Tokyo Stock Exchange 1st Section: Securities Code 3992

Needs Well Inc.

Financial Results
for the Third Quarter of Fiscal Year 2021
(October 1, 2020 – June 30, 2021)
August 5, 2021

1. 2021/9 3Q Financial report summary

2. 2021/9 Results forecast

3. Growth strategy

4. Reference

FY2021/9 3Q Financial Results21.1) Financial highlights①
Overcame the impact of COVID-19 by rapidly
developing the competency of new-graduate
employees and acquiring high-value-added projects,
achieved significantly higher profits year on year
Results and dividend forecasts were revised upward in June 2021
Steady progress toward increasing profit for

10 consecutive fiscal years
FY2021/9[Total] (October 1, 2020 ~ June 30, 2021)• Sales increased 4.5% YoY, gross profit increased 13.3% YoY• Ordinary profit increased 28.9% YoY, net profit increased 32.4% YoY[Third quarter] (April 1, 2021 ~ June 30, 2021)• Sales increased 13.8% YoY, gross profit increased 23.6% YoY• Ordinary profit increased 89.0% YoY, net profit increased 93.6% YoY
FY2021/9 3Q Financial Results31.1) Financial highlights②
5000

Year-on-year comparison

4000

+4.5%
YoY
4,078

4,262

1400
1200

+13.3%
YoY

1000

1,076

Total

800

950

+29.0%
YoY

600
400

337

200
0

0

1600
1600

500

434

+28.9%
YoY
339+32.4%
YoY

437
231

306

Gross profit
Operating profit
Ordinary profit
Net profit
Net sales■Total by FY2020/9 3Q (2019/10/1-2020/6/30) ■■■■■: Total by FY2021/9 3Q (2020/10/1-2021/6/30) Unit: million JPY

Year-on-year comparison

Third quarter

1500+13.8%
YoY

1400
1400

1,443

1200
1100
1000 0

400
350
300
250

1300
1,268

+23.6%
YoY

450

366
297

200
150
100
50
0

69

+82.9%
YoY+89.0%
YoY

127

135
71

+93.6%
YoY

51

100

Gross profit
Operating profit
Ordinary profit
Net profit
Net sales■FY2020/9 3Q (2020/4/1-2020/6/30) ■■■■■: FY2021/9 3Q (2021/4/1-2021/6/30) Unit: million JPY

FY2021/9 3Q Financial Results

4１．２) Tokyo Stock Exchange’s market restructuring

In consideration of the Tokyo Stock Exchange’s market restructuringin April 2022, Needs Well will enact medium- and long-term
measures in seeking to satisfy the criteria to list on the Prime Market* Although Needs Well does not currently satisfy the criteria for market
capitalization of tradable shares in the Prime Market, the Company plans torelease a “Plan for Compliance with Listing Criteria” upon consultation with theBoard of Directors and apply transitional measures to transition to the Prime
MarketStatus of compliance with criteria fortransition to Prime Market
As of July 2021

Number of tradable shares

CompliantMarket capitalization of
tradable shares

Non-compliant

Ratio of tradable shares

Compliant

Trading value

Compliant

FY2021/9 3Q Financial Results

Increase market capitalization by
improving corporate value① Performance (achieving the
Medium-Term Management Plan)② IR/PR③ Capital policy④ Sustainability51.3) Performance progression rate
Sales were strong for Business Systems SI orders fortelecommunications and the wide selection of high-value-added
projects available for Solutions/Products, etc.
Progression rate, 3Q performance (FY21/9 target)
Net sales

73.5%, +0.0pts

Business Systems SI

71.5%

Infrastructure Services

69.1%

Connected Systems

81.9%

Solutions/Products, etc.

96.3%

Operating profit

74.9%, +9.5pts

Ordinary profit

75.4%, +8.8pts

Net profit

74.8%, +8.5pts

Progress rates and year-on-year comparisons are calculated based on figures after the
upward revision of results.

Sales for telecommunications werestrong due to demand for revision ofprice plans for mobile phones.
In August 2021, started providing
logistics WMS that has been in R&D.
Development continued at a stablepace due to coordination between
Business Systems SI and
Solutions/Products, etc., for totalorders.
Development continued at a stablepace despite the remaining negative
impact of COVID-19.
Expanded solution lineup.
In particular, Needs Well’s uniquesolutions for the Concur series,
Speed EA and Invoice PA, remained
strong.
Focus on IT re-engineering for
supporting corporate DX.

[Reference] June 21, 2021, “Notice on Upward Revision of Results Forecast”
June 24, 2021, “Partial Correction of ‘Notice on Upward Revision of Results Forecast’ (Correction of numerical data, other information)”
FY2021/9 3Q Financial Results

61.4) Ordinary profit analysis
Ordinary profit increased 28.9% year on year with the significant
contribution of gross profit having increased 13.3% year on year due
to improved productivity and acquisition of high-value-added projects
Increase owing to temporary costs recorded due tospecial factors in FY20/9 (relocating head office, opening
Nagasaki Development Center, etc.) not being required in ■ Increase ■ Decrease
FY21/9

Unit: million JPY

YoY
Recruitment costs
decreased due tostrong results inrecruitment
Gross profit increased significantly withsuccessful measures to increase
productivity (rapidly developing
competency of new-graduate employees,
remote development, etc.) andacquisition of high-value-added projects

FY20/9 3Q Ordinary profit
FY2021/9 3Q Financial Results

Increase in otherexpenses involved
in improving
performance+28.9%

Personnel-related
expenses (salaries andbonuses for rewarding
efforts to improve
performance) increased

FY21/9 3Q Ordinary profit
71.5) Profit & loss statement
Ordinary profit ratio remained at a high level of 10.3%（Up 2.0 pts year-on-year)
FY2020/9 3Q Financial Results

Unit: million JPY
Net sales

ResultNet Sales

FY2021/9 3Q Financial Results

ResultNet Sales

Year-on-year

4,078

-

4,262

-

104.5%

Business Systems SI

※

※

3,260

76.5%

※

Infrastructure Services

※

※

424

10.0%

※

Connected Systems

※

※

147

3.5%

※

Solutions/Products, etc.

※

※

429

10.1%

※

Gross profit

950

23.3%

1,076

25.3%

113.3%

SG&A expenses

613

15.0%

642

15.1%

104.7%

Temporary cost (investment)

24

0.6%

0

0.0%

0.0%

Others

588

14.4%

642

15.1%

109.1%

Operating profit

337

8.3%

434

10.2%

129.0%

Non-operating profit

2

0.1%

11

0.3%

533.4%

Non-operating expenses

0

0.0%

8

0.2%

5621.6%

Ordinary profit

339

8.3%

437

10.3%

128.9%Net profit

231

5.7%

306

7.2%

132.4%* From the fiscal year 2021/9, Needs Well reorganized all service lines and launched the development of “Connected Systems” tostrengthen our connected technology. As such, year-on-year comparisons for each service line are not available and therefore
have not been included.
FY2021/9 3Q Financial Results81.6) Balance sheet*Selection of significant entries only

Unit: million JPY

FY2020/9

FY2021/9 3Q

ResultResultYear-on-year

AssetsCash and deposits

1,780

2,403

623

Accounts receivable

689

870

180

Prepaid expenses

34

34

0

Total current assets

2,553

3,331

778

Software

58

59

1

Investment securities

83

109

25

Defferred tax assets

97

165

68

Leasehold and guarantee deposits

85

84

-1

Insurance funds

76

76

0

Equity ratio at 74.0%
remain unchanged from theprevious year
Assets

444

545

100

Current
assets,

2,997

3,876

879

101

142

40

2,553

Accounts payable - trade
Accounts payable - others

137

153

15

Accrued corporate tax, etc.

107

127

19

Accrued consumption taxes

106

81

-24

Provision for bonuses

265

138

-126

765

1,004

238

0

0

0

765

1,004

238

Share capital

415

651

236

Legal capital surplus

271

508

236

Retained earnings brought
forwardValuation difference on
available-for-sale securities

1,522

1,692

170

22

16

-6

Total net assets

2,231

2,871

640

Total liabilities and net assets

2,997

3,876

879

Total non-current assets
Total assets

Liabilities

Total current liabilities
Total non-current liabilities
Total liabilities
EquityFY2021/9 3Q Financial Results

End of FY2020/9

Noncurrent
assets,444

Unit: million JPY
Current
assets,3,331

Noncurrent
assets,545

End of FY2021/9 3Q

Liabilities & Net Assets

Unit: million JPY

Current liabilities
Current liabilities
765
Net assets,
2,231

End of FY2020/9

1004
Net assets,
2,871

End of FY2021/9 3Q

91. 2021/9 3Q Financial report summary

2. 2021/9 Results forecast

3. Growth strategy

4. Reference

FY2021/9 3Q Financial Results

102.1) Results forecast

On top of the initial announcement of increased sales and a forecast ofincreased profit for 10 consecutive fiscal years made at the beginning of
the fiscal year (November 2020), profits were revised further upward (June2021) due to increased productivity from rapidly developing the competency of
new-graduate employees and the acquisition of high-value-added projects
Business Systems SI
Infrastructure Services
Unit: million JPY (against net sales composition ratio)

Connected Systems*
180(3.1%)

Net sales
FY2021/9 4,559(78.6%)
forecast 0
1,000
FY2021/9 (forecast)

Solutions/Products, etc.
445(7.7%)614(10.6%)

Total 5,800

Up 8.1% YoY
2,000

3,000

4,000

5,000

6,000

Unit: million JPY （YoY)

Amount revised upward in FY2021/9

Operating… 537

43 Total 580（Up17.7％）Operating profit margin 10.0%

Ordinary… 537

43 Total 580（Up12.8％）Ordinary profit margin 10.0%

Net profit

370
0

Total 410（Up17.8％）Net profit ratio 7.1%

39
100

200

300

400

500

600

[Reference] June 21, 2021, “Notice on Upward Revision of Results Forecast”
June 24, 2021, “Partial Correction of ‘Notice on Upward Revision of Results Forecast’ (Correction of numerical data, other information)”
FY2021/9 3Q Financial Results

112.2) Dividends and shareholder returns
Dividend per share: ２３.00 JPY/share*1
Plan to increase
dividends for 3
25.00
consecutive
fiscal years
20.00＋７ JPY (YoY), plan for substantial returns

Regular dividend: 18 JPY

50.1 %*2

35th anniversarycommemorative dividend: 5 JPY

23.00 JPY

39.0
15.00

10.00

30.6

32.2

12.50

12.50

2 JPY

2.5 JPY
increase

FY2017/9

FY2018/9

35
25

13.50

1 JPY
increase

45

16.00

32.8

5.00

0.00

55

increase+
5 JPY

commemorative
dividend

155-5FY2019/9

Dividend (JPY)FY2020/9

FY2021/9 (forecast)

Payout ratio (%)*1 The dividend for the fiscal year 2021/9 is the dividend forecast after revision. [Reference] June 28, 2021, “Notice on Revision of Dividend Forecast (Dividend
Increase/Commemorative Dividend)”*2 The dividend payout ratio for the fiscal year 2021/9 is calculated using the dividend forecast after revision, assuming that stock acquisition rights will not be
exercised after the end of the third quarter under review (June 30, 2021).
*3 Needs Well conducted stock splits on May 12, 2017 at a ratio of 100 shares per share, on April 1, 2018 at a ratio of 2 shares per share, and on January 1, 2019at a ratio of 2 shares per share. Past annual dividends per share have been retrospectively adjusted based on these stock splits.
FY2021/9 3Q Financial Results12

1. 2021/9 3Q Financial report summary

2. 2021/9 Results forecast

3. Growth strategy

4. Reference

FY2021/9 3Q Financial Results

133.1) Management philosophy

Contributing Broadly to the Economy andSociety

FY2021/9 3Q Financial Results

143.2) Growth track
Oct 2020 Started Logistics, Connected Businesses
Net sales
Number of personnel

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 carriersApr 2005 Started transaction with leading hotels
Apr 1998 Started transaction with leading
insurance companies

543

employees
by end of
FY2020Aug 1992 Started developing
Business System SI
EstablishedOct 1986
Started business consulting
FY2021/9 3Q Financial Results

Bankruptcy of Lehman
Brothers

COVID-19
Pandemic

FY2021/9 forecast
153.3) Medium-Term Basic Policy

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

FY2021/9 3Q Financial Results

163.4) Our three strengths
Capacity for
financial systemdevelopment

Financial sector accounts for 50% of net sales inmain 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

High level of direct transactions with end
users such as life insurance companies,
leading hotels, telecommunications
carriers, etc., composing over 50% of
Proficiency insales.

direct sales to
end users

Ability toprovidesolutions

FY2021/9 3Q Financial Results

Capacity for
financialsystemdevelopment

Our
three
strengths

Ability toprovidesolutions

Provides solution services optimized foreach customer’s business objectives
through 5G, AI, RPA, remote work, etc.

173.5) 1 Performance targets
FY2023/9

10.0

Net
sales

1.0

Ordinary
profitbillion JPY

billion JPY

Billion JPY
10.0

CAGR (compound annual growth rate) 10.0

23.1

Billion JPY
1.0

%

0.5

0.0

0.0

2021

Existing businesses
FY2021/9 3Q Financial Results

24.8

%

5.0

2020

CAGR (compound annual growth rate) 1.0

2022
M&A

2023

2020

2021

2022

Existing businesses

2023

M&A
18

3.5) 2 Promotion policies: Sales growthMarket scale (our forecast)Logistics IoT software solutions market(WMS, etc.)2018

123.0 bil. JPY

66.7 bil. JPY

Smart cities market

2022

990.0 bil. JPY

2018

460.0 bil. JPY

AI’s major markets*

2023

64.0 bil. JPY

2018

19.6 bil. JPY

Logistics industry is facing a serious labor shortageas the selection of diversifying needs continues toincrease. There is urgent demand for immediate
investment in streamlining, improving quality, andreducing environmental burden through the use of
AI, IoT, etc.

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

+1.2

+0.3
+0.9

FY2023/9

4.7

+2.3

M&A

* AI’s major markets: Image recognition, speech recognition, speech synthesis, language
analysis, search and retrieval, translation

billion JPY+
billion JPY

Demand for investment is high due to structuralreform for DX.
Introduce unique and differentiated products withintegration functions that utilize AI and RPA.

M&A

10.0

Sales growth

Solutions Business

Expand the scale of existing technologies andstrengthen/introduce new technologies. Focus
on logistics, connected functionality, AI, IoT, web,etc.

FY2021/9 3Q Financial Results

Unit: billion JPY

Existing businesses

2025

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

2.4 bil. JPY
2.3 bil. JPY

5.3

billion JPY
FY2020/9

193.6) Growth strategy
Promote improvement of corporate value

1

Launch Logistics Businesses

2

Focus
points6
7

FY2021/9 3Q Financial Results

3

Expand AI Business4

Expand nearshore development

5

Establish business foundation
Expand Solutions Business

Increase direct sales to end users

203.6)-1 Promote improvement of corporate value

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• Public offering• Issuing newshares• M&A

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 (FY2022/9)• EPS 60 JPY, PER 30
FY2021/9 3Q Financial Results

Sustainability• ESG, SDGs
• Corporate
governance213.6)-2 Launch Logistics Businesses
Logistics ▶▶▶ Facing labor shortages as the needs of the Internet society

continue to increase → Increased demand for system development
Smart warehouses made possible by apaperless design which doesn’t require picklists

SmartWMS

Advanced analysis functions• Indicators for work volume equalization and optimal staff
distribution• Optimal locations for improve efficiency of picking operations

Sales
targets

Launched Aug. 2021

FY2022/9
FY2023/9
FY2024/9

0.15 billion JPY
0.20 billion JPY
0.25 billion JPY

Needs Well Inc.

Office FA.com Co., Ltd.

Logi-Revo Co., Ltd.

SmartWMS

Automated warehouses, WCS
Installation support formaterial handling equipment
Internal warehouse design

Logistics business consulting
Overall summary of customer
installations
Warehouse design andoperation consulting

Customer installation/
maintenance

Leveraging the strengths of these three companies

to quickly accommodate requests ranging from WMS installation toautomated warehouses and operation/maintenance
FY2021/9 3Q Financial Results

223.6)-3 Expand AI Business
Expand AI Business by expanding thelineup

AI Remote Education

Quantitative visualization of business talks with numerical values
and graphs.
AI comparison of information with top-performing models toprovide feedback on points needing improvement.
Utilizing know-how in integration for AI, AI-OCR, RPA, etc.

to provide solutions for supporting corporate DX

Promote DX in various industries
Public infrastructure

Distribution

Finance
Construction
FY2021/9 3Q Financial Results

Other industries

Telecommunications
Logistics

Manufacturing

233.6)-4 Expand nearshore development
Nagasaki Development Center aims to maintain
100 employees in FY2024/9
Utilize nearshore bases to acquire highly competentpersonnel and provide solutions for labor shortages
Personnel acquisition• Recruiting and training highly competentengineers who seek local employment

Recruiting from local universities
Recruiting U-turn and I-turn personnel
Nearshore utilization• Expand nearshore development system by
accepting orders for out-of-office projects• Promote transition from dispatch andresidential styles while standardizingnearshore development
FY2021/9 3Q Financial Results

243.6)-5 Establish business foundation
Establishing a business foundation for stabledevelopment into the future as a listed company
Business Systems SI• Expand into the financial sector byaccumulating business knowledge andtraining highly-skilled engineers• New development into the logistics sector

Infrastructure Services• Coordinate with Business Systems SI for
total orders

Connected Systems• Strengthen connected technology inaddition to specialization in
automobiles and medical equipment
FY2021/9 3Q Financial Results▶▶▶ 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.
253.6)-6 Expand Solutions Business
Expanding the Solutions Business to accelerate businessexpansion and increase added value
Net sales composition ratio target
15.0% in FY2023/9 (FY2020/9 results: 5.6%)
Expansion strategy

Invoiceprocessing

Coordinating peripheral systems
based on ERP•

Digitization of paper documents, going paperless•Prevent transcription mistakes/redundant entries
by coordinating data•

Reduce manual data entry by utilizing RPA

ProvideFY2021/9 3Q Financial Results

Openingclientaccounts

Expensecalculation

Provide DX centered on
solutions from Needs Well

Personnel
management

Management accounting/financial accounting
Cost and income balance/
liabilities and receivables
Finances and capital/
fixed assets
Salary project balance
information

Attendance
management

Project
production
control(for IT
contractors)

Contracts
Price quotes
Ordersfor issues related to the 2025 Digital Cliff

263.6)-7 Increase direct sales to end users
Stabilize orders and improve profitability,
maintain and expand end user direct sales ratio to over 50%
Maintain and expand existing users• Secure repeat customers• Train highly skilled engineers and expand thescope of expertise sectors• Cultivate new sectors of expertise

Cultivate new users• Horizontal expansion by introducing Needs Well’sdevelopment results and business know-how to
new companies that are similar to existing users

End user composition ratio

60%
55%

2020

FutureExpand Solutions Business
・Focus on Solution Business with a high ratio of sales to end users
FY2021/9 3Q Financial Results

273.7) 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 tomaintain 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 toprosperous urban development through the development of an industrial foundation, technologicalinnovation, and creating employment opportunities by utilizing highly competent local human resources.

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 todevelop together over a long period of time.
Feb. 2020:
Entered into capital and business alliance agreement with ITFOR Inc.
Mar. 2020: Entered into core partner agreement with Meiji Yasuda Life Insurance Company and Meiji
Yasuda System Technology Limited
Dec. 2020: Started collaborating in logistics sector with Logi-Revo Co., Ltd. and Office FA.com Co., Ltd.
Mar. 2021: Entered into capital and business alliance agreement with Souken-sys Inc.
Jul. 2021:
Entered into capital and business alliance agreement with Canon IT Solutions Inc.
FY2021/9 3Q Financial Results

283.7) 2 Initiatives supported by systems and activities
Work style reform & personnel development• Incentive dates for paid leave, Premium Friday, overtime target of 20 hours• 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 days/3 weeks internships for students
Conduct programming classes on apps for submitting electronic applications and creatinginteractive AI chatbots (2020)

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 andrevitalization of the local community
Please view the following link for other initiatives and more information:
https://www.needswell.com/ir/sdgs
FY2021/9 3Q Financial Results29

1. 2021/9 3Q Financial report summary

2. 2021/9 Results forecast

3. Growth strategy

4. Reference

FY2021/9 3Q Financial Results

30Company profile
Company Name

Needs Well Inc

Head 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

Contact

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

Representative

President and CEO

Established

October 1, 1986

Stock Listing

Tokyo Stock Exchange, 1st Section (3992)

Paid-in Capital

651 million JPY
as of June, 2021

Net sales

5,364 million JPY as of September, 2020

Number of Employees

565 as of April, 2021

Qualification

Worker dispatch businessPrivacy mark

Board of Directors
as of December, 2020

President and CEO
Kozo Funatsu
Senior Managing Director Nobumasa Goto
Executive Director
Takeshi Tsukada
Director
Hiromi Kimura
Director
Keiho Akiyama
Director
Kazuhiro Shinohara
Director
Hiroki Yanagawa
E
I
Director
Hideaki Sakaue
E
I

Kozo Funatsu

ISO27001 (ISMS) Certified
ISO9001 (QMS) Certified
Audit & Supervisory
Board Member Kazuhiko Kato
Audit & Supervisory
Board Member Kotaro Niwa
Audit & Supervisory
Board Member Mamoru Yasuoka

E

I

E

I

E ：External officer
I ：Independent officer
FY2021/9 3Q Financial Results

31

Business fields
Needs Well provides total IT services through four services focused on
Business Systems SI for finance.
Finance

Automobiles/
medical devices/IoT
Connected Systems

Business Systems SI

Solution

Solutions BusinessIT platforms

AI

Infrastructure Services

Solutions Business

Web

Distribution/service

Business Systems SI

Business Systems SI

Social infrastructure

DX

Business Systems SI

Business Systems SI

Logistics Business Systems SI
FY2021/9 3Q Financial Results

Telecommunications

Business Systems SI

32

Business system diagram
Clients

Direct transaction*

End user

Systemintegrator

Manufacturer

Needs Well

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. 55% of all sales)
FY2021/9 3Q Financial Results

33

Business results ①
Net sales

2016

2017

2019

2020

2021

１Q

121

110

92

136

2,818

２Q

255

266

267

306

4,262

３Q

387

354

375

337

434

443

476

508

492

2019

2020

2021

１Q

1,217

1,341

1,418

1,348

２Q

2,470

2,724

2,809

３Q

3,801

3,739

4,097

4,078

total 4,586

5,063

5,140

5,517

5,364

Ordinary profit

total

2020

2021

１Q

82

76

59

89

301

２Q

174

185

179

206

437

３Q

248

236

255

231

306

287

325

347

347

2021

１Q

121

110

92

130

２Q

255

266

267

382

343

370

339

426

467

505

514

FY2021/9 3Q Financial Results

2016

total

256

2017

Unit : million yen

2019

2020

405

Profit

2018

2019

total

408

2017

Unit : million yen

2018

３Q

2017

2016

Unit : million yen

2018

2018

2016

Operating profit

Unit : million yen

34

Business results ②
Profit per share

2016

2017

ROE

unit：Yen

2018

2019

2020

2021

１Q

9.88

9.04

7.04

10.52

１Q

２Q

20.85

22.02

21.19

23.81

２Q

45.83

３Q

３Q

35.51

28.18

30.22

27.30

total 36.74

40.81

38.78

41.15

40.99

total

* 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

2016

2017

2019

2020

2021

１Q

2,220

2,478

2,692

3,000

２Q

2,507

2,764

2,771

３Q

2,062

2,772

2,629

2,956

total 1,661

2,438

2,697

2,688

2,997

FY2021/9 3Q Financial Results

2016

2017

2018

2019

2020

36.7

24.8

20.2

18.8

16.5

2021

* This index is updated every year

Net assets

Unit：million Yen

2018

unit：%

2016

2018

2019

2020

2021

１Q

1,480

1,697

1,918

2,236

3,466

２Q

1,573

1,809

2,040

2,628

3,876

３Q

1,042

1,635

1,878

2,105

2,871

1,496

1,725

1,973

2,231

total

820

2017

Unit：million Yen

35

Business results ③
Capital adequacy ratio

2016

2016

2018

2019

2020

2021

１Q

66.7

68.5

71.3

74.5

１Q

２Q

62.8

65.4

73.6

75.7

２Q

50.5

59.0

71.4

71.2

74.0

３Q

61.4

64.0

73.4

74.5

３Q
total

49.3

2017

Net assets per share

unit：%

2017

2018

2019

unit：Yen

2020

2021

total 117.21 179.63 204.99 232.63 262.41* 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 price：yen

1100

1000
900
800

700
600

Stock chart■volume■closing pricevolume：shares

600,000
500,000
400,000
300,000
200,000

500

100,000

400

0

FY2021/9 3Q Financial Results36• 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