Tokyo Stock Exchange Prime Market: Securities Code 3992

Needs Well Inc.

Financial Results for the Fiscal Year 2022
(October 1, 2021 – September 30, 2022)
November 10, 2022

1. 2022/9 Financial report summary

2. 2023/9 Results forecast

3. Growth strategy

4. Reference1.1) Net sales, ordinary profit
Significant increase in both net sales and profit year on year, showing astrong trend of expansion•••

Expanded sales channels and reinforced the customer base through active capital and business alliances andbusiness alliances
・ Expanded projects for DX of life insurance companies, core system testing for telecommunication carriers,
cards/payments, and VDI installation/cloud building
The Solutions Business gave momentum to our growth, driven by a paperless work environment, telework, andthe revised Preservation of Electronic Records Act

Net sales

6,730

million JPY

YoY

+17.0

％

Ordinary profit margin

Ordinary profit

724

million JPY

YoY

+24.5

％

10.8

％

Net profit ratio

Net profit
Financial Results for the Fiscal Year 2022

499

million JPY

YoY

+18.5

％

7.４

％

3

1.2) Financial highlights: Net sales/ordinary profit, trends/comparison by FY

Both net sales and ordinary profit reached new highs since establishment
High level for salary increases of 2.15% and an annual bonus of 4.8 months
due to strong performance[Net sales by quarter]
7,000

6,730
Unit: million JPY

5,000

5,517

5,752

Total

5,364

1,420

1,757

1,490

1,285

600

Unit: million JPY

3,000

1,391

1,470

1,341

1,418

1,348

1,562

FY2019/9

FY2020/9

FY2021/9

FY2022/9

0

724

Total

Total

Total

505

514

164

145
186

134

175

400

135

300

104

200

155

71

193

1,690

1,382

Total

582

1,443

1,268

1,373

1,000

700

500

1,718

4,000

2,000

[OrdinAary profit by quarter]

Total

Total

6,000

Total

170

174

100

110

92

FY2019/9

FY2020/9

130

181

0
1Q

Financial Results for the Fiscal Year 2022

2Q

3Q

4Q

1Q

2Q

FY2021/9
3Q

FY2022/9

4Q

41.3) Performance progression rate
Progression rate on performance targets: 100.5% for net sales, 103.7% for ordinary income
Infrastructure Services: Strong performance in VDI installations and cloud-related projects
Solutions: Strong performance in solutions relating to the Revised Preservation ofElectronic Records Act, DX, and telework
Business Systems SI

Core system testing for telecommunication carriers,
development of information management systems andcertificate issuing systems for a government agency, andagile software development for DX of insurance companies,
etc., increased.

Net Sales 100.5% 6,730 (6,700)[Breakdown of net sales]

Business Systems SI

Infrastructure Services

98.2% 4,988 (5,080)
108.6% 696 (641)

Infrastructure Services

In addition to coordination between Business Systems SI and
Solutions/Products, etc., and VDI installation with full-scale
entry into cloud-building initiatives, we captured demand forinfrastructure enhancement in public projects.

Connected Systems

91.6% 192 (210)

Solutions/Products, etc.

111.0% 852 (767)

Operating profit

103.0% 690 (670)

Ordinary profit

103.7% 724 (698)

Affected by the spread of COVID-19, orders for the
manufacturing industry decreased.

Net Profit

103.1% 499 (484)

Solutions/Products, etc.

* Progression rate/ Performance (FY2022/9 target)
Financial Results for the Fiscal Year 2022

Connected Systems

１００％

Invoice PA, a unique solution for expense management, and
RPA remained strong. We aim to further expand the businessin the next fiscal year by introducing new solutions.
51.4) Ordinary profit analysis
Ordinary profit increased 24.5% (142 million JPY) year on year
• Gross profit increased by 148 million JPY (+10.5% year on year) due to increased orders and acquisitionof high-value-added projects• Personnel-related expenses★ increased by 152 million JPY (+4.8% year on year) due to additional
employees, salary increases of 2.15% and an annual bonus of 4.8 months
Unit: million JPY

Cost of sales (labor)★
increased

Net sales
increased

FY2021/9
Ordinary profit

Cost of sales (other)increased

Cost of sales (outsourcing)increased- Gross profit increased by 148 million JPY YoY -Financial Results for the Fiscal Year 2022

SG&A expenses(personnel)★
increased

SG&A expenses(other), etc.
decreased

YoY+24.5%FY2022/9

Ordinary profit
61.5) Profit & loss statement
Ordinary profit ratio was 10.8% (Up 0.7 pts YoY)
FY2021/9 Financial Results

Unit: million JPY

ResultNet Sales

FY2022/9 Financial Results

ResultNet Sales

Year-on-year

Net sales

5,752

-

6,730

-

117.0%

Business Systems SI

4,360

75.8%

4,988

74.1%

114.4%

Infrastructure Services

580

10.1%

696

10.3%

120.0%

Connected Systems

191

3.3%

192

2.9%

100.8%

Solutions/Products, etc.

620

10.8%

852

12.7%

137.4%

1,414

24.6%

1,562

23.2%

110.5%

SG&A expenses

833

14.5%

872

13.0%

104.6%

Operating profit

580

10.1%

690

10.3%

119.0%

Non-operating profit

12

0.2%

35

0.5%

281.5%

Non-operating expenses

10

0.2%

1

0.0%

14.3%

Ordinary profit

582

10.1%

724

10.8%

124.5%Net profit

421

7.3%

499

7.4%

118.5%

Gross profit

Financial Results for the Fiscal Year 202271.6) Balance sheet
Equity ratio at 77.5%, down 2.7 pts year on year due to acquisition of treasury shares*Selection of significant entries only FY2021/9

Unit: million JPY

ResultFY2022/9
Result*Selection of significant entries only

Year-on-year

Unit: million JPY

FY2021/9

ResultFY2022/9
Result

2,868

2,609

-259

Accounts payable - trade

143

213

70

Accounts receivable

938

0

-938

Accounts payable - others

149

150

0

0

1,163

1,163

Accrued corporate tax, etc.

124

180

56

Prepaid expenses

25

72

46

Accrued consumption taxes

91

90

-1

Other

9

0

-10

Deposits received

41

44

2

Total current assets

3,842

3,844

1

Provision for bonuses

302

343

41

Buildings, net

31

29

-2

8

15

6

Software

82

81

-1

Total current liabilities

861

1,038

176

Total non-current liabilities

0

0

0

861

1,038

176

Share capital

907

908

0

Legal capital surplus

763

764

0

Retained earnings brought forward

1,807

2,072

Liabilities

Cash and deposits
Accounts receivable - trade and contract assets

Other

AssetsSoftware in progress

Total liabilities

Investment securities

114

236

121

Shares of subsidiaries and associates

0

107

107

Defferred tax assets

118

136

17

Leasehold and guarantee deposits

83

83

0

Insurance funds

76

76

0

Treasury shares

0

Other

3

3

0

Valuation difference on available-for-sale securities

517

764

246

4,360

4,608

248

Total assets

Financial Results for the Fiscal Year 2022

Current
assets,Current
assets,3,842

Unit: million JPY

Noncurrent
assets,

3,844

764

517
End of FY 2021/09

Noncurrent
assets,End of FY 2022/09

Liabilities & Net Assets

Unit: million JPY

Current liabilities

Current liabilities

861

1,038

265

Net assets,

Net assets,

-200

-199

3,498

3,570

20

24

4

Total net assets

3,498

3,570

71

Total liabilities and net assets

4,360

4,608

248

End of FY 2021/09

End of FY 2022/09

EquityTotal non-current assets

AssetsYear-on-year8

1. 2022/9 Financial report summary

2. 2023/9 Results forecast

3. Growth strategy

4. Reference2.1) Transition to consolidated accounting
Transition to consolidated accounting from October 2022 with Needs
Well’s inclusion of subsidiaries and an equity-method affiliate
Needs Well Inc.

Business Systems SI, Infrastructure Services, Connected Systems, Solutions[Consolidated subsidiaries]
Zeroichi Production Co., Ltd.

Contract development for construction sector,
MVNO-related business

BO STUDIO Inc.

Web design, consulting, digital marketing

KOMSOFT Inc.

Financial system & web-related system development[Equity-method affiliate]
Souken-sys Inc.

Core system, app, e-commerce site & cloud-based development
Financial Results for the Fiscal Year 2022

102.2) Forecast (Consolidated)
Toward achieving the Medium-Term Management Plan Targets of
Net sales: 10.0 billion JPY & Ordinary profit: 1.0 billion JPY

Needs Well will continue efforts throughout FY2023/9 to expand existing businesses and conclude
M&A contracts at a pace that exceeds forecasts
Infrastructure Services 639(7.1%)

FY2023/9 forecast(Consolidated)
Total

9,000 million JPY

Unit: million JPY(YoY)

Solusions/Produts, etc
1,288(14.3%)

Business Systems SI 6,818(75.8%)
Infrastructure Services 696(10.3%)

FY2022/9 (Non-consolidated)
Total

Connected Systems 251(2.8%)

6,730 million JPY

Connected Systems 192(2.9%)

Business Systems SI 4,988(74.1%)
0

1,000

2,000

3,000

4,000

Solusions/Produts, etc 852(12.7%)
5,000

6,000

7,000

8,000

9,000
Unit: million JPY(YoY)845

Ordinary profit

Ordinary profit margin 9.3%

FY 2023/9 forcast

FY 2022/9

724
0Financial Results for the Fiscal Year 2022

100

200

300

400

500

600

700

800

900
11

2.3) Medium-Term Management Plan: Present situation & measures

Medium-Term Management Plan Targets for FY2023/9

Net sales: 10.0 billion JPY Ordinary profit: 1.0 billion JPY

Present
situation

While existing businesses are steadily expanding to exceed the target of 7.7 billion JPY, we arefacing issues in the scale of concluding M&A contracts
With current FY2023 forecast for net sales of 9.0 billion JPY, measures necessary to covergap in relation to Medium-Term Management Plan target for net sales of 10.0 billion JPY
Medium-Term Management Plan (FY2023)

Net sales targets - Existing businesses: 7.7 billion JPY>

Current

M&A: 2.3 billion JPY

FY2023 Net sales (forecast): 9.0 billion JPY (consolidated)

1.0 bil. JPY

FY2022 Net sales (results): 6.7 billion JPY (non-consolidated)
FY2021 Net sales (results): 5.7 billion JPY (non-consolidated)
FY2020 Net sales (results): 5.3 billion JPY (non-consolidated)

Measures& revisions

Target net sales
total 10.0 bil. JPY

1) Cover delays in M&A by increased sales from capital and business alliances / business alliances

2) Continue to explore M&A projects that have the potential for synergies. Now working on evaluating the value of several projects
3) If a large amount of additional funding is required, consider bank loans instead of fund-raising through the issuance of newsharesFinancial Results for the Fiscal Year 2022

122.4) Dividends and shareholder returns
FY23/9 forecast Dividend per share: 23 JPY/share 3 JPY increase in regular dividend
In addition to shareholder returns, we will work to increase employee
salaries and bonuses in seeking economic growth and securing talent.
Dividend (JPY; regular and commemorative dividends)％
and payout ratio
30.00
39.0

25.00
20.00

18.00

16.00

13.50

12.50

5.00

Regular dividend+1 JPY

0.00
FY2018/9

40.1

39.0 %

20.00

Regulardividend

5.00

15.00
10.00

Payout ratio(Total23.00)

32.8

32.2

49.3

Regular dividend+2.5 JPY

FY2019/9
Regular dividend(JPY)FY22/9 total return ratio: 79.6%

Regular dividend+2 JPY
Commemorative
dividend+5 JPY

Regular dividend+2 JPY
Commemorative
dividend-5 JPYFY2020/9
FY2021/9
35th anniversary commemorative dividend(JPY)

Regular dividend+3 JPYFY2022/9
Payout ratio (%)

23.00

JPY/share

50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

FY2023/9(forcast)

Needs Well acquired approximately 200 million JPY of treasury shares from February to May 2022

* The Company plans to pay a commemorative dividend of 5.00 JPY in addition to a regular dividend of 18.00 JPY in commemoration of the Company’s 35th anniversary for the fiscal year 2021/9.
* Needs Well conducted stock splits on April 1, 2018 at a ratio of 2 shares per share, and on January 1, 2019 at a ratio of 2 shares per share. Past annual dividends per share have been retrospectively adjusted
based on these stock splits.

Financial Results for the Fiscal Year 2022

13

1. 2022/9 Financial report summary

2. 2023/9 Results forecast

3. Growth strategy

4. Reference3.1) Management philosophy

Management philosophy

Contributing Broadly to the Economy and Society

Business slogan

Try & Innovation
Constantly evolving,
Needs Well continues to contribute broadly to the economy and society with challenges
and innovations.

Financial Results for the Fiscal Year 2022

153.2) Growth track
Oct 2021 Acquired 100% of BO-Studio, Komsoft total outstanding shares
July 2022 Holds 33.3% of Souken-sys Inc.’s total outstanding shares
Apr 2022 Tokyo Stock Exchange Prime Market
Oct 2021 Acquired 70% of Zeroichi Production’s total outstanding shares

Net sales
Number of personnel

Oct 2020 Started Logistics, Connected Businesses
Aug 2019 Started AI Business
Jun 2019 Tokyo Stock Exchange 1st Section
Jun 2018 Tokyo Stock Exchange 2nd Section
Oct 2017 Started Solution BusinessSep 2017 JASDAQ-IPO
Apr 2013 Started developing Embedded Systems
Oct 2012 Started Infrastructure Services, transaction with leading telecommunication carriers
Aug 1992
Starteddeveloping
Business
System SI

Apr 1996 Started transaction with leading hotels
Apr 1993 Started transaction with leading insurance companies

End of FY2022
Net sales:

6,730 mil. JPY
Employees: 570

EstablishedOct 1986
Started business consulting
Financial Results for the Fiscal Year 2022

Bankruptcy of Lehman
Brothers

COVID-19 Pandemic
FY2022/9 forecast

163.3) Medium-Term Basic Policy

Breaking away from the dispatch business,becoming a true system integrator

Financial Results for the Fiscal Year 2022

173.4) Our three strengths
Capacity for
financial systemdevelopment

Financial sector accounts for 50% of net sales in main service line,
Business Systems SI.
Particularly advanced in life insurance and accident insurance sectors.
Strong performance record in developing systems for banks, credit cards,
and securities.

Proficiency indirect sales to
end users

Ability toprovidesolutionsHigh level of direct transactions with end users such as life
insurance companies, leading hotels, telecommunications carriers,
etc., composing over 50% of sales.

Capacity for
financial systemdevelopment

Our threestrengths
Proficiency indirect sales to
end users

Ability toprovidesolutions

Provides solution services optimized for each customer’sbusiness objectives through 5G, AI, RPA, remote work, etc.

Financial Results for the Fiscal Year 2022

183.5) 1 Performance targets
FY2023/9

10.0

Net Salesbillion JPY

10.0 Billion JPY

CAGR（compound annual growth rate）

1.0

CAGR（compound annual growth rate）

billion JPY

1.0 Billion JPY

２４．８

２３．1

%

%

2020

Ordinary
profit2021

Existing businesses

2022
M&A

2023

2020

2021
2022
2023
Existing businesses
M&A* Please refer to page 12 for an analysis of the present situation and measures & revisions to be implemented.
Financial Results for the Fiscal Year 2022

193.5) 2 Promotion policies: Sales growthMarket scale (our forecast)Logistics IoT software solutions market(WMS, etc.)

103.0 bil. JPY

2020

80.0 bil. JPY

Smart cities market

2023

1,200.0 bil. JPY

2020

680.0 bil. JPY

AI’s major markets*

2023

32.0 bil. JPY

Connected Business
Proceed to engage in connected technologies to enrich lives, such as smart cities
which utilize IoT and AI to make the entire neighborhood more efficient andconvenient, etc.

+1.2

+0.3
+0.9

Solutions Business

Expand the scale of existing technologies and strengthen/introduce newtechnologies. Focus on logistics, connected functionality, AI, IoT, web, etc.

billion JPY
FY2023/9

4.7

Demand for investment is high due to structural reform for DX.
Introduce unique and differentiated products with integration functions thatutilize AI and RPA.

M&A

10.0

Sales growth+billion JPY

+2.3

M&A

2020

64.0 bil. JPY

Logistics industry is facing a serious labor shortage as the selection of diversifying
needs continues to increase. There is urgent demand for immediate investment instreamlining, improving quality, and reducing environmental burden through theuse of AI, IoT, etc.

Unit: billion JPY

Existing businesses

2023

Logistics Business[Breakdown]• Existing
businesses• M&A

2.4 bil. JPY
2.3 bil. JPY

5.3

billion JPY* AI’s major markets: Image recognition, speech recognition, speech synthesis, language analysis, search and retrieval, translation* * Please refer to page 12 for an analysis of the present situation and measures & revisions to be implemented.
Financial Results for the Fiscal Year 2022

FY2020/9203.6) Growth strategy
Promote improvement of corporate value

1

Expand Logistics Businesses

2

Focus
points6

7

Financial Results for the Fiscal Year 2022

3

Expand AI Business4

Expand nearshore development

5

Establish business foundation
Expand Solutions Business

Increase direct sales to end users

213.6) 1 Promote improvement of corporate value ⅰ
Promote our management philosophy of“Contributing Broadly to the Economy and Society”
through improvement of the NeedsWell Value• Institutional investor• Individual investors• Media• Promotes CI, VI

IR・PR

Capitalpolicy• M&A• Acquisition of treasury shares

CI: Corporate Identity
VI: Visual Identity

Performance• Net sales growth rate 20%• Ordinary profit margin 10%• Gross profit margin 25%• SG&A expenses rate 10%• Net sales 10.0 billion JPY (FY2023/9)• Liquidity – market capitalization 10.0 billion JPY(FY2023/9)• EPS 60 JPY, PER 30• M&A
Financial Results for the Fiscal Year 2022

Sustainability• ESG, SDGs
• Corporate
governance223.6) 1 Promote improvement of corporate value ⅱ
Proactively pursue M&A, capital and business alliances, and the development of collaborative relationships
Expanding sales channels, orders, products, and engineers for further growthFeb. 2020

Capital and businessalliance

ITFOR Inc.

Utilize engineers from both companies to secure personnel for development projects. Develop new customers.

Mar.2020

Core partner

Meiji Yasuda Life Insurance Company,
Meiji Yasuda System Technology Limited

Build strong partnerships over the future and maintain development engineers for a long-term.

Dec. 2020

Collaboration

Logi Revo Co., Ltd.
Office FA.com Co., Ltd.

Propose new logistics business offering comprehensive services ranging from WMS installation to automated warehouses and operation /maintenance.

Mar.2021

Capital and businessalliance

Souken-sys Inc.

Receive the supply of development personnel and strengthen orders for development projects in the areas that Souken-sys specializes in.

Jul. 2021

Capital and businessalliance

Canon IT Solutions Inc.

Expand development projects, support orders, and train engineers using a low-code development tool WebPerformer.

Sep. 2021

Business alliance

CONEXIO Corporation

Develop two-stop business through collaboration with different industries. Aim to expand the customer base.

Oct. 2021

Share acquisition

Zeroichi Production Co., Ltd.

Acquired 70% of Zeroichi Production’s outstanding shares to expand the trading base in contract development for the construction sector
and the MVNO business.

Nov.2021

Business alliance

Ascentech K.K.

Sell, install, and maintain solutions for building telework environment. through mutual cooperation.

Feb. 2022

Capital and Businessalliance

Ascentech K.K.

Collaborative development of a new hybrid VDI (virtual desktop) platform that can be freely configured for the cloud, on-premise,
Windows, and Linux

Jul. 2022

Equity investment

Souken-sys Inc.

Increase orders for development projects in the areas of Souken-sys’s specialty by receiving provided development personnel. Currently
holds 33.3% of the company’s total outstanding shares through additional investment.

Jul. 2022

Business alliance

Sakura Information Systems Co.,

Expand areas for collaboration such as finance/payment, public infrastructure/ energy, and IT infrastructure, share knowledge, andstrengthen our project capacity.

Sep. 2022

Business alliance

Sumitomo Mitsui Card Co., Ltd.

Meet needs for further improving efficiency of expense reports for companies through introducing SAP Concur and corporate credit cards.

Oct. 2022

Equity investment

BO STUDIO Inc.

Allow provision of comprehensive selection of services covering every step involved in web design (front-end, back-end, operation andmaintenance) to customers and strengthen DX support for public offices, local governments, and private corporations.

Oct. 2022

Equity investment

KOMSOFT Inc.

Further strengthen capacity for financial system development and develop customer base.

Oct. 2022

Business alliance

PB Systems, Inc.

Establish cooperative system for Citrix Cloud-related projects, including technical assistance, engineer training, etc.

Financial Results for the Fiscal Year 2022

233.6) 2 Expand Logistics Businesses
Increased rate of online shopping has expanded needs for advanced logistics warehouses
Warehouse Management System

realizes 3 smart aspects• Expand sales of SmartWMS by collaborating with logistics hardware
manufacturers• Store development for ordered SmartWMS• Develop SmartWMS for other industries, e.g., convenience stores, etc.
Manpower-saving,
paperless system• Improvement of operations atworksites with the use of handy
terminals• Elimination of paper from aseries of tasks in warehouses• Work with robots

Financial Results for the Fiscal Year 2022

Visualization of issues

Easy-to-operate system• Productivity improvement withadvanced analytical functions• Uniform operability to prevent
input errors• Optimization
warehouses• Search items can be freely set
by each person in chargeofstaffing

in• Improve the loading rate ofdelivery vehicles

243.6) 3 Expand AI Business
Expand AI Business by expanding the Work AI lineup
AI Remote Education Speak Analyzer
AI comparison of information with top performing models to provide feedback on
points needing improvement.

* Work AI is a general term
for industry-specific AI
solutions developed tosupport corporate DX byutilizing know-how in
integration for AI, RPA, etc.

AI automation of rough estimation of parts and materials Es Prophetter
Aiming at the automation and accuracy improvement of rough estimation of parts andmaterials in the construction industry.
Interactive AI chatbot provides solutions FAQ, searches for documents Chat Document
Simple-to-use process of sending text to chatbot from browser or chat tool, allowing
sought-after information to be instantly retrieved.

Promote DX in various industries
Public infrastructure

Other industries
Distribution
Telecommunications

Construction
Financial Results for the Fiscal Year 2022

Finance

Logistics

Manufacturing

253.6) 4 Expand nearshore development
Nagasaki Development Center aims to maintain 100 employees in FY2024/9
Utilize nearshore bases to acquire highly competent personnel andprovide solutions for labor shortages
Nearshore utilization• Expand nearshore development system by accepting orders for out-of-office projects• Promote transition from dispatch and residential styles while standardizing nearshoredevelopment• Build secure remote development environments over short periods
Personnel acquisition• Recruiting and training highly competent engineers
who seek local employment
Recruiting from local universities
Recruiting U-turn and I-turn personnel
Financial Results for the Fiscal Year 2022

263.6) 5 Establish business foundation
Establishing a business foundation for stable development
into the future as a listed company

Business Systems SI• Expand into the financial sector by accumulating business knowledge
and training highly-skilled engineers• New development into the logistics sector• Expand as stock business by extending contracts for system
maintenance and development, operation, etc.
• Promote projects in collaboration with business alliance partners

Infrastructure Services• Coordinate with Business Systems SI for total orders• Expand orders for cloud-related projects

Connected Systems• Strengthen connected technology for IoT and ICT in addition to
specialization in automobiles and medical equipment
Financial Results for the Fiscal Year 2022▶▶▶ Service line composition

Service lines that establish
the business foundation
Business Systems
SI
Infrastructure
Services
Connected Systems+
Service line that accelerates
business expansion andincreases added value
Solutions/Products,
etc.
273.6) 6 Expand Solutions Business
Expanding the Solutions Business to accelerate business expansion
and increase added value
Net sales composition ratio target 15.0%(FY2022/9 results: 12.7%)

Expansion strategy
Provide DX centered on IT Re-Engineering Service solutions from Needs Well
Coordinating peripheral systems based on ERP
•
•
•
•
•

Improve productivity by introducing electronic contracts and approvals
Paperless accounting department in preparation for the Revised Preservation of Electronic Records Act
Improve productivity by making general affairs and year-end tax adjustment work paperless
Build a secure telework environment
Improve business efficiency by centralizing user authentication for multiple systems

Provide‘N-navi’, related with SAP Concur

Provide collaboration solutions RPA tools and business chat tools ‘Chat Director’
Provide IT help-desk service ‘N-help‘
Launch development of new solutions• Promote QOL for senior citizens in cooperation with local governments with ‘Frailty Prevention‘• Integrate SAP Concur and core systems with ‘N-Bridge Series‘
Financial Results for the Fiscal Year 2022

283.6) 7 Increase direct sales to end users
Stabilize orders and improve profitability,
maintain and expand end user direct sales ratio to over 60%
Maintain and expand existing users• Secure repeat customers• Train highly skilled engineers and expand the scope of expertise
sectors• Cultivate new sectors of expertise

End usercomposition ratio

Cultivate new users• Horizontal expansion by introducing Needs Well’s development results andbusiness know-how to new companies that are similar to existing users

65.3%

・Develop with various solution products

Jul-05Over
60%

FutureDevelop new users by expanding solutions business
・Focus on Solution Business with a high ratio of sales to end users
Financial Results for the Fiscal Year 202229

1. 2022/9 Financial report summary

2. 2023/9 Results forecast

3. Growth strategy

4. Reference4.1) Company profile
As of September,2021
Company Name

Needs Well Inc.

Representative

President and CEO

Established

October 1, 1986

Stock Listing

Tokyo Stock Exchange, Prime Market (3992)

Paid-in Capital

908 million JPY

Net sales

6,730 million JPY

Number of
Employees

570

Fiscal year end

SeptemberHead Office

13F, New Otani Garden Court, 4-1 Kioi-cho, Chiyoda-ku, Tokyo, 102-0094 Japan

Office- Shinjuku Office : 5F, South Tower, 13-15 Tomihisa-cho, Shinjuku-ku, Tokyo, 162-0067 Japan- Nagasaki Office: 5F, Meijiyasudaseimei Nagasakikozenmachi building, 2-21 Kozen-machi, Nagasaki-shi, Nagasaki, 850-0032
Japan

Qualification

Worker dispatch business

Board of Directors
As ofNovember 30,2022

President and CEO
Executive Director
Director
Director
Director
Director
Director

NeedsWell GroupAs of
October 4,2022

Kozo Funatsu

TEL: +81-3-6265-6763 FAX: +81-3-6265-6764 URL: https://www.needswell.com

ISO27001 (ISMS) Certified
Kozo Funatsu
Nobumasa Goto
Keiho Akiyama
Hajime Matsuoka
Hiroki Yanagawa (E) (I)
Hideaki Sakaue (E) (I)
Mamoru Yasuoka (E) (I),Privacy markISO9001 (QMS) Certified

Audit & Supervisory Board Member Kazuhiko Kato
Audit & Supervisory Board Member Kotaro Niwa (E) (I)
Audit & Supervisory Board Member Shigeru Sato (E) (I)E ：External officer
I ：Independent officer■ Consolidated subsidiaries Zeroichi Production Co., Ltd. (Head Office: Nasushiobara-shi, Tochigi President and CEO: Hiroyuki Waki)
BO STUDIO Inc. (Head Office: Shibuya-ku, Tokyo President and CEO: Keiho Akiyama)
KOMSOFT Inc. (Head Office: Toshima-ku, Tokyo President and CEO: Nobumasa Goto)■ Equity-method affiliate
Souken-sys Inc. (Head Office: Shinjuku-ku, Tokyo President and CEO: Tamotsu Shimizu)

Financial Results for the Fiscal Year 2022314.2) Business fields
Needs Well provides total IT services through four services focused on
Business Systems SI for finance.

Financial Results for the Fiscal Year 2022

324.3) Business system diagram
Clients

Needs Well

Direct transaction*

End user

Systemintegrator

Manufacturer

Business
Systems SI

Subcontractor/supplier

Infrastructure
Services

Partnercompany

Connected
Systems

Supplier

Solutions/
Products,
etc.

Order
Provision of services/products, etc.

* High level of direct transactions with end users (approx. 65.3% of all sales)
Financial Results for the Fiscal Year 2022

334.4) 1 Initiatives directly linked to business
Aim for sustainable management through business strategies thatincorporate the perspectives of SDGｓ, ESG, and CSR
Nearshore Development Promotion: Nagasaki Development Center to maintain 100 employees
by 2024
Promote development by committing to QCD (quality, cost, and delivery) through remote development system that utilizes
nearshore bases.
Aim to maintain 100 employees at the Nagasaki Development Center by 2024 and contribute to prosperous urban development
through the development of an industrial foundation, technological innovation, and creating employment opportunities byutilizing highly competent local human resources.
Certified as the first registered business operator of the Nagasaki Prefecture SDGs Registration System.

Participated in the "SDGs Public-Private Partnership Platform for Regional Revitalization" established by the Cabinet Office.
Participated in the Cabinet Office’s “Public-Private Partnership Platform for Regional Revitalization SDGs”

Development of new solutions to assist DX
Assist client companies in realizing and promoting DX to overcome the "2025 Digital Cliff" by building platforms using AI
technology, providing systems, analyzing data, saving labor through RPA integration, etc.
Contribute to building the industrial foundation of a digital society.

Collaboration with partner companies

Promote partnerships with contractors and suppliers and aim to establish a structure for continuing to develop together over along period of time.
Financial Results for the Fiscal Year 2022

344.4) 2 Initiatives supported by systems and activities
Work style reform & personnel development• Promote a healthy work-life balance by incentive dates for paid leave, Premium Friday (leaving work early on the last Friday ofthe month), reducing overtime work, etc.
• Expand selection of employees eligible for remote work
• System for encouraging skill improvement and motivation

Increase ratio of female employees and managers

Target female manager ratio: 30%, target female employee ratio: 30%

AI education for students

Arrange AI programming experiences and 5 day/3 week internships for students
Conduct programming classes on apps for submitting electronic applications and creating interactive AI chatbots, WinActor (RPA) to improve efficiency
of school operations, taste data analysis, etc. (2020 - 2022)

Donate to assistance programs for repaying student loans

Contribute to projects by Nagasaki Prefecture for assisting young adults in the repayment of their student loans
Develop leaders who will establish themselves and play central roles in the local community

Support for V-Varen Nagasaki of the Soccer J League

Concluded a sponsorship agreement to support the promotion of sports culture and revitalization of the local community
Please view the following link for other initiatives and more information:
https://www.needswell.com/ir/sdgs
Financial Results for the Fiscal Year 2022

354.5) Business results 1
Net sales

2016

2019

2020

2021

2022

１Q

121

110

92

136

171

3,253

２Q

255

266

267

306

362

4,972

３Q

387

354

375

337

434

528

6,730

Total

443

476

508

492

580

690

2019

2020

2021

2022

１Q

1,217

1,341

1,418

1,348

1,562

２Q

2,470

2,724

2,809

2,818

3,739

4,097

4,078

4,262

3,801

３Q
4,586

5,063

5,140

5,517

5,364

Ordinary profit

2016

408

2017

ProfitUnit : million yen

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

121

110

92

130

181

１Q

82

76

59

89

125

２Q

255

266

267

301

374

２Q

174

185

179

206

259

382

343

370

339

437

560

３Q

248

236

255

231

306

388

426

467

505

514

582

724

Total

287

325

347

347

421

499

Total

405

Financial Results for the Fiscal Year 2022

2016

256

2017

Unit : million yen

１Q
３Q

2017

5,752

2016

Unit : million yen

2018

2018

Total

2017

Operating profit

Unit : million yen

364.5) Business results 2
Profit per share

2016

2018

2019

2020

2021

2022

１Q

9.88

9.04

7.04

10.52

12.36

１Q

２Q

20.85

22.02

21.19

23.81

25.58

２Q

35.51

28.18

30.22

27.30

34.75

38.61

３Q

40.81

38.78

41.15

40.99

46.64

49.86

Total

３Q
Total

36.74

2017

ROE

Unit : Yen

2016

2018

2019

2020

2021

2022

2,220

2,478

2,692

3,000

２Q

2,507

2,764

2,771

3,466

2,062

2,772

2,629

2,956

2,438

2,697

2,688

2,997

Total

1,661

Financial Results for the Fiscal Year 2022

2017

2018

2019

2020

2021

2022

36.7

24.8

20.2

18.8

16.5

14.7

14.10

Net assets

Unit : million yen

１Q
３Q

2017

2016

* This index is updated every year

* Figures are after sprit adjusted as of May 12, 2017 ratio of 100 shares per share, as of Apr 1,
2018 ratio of 2 shares per share, as of Jan 1, 2019 ratio of 2 shares per share.

Total assets

Unit : %

2016

2018

2019

2020

2021

2022

4,376

１Q

1,480

1,697

1,918

2,236

3,383

4,388

２Q

1,573

1,809

2,040

2,628

3,435

3,876

4,547

３Q

1,042

1,635

1,878

2,105

2,871

3,452

4,360

4,608

Total

1,496

1,725

1,973

2,231

3,498

3,570

820

2017

Unit : million yen

374.5) Business results 3
Capital adequacy ratio

2016

2018

2019

2020

2021

2022

１Q

66.7

68.5

71.3

74.5

77.3

1Q

２Q

62.8

65.4

73.6

75.7

78.3

2Q

50.5

59.0

71.4

71.2

74.0

75.9

3Q

61.4

64.0

73.4

74.5

80.2

77.5

Total

３Q
Total

49.3

2017

Net assets per share

Unit : %Unit : Yen

2016

2017

2018

2019

2020

2021

2022

117.21179.63204.99232.63262.41

344.60361.99* Figures are after sprit adjusted as of May 12, 2017 ratio of 100 shares per share, as of Apr 1, 2018
ratio of 2 shares per share, as of Jan 1, 2019 ratio of 2 shares per share.

* 2Q is total of 1Q and 2Q* 3Q is total of 1Q to 3Q* This index is updated every year

Stock chart

Stock price : yen

800■VolumeVolume:shares■closing price

350000750

300000700

250000650

200000600

150000550500

100000

450

50000

400

'21/10/1'21/11/1

Financial Results for the Fiscal Year 2022

'21/12/1'22/1/1'22/2/1'22/3/1'22/4/1'22/5/1'22/6/1'22/7/1'22/8/1'22/9/1

038

• All statements described herein have been prepared by Needs Well based on the currently available
information.
• Actual results may differ from forecasts due to various factors in the future.

Corporate Communication Divisione-mail: ir-contact@needswell.com