic, hardware sales declined, resulting in net sales of ¥22,290
million (down 0.2% year-on-year) and operating profit of ¥1,436 million (down 4.2% year-on-year) in thisbusiness.
e. Cloud BusinessIn this business, where the Group provides cloud solutions and original services to companies and otherentities, the Group received many inquiries for its Canbus.3,4 DX platform from companies urgently
seeking work style reforms, including telecommuting. In particular, the Group not only sold licenses tocompanies seeking to shift to data-driven operations, but also received many orders for integration
projects, including operational system replacement and system integration. Amid this situation, the Group
accelerated its launch of new functions and alliances to help more companies achieve DX. Going forward,
the Group will continue to promote aggressive investment and sales reinforcement in this priority offeringarea.
In addition, inquiries for the Cloudstep3 groupware, integrated with Google Workspace and Microsoft
365, have been very strong for rebuilding groupware architecture suited to work styles amid the COVID19 pandemic. Amid these circumstances, a factor differentiating the Group from its competitors andgenerating orders is system integration, an area of strength for the Group.
As a result, net sales in this business amounted to ¥1,804 million (up 21.6% year-on-year) and operating
profit was ¥406 million (up 35.3% year-on-year).
3 Canbus. and Cloudstep are original Systena services.
4 “Canbus.” in the Japanese market is pronounced canbus dot.
f. Overseas Business
The Company’s U.S. subsidiary enjoyed strong orders for additional development of new DX-based
operational improvement application functions, including continuing orders from existing Japaneseaffiliated customers in the manufacturing industry, thanks to aggressive sales activities despite the
COVID-19 pandemic. AI and IoT projects have also realized operational efficiency improvements at local
factories in the United States, etc., and the subsidiary has begun to receive orders under subscription
models. The subsidiary has also received repeat orders for proof of concept development and verification
where Japanese-affiliated firms check the effectiveness of elemental technologies held by Silicon Valley
start-up companies. In addition, Canbus. is earning a track record of implementation thanks to its sales as a
DX solution.
Furthermore, ONE Tech, Inc., a U.S. company with capital contribution from the subsidiary has enteredinto a partnership agreement with Renesas Electronics Corporation and others to provide its MicroAI™
proprietary AI, and has formed alliances with several microcontroller unit (MCU) manufacturers and isactively engaged in joint sales.
StrongKey, Inc., another U.S.-based company the subsidiary has invested in, is promoting sales
activities for Tellaro, its enterprise security product, and is focusing on eliciting new inquiries and winningongoing orders from client companies based on its capabilities in data encryption and strong
authentication.
In this business, which is still in the investment stage, net sales amounted to ¥176 million (down 6.5%
year-on-year) and operating loss was ¥9 million (versus operating profit of ¥7 million in the previous fiscal
year).

-5-

g. Investment & Incubation BusinessIn order to promote sales of U.S.-based ONE Tech, Inc’s MicroAI™ IoT edge computing AI technology,
ONE Tech Japan, Inc. worked with the U.S. subsidiary to prepare for online rollout of the MicroAI™
SDK.
GaYa Co., Ltd., which provides development and operations for mobile game content, operates social
games developed in-house and designs and develops business applications for smartphones and tablets. In
the fiscal year under review, development of the new horse racing game application Keiba Densetsu
PRIDE proceeded as planned, with a closed beta test conducted in March and development continuing
diligently based on the feedback obtained from this test. Commissioned development for businessapplications has also moved into operation phases, as the organization works to promote horizontal
deployment.
As a result, net sales in this business amounted to ¥171 million (down 3.6% year-on-year) and operating
loss was ¥72 million (versus operating loss of ¥71 million in the previous fiscal year).
(ii) Forecast for the next fiscal year
The outlook for the next fiscal year by segment is as follows.
Within the Solution Design Business, the Group will focus on the In-Vehicle, Social Infrastructure,
Internet Business, Smart Devices/Robotics/AI, and DX Services areas, making greater efforts to promote
near-shore development using regional bases and off-shore development in Vietnam and working to further
expand orders and improve profitability.
In the In-Vehicle area, in addition to strengthening relationships with automotive-related companies anddeveloping in-vehicle infotainment, telematics, and electronic control units (ECUs), areas of particularstrength, the Group will focus on expanding its mobility services business harnessing the strength of its
expertise in 5G and artificial intelligence (AI).
In the Internet Business area, the market for telecommunications carrier services, e-commerce, e-books,
and other Internet services, as well as cashless payments, is expected to expand as 5G enters a phase of fullscale penetration. Here, as the market expands, the Group is receiving many inquiries not only for technicalsupport services, like development and quality verification, but also for service support such as service
direction and operation. Going forward, the Group will actively work not only on development but also on
these services overall.
In the Social Infrastructure area, in addition to development and quality verification related to 5G
infrastructure equipment, the Group will expand and enhance its services to include maintenance andoperation ahead of 5G coverage area expansion. The Group will also actively engage in proof of concept
testing for smart cities and other projects by utilizing its expertise in IoT and AI.
In the Smart Devices area, the Group will harness its strong track record in smartphone development
services to aggressively develop quality verification services related to 5G, IoT, AI services, and more amid
increasing inquiries about web services and IoT-related services, in addition to development and quality
verification for various products such as smartphones, game consoles, and payment terminals.
In the Robotics/AI area, the Group will utilize its strong expertise in communication robots to continue tostrengthen its sales activities with regard to medical robots, industrial robots, and lifestyle robots associatedwith long-term care and daily life. In addition, as the spread of COVID-19 changes the way people work, theGroup expects demand in the areas of RPA and robotics to increase, and the Group will provide technicaland service support in robotics to help grow orders received.
In the DX Services area, enterprises are urgently tasked with improving productivity and operational
efficiency, partly due to soaring raw material prices. Amid this increasing demand, the Group will not only
promote the application of DX to its clients’ B2B systems, but also differentiate itself from competitors bydeveloping a wider range of in-house services and products to address emergent and latent issues faced byclients in order to grow orders received and improve profitability.
Regarding the status of the Group’s response to COVID-19 and its impact on activities within thisbusiness, the Group has shifted to telecommuting in each business area, successfully mitigating risks so as toensure the continuation of business. However, on the short term, there is the potential of temporary order
postponement in operational support that is more challenging to provide on a telecommuting basis. This is ofparticular concern for some operations in the In-Vehicle, Social Infrastructure, and Robotics/AI businesses.
In addition, the area of business systems is susceptible to customer cost-cutting and investment limitations,-6-and likewise, there are concerns about order postponement over the short term. On the other hand, inquiries
for the Internet Business and 5G-related services remain strong even under today’s conditions. Amid thesecircumstances, this business will engage in selection and concentration, with the goal of shifting to areas
where demand is greater.
In the Framework Design Business, the Group is expanding business in the public and corporate sectors bydeploying business system development expertise it has cultivated in the financial sector. Going forward, theGroup will continue to maximize its current services and aggressively develop business, promoting sales
activities and human resource development in line with market trends.
Within the existing system development business, the Group will expand its offerings for business
operators in retail, distribution, and Internet services in addition to the ongoing large-scale financial (life andnon-life insurance) and public sector projects, aggressively pursuing business development utilizing theGroup’s development expertise.
In the infrastructure-related business, the Group is expanding its business with a focus on technicalsupport for the introduction of public cloud ecosystems. The Group expects the need for cloud-related
technical support to continue, and will continue to actively cultivate personnel for further businessexpansion.
In the DX-related business, inquiries for operational improvement projects utilizing DX solutions are
increasing. The Group will focus on training professional engineers for building system integration
infrastructure with DX solutions at its core. In addition, the Group is expanding development projects forcore system renewal (mainframe migration) and cloud-native systems (serverless systems), and will continue
to aggressively pursue orders for DX-related projects.
As its sales policy, the Group will continue to maximize utilization of online environments to expand
proposal opportunities and improve customer response speed, with an eye to maintaining business in the
COVID era.
In the IT Service Business, demand is expected to expand for IT support services, software testing services,and other IT outsourcing services as more and more companies, regardless of industry engage in DX
promotion and reform of work styles.
Amid these circumstances, the Group leveraged its track record in IT support and deployed its
management resources to the growing field of DX. Going forward, the Group will focus on providing
services more directly connected to client business growth by evolving its lineup from simple helpdesk andother IT support services to project management office (PMO) and internal IT infrastructure improvement
proposals.
In software testing services, the Group has worked to expand orders and improve profitability in testing
services provided across all processes, from quality control process consulting to debugging, to customers
who provide web/application-related solutions in a B2C model. As the Group expands its business in the
B2B2C domain going forward, it will also focus on expanding services by offering its software testing
expertise to B2B customers supporting social infrastructure.
With regard to promoting engagement of persons with disabilities, the Group will focus on acquiring awide range of service projects, primarily in business process outsourcing (BPO), and promote the creation ofan environment in which they can engage in higher value-added work by better grasping the characteristics
and individual traits of each person.
In addition, the Group will create new IT service solutions and improve profitability by developing newservices and expanding the scope of support through alliances with Group companies and partner companies
and by strengthening inside sales.
In the Business Solution business, despite a sense of future uncertainty due to a prolonged COVID-19
pandemic, product delays caused by semiconductor supply shortages, and soaring commodity prices due tohigh resource prices, enterprises are expected to maintain steady investment in IT, tackling new work styles
in the COVID era and using DX to improve productivity, cut costs, and build competitiveness.
In this business, the Group will expand its solution services to address these economic issues and those of
its customers.
Specifically, the Group will shift its focus from product-oriented businesses to service businesses and-7-

further strengthen its recurring revenue businesses, centered on subscription businesses and support services.
As an area of particular focus, the Group will expand its services and enhance its support structure toensure security on the whole, not only at endpoints.
In addition, since robust growth is expected in the infrastructure business, the Group will work to provide
higher value-added services, such as modernizing legacy infrastructure and providing hybrid environments
integrated with the cloud.
The DX Promotion Department (system development division), which handles RPA and data linkage tools
integrated in the previous fiscal year, will further promote cloud migration, which saw significant growth in
the last fiscal year. It will also provide rapid development services utilizing application restructuring anddata linkage tools in addition to conventional system development to further promote expansion.
This will allow the Group to continue to improve the services it offers to customers, transforming it intoa system integrator and improving profitability.
In the Cloud Business, the Group is working to strengthen sales of Canbus., a solution realizing data-driven
operations by creating databases of various operations, including customer relationship management (CRM),
recruitment management, and human and other resource management. This solution is designed to help
drive changes in corporate management, who are tasked with transformation amid impact of the spread of
COVID-19. In these days of ever-accelerating DX with an eye to the post-COVID world, the Group willcontinue to make upfront investments to strengthen its services and increase awareness, laying thefoundation for business growth and developing new services. The Group will also strengthen its existing
Cloudstep service in order to further improve profitability.
In the Overseas Business, the U.S. subsidiary will promote sales to enterprises worldwide through theprovision of the MicroAI™ AI solution in cooperation with solution provider ONE Tech, Inc., also based in
the United States and a company with capital contribution from the subsidiary. The Group will also aim to
expand Canbus., provided by its Cloud Business, to the U.S. market. The Group intends to continue
operating in the black thanks to expansion of collaborative projects with these investees and robust demand
for technical support from Japanese-affiliated companies in the United States.
In the Investment & Incubation Business, GaYa Co., Ltd. plans to release horse racing game Keiba Densetsu
PRIDE in the summer of 2022, a game planning and development project, and will focus on the operationof this title. In non-game application development utilizing game development technology, the Group will
promote a full stack of services, from design to development to support.
Based on the above, the Group forecasts consolidated results for the next fiscal year of net sales of ¥71,450
million, operating profit of ¥10,280 million, ordinary profit of ¥10,280 million, and profit attributable toowners of parent of ¥7,000 million.
(2) Overview of financial position for the period under review(i) Analysis of assets, liabilities and net assets
Total assets at the end of the fiscal year under review amounted to ¥43,477 million (versus ¥38,886 million
at the end of the previous fiscal year), an increase of ¥4,590 million from the end of the previous fiscal year.
Current assets amounted to ¥38,002 million (versus ¥33,420 million at the end of the previous fiscal year),an increase of ¥4,581 million from the end of the previous fiscal year. This was mainly due to a ¥2,619
million increase in cash and deposits, a ¥1,497 million increase in notes and accounts receivable - trade, andcontract assets (compared to notes and accounts receivable - trade at the end of the previous fiscal year), anda ¥319 million increase in merchandise.
Non-current assets amounted to ¥5,475 million (versus ¥5,465 million at the end of the previous fiscal
year), an increase of ¥9 million from the end of the previous fiscal year. Property, plant and equipment
amounted to ¥1,058 million (versus ¥917 million at the end of the previous fiscal year), an increase of ¥140
million from the end of the previous fiscal year. Intangible assets amounted to ¥278 million (versus ¥307
million at the end of the previous fiscal year), a decrease of ¥29 million from the end of the previous fiscal
year. Investments and other assets amounted to ¥4,138 million (versus ¥4,240 million at the end of theprevious fiscal year), a decrease of ¥102 million from the end of the previous fiscal year. This was mainly-8-due to a ¥498 million increase in allowance for doubtful accounts (the balance of investments and otherassets decreased due to the allowance) and a ¥527 million increase in leasehold and guarantee deposits.
Total liabilities amounted to ¥13,303 million (versus ¥12,889 million at the end of the previous fiscal
year), an increase of ¥414 million from the end of the previous fiscal year. This was mainly due to a ¥439
million increase in accounts payable - trade, a ¥203 million increase in accounts payable - other, and accrued
expenses, and a ¥155 million decrease in income taxes payable.
Net assets amounted to ¥30,173 million (versus ¥25,996 million at the end of the previous fiscal year), an
increase of ¥4,176 million from the end of the previous fiscal year. This was mainly due to profit attributableto owners of parent of ¥5,992 million and dividends of surplus of ¥1,945 million.
As a result, the equity-to-asset ratio increased 2.6 percentage points from the end of the previous fiscal
year to 68.5%.
(ii) Analysis of cash flows
Cash and cash equivalents (“net cash”) at the end of the fiscal year under review amounted to ¥21,964
million, up ¥3,089 million from the end of the previous fiscal year.
The following outlines the status and underlying change factors of each classification of cash flows for the
fiscal year under review.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥5,544 million (versus ¥7,205 million provided in theprevious fiscal year). The main inflows were profit before income taxes of ¥8,578 million, an increase inallowance for doubtful accounts of ¥460 million, an increase in trade payables of ¥438 million, anddepreciation of ¥429 million. The main outflows were income taxes paid of ¥2,816 million and an increasein trade receivables of ¥1,494 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥559 million (versus ¥1,562 million used in the previous
fiscal year). The main outflows were ¥17,158 million for purchase of investment securities, ¥545 million for
payments of leasehold and guarantee deposits, and ¥519 million for purchase of property, plant andequipment and intangible assets. The main inflows were ¥17,127 million in proceeds from sale ofinvestment securities and ¥374 million in proceeds from withdrawal of time deposits.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥1,905 million (versus ¥1,983 million used in the previous
fiscal year). The main outflow was dividends paid of ¥1,938 million.
Trends in the Group’s cash flow indicators are shown below.
Fiscal year ended
Fiscal year ended
Fiscal year ended
March 31, 2020
March 31, 2021
March 31, 2022
Equity-to-asset ratio (%)
63.0
65.9
68.5
Equity-to-asset ratio on a market value
394.8
550.9
384.0
basis (%)
Ratio of interest-bearing debt to cash flows
32.1
21.5
28.0
(%)
Interest coverage ratio (times)
663.8
1,022.4
777.6
Equity-to-asset ratio: Shareholders’ equity ÷ Total assets
Equity-to-asset ratio on a market value basis: Market capitalization ÷ Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt ÷ Cash flows
Interest coverage ratio: Cash flows / Interest payments
 For each indicator, all calculations are based on consolidated financial figures.
 Market capitalization is calculated by multiplying the number of shares outstanding minus the numberof treasury shares by the closing stock price, both as of the end of the fiscal year.
 Interest-bearing debt is all debt on the consolidated balance sheet for which interest is paid.
 Cash flows and interest payments refer to “Cash flows from operating activities” and “Interest paid”
as reported in the consolidated statement of cash flows.

-9-(3) Basic policy on profit distribution and dividends for the fiscal year under review and the next fiscal year
The Company recognizes that returning profits to shareholders is one of its most important management issues,and its basic policy is to distribute profits in accordance with business performance, with a foundation of
ongoing, stable dividends.
The Company will be proactive in targeting a consolidated dividend payout ratio of 40% or more, taking into
consideration its business performance and financial position for each fiscal year, as well as the strengtheningof its management base and future business development.
The Company will also flexibly implement share repurchases as part of its profit return policy, taking into
consideration such factors as its financial condition and stock price trends.
The Company implemented a four-for-one stock split of its common stock, effective December 1, 2021, inorder to lower the amount required per investment unit of stock, increase the liquidity of the Company’s stock,and further expand its investor base.
For the fiscal year under review, the Company plans to pay an annual dividend of ¥6 per share, calculated on
the assumption that the stock split had been conducted at the beginning of the fiscal year. This consists of ayear-end dividend of ¥3.5 per share (after stock split) and an interim dividend of ¥10 per share (before stock
split).
Retained earnings will be effectively used for investment in business fields where growth is expected,
research and development of in-house products, and strengthening of recruitment and training of humanresources in line with business expansion.
For the next fiscal year, the Company plans to pay an annual dividend of ¥8 per share (consisting of aninterim dividend of ¥4 per share and a year-end dividend of ¥4 per share).
Note that the Company’s Articles of Incorporation stipulate that the Company may pay dividends fromsurplus, etc. by resolution of the Board of Directors pursuant to Article 459, Paragraph 1 of the Companies
Act.
(4) Business and other risks
The following is a list of major risk factors that may affect the Group’s business development. While it is theGroup’s policy to recognize the possibility of the occurrence of these risks and to make every effort to avoid
their occurrence and to address any that may occur, the Group believes that investment decisions regarding thisstock should be made after careful consideration of the following content provided in this section as well asother matters listed.
This section includes forward-looking statements reflecting judgments made as of the end of the fiscal year
under review.
(i) Management of confidential information
Since many of the Company’s operations require a high degree of confidentiality in terms of both technology
and sales strategy and information security is becoming increasingly important, the Company has obtained
ISO 27001 certification, the international standard for information security management, and is taking
rigorous action to ensure this certification is applied and enforced.
If, despite these actions, information leaks were to occur, the Company could face compensation fordamages, decreasing business orders due to loss of trust, and other significant effects on the business, which
could affect the Group’s performance and financial position.
(ii) Legal regulations
The legal regulations surrounding the Group’s business are as follows.
a. Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors
This law specifies the obligation to deliver an order form, to prepare and preserve documents, to specify adue date for payment of subcontract proceeds (the obligation to pay within 60 days after delivery orprovision of services), to pay interest on late payment, etc., when a corporation with capital of over ¥300
million subcontracts to a corporation with capital of ¥300 million or less.
The law was amended in June 2003 (effective April 1, 2004) to add subcontracting for the creation of
information-based products (programs, broadcast programs, etc.), provision of services, and manufactureof metal dies to the scope of the law. As a result, subcontracting transactions for the creation of
information-based products (programs) related to the Group are covered and subject to legal regulations.
b. Act on Securing the Proper Operation of Worker Dispatching Businesses and Protecting Dispatched
Workers (“Worker Dispatching Act”)- 10 -

The purpose of this act is “to take measures for securing proper operation of a worker dispatching businessfor the proper adjustment of labor demand and supply, in conjunction with the Employment Security Act,as well as measures for protecting dispatched workers, and thereby to contribute to the stability of
employment and otherwise to the promotion of the welfare of dispatched workers” (Article 1). In
accordance with this act, the Group has been licensed for general worker dispatching business. Reasons fordisqualification of license for general worker dispatching are stipulated in the items of Article 6 of this act.
Furthermore, Article 14 of this act stipulates that if a general worker dispatching business operator(including its officers) falls under any of the items of Article 6 of the act after license registration, theMinister of Health, Labour and Welfare may rescind the license granted to said general worker dispatchingbusiness operator. Article 14 also stipulates that, when a general worker dispatching business operator
violates the provisions of the act or the Employment Security Act, or any orders or dispositions based onthese provisions, the Minister of Health, Labour and Welfare may order the operator to suspend all or partof the relevant worker dispatching business for a designated period of time.
In addition, the Group submits business reports and settlements of accounts associated with worker
dispatching to the Minister of Health, Labour and Welfare in accordance with this act.
Since the Group has established a system that complies with laws and regulations, and its officers arealso committed to compliance with laws and regulations, there are currently no factors present that could
hinder business activities. Although the Group will continue to make every effort to comply with laws andregulations, any violation of laws and regulations may lead to restrictions on its business, which could
affect the Group’s performance.
(iii) Impact from the spread of COVID-19
Since February 2020, when the issue of the spread of COVID-19 began to enter the public eye, the Grouphas been promoting infection control and business continuity measures in preparation for a worst-casescenario. Infection control measures include the installation of alcohol sanitizers for hand disinfection at theentrances to all rooms at not only the head office but all business locations, and mask recommendations havebeen put in place. In particular, in places where more than a certain number of people gather, companies
distributed masks and established maximum possible social distance to prevent infection caused by physicalcontact and speaking.
Based on guidance from industrial physicians and internal resident nurses, employees are provided withongoing guidance for health management, including daily body temperature checks. Those employees who
are not feeling well are suspended from commuting to work from initial stages so as to ensure clusters do notform within companies. Simultaneously, the Group took action to implement telecommuting, including
procurement of laptop computers and other hardware, introduction of web conferencing systems and remote
access tools for internal systems. Employees who are able to work from home are gradually transitioning totelecommuting. In addition, the Group is revising various internal rules and regulations and improving thedegree of freedom employees have in the work hours in order to achieve a flexible work system in responseto government policies and requests. Furthermore, to mitigate information security risks arising from thedispersion of work locations, the Group is strengthening employee training and clarifying guidelines andrules for establishing a telecommuting environment.
In addition, the Group has partnered with a hospital to provide dedicated online medical care for
employees, not only to prevent the spread of the virus, but also to create a system that enables early detection
and rapid response in the event of an outbreak.
As a result of these measures, the Company is now able to continue business operations equivalent tonormal operations.
(5) Issues to be addressed
Impact from COVID-19 is gradually subsiding and the environment is finally becoming conducive topromoting proactive management toward a post-COVID era.
The question of how quickly formerly-stagnant projects can be launched will make the difference between
winning and losing in achieving the medium-term plan.
Another important factor in achieving the Group’s goals is to present product alternatives amid a furtherdisrupted supply chain from the conflict in Ukraine and the resulting shortages of semiconductors and manyother kinds of products, and to promote business negotiations in a beneficial manner.
Despite a subsiding pandemic, the remote work-driven changes in business style are expected to largely- 11 -

remain in the post-COVID era, and the Group sees the key to achieving its medium-term plan as capturing
the accelerating trend of promoting digital transformation (DX)* in business scenes, driven by digitaltechnologies like networks and cloud computing.
With regard to recruitment plans, amid a freeze on hiring within the service and air transportation industries,
the Group has been able to secure excellent talent with strong service mentalities inherent to these industries,
and has been proactively recruiting with the mindset that “tough times bring opportunity,” taking advantageof the strong opportunity to increase hiring rates for women as the Group builds a stronger IT services
business.
After the long tunnel of deflation following the collapse of the bubble economy in the early 1990s, the global
economy has quickly entered an era of inflation.
Business styles flip entirely between times of deflation and inflation.
While latecomers have the advantage in times of deflation, the Group believes that the strongest strategy
for inflation is to be first in line.
However, blindly scrambling for first mover advantage under high-cost inflation can be fatal. Here, thekey question is where to break out from the crowd. The Group believes that, now more than ever, it needs toallocate management resources and apply a higher level of selection and concentration in investment areas.
In line with this management strategy, the Group will further accelerate the scrap and build cycle forbusinesses, part of the Company’s basic management policy, and rapidly allocate management resources tomarkets within growth areas where the Group can leverage its strengths and win.
In line with this policy, the Group will also change its sales tactics. In addition to strengthening its own
traditional sales capabilities, the Group will actively promote alliances with sales-capable partners tostrengthen sales of its own products and services.
In human resource development policy, the Group will also shift away from its traditional milestone-based
training to an on-the-job style so as to rapidly make its large number of hires a competitive force in themarket.
The Group has been working on a project to promote management reform through data management for the
past five years. In this project, it worked to build a system using the Group’s Canbus. product. This
implementation began in FY2019 and, after a number of revisions during the project, full-scale operations
were launched in FY2020.
This has fully eliminated the multiple hundreds of millions of yen in annual in-house system operating
costs, and has allowed each division free operation and the real-time acquisition of all the data necessary forbusiness management, including utilization data, order management data, profit management data, engineer
skill data, customer management data, and per-employee earnings management data. This data has been usedin conjunction with graphing and aggregation table creation functions to visually track the Group’s
management.
The Solution Design Division, whose main business is design consulting and development of DX systems,
achieved a profit margin twice that of five years ago as a result of the introduction of data management
systems seeking to improve productivity through reducing wasteful operations, improving order accuracy,
and thorough technical management.
The Group will turn inflation into an opportunity to make great leaps forward through decisive strategies
capitalizing on first mover advantage and data management in order to achieve its medium-term plan targetsof ¥101 billion in net sales and ¥15.2 billion in operating profit for the fiscal year ending March 31, 2025.
* Digital transformation (DX) is the concept of improving all aspects of life and business throughpermeation of information technologies.

- 12 -

2. Corporate group

3. Basic approach to the selection of accounting standards
Since most of the Group’s stakeholders are domestic shareholders, creditors, business partners, etc., and there islittle need to raise funds from overseas, the Group applies accounting standards that are generally accepted inJapan (J-GAAP).

- 13 -

4. Consolidated financial statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Contract assets
MerchandiseWork in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable from subsidiaries andassociates
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets*1- 14 -

As of March 31, 2022

19,037
12,826
–
–
–
831
3
722
(1)
33,42021,657–766
12,861
695
1,151
–
880
(11)
38,002

614
(312)
302
61
(33)
28
1,669
(1,190)
478
97
6
11
(6)
4
917

741
(343)
398
95
(26)
68
1,898
(1,408)
489
97
–
11
(8)
3
1,058

286
18
2
307

270
5
2
278

1,891

*1

1,775

698

575

986
710
30
(76)
4,240
5,465
38,886

1,513
817
30
(575)
4,138
5,475
43,477

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - other, and accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term accounts payable - other
Provision for share-based compensation
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets*2- 15 -

5,257
1,550
1,872
1,681
850
1,227
0
305
12,746

As of March 31, 2022

*2

5,696
1,550
2,076
1,525
791
1,348
–
186
13,175

61
66
15
143
12,889

16
97
14
128
13,303

1,513
6,010
23,261(5,052)25,734

1,513
6,025
27,309(5,042)29,806

(16)
(85)
(102)
364
25,99638,886

(25)
(18)
(43)
411
30,17343,477

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of investment securities
Compensation income for damage
Subsidy income
Commission income
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of investment securities
Share of loss of entities accounted for using equity
methodProvision of allowance for doubtful accounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent*2*3, *4*5

Fiscal year ended
March 31, 2022

60,87146,49814,372
6,365
8,006*3, *465,27249,144
16,127
7,020
9,106

14
6
262
0
23
1
–
39
348

15
15
–
–
31
1
58
21
145

7
–

7
47

748
73
4
14
847
7,507
7,507
2,575
(106)
2,468
5,038
64
4,974

- 16 -

*1

*5

144
450
–
23
673
8,578
8,578
2,650
(103)
2,547
6,030
38
5,992

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests*1- 17 -

Fiscal year ended
March 31, 2022

5,038

6,030

(18)
19

(9)
82

(20)

(15)

(20)
5,018

*1

58
6,089

4,953

6,050

64

38

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

1,513

6,045

20,232(5,055)

Total shareholders’equity22,736

Changes during period
Dividends of surplus
Profit attributable to ownersof parent(1,945)(1,945)

4,974

4,974

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

3

3

Change in ownership interest(35)

of parent due to transactions(35)

with non-controlling interests
Net changes in items otherthan shareholders’ equity
–

(35)

3,029

3

2,997

1,513

6,010

23,261(5,052)25,734

Total accumulated

Non-controllingother comprehensive

interests

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period

2Foreign currencytranslation adjustment(84)

Total net assets

income(81)

300

22,955

Changes during period(1,945)

Dividends of surplus
Profit attributable to owners

4,974

of parent
Purchase of treasury shares(0)

Disposal of treasury shares

3

Change in ownership interest(35)

of parent due to transactions
with non-controlling interests
Net changes in items other

(18)

(1)

(20)

64

43

Total changes during period

(18)

(1)

(20)

64

3,041

Balance at end of period

(16)

(85)

(102)

364

25,996than shareholders’ equity- 18 -

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

1,513

6,010

23,261(5,052)

Total shareholders’equity25,734

Changes during period
Dividends of surplus
Profit attributable to ownersof parent(1,945)(1,945)

5,992

5,992

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

99Sale of shares of consolidated

15

subsidiaries

15

Net changes in items otherthan shareholders’ equity
–

15

4,047

9

4,072

1,513

6,025

27,309(5,042)29,806

Total accumulated

Non-controllingother comprehensive

interests

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period(16)

Foreign currencytranslation adjustment(85)

Total net assets

income(102)364

25,996

Changes during period(1,945)

Dividends of surplus
Profit attributable to owners

5,992

of parent
Purchase of treasury shares(0)

Disposal of treasury shares

9

Sale of shares of consolidated

15

subsidiaries
Net changes in items other

(9)

67

58

46

104

Total changes during period

(9)

67

58

46

4,176

Balance at end of period

(25)

(18)

(43)

411

30,173than shareholders’ equity- 19 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for share-based
compensation
Increase (decrease) in long-term accounts payable other
Interest and dividend income
Interest expenses
Loss (gain) on investments in investment partnerships
Loss (gain) on sale of investment securities
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Loan advances
Proceeds from collection of loans receivable
Purchase of investment securities
Proceeds from sale of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Proceeds from distributions from investment
partnerships
Other payments
Other proceeds
Net cash provided by (used in) investing activities- 20 -

Fiscal year ended
March 31, 2022

7,507
356
72
(11)

8,578
429
460
120

35

31

(4)

(44)

(20)
7
(12)
(262)

(31)
7
(58)
47

748

144

1,147
292
4
(606)

(1,494)
(315)
(22)
438

72

141

109
89
(1)
9,524
27
(7)
(2,339)
7,205

(58)
(116)
71
8,328
39
(7)
(2,816)
5,544

(323)
–

(0)
374

(442)

(519)

9

26

(0)
1
(20,839)
20,055(91)(2)
0(17,158)
17,127
(545)

45

18

23

122

(2)
3
(1,562)

(4)
0
(559)

(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from financing activities
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Proceeds from sale of shares of subsidiaries
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 21 -

Fiscal year ended
March 31, 2022

(35)

–

–
(0)
3
(1,951)(1,983)22(0)
9(1,938)(1,905)

(5)

11

3,653
15,221
18,875

3,089
18,87521,964*1

(5) Notes to the consolidated financial statements(Notes on premise of going concern)
No items to report.
(Significant matters that serve as the basis for preparing consolidated financial statements)
1. Matters concerning scope of consolidation(1) Number of consolidated subsidiaries: 10 companies
Names of consolidated subsidiaries
ProVision Co., Ltd.
Tokyoto Business Service Co., Ltd.
GaYa Co., Ltd.
IDY Corporation
TBSOPERATION CO., LTD.
Systena America Inc.
Systena Vietnam Co., Ltd.
ONE Tech Japan, Inc.
and two other companies(2) Names of unconsolidated subsidiaries
No items to report.
2. Matters concerning the application of the equity method(1) Number of associates accounted for by the equity method: 3 companies
HIS Holdings, Inc.
StrongKey, Inc.
ONE Tech, Inc.
(2) Names of significant associates not accounted for by the equity method
No items to report.
(3) Of the companies accounted for by the equity method, three companies (HIS Holdings, Inc.,
StrongKey, Inc. and ONE Tech, Inc.) have a different account closing date from the consolidated
account closing date. The fiscal year end for HIS Holdings, Inc. is August 31, and in preparing theconsolidated financial statements, the Company uses financial statements based on a provisional
settlement of accounts conducted as of February 28. Necessary adjustments are made forsignificant transactions that occurred between this date and the consolidated account closing date.
The fiscal year end for StrongKey, Inc. and ONE Tech, Inc. is June 30 and December 31,
respectively. In preparing the consolidated financial statements, the Company uses financial
statements based on a provisional settlement of accounts conducted on the consolidated accountclosing date.
(4) Treatment of amounts equivalent to goodwill
The amount of goodwill resulting from the application of the equity method for U.S. associates isamortized on a straight-line basis over a period not exceeding 10 years.
3. Matters concerning fiscal year, etc. of consolidated subsidiaries
The account closing date of consolidated subsidiaries is the same as the consolidated account closing
date.
4. Matters concerning accounting policies(1) Valuation standards and valuation methods for significant assets(i) Securities
Available-for-sale securities
Securities other than stocks and other securities with no market priceStated at fair value (All valuation differences are processed by the direct net assets method, andselling cost is calculated using the moving average method)
Stocks and other securities with no market priceStated at cost determined by the moving average method
Investments in limited liability investment partnerships are accounted for based on the most recent
financial statements available according to the financial reporting date stipulated in thepartnership agreement, and the amount equivalent to the Company’s equity interest in the- 22 -

partnerships is included at the net amount.
(ii) Inventories
MerchandiseStated at cost determined by the moving average method (Calculated by writing down bookvalues based on decreased profitability)
Work in process
Stated at cost determined by the specific cost method (Calculated by writing down book values
based on decreased profitability)(2) Method of depreciation and amortization of significant depreciable assets(i) Property, plant and equipment (excluding leased assets)
Declining-balance method (However, the straight-line method is adopted for buildings (excluding
facilities attached to buildings) acquired on or after April 1, 1998, and facilities attached to buildings
and structures acquired on or after April 1, 2016)
The useful lives and residual values of assets are determined based on the standards stipulated in
the Corporation Tax Act. Assets with an acquisition cost of ¥100,000 or more but less than¥200,000 are amortized equally over three years.
(ii) Intangible assets (excluding leased assets)
Straight-line method
Software for internal use is amortized by the straight-line method over the estimated useful life (5years). Software intended for market sale is amortized by the larger of amortization based on theestimated sales revenue over the estimated sales period (within 3 years) or equal amortization over
the remaining salable period.
(iii) Long-term prepaid expenses
Amortized based on the straight-line method(3) Standards for recognition of significant allowances and provisions(i) Allowance for doubtful accounts
The estimated irrecoverable amount based on historical default rates for general receivables andindividual assessments of recoverability for doubtful and other specific receivables is posted toprovide for losses on default of receivables.
(ii) Provision for bonuses
To provide for payment of bonuses to employees, an amount is recorded based on the accrued
burden for the respective fiscal year in question that is the portion of the estimated amount ofbonuses to be paid.
(iii) Provision for loss on orders received
To prepare for future losses related to order contracts, an estimated loss amount is recorded forcontracts where this amount can be reasonably estimated.
(iv) Provision for share-based compensation
To provide for the future delivery of Company shares to Directors and Executive Officers inaccordance with the Company’s rules on share delivery, the estimated payment amount is recorded
based on the points allotted to Directors and Executive Officers as of the end of the fiscal year underreview.
(4) Standards for recognition of significant revenue and expenses
The following is a description of the major performance obligations related to revenue arising fromcontracts with customers of the Company and its consolidated subsidiaries in their major businesses,
and the normal point in time at which such performance obligations are satisfied (the normal point intime at which revenue is recognized).
(i) Software and system development and IT services
In the Solution Design Business, Framework Design Business, Overseas Business, and Investment& Incubation Business, the Group mainly provides planning, design, development, and verification
support for software and system development.
In the IT Service Business, the Group mainly provides IT outsourcing services such as operation,
maintenance, and monitoring of systems and networks, as well as helpdesk services.
Contracts in this business involve transactions under contract or quasi-mandate contract, andperformance obligations are recognized as follows depending on the contract.
For transactions entered into under contract, the Company recognizes revenue based on the degreeof progress made in satisfying the performance obligation over a specified period of time.
- 23 -

For transactions under quasi-mandate contract, the Company recognizes revenue as a prorated
portion of the amount promised in the contract with the customer over the period the services areprovided, based on the judgment that the performance obligation is satisfied over time, since theCompany generally provides a certain level of services over the term of the contract.
The consideration for performance obligations is received primarily within one year after
performance obligations are satisfied, and does not include significant financial components.
(ii) Sales of merchandise
In the Business Solution Business, the Group mainly sells servers, computers, peripherals, software,and other IT-related products to enterprises. For these sales of merchandise, revenue is recognizedwhen the merchandise is delivered to the customer or at the time the customer completed inspection.
For sales of merchandise deemed as revenue for which the Group and/or its consolidated
subsidiaries are an agent, revenue is recognized at the net amount received in exchange for goods
provided by the third party less the amount paid to said third party.
In addition, the consideration for performance obligations is received primarily within one year
after performance obligations are satisfied, and does not include significant financial components.
(iii) License sales
In the Cloud Business, the Group mainly sells licenses for its in-house services, Canbus., Cloudstep,and Web Shelter, as well as for cloud-based services such as Google Workspace and Microsoft 365.
For sales of licenses for in-house services, the Company recognizes revenue over the license period
specified in the contract, based on the judgment that the performance obligation will be satisfied
over a certain period of time. For other license sales, revenue is recognized when the license is
granted to the customer.
In addition, consideration for performance obligations is received primarily within one year after
performance obligations are satisfied, and does not include significant financial components.
(5) Standards for translating significant foreign currency denominated assets or liabilities into Japanesecurrency
Receivables and payables denominated in foreign currencies are converted into yen at the spot
exchange rate on the consolidated account closing date and translation differences are posted as profit
or loss. Note that the assets and liabilities of overseas subsidiaries, etc. are converted to yen at the spot
exchange rate on the day of the consolidated account closing, while related revenues and expenses areconverted to yen at the average rate during the period. These translation differences are posted as
foreign currency translation adjustments and non-controlling interests under net assets.
(6) Scope of funds in the consolidated statement of cash flows
Cash and cash equivalents comprise cash on hand and demand deposits, and short-term investmentswith a maturity of 3 months or less from the date of acquisition that are readily convertible to cash andthat are subject to an insignificant risk of changes in value.
(Significant accounting estimates)
Progress-based revenue recognition(1) Amounts recorded in the consolidated financial statements for the fiscal year under review(Millions of yen)Previous fiscal year
Fiscal year under review
Net sales (Portion not completed)

477

632

(2) Details regarding significant accounting estimates for the identified item(i) Calculation method
For performance obligations within software and system development and IT services to be satisfied
over a certain period of time, the Company estimates the degree of progress in satisfying theperformance obligation and recognizes revenue over a certain period of time based on this degree ofprogress in satisfying the performance obligation. The method of estimating the degree of progressin satisfying performance obligations is based on the ratio of the cost incurred (man-hours) to thetotal project cost (total man-hours) (input method).
(ii) Primary underlying assumptions
Recording sales revenue recognized in accordance with the measured degree of progress insatisfying a performance obligation affects the amount of revenue and profit or loss, depending on- 24 -

the estimate of the total project cost (total man-hours). The total project cost (total man-hours) is
initially estimated in the working budget. When preparing a working budget, the total project cost(total man-hours) is estimated by setting assumptions for specifications and work content based on
information available at the time of preparation and by estimating in detail the cost (man-hours) ofeach process required to complete the development plan. After development has begun, the actual
cost incurred is managed for each project, and the total project cost (total man-hours) is reviewed ina timely and appropriate manner for changes in work content due to changes in circumstances,including additional development.
(iii) Impact on the consolidated financial statements for the following fiscal year
If the degree of work progress changes due to the occurrence of costs (man-hours) that were notforeseen in the assumptions used to estimate the total project cost, net sales and cost of sales maychange in the consolidated financial statements in the following fiscal year or later.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it
has recognized revenue at the time the control of promised goods or services is transferred to the customer
at the amount expected to be received upon exchange of said goods or services. Accordingly, mainly forsale of some licenses, while the Company had previously recognized revenue at the time the license was
granted to the customer, as of the fiscal year under review, this method was changed to recognize revenue
over the license period specified in the contract.
As a result, net sales decreased by ¥146 million, cost of sales decreased by ¥3 million, and operating
profit, ordinary profit, and profit before income taxes each decreased by ¥143 million for the fiscal year
under review.
With regard to the application of the Accounting Standard for Revenue Recognition and relevant
regulations, the new accounting policy was not applied retrospectively to the previous fiscal year, as thetransitional treatment stipulated in the proviso to Paragraph 84 of the Accounting Standard for Revenue
Recognition and the method stipulated in Paragraph 86 of the Accounting Standard for Revenue
Recognition were applied. For contracts for which revenue was recognized up to the previous fiscal year,
nearly all revenues have been recognized. Therefore, there was no adjustment to the beginning balance ofretained earnings for the fiscal year under review.
“Notes and accounts receivable - trade,” which were presented in “Current assets” in the consolidatedbalance sheet in the previous fiscal year, are presented as “Notes receivable - trade,” “Accounts receivable- trade,” and “Contract assets” in the fiscal year under review due to the application of the AccountingStandard for Revenue Recognition and relevant regulations as of the fiscal year under review. “Notes andaccounts receivable - trade” in the previous fiscal year is treated in accordance with the transitional
treatment provided for in Paragraph 89-2 of the Accounting Standard for Revenue Recognition. Figures
have not been restated in the new approach to presentation.
In accordance with transitional treatment provided for in Paragraph 83-3 of the Accounting Standard for
Revenue Recognition, notes related to revenue recognition for the previous fiscal year are not presented.
(Application of Accounting Standard, etc. for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement,
etc. prospectively in accordance with the transitional measures provided for in Paragraph 19 of the
Accounting Standard For Fair Value Measurement, and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019). This change has no impact on the
consolidated financial statements.
In addition, in the notes to “Financial instruments,” the Company elected to provide notes on items suchas the breakdown of the fair values of financial instruments by level. However, in accordance with thetransitional treatment provided for in Paragraph 7-4 of the Implementation Guidance on Disclosures about
Fair Value of Financial Instruments (ASBJ Guidance No. 19, July 4, 2019), notes are not presented foritems related to the previous fiscal year.

- 25 -

(Unapplied accounting standards, etc.)
・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
June 17, 2021)(1) Outline
With regard to the June 17, 2021 revision to the Implementation Guidance on Accounting Standard for
Fair Value Measurement (ASBJ Guidance No. 31), as of the ASBJ announcement on July 4, 2019,consideration regarding calculation of fair value of investment trusts was expected to require a certain
period of time for discussions with stakeholders, etc., and notes regarding the fair value of investmentsin partnerships, etc. recorded at the net amount equivalent to equity interest on the balance sheet
would also require a certain amount of consideration. Therefore, this implementation guidance thatwas to take around one year to consider after announcement of the Accounting Standard for Fair
Value Measurement was revised and announced accordingly.
(2) Scheduled date of application
Scheduled to be applied from the start of the fiscal year ending March 31, 2023.
(3) Effect of application of the aforementioned accounting standards, etc.
The Company is currently evaluating the effect of applying the Implementation Guidance on
Accounting Standard for Fair Value Measurement on its consolidated financial statements.
(Additional information)
Stock compensation plan
The Company has introduced a stock compensation plan for the Company’s Directors (excluding
Outside Directors) and Executive Officers (hereinafter collectively referred to as “Directors, etc.”).
1. Outline of transactions
This is a stock compensation plan under which the Company’s shares, acquired by a trust using
money contributed by the Company, are delivered to Directors, etc. in accordance with the number ofpoints granted in accordance with rules on share delivery established by the Company.
2. Company shares remaining in trust
Company shares remaining in trust are recorded as treasury shares under net assets at the carrying
value in trust (excluding the amount of incidental expenses). The book value and number of thesetreasury shares amounted to ¥736 million and 1,634,000 shares at the end of the previous fiscal year,and ¥726 million and 1,612,300 shares at the end of the fiscal year under review.

- 26 -

(On the consolidated balance sheet)
1. Items pertaining to subsidiaries and associates are as follows.
(Millions of yen)Previous fiscal year
Fiscal year under review(As of March 31, 2021) (As of March 31, 2022)
Investment securities(shares)420

456

2. Overdraft agreement
The Company and its consolidated subsidiaries have overdraft agreements with six transacting
banks in order to raise working capital efficiently.
The unused portion of the lines of credit based on these agreements is as follows.
(Millions of yen)Previous fiscal year
Fiscal year under review(As of March 31, 2021) (As of March 31, 2022)
Maximum amount of
7,260
8,260
overdraft
Outstanding balance of
1,550
1,550
overdraft
Unused amount
5,710
6,710
(On the consolidated statements of income)
1. Revenue arising from contracts with customers
Net sales are not separately presented for revenue from contracts with customers and other revenue.
The amount of revenue from contracts with customers is presented in “Information on breakdown ofrevenue from contracts with customers” under the revenue recognition section of notes to theconsolidated financial statements.
2. Provision for loss on orders received included in cost of sales(Millions of yen)
Fiscal year under review(From April 1, 2021 toMarch 31, 2022)–

Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)
0

3. Significant items and amounts of selling, general and administrative expenses are as follows.
(Millions of yen)Previous fiscal year
Fiscal year under review(From April 1, 2020 to (From April 1, 2021 toMarch 31, 2021)
March 31, 2022)
Payroll and allowances
2,228
2,312
Rent expenses
669
850
Provision for bonuses
120
111
Retirement benefit expenses
190
208
Provision for share-based
39
41
compensation
4. Research and development expenses included in general and administrative expenses(Millions of yen)
Fiscal year under review
Previous fiscal year
(From April 1, 2021 to(From April 1, 2020 toMarch 31, 2022)
March 31, 2021)
67

105- 27 -

5. Share of loss of entities accounted for using equity method
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Includes an impairment loss of ¥547 million on shares of StrongKey, Inc., an equity method
associate.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
No items to report.
(On the consolidated statement of comprehensive income)
1. Reclassification adjustments and tax effects for other comprehensive income
Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)
Unrealized gain and loss on availablefor-sale securities
Incurred during the period
Reclassification adjustments
Before tax effect adjustment
Tax effect amount
Unrealized gain and loss onavailable-for-sale securities
Foreign currency translation adjustment
Incurred during the period
Foreign currency translation
adjustment
Share of other comprehensive income ofentities accounted for using equity
methodIncurred during the period
Share of other comprehensive
income of entities accounted forusing equity method
Total other comprehensive
income- 28 -(Millions of yen)
Fiscal year under review(From April 1, 2021 toMarch 31, 2022)

235
(262)
(27)
8

(60)
47
(13)
4

(18)

(9)

19

82

19

82

(20)

(15)

(20)

(15)

(20)

58

(On the consolidated statement of changes in equity)
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1. Type and number of shares issued and treasury shares(Shares)Number of
Increase in
Decrease in
Number ofshares at theshares during the shares during the shares at the end
beginning of theperiodperiodof the period
periodIssued shares
Common shares

112,720,000––

112,720,000

Total

112,720,000––

112,720,000

Common shares1,2,3,4

15,878,211

28

1,900

15,876,339

Total

15,878,211

28

1,900

15,876,339

Treasury shares(Notes) 1. The increase of 28 common shares in treasury shares during the period is due to thepurchase of shares less than one unit.
2. The 1,900 common shares in treasury shares decreased in the period were deliveredfrom trust to eligible persons under the stock compensation plan for Executive Officers.
3. The 15,876,339 common shares in treasury shares at the end of the period include
408,500 shares of the Company’s stock held by Custody Bank of Japan, Ltd. (Trust
Account) as trust assets for the Trust for Granting Shares to Directors and Executive
Officers and the Trust for Granting Shares to Executive Officers.
4. The Company implemented a four-for-one common stock split effective December 1,
2021, and the above figures represent the number of shares prior to the stock split.
2. Matters concerning dividends(1) Dividends paid
Total dividend
Class of
Dividend per
Resolution
amountDate of record
Effective datesharesshare (Yen)(Millions of yen)
May 19, 2020
CommonBoard of Directors
972
10.0 March 31, 2020 June 10, 2020
sharesmeeting
October 29, 2020
September 30,
December 8,
Common972
10.0
Board of Directors
2020
2020
sharesmeeting(Notes) 1. The total dividend amount includes ¥4 million in dividends paid to shares of theCompany’s stock held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets for
the Trust for Granting Shares to Directors and Executive Officers and the Trust for
Granting Shares to Executive Officers.
2. The Company implemented a four-for-one common stock split effective December 1, 2021,
and the dividend per share represents the amount prior to the stock split.
(2) Dividends with a date of record during the previous fiscal year, but an effective date in thefollowing fiscal year
Total
dividend
Dividend
Class of
Source of
Resolution
amountper share Date of record
Effective datesharesdividend(Millions of
(Yen)
yen)
May 18, 2021
CommonRetained972
10.0 March 31, 2021
June 9, 2021
Board ofsharesearnings
Directors meeting(Notes) 1. The total dividend amount includes ¥4 million in dividends paid to shares of the- 29 -

Company’s stock held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets for
the Trust for Granting Shares to Directors and Executive Officers and the Trust for
Granting Shares to Executive Officers.
2. The Company implemented a four-for-one common stock split effective December 1, 2021,
and the dividend per share represents the amount prior to the stock split.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
1. Type and number of shares issued and treasury shares(Shares)Number of
Increase in
Decrease in
Number ofshares at theshares during the shares during the shares at the end
beginning of theperiodperiodof the period
periodIssued shares
Common shares1

112,720,000

338,160,000–

450,880,000

Total

112,720,000

338,160,000–

450,880,000

Common shares2,3,4

15,876,339

47,629,149

21,70063,483,788

Total

15,876,339

47,629,149

21,70063,483,788

Treasury shares(Notes) 1. The increase of 338,160,000 issued shares of common stock during the period was due
to a four-for-one stock split of common stock, effective December 1, 2021.
2. The increase of 47,629,149 shares in treasury shares in the period was due to an increaseof 47,629,017 shares as a result of a four-for-one stock split of common stock, effective
December 1, 2021, and an increase of 132 shares as a result of purchase of shares lessthan one unit.
3. The 21,700 common shares in treasury shares decreased in the period were deliveredfrom trust to eligible persons under the stock compensation plan for Directors and thestock compensation plan for Executive Officers.
4. The 63,483,788 common shares in treasury shares at the end of the period include
1,612,300 shares of the Company’s stock held by Custody Bank of Japan, Ltd. (Trust
Account) as trust assets for the Trust for Granting Shares to Directors and Executive
Officers and the Trust for Granting Shares to Executive Officers.
2. Matters concerning dividends(1) Dividends paid
Resolution

Class ofsharesTotal dividend
Dividend peramountshare (Yen)(Millions of yen)

Date of record

Effective date

May 18, 2021
Common972
10.0 March 31, 2021
June 9, 2021
Board of Directors
sharesmeeting
October 28, 2021
CommonSeptember 30,
December 7,972
10.0
Board of Directors shares
2021
2021
(Notes) 1. The total dividend amount includes ¥4 million in dividends paid to shares of theCompany’s stock held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets for
the Trust for Granting Shares to Directors and Executive Officers and the Trust for
Granting Shares to Executive Officers.
2. The Company implemented a four-for-one common stock split effective December 1, 2021,
and the dividend per share represents the amount prior to the stock split.

- 30 -

(2) Dividends with a date of record during the fiscal year under review, but an effective date in thefollowing fiscal year
Total
dividend
Dividend
Class of
Source of
Resolution
amountper share Date of record
Effective datesharesdividend(Millions of
(Yen)
yen)
May 18, 2022
CommonRetained
Board of
1,361
3.5 March 31, 2022
June 9, 2022
sharesearnings
Directors meeting(Notes) 1. The total dividend amount includes ¥5 million in dividends paid to shares of theCompany’s stock held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets for
the Trust for Granting Shares to Directors and Executive Officers and the Trust for
Granting Shares to Executive Officers.
2. The Company implemented a four-for-one stock split of common shares, with an effective
date of December 1, 2021. The above shows dividend amounts after the stock split.
(On the consolidated statement of cash flows)
1. Relationship between cash and cash equivalents at end of period and the amount of items shown on
the consolidated balance sheets(Millions of yen)
Fiscal year under review
Previous fiscal year
(From April 1, 2020 to (From April 1, 2021 toMarch 31, 2022)
March 31, 2021)
Cash and deposits account
19,03721,657
Time deposits with maturities
(438)
(100)
longer than three months
Deposits paid account275
407
Cash and cash equivalents
18,87521,964(Lease transactions)
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Notes are omitted due to immateriality for the period.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
Notes are omitted due to immateriality for the period.

- 31 -

(Financial instruments)
1. Matters concerning status of financial instruments(1) Policy for financial instrument transactions
The Group raises short-term working capital and capital for equipment, etc. as needed throughborrowings from banks. Derivative transactions are strictly managed in accordance with internalmanagement rules governing transactions, and the Company’s fundamental policy is not to engage
in high-risk speculative transactions.
(2) Nature and extent of risks arising from financial instruments and risk management
Notes and accounts receivable - trade, which are trade receivables, are exposed to credit risk from
customers. With respect to this risk, the Company conducts credit checks when beginningtransactions with customers, continuously monitors collection status, and periodically reviews
credit limits in accordance with the Company’s credit management rules. Consolidated subsidiaries
conduct similar management as in the Company.
The Company periodically monitors the fair value of investment securities and financial
condition of their issuers, etc., and continuously reviews its holdings in consideration of market
conditions and other factors.
Short-term borrowings and long-term borrowings are mainly used as funding for working capitaland capital investment. Although borrowings with floating interest rates are exposed to interest rate
fluctuation risk, the Company is able to respond flexibly to interest rate fluctuations by maintaining
short borrowing periods.
(3) Supplementary information on fair value, etc. of financial instruments
The fair value of financial instruments reflects variable factors, and is therefore subject to change
depending on different assumptions used.
2. Matters concerning fair value, etc. of financial instruments
The amounts recorded on the consolidated balance sheet, fair values, and the differences between
them are shown below.
Previous fiscal year (As of March 31, 2021)(Millions of yen)

Investment securities2

Amount on the
consolidated balance
sheet
963

Total assets

963

Fair value

Difference
963

–

963

–

(Notes) 1. “Cash and deposits,” “Notes and accounts receivable - trade,” “Accounts payable trade,” “Short-term borrowings,” and “Accounts payable - other, and accrued
expenses” are omitted as their fair values approximate their book values. This is due totheir nature as cash and as accounts settled over the short term.
2. The following financial instruments are not included in “Investment securities” because
they do not have market prices and it is extremely difficult to determine their fair value.
The carrying values of these financial instruments on the consolidated balance sheet
were as follows.
(Millions of yen)Classification

Previous fiscal year

Unlisted stocks, etc.

439

Limited liability investment
partnerships

487- 32 -

Fiscal year under review (As of March 31, 2022)(Millions of yen)Amount on the
consolidated balance
sheet

Fair value

Difference

Investment securities2

727

727

–

Total assets

727

727

–

(Notes) 1. “Cash and deposits,” “Notes receivable - trade,” “Accounts receivable - trade,”“Accounts payable - trade,” “Short-term borrowings,” and “Accounts payable - other,and accrued expenses” are omitted as their fair values approximate their book values.
This is due to their nature as cash and as accounts settled over the short term.
2. Stocks and other securities with no market price are not included in “Investment
securities.” The carrying values of these financial instruments on the consolidatedbalance sheet were as follows.
(Millions of yen)Classification

Fiscal year under review

Unlisted stocks, etc.

464

3. Investments in partnerships and similar entities recorded at the net amount of equity
interest on the consolidated balance sheet are omitted. The amount of these investmentson the consolidated balance sheet is ¥584 million.
4. Scheduled amount of redemption of monetary claims due after the consolidated accountclosing datePrevious fiscal year (As of March 31, 2021)(Millions of yen)
Due after
Due after
Due within
Due after
1 year, but
5 years, but
1 year10 years
within 5 years within 10 years
Notes and accounts
12,826–––
receivable - trade
Fiscal year under review (As of March 31, 2022)(Millions of yen)
Due within
1 yearNotes receivable trade
Accounts receivable- trade766

Due after
1 years, but
within 5 years–

Due after
5 years, but
within 10 years–

Due after
10 years–

12,861

5. Scheduled amount of repayment of short-term borrowings and long-term borrowings
after the consolidated account closing datePrevious fiscal year (As of March 31, 2021)(Millions of yen)
Due after Due after Due after Due after
Due within 1 year, but 2 years, but 3 years, but 4 years, but Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Short-term
1,550
–
–
–
–
–
borrowings- 33 -

Fiscal year under review (As of March 31, 2022)(Millions of yen)
Due after Due after Due after Due after
Due within 1 year, but 2 years, but 3 years, but 4 years, but Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Short-termborrowings

1,550

–

–

–

–

–

3. Matters concerning breakdown per level of fair value, etc. of financial instruments
The fair value of financial instruments is classified into the following three levels based on theobservability and materiality of the inputs used to calculate fair value.
Level 1 fair value: Fair value calculated with observable inputs which are quoted prices for identicalassets or liabilities for calculation of fair value in active markets.
Level 2 fair value: Fair value calculated with observable inputs other than in Level 1.
Level 3 fair value: Fair value calculated using unobservable inputs.
When multiple inputs that have a significant impact on the calculation of fair value are used, fair value
is assigned to the level with the lowest applicable priority among the relevant levels.
(1) Financial instruments recorded on the consolidated balance sheet at fair value
Fiscal year under review (As of March 31, 2022)(Millions of yen)Classification
Investment
securities
Available-for-salesecurities
StocksFair value
Level 1

Level 2

Level 3

Total

67

–

–

67

Other

659

–

–

659

Total assets

727

–

–

727

(2) Financial instruments other than those recorded on the consolidated balance sheet at fair value
Fiscal year under review (As of March 31, 2022)
No items to report.

- 34 -

(Securities)
Previous fiscal year (As of March 31, 2021)
1. Available-for-sale securities(Millions of yen)
Carrying valueon theconsolidatedbalance sheet
101

Type

Acquisition cost

Difference

Securities whose
Stocks1000carrying values on the
consolidated balance
Other
–
–
–
sheet exceed
acquisition cost
Securities whose
Stocks322
336(14)
carrying values on the
consolidated balance
Other
539
551
(11)
sheet do not exceed
acquisition cost
963
989
(25)
Total
(Note) Unlisted stocks, etc. (carrying value of ¥19 million on the consolidated balance sheet) are notincluded in “Available-for-sale securities” above because they do not have market prices and it
is extremely difficult to determine their fair value.
2. Available-for-sale securities sold during the previous fiscal year (From April 1, 2020 to March 31,
2021)(Millions of yen)Type

Amount of sales

Total gain on sale

Total loss on sale

Stocks

6,910

176

2

Other

13,145181

93

20,055

358

95

Total

Fiscal year under review (As of March 31, 2022)
1. Available-for-sale securities

Type

Carrying valueon theconsolidatedbalance sheet–(Millions of yen)
Acquisition cost

Difference

Securities whose––
Stockscarrying values on the
consolidated balance
–
–
–
Other
sheet exceed
acquisition cost
Securities whose
Stocks67
69(1)
carrying values on the
consolidated balance
659
697
(38)
Other
sheet do not exceed
acquisition cost
727
766
(39)
Total
(Note) Unlisted stocks, etc. (carrying value of ¥7 million on the consolidated balance sheet) are notincluded in “Available-for-sale securities” above because they are stocks, etc. without market
prices.

- 35 -

2. Available-for-sale securities sold during the fiscal year under review (From April 1, 2021 to March
31, 2022)(Millions of yen)Type

Amount of sales

Total gain on sale

Total loss on sale

Stocks

7,355

89

64

Other

9,772

0

72

17,127

89

137

Total

(Retirement benefits)
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1. Outline of retirement benefit plans adopted
The Company and some of its consolidated subsidiaries have both a defined contribution pension
plan and a prepaid retirement benefit plan.
2. Matters on retirement benefit obligations
Due to adoption of a defined contribution pension plan, there are no retirement benefit obligations.
3. Matters on retirement benefit expenses(Millions of yen)
(1) Contributions to defined contribution pension plan(2) Prepaid retirement benefits
Retirement benefit expenses

248
929
1,177

Fiscal year under review (From April 1, 2021 to March 31, 2022)
1. Outline of retirement benefit plans adopted
The Company and some of its consolidated subsidiaries have both a defined contribution pension
plan and a prepaid retirement benefit plan.
2. Matters on retirement benefit obligations
Due to adoption of a defined contribution pension plan, there are no retirement benefit obligations.
3. Matters on retirement benefit expenses(1) Contributions to defined contribution pension plan(2) Prepaid retirement benefits
Retirement benefit expenses(Millions of yen)
264
1,101
1,365

- 36 -(Tax effect accounting)
1. Deferred tax assets and deferred tax liabilities by major classification

Previous fiscal year
(As of March 31,
2021)
Deferred tax assets
Accrued enterprise tax
Accrued business office tax
Provision for bonuses
Provision for share-based compensation
Loss on valuation of investment securities
Loss on valuation of membership
Loss carried forward
Unrealized gain and loss on available-forsale securities
Allowance for doubtful accounts
Other
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets(Millions of yen)
Fiscal year underreview(As of March 31,
2022)

110
14
383
20
2
24
347

117
17
420
29
–
24
360

7

11

119
26
1,058
(347)
710

286
53
1,321
(503)
817

2. Major components of significant differences arising between the effective statutory tax rate andeffective income tax rate after application of tax effect accounting

Statutory tax rate
(Adjustments)
Share of loss of entities accounted for using
equity method
Inhabitant tax on per capita basis
Change in valuation allowance
Tax credits for salary growth
Other
Effective income tax rate after application oftax effect accounting- 37 -

Previous fiscal year
(As of March 31, 2021)
30.6%
3.1%
0.5%
(1.5%)(0.3%)
0.5%
32.9%

Fiscal year under review(As of March 31, 2022)
Notes are omitted
because thedifference between
the statutory tax rate
and the effective
income tax rate isless than 5% of thestatutory tax rate.

(Revenue recognition)
1. Information on breakdown of revenue from contracts with customers
Fiscal year under review (From April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
Solution
DesignBusiness

Goods or services
transferred over a
period of time
Goods or services
transferred at asingle point in time
Revenue arisingfrom contracts withcustomers
Net sales toexternal customers

Framework
IT Service
DesignBusiness
Business

Business
Solution
Business

Cloud
Business

Overseas
Business

Investment&
Incubation
Business

Total

20,607

5,143

15,313

608

443

104

98

42,319–––21,620

1,331

–

–

22,952

20,607

5,143

15,31322,229

1,775

104

98

65,272

20,607

5,143

15,31322,229

1,775

104

98

65,272

2. Fundamental explanation of revenue arising from contracts with customers
The fundamental explanation for revenue is as described in “(4) Standards for recognition of significant
revenue and expenses” under “4. Consolidated financial statements, 4. Matters concerning accounting
policies.”
3. Information about the relationship between the satisfaction of performance obligations under contracts
with customers and cash flows from these contracts, and the amount and timing of revenue expected to berecognized in subsequent fiscal years from contracts with customers that exist at the end of the fiscal year
under review.
(1) Balance of contract assets and contract liabilities, etc.
(Millions of yen)
Fiscal year under review
Contract assets (Balance at beginning of period)

524

Contract assets (Balance at end of period)

695

Contract liabilities (Balance at beginning of period)

198

Contract liabilities (Balance at end of period)

81

Contract assets relate to the rights of the Company and its consolidated subsidiaries to consideration not
yet billed, though their contractual performance obligations have been satisfied as of the end of the
fiscal year. Contract assets are reclassified to receivables arising from contracts with customers when
the Company and its consolidated subsidiaries’ rights to the consideration are unconditional.
Contract liabilities mainly relate to advance payments for customer order-based contracts andsuspense payments for ongoing orders. Contract liabilities are reversed upon recognition of revenue.
(2) Transaction price allocated to remaining performance obligations
The Company and its consolidated subsidiaries apply the practical expedient method in the notes totransaction prices allocated to remaining performance obligations. Contracts with an initial expected
contract term of one year or less are not included in these notes.

- 38 -

(Segment information, etc.)
Segment information
1. Overview of reportable segments
The Company’s reportable segments are those components of the Group for which separate
financial information is available and are subject to periodic review by the Board of Directors todetermine the allocation of management resources and evaluate their performance.
The Group has established business divisions by product and service. These divisions formulatecomprehensive strategies for their respective products and services and carry out business activities.
Therefore, the Group consists of segments that are separated by products and services based on
business divisions, and the business activities of each are as follows.
Name of business segment

Businesses

Planning, design, development, and verification support forautonomous driving and in-vehicle systems, various products, andSolution Design
telecommunications carrier services. Planning, design, development,
Businessand verification support for Internet businesses, business applications,
web services, social infrastructure-related systems, IoT, artificial
intelligence, and robotics-related services.
Development of core systems in the areas of finance (non-life
Framework Design
insurance, life insurance, and banking), industry, public sector, andBusinessothers. Development of infrastructure systems.
Provision of IT outsourcing services such as operation, maintenance,
IT Service Businessand monitoring of systems and networks, helpdesk services and user
support, data entry, and high-volume output.
Sale of servers, computers, peripherals, software, and other IT-related
products to enterprises. Provision of services related to IT equipment,
Business Solution
including building infrastructure and virtualization. Planning,
Businessdevelopment, and provision of product implementation services suchas RPA and business intelligence (BI) tools.
Provision of in-house services Canbus., Cloudstep, and Web Shelter.
Cloud Business
Provision and implementation support of cloud-based services such as
Google Workspace and Microsoft 365.
Provision of mobile communications-related technical support,
Overseas Businessdevelopment and verification support, and various solutions; trend
research and commercialization of the latest technologies and services.
Investment & Incubation New businesses, and planning, development, and sale of game content
Businessfor smartphones and tablets by subsidiaries.
2. Calculation method of net sales, profit or loss, assets, and other items by reportable segment
Accounting methods for reported business segments are the same as those described in “Significant
matters that serve as the basis for preparing consolidated financial statements.”
Profit by reportable segment is based on operating profit.
Inter-segment net sales and transfers are based on prevailing market prices.

- 39 -

3. Information on net sales, profit or loss, assets, and other items by reportable segment
I. Previous fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segment
Investment
Adjustment&
2,3
Incubation
Business

Solution Framework
IT Service
DesignDesignBusiness
Business BusinessBusiness
Solution
Business

Cloud
Business

Overseas
Business

19,131

4,498

13,282

22,310

1,461

95

90

–

60,871

32

0

379

32

22

92

87

(647)

–

Total

19,163

4,498

13,662

22,343

1,484

188

178

(647)

60,871

Segment profit(loss)

3,624

772

1,873

1,499

300

7

(71)

–

8,006

Segment assets

5,158

703

4,374

6,095

337

1,187

157

20,872

38,886

188

29

103

23

6

4

0

–

356

44

1

88

23

7

1

–

284

450

341

–

–

–

–

79

–

–

420

Net sales
Net sales toexternalcustomers
Intersegment net
sales andtransfers

Total1Other items
Depreciation
Increase inproperty,plant andequipment
andintangible
assetsInvestmentsin equity
methodassociates(Notes) 1.

Segment profit (loss) is consistent with operating profit in the consolidated statement ofincome.
2. The ¥20,872 million adjustment to segment assets consists wholly of corporate assets that do
not belong to any reportable segment, and is mainly cash and deposits and investment
securities. Depreciation of property, plant and equipment and intangible assets included incorporate assets is allocated to reportable segments.
3. The adjustment of ¥284 million for increase in property, plant and equipment and intangible
assets under other items is mainly capital investment in computer equipment for development.
4. The decrease in investments in equity method associates is mainly due to an impairment lossof ¥547 million on shares of StrongKey, Inc., an equity method associate.

- 40 -

II. Fiscal year under review (From April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
Investment
Adjustment&
2,3
Incubation
Business

Solution
Framework IT Service
DesignDesignBusiness
Business

Business
Solution
Business

Cloud
Business

Overseas
Business

20,607

5,143

15,31322,229

1,775

104

98

–

65,272

56

–

376

60

29

71

72

(668)

–

Total

20,663

5,143

15,69022,290

1,804

176

171

(668)

65,272

Segment profit(loss)

4,132

1,014

2,197

1,436

406

(9)

(72)

–

9,106

Segment assets

5,200

841

5,239

7,303

452

632

343

23,46343,477

222

35

128

33

6

3

0

–

429

208

22

195

14

1

–

–

136

578

361

–

–

–

–

95

–

–

456

Net sales
Net sales toexternalcustomers
Intersegment net
sales andtransfers

Total1Other items
Depreciation
Increase inproperty,plant andequipment
andintangible
assetsInvestmentsin equity
methodassociates(Notes) 1.

Segment profit (loss) is consistent with operating profit in the consolidated statement ofincome.
2. The ¥23,463 million adjustment to segment assets consists wholly of corporate assets that do
not belong to any reportable segment, and is mainly cash and deposits and investment
securities. Depreciation of property, plant and equipment and intangible assets included incorporate assets is allocated to reportable segments.
3. The adjustment of ¥136 million for increase in property, plant and equipment and intangible
assets under other items is corporate assets, mainly capital investment for replacement ofinternal systems and company vehicles.
4. Matters related to changes in reportable segments(1) In the fiscal year under review, the Company reviewed its business management categories
and changed the classification of its reportable segments as follows. The business of
ProVision Co., Ltd., which had been classified under the Solution Design Business, wasreclassified into the IT Service Business, and the business of IDY Corporation, which had
also been classified under the Solution Design Business, was reclassified into the Business
Solution Business. In addition, new service areas such as RPA, which had been classified
under the Framework Design Business, have been reclassified into the Business Solution
Business. Note that the Business Solution Business is the new name of the Solution Sales
Business. Segment information for the previous fiscal year has been retroactively reclassified
in accordance with these changes.

- 41 -

(2) As described in “Changes in accounting policies,” the Company adopted the AccountingStandard for Revenue Recognition and relevant regulations from the beginning of the fiscal
year under review, changing its accounting treatment method for revenue recognition. As aresult, net sales in the fiscal year under review for Cloud Business decreased by ¥146 million,
and segment profit decreased by ¥143 million.
Related information
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1. Information by product and service
This information is omitted because the same information is disclosed as segment information.
2. Information by geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan are in excess of
90% of net sales on the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located inJapan exceeds 90% of the amount of property, plant and equipment on the consolidatedbalance sheet.
3. Information by major customer
This information is omitted because there are no customers that account for 10% or more of net
sales on the consolidated statement of income.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
1. Information about products and services
This information is omitted because the same information is disclosed as segment information.
2. Information by geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan are in excess of
90% of net sales on the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located inJapan exceeds 90% of the amount of property, plant and equipment on the consolidatedbalance sheet.
3. Information by major customer
This information is omitted because there are no customers that account for 10% or more of net
sales on the consolidated statement of income.
Information about impairment loss on non-current assets by reportable segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)
No items to report.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
No items to report.
Information about amortization and unamortized balance of goodwill by reportable segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)
No items to report.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
No items to report.

- 42 -

Information about gain on bargain purchase by reportable segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)
No items to report.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
No items to report.
(Information on related parties)
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1. Transactions with related parties
No items to report.
2. Notes on parent company and significant associates
No items to report.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
1. Transactions with related parties
No items to report.
2. Notes on parent company and significant associates
No items to report.
(Per share information)(Yen)
Previous fiscal year
Fiscal year under review(From April 1, 2020 to(From April 1, 2021 toMarch 31, 2021)
March 31, 2022)
Net assets per share
66.17
76.83
Basic earnings per share
12.84
15.47
(Notes) 1. Diluted earnings per share is not shown in the above table, as there are no residual shareswith dilutive effects.
2. The basis for calculation of basic earnings per share is as follows.
Previous fiscal year
Fiscal year under review(From April 1, 2020 to(From April 1, 2021 toMarch 31, 2021)
March 31, 2022)
Basic earnings per share
Profit attributable to owners of
4,974
5,992
parent (Millions of yen)Amount not available to common––shareholders (Millions of yen)
Profit attributable to owners ofparent available to common shares
4,974
5,992
(Millions of yen)
Average number of shares during the387,371,768
387,386,464
period (Shares)
3. The Company has introduced a stock compensation plan, and in calculating the average
number of common treasury shares during the period, the number of treasury shares
includes shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account) as
trust assets for the Trust for Granting Shares to Directors and Executive Officers and theTrust for Granting Shares to Executive Officers.
The number of treasury shares held by the trust account included in the number of treasury
shares at the end of the fiscal year under review and previous fiscal year was 1,612,300
shares and 1,634,000 shares, respectively. The average number of treasury shares held by
the trust account excluded from the calculation of the average number of shares during the- 43 -

fiscal year under review and previous fiscal year were 1,622,086 shares and 1,636,938
shares, respectively.
4. The Company implemented a four-for-one common stock split effective December 1, 2021.
Net assets per share and basic earnings per share have been calculated as if this stock split
had taken place at the beginning of the previous fiscal year.
(Significant subsequent events)
No items to report.

- 44 -

5. Non-consolidated financial statements(1) Non-consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Contract assets
Merchandise
Advance payments to suppliers
Prepaid expenses
Short-term loans receivable
Short-term loans receivable from subsidiaries andassociates
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets- 45 -

As of March 31, 2022

16,482576
11,526
–
798
0
262
0

18,553765
11,960
671
1,104
4
295
0

6

106

323
–
29,977438(9)33,890

489
(261)
227
0
(0)
0
52
(26)
26
1,319
(958)
361
92
707

554
(283)
271
0
(0)
0
85
(16)
68
1,454
(1,112)
342
92
774

282
7
0
291

247
2
0
250

(Millions of yen)
As of March 31, 2021
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Long-term prepaid expenses
Long-term loans receivable
Long-term loans receivable from subsidiaries andassociates
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Deposits received
Provision for bonuses
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term lease and guarantee deposited
Provision for share-based compensation
Total non-current liabilities
Total liabilities

*1

1,470
1,925
0
9
0

1,318
1,369
0
4
0

262

433

804
621
0
(178)
4,915
5,914
35,891

1,297
713
0
(255)
4,881
5,906
39,797

5,171
1,550
1,460
1,610
677
24
176
72
1,000
0
4
11,75012
66
78
11,829- 46 -

As of March 31, 2022

*1

5,554
1,550
1,580
1,389
636
27
79
76
1,100
–
8
12,00312
97
110
12,113

(Millions of yen)
As of March 31, 2021
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 47 -

As of March 31, 2022

1,513

1,513

1,428
4,623
6,051

1,428
4,623
6,051

0
21,565
21,565(5,052)
24,0780
25,18625,186(5,042)
27,709(16)(16)
24,06235,891(25)(25)
27,68439,797

(2) Non-consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Service sales
Net sales of goods
Total net sales
Cost of sales
Cost of service sales
Cost of goods soldBeginning merchandise inventory
Cost of purchased goods
Total
Ending merchandise inventory
Cost of goods soldTotal cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Payroll and allowances
Provision for share-based compensation
Retirement benefit expenses
Bonuses
Provision for bonuses
Legal welfare expenses
Travel and transportation expenses
Recruiting expenses
Advertising expenses
Supplies expenses
Taxes and dues
Commission expenses
Rent expenses
Depreciation
Research and development expenses
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Gain on sale of investment securities
Gain on investments in investment partnerships
Gain on forfeiture of unclaimed dividends
Compensation income for damage
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of investment securities
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit*1- 48 -

Fiscal year ended
March 31, 2022

31,97822,81554,79434,741
23,368
58,11022,42524,252

1,105
19,14020,246798
19,447
41,873
12,920798
19,887
20,686
1,104
19,582
43,835
14,275

230
1,838
39
153
44
99
347
84
140
304
43
349
491
605
287
11
–
366
5,437
7,483

308
1,835
41
165
65
92
360
85
185
301
55
369
403
785
325
1
9
383
5,774
8,500

2
12
1
262
–
12
0
20
313

3
24
1
–
58
4
–
13
105

7
–
69
13
90
7,705

7
47
76
19
150
8,455

*1

(Millions of yen)
Fiscal year ended
March 31, 2021
Extraordinary income
Gain on sale of shares of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitFiscal year ended
March 31, 2022

–
–
*2

874
874
6,831
2,427
(107)
2,320
4,510

- 49 -

22
22
*2

555
555
7,922
2,444
(88)
2,355
5,566

(3) Non-consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Total

Other retained earnings
Share capital Legal capitalsurplusRetained

Total

Treasury

Generalearnings

retainedsharessurplusreservebrought

earnings

6,051

0

Other

Total

capitalcapitalsurplus

4,623

shareholders’equityforward
18,99918,999Dividends of surplus(1,945)(1,945)(1,945)

Profit

4,510

4,510

4,510

Balance at beginning of period

1,513

1,428

(5,055)21,509Changes during period

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

3

3

Net changes in items other thanshareholders’ equity

–

–

–

–

–

2,565

2,565

3

2,569

1,513

1,428

4,623

6,051

0

21,565

21,565(5,052)

24,078

Total changes during period
Balance at end of period

Valuation and translation
adjustments

Balance at beginning of period

Valuation

Total

difference

valuation

Total netonandassetsavailable-translation

for-saleadjust-securities

ments

2

2

21,512

Changes during period
Dividends of surplus(1,945)

Profit4,510

Purchase of treasury shares(0)

Disposal of treasury shares

3

Net changes in items other than

(18)

(18)

(18)

Total changes during period

(18)

(18)

2,550

Balance at end of period

(16)

(16)

24,062shareholders’ equity- 50 -

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Total

Other retained earnings
Share capital Legal capitalsurplus

Other

Total

capitalcapitalsurplussurplus

Total

Treasuryshare-

earnings

retainedsharesholders’

brought

earnings

Retained
Generalreserveequityforward21,565

21,565

Dividends of surplus(1,945)(1,945)(1,945)

Profit

5,566

5,566

5,566

Balance at beginning of period

1,513

1,428

4,623

6,051

0

(5,052)

24,078Changes during period

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

99Net changes in items other thanshareholders’ equity

–

–

–

–

–

3,621

3,621

9

3,630

1,513

1,428

4,623

6,051

0

25,18625,186(5,042)

27,709Total changes during period
Balance at end of period

Valuation and translation
adjustments

Balance at beginning of period

Valuation

Total

difference

valuation

Total netonandassetsavailable-translation

for-saleadjust-securities

ments

(16)

(16)

24,062

Changes during period
Dividends of surplus(1,945)

Profit

5,566

Purchase of treasury shares(0)

Disposal of treasury shares

9

Net changes in items other than

(9)

(9)

(9)

Total changes during period

(9)

(9)

3,621

Balance at end of period

(25)

(25)

27,684

shareholders’ equity- 51 -

(4) Notes to the non-consolidated financial statements(Notes on premise of going concern)
No items to report.
(Significant accounting policies)
1. Valuation standards and valuation methods for securities(1) Shares of subsidiaries and associates
Stated at cost determined by the moving average method(2) Available-for-sale securities
Securities other than stocks and other securities with no market priceStated at fair value (All valuation differences are processed by the direct net assets method,and selling cost is calculated by the moving average method)
Stocks and other securities with no market priceStated at cost determined by the moving average method
Investments in limited liability investment partnerships are accounted for based on the most recent
financial statements available according to the financial reporting date stipulated in the partnershipagreement, and the amount equivalent to the Company’s equity interest in the partnerships isincluded at the net amount.
2. Valuation standards and methods for inventories
MerchandiseStated at cost determined by the moving average method (Writing down book values based on
decreased profitability)
3. Method of depreciation of non-current assets(1) Property, plant and equipment (excluding leased assets)
Declining-balance method (However, the straight-line method is adopted for buildings (excluding
facilities attached to buildings) acquired on or after April 1, 1998, and facilities attached tobuildings and structures acquired on or after April 1, 2016)
The useful lives and residual values of assets are determined based on the standards stipulated in
the Corporation Tax Act.
Assets with an acquisition cost of ¥100,000 or more but less than ¥200,000 are amortized equally
over three years.
(2) Intangible assets (excluding leased assets)
Straight-line method
Software for internal use is amortized using the straight-line method over the estimated internal
useful life (5 years).
(3) Long-term prepaid expenses
Amortized based on the straight-line method
4. Standards for recognition of allowances and provisions(1) Allowance for doubtful accounts
The estimated irrecoverable amount based on historical default rates for general receivables andindividual assessments of recoverability for doubtful and other specific receivables is posted toprovide for losses on default of receivables.
(2) Provision for bonuses
To provide for the payment of bonuses to employees, the amount accrued for the fiscal year underreview is recorded based on the estimated amount of bonus payments.
(3) Provision for loss on orders received
To prepare for future expenses related to order contracts, an estimated loss amount is recorded forcontracts where this amount can be reasonably estimated.
(4) Provision for share-based compensation
To provide for the future delivery of Company shares to Directors and Executive Officers inaccordance with the Company’s rules on share delivery, the estimated payment amount is- 52 -

recorded based on the points allotted to Directors and Executive Officers as of the end of the fiscal
year under review.
5. Standards for recognition of significant revenue and expenses
The following is a description of the major performance obligations related to revenue arising fromcontracts with the Company in its major businesses, and the normal point in time at which such
performance obligations are satisfied (the normal point in time at which revenue is recognized).
(1) Software and system development and IT services
In the Solution Design Business and Framework Design Business, the Group mainly provides
planning, design, development, and verification support for software and system development.
In the IT Service Business, the Group mainly provides IT outsourcing services such as
operation, maintenance, and monitoring of systems and networks, as well as helpdesk services.
Contracts in this business involve transactions under contract or quasi-mandate contract, andperformance obligations are recognized as follows depending on the contract.
For transactions entered into under contract, the Company recognizes revenue based on the
degree of progress made in satisfying the performance obligation over a specified period of time.
For transactions under quasi-mandate contract, the Company recognizes revenue as a prorated
portion of the amount promised in the contract with the customer over the period the services areprovided, based on the judgment that the performance obligation is satisfied over time, since theCompany generally provides a certain level of services over the term of the contract.
The consideration for performance obligations is received primarily within one year after
performance obligations are satisfied, and does not include significant financial components.
(2) Sales of merchandise
In the Business Solution Business, the Group mainly sells servers, computers, peripherals,
software, and other IT-related products to enterprises. For these sales of merchandise, revenue isrecognized when the merchandise is delivered to the customer or at the time the customer
completed inspection.
For sales of merchandise deemed as revenue for which the Company is an agent, revenue isrecognized at the net amount received in exchange for goods provided by the third party less theamount paid to said third party.
In addition, consideration for performance obligations is received primarily within one year
after performance obligations are satisfied, and does not include significant financial components.
(3) License sales
In the Cloud Business, the Group mainly sells licenses for its in-house services, Canbus.,
Cloudstep, and Web Shelter, as well as for cloud-based services such as Google Workspace andMicrosoft 365. For sales of licenses for in-house services, the Company recognizes revenue overthe license period specified in the contract, based on the judgment that the performance obligation
will be satisfied over a certain period of time. For other license sales, revenue is recognized when
the license is granted to the customer.
The consideration for performance obligations is received primarily within one year after
performance obligations are satisfied, and does not include significant financial components.
6. Standards for translating significant foreign currency denominated assets or liabilities into Japanesecurrency
Receivables and payables denominated in foreign currencies are converted into yen at the spot
exchange rate at the end of the fiscal year and translation differences are posted as profit or loss.

- 53 -

(Significant accounting estimates)
Progress-based revenue recognition(1) Amounts recorded in the non-consolidated financial statements for the fiscal year under review(Millions of yen)
Fiscal year underPrevious fiscal year
review
Net sales (Portion
468
610
not completed)(2) Details regarding significant accounting estimates for the identified item
The method of calculating the amounts in (1) is the same as that described in under “Details
regarding significant accounting estimates for the identified item” in the progress-based revenue
recognition section of notes (significant accounting estimates) to the consolidated financial
statements.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it
has recognized revenue at the time the control of promised goods or services is transferred to the customer
at the amount expected to be received upon exchange of said goods or services. Accordingly, mainly forsale of some licenses, the Company had previously recognized revenue at the time the license was granted
to the customer. However, as of the fiscal year under review, this method was changed to recognize
revenue over the license period specified in the contract.
As a result, net sales decreased by ¥146 million, cost of sales decreased by ¥3 million, and operating
profit, ordinary profit, and profit before income taxes each decreased by ¥143 million for the fiscal year
under review.
With regard to the application of the Accounting Standard for Revenue Recognition and relevant
regulations, the new accounting policy was not applied retrospectively to the previous fiscal year, as thetransitional treatment stipulated in the proviso to Paragraph 84 of the Accounting Standard for Revenue
Recognition and the method stipulated in Paragraph 86 of the Accounting Standard for Revenue
Recognition were applied. For contracts for which revenue was recognized up to the previous fiscal year,
nearly all revenues have been recognized. Therefore, there was no adjustment to the beginning balance ofretained earnings for the fiscal year under review.
“Notes and accounts receivable - trade,” which were presented in “Current assets” in the balance sheet in
the previous fiscal year, presented as “Notes receivable - trade,” “Accounts receivable - trade,” and“Contract assets” in the fiscal year under review due to the application of the Accounting Standard for
Revenue Recognition and relevant regulations as of this fiscal year. “Notes and accounts receivable trade” is treated in accordance with the transitional treatment provided for in Paragraph 89-2 of the
Accounting Standard for Revenue Recognition. Figures have not been restated in the new approach topresentation.
In accordance with transitional treatment provided for in Paragraph 83-3 of the Accounting Standard for
Revenue Recognition, notes related to revenue recognition for the previous fiscal year are not presented.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement,
etc. prospectively in accordance with the transitional measures provided for in Paragraph 19 of the
Accounting Standard For Fair Value Measurement, and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019). This change has no impact on the financial
statements.

- 54 -

(Additional information)
Stock compensation plan
The Company has introduced a stock compensation plan for the Company’s Directors (excluding
Outside Directors) and Executive Officers (hereinafter collectively referred to as “Directors, etc.”).
1. Outline of transactions
This is a stock compensation plan under which the Company’s shares, acquired by a trust using
money contributed by the Company, are delivered to Directors, etc. in accordance with the number ofpoints granted in accordance with rules on share delivery established by the Company.
2. Company shares remaining in trust
Company shares remaining in trust are recorded as treasury shares under net assets at the carrying
value in trust (excluding the amount of incidental expenses). The book value and number of thesetreasury shares amounted to ¥736 million and 1,634,000 shares at the end of the previous fiscal year,and ¥726 million and 1,612,300 shares at the end of the fiscal year under review.
(On the non-consolidated balance sheet)
1. Overdraft agreement
The Company has overdraft agreements with six transacting banks in order to raise working capitalefficiently.
The unused portion of the lines of credit based on these agreements is as follows.
(Millions of yen)Previous fiscal year
Fiscal year under review(As of March 31, 2021) (As of March 31, 2022)
Maximum amount of
overdraft
Outstanding balance of
overdraft
Unused amount

7,100

8,100

1,550

1,550

5,550

6,550

(On the non-consolidated statements of income)1. The following items related to transactions with subsidiaries and associates are included.
(Millions of yen)Previous fiscal year
Fiscal year under review(From April 1, 2020 to (From April 1, 2021 toMarch 31, 2021)
March 31, 2022)
Provision of allowance for
69
76
doubtful accounts
The total amount of non-operating income for subsidiaries and associates in the fiscal year underreview was ¥11 million, exceeding 10% of the total amount of non-operating income.
2. Loss on valuation of shares of subsidiaries and associates
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Loss on valuation of shares of subsidiaries and associates is ¥839 million related to shares of
Systena America Inc. and ¥35 million related to shares of GaYa Co., Ltd.
Fiscal year under review (From April 1, 2021 to March 31, 2022)
Loss on valuation of shares of subsidiaries and associates is ¥555 million related to shares of
Systena America Inc.
(Securities)
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Shares of subsidiaries and associates (carrying value of ¥1,820 million and ¥105 million on the nonconsolidated balance sheet, respectively) have no market prices and it is deemed extremely difficult todetermine their fair value. Accordingly, they are omitted.

- 55 -

Fiscal year under review (From April 1, 2021 to March 31, 2022)
Shares of subsidiaries and associates (carrying value of ¥1,263 million and ¥105 million on the nonconsolidated balance sheet, respectively) are stocks, etc. with no market prices. Accordingly, they areomitted.
(Tax effect accounting)
1. Deferred tax assets and deferred tax liabilities by major classification
Previous fiscal year
(As of March 31,
2021)
Deferred tax assets
Accrued enterprise tax
Accrued business office tax
Provision for bonuses
Allowance for doubtful accounts
Provision for share-based compensation
Loss on valuation of investment securities
Loss on valuation of membership
Loss on valuation of shares of subsidiaries
and associates
Unrealized gain and loss on available-forsale securities
Other
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets(Millions of yen)
Fiscal year underreview(As of March 31,
2022)

103
11
306
120
20
2
24

103
13
337
146
29
–
24

699

869

7

11

20
1,317
(695)
621

42
1,579
(865)
713

2. Major components of significant differences arising between the effective statutory tax rate andeffective income tax rate after application of tax effect accounting

Statutory tax rate
(Adjustments)
Change in valuation allowance
Tax credits for salary growth
Other
Effective income tax rate after application oftax effect accounting

Previous fiscal year
(As of March 31, 2021)
30.6%
2.9%
–%
0.4%
34.0%

Fiscal year under review(As of March 31, 2022)
Notes are omitted
because thedifference between
the statutory tax rate
and the effective
income tax rate isless than 5% of thestatutory tax rate.

(Revenue recognition)
Notes have been omitted because the fundamental explanation of revenue arising from contracts withcustomers is identical to “(Revenue recognition)” under “4. Consolidated financial statements and notes, Notes
to the consolidated financial statements.”(Significant subsequent events)
No items to report.

- 56 -

6. Other
Production, orders, and sales results
In the fiscal year under review, the Company reviewed its business management categories and changed theclassification of its reportable segments as follows. The business of ProVision Co., Ltd., which had beenclassified under the Solution Design Business, was reclassified into the IT Service Business, and the businessof IDY Corporation, which had also been classified under the Solution Design Business, was reclassified into
the Business Solution Business. In addition, new service areas such as RPA, which had been classified under
the Framework Design Business, have been reclassified into the Business Solution Business. Note that theBusiness Solution Business is the new name of the Solution Sales Business.
Calculations of year-on-year change use the new reclassified reportable segments.
(1) Production results
Production results per business segment for the fiscal year under review are as follows.
Fiscal year under review
Name of business segment(From April 1, 2021 to March 31, 2022)
Year-on-year change (%)(Millions of yen)
Solution Design Business

13,720

105.2

Framework Design Business

3,605

112.0

IT Service Business

11,294

112.8

800

111.4

Business Solution Business

Total
29,421109.0(Notes) 1. Within the Group, only segments that involve made-to-order activities are shown due to the nature ofservices.
2. Due to the reclassification of reportable segments, some system development, etc. is conducted in
Business Solution Business. The amounts shown above are the production results for such systemdevelopment, etc.
3. The above amounts are stated at production cost.
(2) Order results
Order results per segment for the fiscal year under review are as follows.
Order volume
Year-on-year
Order balance
Name of business segment(Millions of yen)change (%)(Millions of yen)
Solution Design Business
21,308103.8
7,379

Year-on-yearchange (%)
110.5

Framework Design Business

5,478

125.6

2,453

115.8

IT Service Business

15,962

115.7

5,982

112.2

Business Solution Business

1,370

138.3

466

154.8

44,120111.2

16,281

112.8

Total

(Notes) 1. Within the Group, only segments that involve made-to-order activities are shown due to the nature ofservices.
2. Due to the reclassification of reportable segments, some system development, etc. is conducted in
Business Solution Business. The amounts shown above are the order volumes and order balances forsuch system development, etc.

- 57 -

(3) Sales results
Sales results per business segment for the fiscal year under review are as follows.
Fiscal year under review
Name of business segment(From April 1, 2021 to March 31, 2022)
Year-on-year change (%)(Millions of yen)
Solution Design Business

20,607

107.7

Framework Design Business

5,143

114.3

IT Service Business

15,313

115.3

Business Solution Business

22,22999.6

Cloud Business

1,775

121.4

Overseas Business

104

108.9

Investment & Incubation Business

98

109.5

Total
65,272
107.2(Notes) 1. Inter-segment transactions are offset and eliminated.
2. Sales results by major customer and the ratio of such sales results to total sales results for the previous
fiscal year and the fiscal year under review are omitted because there is no customer whose sales
results meets or exceeds 10% of total sales results.

- 58 -