TSE Prime
Securities code: 4687

Fiscal Year Ended March 31, 2023
Financial Results Briefing
May 23, 2023

TDC SOFT Inc.

© 2023 TDC SOFT Inc.

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１

Overview of Consolidated Financial Results for Fiscal Year Ended March 31, 2023

２

Status of Key Measures for Fiscal Year Ended March 31, 2023

３

Outlook for the Fiscal Year Ending March 31, 2024
Hiroyoshi Kobayashi, President and Representative Director

４

Details of Financial Results for Fiscal Year Ended March 31, 2023
Tsuyoshi Ogaki, Director and Executive Officer in charge of Administration© 2023 TDC SOFT Inc.

2Important Points in Fiscal Year Ended March 31, 2023

Performance during the Fiscal Year Ended March 31, 2023
● Net sales reached ¥35.2 billion, a 14.0% increase year on year, and operating profit was ¥3.45 billion, a 16.6% increase
year on year.
● Order environment remains strong in all business fields, even at the start of fiscal year ending March 31, 2024.

Topics● Solid Progress in All Business Fields
All business fields, led by the continuous high-growth IT Consulting & Services field, made solid progress, growing
from the previous year's results●Promoted Proactive Forward-Looking Investment Measures
In light of solid business operating conditions, aggressively promoted investment measures to expand our businessdomain and secure and train talent, more than planned at the beginning of the fiscal year

© 2023 TDC SOFT Inc.

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１
Overview of Consolidated Financial Resultsfor Fiscal Year Ended March 31, 2023

© 2023 TDC SOFT Inc.

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１

Overview of Consolidated Financial Results for Fiscal
Year Ended March 31, 2023

Overview ofFinancialResults

FY Ended March2023

Profit MarginNet sales

35,242-+14.0%30,925Gross profit7,47921.2%+16.4%

6,423

Operating profit

3,458

9.8%

+16.6%

2,967

Ordinary profit

3,714

10.5%

+20.5%

3,082

Net income

2,490

7.1%

+20.4%

2,069(Millions of Yen)YOY

FY Ended March2022[Highlights]● All business fields made solid progress since the beginning of the fiscal year due toactive demand for strategic IT investments against the backdrop of DX● Steady expansion of high-value-added SI services and improved profitability● Aggressive investment for further business expansion in the future in light of robust
business operating conditions© 2023 TDC SOFT Inc.

5１

Overview ofFinancial
Results

Highlights of Each Field

IT Consulting & Services+47.9% YOY

5,733

6,000
5,000

3,877

4,000
3,000
2,000

2022.32023.3

Provides solution services to promote customers’ DX, including IT
strategy and systemization concept planning, technical consulting,educational services, in-house cloud applications, BI/DWH, ERP,
CRM, etc.

Increased the number of highly profitable prime
projects in cloud-based solutions such as SaaS andiPaaS.

IT Solutions for Financial Services+10.5% YOY
18,00015,00014,39315,900

Growth driven by large credit-related projects.
Cloud computing and modernization demand is thriving.

12,0009,000
6,000© 2023 TDC SOFT Inc.

Provides integrated IT solutions for the financial industry, including
systemization planning, design, development, maintenance, etc.

2022.32023.3

１

Overview ofFinancialResults

Highlights of Each Field

IT Solutions for Public Corporations+8.1% YOY
10,000

8,795

9,000

9,511

8,000
7,000
6,000
2022.32023.3

Provides integrated IT solutions for the distribution, manufacturing,service, and public sectors, including systemization planning,
design, development, maintenance, etc.

Growth driven by development projects for thetransportation industry and the automobile, steel, andother manufacturing industries.
In addition, cross-selling of security services has
expanded the number of offerings.

Platform Solutions+6.2% YOY
4,400

3,858

4,098

3,800

Provides environmental design, construction, operational support,
network product development, network integration, etc. for IT
infrastructure

Solid progress on projects to build cloud-related
infrastructure.

3,200

2,600
2,0002022.3© 2023 TDC SOFT Inc.

2023.3
7２
Status of Key Measures for Fiscal Year
Ended March 31, 2023

© 2023 TDC SOFT Inc.

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２

Status of KeyMeasures

Medium-Term Management Plan “”

We will expand our business into new domains based around ourexisting SI business and acquire the capabilities needed for new
business models in an aim to become a new type of nextgeneration system integrator.

Expand ourbusiness domain
We will tap into the latest elemental
technologies to expand our high-value-added
integration services based on the potential
needs of society and our customers.

Create high-valueadded SI services© 2023 TDC SOFT Inc.

KeyStrategies

We will use innovative approaches todevelop an SI process designed toensure high productivity and highquality.

Support SI modelreforms

9２

Status of KeyMeasures

Create High-Value Added SI Services

Overview of the Next-Generation SI Business
The next-generation SI business is steadily growing.

The business has grown to make up
Changes in Next-Generation SI Business Sales Ratio and Net Sales(millions of yen)
24.5% of net sales, driven by agile
development and cloud-related fields.
8,630
9,000
The expansion of this business and the7,500
increase in the proportion of net sales
25%
5,390
6,000contributed significantly to theimprovement of profitability in the4,500
3,362
17%
consolidated business results.
1,886
12%
Gross profit margin
21.2%（+0.4% YOY) 3,000
Next-Generation SI Business
Integration services that capture customers’ potential needs, tap into thelatest elemental technologies in agile development and security, and provide
high-value-added services while also reducing the costs to the user,
including time as well as effort.

© 2023 TDC SOFT Inc.

1,500

661

03%

7%

30%

25%
20%
15%

10%
5%
0%

FY Ended
FY Ended
FY EndedFY EndedFY Ended
March 2019 March 2020 March 2021 March 2022 March 2023

10２

Status of KeyMeasures

Create High-Value Added SI Services(Status of Key Strategic Fields)

Agile Development BusinessInformation System Security Business

Maintain net sales growth by securing
and training engineers

Cross-selling to existing customers has
expanded the number of offerings ofsecurity services(millions of yen)

Agile Development Business Sales

2000+19.2％

1,816(millions of yen)

400

1,523

1600

300

Information System Security
Business Sales+21.5％

368

303

1200
200

800
03/2022
Full fiscal year results© 2023 TDC SOFT Inc.

03/2023
Full fiscal year results

03/2022
Full fiscal year results

03/2023
Full fiscal year results
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２

Status of KeyMeasures

Support SI Model Reforms

Elimination of troublemaking projects
Aiming to further improve efficiency by efforts
such as introducing a system to visualize
project performance evaluation.

Promotion of workplace strategy
Composed the “Smart Work Concept,” aworkplace strategy aimed at establishing anext-generation SI company.

Project Performance Evaluation
Visualization of skill elements and structure(personnel composition) required for project
promotion to enable project performance evaluation

Establishment of an environmentthat enables more motivated workas the development base,TechnoGrowth Center

Aiming to improve productivity andengineer engagement*Image is for illustrative purposes© 2023 TDC SOFT Inc.

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２

Status of KeyMeasures

Expand Our Business Domain

We will acquire the capabilities needed for new business models and expand ourbusiness into new domains based around our existing SI business domain.
Target Business 2

Target Business 3

Consulting Business

Service Sales Business

SI Business Commodity Domain

DX / IT consulting, solution
implementation consulting andeducation services

Selling products and services that meetuser needs and potential seeds

Target Business 1(millions of yen)(millions of yen)(millions of yen)

300

500

400+134%

+71%

400

300

Managed services and outsourcing
services in the SI business, including
maintenance and upkeep

+15%

250
200

300
150

200
200
100

100

100

50
00003/2022© 2023 TDC SOFT Inc.

03/2023

03/2022

03/2023

03/2022

03/2023
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２

Status of Key
Measures

Promote Proactive Forward-Looking Investment

More aggressive investment activities for further business expansion in the future in light ofrobust business operating conditions from the start of the fiscal year⚫

Increased investment in technology

Promote top-down, company-wide investment in elemental
technologies that will have a significant impact on society
and business in the future and are highly relevant to the SIbusiness.

Areas of Investment in FY2022⚫

Investments in human resources

We have been promoting aggressive recruitment
measures to secure staff, including doubling the number of
new graduate hires over the previous year.
We are also implementing multifaceted investment
policies, promoting investments in education as well asbranding aimed at improved engagement and awareness.

・Agile development
・Security

Investments in human resources

・ UXD
・Cloud native computing
・Data analytics platforms
・Front-end frameworks (newly added field)

Approx. +¥310 million

・Automation managed services (newly added field)
03/2022 results© 2023 TDC SOFT Inc.

03/2023 results
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３Outlook for the Fiscal YearEnding March 31, 2024

© 2023 TDC SOFT Inc.

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03/2024

３ Outlook

Outlook for the Fiscal Year Ending March 31, 2024 (By Field)

IT Consulting & Services+11.6% YOY
7,000
6,000
5,000
4,000
3,000
2,000

5,733

6,400

Demand for SaaS, iPaaS, and other cloud-based
enterprise solutions is expected to continue andmaintain an expansion trend.

3,877

03/2022

03/2023

03/2024

IT Solutions for Financial Services+3.8% YOY
17,00014,393

15,90016,50003/2022

03/2023

03/2024

14,00011,0008,000© 2023 TDC SOFT Inc.

Large-scale projects for credit card companies
and regional banks are expected to continue inthis fiscal year, and we anticipate an increase
in revenues due to further expansion of thebusiness domain.

03/2024

３ Outlook

Outlook for the Fiscal Year Ending March 31, 2024 (By Field)

IT Solutions for Public Corporations+6.2% YOY
11,00010,000

9,000

8,795

9,511

10,1008,000
7,000
03/2022

03/2023

Continued growth is expected centered aroundprojects from the transportation andmanufacturing industries.
Expand business as a strategic partner tosupport customers from the IT planning stage

03/2024

Platform Solutions+4.9% YOY
4,500
4,000

3,858

4,098

4,300

3,500

Steady growth is expected due to ongoing
demand for cloud-related services.

3,000

2,500
03/2022© 2023 TDC SOFT Inc.

03/2023

03/2024
1703/2024

３ Outlook

Outlook for the Fiscal Year Ending March 31, 2024

In light of robust business operating conditions, continue to invest aggressively in acquiring
cutting-edge elemental technologies and securing and training human resources, while working
to increase floor space, etc. for business expansion.

⚫ Investment to acquire technology
Agile development, security, UXD, cloudnative computing, data analytics platforms,
front-end frameworks, automation managedservices⚫ Investments in human resources
・Expand new graduate hires (+45 YOY)
・Proactive recruitment of mid-career hires
・Expand education measures
・Rebuild human resources system© 2023 TDC SOFT Inc.

⚫ Promotion of workplace strategy
Plans to relocate headquarters to realize the“Smart Work Concept”
・Promote an environment in which diverse humanresources are more motivated in their work
・Expansion of floor space for business expansion
New office:6-5, Kudan Minami 1-chome, Chiyodaku, Tokyo
Kudan-Kaikan Terrace
Floors rented: 4th and 5thMove date: Scheduled for October 202318

03/2024

３ Outlook

Outlook for the Fiscal Year Ending March 31, 2024

Financial Results and Dividend Forecast(Millions of Yen)

Net sales

Operating profit Ordinary profit

Net income

EPS(yen)Dividend
Forecast(yen)SecondQuarter(Cumulative)

17,730(+5.6%)

1,580(-14.7%)

1,650(-14.2%)

1,100(-15.5%)

46.15

ー

Full FiscalYear

37,300(+5.8%)

3,550(+2.6%)

3,750(+1.0%)

2,510(+0.8%)

105.31

40.00● Business environment is expected to remain strong and net sales are expected to grow steadily.
● Continue to promote proactive forward-looking investment measures. In particular, although head office relocation costs areexpected to be an extraordinary factor for the current fiscal year, investment costs are expected to be absorbed for the full fiscal
year due to the effect of revenue growth, resulting in higher sales and profit.
● The dividend forecast is to increase the ordinary dividend by ¥10 to ¥40 per share.

© 2023 TDC SOFT Inc.

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４Details of Financial Resultsfor Fiscal Year Ended
March 31, 2023

© 2023 TDC SOFT Inc.

20

●Financial Statements●Net Sales Analysis●Orders Received/Backlog●Operating Profit Analysis© 2023 TDC SOFT Inc.

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４03/2023
FinancialDetails

Financial Statements

Statement of Income(Millions of Yen)
Net sales
Labor expenses
Outsourcing expenses
Other expenses
In-processincrease/decrease
Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating profit
Non-operating
income/expenses
Ordinary profit
Profit before incometaxes
Net income©EPS
2023 TDC SOFT Inc.

FY Ended
March 2023

35,242
12,364
14,501922
25

Balance SheetFY Ended
March 2022

Change30,925 +14.0%
11,725+5.4%
11,909 +21.8%
790 +16.7%(75) +134.1%

27,7637,479
4,020

24,501
6,423
3,456+13.3%+16.4%+16.3%

3,458
255

2,967 +16.6%
114 +122.4%(Millions of Yen)
Total assets
Current assets
Non-current
assetsTotal liabilities

Current liabilities
Non-current
liabilities
Total net assets
Total liabilities and net
assetsOwners’ equity ratio
Net assets per share

3,714
3,714

3,082
3,082

+20.5%+20.5%

2,490
104.33

2,069
85.82

+20.4%+21.6%End of FY
End of FY
Ended March
Ended2023
March 2022

Change22,771
18,827
3,943

21,072
17,368
3,704

+8.1%
+8.4%
+6.5%

6,361
6,045
316

5,817
5,540
276

+9.4%
+9.1%
+14.5%

16,40922,771

15,25521,072

+7.6%
+8.1%

72.1%
653.4372.4%
632.64+7.6%

22４03/2023
Financial Details

Financial Statements
Balance of cash etc. at the beginning of theperiod
Profit before income taxes

Statement of Cash Flows

Increase in notes and accounts receivable-trade andcontract assets
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accrued expenses

1,951 (354)(1,440)
CF from investing
activities

11,702151 12,010

CF from operating
activities

Increase frominclusion ofsubsidiaries inconsolidation

231
130

Income taxes(1153)

CF from operating activities

1951

Proceeds from sales of investment securities

93(515)Interest and dividend income71

Other(3)

CF from investing activities(354)

Net increase (decrease) in short-term loans payable(26)

Purchase of treasury stock(304)

Dividend payment(1097)

Other
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Balance of cash etc. at the end of the period© 2023 TDC SOFT Inc.

(814)

(157)

CF from financing activities

Balance of cash etc.at thebeginning of the period3714

Other

Payments for guarantee deposits

CF from financing
activities

11702

(13)
(1440)
151
12010

Balance of cash
etc.at the end of
the period23４03/2023
Financial Details(millions of yen)

Overview of Sales by Customer Industry
FY Ended March 2021

FY Ended March 2022

FY Ended March 2023
9,791

8,260
7,166

6,853

6,197

5,338
4,970
4,382
3,895

Banking

5,046
4,945

Credit5,017

Insurance

4,622
4,027
3,350

3,308
3,277
3,010

Manufacturing Non-Manufacturing Public agenciesandorganizations

Finance© 2023 TDC SOFT Inc.

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４03/2023
Financial Details

Status of Orders Received/Backlog(millions of yen)

17,713

Orders Received
13,415

15,421

14,565

15,908Backlog

Net sales

7,430

7,793

7,472

8,152

8,831

8,808

6,650

7,067

13,186

14,106

14,661

16,263

16,79518,450

H1H2

H1

H2

H1

H2

FY Ended March 2021
© 2023 TDC SOFT Inc.

18,427FY Ended March 2022

FY Ended March 202325

４03/2023
Financial Details

Operating Profit Analysis(millions of yen) Gross profit+1,055
2,967

SG&A expenses+5643,458<Gross Profit>+ Profit grew due to an increase in sales+ Profitability improved due to a greater proportion ofsales from the next-generation SI business<SG&A Expenses>+ Proactively invested in business domain expansion+ Increased investments in human resources+ Upfront costs related to head office relocation

FY Ended March 2022

© 2023 TDC SOFT Inc.

FY Ended March 2023

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https://www.tdc.co.jp/*Note on this document:
The matters related to the forecasts of the TDC SOFT Group in this document havebeen determined based on currently available information and may change due touncertain factors inherent in forecasts and/or changes in the situation surrounding
business operation going forward.

© 2023 TDC SOFT Inc.

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