Tokyo Stock Exchange Prime Market: Securities Code 3992

Needs Well Inc.

Financial Results
for the Third Quarter of Fiscal Year 2022
(October 1, 2021 – June 30, 2022)
August 5, 2022

1. 2022/9 3Q Financial report summary

2. 2022/9 Results forecast

3. Growth strategy

4. Reference1.1) Financial highlights 1
Significant increase in both net sales and profit year on
year, showing a strong trend of expansion•

Expanded sales channels and reinforced the customer base through active capital and business alliances andbusiness alliances•

Expansion in telecommunications and new orders for installation of large-sized VDIs contributed to sales growth•

The Solutions Business gave momentum to our growth, driven by a paperless work environment, telework, andthe revised Preservation of Electronic Records Act

Net sales

4,972

Ordinary profit

Net profit
Financial Results for the Third Quarter of Fiscal Year 2022

560

388

million JPY

million JPY

million JPY

YoY +

YoY +

YoY +

16.7

28.2

26.7

%

Ordinary profit margin
%

11.3

%

Net profit ratio
%

7.8

%

3

1.1) Financial highlights 2
Quarterly net sales and ordinary profit in FY2022/9
hit record highs in 1Q, 2Q, and 3Q
Both net sales and ordinary profit are progressing faster than forecasts[Ordinary profit by quarter][Net sales by quarter]
7,000
6,000
5,000

700

Unit: million JPY
Total

Total

Total

Total

5,517

5,364

5,140
1,401

1,420

1,285

5,752

2,000

1,268

1,253

1,373

1,268

6,700
(forecast)

Unit: million JPY
Total

600
500

1,490
1,718

1,391

1,470

1,341

1,418

1,348

1,690

467

123

300

88

145

134

698

(forecast)

186

135
104

71

155

121

110

92

FY2022/9

FY2018/9

FY2019/9

FY2020/9

4Q

1Q

0

(forecast)

Total

175

133

1,562

582

138

514

505

Total

400

200

Total

Total

1,443

1,382

1,000

1,217

1,727
(forecast)

4,000
3,000

Total

174

193
170

100

130

181

0
FY2018/9

1Q

FY2019/9

FY2020/9

2Q

Financial Results for the Third Quarter of Fiscal Year 2022

FY2021/9

3Q

2Q

FY2021/9

3Q

FY2022/9

4Q

41.1) Financial highlights 3
Medium-Term Management Plan Targets for FY2023/9

Net sales: 10.0 billion JPY Ordinary profit: 1.0 billion JPY
Present
situation>

Now

While existing businesses are steadily expanding, we are facing issues in thepace of concluding M&A contracts
Breakdown of performance targets of the Medium-Term Management Plan (FY2023/9)
Existing businesses:
7.7 billion JPY
FY2022 (forecast) Existing businesses: 6.7 billion JPY + M&A: 0 billion JPY

FY2021 (results) Existing businesses: 5.7 billion JPY + M&A: 0 billion JPY

M&A:
2.3 billion JPY

Net sales
Total:
10.0 billion JPY

Amountremaining:
3.3 billion JPY

FY2020 (results) Existing businesses: 5.3 billion JPY + M&A: 0 billion JPY

Measures& revisions

Expand the weight of existing businesses by revising the breakdown of sales targets for existing
businesses and M&A.
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-raisingthrough the issuance of new shares

Financial Results for the Third Quarter of Fiscal Year 202251.2) Performance progression rate

Progress of 74% in net sales and 80% in ordinary profit vs. upwardrevision, showing favorable progress

Business Systems SI: Strong performance in projects for telecommunication carriers, public
infrastructure, and life insurance companies
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* Progression rate/2Q performance (FY2022/9 target)
Net Sales[Breakdown of net sales]

Business Systems SI
Infrastructure Services(Unit: million JPY)

74.2% 4,972 (6,700)
72.9% 3,705 (5,080)
81.2% 520 (641)

Business Systems SI

Strong performance in core system testing fortelecommunication carriers, development of information
management systems and certificate issuing systems fora government agency, and agile software development
for DX of insurance companies, etc.

Infrastructure Services

Solutions/Products, etc.

78.7% 604 (767)

Sales were strong due to coordination between
Business System SI and Solutions/Products, etc., fortotal orders as well as VDIs and network equipment
construction orders, etc.

Operating profit

78.8% 528 (670)

Connected Systems

Ordinary profit

80.2% 560 (698)

Connected Systems

Net Profit

67.6% 142 (210)

80.2% 388 (484)

Performance achievement rates are calculated based on figures after the upwardrevision of results. [Reference] May. 9, 2022, “Notice on Upward Revision of Results
Forecast”
Financial Results for the Third Quarter of Fiscal Year 2022

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

Solutions/Products, etc.

Invoice PA, a unique solution for expense
management, and RPA remained strong. We aim tofurther expand the business in the next fiscal year
by introducing new solutions.

61.3) Ordinary profit analysis

Gross profit increased 10.3%
Ordinary profit increased 28.2%
year on year due to Increased orders and acquisition of highvalue-added projects■ Increase ■ Decrease Unit: million JPY
YoY+28.2%

Personnel-related
expenses, etc. (bonuses
for rewarding efforts toimprove performance),
increased

Gross profit increased
significantly with successful
measures to increase orders
and acquisition of highvalueadded projects

FY2021/9 3Q Ordinary profit
Financial Results for the Third Quarter of Fiscal Year 2022

Dividend income
increased, and HR
development support
subsidies decreased
and Stock allocation
expenses decreased

Other costs
increased
Recruitment costs
decreased

FY2022/9 3Q Ordinary profit
71.4） Profit & loss statement

Ordinary profit ratio was 11.3% (Up 1.0 pts YoY)
FY2021/9 3Q Financial Results

Unit: million JPY

ResultNet Sales

FY2022/9 3Q Financial Results

ResultNet Sales

Year-on-year

Net sales

4,262

-

4,972

-

116.7%

Business Systems SI

3,260

76.5%

3,705

74.5%

113.6%

Infrastructure Services

424

10.0%

520

10.5%

122.6%

Connected Systems

147

3.5%

142

2.9%

96.2%

Solutions/Products, etc.

429

10.1%

604

12.2%

140.8%

1,076

25.3%

1,188

23.9%

110.3%

SG&A expenses

642

15.1%

659

13.3%

102.7%

Operating profit

434

10.2%

528

10.6%

121.6%

Non-operating profit

11

0.3%

33

0.7%

301.0%

Non-operating expenses

8

0.2%

1

0.0%

17.2%

Ordinary profit

437

10.3%

560

11.3%

128.2%Net profit

306

7.2%

388

7.8%

126.7%

Gross profit

Financial Results for the Third Quarter of Fiscal Year 202281.5） Balance sheet*Selection of significant entries only
Unit: million JPY

Cash and deposits
Accounts receivable

Accounts receivable - trade and contract assets

Assets

Prepaid expenses
Other
Total current assets
Buildings, net
Software
Software in progress
Investment securities
Shares of subsidiaries and associates
Defferred tax assets
Leasehold and guarantee deposits
Insurance funds
Other
Total non-current assets
Total assets
Accounts payable - trade
Accounts payable - others
Accrued corporate tax, etc.
Accrued consumption taxes
Deposits received
Provision for bonuses
Other
Total current liabilities
Total non-current liabilities
Total liabilities
Share capital
Legal capital surplus
Retained earnings brought forward
Treasury shares
Liabilities
EquityValuation difference on available-for-sale securities

Total net assets
Total liabilities and net assets

Financial Results for the Third Quarter of Fiscal Year 2022

FY2021/9
Result
2,868
938
0
25
9
3,842
31
82
114
0
118
83
76
7
517
4,360
143
149
124
91
41
302
8
861
0
861
907
763
1,807
0
20
3,498
4,360

FY2022/9 3Q
Result Year-on-year
2,624
-244
0
-938
1,167
1,167
38
12
4
-4
3,834
-7
29
-2
86
4
261
45
119
82
76
10
712
4,547
209
161
89
82
43
164
343
1,094
0
1,094
908
764
1,962
-200
18
3,452
4,547

147
45
0
-1
0
2
194
187
66
12
-35
-9
1
-138
335
233
0
233
0
0
154
-199
-2
-45
187

Equity ratio at 75.9%
Remained at a high level despite being down
4.3 pts year on year due to the acquisition oftreasury shares

AssetsCurrent
assets,3,842

Noncurrent
assets,

Unit: million JPY
Current
assets,3,834

517
End of FY2021/09

Noncurrent
assets,712

End of FY2022/09 3Q

Liabilities & Net Assets
Current liabilities

Unit: million JPY
Current liabilities

861

1,094

Net assets,
3,498

Net assets,
3,452

End of FY 2021/09

End of FY 2022/09 3Q

9

1. 2022/9 3Q Financial report summary

2. 2022/9 Results forecast

3. Growth strategy

4. Reference2.1) Forecast
Second upward revision to this fiscal year's results due to the results of the capitaland business alliance, etc.
Forecast of increase in revenue for 2 consecutive fiscal years & increase in profit
for 11 consecutive fiscal years
Net sales FY2022/9 forecast

total

6,700

Solusions/Produts, etc
767(123.8%)

Business Systems SI 5,080(116.5%)

UP 16.5％ YoY

Infrastructure Services
580

Net sales FY2021/9
total

Unit: million JPY(YoY)

Connected Systems
210(110.2%)

Infrastructure Services
641(110.5%)

Connected Systems 191

Business Systems SI 4,360

5,752

0

1,000

Solusions/Produts, etc
620

2,000

3,000

4,000

5,000

6,000

7,000

670 (Up15.6％) Operating profit margin 10.0％580

Operating profit

Unit: million JPY(YoY)
FY 2022/9 forcast

698 (Up20.0％) Ordinary profit margin 10.4％
582

Ordinary profit

FY 2021/9

484 (Up15.0%) Net profit ratio 7.2%
421

Net profit
0

100

200

300

400

500

600

700

*Performance achievement rates are calculated based on figures after the upward revision of results. [Reference] May 9, 2022, “Notice on
Upward Revision of Results Forecast”*Performance achievement has been revised upon recording salary increases and provision for bonuses at higher levels than in previous years.
Financial Results for the Third Quarter of Fiscal Year 2022112.2) Dividends and shareholder returns

FY22/9 forecast Dividend per share: 20.00 JPY/share
2 JPY increase in regular dividend
Dividend increase for 4 consecutive fiscal years
Dividend (JPY; regular and commemorative dividends)
and payout ratio
49.3 ％
Payout ratio(Total 23.00)

32.2 ％

32.8 ％

18.00
16.00

13.50

12.50

Regulardividend+2.5 JPY

Regulardividend+1 JPYFY2018/9

Regulardividend+2 JPY

Regulardividend+2 JPY
Commemorative
dividend

Regular dividend(JPY)FY2020/9

Regulardividend

20.00
JPY

Commemorative
dividend-5 JPY+5 JPYFY2019/9

40.7 %

5.00

39.0 ％FY2021/9

35th anniversary commemorative dividend(JPY)FY2022/9(forcast)
Payout ratio (%)* 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 Third Quarter of Fiscal Year 202212

1. 2022/9 3Q Financial report summary

2. 2022/9 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 theeconomy and society with challenges and innovations.

Financial Results for the Third Quarter of Fiscal Year 2022

143.2) Growth track
Net sales
Number of personnel

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
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

552

employees
by end of
FY2021

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

Bankruptcy of Lehman
Brothers

COVID-19 Pandemic
FY2022/9 forecast

153.3) Medium-Term Basic Policy

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

Financial Results for the Third Quarter of Fiscal Year 2022

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

Capacity for
financialsystemdevelopment

Our
three
strengths

Ability toprovidesolutions

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

Financial Results for the Third Quarter of Fiscal Year 2022

173.5) 1 Performance targets

FY2023/9

10.0

Net
sales

1.0

Ordinary
profitbillion JPY

CAGR（compound annual growth rate）

２３．1

billion JPY

10.0

Billion JPY

%

2020

CAGR（compound annual growth rate）

２４．８

1.0

Billion JPY

%

2021

Existing businesses

2022
M&A

2023

2020

2021

2022

Existing businesses

2023

M&A

* Please refer to page 5 for an analysis of the present situation and measures & revisions to be implemented.
Financial Results for the Third Quarter of Fiscal Year 2022

183.5) 2 Promotion policies: Sales growthMarket scale (our forecast)Logistics IoT software solutions market(WMS, etc.)

80.0 bil. JPY

2020

Smart cities market

2023

1,200.0 bil. JPY

2020

680.0 bil. JPY

AI’s major markets*

2023

64.0 bil. JPY

2020

32.0 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.

Financial Results for the Third Quarter of Fiscal Year 2022

Unit: billion JPY

Existing businesses

103.0 bil. JPY

2023

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

Expand Logistics Businesses

2

Focus
points6
7

Financial Results for the Third Quarter of Fiscal Year 2022

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 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

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• M&A
Financial Results for the Third Quarter of Fiscal Year 2022

Sustainability• ESG, SDGs
• Corporate
governance213.6) 1 Promote improvement of corporate value ⅱ
Proactively pursue M&A, capital and business alliances, andthe development of collaborative relationships
Expanding sales channels, orders, products, and engineers for further growth
Feb.
2020

Capital andbusiness alliance

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 along-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 andbusiness allianceSouken-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 andbusiness alliance

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 basein 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 andBusiness alliance

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 byreceiving 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, and strengthen our project capacity.

Financial Results for the Third Quarter of Fiscal Year 2022

223.6) 2 Expand Logistics Businesses

With the growing needs of an Internet-based society,
IT resolves issues in logistics warehouses facing labor shortages
Warehouse Management System
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

realizes 3 smart aspects

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

Quickly accommodate requests ranging from WMS
installation to automated warehouses and operation /maintenance
Financial Results for the Third Quarter of Fiscal Year 2022

233.6) 3 Expand AI Business

Expand AI Business by expanding the Work AI lineup* Work AI is a general term for industry-specific AI solutions developed to support corporate DX
by utilizing know-how in integration for AI, RPA, etc.
AI Remote Education Speak Analyzer
Quantitative visualization of business talks with numerical values
and graphs.
AI comparison of information with top performing models toprovide feedback on points needing improvement.
AI automation of rough estimation of parts and materials

Es Prophetter
Aiming at the automation and accuracy improvement of roughestimation of parts and materials in the construction industry.

Promote DX in various industries
Public infrastructure

Other industries

Distribution

Finance
Construction
Financial Results for the Third Quarter of Fiscal Year 2022

Telecommunications
Logistics

Manufacturing

24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
Nearshore utilization• Expand nearshore development system by accepting orders forout-of-office projects• Promote transition from dispatch and residential styles while
standardizing nearshore development
Personnel acquisition• Recruiting and training highly competentengineers who seek local employment
Recruiting from local universities
Recruiting U-turn and I-turn personnel
Financial Results for the Third Quarter of Fiscal Year 2022

25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
Financial Results for the Third Quarter of 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.
26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 (FY2021/9 results: 10.8%)

Expansion strategy
Provide DX centered on

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 solutions FAQ and search for documents
Financial Results for the Third Quarter of Fiscal Year 2022

27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

End user composition ratio

60%

Cultivate new users

57.7%• Horizontal expansion by introducing Needs Well’sdevelopment results and business know-how to
new companies that are similar to existing users
・Develop with various solution products

2021

FutureDevelop new users by expanding solutions business
・Focus on Solution Business with a high ratio of sales to end users
Financial Results for the Third Quarter of Fiscal Year 202228

1. 2022/9 3Q Financial report summary

2. 2022/9 Results forecast

3. Growth strategy

4. Reference4.1) Company profile
As of September,2021
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, Prime Market (3992)

Paid-in Capital

907 million JPY

Net sales

5,752 million JPY

Number of Employees

582 As of April,2022

Qualification

Worker dispatch businessPrivacy mark

Board of Directors
As of April,2022

President and CEO
Kozo Funatsu
Executive Director
Nobumasa Goto
Director
Keiho Akiyama
Director
Kazuhiro Shinohara
Director
Hajime Matsuoka
Director
Hiroki Yanagawa
E
I
Director
Hideaki Sakaue
E
I
Director
Mamoru Yasuoka
E
I

Financial Results for the Third Quarter of Fiscal Year 2022

Kozo Funatsu

ISO27001 (ISMS) Certified
ISO9001 (QMS) Certified
Audit & Supervisory
Board Member Kazuhiko Kato
Audit & Supervisory
Board Member Kotaro Niwa
E
Audit & Supervisory
Board Member Shigeru SatoE

I
I

E ：External officer
I ：Independent officer
304.2) Business fields

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

Financial Results for the Third Quarter of Fiscal Year 2022314.3) 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. 57.7% of all sales)
Financial Results for the Third Quarter of Fiscal Year 2022

324.4) Personnel development
1 Strengthening new graduate hires
Hire new graduates and develop professional human resources
Aim to pass on corporate philosophy and culture and enhance engagement
Compared to 2016

Number of new graduate hires

about

70

6.9 times

60
50
40
30
20
10
0
2016

Financial Results for the Third Quarter of Fiscal Year 2022

2017

2018

2019

2020

2021

2022

33

4.4) Personnel development
2 Strengthening collaboration with partners
Strengthen cooperation with core partners to develop and aim for prosperous
coexistence
Shared strategies / long-term trust / stable transactions
900

Compared with FY2020/9 3Q

Number of partner resourcesabout

1.9 times

800

700
600

500
400

300
200
100
0
FY2020/9
3Q

Financial Results for the Third Quarter of Fiscal Year 2022

FY2021/9
1Q

FY2021/9
2Q

FY2021/9
3Q

FY2021/9
4Q

FY2022/9
1Q

FY2022/92Q

344.5) 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.
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 todevelop together over a long period of time.
Financial Results for the Third Quarter of Fiscal Year 2022

354.5) 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 of the 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 andrevitalization 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 Third Quarter of Fiscal Year 2022

364.6) Business results 1
Net sales

2016

2018

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

443

476

508

492

580

2018

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
total

2017

4,586

5,063

5,140

5,517

Operating profit Unit : million yen

Unit : million yen

5,364

2016

total

5,752

408

2017

Ordinary profit Unit : million yen

2016

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

287

325

347

347

421

total

405

Financial Results for the Third Quarter of Fiscal Year 2022

2016

total

256

2017

Unit : million yen

１Q
３Q

2017

Profit374.6) Business results 2
Profit per share

2016

unit：Yen

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

３Q
total

36.74

2017

ROE

通期

* 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

2019

2020

2021

36.7

24.8

20.2

18.8

16.5

14.7

2022

* This index is updated every year

Net assets

2021

2022

１Q

1,480

1,697

1,918

2,236

3,383

4,388

２Q

1,573

1,809

2,040

2,628

3,435

4,547

３Q

1,042

1,635

1,878

2,105

2,871

3,452

1,496

1,725

1,973

2,231

3,498

2022

１Q

2,220

2,478

2,692

3,000

4,376

２Q

2,507

2,764

2,771

3,466

2,062

2,772

2,629

2,956

3,876

2,438

2,697

2,688

2,997

4,360

2016

total

820

2017

Unit：million Yen

2020

2021

Financial Results for the Third Quarter of Fiscal Year 2022

2018

2019

2020

1,661

2017

2018

2019

total

2016

Unit：million Yen

2018

３Q

2017

unit：%

384.6) 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

３Q
total

49.3

2017

Net assets per share

unit：Yen

total* 2Q is total of 1Q and 2Q

850
800
750
700
650
600
550
500
450
400

'21/6/28

2016

2017

2018

2019

2020

2021

117.21179.63204.99232.63262.41

344.602022* Figures are after sprit adjusted as of May 12, 2017 ratio of 100 shares per share, asof Apr 1, 2018 ratio of 2 shares per share, as of Jan 1, 2019 ratio of 2 shares per share.

* 3Q is total of 1Q to 3Q

Stock price : yen

unit：Yen* This index is updated every year

Stock chart■VolumeVolume:shares■closing price

35000030000025000020000015000010000050000'21/7/28'21/8/28

Financial Results for the Third Quarter of Fiscal Year 2022

'21/9/28'21/10/28'21/11/28'21/12/28'22/1/28'22/2/28'22/3/31'22/4/30'22/5/31

039

• 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