Financial Results offiscal 2019
andmedium-term
management plan
M a y
1 2 , 2 0 2 0
Sy s t e na C or po ra t i on

Security code:2317(First Section of the Tokyo Stock Exchange)

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

Company Outline【Company name】

Systena Corporation【Established】

March 1983
March

【Fiscal period】【Director】【Listed Monetary andCommodities Exchange】【Capital Stock】【Number of outstanding shares】

TSE 1st Section
1,513,750,000 Yen
112,720,000 shares

Representative Director： Yoshichika Hemmi
and Chairman
Representative Director： Kenji Miuraand President： Takafumi Kai
Managing Director

Managing Director： Shinichiro Kawachi

Director

Director

Outside Director ：Kouichi Ogawa

Full-time Corporate Auditor(Outside Corporate Auditor) ： Toru Hishida

Outside Corporate ： Masao Sato､ Yoshihiro Nakamura､ Hiroshi Adagawa
Auditor【Auditor】【Number of Employees】： Makoto Taguchi： Hiroyuki Fujii

Director：Shingo Hemmi

Outside Director ：Yukio Suzuki

Non-Consolidated:2,912/Consolidated:3,915 (As of April 1, 2020)

Framework Design Business

Solution Design Business► Development of self-driving and in-vehicle systems► Development of various social infrastructure systems► Development smartphone and web applications► Embedded development using robotics, artificial intelligence and IoT► Comprehensive support for various systems and services fromplanning to design, development verification and operation► Development of mission-critical systems for the financial
sector (for the non-life insurance, life insurance, andbanking industries), the industrial sector, public sector
and other industries
Development of infrastructure systems►► Planning, development and offering of product introduction
service

IT Service Business

Solution Sales Business► Operation, maintenance, and monitoring of systems
and networks► Help desk and user support► IT-related products for corporate customers, suchas servers, computers, peripherals, and software► Provision of infrastructure building, virtualizationand other IT device/equipment-related services

Overseas Business

Investment & Incubation Business► Mobile communication-related technical► New business promoted by subsidiary

Cloud Business►

Offering Systena’s own service, ‘Canbus.’‘Canbus.IoT’ , ‘Cloudstep’ , ‘Web Shelter’.

► Offering and supporting introduction of G
Suite, Microsoft Office 365, and othercloud services

support, development and verification
support , provision of various solutions►

Trend research and commercialization of
the latest technologies and services►

ONE Tech Japan
Planning and management of social
games for mobile, smartphone, PC by
subsidiary GaYa

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

1

Domestic Group Companies●Equity method affiliatedcompanies●Consolidated subsidiaries

ＰｒｏＶｉｓｉｏｎ Co., Ltd.
【Capital】 85,000,000 Yen【Ratio of capital contribution】
100％
Information terminal softwaredevelopment support, technicalsupport, Mobile device and webbased app quality verification,
System operation andmaintenance（Solution Design Business）

GaYa Co.Ltd.
【Capital】 75,000,000 Yen【Ratio of capital contribution】
65％
Planning and management of social
games for mobile, smartphone, PC（Consumer Service Business）

Tokyoto Business
Service Co.,Ltd【Capital】 100,000,000 Yen

IDY Corporation

HIS HOLDINGS,INC.

【Capital】 65,000,000 Yen【Ratio of capital contribution】
76.7％【Capital】 95,000,000 Yen【Ratio of capital contribution】
25.2％

Data entry, Large volume output,
Mailing service, Secretariat agency,
Paperwork agency. Model company
for employing heavily disabled
persons incorporated jointly withTOKYO METROPOLITANGOVERNMENT.

Design, manufacture and sales of
IoT/M2M router,LTE/3G/WiMAX2+/PHS router,
Wi-Fi board, Android terminal,
wireless digital signage, antennaetc

Development and sale of products(software) for computers andrelated equipment, Provision of
personnel including computerengineers and technicians.

（Solution Design Business）（Solution Design Business）

TBSOPERATION CO., LTD*【Ratio of capital contribution】

Systena 51％ TOKYO METROPOLITAN GOVERNMENT 49％（IT Service Business）【Capital】 30,000,000 Yen【Ratio of capital contribution】
Tokyoto Business Service
Co.,Ltd 100％
Employment transition support andcontinuous employment support
based on the General Support for
Persons with Disabilities Act.
Employment training for persons
with disabilities.

（IT Service Business）

ONE Tech Japan, Inc.

【Capital】 85,000,000 Yen【Ratio of capital contribution】
87.5％
Provide planning, development,
sales and other services in thefields of AI, IoT, robots, Fintech
and social media.

（Investment & Incubation
Business）

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

company name
* The
changed from Internet ofThings, Inc. in January
2020.

2

Overseas group companies● Consolidated subsidiaries

Systena America Inc.

●Equity method affiliatedcompanies

StrongKey, Inc.

【Capital】 28,000,000 US dollar【Ratio of capital contribution】
100％【Capital】 7,650,000 US dollars【Ratio of capital contribution】
28.84％

Mobile communications-related
technical support, development andverification support, Provision ofvarious solutions, Trend researchand commercialization of the latest
technologies and services

Development and sale of encryption
and authentication products（Overseas Business）

Systena Vietnam Co.,Ltd.
【Capital】 200,000 US dollar（4,200,000,000 Vietnamese
DONG）【Ratio of capital contribution】
100％

capitalcontribution ※ StrongAuth, Inc. changed

business name to StrongKey, Inc.

（Overseas Business）

ONE Tech, Inc.
【Capital】 6,000,000 US dollars【Ratio of capital contribution】
50％
Development and sale of IoT
solution packages

Software development, evaluationand verification, operation andmaintenance, IT Service in General.

（Solution Design Business）（Framework Design Business）（Overseas Business）

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

3

Financial Results offiscal 2019
（Consolidated）＜YoY＞

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

4

Financial Results （Consolidated）
Software development continued to perform strongly, primarily in the areas of 5G,
Internet Services and Digital Transformation. The business scope of IT services have
expanded significantly. The Solution Sales Business focused on strong system
integration business. For the Cloud Business, we actively expanded the sales
promotion of in-house commercial products. As a result of these efforts, weachieved growth in both revenue and profits.
（in millions of yens）

Fiscal 2019
Profit ratio

AmountNet
sales

Fiscal 2018

64,552

Amount－ 59,742

Profit ratio－

YoY rate
Amount ofrate ofchangechange

4,809

8.1％

Operatin
g profit

8,163 12.6％

6,902 11.6％ 1,260

18.3％

Ordinary
profit7,871 12.2％

6,706 11.2％ 1,165

17.4％

Profitattributable toowners ofparent5,471 8.5％

4,584

886

19.3％

7.7％

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

5

Point 1
Year-on-year

Solution Design Business

Net Sales 22,914 million yen +7.9％

Year-on-year

Operating Profit 4,059 million yen +10.7％

 The impact of unprofitable projects in the Work Process Systems Businesshas subsided, and sales and profits, which had temporarily declined, haverebounded due to an increase in inquiries and orders for systemdevelopment in areas such as 5G-related, Internet services, digitaltransformation (DX), and workstyle reform.

 Continued to strengthen order-taking activities and project
management systems in priority areas.
Framework Design BusinessYear-on-year

Net Sales 5,771 million yen +9.0％

Operating Profit

Year-on-year

1,057 million yen +25.7％

 The Framework Design Business continued to perform strongly.
While large insurance system projects peaked in the existing
financial domain, new projects for developing financial, insurance
and work process systems progressed well and stayed bullish.
 In the area of new services, license sales for robot process
automation (RPA) solutions, accompanying introduction supportand development support showed strong performance.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

6

Point 2
IT Service Business

Net Sales 8,650 million yen

Year-on-year+10.5％

Year-on-year

Operating Profit 1,264 million yen +18.4％

 We stepped up sales efforts targeting customers’ profit-making
divisions while high value-added on-off projects, such as
Windows 10 migration and AI and RPA introduction support forinternal IT divisions, drove sales and profits.
 Additionally, we cultivated new customers using AI-related
services and IT training as sales hooks.
Solution Sales BusinessYear-on-year

Net Sales 25,887 million yen +7.7％

Year-on-year

Operating Profit 1,622 million yen +40.4％

 Systems-related projects have increased as a result of the end of support
for the Windows7 and WindowsServer2008 operating systems.
 Leveraging workstyle reform as a key concept, we have stimulated
demand primarily in the areas of mobile, security and cloud computing.
 We expanded the number of high added-value one-stop service projects
over what we had envisioned in the roadmap in various areas including the
introduction of IT equipment, infrastructure building, system development,
maintenance and operation.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

7

Point 3
Cloud BusinessYear-on-year

Net Sales 1,404 million yen +24.4％

Operating Profit 209

million yen

Year-on-year+5.8％

 The number of orders for the Canbus increased as a result of stimulated
demand based on keywords such as digital transformation (DX) anddata-based management.
 System integration related to Canbus, G Suite, and Cloudstep wasstrong, based on keywords such as workstyle reform and telework.

Overseas BusinessYear-on-year

Net Sales 147 million yen +22.6％

compared toprevious period

Operating Profit ▲16 million yen +14million yen

 The number of inquiries and orders for unique services using AI and IoT(LoRa) from various companies in the U.S. and Japan has increased due toconsideration of a service and joint sales with ONE Tech Inc. and ONE TechJapan Inc.
 We have increased orders for IoT and software development and support
services from multiple Japanese-owned companies
 We conducted sales activities for StrongKey’s security services in the U.S. as
well, following the enforcement of the CCPA.
 Operating profit is back to normal from the second half.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

8

Sales by Segment（Consolidated）＜YoY rate＞（in millions of yens）

Fiscal 2019
Sales distribution
ratio

AmountSolution
DesignFiscal 2018
AmountYoY rate

Sales distribution
ratio

Amount ofrate of changechange22,914

35.5％

21,234

35.5％

1,679

7.9％

Framework
Design

5,771

8.9％

5,294

8.9％

476

9.0％

IT Service

8,650

13.4％

7,827

13.1％

823

10.5％

Solution
Sales

25,88740.1％

24,032

40.2％

1855

7.7％

Cloud

1,404

2.2％

1,129

1.9％

275

24.4％

Overseas

147

0.2％

120

0.2％

27

22.6％

Investment
Incubation

213

0.3％

377

0.6％

▲163

▲43.4％

Adjustment

▲437

▲0.6％

▲272

▲0.4％

▲164

―

Total

64,552100.0％

59,742100.0％

4,809

8.1％

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

9

Operating profit by Segment（Consolidated）＜YoY rate＞（in millions of yens）

Fiscal 2019

Fiscal 2018

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

4,059

17.7％

3,666

17.3％

392

10.7%

1,057

18.3％

841

15.9％

215

25.7％

IT Service

1,264

14.6％

1,067

13.6％

196

18.4％

Solution
Sales

1,622

6.3％

1,155

4.8％

467

40.4％

Cloud

209

14.9％

197

17.5％

11

5.8％

Overseas

▲16

―

▲31

―

14

―

Investment
Incubation

▲33

―

4

1.2％

▲38

―

Adjustment

―

―

－

－

―

―

8,163

12.6％

6,902

11.6％

1,260

18.3％

Total

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

rate ofchange10Composition of Net Sales and Operating Profit by Segment

Cloud

Net sales¥64,552mil

2.2%

0.2%

Investment &Incubation

0.3%

Solution
Design35.5%

Solution
Sales

Operating profit¥8,163milOverseas

Cloud

2.6%

Solution
Sales

19.9%

IT Service

40.1%
IT Service

Framework
Design8.9%

13.4%
Adjustment▲0.6%

Solution
Design

49.7%

15.5%
Framework
Design12.9%
Overseas▲0.2％
Investment & Incubation ▲0.4％

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

11

Earnings Forecast for
Fiscal 2020
(Consolidated, Full Year)

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

12

Earnings Forecast for the Full Year (Consolidated)（in millions of yens）

Fiscal 2020
Earnings Forecast
Profit ratio

AmountNet
sales

Fiscal 201962,227

Amount－ 64,552

YoY rate

Profit ratio

Amount ofchangerate ofchange－ ▲2,325 ▲3.6％

Operatingprofit

7,634 12.3％

8,163 12.6％

▲529

▲6.5％

Ordinary
profit7,370 11.8％

7,871 12.2％

▲501

▲6.4％

4,967

5,471

▲504

▲9.2％

Profit attributableto owners ofparent8.0％

8.5％

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

13

1. Solution Design Business
Outlook for this Period

compared with previous period

Net Sales 24,059 million yen + 5.0％

compared with previous period

Operating Profit 4,106 million yen +1.1％

1. In-vehicle Systems Business ~ Focus on winning orders from high-growth areas! ~ Orders in the information field (infotainment) aimed at improving the comfort of invehicle spaces will expand.
 In the safety field related to passenger vehicles and fixed route buses, etc., we will
expand projects and accumulate expertise based around autonomous driving.
 Strengthen sales of mobility services such as in-vehicle service platforms thatutilize artificial intelligence (AI).
2. Robot & AI Business ~ Focus on the service robots area! ~ The development of solutions that utilize service robots and related consulting will
expand.
 Training of robotics and AI engineers in a period of change that will change theworkstyle due to the spread of COVID-19 will lead to increased orders.
3. Internet Services Business ~ Focus on highly profitable areas through selection andconcentration! ~ We will aim to increase the number of orders received in the fields of service
development, for cashless payment, and to expand and enhance our outsourced
development laboratories.
 We will expand into internet service projects based around 5G and IoT and AI.
 Expansion from technical support such as development and verification to operational
services and direction to run the service.
4. Work Process Systems Business ~Invest energies into alliance-based business!~ Expanded service menu utilizing OSS (Open Source Software) to increase orders for DX
projects.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

14

2. Framework Design Business
Outlook for this Period

compared to previous period

Net Sales 5,667 million yen ▲1.8％

compared to previous period

Operating Profit 1,010 million yen ▲4.5％

Although market trends are unclear due to the spread of COVID-19, we willcontinue and horizontally expand existing businesses, expand services in new
businesses, and review sales methods.
1. Continue and horizontally expand existing businesses
 Continuation and horizontal expansion of projects centered on insurance/financial systems,
business systems and infrastructure building.
2. Work proactively to secure orders for projects based on the keyword of Digital
Transformation (DX) Accumulate know-how and establish sales channels in order to receive orders for coresystem renewal and infrastructure building (cloud computing) projects.
3. Engage proactively in new business operations with a focus on collaboration throughout
Systena, and collaborative partnerships with manufacturers and vendors
 Expand services such as business automation (RPA), AI, security, cloud, and remote
operation, and increase orders for license sales and implementation support services bystrengthening cooperation between headquarters, manufacturers, and agents.。
4. Response to the declaration of a state of emergency (refraining from going outside) Promotion of staggered working hours, shift work, telework, and remote support forbusiness continuity
 From exhibitions, seminars, and face-to-face sales to webinars, web conferences, and web
sales
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

15

3. IT Service Business
Outlook for this Period

compared to previous period

Net Sales 9,282 million yen +7.3％

compared to previous period

Operating Profit 1,116 million yen ▲11.7％

1. Focus on service offerings and alliances that are tailored tothe business impact of customers

 Promoting telework in the wake of the global spread of COVID-19.
We further strengthen our telework and remote work style from a mainly onsite
work style. Focusing on alliances with vendors to provide solutions such as
telework promotion.

2. Promote the development of new products and services
through the use of inside sales

 We will further strengthen our product lineup to meet new markets, customers,
and needs, including AI-related services, RPA, security enhancement support,
and IT training, and expand the number of customers and sales by promoting thecreation, expansion, and development of services through the use of inside sales
and other means.

3. Shift management resources to high value-added projects

 We have transformed our services from help desk and system operator, services
that mobilize human resources, to high value-added IT support, IT infrastructure,
PMO, DX-related support, and cloud installation/support, to develop contracted
operations on a per-service basis, providing services directly related to customer
business development.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

16

4. Solution Sales Business
Outlook for this Period

compared to previous period

Net Sales 22,000 million yen ▲15.0％

compared to previous period

Operating Profit 1,199 million yen ▲26.1％

Facing a difficult start due to a reduction in sales activities
because of the spread of COVID-19 and the end of special
demand for Windows with the end of support for Windows 7.
Shift the focus to existing business expansion and growth areas
based on the expanded customer base
1. Investment in expanding the solutions segment
 Expand the service menu and expand sales to the profit division
2. Enhance initiatives aimed at hybrid environments
 Bolster response for hybrid environments and alliances withcloud partners
3. Strengthen earnings capacity through expanded sales of services

 Provide ALL Systena's services on a one-stop basis

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

175. Cloud Business

Outlook for this Period

compared to previous period

Net Sales 1,327 million yen ▲5.5％

compared to previous period

Operating Profit 190 million yen ▲9.2％

During this period, we will aim to increase and expand sales of our own
proprietary services, primarily Canbus., and stimulate demand throughadvance investments aimed at increasing brand recognition, enhancing
product power and improving the level of customer satisfaction.

1. Increase in inquiries by increasing recognition of Canbus.

 Increased orders for the building and replacement of businesssystems aimed at improving business efficiency and productivity fromcompanies implementing workstyle reforms such as DX and telework.
2. Enhancing services through advance investment
 In order to enable the realization of various services, we will enhance
our product power and bolster our human resources to improve
our support capabilities. We will also achieve an increased level ofcustomer satisfaction.

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

18

6. Overseas Business（Systena America Inc.）
Outlook for this Period

Year-on-year

Net Sales 158 million yen +7.2％

compared to previous period

Operating Profit ▲22 million yen ▲5million yen

1. Sales expansion of AI/IoT services in collaboration with ONE
Tech Inc. and ONE Tech Japan Inc.

 We will expand our sales to the same industries where we haveintroduced services.
 We will Exhibit microAI and other IoT solutions at multiple exhibitionsin the U.S. to expand sales.

2. Technical support for Japanese-owned manufacturing industry
in the U.S.

 We will work to maintain orders for continuous projects and secureorders for new projects from Japanese-owned companies with which
we have existing transactions, and utilize the offshore development in
Vietnam.

3. Begin full-scale sale of StrongKey products in the U.S. as well

 At the same time as selling in Japan, we will also bolster sales of
Security products for companies with branches in California, USA, tocoincide with the enforcement of the CCPA* in 2020 July.

* The CCPA (California Consumer Privacy Act) is a California state law that gives consumers the right for control of the handling of their own personal
information. The act applies not only to companies located within the state of California, but all companies that have net sales of a certain level ($25
million and above) and have acquired personal information (including business cards and e-mail addresses) from citizens of the state of California.

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

19

Earnings Forecast for the Full Year (Consolidated)

Sales by Segment
Fiscal 2020
Earnings Forecast（in millions of yens）

Fiscal 2019

YoY rate
Amount ofrate of changechangeAmountSales distribution
ratio

AmountSales distribution
ratio

24,05938.7%

22,914

35.5％

1,144

5.0％

Framework
Design

5,667

9.1%

5,771

8.9％

▲104

▲1.8％

IT Service

9,282

14.9%

8,650

13.4％

631

7.3％

Solution
Sales

22,00035.4%

25,887

40.1％

Cloud

1,327

2.1%

1,404

2.2％

▲77

▲5.5％

Overseas

158

0.3%

147

0.2％

10

7.2％

Investment
Incubation

334

0.5%

213

0.3％

120

56.5%

▲600 ▲1.0%

▲437

▲0.6

▲162

－

64,552100.0％▲2,325▲3.6％

Solution
DesignAdjustment
Total

62,227100.0%▲3,887 ▲15.0％

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

20

Earnings Forecast for the Full Year (Consolidated)

Operating profit by Segment
Fiscal 2020
Earnings Forecast

Fiscal 2019（in millions of yens）

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

4,106

17.1％

4,059

17.7％

46

1.1％

1,010

17.8％

1,057

18.3％

▲47

▲4.5％

IT Service

1,116

12.0％

1,264

14.6％

▲148 ▲11.7％

Solution
Sales

1,199

5.5％

1,622

6.3％

▲423 ▲26.1％

Cloud

190

14.3％

209

14.9％

▲19

▲9.2％

Overseas▲22▲13.9％▲16▲11.2％▲5―

Investment
Incubation

35

10.5％

▲33

▲15.7％

68

204.6％

Adjustment

－

－

－

－

－

－

7,634

12.3％

8,163

12.6％

▲529

▲6.5％

Total

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

rate ofchange21

Earnings Forecast
Composition of Net Sales and Operating Profit by Segment
Overseas
Cloud

Net sales
0.3% ¥62,227mil

Investment &Incubation

0.5%

2.5%

2.1%

Solution
Sales

35.4%

Solution
Sales

Solution
Design

15.7%

38.7%

Framework
IT Service Design

14.9%

Adjustment

Cloud

Operating profit¥7,634mil

9.1%
▲1.0%

IT Service

Solution
Design

14.6%

53.8%

Framework
Design13.2%
Overseas▲0.3％
Investment & Incubation 0.5%
Adjustment－%

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

22

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

23

(1) Basic Management Policy
The management objective of the Systena Group is

to become one of Japan’s leading IT
companies and support the Japanese
economy from the ground up!

To achieve this, we embrace the basic policy ofbalanced management, controlling the conflicting
qualities of “destruction and creation,” “stability
and growth” and “maintenance and innovation”
in the right balance while continually placing theaxis of management at the central point of thependulum.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

24

(2) Targeted Management Indicators

 Stable and high dividends
 High return on equity
 High ratio of operating profit to sales
To achieve these targets, we will strive
to establish a high earnings structure
consistent with a basic management
policy emphasizing balance between
growth and stability.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

25

Systena
New medium-term
management plan
＜five-year＞（Fiscal 2019～ Fiscal 2023）
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

26

New Five-Year Medium-Term plan
Major Management Policy

Improve Productivity with Data-Driven
Management
 We will implement high-precision cost pricemanagement and grasp real profits and losses
at an early stage by utilizing IT business
management systems built using our proprietary
Systena-developed platform Canbus.
 Based on visualization of management data andmanagement information enumerated using
predictive AI, we will seek to thoroughly improve
productivity with the aim of maximizing profits.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

27

New Five-Year Medium-Term plan
Strategies(1) Automotive(2) “Cashless”/payment settlement(3) Robotics/IoT/RPA/cloud(4) Own-brand products and services

We will focus management
resources on the fields
expected to experience themost growth over the next
decade.

Targeted Management Indicators and Outlook for Fiscal 2023
(hundreds of millions of yen)

KPI

2019/32020/32021/32024/3

Net Sales

59,74264,55262,227101,000

6,902

8,163

7,634

15,200 

Operating profit of 15.2 billion
yen

Operating profit
margin

11.6％

12.6％

12.3％



Operating profit margin of 15%

Operating profit
per employee

2.16

2.32

1.89

Operating profit per employee of
2.6 million yenROE of 25％

24.6％

25.5％

20.6％

Operating Profit

ROE

Earnings
Forecast（1.7x）（2.2x）

15.0％
2.60(20％ increase)

We will aim to achieve:Net sales of 101 billion yen

25％

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28

１.Solution Design Business

Aim to expand business operations to a wide range of industries with technical support
utilizing technological capabilities developed through service experience in the in-vehicle
and net business fields, which have grown into core business areas.
Aim to expand business operations in the robotics industry, where demand is expected
to increase due to personnel shortages and other such factors, based on our extensive
development track record.
Also aim to expand business operations in the work process field by increasing our trackrecord in developing work process systems, the need for which stems from factors such as
personnel shortages, DX and replacement/renewal of legacy systems.
2020

In-vehicle

2021

Robotics

Communication robots

Net business

Olympic related

10.2 billion yen

Educational reform

Work process

Workstyle reform

FY2019

Medical robots & systems

Expansion of transactions with mainstay customers

Operating Profit:
3.7 billion yen

Operating Profit:
4.0 billion yen

6.0 billion yen

5G-related services
AI and RPA

5.0 billion yen

Increasing demand with AI, IoT and other technology elements

20.0 billion yen
Digital transformation (DX)
Solutions to tackle personnel shortages

FY2020 outlook

Net Sales: 22.9
billion yen

2024

Industrial robots

Open source utilization

Net Sales: 21.2
billion yen

State of progress

Safety solutions

Lifestyle robots (nursing care & lifestyle support)

800 million yen

2023

Autonomous driving

Connected cars

Infotainment

FY2018MaaS

Car sharing

2.7 billion yen

2.3 billion yen

2022

5.0 billion yen

FY2023 target
Net sales growth of 1.9x andoperating profit growth of 2.2x

Net Sales: 24
billion yen
Operating Profit:
4.1 billion yen

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Net Sales: 40.95
billion yen
Operating Profit:
8.1 billion yen

29

2. Framework Design Business


Deploy finance and insurance-related expertise accumulated so far, while at the sametime seeking to accumulate expertise for responding to needs for digitalization anddeploying this expertise proactively in serving both new and existing customers.
Expand and enhance services with a focus on automation.
Operating Profit: 0 →300 million yen

Net Sales: 0 → 1.5
billion yen

Accumulate and deploy expertise for response to needs for digitalization in new fields

Insurance

Socialinfrastruc
tureOpen source

Agile

Cloud

Net Sales: 4.76 → 6.0
billion yen

Banking

IT infrastructure

Electronic
payments

Package utilization

Cashless payment

Operating Profit: 100 →500 million yen

本部間協業・

Expansion and enhancement of new services with afocus on automation and streamlining
FY2018FY2019Net Sales: 5.3
billion yen

Net Sales: 5.7
billion yen

Operating Profit:
800 million yen

Operating Profit:
1 billion yen

State of progress

SCM/CRM

Operating Profit: 750 →800 million yen

Expand business domains, renew andintegrate mission-critical systems to
respond to digitalization with respect
to existing customers
Net Sales: 0.54 → 2.5
billion yen

Front system

FinTechDigitalization

Point conversion

Net banking

Automateddiagnosis

Deployment
supportLicense sales

AI-related

FY2020 outlook

FY2023 target
Net sales growth of 1.8x andoperating profit growth of 2.0x

Net Sales: 9.4
billion yen
Operating Profit:
1.6 billion yen

Net Sales: 5.6
billion yen
Operating Profit:
1 billion yen

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

30

3. IT Service Business
Create and implement a new business model together with customers, and become atransformational organization that raises corporate value through continually tackling newchallenges based on experiences and past results.
•••

We will engage in outsourced business operations on an individual service basis, withservices such as IT support, IT infrastructure, PMO and LABO offering high added value
based on expertise developed through various projects.
As market trends become more short-lived and change drastically, we will shift to providing
services to match essential (i.e. indispensable) parts and trends in order to link in directly withcustomers business operations.
Most recently, we are working to increase customer number and sales by investing efforts
into delivering new products and services such as AI, chat bots and RPA.

Stable recruitment of engineers

Infrastructurework
FY2018PMO
work

FY2019

By increasing sales from outsourced businesses such as IT
support, IT infrastructure, PMO and LABO from current salesof 4.5 billion yen to 8.0 billion yen five years from now, we
will seek to increase our overall gross profit margin from
30% to 34%.

FY2020 outlook

FY2023 target

Increase number of customers

Net Sales: 7.8
billion yen

Net Sales: 8.6
billion yen

Operating Profit:
1.1 billion yen

Operating Profit:
1.2 billion yen

State of progress

RPA , AI,
chat bots

980 → 1600

Bolster
recruitAn increase of 620 ment

Speed up & bolster human resources development,
shorten development time from 5 years to 2 years

Enhance product lineup

Net sales growth of 1.4x andoperating profit growth of 2.2x

Net Sales: 11.06
billion yen
Operating Profit:
2.35 billion yen

Net Sales: 9.2
billion yen
Operating Profit:
1.1 billion yen

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

31

4. Solution Sales Business
Provide solution services aimed at solving management issues faced by customers (suchas improving productivity, reducing costs, and bolstering security) using Systena’s overallsales capabilities in order to create and expand added-value business, and transform into
an ICT partner that supports customers’ business operations; and link thistransformation on to a continuous improvement in sales and profits.

Business
Strategy

Numerical
Targets

FY2018Bolster response to data centers and hybrid environments
Increase inter-divisional synergies and expand services
Expand subscription and stock businesses

Existing business

Service business

FY2023

FY2023

FY2023+34%
increase+176%
increase+341%
increase

FY2018FY2018FY2018FY2019FY2020 outlook

Net Sales: 24.0
billion yen

Net Sales: 25.8
billion yen

Operating Profit:
1.2 billion yen

Operating Profit:
1.6 billion yen

State of progress

Cloud business

Operating profit of 6％, net service sales of
11.4 billion yen and percentage sales of 30%
Net Sales: 22
billion yen
Operating Profit:
1.2 billion yen

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FY2023 target
Net Sales: 36.58
billion yen
Operating Profit:
2.3 billion yen

32

5. Cloud BusinessImplement a high added-value subscription model, primarily for Canbus.



Aim to achieve growth with high added-value business operations in the field of work
process SI, utilizing the advantages of Canbus.



Aim to expand and enhance new services and achieve further growth through researchand development of new technology elements such as AI and IoT.
2020

2021

Workstyle reform

AI and RPA

2022

2023

2024

Digital transformation (DX)
Measures against personnel shortages

Canbus. is a business application
platform. This service enables anyone
to create and operate work processservices easily, irrespective of their IT
literacy. We will appeal to customers
about its capabilities to resolve
corporate management issues such as
DX and workstyle reform.

FY2018FY2019New Services

We will create new services from
R&D, primarily in areas such as IoT,
AI and security.

FY2020 outlook

Net Sales: 1.1
billion yen

Net Sales: 1.4
billion yen

Operating Profit:
200 million yen

Operating Profit:
200 million yen

State of progress

CloudStep groupware can be used as
an add-on for G Suite and Office365.
We will appeal to customers about
its capabilities to improve corporate
productivity and workstyle diversity.

Achieve targets in global business, armed with own-brandproducts and services and content based in Japanese culture

FY2023 target
Net Sales: 1.97
billion yen
Operating Profit:
500 million yen

Net Sales: 1.3 billion
yen
Operating Profit:
200 million yen

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

33

6. Overseas Business（Systena America Inc. ） Aim to increase joint orders with OneTech in the continuously expanding field of IoT,
based on technical support for Japanese-owned companies in the United States.
 Provide support for countermeasures against data leaks for public institutions andprivate sector companies in Japan, by providing the latest technologies including
StrongKey cyber security products; and unearth new technologies and markets.

Business
Strategy Bolster technical support for Japanese-owned companies in the U.S.
 Increase orders received for IoT projects, both in the U.S. and globally Bolster support for cyber security measures in Japan

Cyber security

IoT

Technical support

FY2023

FY2023

FY2023

Key fields
FY2018FY2018Fy2018Contribution to Systena (Japan): Net Sales: 1.5 billion yen, Operating Profit: 800 million yen

FY2018FY2019FY2020 outlook

Net Sales: 100
million yen

Net Sales: 100
million yen

Operating Profit:-30 million yen

Operating Profit:-10 million yen

State of progress

FY2023 target
Unearh the next newtechnologies and markets

Net Sales: 150
million yen
Operating Profit:-20 million yen

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Net Sales: 640
million yen
Operating Profit:
250 million yen

34

７．Collaboration with Overseas Business

Systena America

Collaboration

Collaboration

ONE Tech
Strongkey

Japan
Sales activities

System building anddeployment support

Technical support

Solution Sales GroupNew Planning GroupONE Techi Japan Inc,*

In investment incubation businesses, we will aim
to achieve net sales of 400 million yen andoperating profit of 100 million yen by FY2023.

SupportDevelopment

IT Management
Business Group

Solution Design GroupWe will aim to consolidate the strengths of each division anddeliver these services in Japan with an “All Systena” approach.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

35

Earnings Forecast for Fiscal 2023
Composition of Net Sales and Operating Profit by Segment

Overseas
Cloud

Net sales¥101bil

Operating profit¥15.2bilInvestment &Overseas
Incubation
0.4% Cloud 1.6%

0.6%

1.9%

Investment &Incubation

0.7%

3.3%

Solution
DesignSolution
Sales

36.2%

40.6%

Solution
Sales

15.1%

IT Service

15.5%

IT Service

11.0%

9.3%

Framework
DesignSolution
Design

53.3%

10.5%
Framework
DesignCopyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

36

Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.

Making digital society a happy society.
Systena IT Services

https://www.systena.co.jp/
The earnings forecasts described in this document and mentions of future events are predications based on theinformation available at the time of publication, and may incorporate uncertain factors.
Please note that actual business performance can fluctuate due to various factors including changes in theeconomic or business environment.
Copyright ⓒ 2010 - 2020 Systena Corporation All Rights Reserved.