Tokyo Stock Exchange Prime Market: Securities Code 3992

Needs Well Inc.

Financial Results
for the Second Quarter of Fiscal Year 2022
(October 1, 2021 – March 31, 2022)
May 12, 2022

1. 2022/9 2Q Financial report summary

2. 2022/9 Results forecast

3. Growth strategy

4. Reference1.1) Financial highlights 1

Double-digit Growth in Net Sales
Expansion of sales channels through business alliances andstrong performance in solutions businessNet sales

3,253

million JPY

YoYOrdinary profit

374

million JPY

YoY

Net profit

259

million JPY

YoY+15.4 ％

+24.3 ％
+25.8 ％

Ordinary profit margin11.5 ％Net profit ratio

8.0 ％* The Company has applied the standard for revenue recognition from the beginning of the current fiscal year.
Net sales increased by 20,045 thousand yen due to the impact of the application of the standard for revenue
recognition. There is no impact on gross profit, operating profit, ordinary profit, and net profit.
Financial Results for the Second Quarter of Fiscal Year 202231.2) Performance progression rate
Net Sales 48% and Ordinary Profit 53% Progress vs. Upward Revision
Business Systems SI:

Strong performance in life insurance and telecommunications, developed new
businesses for government ministries
Solutions/Products, etc.: Remained strong due to the Revised Preservation of Electronic Records Act, DX,
and telework
Progression rate/2Q performance (FY2022/9 target)
Net Sales[Breakdown of net sales](Unit: million JPY)

48.6% 3,253 (6,700)

Business Systems SI

In addition to expansion in insurance andtelecommunications, new orders were acquiredfor government ministries.

Infrastructure Services

Business Systems SI

48.6% 2,467 (5,080)

Infrastructure Services

52.8% 338 (641)

Connected Systems

41.9% 88 (210)

Solutions/Products, etc.

46.8% 359 (767)

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

Operating profit

54.0% 362 (670)

Solutions/Products, etc.

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

Connected Systems

Unique solutions for expense management
cloud such as Speed EA, Invoice PA, and RPA
Ordinary profit
53.6% 374 (698)remained strong. Focused on IT reengineering for supporting corporate DX
Net Profit
53.6% 259 (484)and Work AI, an industry specific AI solution.
Released Es Prophetter, a solution that
Performance achievement rates are calculated based on figures after the upward revision of automates quotes using AI.
results. [Reference] May. 9, 2022, “Notice on Upward Revision of Results Forecast”
Financial Results for the Second Quarter of Fiscal Year 202241.3) Ordinary profit analysis
Ordinary profit increased 24.3% year on year due toIncreased orders and acquisition of high-value-added projects■ Increase ■ Decrease Unit: million JPY
YoY+24.3%

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 2Q Ordinary profit
Financial Results for the Second Quarter of Fiscal Year 2022

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

Sales costs andrecruitment costs
decreased due to strong
results in recruitment

Other costs
increased

FY2022/9 1Q Ordinary profit

51.4） Profit & loss statement
Ordinary profit ratio was 11.5% (Up 0.8 pts YoY)
FY2021/9 2Q Financial Results

Unit: million JPY

ResultNet Sales

FY2022/9 2Q Financial Results

ResultNet Sales

Year-on-year

Net sales

2,818

-

3,253

-

115.4%

Business Systems SI

2,156

76.5%

2,467

75.8%

114.4%

Infrastructure Services

283

10.1%

338

10.4%

119.4%

Connected Systems

100

3.6%

88

2.7%

87.8%

Solutions/Products, etc.

278

9.9%

359

11.0%

129.1%

Gross profit

709

25.2%

764

23.5%

107.7%

SG&A expenses

403

14.3%

402

12.4%

99.9%

Operating profit

306

10.9%

362

11.1%

118.0%

Non-operating profit

2

0.1%

12

0.4%

636.1%

Non-operating expenses

7

0.3%

0

0.0%

9.8%

Ordinary profit

301

10.7%

374

11.5%

124.3%Net profit

206

7.3%

259

8.0%

125.8%

Financial Results for the Second Quarter of Fiscal Year 202261.5） Balance sheet*Selection of significant entries only

Assets

FY2021/9
Unit: million JPY
ResultCash and deposits
2,868
Accounts receivable938
Accounts receivable - trade and contract assets0Prepaid expenses
25
Other
9
Total current assets
3,842
Buildings, net
31
Software82
Software in progress
2
Investment securities
114
Shares of subsidiaries and associates
0
Defferred tax assets
118
Leasehold and guarantee deposits
83
Insurance funds
76
Other
7
Total non-current assets
517
Total assets
4,360
Accounts payable - trade143
Accounts payable - others
149
Accrued corporate tax, etc.
124
Accrued consumption taxes
91
Deposits received
41
Provision for bonuses
302
Other
8
Total current liabilities
861
Total non-current liabilities
0
Total liabilities
861
Share capital
907
Legal capital surplus
763
Retained earnings brought forward
1,807
Treasury shares
0
Valuation difference on available-for-sale securities
20
Total net assets
3,498
Total liabilities and net assets
4,360
Liabilities

EquityFinancial Results for the Second Quarter of Fiscal Year 2022

FY2022/9 2Q
Result Year-on-year
2,359
-509
0
-938
1,143
1,143
41
16
115
105
3,660
-182
30
-1
68
-14
30
28
266
151
45
45
118
0
82
0
76
0
8
0
728
210
4,388
28
214
71
141
-8
133
8
77
-14
40
-1
338
36
7
0
952
91
0
0
952
91
908
0
764
0
1,832
25
-91
-91
21
1
3,435
-63
4,388
28

Equity ratio at 78.3%
Remained at a high level despite being down
1.9 pts year on year due to the acquisition oftreasury shares

AssetsCurrent
assets,3,842

End of FY2021/09

Unit: million JPY
Current
assets,Noncurrent
assets,517

3,660

Noncurrent
assets,728

End of FY2022/09 2Q

Liabilities & Net Assets
Current liabilities

Unit: million JPY
Current liabilities

861

952

Net assets,
3,498

Net assets,
3,435

End of FY 2021/09

End of FY 2022/09 2Q7

1. 2022/9 2Q 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 ofthe capital and 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 Second Quarter of Fiscal Year 20229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

41.6 %

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 Second Quarter of Fiscal Year 202210

1. 2022/9 2Q 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 Second Quarter of Fiscal Year 2022

123.2) Growth track
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

552

employees
by end of
FY2021

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

Bankruptcy of Lehman
Brothers

COVID-19 Pandemic
FY2022/9 forecast

133.3) Medium-Term Basic Policy

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

Financial Results for the Second Quarter of Fiscal Year 2022

14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 Second Quarter of Fiscal Year 2022

15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
Financial Results for the Second Quarter of Fiscal Year 2022

2022
M&A

2023

2020

2021

2022

Existing businesses

2023

M&A
16

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 Second 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

173.6) Growth strategy
Promote improvement of corporate value

1

Expand Logistics Businesses

2

Focus
points6
7

Financial Results for the Second 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

18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 Second Quarter of Fiscal Year 2022

Sustainability• ESG, SDGs
• Corporate
governance193.6) 1 Promote improvement of corporate value ⅱ

Needs Well has chosen to be included in
the Prime Market for the Tokyo Stock Exchange market
restructuring in April 2022
Needs Well aims to satisfy all listing criteria by the end of September 2023 byimproving corporate value based on our “Plan for Compliance with Listing Criteria.”
Listing criteria(Prime Market)
Market capitalization of tradable
sharesStatus ofcompliance×

Number of shareholders○

Number of tradable shares○

Ratio of tradable shares○

Average daily trading value

Financial Results for the Second Quarter of Fiscal Year 2022○

Increase market capitalization by improving corporate value

Quantitative
approach

Qualitative
approach

i. Improve management index values
through expanding performanceii. Improve ratio of tradable shares bycapital policy

iii. Increase understanding andrecognition by strengthening
IR/PR

iv. Enhancing social value throughsustainable management203.6) 1 Promote improvement of corporate value ⅲ

Acquire treasury shares
Needs Well believes that its current stock price is undervalued considering its profit levels and willpurchase treasury shares for the following purposes:

・ Improvement of stock price and EPS

・ Execution of flexible capital policies in response to changes
in the business environment
Progress status as of April 30, 2022
Acquired treasury shares (cumulative): 251,300 shares (progress rate of 73.91%)

Contract price (cumulative): 163 million JPY (progress rate of 81.57%)
1

Class of shares to bepurchased

Common stock2

Total number of shares to bepurchased

340,000 shares
Ratio to total number of shares issued (excluding
treasury stock) 3.3％

3

Total amount to be delivered
in exchange for the purchase

Up to 200,000,000 Yen

4

Purchase period

From February 14, 2022 to August 12, 2022

5

Purchase method

Market purchase on the Tokyo Stock Exchange

Financial Results for the Second Quarter of Fiscal Year 2022

213.6) 1 Promote improvement of corporate value ⅳ
Proactively pursue M&A, capital and business alliances, andthe development of collaborative relationships
Expanding sales channels, orders, products, and engineers for further growth
Capital and businessalliance

Capital and businessalliance

Collaboration

ITFOR Inc.
Utilize engineers fromboth companies to secure
personnel fordevelopment projects.
Develop new customers.

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

Propose new logistics business
offering comprehensive services
ranging from WMS installation toautomated warehouses andoperation / maintenance.

2020.
02

Share acquisition

Canon IT Solutions Inc.

Zeroichi Production Co., Ltd.

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

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

2020.
12

2021.
07

2021.
10

2020.
03

2021.
03

2021.
09

2022.
02

Core partner

Capital and businessalliance

Business alliance

Capital and Businessalliance

Meiji Yasuda Life Insurance Company
Meiji Yasuda System Technology Limited

Build strong partnerships
over the future andmaintain development
engineers for a long-term.
Financial Results for the Second Quarter of Fiscal Year 2022

Souken-sys Inc.

CONEXIO Corporation

Ascentech K.K.

Receive the supply ofdevelopment personnel andstrengthen orders fordevelopment projects in theareas that Souken-sys
specializes in.

Develop two-stop businessthrough collaboration withdifferent industries. Aim to
expand the customer base.

Collaborative developmentof a new hybrid VDI (virtual
desktop) platform that canbe freely configured for the
cloud, on-premise, Windows,
and Linux

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 in collaboration with Logi Revo Co., Ltd. and Office FA.com Co., Ltd.
Financial Results for the Second 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 Second 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 Second 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 Second 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

Providefor issues related to the 2025 Digital Cliff

Plan to provide collaboration solutions combining RPA tools and business chat tools(2022)
Receive user inquiries through AI chat bots and deploy RPA to handle processes andactions requested by users
Financial Results for the Second 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 Second Quarter of Fiscal Year 202228

1. 2022/9 2Q 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 Second 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 Second 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 Second 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 Second 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 Second 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.

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 Second 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 and 2021)

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 Second Quarter of Fiscal Year 2022

364.6) Business results 1
Net sales

2016

2016

2018

2019

2020

2021

2022

１Q

121

110

92

136

171

２Q

255

266

267

306

362

387

354

375

337

434

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

3,253

3,739

4,097

4,078

4,262

３Q

5,752

total

3,801

３Q
total

2017

Operating profit Unit : million yen

Unit : million yen

4,586

5,063

5,140

5,517

5,364

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

３Q

248

236

255

231

306

426

467

505

514

582

total

287

325

347

347

421

total

405

Financial Results for the Second Quarter of Fiscal Year 2022

2016

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

３Q

40.81

38.78

41.15

40.99

46.64

通期

３Q
total

36.74

2017

ROE

* 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

2016

2022

2019

2020

2021

2022

１Q

1,480

1,697

1,918

2,236

3,383

２Q

1,573

1,809

2,040

2,628

3,435

1,042

1,635

1,878

2,105

2,871

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

4,388

2,062

2,772

2,629

2,956

3,876

３Q

2,438

2,697

2,688

2,997

4,360

total

820

2017

Unit：million Yen

2018

2021

Financial Results for the Second Quarter of Fiscal Year 2022

2018

Net assets

2020

1,661

2017

Unit：million Yen

2019

total

2016

* This index is updated every year

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

３Q

61.4

64.0

73.4

74.5

80.2

total

３Q
total

49.3

2017

Net assets per share

unit：Yen* 2Q is total of 1Q and 2Q

850
800
750
700
650
600
550
500
450
400

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

350,000
300,000
250,000
200,000
150,000
100,000
50,000'21/4/1'21/5/1'21/6/1

Financial Results for the Second Quarter of Fiscal Year 2022

'21/7/1'21/8/1'21/9/1'21/10/1'21/11/1'21/12/1'22/1/1'22/2/1'22/3/1

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