Introduction
Top Message
TIS INTEC Group Value Creation

Growth Strategy for Value Creation
P.29 Taking Long-Term Perspective on Target Trajectory
P.31 Looking Back on Past Medium-Term Management Plans
P.32 Outline of Medium-Term Management Plan
(2021–2023)

Growth Strategy for Value Creation

P.33 Key Strategy of Medium-Term Management Plan
—DX, Service-style business, payment, global,
management capability, HR
P.41 Executive Vice President’s Message 1 (Business Strategy)
P.45 Special Feature Roundtable Discussion:
TIS INTEC Group’s Human Resources Strategy x BusinessP.49 Executive Vice President’s Message 2(Financial Investment Strategy)
P53 Business Strategies by Segment

Platform for Value Creation
Corporate Information/Data28

Make society’s wishes come true through IT.

Taking Long-Term Perspective on Target Trajectory

Using advanced technology and know-how, we will add a new dimension of vitality to society and bringsmiles to the faces of more people. Our presence will shape the future of this kind of society.
The TIS INTEC Group will continue to make society’s wishes come true through the power of IT.
Introduction

The society of the future is uncharted territory, shaped by intense but still unfolding changes, and the power of IT will be
indispensable to paint this new world in bright colors. By moving forward on structural transformation to addresschanges in society and demonstrating the composite strengths of the TIS INTEC Group, we will create an enduring
presence that helps make society’s wishes come true.

2050

World in 2050
In making assumptions for 2050, we took into account 24 political, economic and social themes, in parallel withtechnological progress and the impact that such advances might have, and performed PEST analysis.

Economy• Hub of global economy will shift to emerging countries of Asia that continue to enjoy high economic growth• Disparity between countries will shrink, paralleling economic growth, but personal income gap will widen

Society• Population growth is particularly noticeable in Asia, where the benefits of economic progress have extended average life expectancy
and produced an aging society• Technological innovation is fueling economic growth in urban areas while regional economies, impacted by a decrease inpopulation and little promise of a demographic turnaround, are in decline

Technology• Technological innovation will accelerate, technological breakthroughs will become more frequent, and technology will have a major impact
on political, economic and social activity

Above

2026

70%

Group Vision 2026
“Create Exciting Future”
Utilize advanced technologies and know-how torealize business innovation and market creation

March 2024

Strategic domain ratio

Four social issues TIS identified as priorities
where Group strengths can contribute to solutions
Health concerns

Urban concentration and regional decline

Low-carbon/decarbonized society

60%
Please see
page 32.

Basic Policies

Virtuous cycle of value created jointly
by society and employees

Expandinvestment togenerate
strengths

Resource layer
Shift to human resources composition conducive
to structural transformation success

IT Offering Services

IT system
configuration andoperation

Specific
responses

Business Function
Services

Strategic Partnership
Business

Provide IT
engineeringexpertise

Service domains

IT domains

Service domains

Business Function Service (BFS)

For clients at the top of their industry, we will draw on industry foresight andbusiness knowledge that other companies cannot match—our businesstools—to explore and promote business strategies with clients and underpin
business basics.

We will combine industry and business knowledge accumulated within theGroup and utilize advanced technologies to anticipate client needs and provide
business functions as services to enhance their value chains.

IT Offering Service (IOS)

Frontier Market Creation Business (FCB)

We will combine leading-edge technologies and know-how accumulated as acorporate group to create and quickly provide IT solution services that
anticipate client needs.

We will utilize Group technology, operating know-how and customer bases tocreate new markets and business models matched to evolving industry andsocial needs and develop businesses for these markets on our own.

Corporate Information/Data

29

Medium-Term Management Plan (2021–2023)
Be a Digital Mover 2023
Accelerate structural transformation
by improving value provided in DX services

BPO services

Evolution ofstrategic domains

Strategic Partnership Business (SPB)

Diversification of human resources, sharper skills

Medium-Term Management Plan
2018–2020

Network
infrastructureservices

IT domains

Deepen andextend global
operations

Strategic domain ratio

Marketable
services

Platform for Value Creation

Business layer
Turn SI capabilities into strength that underpins
transformation into global DX partner

March 201835%

Frontier Market
Creation Business

Stakeholder layer

Generate virtuous cycle of value exchange andsustainable growth between society and employees

Improve value
provided by DX

Strategic Domains in 2026

Business
CreatorSupportingclients’ businesses

Strategic domain ratio

Strategic Domains*
Strategic Partnership Business: Lay both a revenue base and atechnology/know-how base
IT Offering Services: Prior-investment business functioning as
pillar of profit
Business Function Services: Recognized as Group forte, driverof growth
Frontier Market Creation Business: Driver of explosive growththrough creative destruction of prevailing walls

Business Domains in 2016

Medium-Term Management Plan (2021–2023)

March 2021

51%

Seeking Position on Global StageBe seen by leading companies in different industries as having
an appealing presence, always trusted as a strategic partner
Always embrace reform in existing industries and markets,and earn reputation as market-creating innovator
Transcend the limits of an IT enterprise; be a leading company
with innovative market concepts
Proudly demonstrate high profile and showcase solid standing
as a corporate group chosen by clients, society, employees—
everyone* Strategic Domains: Four business domains
will form the core of the TIS INTEC Group by
2026, as described in Group Vision 2026.

Growth Strategy for Value Creation

Financial inclusion

TIS INTEC Group Value Creation

2026 Corporate Ideal*View of the world in 2050 drawn at Sustainability Project in 2019.

Based on long-term trends, we identified four social issues—financial
inclusion, urban concentration and rural decline, low-carbon/decarbonizedsociety and health concerns—that we have the capabilities to address.

Taking advantage of the shift to an operating holding
company structure in July 2016, TIS drafted a newgroup vision that imagined the TIS INTEC Group in
2026. This guides efforts to combine the capabilities ofGroup executives and employees alike and takecorporate value to new heights.
We want clients to rely on us as a strategic partner.
To this end, we will always embrace reforms in existing
industries and markets and strive to be an innovator
creating new markets as well.

Strategic domain ratio

Top Message

Politics• Predict pension and social security system failure due to changing demographics• Trend to limit impact of corporate activities on society, with tougher restrictions on use of fossil fuels and use of resources as measures todeal with climate changeGroup Vision 2026
“Create Exciting Future”
Utilize advanced technologies and know-how torealize business innovation and market creation30

Outline of Medium-Term Management Plan (2021–2023)

We look back on the three medium-term management plans that have led the TIS INTEC Group to
the Medium-Term Management Plan (2021–2023).

The followings are Outline and progress of medium-term management plan (2021–2023 ).

Basic Concept/
Medium-Term
Management Direction

Fiscal 2019–Fiscal 2021

Fiscal 2022–Fiscal 2024

Beyond Borders 2017

Transformation to 2020

Be a Digital Mover 2023

Portfolio management

Constant transformation, with sense of speed

Portfolio management, in a project sense, blending exceptional
businesses and key strengths into a single approach

Achieving structural transformation
as a corporate family and taking the leadin finding solutions to social issues

Profit emphasis
IT brainPortfolio management
Set ROE as key performance indicatorand strive for improved corporate value
and sustainable growth

As a second step to achieve Group Vison 2026, the three years of the medium-term management plan will be a time to enhance ourvalue chain by improving the value provided in DX services, and by promoting further structural transformation, we will grow theGroup and be better positioned to address social issues.
Progress favorable towards achieving the final target by fiscal 2024, ending March 2024.
Basic Policies

Landmark changes to business landscape• With heightened importance of DX in new normal world,presence of consulting firms and other providers of DX services
is increasing, fueling intense competition.
• Global platformers and enterprise SaaS companies are
particularly active, as well, prompting possibility that market forcontract development will shrink in long term.
• ESG investment rapidly expanding, and importance ofsustainability management based on long-term strategies isgaining ground

Sustainable profit growth
Emphasis on employee self-fulfillment
Concentrate on core businesses
Shift to prior investment style of business development
Expand global business
Fiscal 2021

Key indicators
Estimates

ActualEstimates¥400 billion¥405.6 billion¥430 billion¥448.3 billion

Operating income¥30 billion¥32.7 billion¥43 billion¥45.7 billion

Operating margin

7.5%

8.1%

10.0%

10.2%

ROE

8.0%

9.9%

12.0%

10.8%

Payout ratio

16.6% in fiscal 201831.9% in fiscal 2021

Total return ratio

30.5% in fiscal 2018

42.8% in fiscal 2021

Net Sales
Fiscal 2021 Actual¥448.3 billion(b)¥482.5 billion

Fiscal 2024 Estimate(c) ¥500.0 billion
(b-a)

(c-a)

Rate ofprogression

66%

Operating income

Fiscal 2022 Actual

42.7% (single year)+4.0%+15.7%+3.4%+11.8%

Fiscal 2021 Actual(a)Exceeding 10%+¥9.0 billion/+¥12.3 billion

(a)

31

P osted profit growth and hit operating income and strategic
domain ratio targets—two key performance indicators—byleveraging structural transformation and improving productivity.
Hit ratio of 51% (exceeded target of 50%) in fiscal 2021.
Quantitatively, Service IT Business maintained upfront
investment emphasis. Net sales grew but profitability was
an issue despite. BPO, Financial IT Business and Industrial IT
Business raised added value and productivity and were rewarded
with higher profitability.
Made progress on strategic domain restructuring and achieved
profit growth, but advance on monetizing Service IT Businessand achieving qualitative structural transformation through newpillars of business only reached midway point.

(b)

Fiscal 2024 Estimate(c) 60%+3.0 pt/+9.0 pt
(c-a)

(b-a)

11.3%

Rate ofprogression

79%

(c-a)

Sales of societal issue solution service

54%

Fiscal 2021 Actual(a)Rate ofprogression

33%

(b)

+1.1 pt/+1.4 pt

73%

Fiscal 2022 Actual

51%

Fiscal 2022 Actual

10.2%

Fiscal 2024 Estimate(c) 11.6%

Rate ofprogression

Strategic Domain Ratio
Fiscal 2021 Actual(a)Fiscal 2022 Actual¥38.0 billion(b)

Fiscal 2024 Estimate(c) ¥50.0 billion+¥6.5 billion/+¥12.0 billion
(b-a)

(c-a)

¥44.5 billion
Rate ofprogression

54%*Rate of progression indicates progress toward fiscal 2024 estimates from perspective of fiscal 2021 actual results.

Fiscal 2022 TIS INTEC Group Management Direction

Looking back on fiscal 2022

Leverage initiatives to improve corporate value and value
provided to society through sustainability management

	Strengthened efforts to realize sustainability management, particularly in regard to the environment(TCFD support, SBTi certification), human rights due diligence, and reduction of strategic shareholdings	Efforts to enhance head office functions and improve efficiency, including wider embrace of DX, moving
along as planned

Reinforce efforts to make services more high-value-added
through productivity innovation and improvement in value
provided in DX services

	Raised value in DX services provided to core clients, with transformation of strategic domains on track(strategic domain ratio—target of 54%, now at 54%)	Gross profit margin hit 26.7%, reflecting tougher measures to boost productivity, including
enhancement reform, and ratio still rising	Controlling unprofitable projects remains an issue of concern

Firmly maintain financial health while emphasizing growthinvestment to enhance ability to provide DX value	Leverage co-creation activities with clients and business partners to revitalize operations and achieve
growth in social issue solution services
	Investment to reinforce in-house capabilities, including R&D, rolling out as planned

Leverage growth strategy seeking to become top-class IT groupin ASEAN regions and cement strong governance	Business activities of MFEC, which came under consolidation, moving in favorable direction	Acquired technology through capital and business alliances with multiple technology partners
	Realized joint creation with ASEAN partners, including joint order capture through MFEC and I AM
Consulting on large projects for government-linked companies

Constantly boost employee motivation and develop humanresources brimming with diversity to fuel DX shift	Using DX Strategy Human Resources Conference, held at beginning of fiscal year, as touchstone,
promoted job transfers and mid-career hiring to enrich pool of DX consultants	Improved employee engagement by leveraging groupwide personnel strategies

Corporate Information/Data

Key reflections

E xpansion in value-added creation style services, along withassignment solution style services geared to client requests,
fueled growth. Shift to market-cultivating style services requires
faster responses. Profitability steadily improving, and efforts tocontrol unprofitable projects showing results. But low-level
control still required.
Transition to operating holding company structure and steady
implementation of measures, including business realignment,
office consolidation and improved capital efficiency, to achieve
overall optimization of the Group. Made progress in cultivating
corporate culture with sense of solidarity through design ofsingle logo and creation of Group vision.
To achieve sustainable growth and improved corporate value,prioritized structural transformation and establishment ofresilient management platform through additional reforms within
the Group in anticipation of major changes in society.

(c-a)¥54.7 billion

Fiscal 2021 Actual

Platform for Value Creation

Major priorities in groupmanagement

Elevate head office functions and promote greater efficiency
	“G20” project to elevate head office functions
Integrate groupwide core systems
Cut head office costs by 10%(b)

Fiscal 2024 Estimate(c) ¥58.0 billion(b-a)

Operating Margin

Fiscal 2022 Actual¥45.7 billion(b-a)

Integrate/centralize shared functions with the GroupMake office procedures more efficient, enhance capital and asset
efficiency, raise Group profile, and cultivate corporate culture withsense of solidarity
Realize higher level of administrative management
Promote management with profit emphasis, work to enhanceaccounting, taxation, finance reporting, and implement Group
personnel strategies

Diversification of human resources, sharper skills

Operating Income
Fiscal 2022 Actual

EPS Growth CAGR

Net sales

Resource layer
Shift to human resources composition conducive
to structural transformation success

Key Performance Indicators+¥34.1 billion/+¥51.7 billion

Reference: Average annual growth rate over three years

Deepen andextend global
operations

Growth Strategy for Value Creation

Strive for total return ratio 40%

Expandinvestment togenerate
strengths

Improve value
provided by DX

Accelerate structural transformation
by improving value provided in DX services(a)Strive for total return ratio of 35%

Business layer
Turn SI capabilities into strength that underpins
transformation into global DX partner

ActualNet sales

Policy on return toshareholders

Virtuous cycle of value created jointly
by society and employees

TIS INTEC Group Value Creation

Fiscal 2018

Top Message

Theme

Fiscal 2016–Fiscal 2018

Introduction

Looking Back on Past Medium-Term Management Plans

32

Service-style Business Strategies

To give form to the Group’s mission “To fill the future with vibrant colors as a mover using digital technology,” TIS set a
goal to take a digital approach to enhance value exchange with stakeholders.

We seek to improve profitability across all service-style businesses, including payment services, through careful allocationof management resources to help solve the four social issues that have been highlighted for a groupwide response andthrough more sophisticated management practices.

Overall DX business strategy

Net Sales Growth in Societal Issue Solution Service (Billions of yen)

The TIS INTEC Group takes on DX across three areas: social DX, to achieve a better society; business DX, to reimagine clients’businesses; and internal DX, to elevate the capabilities of the Group itself.
These areas are not thought of in isolation but rather as a single series in which each category has a reciprocal effect on theothers, underpinning initiatives from a comprehensive perspective, and then, drawing on digital technology, driving a virtuous cycleof new value for society, clients’ businesses and activities within the Group itself. This is the image of DX that we, the TIS INTECGroup, seek to achieve.

Financial inclusion

Health concerns

Urban concentration, rural decline

Actual38.0

Low-carbon/decarbonized society

Estimate

50.0

Fiscal2022

Fiscal2023

Fiscal2024

Top Message

44.5

47.0

Use digital technology to successfully address social issues

Social DX

Financial inclusion

Heath concerns

Low-carbon/
decarbonized society

Introduction

Key Strategy of Medium-Term Management Plan/DX Business Strategies

Urban concentration/
rural decline

Fiscal2021

Fiscal2027

Improve value provided in DX services

Business process
reformIT infrastructurereformTechnology

Data
Analytics

UX

Promote co-creation with stakeholders
Enhance system development work

Internal DX

AgileBusiness

Sharpen DX consulting function

Enhance system operation work

Revamp marketing process

Proceeded as planned toward service completion in first half offiscal 2023
Turned ULTRA, which provides international brand payment services,
into consolidated subsidiary
New orders for wallet services

Payment

Business DX
IT Delivery
BPO

Societal Issue
Solution Service*

Enhance IT delivery(Fiscal 2021 – Fiscal2022)

Launched SustainaCare, a personalized healthcare program toachieve strategic healthcare investment
Began providing DX on RoboticBase to realize DX using robotics.

¥28.5 billion

TIS INTEC Group Value Creation

BusinessreformSales

Key Offering Services

Create new value by going beyond limitations of time and place, connecting people,
things and information, and reimagining business, processes and IT infrastructure¥33.5 billion¥38.0 billion¥44.5 billion* Services that directly provide solutions to financial inclusion, health concerns, low-carbon/decarbonized society, urban concentration, rural decline

Expand service-style business

Develop skills of employees who use digital technology
Promote data-driven decision-making in all aspects of work
Remove from in-house office work

Create more active organization through better communication

Social DX (Societal issue solution services)
Social DX is central to being a mover using digital technology. TIS–and by extension—the whole TIS INTEC Group prioritizes the foursocial issues described in the image below and develops new businesses to address these issues. Ideas from within the Group, as wellas M&A activity, co-creation with other companies and other approaches, generate a steady stream of diverse new services.

Social DX
TIS will lead efforts within the TIS INTEC Group to harness the power of IT and create various new services on its own to addresssocial issues, particularly the four areas—financial inclusion, health concerns, low-carbon/decarbonized society, and urban
concentration/rural decline—where the Group can have a pivotal impact, and thereby support realization of a more
comfortable society.

Urban concentration
and regional decline

Business DX

Fill the futurewith vibrant colors
as a mover

Create sustainable society

Using data collected within the Group as well as technology, such AI and robotics, we will make office work more efficient. This will
create a new environment in which employees are more motivated and can concentrate on promoting social DX and business DX.
Selected examples

Topic

Health concerns
Respond to health concerns in era
when more people are living to 100	[Health concerns] Healthcare Passport, a coordinated, medical care / health information service linking
patients and providers of medical and health care	[Financial inclusion] ultra pay Card, a no-credit-check, prepaid Visa credit card	[Financial inclusion, healthcare concerns] Walking app ASTARI	[Low-carbon/decarbonized society, rural decline] Capital alliance with Chinese self-driving EV startup.

Corporate Information/Data

Promotion structure

Platform for Value Creation

Low-carbon/
decarbonized societyInternal DX

33

Improve society through convenienceof payment services

Contribute to regional
revitalization

The goal is to utilize digital technology to support clients in their efforts to address social issues and respective management issues.
We will complement top-level capabilities in the domestic payment services domain with Group strengths in data analytics, AI androbotics, healthcare, and energy management, combining these capabilities as a partner to help clients grow their businesses andimprove corporate value. We will provide a full range of responses, from pinpointing issues and suggesting the right services toimplementation and operation of the associated systems.

The person holding the title of Representative Director and Executive Vice President at TIS is responsible for promoting the Group’s
DX business strategy. In addition, the Digital Transformation Promotion SBU, a business unit set up in April 2022 to focus solely on
DX, is taking a central role in DX promotion. Eight themes have been identified, and efforts are under way to promote DX
throughout the Group and across divisional lines under a project structure.
TIS is keen to increase value exchange with stakeholders. Toward this end, the Company is working on measures to design the
future of the Group through wide-ranging approaches, including enhanced marketing and sales, better system development andoperation, and fine-tuned deployment of human resources.

Financial inclusion

Growth Strategy for Value Creation

For details on TIS’ DX strategy, please go to the corporate website (Japanese only).
https://www.tis.co.jp/group/policy/dx

TIS held an information meeting in December 2021 highlighting sustainability management and provided details on solutionstyle services to address social issues. Please follow the link below to see presentation materials from that day.
https://www.tis.com/documents/en/ir/finance/meeting/211201.pdf

34

Key Strategy of Medium-Term Management Plan/Payment Business Strategies

Through years of support for major credit card companies, TIS INTEC Group has established its position as one of Japan’s
leading system integrators in the payments field. Currently, the payment business market is undergoing major changes inthe environment as the shift to cashless transactions progresses. The Group sees this situation as a new growth opportunity
and will accelerate business development through its PAYCIERGE digital payment platform in addition to the development
and operation of enterprise systems for major credit card companies, which are an important business platform.

Status of cashless payments in JapanThe Japanese government is promoting cashless payments, which are expected to become more widespread in the future
The credit card is a typical tool for making cashless payments, and the credit card transaction volume is expected to increase in
the future alongside an increase in mechanisms for linking cards to code-based credit services, such as QR codes and barcodes,that have become popular in recent years.
Cashless payments and cashless payment ratio

80.0%(¥trillions)100

Digital accounts facilitate access to processing services for all payment operations, from prepaid accounts for payment prior topurchase and instant withdrawal accounts for debit payments to post-payment credit accounts, and is an area where TIS candemonstrate particular competitive superiority.

Digital accounts

Brand prepaid
processing services

Public fees

Transportationcompanies

あ

Banks

Strategic
partnerCore competence
Payment services
Lending
Data analysis

Businesscoordination

Core area

Payment-related business scale for service-style operations

Front area
Prepaid coremarketPrepaid SaaS
¥2.5 billion
Debit SaaS
¥3.5 billion
Debit coremarketFront market
for issuers

Making ULTRA a consolidated subsidiary
In March 2022, the Company made ULTRA Inc., which issues ultra pay cards with Visa prepaid functionality, a consolidated
subsidiary. By welcoming this company, which provides international brand prepaid settlement services to our Group, we haveacquired front-end settlement functions and can now provide a full range of settlement services in combination with our strength inbuilding settlement back-end functions. The Group, aiming to realize financial inclusion, will further promote the resolution of social
issues through cashless transactions through the Embedded Finance initiative, which is becoming a global trend.

Topic

TIS held an information meeting in December 2019 highlighting payment services and provided details on areas of focus andstrategies. Please follow the link below to see presentation materials from that day.
https://www.tis.com/documents/en/ir/finance/meeting/191209.pdf(Billions of yen)

40

34.0

33.5
28.5

Merchants/QR/
Wallet¥5.5 billion

20

Front market
for merchants0

New domain creation/common ground ¥2.5 billion

35(3) Abundant repayment methods
Monthly clear / installment payments /revolving payments are standard. It can be
specified per statement.

More than
20%

About
50%

About
30%
Fiscal 2021
(actual)SI salesFiscal 2022
(actual)Fiscal 2024
(estimates)

Recurring sales

EBITDA margin

Isao Otokita

PAYCIERGE is our unique payment solutions platform launched in 2013, leveraging the wealth of know-how and advanced technology
in the payment area that we have cultivated over many years. To date, we have developed a variety of services centered on cashless
payment services, always staying ahead of changes in the payment market abreast of technological advancements, and accurately
capturing the diversifying needs of our customers. We believe that the coronavirus pandemic will serve as an opportunity to accelerate
the trend toward cashless transactions both domestically and internationally. We also expect the diversification of payment methods
to further advance. Under these circumstances, as a major player in the payment market, we will continue to strive to enhance thevalue of PAYCIERGE and expand our business through the creation of advanced services. We believe that this will lead to the safe andsecure use of cashless payment by all people, and will serve as the foundation to support a comfortable society in the future.

Corporate Information/Data

Credit SaaS
¥20.0 billion(2) Payment timing can be selected
Monthly direct debits and real-time
repayment are available.

Platform for Value Creation

Market Share (Fiscal 2024)n%After pay

Examination and loan

Payment service strategy
under Medium-Term Management Plan (2021–2023)
Finance
RetailHealthcare Administration/
With the cashless market in growth Urban
mode,OS
we will target businesses keen to participate in new payment options. High-level
Targetmarket providing us with the perfect opportunity to demonstrate competitive superiority, especially
specialization will bein demand,in services to our core customer base. We are aiming for net sales of ¥34 billion in fiscal 2024, supported primarily by this core
on of BusinesscustomerGrowth
segment.

Credit core market

Cashless payment ratio

Code reading
type

Growth Strategy for Value Creation(1) A variety of payment methods
International brand merchant payment (Visa,
MasterCard, JCB) is available as standard.
Individual IF support enables connection toeach company's own payment methods.

Maas, etc.

Finance service platform

CreditSaaS

Debit card

Instant debit

Three features of API-based BNPL services

Non-banks

QR settlement gateway
for merchants

Credit card

FutureNon-contact
type

Introduction of API-based BNPL service
We have launched an API-based BNPL service as a new pay-later settlement service for the credit core market. BNPL (buy now,
pay-later), for which market needs are rapidly expanding these days, enables low-cost, highly scalable, and speedy entry into thefinancial business. We support our clients' entry into financial services by providing the necessary core functions on an API basis.

Distributors

Finance

Services for merchants

Merchant processing

2025

Prepaid

Introduction to credit card processing service (CreditSaaS)
CreditSaaS, which is expected to be a growth driver in the credit core market, is progressing as planned toward service completion.
After acquiring first users, we continue to promote sales activities to expand the business.

Travelservices
Launch CreditSaaS and promote businessdevelopment, and grow into pillar of business2016

Contact type

TopicsFintechventures

Digital wallet services

Strategic Focus

2008

Payment method

Source: TIS Compiled based on Cashless Vision (Ministry of Economy, Trade and Industry, April 2018)

RetailMobile wallet

Overseas local
networks

11.9%

Interface

TIS INTEC Group Value Creation

Payment settlement
networks

API-type brand prepaid
processing services

20.0%Electronic money

WidgetBrand debit
processing services

50

0

PAYCIERGE
Credit card processing
services

40.0%

Combination of cashless payment methods

Top Message

Overview of Payment Services and TIS’ Core Focus

Introduction

Leveraging our strengths to accelerate business development and realize a cashless society

TIS Executive Officer,
Deputy Division Director of
Digital Transformation
Business Unit

36

Key Strategy of Medium-Term Management Plan/Global Business Strategies

InitialInvestments

As part of its global strategy, TIS is currently seeking to build a top-class group of IT companies in the ASEAN region. To
this end, the Company will maximize alliances forged through strategic investments in channels—that is, local markets—and technology, while promoting business development that integrates the respective strengths of each company andexpanding business domains through new and reinforced connections across the ASEAN region.
ChannelX-TechCardInfoLink / EVONET

Service Provider (Listed, Singapore)

Cross-Border Payment Network (China)

ASEAN • China • USA

Anabatic
System Integrator (Listed, Indonesia)

PromptNow

System Integrator (Listed, Thailand)

AINO
FinTech (Indonesia)

I AM Consulting
SAP Consulting (Thailand)

TinhVanContour

System Integrator (Vietnam)

Trade Finance (Singapore)

Emerging Tech

Entropica

R3

Quantum Tech (Singapore)

Blockchain (USA)

ChannelI AM Consulting Co., Ltd.

Consolidated
subsidiaryThai-based consulting group producing total SAP-related IT solutions.

Channel2015

PT Anabatic Technologies Tbk

Equity method
affiliate

Indonesia-listed, top-tier local IT company.

Channel2016

PromptNow Co., Ltd.

Consolidated
subsidiaryThai-based leading FinTech company with multiple proprietary mobile services forfinancial institutions.

X-TechShanghai CardInfoLink Data Service Co., Ltd.

Equity method
affiliate

FinTech company developing presence in China and around the world, withparticular strength in payment gateway solutions and other services.

X-TechTinhVan Technologies JSC.

Capital & businessalliance

Leading IT service provider with considerable experience introducing solutions to
the Vietnamese government and financial institutions.

ChannelR3 HoldCo LLC

Capital & businessalliance

U.S. technology startup boasting global-caliber results and brand in blockchainrelated technology for corporate users.

Emerging
Tech

PT AINO Indonesia

Equity method
affiliate

FinTech provider of payment services for transportation infrastructure in Indonesia.

X-Tech

SQREEM Technologies Pte. Ltd.

Capital & businessalliance

A Singaporean startup—the world’s largest behavioral pattern data aggregator—
growing very fast in fields of digital marketing and data analytics using proprietary
AI technology based on massive data collection.

Emerging
Tech

Grab Holdings Inc.

Capital & businessalliance

Top-class super app provider in ASEAN region. Expands into one business after
another across wide range of sectors, including ride-hailing services, food delivery
and financial services. Boasts 203 million downloads on aggregate basis.

Channel

GrabLink Pte. Ltd.

Capital & businessalliance

Joint venture—IT platform provider for Grab’s payment services.

X-TechEntropica Labs Pte. Ltd.

Capital & businessalliance

A Singaporean startup—provider of quantum computing software.

Emerging
Tech

Sequent Software Inc.

Consolidated
subsidiary

One of very few tokenization vendors in the world, and recognized by multiple
international brands.

Emerging
Tech

J Ventures Co., Ltd.

Equity method
affiliate

A DX subsidiary of Thailand major retailer Jaymart.
Provide DX platform for retail ad and finance business.

X-TechSpeQtral Pte. Ltd.

Capital & businessalliance

A Singaporean startup—provider of quantum computing software.

Emerging
Tech

Hangzhou Qulian Technology Co., Ltd.

Capital & businessalliance

A blockchain company—originally developed to provide application, hardware,and data linkage services with other systems

Emerging
Tech

Contour Pte. Ltd.

Capital & businessalliance

Singaporean company, provider of a trade finance platform utilizing blockchain
technologies

X-TechPIXMOVING, INC.

Capital & businessalliance

An autonomous EV startup in China, United States, and Italy

Emerging
Tech

2017

2018

2019

Miaomi

Human Behavior AI (Singapore) Wireless Sensing AIoT (China)

SpeQtralHyperchain

TBWG

Sequent

PIX Moving

Quantum Tech (Singapore)

Blockchain (China)

Blockchain Consortium (Thailand)

Tokenization (USA)

Autonomous EV (China)*1. Total sales of subsidiaries and equity method affiliates (fiscal 2021, ended December 31, 2021) are converted at period-end rate.
*2. As of July 2022

2021

Topics: Development and provision of Indonesia’s first integrated transportation payment infrastructure
A transportation payment package based on the concept of “Open Loop, Multi Media” developed jointly with PT
Aino Indonesia, a fin-tech startup and equity method affiliate. It was adopted for JakLingko, Indonesia's first
integrated transport settlement platform.

JakLingko

The fare structure of the four public transportation systems that exist in Jakarta are integrated and consolidated ina single application, allowing users to search for routes, make reservations, purchase tickets, and use tickets fromthe point of departure to boarding public transportation, including transportation from public transportation dropoff to the destination. This is the first citywide MaaS in Southeast Asia.

Phase 1
September 2021

JakLingko, integrated
transport settlement platform
MaaS, which can use both public transportation
and ride-hailing services in a single application,
allowing users to search for routes, makereservations, purchase tickets, and use tickets
from the point of departure to destination

Phase 2June 2022
Added MaaS in
collaboration with Grab,a top-class super app
provider in Southeast Asia

Point ofRide hailingdeparture

Public transportation

Ride hailing Destination

Park & ride, loyalty programs, event ticket sales, and various mini applications are planned to be added to make time on the move more productive

37

Aiming for global consolidated sales of ¥100 billion in fiscal 2026,
to become the top-class IT group in the ASEAN region

Topic

TIS held an information meeting in December 2020 highlighting global operations and provided details on areas of focus
and strategies. Please follow the link below to see presentation materials from that day.
https://www.tis.com/documents/en/ir/finance/meeting/201204.pdf

Kensaku Furusho
TIS Executive Officer,
Division Manager of
Global Division

Over the past eight years since 2014, the Group’s has accelerated investment in its global operations and expanded its network to
include to 17 overseas partners. To enter the local market in each country, we have formed partnerships with leading local system
integrators and have worked with them to solve local social issues by introducing cutting-edge services and technologies to the market.
As a result, the scale of our business is approximately ¥78 billion, and we are making steady progress toward our target of ¥100
billion in consolidated sales in the ASEAN region by fiscal 2026.
At the same time, we are strengthening our governance structure in line with the expansion of our business scale. Specifically, we
dispatch directors and second personnel to investee companies and hold regular steering committees among top management. We arealso working to strengthen governance by establishing seamless communication between the headquarters and local offices, including
the establishment of a Global Financial Planning Office at the head office.
While we have been focusing on the ASEAN market, aiming to become the top-class IT group in the ASEAN region, we are also
developing new markets and expanding new functions to build a structure capable of providing services on a global scale.

Corporate Information/Data

Mobile app that
integrates all of Jakarta’s
public transport systems
released

JakLingKo
Jakarta, the capital of Indonesia, wasexperiencing serious traffic congestion
and the resulting air pollution was aserious social problem.
Four separate public transportation
operators were under contract, withindependent service and farestructures, making commuting to andfrom work inconvenient.
JakLingko is making public
transportation more convenient,promoting a modal shift, and helping
the Indonesian government achieve
its goal of 60% communal
transportation by 2029.

2022

Platform for Value Creation

AcasiaGrowth Strategy for Value Creation

Thai-listed, leading provider of enterprise IT solutions.

2020

SQREEM

Area

Consolidated
subsidiary

J Ventures
DX (Thailand)

Corporate Profile

TIS INTEC Group Value Creation

Network: 10 countries,
109 companies*2

Relationwith TIS

MFEC Public Company Limited

2014

FinTech (Thailand)Business scale: ¥78 billion*1

MFEC

Partners (place in order of the investments)

Top Message

Grab HD

Head
officeIntroduction

Recent main M&A and capital and business alliances

Leverage business domain expansion and strategic investments
to become top-class IT group in ASEAN region

38

Human Resources Strategy

We aim to elevate head office functions and promote greater efficiency by centralizing back-office operations, raising the performanceof head office operations and promoting the shift toward DX in office work throughout the Group. In addition, we seek to contribute toa sustainable society and realize higher corporate value, and toward this end, we will enhance sustainability management with a morein-depth approach to ESG issues.

To improve the value provided by DX and realize structural transformation, TIS prepared a human resources strategy and has been
reinforcing investment in human resources, based on this strategy. We seek growth through circular value exchange between employees
and company, a process of promoting development through investment in human resources, which underpins higher added value in eachindividual and then leads to improved earnings that are used as the source of capital to begin the process again.

Ideal Human Resources Strategy

Internal DX
To give social DX and business DX activities added momentum, we are working to establish an environment that combines
knowledge and human resources across domains within the TIS INTEC Group and fuels greater creativity in operations.

Compensation

DX Promotion Themes

Activities and Results in Priority Areas
Sharpen/enhance skills of human resources

Investment toboost motivation(including
office investment)

Investin human
resources

Investment
in education

Personnel DX

Revamp marketing
process

Expand service-stylebusiness

Virtuous cycle ofvalue exchange between
employees and company

Raiseadded value

Develop skills of employees who use digitial technology

Data-driven decision-making in all asoects if office work

TIS Digital Transformation
Promotion SBU(Specialized unit)

Operating income per employee

Motivation score (TIS-only)(Continuous improvement)(Continuous improvement:
Hit 61%)Create more active organization
through better communication

Remove from in-house office work

Strengthen Group synergies
Promote laterally through Group¥2.5 million
Fiscal2018

Implement measures across Group

Fiscal
2019

Fiscal2020

Diversity & Inclusion

Personnel
growthFiscal2021

Fiscal2022

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Obtained White 500 status for four consecutive years forhealth management
Continuous awareness activities, including Diversity &Inclusion training
Sustainable engagement

61%

Motivation score rose from 56% last year to 61%

Fiscal2022

Priority Themes in Fiscal 2023
Reinforce human resources investment to boost added value
Raise human resources business partner capabilities
Promote diverse individual activities using personnel DX

Bolster leading human resources investment to further improve added value(Increase of ¥1.2 billion in fiscal 2023 over fiscal 2022*)*Increase of ¥1 billion for enhanced employee benefits, ¥200 million in investment in education

Growth Strategy for Value Creation

Group companies

	TIS INTEC Group’s Human Resources Strategy Model
To encourage wider use of shared services and support the shift toward DX in back-office operations groupwide, TIS split off its
Group shared services business, which was then merged into TIS Business Service Inc., a wholly owned subsidiary, in April 2022.

Management Strategy
Business Portfolio
Linking management strategy and human resources strategy

Promoting higher level of ESG

Human Resources Strategy

Environment

SocialSustainable improvement in stakeholder engagement
Activities in Fiscal 2022
Implemented human rights due diligence in line with Group humanrights policy(Plan to disclose results of risk evaluation in first half of 2022)
Promote diversity, elevate engagement inside and outside the company

Priority Theme in Fiscal 2023
Explored further reduction of GHG emissions and obtaining
various certifications
Began looking into water and waste management

Priority Theme in Fiscal 2023
Strengthen and enhance management practices to address latent
human rights risk
Update human resources strategy and investment level matched tohuman capital management

Human Resources Portfolio

Talent acquisition strategy• New-graduate recruitment• Mid-career hires• Securing diverse human resources• Alumni utilization

Personnel development strategy

Personnel placement strategy• Career building• Companywide training menu
• Business- and skill-specifictraining menu

• Growth support throughdiversified experiences• Agile deployment• Open recruitment

Highlight manifesto
and vigorously pushmeasures forward

Platform for Value Creation

Contribute to decarbonized society and recycling society
Activities in Fiscal 2022
Obtained SBTi certification (June 2021), captured CDP-B score
Committed to TCFD, disclosed information based on recommendation(January 2022)
Encouraged use of renewable energy

Engagement strategy• Promote evaluation system based on management philosophy• Establish and instill awareness of human resources system• Encourage management reforms

TIS INTEC Group Value Creation

Director responsible
for promoting
digital technology

Promoted talent management throughout GroupUse data to help shape careers, ensure best assignment

Strengthen HRBP system

Representative director,
executive vice president

Enhance system
operation work

Top Message

Expanded DX consultant pool to 300 as planned
Developed, strengthened skills of IT architects, project managers
and others

Reinforce frontline
Enhance systemdevelopment work

Introduction

Key Strategy of Medium-Term Management Plan/
Strategy to Enhance of Management Capabilities• Promote diversity management• Create environment for well-being(health management, flexible workstyles)

DX platform to support strategy

Constantly pursue level of corporate governancethat elicits greater trust from society
Activities in Fiscal 2022
Responded to revised Corporate Governance Code and prepared disclosure
document (Revised December 2021)
Drafted Group Taxation Policy (Disclosed April 2022)
Streamlined strategic shareholdings(Total disposal: 8 issues; partial disposal: 1 issue; reduced ¥7.5 billion)

Priority Theme in Fiscal 2023
Lift management and governance practices to higher level39• Visualize human resources, support decision-making process

Brand activities launched in the second half of fiscal 2020 emphasized approaches to boost brand recognition through television commercials and othermedia formats. Our efforts have generated positive results. Going forward, we will strive to become a company—and by extension, a corporategroup—that all stakeholders look to first, and we will implement strategies to boost our brand profile.
Knowledge of TV
commercial(Among business people)
TIS survey on February 2022

79%

Group recognition

IT industry new graduate job seekers(Among business people)
TIS survey on February 2022

Company ranking by
popularity(Up 44 percentage points
after television commercial)

12
Independent: No.1

63%

Overall: No.

40

Corporate Information/Data

Governance• Collect and analyze talent information·Executive Vice President’s Message 1 (Business Strategy)

Josaku Yanai

Josaku Yanai, TIS Representative Director and Executive Vice President, speaks to changes in the business environment
for the TIS INTEC Group and the evolving needs of clients as well as growth strategies for businesses hinging on
improved value in DX services provided.
Looking back on fiscal 2022

Achieved favorable results on market need for responses
from higher upstream phase

Let me use the payment services business—a forte field for the
TIS INTEC Group—as an example of improving the value of DX
services provided, a pillar of the current medium-term
management plan.
An issue affecting realization of a digital economy inJapan is the low ratio of cashless payments as compared withuse of digital payment systems worldwide. The ratio in Japan
topped 30% for the first time in 2021 and has been on asteady increase. However, the Ministry of Economy, Trade andIndustry has set a target of 40% by 2025 with further
expansion to 80%—the world’s top level—in the future. The
ministry calls the digital payment market a supergrowthmarket. Meanwhile, TIS has built a tremendous track record ofresults and enviable strength in the payment services business.
In development of mission critical systems for credit cards, theCompany boasts a domestic market share of about 50%
based on credit card transaction volume, and in provision ofservices and development related to branded debit card
processing, the Company has captured a domestic market
share of about 80% based on financial institutions handlingsuch cards. As a company involved in businesses that support
realization of a digital economy, it is incumbent upon us toapply our achievements and underlying strength to help
promote cashless payments. We believe this domain is one
where we can make a considerable contribution, precisely

42

Corporate Information/Data

41* For details on revision of the Group business portfolio (Group companies
and businesses belonging to each reporting segment), go to page 53.

DX value provided in payment services business

Platform for Value Creation

Business activity was extremely favorable in fiscal 2022, ended
March 31, 2022, substantiated by record-high performance on
a consolidated basis. I would say this achievement is primarily
due to tremendous IT investment enthusiasm among clients,
especially for DX, and the ability of employees to respond
appropriately to this heightened interest. In addition, as weleveraged an enhanced frontline—a concept central to thecurrent medium-term management plan—we were also
successful in actively identifying client needs through what-if
proposals and in polishing our consulting capabilities forbespoke solutions to client needs. Looking back, fiscal 2022
was a year that saw increased demand for IT investment inboth back-end and front-end systems. Clients demonstrated
an exceedingly high level of interest in DX and were very keen
to apply and utilize data as a key management resource,which essentially meant building a data coordination platform.
There was also a large number of migration projects to revamp
mainframe systems created with old programming languages,

such as COBOL, as clients prepared to ride out a situation that
the Ministry of Economy, Trade and Industry has termed the“2025 Digital Cliff.” In addition, we capitalized on booming IT
investment activity, including Enterprise Resource Planning(ERP), a shift to cloud-based services, mobility projects—such
as MaaS (Mobility as a Service)—reflecting a change tosmartphones as the point of contact with customers, andprojects involving a global activities or a widespreadenvironment-oriented response. Such a robust appetite for IT
investment among our clients has resulted in an increase in
the size of development projects for the TIS INTEC Group.
Client needs have evolved such that there is now moredemand for upstream interventions. When IT investment was
aimed primarily at making operations more efficient, clientsdecided on system requirements. Now, in the DX age, we areseeing more requests for advice from the design stage tocreate systems specific to the issues clients face and take themwhere they want to go. The right consulting skills areimperative to facilitate such advice. Meanwhile, as clientsembrace the shift toward DX, they are not outsourcing to IT
vendors as much but rather tackling website updates andother simple digital tasks using in-house IT talent, which is

As part of its efforts to achieve a Group formation that
demonstrates comprehensive capabilities while recognizing
the corporate identity and special features of each company
under the TIS INTEC Group umbrella, TIS introduced a new
management structure and, in conjunction, restructured its
reporting segments, effective from fiscal 2023. There are now
five principal segments: Offering Services Business, which will
be a driver of service-style business and global operations;
Business Process Management, which will make businessprocesses more efficient and realize business reforms; Financial
IT Business and Industrial IT Business, which will handle system
configuration and system operation as a business partner forclients that are top in their respective industries; and Regional
IT Solutions, which will leverage development of regional
solutions for a diverse and region-specific client base.
As of March 31, 2022, TIS had 53 consolidated
subsidiaries, configured to achieve a balance between diversity
and unity as well as a balance between centrifugal (new idea
generating) and centripetal (integrating) forces. A decrease in
the number of companies through mergers would be acentripetal force, promoting integration but diminishingdiversity and innovation. But the pursuit of diversity for its own
sake, a centrifugal force in pursuit of innovation, would havethe effect of fragmenting the Group and eroding its overall
effectiveness. The new formation will involve segment owners,
under whom we will realize cohesive management that breaks
down the barriers between companies and utilize thestrengths of each Group company to underpin growth.

Growth Strategy for Value Creation

We will utilize leading-edge digital technologies to promote corporate andsocial change as a strategic partner of our clients.

As I have already mentioned, in recent years, clients ask that
we be more than just a creator of systems. They need us to bea strategic partner. The Ministry of Economy, Trade andIndustry’s DX Report 2.1, issued August 2021, suggests that if
companies pivot from a run-the-business approach thatmaintains and manages current businesses to a value-up
approach that targets higher corporate value and then pursues
responses aligned to changes in the business environment, thebarriers between users and IT vendors will fall. I think so, too,and the role of the TIS INTEC Group must therefore evolvefrom contracted software development to emphasize active,
what-if proposals and delivery of DX services.
In recent years, even core clients seem keen to keep
software development in-house, and that raises the question,“Will demand for our services dry up?” No. Our proactive
perspective is an attractive quality that client companies seek
as they look to us as a partner in their in-house efforts. By
continuing to adapt ourselves and offer added value, we will
actually create more chances to provide services. For example,in March 2021, TIS established tance CO., LTD., a joint venturewith Japan Card Network (CARDNET), which operates acashless payments network in Japan. tance provides service
platforms and DX promotion support to store operators withmajor credit card companies in mind. The fact that CARDNET,
a long-standing client, chose to establish a joint venture with
us is a testament to our reputation as a strategic partner withwhom it is possible to build new business models.

TIS INTEC Group Value Creation

Seek optimal Group formation, change management
structure

Strengthen function as strategic partner to clients

Top Message

Representative Director,
Executive Vice President

Initiatives under Medium-Term Management
Plan (2021–2023)

Introduction

then complemented by advice from external experts, like TIS.
Consequently, our relationship with clients is changing, andwe are more often required to fulfill the role of strategic
partner rather than IT vendor.
As for changes on the technology front, AI embedding and
Big Data are becoming more pervasive, and we have noticed an
uptick in projects related to XR (Extended Reality), which blends
digital environments extending across the realm of immersive
technologies, including VR (Virtual Reality) and AR (Augmented
Reality), with real-world environments. At the same time, UI(User Interface) and UX (User Experience) design concepts
emphasizing end-user perspectives are key. Demand is also
rising for agile development, which flexibly incorporates clientneeds into the process; scrum development, which disperses
roles within a team to move development along; and low-code
development, which facilitates client-side in-housedevelopment, including website maintenance, and ismanageable even for non-professional developers.
Developed countries around the world, including Japan,
are facing the major social issue of a shrinking workforce, themost effective solution to which is the use of IT. Against a
backdrop of dizzying change, accentuated by the crisis in
Ukraine and heady inflation, clients are also likely to maintaintheir emphasis on IT to deal with changes in their own
industries at least for a few more years.

Platform for Value Creation

Steps taken to realize digital transformation
Phase 1:
Draft DX strategy

Phase 2:
Planning and design

DX strategy

Program goals

Environment/
asset analysis

New market/businesscreation

Visualize
DX metrics
Define purpose/
value
Program design

Platforms

Digital service
transformation
Customer experiencetransformation
More efficientadministration
Revamp platform

Phase 3:
Deployment
Targets

Value chain function
Companies:
Finance, manufacturing,retail, public sector,
communications, services
Financial inclusion

Enablers
Sector-sharedmodel

Business co-creation

Sector-sharedmodel

Data analytics

Sector-shared
model

Urban concentration/
rural decline

Low-carbon/decarbonizedsociety

Health concerns

UX design
Agile development
・AI ・AR/VR ・IoT
・Cloud ・Blockchain
・Security ・Robotics
・5G/6G

Corporate Information/Data

On the business front, a medium- to long-term objective is toreinforce our presence in consulting, while on the technology
front, we will delve deeper into trade finance and digitalcurrency through application of blockchain technology as wellas wider use of XR and Metaverse embedding. Of note,
Singapore-based Entropica Labs Pte. Ltd., with which TIS
formed a capital and business alliance in May 2020, is involvedin quantum computing software development. Quantum
computing is a revolutionary digital technology that executes
algorithms beyond the reach of existing computers andfacilitates high-speed processing. TIS will collaborate on

The TIS INTEC Group seeks to be a partner, guiding clients through digital transformation,from drafting a strategy to implementing it.

Industrywide
modelsApproach to using leading-edge technology at home andabroad over the medium to long term

Steps Taken by TIS INTEC Group to Realize Digital Transformation

Growth Strategy for Value Creation

I oversee all aspects of business, and a key challenge for me is
to turn business structures into virtuous cycles that
demonstrate the composite capabilities of the TIS INTECGroup. For example, account-based units—divisions or
departments—that have built up solid results on made-toorder system configuration are well-acquainted with client-side
management issues and associated solutions through many
years of business interaction. Service-based units apply thisaccumulated knowledge as intellectual property and redirectthese assets toward industry-standard, service-style businesses,
such as CreditSaaS and EneLink. The resulting services thenfoster contact points with new clients and, never missing achance to capture such contact points, account-based units
draw on strengths to provide multifaceted solutions tomanagement issues that new clients are grappling with. This isa virtuous cycle. Various initiatives are already in the works. For
example, in account-style units, account managers are awarethat they have a responsibility to take a bird’s-eye view of theGroup and to look beyond the client-specific structure—bethat a department or a section—for which they are responsible
and bring in other service-style units or Group company
members to formulate broader-ranging account plans from aGroup perspective.

For TIS and other members of the TIS INTEC Group to appeal
to clients, whether existing or potential, we must evolve. As
the director responsible for DX, it is my duty to promote theGroup’s DX strategy, including DX in-house. Our DX emphasis
is not only on software development operations but also on
ordinary operations which will lead to efficient quality
improvement through a switch to robotics and AI, highlighted
by the introduction of robotic process automation into head
office functions. We will continue to foster an environment inwhich people can be innovative and focus on work thatgenerates added value.
In addition, we have looked beyond mechanical efficiency
and, over the past few years, we have directed resources into
the establishment of engineering platforms utilizing theknowledge of engineers. For example, we have implemented
various approaches to boost productivity, including the use of
Nablarch, an application and execution platform developed by
the Technology & Innovation SBU; canal, a support site for TIS

Social issues

43

My role is to create a virtuous cycle rotating throughbusiness units

Companies

With the digital shift expected to spread more extensively
throughout society, the role that IT services will play inaddressing social issues is becoming all the more important.
Acknowledging this, TIS identified four social issues—financial
inclusion, health concerns, urban concentration/rural decline
and low-carbon/decarbonized society—that the TIS INTECGroup can help solve through its business activities. Finding
solutions to these issues will be a long-term effort utilizing thepower of IT and will ultimately lead to the realization of amore equitable society. We are pursuing various activities,
including efforts to promote cashless options through our
payment services business, HealthTech initiatives, such as our
Healthcare Passport that enables both treatment providers andpatients to manage medical care and health information, andparticipation in proof-of-concept projects, including in smart
cities initiatives and Mobility as a Service (MaaS). But I would
like to highlight a project in the low-carbon/decarbonizedsociety category that began at the end of 2021 and bodes
very well for the future.
For Japan to achieve carbon-neutral status, it is imperative
for government to reach out to energy-related companies,
especially those in the electric power, gas and oil sectors.
Drawing on insights acquired through long-standing support
for clients in the energy sector, primarily electric power

Future issues and initiatives

Demonstrating strength during a time of transition forsociety, underpinned by diverse human resources

INTEC Group engineers; and Fintan, a collection ofdevelopment know-how. Such initiatives enable employees toperform at higher levels than before, which fuels productivity
per person and fosters continuous improvement in profitability.
A survey by the Ministry of Economy, Trade and Industry
indicates that Japan could have a shortage of 600,000 IT
professionals by 2030. Other issues that might impact thebusiness activities of the TIS INTEC Group are possible
disruptions to co-creation opportunities with clients andbusiness partners, and potential obstacles to securing anddrawing upon a diverse workforce free of gender andnationality bias. To date, TIS has responded proactively by
establishing new job categories, notably, data scientist anduser interface/user experience (UI/UX) designer, as thecenterpiece of an alliance with consolidated subsidiary
Miotsukushi Analytics, Co., Ltd., which is engaged in the data
analysis and AI consulting business. We have also widened
access to employment and created more opportunities for adiverse workforce to thrive through enhanced humanresources development, exemplified by MFEC Venture LAB, a
startup specialist seeking to cultivate entrepreneurial talent.
Going forward, we will focus on enhancing job satisfaction
and will also use television commercials and other forms of
messaging to convey to as many people as possible thesignificance—and even the fun factor—inherent in a career at
a company under the TIS INTEC Group umbrella.
The TIS INTEC Group has many strengths: independent
management free from keiretsu ties, a client base of top-classcompanies in their respective industries, and a diverse
technostructure built through M&A. Global operations present
another strength. But our most significant strength is ourpeople. At a time when social values are in transition, theGroup will adhere to OUR PHILOSOPHY, and I will push forrealization of sustainable growth of the Group while sharing
with employees the challenges and enjoyment of steering thecorporate ship with personal resolve for the good of society.

TIS INTEC Group Value Creation

Social issue solution services showcasing digitaltechnology*VPP (Virtual Power Plant): A cloud-based distributed power plant thatbundles energy-production sources scattered throughout a region, such as
corporate or local government–run production facilities, residential-use
power generation equipment and electric vehicles. Digital technology is
indispensable to such networks, driven by demand and output forecasts
based on AI and device controllers using the Internet of Things.

cutting-edge technology with developers of Entropica Labs
while pursuing solutions applicable in various fields.
As always, we will take a robust approach to global
operations, particularly in the ASEAN region. In recent years,
we have accelerated activities, including capital and businessalliances with local companies boasting advanced
technologies, but overseas Group companies have themselves
been involved in joint activities, expanding business
opportunities in new directions. Global operations are anotable feature of the TIS INTEC Group that will be developed
further. Going forward, we will grow businesses in the ASEAN
region, starting with key subsidiaries such as the MFEC Groupin Thailand, and promote business development that will
underpin our standing as a top-class IT consortium in the
ASEAN market.

Top Message* For details on the payment services business, go to page 35.

companies, TIS launched Carbony as a solution brand torealize a decarbonized society. The first solution, Carbony VPP
Platform, was made available in April 2022. And there is more
to come. We are implementing a diverse array ofdecarbonizing solutions that includes establishment ofenvironmental value trading transfer and management
systems, such as one that awards points to electric vehicle (EV)owners who charge their EVs at home with power generated
by a renewable energy system and then discharge the stored
energy from their EV to a designated commercial facility.
Another example is an energy-saving service for state powercompanies overseas.

Introduction

because of the portfolio and capabilities we have built, and we
aim to play an active role.
Specifically, we are providing multifaceted digital accountservices, making preparations to build digital value platforms
for major credit card companies, mobile payment systems formegabanks as well as the laying the groundwork for digital
payrolls (digital wage payments), which requires the Ministryof Health, Labour and Welfare to make headway on revisions
to current legislation. We are responding to the evolution of
cashless day-to-day transactions, including automated expense
calculations using scanned receipts.
Meanwhile, the most important factor in providing
comprehensive cashless services is safety and security, and we
ensure the use of fault-tolerant platforms that operate yearround without downtime and also support efforts to detectfraudulent transactions, including money-laundering activity.
In March 2022, TIS turned ULTRA, an international-brandprepaid payment servicer, into a consolidated subsidiary andthus gained a front-end function for payment services.
Complementing TIS’ strength in back-end architecture forpayment systems, ULTRA’s capabilities make it possible toprovide payment services across the full spectrum. Currently,
nearly all payment-related services are covered by Group
companies, which facilitate the necessary responses to clientneeds. But through ULTRA, the Group gains the ability toprovide overall financial functions, enabling various nonfinancial institutions, such as companies in the power,
telecommunications and distribution sectors, to embedfinance functions, particularly a payment function, in theirown digital services. This will enhance the Group’s ability tohelp a much broader range of clients to implement DX.

Provide microservices comprising businesses and various SaaS platforms and cloud platforms to support
new workstyles.

Support parallelingstructuraltransformation

DX promotion
structure/KPI design

Rules & culture
transformation

Management/development
process transformation

Promote open
innovation strategy

Training

DX basics

DX staff training
Prepare programs

Leading-edge IT
professionals’ training

e-learning service

44

Special Feature Roundtable Discussion:
TIS INTEC Group’s Human Resources Strategy x Business

Under Medium-Term Management Plan (2021–2023), the TIS INTEC Group seeks to accelerate structural transformation
through an improvement in the value of DX services provided. Realization of this goal hinges on human capital, theGroup’s most valuable management resource. Efforts to enhance human capital are discussed in this roundtable.

Diversity and sense of unity are TIS INTEC Group
strengths* For details on the TIS INTEC Group’s human resources strategy, go to page 40.

Oka: Right now, the Group is working through Medium-Term
Management Plan (2021–2023), which highlights the themeof improvement in the value of DX services provided. Suchvalue is generated through co-creation with clients. Our role is
to guide clients in their DX efforts as a digital mover—the
mission centerpiece of OUR PHILOSOPHY. Enhanced humancapital is essential for us to lead the transformation and earn

Takayanagi: TIS has always viewed human resources as its
most valuable management resource, and this perspective
permeates the Group as well. We have established anenvironment and systems that enable each and every
employee to embrace challenges, and we vigorously invest in
human resources. Under OUR PHILOSOPHY, growth is defined
as better value exchange with stakeholders, but if this concept
is applied to the relationship between employees andcompany, then growth as a company would be reliant on astrong work ethic among employees and a high level of job
satisfaction, achieved through successful planning andimplementation of various measures by the Human Resources
SBU, including hiring, training and seminars, workstyle reformand compensation.
To co-create with clients as a digital mover brightly
coloring the future, as Ms. Oka referenced, we must strive to45

Oka: To put it another way, the biggest role that HR plays is increating an environment where all employees can work withpeace of mind, enjoy fair and equitable learning opportunities,
and experience new workstyles, because this motivates
employees and improves job satisfaction. If you think about
HR from a business angle, markets are different for eachbusiness unit and so are the human resources best suited to
the respective market and thus the recruiting division. In hiring
and training new employees, it is important to cultivate asense of unity. At the same time, HR operations being alignedwith the diversification of business activities is also important.

*Engaged in data analysis and AI consulting businesses, Miotsukushi Analytics
Co., Ltd., became a TIS consolidated subsidiary in August 2020.

46

Corporate Information/Data

the trust of clients, and so I’d say improvement in the value of
DX services provided and our human resources strategy are
intricately connected.

Platform for Value Creation

Speedy response to diverse needs of business divisions isessential for improvement in value of DX services
provided

Growth Strategy for Value Creation(From left)
At TIS, Executive Officer, Deputy Division Manager, Corporate Planning SBU, and Department Manager, Corporate Planning Dept. Reiko Oka
At TIS, Executive Officer, and Division Manager, Human Resources SBU Kyoko Takayanagi
At TIS, Director, and HRBP (Human Resources Business Partner), Business Innovation Promotion Dept., Business Innovation Unit. Sachiko Hara
At TIS, Department Manager, Data Analytics Business Promotion Dept., Business Innovation Unit; and at Miotsukushi Analytics, Co., Ltd., Director andDivision Manager, Consulting Division Shunsuke Masaki

Masaki: The Business Innovation Unit, where I work, wasquick to connect with an HRBP. As a unit driving the Group’s
DX business, our activities hinge on consulting operations
executed by some 200 people across four teams: DX
consulting; project management; AI integration and robot
platform creation; and data analysis.
DX has become a buzzword, but many clients are not surewhat to do. That is where the consulting team comes in—to
identify client needs and issues of concerns and then lay out astrategy that guides clients on how to approach the DX
process.
The Data Analytics Business Promotion Department,
which I manage, comprises professionals who analyze data,that is, clients’ management resources. I hold a concurrent
position as the manager responsible for Miotsukushi Analytics
operations. Data analysis is key to DX and, as a cohesive unit,
the TIS INTEC Group plays a composite role in supportingclients’ efforts to realize DX. Under Medium-Term
Management Plan (2021–2023), TIS aims to expand theGroup’s pool of DX consultants to more than 500. But
growing the DX business will require more than justconsultants. The Group urgently needs data analysts, UX
designers and a variety of other DX professionals—a categoryof human resources not previously well populated within theGroup—and so the emphasis is on hiring and training DX
talent. As a precursor to restructuring in the Human Resources
SBU, the Business Innovation Unit welcomed Ms. Hara as an
HRBP to quickly address HR needs within the unit.

Takayanagi: Business units, like the Business Innovation Unit,
in which an expert in HR has been given a dedicated place as
the division’s HRBP, are still few in number. But there are justover 10 people in business units at TIS where someone fulfills
the HRBP role along with divisional responsibilities, and the
Human Resources SBU’s HRBP Office has just under 10 staff,
so about 20 people in total are involved in HRBP duties.
The function of an HRBP is to promote HR measures
matched to business diversity and aligned to the needs of thebusiness unit. Take hiring for example. At TIS, hiring new
graduates is handled exclusively by the Human Resources SBU,
while career recruitment is undertaken mostly by business
units. One of an HRBP’s primary missions is to support andpromote the formulation of career recruitment strategies. In
the Business Innovation Unit, the designated HRBP has
extensive experience in HR management, which translates into
great support for career recruitment. In recent years, the unit
has thus been able to attract mid-career hires with remarkably
strong qualifications.

TIS INTEC Group Value Creation

Hara: Even before joining TIS in 2021, I worked as an HRBP
while fulfilling my role as a director in a human resources
division. The duties assigned to an HRBP vary by company, but
at TIS, at least in the case of the Business Innovation Unit towhich I belong, the role of an HRBP is more than handlinggeneral HR affairs. At TIS, an HRBP acts as a strategic HR
partner to the head of the unit to achieve the business planand provide high value to society through services provided,
supporting unit growth and implementation of strategies frompersonnel and organizational perspectives.
The job of an HRBP starts with the business strategy
drafted by a business unit. Likening the business unit to acompany, the HRBP works alongside business unit
management to determine the best way to reinforce structural
capabilities so that the business unit can achieve its targets.
The HRBP is tasked with planning and promoting HR
measures.
As an HR professional, I formulate HR strategy forbusiness units using my HR consulting capability, and I importcompanywide HR strategy—talent management and initiatives
to sharpen and elevate employee skills—into business units,gathering feedback from business units and conveying it to
the Human Resources SBU. In this way, I act as a bridge so that
we can formulate coordinated responses.

Top Message

elevate and sharpen the skills of our human resources. Eachbusiness unit drafts its own business strategy, and for business
units to realize their respective goals, the Human Resources
SBU had an important part to play, too, developing anorganizational structure that facilitates flexible and speedy
responses to diverse personnel issues and needs.
In 2021, the Human Resources SBU was split along threefunctional lines: human resources planning, human resources
services and human resources business partner (HRBP). HR
planning covers preparation of strategies to elevate andsharpen the skills of employees throughout the Group; HR
services plans and manages HR operations, such as
recruitment, retirement, transfers and employee welfare
programs; and an HRBP is a person who identifies HR issues ina business unit, presents solutions and thereby contributes toenhanced activities in that unit.
The HRBP Office, formally established in fiscal 2022, isbuilding a structure in fiscal 2023 that enables HRBPs
belonging to the Human Resources SBU and full-time HRBPs in
business execution units to cooperate with one another topromote HR strategies closely aligned with business activities.

Introduction

Define human resources strategy linked to management strategy

Takayanagi: The Human Resources SBU also has the back ofeach and every employee in their embrace of newchallenges. Toward that end, with the determination tochange the Group through HR, I will work with business
units to promote HR investment measures characterized byflexibility and a sense of speed.

Masaki: Improvement in the value of DX services provided is a
key theme in the current medium-term management plan, but

TIS Career Frame (Personnel Development Model)

Human Resources Structure/HRBP-Related Chart

TIS Career Frame (Personnel Development Model)

Human Resources Structure/HRBP-Related Chart

Category

Field (Specialization)

・・・

Business consultant
Consulting

Stage (Differences in role)

Industry consultant

TIS Human Resources SBU
Manager responsible for HR

Business function consultant
Businessinnovation

TISINTEC
INTEC
Group
TIS
Group

Producer
HR planning Support

UX designer

Solution designer

Data scientist
Project manager

Implementation

Cooperate

HR services

Corporate

PromotemeasuresCooperation /promotion
Provide HRservices

Segment owners /group company
management
TIS managers
Business-side HRBP
Employees

Job categories ofBusiness Innovation
Unit

Architect
Sharedservices

Application specialist
IT specialist

Sales

HRBP

Robotics
・・・・

Data science

Strategy partner

Acknowledge/decideAI

Solution design

Business side

Corporate Information/Data

Masaki: Unlike recruitment, though, initiatives to promote a
better workplace culture take time to produce results. But forme personally, opportunities, particularly the BIU Forum, have
granted me access to the honest opinions of young
employees, and I realize that executives need to listen tocomments from the floor more often. I think the forum willkickstart more opportunities for communication.

Hara: TIS has taken an extremely robust approach withmeasures to elevate capabilities groupwide, including in-house
recruitment and seconding employees to group companies like
Miotsukushi Analytics to reinforce the DX talent pool. Behind
this approach is the idea that enhanced collaboration within
the Group will not only grow TIS’ businesses but also boost
the value of DX services provided in a way unique to the TIS
INTEC Group. HRBPs support business growth from bothhuman resources and structural perspectives, walking hand inhand with their assigned business unit to address HR issues
while also looking beyond the business unit to align measures
along the Group’s primary trajectory.

Platform for Value Creation

Hara: In terms of realizing Group Vision 2026, efforts tostrengthen divisional capabilities through greater engagement
has taken on renewed importance as a way to boost
performance within each division amid diversifying
employment formats and evolving perceptions of value.
Individual sections in the Business Innovation Unit, such as
those focusing on consulting and data analysis, possess
advanced capabilities. But to elicit a higher level of team-likesolidarity and give the whole unit the ability to offer higher
value, we initiated the BIU Forum, a two-year project launchedin 2022 to strengthen HR engagement by promoting mutualawareness of all operations. The forum transcends divisional
barriers, regularly engaging 200 people across the unit inconversation about what’s happening. As an initiative, it also
promotes efforts to build action plans and promote unilateralunit-specific measures.
TIS provides various corporate and Human Resources
SBU–issued information, including topics related to OUR
PHILOSOPHY and the results of the employee awarenesssurvey. By analyzing and internalizing this information from apersonal perspective, everyone gradually understands thebenefit—the joy, if you will—in taking ownership of theprocess to create a structure that makes work exciting.

Takayanagi: While HRBPs implement various HR measuresfine-tuned to each business unit, as Ms. Hara does in theBusiness Innovation Unit, the Human Resources SBU sharesinformation on programs and initiatives with other business
units that can be implemented if applicable or necessary to theindividual business unit. The SBU also spearheads
companywide measures, such as system revisions based on
employee awareness surveys and feedback on existingmeasures.
In addition, at each company under the Group umbrella,
the human resources manager or human resources strategy
manager acts as the HRBP for that company. In this position,
the manager has access to information on HR issues at otherGroup companies and can apply the knowledge in-house toformulate and promote HR measures designed to achieve
respective business targets. But because business strategies
and business models vary from company to company within
the Group, measures ideal for TIS are not necessarily right for
all Group companies. Nevertheless, the trajectory offundamental HR strategies follows a common path, andefforts to raise the quality and speed of HR measures aligned
to business strategies are thus applied groupwide.
Another example of our work in the Human Resources
SBU at present is the revision of HR systems, including
performance evaluation and compensation systems, for
implementation in fiscal 2024.

HRDX /
Group HRsystemMarketingCorporate planning

Growth Strategy for Value Creation

47

Oka: Quite a bit of structural transformation is needed tosecure the strategic domains described in Group Vision 2026.
Strategies and issues that will push structural transformation
forward, on the theme of higher value in DX services provided,
are the focus of a monthly strategy discussion group. Here,not only HR strategy but all strategies are covered andopinions are shared. For example, it is certainly true that theBusiness Innovation Unit is a driver of DX, but divisions andGroup companies involved in system development—a wellestablished Group strength—have a significant pool of diverse
talent demonstrating extensive business knowledge as well as
system configuration experience and know-how. Employees
throughout the Group, including human resources in systemdevelopment operations, must understand the direction that
TIS is taking as a mover using digital technology. By the same
token, it is also extremely important for the management
team to deploy measures to encourage a virtuous cycle thatencompasses the whole Group.

TIS INTEC Group Value Creation

Hara: Hearing your comments reminds me that ultimately, an
HRBP is a partner in the truest sense—someone who is there
for the business unit and takes an end-to-end approach, fromrecruitment all the way through training and organizational
culture, so that the unit can provide value to society.
For example, in the Business Innovation Unit, I apply acareer development model TIS calls “Career Frame,” and I
formulate an HR plan, create an HR development system androll out concrete measures that underpin a stronger HR
structure. The unit has identified eight job categories under
the Career Frame that provide value to clients. People in thesejobs are referred to as Business Innovation Professionals. I build
a portfolio highlighting the number of people the unit requires
to execute operations, when they are needed, in which job
categories, and at what stage of a project. Based on theportfolio, I also design the HR development system and various
measures, including recruitment, so that the unit can
successfully carry out its business plan.

Link diverse division-specific characteristics, andmaximize value in DX services provided

the Group’s strength is in its overall ability to provide end-toend support, from consulting to system development. As astructure cutting across the Group, the Business Innovation
Unit has many opportunities to work with account-based units
serving clients in the finance and industry sectors and toaddress concerns regarding client-side DX. We bring strategic
consulting skills. They bring insight into client businesses. Addin access to the forte capabilities of Group companies, andnow TIS can provide the best possible solutions to clients’ DX
needs.
Speaking specifically to the activities undertaken by myteam in the Business Innovation Unit, we apply a systemcoordinated with Miotsukushi Analytics, a TIS subsidiaryspecializing in data analysis and AI. TIS provides consulting andsystem development know-how, while Miotsukushi Analytics
provides instruction on data analysis and AI. Personnel
exchanges, to utilize reciprocal strengths within the Group,also help to accelerate development of DX talent.

Top Message

Masaki: I think the reason that the Business Innovation Unit
spearheaded the HRBP movement was because this unit, moreso than any other, is going to be focused on human resources.
System development divisions have leverage—knowledge built
on experience and know-how accumulated through businessactivities tracking back to the earliest days of the Group—as
well as consulting teams specializing in cashless operations. In
comparison, the Business Innovation Unit’s consulting
structure does not address services on specific products.
Instead, consultants analyze issues and needs that transcendclient lines, substantiate results and consider approaches toachieve innovation. This requires not only a high level of
specialization but also generalist skills applicable to client-sidebusinesses. Consequently, it is not knowledge so much as thetalented people themselves that become leverage. We mustalso consider projects in domains different from the contractdevelopment activities that the TIS INTEC Group has been
involved in for many years. In-house personnel transfers andtraining are not enough. We must actively source goodcandidates from outside the Company as well.
However, right now, with the employment market
booming, a successful hiring program demands that we
present recruitment agencies with a clear message about our
strategies and the competencies we require. We also have tomaintain especially close ties to these agencies: it was
impossible to execute the career recruitment process alongwith regular operations on our own. With HRBPs like Ms. Haraat work, we have most certainly raised the speed and qualityof recruitment results.

The HR strategy specific to each business unit must alignwith the overall HR strategy set by the Human Resources SBU,
and I will work closely with HRBPs assigned to other business
units and with Human Resources SBU managers.

Introduction

Essentially, HR strategies have to reflect qualities of diversity
and unity that characterize the TIS INTEC Group.

Define role and skills by
field and stage48

Executive Vice President’s Message 2 (Financial Investment Strategy)
g Overview of Financial Investment Strategy

Financial Policy

Sustainable Improvement in Corporate Value

Sustainable Improvement in Corporate Value

Masahiko Adachi

Anticipated EPS Growth
(Yen)

EPS

ROE

10% CAGR

12.5–13%(Continuous growth)(Aiming for 15% in long term)

300

100
Promotegrowth investment

Strengthen
return to shareholders

Growth investment overthree years

Total return ratio

0

Fiscal2021

16

Fiscal 2024 12.5–13%

12
10
8

Will leverage structural transformation and become
corporation capable of stable ROE of 15%
Fiscal2021

Fiscal2022

FiscalFiscal2023
2024(estimates) (estimates)

Fiscal2027(estimates)

g Progress of Financial Investment Strategy

We will implement treasury stock buyback seeking capital optimization, based on changes in management
quality paralleling progress in structural transformation.
Profit growth and heightened ability to generate stable cash flow fueled by progress in investment-based structural transformation

Strategic Domain Ratio

35%

Structuraltransformation

Operating income

ProfitgrowthOperating cash flow

¥54.7
billionInvestment
Finance
Strategy
promotion
Fiscal2021

FiscalFiscal2024
2027(estimates) (estimates)

Investment Strategy

Fiscal2018

Fiscal
2019

Fiscal
2020

・TIS Chiyoda Systems Inc.
・Miotsukushi Analytics Co., Ltd.

Profit growth and heightened ability to generate cash flow, paralleling
growth in strategic domains
Promote capital optimization based on solid management platform
Execute treasury stock buyback worth about ¥24.5 billion tocomplement regular return to shareholders■ M&A, Capital contribution

Fiscal2018

Fiscal
2019

・Investment in techcompany, etc.

Fiscal
2020

Fiscal2021

Fiscal2022

Corporate Information/Data

Financial Strategy

Fiscal2022■ Investment to strengthen ・Grab ・MFEC Public Co., Ltd.

in-house capabilities

Progress in structural transformation through enhanced investment
・Maintained M&A activity to grow strategic domains
・Continued to reinforce software development and R&D capabilities
・Enhanced investment in human resources, including compensation andeducation

Fiscal
2021

Platform for Value Creation

Fiscal2018

51%

60% over 70%

Operating Income, Operating Cash Flow

Growth Strategy for Value Creation

49

Fiscal2027(estimates)

14

Maintain A rating
Have cash and deposits
equivalent to two months’ worth of monthly sales
rising 3 points to 54%. Consequently, net cash provided byoperating activities reached ¥56.1 billion, much higher than in
the past, and our ability to generate cash from our businesshas increased. In addition, we reduced cross-shareholdings by¥7.5 billion and posted ¥7.0 billion in proceeds from sales ofshares in subsidiaries following a review of our businessportfolio centered on strategic domains.
As a result, ROE rose 3.2 points year on year to 14.0%,
exceeding the medium-term management plan target. I
believe the Group’s policy of increasing the net income ratio todrive higher ROE was the main factor in achieving thisoutcome, although extraordinary profits resulting fromreduced cross-shareholdings and a review of our businessportfolio did have a positive impact.
The progress of the aforementioned measures has helped
transform the Group’s “quality of management,” and I feel weare in a strong position to make further progress in the future.
To further ensure our ability to achieve our long-term ROE
target of 15%, in fiscal 2023, ending March 31, 2023, weplan to conduct share buybacks totaling ¥30 billion. These
include around ¥5.5 billion in shareholder return as part of ourcommitment to achieving a total return ratio of 45% (target),and an additional ¥24.5 billion in line with efforts to optimize
our capital structure.
To meet the expectations of stakeholders, we willcontinue striving to achieve sustainable improvements incorporate value by making robust growth investments andpracticing capital cost-conscious management. In the process,we will aim to sustainably increase corporate value by
optimizing our capital structure and improving capitalefficiency, in addition to achieving profit growth.

FiscalFiscal2023
2024(estimates) (estimates)

TIS INTEC Group Value Creation*Treasury stock held by TIS will,in principle, be limited to 5% of
total number of shares issued,
with any excess canceled.

Fiscal2022

Anticipated ROE Improvement(%)

Enrich dividend
per share

Maintain financial health

Under the financial investment strategy of Medium-Term
Management Plan (2021–2023), we will strive to achievesustainable improvement in corporate value by balancing
robust growth investments to promote structuraltransformation with enhancing shareholder returns.
Specifically, we will make aggressive growth investmentsof around ¥100 billion to promote structural transformation(¥30 billion for internal reinforcement and ¥70 billion for
M&As and external investments) while strengthening
shareholder return with a target total return ratio increasingfrom 40% to 45%. In the process, we aim to achieve a
compound annual growth rate for earnings per share of 10%
and return on equity (ROE) of 12.5–13.0%. To realize bothproactive growth investments and enhanced shareholder
returns, it is essential to improve our cash-generation
capabilities while ensuring financial soundness. With this inmind, we will clearly define our targeted cash allocations andbalance sheet structure and promote each management
measure accordingly.
In fiscal 2022, we made growth investments andpromoted high-value-added businesses by concentrating
management resources in strategic domains. As a result, wemade steady progress in structural transformation andachieved improved profitability. Thanks to an increase in the
gross profit margin, we were able to absorb a ¥2.18 billion
increase in prior investment costs to promote structuraltransformation and a ¥2.82 billion increase in costs
attributable to office reforms to promote new workstyles. As aresult, operating income increased 19.7% year on year to¥54.7 billion, and the operating margin rose 1.1 points to
11.3%. The strategic domain ratio also improved as planned,

Seeking continuous growth exceeding 10% CAGR

45%

About
¥100 billion

Investment discipline
ROIC 8%

10% CAGR

200

Top Message

Representative Director,
Executive Vice-President

Introduction

We will strive to achieve sustainable improvement in corporate value by balancing robust investment ingrowth fields with management conscious of capital costs.

Return to shareholders
Acquired treasury shares

About ¥5.5 billion＋

Capital optimization
Acquired treasury shares

About ¥24.5 billion

50

g Basic Policy on Return to Shareholders

We will improve the value provided in DX services and underpin efforts to acquire new technology throughrobust investment of about ¥100 billion.
Growth Investment

New SPB¥30 billion Human

Promote investment to attract
human resources for businessareas of focus
Continue to invest in programs
to hone professional skills of
employees

Stronger value chain

Emerging Tech

Joint creation

X - TechDX Offering

Tech Innovation

Fiscal 2022
(actual)Fiscal 2023
(estimates)(*Rough calculation)

10.0

5.7

3.0

Investment in R&D to acquire advanced technologies

12.0

2.7

Sub-total

30.0

10.6

9.0

70.0

2.4

undecided

Software investment to create new services

8.0

Investment in human resources to fuel structural transformation＋

2.0

MaintainfinancialhealthStrengthen
return toshareholders

g Status for Return to Shareholders

・Implemented ¥4 increase in year-end dividend for fiscal 2022. In line with policy on total return ratio (after adjustment) of 45%.
・In fiscal 2023, TIS will complement normal portion of return to shareholders with treasury stock buyback of ¥24.5 billion.

2.5
3.5

Fiscal 2022 (actual)
Annual dividend per share

Fiscal 2023 (estimates)(Capital optimized)(Normal)–¥47¥11.3 billion–¥11.3 billion

27.9% (30.7%)

30.5%

–

30.5%

¥4.47 billion¥5.5 billion¥24.5 billion¥30.0 billion *2

39.3%（43.1％）

45.0%

–

110.3%¥44¥47(Compared with estimate +¥4)

(YOY change +¥3)

¥11.0 billion

Payout ratio (After adjustment * )g Cash Allocation, Structure of Balance Sheets

Acquired treasury shares

We will balance robust growth investment with stronger return to shareholders, based on cash frombusiness activities.

Total return ratio

Investment to expand strategic domain business

100.0

Total

13.0

‒

Total dividends
1Cash Allocation

Structure of Balance Sheets

Investment
About ¥100 billion
Growth investment
M&A/software

Growth investment
R&D/
personnel investment

Other Liabilities

Robust growthinvestment on conditionof investment discipline
Cross-holdings culled if
holding criteria not met

Procurement matched toinvestment opportunities
on condition of retaining
A rating

51

Annual: ¥35

¥31

¥10

¥11

¥13

¥15

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal2023

Dividends (interim)
Dividends (interim,
estimate)

Total Acquired Treasury Shares (Millions of yen)

43.1%
42.8% (After adjustment* ) 45.0%(Estimate)

1

39.8%
25.7%

Dividends (term-end)
Dividends (term-end,
estimate)a. Income from operating activities(After deducting corporate and othertaxes and non-controlling interests)

30,000*2
About 24,500(Estimate)

¥32

¥24

b ＝45％ (Yardstick)
a

31.9%

30.7%

(After adjustment*1)

30.5%

4,139

4,470
3,029
About 5,500

Fiscal
2020

Fiscal2021

Fiscal2022

Total return ratio

Fiscal2023

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal2023

Payout ratio*1 Based on profit (after income taxes and income
attributable to non-controlling interests)*2 Upper limit based on treasury stock buyback
announced May 11, 2022.

Corporate Information/Data

ROE Growth Structure(Estimate)¥20
EquityNon-business assets

Strengthen
return to shareholders
About ¥50 billion

Annual: ¥30

Interest-bearing debt

Business assets

Facility maintenanceinvestment

Asset optimization/fund procurement,
including cross-holdings

Current assets

Total Return Ratio and Payout Ratio

Annual: ¥47

Annual: ¥44

Allocation

Cash from businessactivities

Changes in Dividends per Share

Basic stance on return to shareholders
Fuller return matched to business growth

g Cancellation of Treasury Stock

Fiscal 2021 (actual)

Fiscal 2024 (estimates)

Fiscal 2022 (actual)

ROE

10.8%

12.5%〜13%

14.0%

Date of cancellation

Number of shares cancelled

Percentage of total number ofissued shares prior to cancellation

Net income ratio

6.2%

7.8% Structural transformation, investment results

8.2%

September 28, 2021

12,206,400

4.6%

Total asset turnover ratio

1.08

Financial leverage

1.63

Slight drop Increase in business assets paralleling growth investments
On a par Maintain financial health

1.04
1.65

Platform for Value Creation

Stable generation of cash

(After adjustment *1)(Total)Growth Strategy for Value Creation

Medium-Term
Management Plan(Three years total)(Billions of yen)

Promotegrowthinvestment

TIS INTEC Group Value Creation

Pursue research into
leading-edge technology
Engage in applied research toaccelerate market entry for
new business activities

Promote growth investment
・Take vigorous approach to investment in human resources as well as
upfront investment, M&As and other growth investment opportunities.
Respect investment discipline ROIC of 8%, with maximum investment of¥100 billion over three years. Provide higher level of DX value and work toacquire new technology to achieve strategic domain ratio of 60% andoperating margin of 11.6%.
Maintain financial health・Have cash and deposits equivalent to two months’ worth of monthly sales,
mindful of maintaining A rating.
Strengthen return to shareholders
・With yardstick of 45% for total shareholders’ return ratio, goal is tocontinuously enrich dividend per share.
・The amount of treasury stock held by TIS will, in principle, be no more than
5% of total number of shares issued, and any shares exceeding this limit
will be canceled.

Top Message

R&D

resources

Seek more appropriate capital composition and enhanced capital efficiency, with efforts to promote growthinvestment, maintain financial health and strengthen return to shareholders —all in the right balance.

ASEAN

Robust investment themes:
Social issues where we can contribute solutions
Urban concentration/
Financial inclusion
rural decline
Low-carbon/
Health concerns
decarbonized society

Continue investment insoftware development forindustry platform building

Software
Internal
reinforcement

ChannelImplement strategic M&As
Contribute capital to accesstechnology and know-how andpromote joint business pursuits¥70 billion* Based on profit (after income taxes and income
attributable to non-controlling interests)

b. Total return to shareholders

M&A(capital contribution)

Constantly enrich thedividend

45%

Investment Policy

Upper limiton treasury stock holdings
at 5%

Dividends per share

Total return ratio*

Introductiong Growth Investment

Treasury shares (approximately ¥24.5 billion) planned for acquisition in fiscal 2023 as part of a process to improve capital structure will be canceled, inview of corporate policy and issues, namely, dispeling concerns about future stock dilution.

52

Business Strategies by Segment

Business Results by Segment (Year ended March 31, 2022)

Group Formation (As of April 1, 2022)
Domestic

Industrial IT Business

Regional IT Solutions

Segment owner

Segment owner

Segment owner

Segment owner

Segment owner

TIS
operating divisions

TIS
operating divisions

AGREX INC.

QUALICA Inc.

TIS West Japan Inc.

TIS Solution Link Inc.

TIS Hokkaido Inc.
TIS Tohoku Inc.
TIS Nagano Inc.

Segments

Business Process Management
Financial IT BusinessIndustrial IT Business

1.4%

28.1%

Others

30.1%

Net sales

Operating income[operating margin]¥103.1 billion¥4.6 billion[4.5%]

Regional IT Solutions
Adjustments

Net salesby business category

Strategic domain image

Offering Service Business
IOS

IOS

Addresses issues related to businessprocesses with IT technology, businessknow-how and skilled human resources toprovide more sophisticated, more efficient
outsourcing services.

¥4.9 billion[11.6%]

Considers business and IT strategies
together and leverages both, and supportsbusiness progress using expert businessand operating know-how specific to thefinance industry.

¥91.6 billion¥12.3 billion[13.5%]

Miotsukushi
Analytics Co., Ltd.
ULTRA Inc.

SPB

Industrial IT Business

Group
out

Chuo System
Corporation¥108.7 billion¥15.3 billion[14.1%]

SPB
IOS

SPB

Regional IT Solutions

Core strategic domain for growthOffering Service
Business

IT Offering Service (IOS)

Other

Business Process
Management

Business Function Service (BFS)

Financial IT
Business

Strategic Partnership Business (SPB)

Industrial IT
Business

Strategic Partnership Business (SPB)

Regional IT
Solutions

Strategic Partnership Business (SPB),IT Offering Service (IOS)*In addition to segments noted above,
there is the Other segment.

*A business segment for business activities that do not
fall under other reporting segments. Consists mainly ofancillary businesses providing all sorts of IT services.

¥156.2 billion¥16.4 billion[10.6%]

IOS
BFS¥6.3 billion¥0.7 billion

Adjustments–¥26.5 billion¥0 billion

Consolidated Results¥482.5 billion¥54.7 billion

Software development
Operation and
Cloud Services
Product and software sales

SPB
IOS
BFS

Number of companies
Offering Service Business:
TIS, 27 consolidated subsidiaries (domestic 4, overseas 23), and 72 equity method affiliates (domestic 1, overseas 71)
Business Process Management: Four consolidated subsidiaries (domestic 3, overseas 1)
Financial IT Business:
TIS, one consolidated subsidiary (domestic 1), and two equity method affiliates (domestic 2)
Industrial IT Business:
TIS, nine consolidated subsidiaries (domestic 6, overseas 3)
Regional IT Solutions:
Seven consolidated subsidiaries (domestic 7), and two equity method affiliates (domestic 2)
Other:
Five consolidated subsidiaries (domestic 4, overseas 1)
54

Corporate Information/Data

New reporting segment

Provides IT professional services extensively,
across regions and client sites, and collects
and develops this know-how as the sourceof solutions to support efforts to address
issues and promote business activities.

Promote growth strategies more effectively by meticulously applying a business model–specific management approach to operations
Turn offering services, representative of an upfront investment-style business model, into a business category, and accelerate shift toward service status
Turn regional IT solutions into a business category with a broad client base and promote IT professional services and solutions

Platform for Value Creation

Key Points of Change

Considers business and IT strategies
together and leverages both, and supportsbusiness progress using expert businessand operating know-how specific toindustry sectors other than finance.

Growth Strategy for Value Creation¥42.9 billion

BFS

Financial IT Business

TIS
Chiyoda Systems Inc.

MFEC Public Co., Ltd.

53

22.6%

Offering Service Business

32.4%

INTEC Inc.

Strengthen group collaboration

Industrial IT
Business

22.5%

Business Process Management
AJS Inc.

Financial IT
Business

9.1%

Configures services through own
investment based on best practices
accumulated groupwide and provides
knowledge-intensive IT services.

Merger NEOAXIS Co., Ltd.

BPO

19.0%

TIS INTEC Group Value Creation

Financial IT Business

Service IT
Business

8.9%

Top Message

Business Process
Management

Old reporting segment

21.4%

1.3%

Operating Income (Consolidated)¥54.7 billion-0.1% 8.6%

Offering Service
Business

TIS
operating divisions

Group
in

Net Sales (Consolidated)¥482.5 billion

Replace assets through investment and sale of non-corebusinesses to optimize business portfolio
Maximize business efficiency and Group synergies

TIS Inc.

TIS
System Service Inc.

*Segment sales include intersegment sales.

-5.5%

Emphasize optimal position of entities with strength
according to business modelTransfer businesses among entities (including national
health insurance, EDI, energy related services)

Introduction

Change in Reporting Segments
To promote further structural transformation, TIS implemented a change in the management structure of the TIS INTEC Group, and paralleling thischange, the Company implemented a business model–specific management approach in revising its reporting segments, effective from fiscal 2023.
The new reporting structure comprises six segments: Offering Services, Business Process Management, Financial IT, Industrial IT, Regional IT Solutions
and Other. Through these changes in reporting segments, we have clarified the authority and responsibilities of segment owners and set the stage forachievement of growth strategies utilizing the strengths of each Group company.

Business Process Management (BPM)

We will accelerate the shift toward service-style business byleveraging an upfront investment-style business model.
The Offering Services Business covers multiple domains, including payment services, which turnknowledge gained through systems integration for financial institutions into a service, along withdigital marketing, healthcare and business management information services. This segment is also
involved in global operations, a priority area for TIS. *For details, please go to page 37.
Among TIS’ social issue solution services, which target social transformation using digitaltechnology, the Offering Services Business makes a significant contribution in the fields offinancial inclusion and health concerns.
In fiscal 2022, the segment turned in favorable results, underpinned by payment services,which benefited from solid demand for services to address the growing popularity of cashless
payment options. The upfront investment phase has concluded, and now we can look forward toenhanced profitability.
To achieve targets under the current medium-term management plan, the Offering Services
Business will promote service-style businesses that will become a hallmark feature of the Group’s
structural transformation. The segment will function as a driver of growth, fueled by higher profits.

Toward achievement of medium-term management plan (growth strategies)
Seek growth in payment services, which hinge on CreditSaaS, shift toward recurring business, and improve profitability.
Seek growth through synergies among payment services, digital marketing and healthcare, and improve added value through vertical integration ofcloud and security structures.
Net Sales
ActualEstimates(Billions of yen)

ActualEstimates

4.6

Fiscal 2024
(Initial plan)

Estimates(Billions of yen)

Fiscal 2022
(Actual)

44.9

45.5

42.9

6.1

Fiscal 2023
(Estimates)

Medium-term management plan

8.8%
9.5

Fiscal 2024
(Initial plan)

Fiscal 2022
(Actual)Fiscal 2023
(Estimates)

Fiscal 2024
(Initial plan)

ActualEstimates

Operating margin

11.6%

11.7%

4.9

5.2

Fiscal 2022
(Actual)Fiscal 2023
(Estimates)(Billions of yen)

Medium-term management plan

10.6%

4.8

Fiscal 2024
(Initial plan)

Corporate Information/Data

TopicsFor press releases related to this segment, please visit the following pages:
TIS turns ULTRA Inc., an international prepaid payment servicer, into a consolidated subsidiary (Japanese only)
https://www.tis.co.jp/news/2022/tis_news/20220509_1.html
TIS’ RoboticBase®, software that facilitates operation of multiple service robots, including those for delivery service, to be installed at
Tokyo Midtown Yaesu (Japanese only)
https://www.tis.co.jp/news/2022/tis_news/20220422_1.html
TIS teams up with University of Occupational and Environmental Health, Japan, for joint research on structure to realize strategic healthinvestment and provides Sustainacare personalized healthcare program (Japanese only)
https://www.tis.co.jp/news/2021/tis_news/20220328_1.html
55

ActualOperating Income

Platform for Value Creation

5.7%
4.5%

Fiscal 2023
(Estimates)(Billions of yen)

Medium-term management plan

106.3
103.1

Net Sales

Operating margin

108.5

Business environment
Labour shortages and workstyle reforms are unlikely to change,
fueling gradual growth of the BPO market.
Demand is solid in the insurance sector, which comprises about
50% of AGREX’s BPO business.
Demand for digitization of business processes is growing.

Toward achievement of medium-term management plan (growth strategies)
Boost added value beyond simple outsourcing through digitization of business processes.
Augment presence in forte sectors, such as insurance and securities, by working to cultivate position in new markets.
Invest in next-generation BPO production platform and translate results into future growth.

Operating Income

Medium-term management plan

Fiscal 2022
(Actual)Strengths
Unique methodology integrating business process know-how built
on more than half a century of hands-on experience.
Comprehensive capabilities optimizing full spectrum of businessprocesses through fusion of business process outsourcing (BPO)
and systems integration services.
Business knowledge based on track record of outsourcing services
for insurance sector.

Growth Strategy for Value Creation

Business environment
Cashless market continues to grow. Government continues to back
FinTech, Big Data, AI and data use and application.
Active trends in financial and non-financial approaches, increasing
foreign presence in domestic cashless market, and wider
application of digital currency.
Despite positive impact of ASEAN recovery, negative impact ofslowing Chinese economy is reverberating in Japan, dampening
economic outlook.

AGREX President

TIS INTEC Group Value Creation

Strengths
Ability to utilize industry knowledge accumulated through systems
integration operations and provide upfront investment-styleservices incorporating universal services as standard features.
Quality, cost and delivery (QCD) management capabilities built on
experience in large-scale systems configuration.

Tatsuro Unemori

Based in digital technology and business know-how, from an administrative perspective, BPM is asegment that helps clients make the most of business processes. It comprises outsourcing, contact
center operations and system configuration as well as DX support paralleling use of IT solutions.
To achieve the targets laid out in the medium-term management plan launched in April 2021,
AGREX will lead the segment in actively striving to expand business paralleling structuraltransformation. Fiscal 2022, the first year of the plan, was marked by higher sales and higher
income, thanks to wider demand for contact center operations and DX support.
Going forward, as the workforce shrinks due to the graying of society and a declining
birthrate, companies will increasingly look to outsourcing as a way to deal with expanding anddiversifying business process needs. We will respond proactively with high-value-added businessprocess services that combine industry and operational know-how accumulated groupwide withthe digitization of business processes, and thereby help clients reinforce and grow theirbusinesses. In conjunction, we will contribute to solutions that address social issues throughaccess to services that boost productivity.

Top Message

Kiyotaka Nakamura
TIS Senior Managing Executive Officer,
Division Director of Digital Transformation Business Unit

We will actively strive to expand business, paralleling structuraltransformation, and aim for higher added value through digitizationof business processes.

Introduction

Offering Services Business

TopicsFor press releases related to this segment, please visit the following pages:
Opened Digitization Center as first stage in Evolution BPO concept to turn back-office operations into digital, shared services (Japanese only)
https://www.agrex.co.jp/news/pdf/508

56

Industrial IT BusinessAs a true business partner to clients, we will co-create new
businesses and contribute to solutions that address social issues.

Shinichi Horiguchi

Business environment
As a business that supports social infrastructure, this segment
enjoys solid demand, underpinned by brisk financial IT market
activity.
Upswing in IT investment, especially for DX.
Intensifying competition among Fintech and SaaS providers.

95.7

96.0

Estimates

Net Sales

Operating margin(Billions of yen)

Actual

13.5%

13.6%

Medium-term management plan

12.3

13.0

13.5%
13.0

108.7

Fiscal 2022
(Actual)Fiscal 2023
(Estimates)

Fiscal 2024
(Initial plan)

Fiscal 2022
(Actual)Estimates

Operating Income(Billions of yen)

110.7

Medium-term management plan

Actual

14.1%

109.0

Estimates

Operating margin

14.4%(Billions of yen)

Medium-term management plan

12.8%

15.3

15.9

Fiscal 2022
(Actual)Fiscal 2023
(Estimates)

14.0

91.6

Fiscal 2022
(Actual)Fiscal 2023
(Estimates)

Fiscal 2024
(Initial plan)

57

Fiscal 2024
(Initial plan)

Fiscal 2024
(Initial plan)

Corporate Information/Data

TopicsFor press releases related to this segment, please visit the following pages:
TIS establishes tance Co., Ltd., a joint venture, with Japan Card Network (Japanese only)
https://www.tis.co.jp/news/2020/tis_news/20210310_1.html
Initiated proof of concept on self-sovereign identity (SSI) at facility in Shirahama, Wakayama Prefecture (Japanese only)
https://www.tis.co.jp/news/2021/tis_news/20211109_1.html

Fiscal 2023
(Estimates)

Platform for Value Creation

Medium-term management plan

ActualGrowth Strategy for Value Creation

Operating Income(Billions of yen)

Business environment
Favorable IT investment demand driven by active interest in DX,
especially among large corporations.
Electric power sector still on recovery track but impact of high priceof oil requires careful monitoring.

Toward achievement of medium-term management plan (growth strategies)
Respond to IT demand from core clients, and improve value provided in DX services.
Cultivate industries through lateral application of insights about processing- and assembly-based manufacturing, and establish various revenue
models based on co-creation activities with clients.

Toward achievement of medium-term management plan (growth strategies)
Respond to IT demand from core clients, particularly that related to credit cards, and improve value provided in DX services.
Establish various revenue models based on co-creation activities with clients.

Net Sales

Strengths
Knowledge accumulated in processing- and assembly-based
manufacturing and energy sectors.
Platform-building capabilities for ERP templates using accumulated
know-how.
Solid relationships of trust with core clients built through ability torespond to need for high-quality systems.

TIS INTEC Group Value Creation

Strengths
Overwhelming market share in services related to core systemdevelopment for credit card companies and branded debit cards.
Technologies and know-how accumulated in handling core systemdevelopment and operation for major credit card companies.
Solid relationships of trust with core clients built through ability torespond to need for high-quality systems.

Estimates

Masahiro Hosokawa
TIS Senior Managing Executive Officer,
Division Director of Industries & Public Solutions SBU
and Enterprise Consulting Business Unit

The Industrial IT Business supports clients across a broad base of industries and the public sector
in all aspects of system lifecycle, from consulting through system configuration, systemenhancement and system operation.
Our track record includes projects for members of the energy, processing- and assembly-based
manufacturing and engineering sectors, and we bring our strengths in ERP consulting andmodernization services to our clients.
In fiscal 2022, the segment posted higher sales and higher income against a backdrop of
brisk IT investment by clients in their efforts to embrace DX.
The value we provide is steeped in a deep understanding of all industries, and it has earned
high praise from our clients. In combination with measures to boost productivity, value drives
profitability on a groupwide basis. To achieve our targets under the medium-term management
plan, we will cultivate knowledge specific to each sector and pursue lateral development ofsolutions to secure the trust of clients and expand business opportunities.

Top Message

The Financial IT Business provides one-stop support for the entire system lifecycle based on
specialized insights into the finance sector. This segment strengthens partnerships with clients inthe finance sector, which represents a core client base, and helps them find solutions tomanagement issues.
In fiscal 2022, the Financial IT Business achieved higher sales and higher income year on year,
reflecting an aggressive stance on IT investment, particularly DX, by many clients seeking to honea sharper competitive edge and restructure their businesses in response to major changes in theirbusiness environments caused by the COVID-19 pandemic.
As we address the growing need for IT in business operations where we can showcase
insights gained over many years, we will also engage clients in a process of business co-creation,
guided by the medium-term management plan. By creating new businesses, we help clients
expand business content and, by extension, provide solutions to social problems.
We will strive harder to become a true business partner of our clients.

TIS Senior Managing Executive Officer,
Division Director of Financial Industry SBU and IT Platform SBU

Actual

We will earn deeper trust from clients and expand business bycultivating industry knowledge and pursuing lateral development ofsolutions.

Introduction

Financial IT Business

TopicsFor press releases related to this segment, please visit the following pages:
With Carbony VPP platform, TIS supports electric vehicle (EV) introduction and total service expansion by Hokuriku Electric Power(Japanese only)
https://www.tis.co.jp/news/2022/tis_news/20220628_1.html

58Regional IT Solutions
We will reinforce and expand business content by providing IT-driven
professional services and solutions and integrate both aspects ofbusiness while promoting a virtuous cycle.

Takayuki Kitaoka
INTEC President

Hinging on INTEC, which is headquartered in Toyama Prefecture, Regional IT Solutions provides
IT-driven professional services over a wide area, such as a whole community or across clientcompany office networks within the prefecture and beyond, and also accumulates and develops
associated know-how, turning it into solutions that support clients’ efforts to address issues ofconcern and help promote business.
With offices all over Japan, not just in the area around Tokyo, INTEC contributes to regional
renaissance and community revitalization by providing original solutions and pursuing lateraldevelopment of solutions, which complement the strength of network integration, and by
engaging in joint activities with local governments on IT issues related to smart cities.
In fiscal 2022, demand for IT-driven professional services for clients in the finance sector was
brisk, leading to year-on-year increases in sales and income.
To build our IT-driven professional services, we will collect business insights through close ties
with our clients, turn the knowledge into solutions, and leverage lateral development of thesesolutions. On the solutions-side of business, we will enhance user structure support solutions andstrive to expand our share of the national development-style solutions market. As we reinforce
and expand both the solution and service sides of business and concurrently integrate these
aspects of business while promoting a virtuous cycle for top-line growth, we will achieve thetargets stated in the medium-term management plan.

Strengths
Extensive industry representation in client base, including local
governments, financial institutions, manufacturers, service providers
and aerospace companies from across Japan.
Solution development capability underpinned by network integration
across the country and synergistic effect with original services.
Track record includes integrated information solution F3 for financial
institutions; system implementation and operation for Federation of
National Health Insurance Associations; and implementation ofsolutions for regional banks and local governments.

Business environment
Operating environment for regional financial institutions
increasingly more challenging due to low interest rates andsluggish local economic conditions, leading to mergers andaccelerating polarization of scale.
Tangible trend among local governments to implement national
government–led standardized system, with standard specifications
announced in fiscal 2022.
Despite variation by industry and company, IT demand is on arecovery track, especially in medical-related fields.

Toward achievement of medium-term management plan (growth strategies)
Collect business insights through close ties with clients, turn the knowledge into solutions, and leverage lateral development of these solutions.
Enhance user structure support solutions and expand share of the national development-style solutions market.
Net Sales
ActualEstimates

Operating Income(Billions of yen)

ActualEstimates

Operating margin

Medium-term management plan

Medium-term management plan

160.0

158.5

Fiscal 2022
(Actual)

10.6%
16.4

156.2

Fiscal 2023
(Estimates)

Fiscal 2024
(Initial plan)(Billions of yen)

Fiscal 2022
(Actual)

10.9%

11.2%

17.2

18.0

Fiscal 2023
(Estimates)

Fiscal 2024
(Initial plan)

TopicsFor press releases related to this segment, please visit the following pages:
INTEC begins joint operation with two Toyama Prefecture–based cable networks (NICE TV and TST) on IoT platform for local governments
using regional network infrastructure (Japanese only)
https://www.intec.co.jp/news/2022/0413_1.html

59