TSE Prime
Shift to the Smart SI

Securities code: 4687

Fiscal Year Ended March 31, 2024
Financial Results Briefing
May 24, 2024

TDC SOFT Inc.

© 2024 TDC SOFT Inc.

1

Agenda1

Overview of Consolidated Financial Results for Fiscal Year Ended March 31, 2024

2

Status of Key Measures for Fiscal Year Ended March 31, 2024

3

Outlook for the Fiscal Year Ending March 31, 2025
Hiroyoshi Kobayashi, President and Representative Director

4

Details of Financial Results for Fiscal Year Ended March 31, 2024
Tsuyoshi Ogaki, Director and Executive Officer in charge of Administration© 2024 TDC SOFT Inc.

2

1
Overview of Consolidated Financial Resultsfor Fiscal Year Ended March 31, 2024

© 2024 TDC SOFT Inc.

3

Overview of Consolidated Financial Results forFiscal Year Ended March 31, 2024
(Millions of Yen)FY Ended March
2024

Profit Margin

YOY

FY Ended March
2023

39,698-12.6%

35,242Gross profit

8,112

20.4%

8.5%

7,479

Operating profit

3,807

9.6%

10.1%

3,458

Ordinary profit

4,253

10.7%

14.5%

3,714

Net income

3,089

7.8%

24.1%

2,490

ROE

17.7%

-12.6%

15.7%

Dividends

48 yen-6.7%

45 yenNet sales* The Company conducted a 2-for-1 share split of common stock, effective April 1, 2024.
For the fiscal years ended March 31, 2023 and 2024, the indicated dividend amounts are from before the stock split.

Highlights● During the fiscal year under review, strategic IT investment demand remained active, and we made solid progress in all business fields
starting from the beginning of the year.
● Based on our “SmartWork Concept,” we actively promoted investment aimed at future business expansion, including head officerelocation, and, although our costs increased, increased earnings still resulted in increased operating profit.
● Due to our gain on sales of investment securities as well as reduced taxes resulting from the application of the Wage Increase
Promotion Tax System, our net profit margin increased even more.
© 2024 TDC SOFT Inc.

4

Highlights of Each Field
IT Consulting & Services Field(Hundreds of millions of yen)70

+18.0% YOY675760IT Solutions for Financial Services Field+10.8% YOY(Hundreds of millions of yen)

Solid progress on SaaSsolution projects

5040302023.3180170160150
1401301202024.3

176
1592023.3

IT Solutions for Public Corporations Field(Hundreds of millions of yen)110

+11.8% YOY
106

95

100

80702023.3© 2024 TDC SOFT Inc.

2024.32024.3

Platform Solutions Field(Hundreds of millions of yen)

50

Solid progress ondevelopment projects for
public agencies and thetransportation sector

90

Strong progress ondevelopment projects
for banking systems
in particular40+14.1% YOY
46403020
2023.32024.3

Solid progress on
projects to build
infrastructure for thebanking sector
52
Status of Key Measures for
Fiscal Year Ended March 31, 2024

© 2024 TDC SOFT Inc.

6

Medium-Term Management Plan “”

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

Expand our businessdomainWe will tap into the latest elemental
technologies to expand our high-valueadded integration services based on thepotential needs of society and ourcustomers.

Create high-valueadded SI services© 2024 TDC SOFT Inc.

Keystrategies

We will use innovativeapproaches to develop an SI
process designed to ensure highproductivity and high quality.

Support
SI model reforms

7Key Strategy (1): Create high-value-added SI services(Millions of yen)

Net sales increased by 5.3 times over five years

Steady expansion of next-generation SI business

12,000
10,137
10,000
8,630
8,000
6,000

5,390

4,000

Our net sales have increased by 5.3 times in thelast five years,
driven by agile development and the cloud field,
which have expanded to account for 25.5% of
our consolidated net sales.

3,362
1,886

2,000
0FY Ended FY Ended FY Ended FY Ended FY EndedMarch
March
March
MarchMarch
2019
2020
2021
2022
2023

© 2024 TDC SOFT Inc.

Next-generation SI business
By identifying the latent needs of our customers andemploying the latest elemental technologies in areas
such as agile development and security, we provide highvalue-added services that also reduce user costs,
including time and effort, through our integration services
8Key Strategy (2): Support SI Model Reforms
Eradication of troubled projects
We have introduced a system for visualizing project
performance evaluations and update its features asappropriate.
We also constantly strive to increase efficiency.
Project performance evaluation

Relocation of the headquarters as partof the "SmartWork Concept"
In line with our “Re:Place” concept, we have minimized
walls and set up multifunction zones for our new office.
By ensuring a comfortable workspace, we areachieving more efficient work and effectively
encouraging communication.

Our system enables project performance evaluation byvisualizing the skill elements and systems (personnelcomposition) necessary to promote each project.

Our aim is to improve both productivity andengineers’ engagement.
* Provided for illustrative purposes

9Key Strategy (3) Expand Our Business Domain(Millions of yen)

1,532

1600
1400

Securing capabilities to expand ourbusiness domain
Consulting business and service product sales business+50% year on year

1200

1,022

934

1000

800
657

We expanded our service product sales business byenhancing our marketing and product sales functions, and we
promoted efforts to expand our consulting business bychanging our expertise into assets and using them to train
personnel.

600400598
200

Consultingbusiness
Service productsales business

365

0Fiscal 2022
© 2024 TDC SOFT Inc.

Fiscal 2023
103
Outlook for the Fiscal YearEnding March 31, 2025

© 2024 TDC SOFT Inc.

11

Outlook for the Fiscal Year Ending March 31, 2025 (By Field)
IT Consulting & Services Field(Hundreds of millions of yen)80

+17.9% YOY
79

67

70
60
50

+5.1% YOY
Our SaaS, iPaaS, and othercloud solutions are solid.
We will further expand
high-profitability Prime
projects.

402024.3

IT Solutions for Financial Services Field

2025.3(Hundreds of millions of yen)

200
190
180
170
160
150
1401302024.3

IT Solutions for Public Corporations Field(Hundreds of millions of yen)

130
120
110
100
9080

+11.3% YOY
118

106

2024.3© 2024 TDC SOFT Inc.

2025.3176

Due to the good progressof cloud migration andmodernization demand,
we will expand mainly inthe credit and banking
fields.

2025.3

Platform Solutions Field(Hundreds of millions of yen)This field is being driven bylarge-scale public projects andtransportation system demand.
We will continue striving to
expand our business byproviding support starting withour customers’ IT planning as
their strategic partner.

185+4.3% YOY

60504648

2024.32025.340

Our business is expected
to steadily expand due toongoing cloud needs.

302012

Outlook for the Fiscal Year Ending March 31, 2025
Final Results Forecast and Dividend Forecast(Millions of Yen)

Second Quarter(Cumulative)

Full Fiscal YearNet sales

OperatingprofitOrdinary
profit

Net income

20,460

1,950

2,050

1,377

(+8.5%)(+4.9%)(+6.2%)(+5.1%)

43,000

4,300

4,600

3,090

(+8.3%)(+12.9%)(+8.1%)(+0.0%)EPS(yen)DividendForecast(yen)28.93

ー64.91

24* The Company conducted a 2-for-1 share split of common stock, effective April 1, 2024.
Regarding the dividend forecast for the fiscal year ended March 31, 2025, the indicated figures are from after the stock split.

● The business environment is projected to remain robust, and we have therefore increased our Medium-Term Management
Plan performance target by 7.5%, from net sales of ¥40 billion to ¥43 billion.
● We will maintain an operating profit margin of 10% as we continue to actively invest in future business expansion,
including acquiring advanced elemental technologies and securing and training human resources.
● Although our ordinary profit is expected to increase due to increased earnings,
our net profit is expected to stay about the same as last year due to the loss of tax decrease effects.
© 2024 TDC SOFT Inc.

13

4Details of Financial Results for
Fiscal Year Ended March 31, 2024

© 2024 TDC SOFT Inc.

14

● Financial Statements● Net Sales Analysis● Orders Received/Backlog● Operating Profit Analysis© 2024 TDC SOFT Inc.

15

Financial Statements
Statement of Income(Millions of Yen)FY EndedMarch 2024

Balance SheetFY EndedMarch 2023Change

End of FY Ended
March 2024

End of FY Ended
March 2023

25,505

22,771

12.0%

20,434

18,827

8.5%

5,071

3,943

28.6%

7,028

6,361

10.5%

6,378

6,045

5.5%

649

316

105.6%

Total net assets

18,477

16,409

12.6%

Total liabilities and netassets

25,505

22,771

12.0%

Owners’ equity ratio

72.44%

72.06%

0.5%

Net assets per share392.16 yen

344.24 yen

13.9%(Millions of Yen)

39,69835,242

12.6%

13,464

12,364

8.9%

Current assets

16,93814,501

16.8%

Non-current assets

Other expenses

1,173

922

27.2%

In-processincrease/decrease

9(25)

-137%

Current liabilities

Cost of sales

31,58527,76313.8%

Non-current liabilities

Gross profit

8,112

7,479

8.5%

Selling, general andadministrative
expenses

4,304

4,020

7.1%

Operating profit

3,807

3,458

10.1%

445

255

74.5%

Ordinary profit

4,253

3,714

14.5%

Profit before income
taxes

4,253

3,714

14.5%

Net income

3,089

2,490

24.1%

64.90 yen

52.17 yen

24.4%

Net sales
Labor expenses
Outsourcing
expensesNon-operating
income/expenses

EPS© 2024 TDC SOFT Inc.

Total assets

Total liabilities

Change16

Financial Statements
Statement of Cash Flows
Balance of cash etc. at the beginning of theperiod

3,022

(296)
CF from
investingactivities

12,010
CF from
operatingactivities(1,357)
13,378

Profit before income taxes

4,253

Increase in notes and accounts receivable-trade andcontract assets

(725)

Other
Income taxes

CF fromfinancing
activities© 2024 TDC SOFT Inc.

871
(1,377)

CF from operating activities

3,022

Purchase of property, plant and equipment(901)

Proceeds from sales of investment securities

523

Other82

CF from investing activities(296)

Purchase of treasury stock(616)

Dividend payment

(726)

Other

Balance of cash etc.
at the beginning ofthe period

12,010(15)

CF from financing activities(1,357)

Balance of cash etc. at the end of the period

13,378

Balance of cash etc.
at the end of theperiod
17Overview of Sales by Customer Industry(Millions of yen)

FY Ended March 2022

FY Ended March 2023

FY Ended March 2024

10,527
9,791
7,673
7,137
5,338

8,260

7,166
5,330

5,046

6,197

4,760

4,268

5,0174,622

4,382

3,308

4,027
3,010

Banking

CreditInsurance

Manufacturing

Non-Manufacturing Public agencies andorganizations

Finance© 2024 TDC SOFT Inc.

18

Orders Received/Backlog(Millions of yen)

22,604

Orders received
17,713
15,421

15,908Backlog

Net sales

10,128

8,831

8,808

16,263

16,79518,45018,856

20,841

H2

H1

H2

H1

H2

7,793

7,472

14,661H1FY Ended March 2022
© 2024 TDC SOFT Inc.

19,351

18,4278,000

FY Ended March 2023

8,800

8,585

FY Ended March 2024
19

Operating Profit Analysis(Millions of yen)

+632+283

3,807
Sales
expenses

3,458© 2024 TDC SOFT Inc.

+ Increase in net sales leading to profit
improvement<SG&A expenses>+ Expanding the hiring of new graduates+ Acquiring new technologies for theexpansion of next-generation SI business+ Relocating the headquarters as a part ofthe "Smart Work Concept"

Gross profit

FY Ended March 2023

<Gross profit>

FY Ended March 202420

Shift to the Smart SI

https://www.tdc.co.jp/*Note on this document:
The matters related to the forecasts of the TDC SOFT Group in thisdocument
have been determined based on currently available information and maychange due to uncertain factors inherent in forecasts and/or changes in thesituation surrounding business operation going forward.

© 2024 TDC SOFT Inc.

21