TIS INTEC Group Logo
Underlying Concepts
The logo portrays the TIS INTEC Group as a tightly knit
TIS INTEC Group Logoteam, powered forward by the different sets of expertise
Underlying Concepts
that each member brings to the table. It features our
The logo portrays the TIS INTEC Group as a tightly knit
two main corporate colors: “ocean blue” for theteam, powered forward by the different sets of expertisenew challenges that we are constantly tackling, andthat each member brings to the table. It features our“intelligent gray” for the solid technological foundations
two main corporate colors: “ocean blue” for thethat underpin our business.
new challenges that we are constantly tackling, and“intelligent gray” for the solid technological foundations
Brand Message
that underpin our business.
The brand tagline, “Go Beyond,” embodies our constantquest into the beyond in search of new challenges. It
Brand Message
represents our firm commitment as a group to delivering
The brand tagline, “Go Beyond,” embodies our constantsolutions that are always one step ahead, not only solving
quest into the beyond in search of new challenges. It
clients’ problems but anticipating and meeting their own
represents our firm commitment as a group to delivering
customers’ needs too.
solutions that are always one step ahead, not only solving
clients’ problems but anticipating and meeting their own
customers’ needs too.

TIS Inc.
Sumitomo Fudosan Shinjuku Grand Tower,
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, JapanTIS Inc.

ForfurtherFudosan
information,
contact:
Sumitomo
Shinjuku
Grand Tower,
Corporate Management Dept., Corporate Planning SBU.
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, Japan
Tel: +81-3-5337-4569
E-mail:tis_ir@tis.co.jp
Forfurther
information, contact:
http://www.tis.com/
Corporate Management Dept., Corporate Planning SBU.
Tel: +81-3-5337-4569
TIS201909
E-mail: tis_ir@tis.co.jp
http://www.tis.com/

Integrated Report 2019

TIS201909

Year Ended March 31, 2019 (From April 1, 2018, to March 31, 2019)

Securities Code: 3626

About the TIS INTEC GroupTIS INTEC Group Philosophy—OUR PHILOSOPHYThe TIS INTEC Group is a leading provider of IT services in Japan, with some 20,000 employees
groupwide. As a corporate group, we draw on many years of combined insights and experience
as well as high-level technical expertise in helping to solve various issues impacting society.

OUR PHILOSOPHY was announced in January 2019 as basic philosophy for the TIS INTECGroup. It represents a set of values shared throughout the Group and is basis for all corporate
activity.

Consolidated
Net Sales

Consolidated
Operating Income

Number of Employees,
Consolidated(Year ended March 31, 2019)(Year ended March 31, 2019)(As of March 31, 2019)¥420.7¥38.0

19,483

Number ofGroup Companies

Number of
Clients

Aggregate Numberof Solutions(As of March 31, 2019)(Year ended March 31, 2019,
domestic)(Year ended March 31, 2019,
domestic)

108

More than(TIS+consolidated subsidiaries+equity
method affiliates)

About 15,000
companies

Consolidated ROE

Consolidated
Equity ratio

billionbillion(Year ended March 31, 2019)(Year ended March 31, 2019)

11.5%

62.0%

Net Sales by Business Segment

500 cases
Rating（At November 10, 2018）

A /Stable(Long-term/Japan Credit Rating
Agency, Ltd.)CONTENTSNet Sales by Client Sector(Sales to outside customers, excludes intersegment sales)

Others¥4,427 million
Includes a number ofancillary businesses thatprovide leasing and otherinformation systems toclients.
Industrial IT
Business

41.1%

Industrial IT Business¥172,949 million
Utilizes business andoperating know-how specific to non-finance industries to raise value-added
quality of clients’ operations, expand use of IT,
and provide IT-based support for operations.

1

What does the TIS INTEC Group do?
Service IT Business¥104,154 million

Others1.0%Services IT
Business

24.8%

Year ended
March 31, 2019
Total

¥420,769
millionFinancial IT
Business

25.2%

Financial IT Business¥106,103 million
Leverages business andoperating know-how specific to the financial sector to raise value-added
quality of clients’ operations, expand use of IT,
and provide IT-based support for operations.

BPO

7.9%

Provides original knowledge-intensive IT services
leveraging TIS’ service
and industry know-how
to create universalized,
template-oriented solutions for clients (includes
default configuration and
ERP).

Publicinstitutions

Services

24.6%

4.4%

Credit card

17.5%

Year ended
March 31, 2019
Total

¥420,769
millionBanking

6.3%

Insurance

6.5%

Other
finance

4.6%

Distribution

7.8%

About the TIS INTEC GroupTo Our Stakeholders
TIS INTEC Group History
TIS INTEC Group Value Creation Process
Consolidated Financial / Non-Financial Highlights

Others8.3%

BPO¥33,134 million
Draws on Group’s extensive service menu and IT
know-how to deliver business process outsourcing(BPO) services, including
marketing and sales services and office and contract operations.

What does the TIS INTEC Group do?

ProfileAssembly-based
Processing-based manufacturing
manufacturing
10.9%

9.1%

Platform that Supports Value Creation Process (ESG Section)
1
3
7
9
11

Growth Strategy/Business Strategy of the Group
Outline of Medium-Term Management Plan
Working toward Medium-Term Management Plan Targets
Message from the Executive Vice President
Business Strategies and Performances by Segment
Strategies for Payment Settlement Business
Global Business Strategy
New Technologies and R&D
Quality Control
Executive Roundtable Discussion

13
15
19
23
27
29
31
35
37

Platform that Supports Value Creation Process
Basic Direction on Group CSR
Sustainability
Human Resources Strategy
Group Human Resources Roundtable Discussion
Communication with Shareholders
Contributing to Global Environment
Messages from Our External Directors
Corporate GovernanceBusiness Risks

41
42
43
45
47
51
52
53
54
67

Corporate Data
Consolidated Financial Summary
69
Board of Directors, Audit & Supervisory Board Members and Executive Officers 73
Corporate Profile
75

Editorial Policy
From 2016, we have opted for an integrated report that provides key financial as well as non-financial content to enable all stakeholders, particularly shareholders and investors, to better
understand the measures that we have taken to achieve sustainable improvement in the corporate value of the TIS INTEC Group. Please check our website, as well, for information, as many of
the topics we cover in the report are updated on the website, as appropriate.
http://www.tis.com/
Scope of reporting: TIS (parent) and TIS INTEC Group
Issued: September 2019
Disclaimer: Forward-looking statements, such as performance forecasts, described in this report are based on information available to management regarding the TIS INTEC Group—that is,
TIS and the subsidiaries under its umbrella—as of the production date and certain assumptions deemed reasonable at this time. No intent of promise is implied by the Company to achieve suchforward-looking statements. Indeed, various factors may cause future results to be substantially different from the assumptions presented in these materials.
The names of the products and services described in this report are trademarks or else registered trademarks of the respective company.

2

To Our Stakeholders

What does the TIS INTEC Group do?

Guided by OUR PHILOSOPHY, we will promotesustainable growth through unified groupmanagement.
Toru Kuwano, TIS Chairman and President, provides details on OUR
PHILOSOPHY—the recently announced basic philosophy for the TIS INTECGroup—and progress on Medium-Term Management Plan (2018-2020).

Q1. Please summarize OUR PHILOSOPHY.
Our objective is to fill the future—still essentially a blank canvas—with vibrant colors as a mover using
digital technology.
We recently announced OUR PHILOSOPHY, a basic philosophy for the TIS INTEC Group that represents a senseof values shared throughout the Group. OUR PHILOSOPHY broadly clarifies Group management, corporate
activities and vital concepts and ideals for members of the Group, including directors and employees. A company exists, essentially, for the diverse range of stakeholders connected to it and, by extension, all of society.
Given this underlying perspective, we made it the mission of the TIS INTEC Group to fill the future—still essentially a blank canvas—with vibrant colors as a mover using digital technology. The meaning of “mover” implies
our movement as a corporate group as well as driving the movement of society through our activities.
The spread of digital technology has transformed every aspect of society and is sure to continue to spur
more changes. Positives are widely expected, but negatives are still a concern, particularly technological singularity—that is, a hypothetical point in time when artificial intelligence evolves beyond human intelligence andcauses a major shift in the mode of human life. The future is a blank canvas, and we believe it is necessary to
make it bright. With this in mind, a vivid pallet of color is required—that is, innovative possibilities and a rangeof choices that appeal to society. OUR PHILOSOPHY embraces this perspective as well as being a declaration of
our mission, our duty as a corporate citizen to support the use of digital technology, establish a presence thatbrings about the realization of a brilliantly colored society through our own corporate activities, and contributeto society as a mover capable of creating a future in which people are happy. It is our raison d’etre.

Q2. Please describe the process involved in formulating OUR PHILOSOPHY.
OUR PHILOSOPHY is the equivalent of a corporate constitution for the TIS INTEC Group.

Toru Kuwano,
Chairman and President

3

The TIS INTEC Group was established, albeit under a different name, back in April 2008 through management
integration and became today’s TIS INTEC Group in July 2016 through realignment of companies under theGroup umbrella. The shift from a pure holding company structure to that of an operating holding company
was a major turning point in our corporate history. Maybe for this reason, it was also the perfect opportunity
to redefine our corporate philosophy and highlight the qualities that we seek to demonstrate as a corporategroup while also addressing changes in the social landscape that had occurred over the years since our 2008
establishment.
The announcement of OUR PHILOSOPHY came after we unveiled Group Vision 2026 in May 2017 andMedium-Term Management Plan (2018-2020) in April 2018 because it was to be the axis around which theentire Group turned, and we needed time to carefully craft the content. Nevertheless, we had an idea of what
OUR PHILOSOPHY should be, and the thinking behind this philosophy actually infuses Group Vision 2026 andMedium-Term Management Plan (2018-2020).
Group Vision 2026 describes the place we want the TIS INTEC Group to be in business markets 10 years
from now. Toward this end, we invited participation from principal Group companies, specifically, division managers and deputy managers in their 30s and 40s who would likely play key roles in the TIS INTEC Group 10
years into the future. Through repeated dialogue opportunities, we formed the image we want the Group topresent by 2026—that is, a Group able to create an exciting future by utilizing advanced technologies andknow-how to realize business innovation and market creation—and also clarified our intention to secure a
position on the global stage and defined specific strategic domains. We will travel through three three-year
management plans to reach the final destination that is Group Vision 2026. Each medium-term management
plan will be a detailed map, with specific milestones, for each stage along the way.

4

Q3. What is the connection between society’s demands on companies and OUR PHILOSOPHY?
The concepts under OUR PHILOSOPHY are style, policy and membership, creating a foundation that will
underpin achievement of our mission.
TIS—and by extension, the TIS INTEC Group—signed on to the U.N. Global Compact in July 2018 and has been
involved in initiatives aimed at developing a sustainable society. Also, Medium-Term Management Plan (2018-2020)highlights the slogan “Transformation to 2020—Achieving structural transformation as a corporate family and taking
the lead in finding solutions to social issues”. OUR PHILOSOPHY brings together several universal principles and,linked to our medium-term management targets, it will be integral to a structure that enables us to implement theactivities that society requires companies to perform.
OUR PHILOSOPHY is built on three concepts—style, policy and membership—that support efforts to achieve our
mission. Each concept is defined, respectively, as a code of conduct befitting a good corporate citizen, a people- oriented management policy, and a sense of honesty that provides the basis for the Group’s corporate activities.
Amid heightened calls from society that companies improve their compliance and governance practices, we
acknowledge, as a good corporate citizen, the importance of going beyond social norms and the expectations of society. At the same time, we must cultivate an open and free corporate culture and atmosphere that enables all employees to express their own opinions. Right now, we are working through a structural transformation. And for us to fulfill
our role as a mover—to anticipate social issues and build a new business model—it is vitally important that we promote a flexible approach to communication inside and outside our corporate walls. We must be proactive. The codeof conduct for the TIS INTEC Group is based on this perspective and embodies the three concepts of style, policy andmembership noted above.
Information meetings on OUR PHILOSOPHY were held for employees, and then seminar programs were graduallyrolled out according to job position, such as director, division manager, regular employee and new employee.
Although we are diligently implementing awareness-building opportunities, it will take time for OUR PHILOSOPHY topermeate the consciousness of everyone—some 20,000 people—under the Group umbrella. But we are blessed witha phenomenal corporate culture, and just like a beautiful flower, OUR PHILOSOPHY will bloom and grow in this environment through consistent efforts to promote the underlying beliefs.

Q4. What is the status of Medium-Term Management Plan (2018-2020)?

What does the TIS INTEC Group do?

OUR PHILOSOPHY is essentially a corporate constitution premised on Group Vision 2026 and medium-term management plans. It represents a perspective—a way of thinking—that forms the foundation of all corporate activity.
Striving to generate sales and income is a given for any profit-seeking company. However, real corporate growth is notdetermined by numbers alone. Success, from the OUR PHILOSOPHY perspective, will be measured by how well we fulfill our ultimate mission—social contribution through business activities—and how much we improve value for stakeholders. We will encourage each and every employee to recognize the underlying significance of groupwide corporate
activities as this understanding will underpin achievement of quantitative targets.

On the performance front, results are better than expected, and business restructuring is leading to steady
improvement on a qualitative basis as well.
Fiscal 2019 was the first year of Medium-Term Management Plan (2018-2020), and it brought higher sales andincome than initially predicted. In addition, strategic domains—the four business segments that will play a key role inour future success—contributed 42% on a net sales basis, surpassing expectations. I feel that this is a reflection ofsolid steps toward structural transformation but also sets the medium-term management plan off to a great start. The
three years of the current medium-term management plan form the first step in building a platform for achievingGroup Vision 2026. But a launchpad for the next step, that is, the next medium-term management plan, must be put
in place as well, and this requires efforts to accelerate structural transformation of the Group. Balancing short-term
improvement in business results with medium- to long-term progress on structural transformation is by no means aneasy task since certain aspects cancel each other out. But we will diligently strive to achieve sustainable growth.
To promote structural transformation, TIS will attempt something during the current medium-term management
plan that the Company has never tried before—split its operations into account-style business, which emphasizes
Strategic Partnership Business, and service-style business, which focuses on IT Offering Services to create industry platform solutions under a prior investment style approach. Both sides of operations will interact to meet the needs ofeach client company while enabling TIS to capitalize on opportunities across a diverse business spectrum. This is
another aspect of structural transformation. Going forward, we will introduce measures extensively throughout theGroup to keep the structural transformation process moving ahead.

Q5. In what direction will structural transformation take the TIS INTEC Group?
To galvanize the Group’s strengths, we will promote measures that emphasize cohesive power and diversity.
People are, without a doubt, the most valuable management resource any company can have. For the TIS INTECGroup, it is therefore vital, above all else, that frontline employees—those who are closely involved in the process ofstructural transformation—acquire a new outlook for success. For example, service-style business presents many
opportunities to work with startups and other companies with potential in the area of open innovation. I think we candeliver good results by taking a more proactive approach in deploying human resources with the right capabilities,
regardless of age or level of experience, to build alliances using a more flexible organizational template. Toward thisend, we will continue to vigorously invest in human resources, including training and performance evaluations
matched to the new business model.
On a groupwide basis, we will concurrently strive to increase cohesive power and emphasize diversity while moving through structural transformation. As the operating holding company, TIS is the de facto leader and will promote
unified group management in line with OUR PHILOSOPHY. But in practice, there is no one-size-fits-all method to bringout the best in each Group company. For example, it is okay for personnel systems to differ, matched to whateverbusiness model is used at each company. If the system adheres to underlying Group policy, specific details can be left
to the discretion of management at each company.
However, we are also looking to enhance management practices on a groupwide basis and improve efficiency byleveraging access to shared head office systems through the “G20” project to elevate head office functions. This process is inviting active dialogue within the Group. Recognizing the similarities and differences—that is, diversity—in ourbusiness activities is an indispensable component of unified group management. I expect this process to lead to new
developments, such as the separation or concentration of future business activities and the creation of common platforms, that will strengthen the Group’s overall capabilities.

Q6. Is there anything of particular importance you’d like to say to stakeholders?
We will expand the possibilities of digital technology and help to solve social issues from a global perspective.
Digital technology is indispensable in today’s world. Its reach extends to so many facets of society now and is key indelivering solutions to all sorts of global issues, from disasters to sickness and poverty. Considering how reliant theworld is on digital technology, the role that the TIS INTEC Group must fulfill is growing in size and so is the potentialthat we can achieve with the right responses. This situation is sure to continue. For example, I firmly believe that ourstrengths in the payment settlement business will meet the huge demand generated by a cashless society—a new payment culture increasingly embraced at home and abroad. Additionally, we are involved in various initiatives, including
Utility 3.0 for a carbon-free society, next-generation transport services such as MaaS (Mobility as a Service), and application of digital technology in areas such as SDGs Future Cities (cities in Japan selected by the national government asmodels of urban planning with state-of-the-art environmental sustainability, strong disaster resilience and superb livability). Everyone under the TIS INTEC Group umbrella, from management to employees, is fully aware that realizing abright future requires a heavy commitment and recognizes the social responsibility we must fulfill. As a team, we will
strive to enhance corporate value by helping to solve social issues through our business activities and by contributing
to the realization of a sustainable society. The support of our stakeholders is and always will be integral to success.

5

6

TIS INTEC Group History
The TIS INTEC Group has, in one form or another, provided industry-leading services since
the dawn of the domestic information services industry.

through the management integration of
TIS Inc. and INTEC Holdings, Ltd., to ensure
growth through shared use of both companies’
management resources.

1971

ITHD Group is reorganized. INTEC Holdings is merged
into INTEC, and nine TIS subsidiaries are put under the
direct control of ITHD.

Period ofestablishment

ITHD debuted a single logo for all
Group companies and adopted a
new brand message, “Go Beyond”.

April 2011

December 2009

ITHD orchestrated a threecompany merger involving TIS,SORUN and UFIT Co., Ltd., with
TIS as the surviving company.

SORUN Corporation joined the
ITHD Group.

Toyo Information Systems,
Co., Ltd. (now, TIS) established.

May 2015

June 2014

2008–2009

New independent, leading company on

Toyama Computer Center, Inc. the IT services scene(now, INTEC) established.
IT Holdings Corporation (ITHD) was createdFirst Medium-Term
Management Plan
Group management
emphasizing independenceof each company

Discussions on Groupreorganization began

July 2016

Transition to TIS INTEC Group
ITHD executed an absorption-style merger with TIS, adopted its subsidiary’s high-profile nameand transitioned to an operating holding company. Embraced governance system that prioritizes
overall optimization of the Group, fueled by the cohesive power of core companies.

March 2015

ITHD turned AGREX Inc. into a
100% consolidated subsidiary.

Second Medium-Term
Management Plan
Overall optimizationof the Group andgreater sense of unity

May 2017

April 2018

Announced “Group Vision 2026”, theoverall picture of the Group in 2026

Launched new medium-term management plan

Third Medium-Term
Management Plan
Portfolio management, ina project sense, combining
exceptional businesses and key
strengths into a single approach.

Medium-Term Management Plan (2018–2020)

11.5%

4.8%

10.0%

9.4%

8.1%
¥405.6 billion

6.0%

12.0%

11.5%

¥430.0 billion

9.0%
7.4%

Group
Vision2026

Structural transformation

9.9%

7.0%

What does the TIS INTEC Group do?

April 2008

1964

¥425.0 billion¥420.7 billion

5.9%

Net sales (Billions of yen)
Operating income (%)

1.5%¥361.0 billion

ROE (%)¥338.3 billion¥327.4 billion

Fiscal
2009

Fiscal
2012

Fiscal2015

As of March 31, 2019, the TIS INTEC Group consists of 108 companies, including the parent company, 40 consolidated
subsidiaries, and 67 affiliated companies accounted for under the equity method.
Domestic
Financial IT BusinessIndustrial IT Business

Service IT Business

BPO

OthersFiscal2018

Fiscal
2019●Sorunpure

Corporation●TIS Total Service Inc.

●AGREX Inc.
●QUALICA Inc.
●AJS Inc.
●TIS Solution Link Inc.
●TIS System Service Inc.
■Equity method●Equity method

affiliates: 1

affiliates: 11●Consolidated●Consolidated

subsidiary: 1

subsidiary: 3■Equity method

Other group companies●Consolidated
subsidiaries: 2Company Name

Shareholding Ratios

Description of Business—

Focuses on credit card companies but pursues business
opportunities in a wide range of sectors, including services andmanufacturing. Merged with SORUN and UFIT in April 2011
and implemented structural reforms. Merged with pure holding
company IT Holdings Corporation in July 2016 and became
operating holding company.

TIS Inc.

INTEC Inc.

TIS

Focuses on megabanks and life insurers, and promotes CRM
100% for regional banks and offers a wide selection of services toregional public corporations, particularly in the Hokuriku region.

AGREX INC.

TIS

Leading company in mainstay BPO field. Began global BPO
100% services in October 2013. Became wholly owned subsidiary inMarch 2015. Efforts to centralize Group’s BPO operations at
AGREX still in progress.

QUALICA Inc.

TIS
Komatsu

Formerly, information systems subsidiary of Komatsu. Focuses
80% on assembly-based manufacturers, mainly those under the
20% Komatsu Group umbrella, while expanding business withcompanies in the distribution and restaurant sectors.

AJS Inc.

TIS
Asahi Kasei

51% Formerly, information systems subsidiary of Asahi Kasei. Focuses
49% on companies under the Asahi Kasei Group umbrella.

affiliates: 6

Overseas
North America●Consolidated subsidiaries : 1

7

ASEAN and others●Consolidated subsidiaries: 11■Equity method affiliates: 59

China●Consolidated subsidiaries: 3■Equity method affiliates: 1

Fiscal2021

2026

About the Group’s Five Principal Companies

TIS Inc.
●INTEC Inc.

Fiscal2020

8

TIS INTEC Group Value Creation Process

What does the TIS INTEC Group do?

TIS INTEC Group Management
Resources

Value provided to society

TIS INTEC Group Philosophy
Basic Direction on CSRGroup Vision 2026

Medium-Term Management Plan

“Create Exciting Future”“Transformation to 2020”

Providing optimum, one-stop support across clientsystem lifecycles and all types of IT-related services

Clients

Ample experience and● Provide the best services

Everything from system
operation to fullbusiness process
outsourcing (BPO)

Consulting
services● Plan/propose new application

Helping clients use
IT to raise business
value

formats for IT● Lead/support realization of visionand strategies

Business Partners
Outsourcing
servicesState-of-the-art
outsourcing network inJapan
Broad customer baseSolid financial position
etc

Contractdevelopment style
Provide systems
matched to client
requirements

Service offering
style
Provide services that
anticipate client
needs

Systemintegration
services

Providing one-stop
access to systems
perfectly matchedclient needs

IT platform
configuration
services

Research
into and accessto leading-edge
technology

Building safe and securecomputer networks, fromhost to public, matched toclient needs

Always on a quest for thelatest IT technology toprovide systems a stepahead of expectations● Promote diversity● Promote workstyle reforms

emphasizing personal achievement

2. Create comfortable society throughinnovation and joint activities● Promote safe, convenient social foundationthat supports people and society● Connect with stakeholders and promote joint

activities● Create new added-value● Fair, transparent, open competition

and appropriate business practices● Responsible Procurement

3. Create safe society throughhigh-quality services● Continuous quality improvement● Information security● Safeguard personal information

4. Enhance corporate governance andearn trust of society

Employees● Provide opportunities for growth● Corporate governance● Compliance● Risk management

and personal achievement● Offer environment that is safe andcomfortable● Promote diversity

Community / Society

Structures supporting TIS INTEC Groupbusinesses and sustainable growth9

1. Create society in which diverse
human resources are engaged andthrive● Reduce environmental impact

know-how
Extensive service menu

Contribute to the achievement of SDGs
through materiality-oriented activities● Human resources development and training

High technologicalcapabilities● Sustainable improvement inshareholder value and return toshareholders● Highly transparent disclosure● Engaging in constructive dialogue

TIS INTEC Group Business Activities
Diverse workforce

Shareholders and Investors

Corporate governance

Quality management

Production innovation

Information security

ComplianceCorporate culture● Provide systems that support

high-level information society● Help solve social issues through useof digital technologies● Reduce environmental impact

10Consolidated Financial/Non-Financial Highlights

420,769

361,025

382,689 393,398(Millions of yen, %)405,648

Operating Income
Operating Income to Net Sales Ratio 38,043

9.0

32,743
21,121
5.9

24,436
6.4

Net Income Attributable to Owners of
the Parent Company (Millions of yen)
Net Income per Share (Yen)Net Income Attributable to Owners of the Parent Company
Net Income per Share
26,034

12,678(Millions of yen)

(Millions of yen)

71,095219,225

199,842 207,345 208,307

69,961

Free Cash Flow
(Millions of yen)

75,54964,751

36,34534,18467,716241.4416,306
10,275

Order Backlog at Year-End(Software Development)

238,298

307.83

20,6208.1

27,0196.9

Orders Received during the Term
(Software Development)

What does the TIS INTEC Group do?

Operating Income,Operating Income to Net Sales Ratio

Net Sales(Millions of yen)

22,184189.02145.22117.405,194-4,536

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

2015年

2016年

ROE,
3月期 ROA
3月期

2017年
3月期

2018年
3月期

2019年
3月期

(%)

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Net Assets per Share, Equity Ratio

Dividends per Share, Payout Ratio,
Total Return Ratio* (Yen, %)Interest-Bearing Debt Balance,
Interest-Bearing Debt Ratio(Yen, %)ROE

ROA

Net Assets per Share

11.5

6.4

7.2

2,265.76
2,108.19 2,031.07
57.8
52.5
53.3

10.5

9.3

8.0

Dividends per Share

60.4

有利子負債
有利子負債比率(Millionsof yen, %)52,114

33.00
30.00
35.3
30.4
25.6
22.7

7.0

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 201935,144

15.1

40.00
30.5

19.0

16.6

10.4

2,200.0

299.0

300.0

265.2

0

4.2

2.7

5,000

2.2

NTT
Data

NRI

CTC

TIS

SCSK

UNISYSNSSOL···* The graph data indicates net sales of NTT DATA Corporation, Nomura
Research Institute, Ltd., ITOCHU Techno-Solutions Corporation (CTC), TIS Inc.,SCSK Corporation, Nihon Unisys, Ltd., NS Solutions Corporation, and TIS
INTEC Group.
* NTT DATA and CTC amounts are based on the IFRS (International Financial
Reporting Standards).

007

0

0

60〜

4

55〜59

3

50〜54

0

700

1400

1

2018

2019

2020

2021

2022

2023

40〜44

0

*Gartner "Forecast IT Service Japan by Vertical Industry 2Q19" M. Sawai/August
15, 2019 (PFSTJ1: PFST-J1-MT-1912)
End user spending based Graph created by TIS based on Gartner research
150,000
The Gartner Report(s) described herein, (the "Gartner Report(s)") represent(s)research opinion or viewpoints published, as part of a syndicated subscription
service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each
125,000
112,437
110,363
Gartner Reportspeaks as of its original
publication date (and114,305
not as of the dateof this Prospectus) and the opinions expressed in the Gartner Report(s) are
100,000
subject to change without notice.

35〜39

116,229

1.9

1.3

1.7

2016

591

1,242
1,398

564

365
前年比成長率119,787

6

1,228
1,002

5
4

2018

2019

2021

64

19.87

Total

15,948 Ratio of annual paid leave taken

72.99

Male

40.24 Number of employees on maternity leave

Female

36.09

Total

39.07

Number of employees working shorter
hours to care for young children

Average length of service (years) Male

13.69

65

692

69

General positions (male)
General positions (female)

447
38
681

Of this, men

9Female10.78 Number of employees on nursing care leave

13

Total

12.88

Number of employees working shorter
hours to care for elderly family

3

Turnover rate

155

Number of employees inmanagement positions

Male

Percentage of employees with
3,147
a disability Note 2

2.23

FemalePercentage of employees over the296
age of 60 Note 3

2.17

6

884

Of this, men (paternity leave)

Number of non-Japanese employees
4.82(foreign nationals)

54

3 0 0 596

2
1.5 Management positions
1.5 (male)2020

166.36

4,419 Non-scheduled hours worked

Number of employees ingeneral positions

0 0 704

Management positions (female)1

2017

11,529 Average total working hours

Female

38

332

702

118,020
25〜29
〜24

1.7

239

1,506

25,0000

Non-Financial Data (As of April 1, 2019)

Average age

791

909

38

39 9
103

30〜34

(Age)

50,000234,4082100

0313 647745

45〜49

75,000

11

0041

13

2.1 2

2.2

2.0

2,500

100.0

226,298

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Number of full-time employees Male

7,500

200.0

366,954 370,657

7.3

Employee Composition (As of April 1, 2019) (Number of employees)

6

10,000

358.6

400.0

337,622

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 201913,215.1
12,418.3 12,670.0 12,942.6
512,500 11,830.9 12,152.6

420.7

345,851 336,495

Net Assets* From the first quarter of fiscal 2019, TIS applies “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan, Statement No. 28, February 16, 2018).
Figures for fiscal 2018 have been retrospectively restated in line with the aforementioned partial amendments.

YOY change

451.9

Total Assets

19,877 19,483*Total return ratio: Total amount of dividends and treasury
stock buybacks as a percentage of net income.

15,000501.2

19,843

188,789 180,539 199,202(Billions of yen, %)2,163.6

500.0

19,393Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

IT Services Market Size in Japan (moderate case)(Year ended March 31, 2019)(Billions of yen)

(Millions of yen)

26,893

8.9

22.8

0012

Net Sales of Japan’s Leading IT Companies

32,876

13.7

39.0

31.9

Total Assets, Net Assets(Person)

19,09046,15836.00

Number of Employees at Year-End

Total Return Ratio

70.00

62.0

6.0

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Payout Ratio

2,719.79

2,602.07

9.9
8.8

Equity Ratio

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Percentage of employees inmanagement positions

Total

3,443

Male

8,382

Female

4,123

Total

12,505

Male

27.30

Female

6.70

Total

21.59

Notes: 1. The above are simple combined averages
or weighted averages for the TIS INTECGroup’s seven principal companies (TIS,INTEC, AGREX, QUALICA, AJS, TIS
System Service, and TIS Solution Link).
2. The percentage of employees with adisability represents the combined total
for TIS, SorunPure Inc. five affiliatedspecially recognized companies under theGroup umbrella (employees hired underregular: 8,940.5 people; employees witha disability: 199.5 people). Percentage of
employees with a disability is calculated
based on June 1, 2019.
3. Percentage of employees over the age of
60 is calculated based on June 1, 2019.

012

Outline of Medium-Term Management Plan

To realize sustainable growth and higher corporate value, we have made the current
medium-term management plan our first step toward achieving Group Vision 2026 andthrough further improvements within the Group, we will promote structural transformation and establish a resilient management foundation.

Transformation to 2020

Group Vision 2026
Taking advantage of the shift to an operating holding company in July 2016, TIS announced a new Group vision for
the future in May 2017 to mobilize the capabilities of Group executives and employees alike and take corporate
value higher. The new medium-term management plan is important because it is the first stage of a journey towardachieving Group Vision 2026.
2026 Corporate Ideal(From April 2018 to March 2021)“Create Exciting Future”

Utilize advanced technologies and know-how torealize business innovation and market creation—Achieving structural transformation as a corporate family and taking the leadin finding solutions to social issues—

Strategic Domains

Seeking Position on Global Stage● Be seen by leading companies in

Corporate Targets in 2020

approach work
enthusiastically

Increase high-value-added quality(boost value of technology/social
research results) throughvalue chain reformin three years¥80 billion¥430 billion
Operating income ¥43 billion ★
Operating margin
10%★

Structuraltransformation

Net sales50

to deliver ratio of%★
from strategic domain sales

ASEAN Region

Budget for growthinvestment tofuel structuraltransfmoration

Throughenhancedmanagement
efficiency

Becometop classROEgroup united in IT★ Key performance indicators

12%★

Become corporate groupthat contributes

solutions toenvironment/social issues
through business activities● Actively invest to rev

up growth engines● Improve value
provided to clients,
reinforce existing
fields throughproductivity
innovation

13

and programs that motivate
employees to work hard
Emphasis on ● Build human resources
employee self- portfolio that supports
structural transformation,
fulfillment
and optimize deployment
throughout Group

Constant transformation, with sense of speed● Proactively propose

Concentrateon corebusinesses

solutions to markets/clientsand transform structure to
realize business creation● Pursue strategicallydirected, robust investment, mainly throughM&A and service
investment

Advanced
technologies

Businessfunction
services

Strategic
partnershipbusiness

Medium-Term Management Plan (2018-2020) will guide us in pursuit of structural transformation with a sense of
speed to build a foundation for Group Vision 2026 success and expansion of strategic domains.
Medium-Term
Management Plan

2016

2026

(2018-2020)

Business Domains in 2016

● Create environment, culture

SustainableprofitgrowthIT offering
services

TIS INTEC Group management resources

Shift to priorinvestment
style ofbusinessdevelopment

Supportingclients’businesses

derived through business activities,
establish structure generating
medium- to-long-term benefits forsociety as well as profits to sustain
corporate presence● Achieve cost reduction throughenhanced, more efficient
headquarters function

Frontier
marketcreationbusiness

both a revenue base and a technology/know-how base
● IT Offering Services: Prior-investment
business functioning as pillar of profit● Business Function Services: Recognized as Group forte, driver of growth● Frontier Market Creation Business:
Driver of explosive growth throughcreative destruction of prevailing walls

Strategic Domains in 2026

Business
CreatorBasic Policy● With solutions to social issues

different industries as having anappealing presence, always trusted
as a strategic partner● Always embrace reform in existing
industries and markets, and earn
reputation as market-creating
innovator● Transcend the limits of an IT
enterprise; be a leading company
with innovative market concepts● Proudly demonstrate high profileand showcase solid standing as acorporate group chosen by clients,society, employees—everyone

Marketable
services

Frontier Market
Creation BusinessNetwork
infrastructureservices
BPO services

Specific
responses

Strategic
domainratio(net sales
basis)IT Offering Services

Business Function
Services

Strategic Partnership
Business

Provide IT
engineeringexpertise

IT domains

Expandglobalbusiness

Evolution ofstrategic
domains

IT system
configuration andoperation● Become top-class

IT group in ASEAN
region● Hone global
strengths,
emphasizing
payment settlement/banking/ERP
solutions

Growth Strategy/Business Strategyof the Group

Company where diverse
human resources, reliable,
proud and carrying
a sense of solidarity,● Strategic Partnership Business: Lay

Service domains

Fiscal 2018

Fiscal 2021

35%

50%

IT domains

Service domains

Above

70%

14

Working toward Medium-Term Management Plan Targets 1

We are off to a great start in terms of business results and various measures based on groupmanagement policy are, overall, more or less on tract despite a few issues of concern.
Overall Summary of Fiscal 2019
Fiscal 2019 Group Management Direction

Fiscal 2019
● Strategic domain ratio moved briskly upward, hitting 42%, or 7 points higher year on year. Emphasized concentration on core businesses.

△● Gross profit margin improved to 22.5%, reflecting
enhancement upgrades and efforts to reinforce
order profitability.

△

Focus on forte fields and key client businesses,
eliminate unprofitable projects, implement
enhancement reforms, and improve order profitability
in good business environment

Expand business domains established throughcooperation built over time with overseas partners inline with global strategy and pursue strategic
investments

Boost motivation and reinforce humanresource management
Strive to create framework and corporate culture inwhich employees—the driving force behind theGroup’s growth—can thrive, and steadily realize
measures described in personnel manifesto○

42%● Continued to strengthen ties with existing targetsof capital participation while pursuing new alliances.
● Accelerated business expansion through fusion ofmarketing channels and technologies as well as
creation of joint schemes involving TIS.

Fiscal 2020

Fiscal 2021

1. Strategic Partnership Business

3. Business Function Service

For clients at the top of their industry, we will draw on industry foresightand business knowledge that other companies cannot match—ourbusiness tools—to explore and promote business strategies with clientsand underpin business basics.

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

Desired Status
Building strong business partnerships to help clients expand operations
by jointly exploring business strategies and identifying and solving
business-related concerns.

Desired Status
Complementing IT Offering Service with new businesses to enhance
efficiency, mainly through automation, and providing high-value-added
services to clients.

2. IT Offering Service

4. Frontier Market Creation BusinessWe will combine leading-edge technologies and know-how accumulated
as a corporate group to create and quickly provide IT solution services
that anticipate client needs.

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

Desired Status
Allowing TIS INTEC Group strengths to blossom under IT Offering Service
banner; switch from labor-intensive style to non-price competition,knowledge-intensive style.

Desired Status
Creating new markets that become pillars of business for the Group.

Progress of Structural Transformation Strategy 2Turn service-style business—at the heart of IT Offering Service—into growth engine and vigorously leverage global businessgrowth by expanding accumulated strengths, taking a robust approach to investment and emphasizing open innovation.
Net sales moving in favorable direction. Operating income sluggish due to prior investment phase, but going forward,emphasis will be on boosting income.

○● Encouraged employees to reach for their own
career goals. Took steps, as planned, in line withTIS’ Human Resources SBU manifesto. Graduallyextended approach groupwide.

Net Sales¥117.6 billion ¥120.9 billion¥100.6 billion○

Operating Income

Medium-term
management plan
initial targets¥120.0 billion[Estimate]● “G20” project to elevate head office functions
moving along as planned.
● Formulated OUR PHILOSOPHY and promoted
sustainability-related activities, including identification of materiality.

Fiscal 2019

[Estimate]

Fiscal 2020

Medium-term
management plan
initial targets¥13.00 billion[Estimate]● External recognition, such as METI’s “White 500”
companies with excellent health and productivity
management programs.

Fiscal 201815

Fiscal 2019

Status of Service-Style Business

Pursue activities to enhance management
practices and boost efficiency
Steadily implement “G20” project to elevate head
office functions, and study and declare key
sustainability issues

40%

Fiscal 2018

● Sold subsidiaries following review of businessportfolio.
● Able to hold unprofitable projects to relatively low
level, but development loss ratio settled at 0.9%,
just off the 0.8% target.

45%

35%

ActualEstimate

50%

Growth Strategy/Business Strategyof the Group

Selectively invest in growth and forte fields to turnservice-style businesses into growth engines

Promote growth strategy aimed at becoming
a top-class IT group in ASEAN region● Service IT exceeded target, driven by demand for
payment settlement, ERP and network solutions.
Launched businesses requiring prior investment,
including token requestor service.
● Quantitative transformation required to achieve
medium-term targets, such as steady improvementin profitability on service-type businesses.

Robust prior investment to create
new services

Added-value and productivity improvements
in domains of expertise

Charting Growth in Strategic Domain Ratio(Net sales basis)

Looking Back on Fiscal 2019

Charge forward on switch toservice-style business
Push vigorously ahead on structural transformation,seeking new set of values and style emphasizing speed
and flexibility as well as knowledge-intensive stylebusiness structure

Progress of Structural Transformation Strategy 1
Medium-Term Management Plan (2018-2020) guiding structural transformation with sense of speed toward success ofGroup Vision 2026. Concerted effort to build content in strategic domains.
Favorable progress, with ratios in Strategic Partnership Business and IT Offering Service charging upward. Maintain
concentration on core businesses.

Fiscal 2021

¥8.13 billion¥8.50 billion

8.1%

7.2%

Fiscal 2018

Fiscal 2019¥9.20 billion[Estimate]

7.6%

Fiscal 2020

10.8%

Fiscal 2021

Anticipated Core Composition of Net Sales(Billions of yen)

Fiscal 2018

Fiscal 2019

Fiscal 2020 (Estimate)

Payment

10

15

20

StatusDevelopment aimed at introduction of credit SaaS-type services
will drive growth.

ERP

28

28

28

Maintain high level through response to system upgrade demand.

Data centers/cloud/networks

42

42

42

Existing data center business will shrink and cloud will attract
more interest.
16

Working toward Medium-Term Management Plan Targets 2
Further improvement in ROE
Further improvement in ROE
TIS has always adhered to management practices conscious of capital cost, and set a target of 12% for return on equity(ROE) by March 31, 2021, as a key performance indicator measuring return exceeding capital cost. To reach this target, we
will seek more appropriate capital composition and enhanced capital efficiency, with efforts to promote growth investment, maintain financial health and strengthen return to shareholders—all in the right balance.
Promote growth investment● Pursue growth investment activity, such as prior investment and M&As, more robustly.
Envision maximum ¥80 billion in investments over three years. Seek 50% contribution
from strategic domains and operating margin of 10% through structural transformation.

Promotegrowthinvestment

Maintain financial health● Keeping in mind goal to maintain A rating, ensure equity ratio above 50% and allow
debt-to-equity ratio around 0.5 times.

Maintainfinancialhealth(Fiscal 2018)

Net income ratio

ROE

12.0％

×
Total asset(Fiscal 2018)

×(Fiscal 2018)

turnover ratio(Fiscal 2021)

Financial leverage

Investment Strategy

6.7％

5.1％
1.15
1.70

(Fiscal 2021)

stable dividend growth.

● Set upper limit on treasury stock holdings to 5% of total number of issued shares, with excess of this amountcancelled.

Total return ratio (yardstick)

Payout ratio (yardstick)Upper limit on treasury
stock holdings at(up from 35%)

(by March 31, 2021)(excess cancelled)40%

Payout ratio(Fiscal 2021)

Slight rise
(Fiscal 2021)

40%
35%

31.9%
19.0%

16.6%

44.7
15.9
28.7

51.9
20.9
30.9

Fiscal 2016

Fiscal 2017

Fiscal 2018

paralleling growth investments

40.0%

3.42

ActualEstimate

22.8%

Fiscal 2020
[Estimate]

Medium-term
management plan
initial targets

405.6

420.7

425.0

[Estimate]

Medium-term
management plan
initial targets

430.0

40.0

[Estimate]

38.0[Estimate]

9.0%

9.4%

43.0

[Estimate]

32.7

10.0%

Operating margin

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

shareholding ratio)

Net Income Attributable to Owners of the Parent Company
Investment Management Policy

27.1

26.0

[Estimate]● Investment in software for creating new services: ¥7.5 billion● Investment in personnel to promote structural transformation: ¥2.0 billion● Investment in R&D to obtain leading-edge technologies: ¥1.0 billion● Investment to growth strategic domains: ¥8.2 billion

Emphasis on investments aimed at promoting global
business, such as capital contributions in line with capitaland business alliances, including purchase of convertible
bond with stock acquisition rights issued by AnabaticTechnologies.

5.1%

6.2%

Medium-term
management plan
initial targets

29.0[Estimate]

11.5%

11.5%
[Estimate]

12.0%[Estimate]

9.9%

20.6

Investment Status (as of March 31, 2019): ¥18.8 billion

ROE

Medium-term
management plan
initial targets

Fine-tune investment management practices to capture appropriate return from robust investment activity
Carefully select investment targets, based on investment efficiency index and investment cost, andtoughen up rules for exit management

17

Fiscal 2021
[Estimate]

Operating Income● Pursue research into advanced technologies anticipating trends● Rev up open innovation● Invest in new companies to capture know-how and promote services● Increase investment into alliance companies (higher

8.70(Current Medium-Term Management Plan)

Fiscal 2019

8.1%

Investment to grow strategic domains(¥50 billion, including M&A)

2.90

6.72

5.94

Net Sales

constantly sharpen competitive edge

＋

11.60

10.86
4.14

10.14
4.20

[Billions of yen]strategic domains and advanced technology fields● Build human resources portfolio that facilitates best possible
deployment throughout Group

Investment in R&D to acquire
advanced technologies (¥5 billion)

30%

24.8%

Numerical Targets● Investment into development of own services● Allocate fixed percentage of business profits for investment and● Develop skills of human resources who will realize switch toInvestment in human resources to fuelstructural transformation (¥8 billion)

30.5%

6.28
2.85

Key Investment Objectives (envisioned)

Software investment to create new services(¥17 billion)

40%
39.0%

22.7%

● Pursue growth investment activity, such as prior investment and M&As, more robustly to fueltransformation of business structure. Envision maximum ¥80 billion in investments over three years.

5%

Total return ratio ■ ■ Total dividends ■ ■ Acquisition of treasury shares[Billions of yen][Billions of yen]

Improved profits through progresson structural transformation

Greater improvement in equity
ratio offset by new acquisition ofinterest-bearing debt

30%

35.3%

Slight drop Increase in business assets(Fiscal 2018)

Investment Policy● Raise total return ratio yardstick to 40%, from 35%. Aim for dividend ratio of 30% by fiscal 2021 throughGrowth Strategy/Business Strategyof the Group

Picture of ROE Success

9.9％

Strengthen return to shareholders● Raise total return ratio yardstick to 40%, from 35%, and then aim for payout ratio of
30% by fiscal 2021 through stable dividend growth.
● Set upper limit on treasury stock holdings to 5% of total number of issued shares, withexcess of this amount cancelled.

Strengthen
return toshareholders

Basic Policy on Return to Shareholders

6.4%

6.7%

Fiscal 2020

Fiscal 2021

Net income to net sales ratio

Fiscal 2018

Fiscal 2019

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021
18

Message from the Executive Vice President

We will leverage structuraltransformation and work
toward higher corporate
value, underpinned by a“profit emphasis”
management policy.

Another year of record business results against a favorable business backdrop.
Off to a great start.
Summary of Fiscal 2019 Results*Please go to page 23 for details on business strategies and performances by segment.

Masahiko Adachi,
Representative Director,
Executive Vice President

If we look at the changes that affected operating income, theeffect of higher sales—¥3,480 million—and improved productivity—¥6,830 million—generated a ¥10,420 million increase ingross profit, with the gross profit margin rising 1.7 points, to22.5%. This absorbed an increase of ¥5,120 million in selling,
general and administrative expenses, which then left operating
income ¥5,300 million higher than a year ago. The upwardchange in selling, general and administrative expenses is largely
due to greater spending in support of structural transformation,
and we considered this to be a forward-looking allocation offunds from the perspective of upfront investment contributing to
growth in the medium term. Note that unprofitable projects in fiscal 2019 hovered at ¥2.2 billion, up about ¥400 million year on
year. This may be lower than in the past, but we accept with all
due sincerity the fact that we failed to hold the development loss
ratio within the predicted level of 0.8%, or about ¥1.8 billion, ona full-year basis. Going forward, we will be more thorough in ourefforts to control the appearance of unprofitable projects.

Operating Income Analysis, Increase/
Decrease Reasons−5.12(Billions of yen)

Increased SGA
Improved expenses
profitability

32.74

Increased sales ＋6.93

＋3.48

38.04
＋5.30
（＋16.2%）

Increased gross profit＋10.42Gross profit margin

22.5%

Actual(YOY change +1.7 points)

Fiscal 2018

Fiscal 2019

Prior investment costs incurred in promoting structural transformation: YOY change +¥750 million

Fiscal 2019: Performance Highlights
ActualEstimate

Net Sales(Millions of yen)

YOY change:+¥15,121 million [+3.7%]
Compared with estimate: +¥6,769 million [+1.6%]

405,648

Net Income Attributable to
Owners of the Parent Company

Operating Income(Millions of yen)

YOY change:+¥5,300 million [+16.2%]
Compared with estimate: +¥3,043 million [+8.7%]

420,769

414,000[Estimate]

38,04332,743

9.0%

MarginFiscal 201819

Fiscal 2019

Fiscal 2018

YOY change:+¥5,413 million [+26.3%]
Compared with estimate: +¥2,734 million [+11.7%]

Fiscal 2019

YOY change:+¥66.39 [+27.5%]
Compared with estimate: +¥34.28 [+12.5%]

307.8323,30020,620

5.1%[Estimate]Net
income tonet sales
ratio

Fiscal 2018

ROE

(Yen)

26,03435,000[Estimate]

8.1% Operating

Net Income per Share(Millions of yen)241.44273.55[Estimate](%)

YOY change:+1.6 points
Compared with preliminary calculation: +1.3 points

11.5
9.9

10.2
[Current
calculations]6.2%

Fiscal 2019

Fiscal 2018

Fiscal 2019

Fiscal 2018

Fiscal 201920

Growth Strategy/Business Strategyof the Group

Fiscal 2019, ended March 31, 2019, was the first year of Medium-Term Management Plan (2018-2020). A good operating environment created a favorable tailwind that we rode to a solid landing, exceeding initial performance targets. Net sales increased
for the ninth straight year and operating income grew for the eight straight year, marking all-time highs. We are definitely off to agreat start.
Under good operating skies, we accurately identified client needs in sectors where the trend toward IT investment is particularly
strong. This translated into a 3.7% increase in net sales, to ¥420.7 billion, which was 1.6% more than our original target. Operating
income jumped 16.2% year on year, to ¥38.0 billion, or 8.7% better than we had expected, pushing the operating margin to 9.0%,
compared with 8.1% a year ago. Net income attributable to owners of the parent company followed suit, climbing 26.3% year on
year, to ¥26.0 billion, or 11.7% more than projected.
By key segment, the drivers of growth were the Service IT Business, which benefited mainly from wider demand for payment
settlement-related services and ERP upgrades, and the Industrial IT Business, which enjoyed a positive shift in demand due to growing IT investment by a wide range of client groups, including companies in the energy business. The BPO Business and the Financial
IT Business posted lower sales, but the downturn reflects, for BPO, a significant impact from the fourth-quarter sale of consolidated
subsidiaries as part of management’s policy of concentrating on core operations and for Financial IT Business, a reactionary drop following the end of some large development projects. Operating income was up year on year in all segments, with a notable increase
for the Industrial IT Business, thanks to the success of measures to boost profitability, including a review of transaction margins andsteps to enhance productivity.

The “profit emphasis” management policy will become a major driving force, steadily pushingcorporate value higher.

We will make steady progress toward the targets stated in our medium-term management plan.

Toward further improvement in ROE

Business sentiment for fiscal 2020 is rather uncertain, but the operating environment for the TIS INTEC Group is expected tocontinue to shift in a favorable direction, reflecting greater interest in digital management and a stronger trend toward IT
investment by companies keen to realize management strategies based on robust use of IT.
Against this backdrop, the Group will work energetically on various measures, making steady progress toward Medium-Term
Management Plan (2018-2020) targets, based on stated management direction. We anticipate higher sales and income on aconsolidated basis in fiscal 2020, with net sales inching up 1%, to ¥425 billion, operating income rising 5.1%, to ¥40 billion, theoperating margin improving 0.4 point, to 9.4%, and net income attributable to owners of parent increasing 4.1%, to ¥27.1
billion. These estimates assume a net sales impact totaling about ¥12.0 billion, comprising about ¥6.0 billion from the sale ofsubsidiaries at BPO and others, and another ¥6.0 billion due to a drop in demand for system development following completionof large projects at Financial IT Business. Also, for operating income, we are assuming an increase of about ¥2.5 billion earmarked
for robust upfront investment to leverage structural transformation. We are aiming for a gross profit ratio of 23.1%, up 0.6 pointfrom fiscal 2019, which would see us achieve our target of 23%, which was internally assumed on the expectation of an
operating margin of 10%, a year ahead of schedule.

Throughout the TIS INTEC Group, we emphasize management practices conscious of capital costs, and the medium-term
management plan describes a target of 12.0% for ROE as a key performance indicator measuring a return that exceeds capitalcosts. To achieve this target, we will seek a more appropriate capital composition, underpinned by efforts to promote growthinvestment, maintain financial health and strengthen return to shareholders—all in the right balance.
ROE for fiscal 2019 reached 11.5%, up 1.6 points from fiscal 2018, putting us ever so close to our 12% target. The biggest
factor for this was better business results and, subsequently, improved profitability. Taking advantage of our transition to an
operating holding company in July 2016, we accelerated decision-making and delivery of strategies groupwide. This fueled thesuccess of various measures, not limited to reducing the number of unprofitable projects, which had been a major issue, but
extending to enhanced KPI management, including verification of potential profitability at time of order receipt and improved
productivity in enhancement domains. In addition, we were able to implement the profit emphasis more thoroughly, exemplified
by a careful review of the business portfolio from a profitability perspective. Comparing key numbers for fiscal 2016—which
preceded the transition to an operating holding company—with the most recent fiscal year, that is, fiscal 2019, shows significant
growth across the board. But what is particularly noteworthy is how fast the gross profit margin improved. Achieving 22.5% in
fiscal 2019 means the inherent strength—the success factor—of our businesses is more robust. Consequently, earnings per share
has more than doubled over the past three years, driving ROE higher. The profit emphasis has steadily propelled corporate value
higher, and I feel it will continue to generate good results. Also, this breeds a positive cycle, represented by the fact that TIS’ total
shareholder returns over the last five years exceed TOPIX (Tokyo Price Index) and results reported by industry rivals.
From this point forward, if we can realize structural transformation as planned, we will take profitability to new heights,
which in turn fuel progress toward the 10% target we have set for operating margin, as per the medium-term management plan,
as well as the 12% target for ROE. This will be our new starting point—a launchpad for the next medium-term management
plan—and even higher targets.
To meet the expectations of our stakeholders, we will continue to promote structural transformation through steady
implementation of various measures and work toward achievement of Group Vision 2026, which guides us through the current
medium-term management plan and beyond, and then leads us to higher corporate value. I ask for the continued support ofshareholders, investors and other stakeholders as we work toward new success.

Group Management Direction in Fiscal 2020
Robust prior investment to fuel business expansion and structural transformation
Selectively invest in growth fields and areas of expertise to turn service-style businesses into growth engines
2 Promote measures and review business portfolio with view toward higher profitability
Concentrate on forte fields and key client businesses, eliminate unprofitable projects, emphasize order profitability and thoroughly implement
enhancement reforms
3 Promote growth strategy aimed at becoming a top-class IT group in ASEAN region
Expand business domains and pursue strategic investments through cooperation built over time with overseas partners in line with global
strategy
4 Boost motivation and take human resource management to higher level
Strive to create framework and corporate culture in which employees—the driving force behind the Group’s growth—can thrive, and steadily
realize measures described in personnel manifestos
5 Realize enhanced management practices and higher efficiency
Instill widespread awareness of unified, groupwide management, based on OUR PHILOSOPHY, promote “G20” project to elevate head office
functions, and kick off new system “GAIA”
1

Fiscal 2020 Performance Forecast

Fiscal 2020 (plan)

YOY changes

Net Sales¥425,000 million+¥4,231 million [+1.0 %]Operating Income¥40,000 million+¥1,957 million [+5.1%]

Operating Margin

9.4%+0.4 points¥27,100 million+¥1,066 million [+4.1%]

6.4%+0.2 points¥324.10+¥16.27 [+5.3%]

11.5%(current calculations)+0.0 points

Net Income Attributable to Owners of Parent Company
Net income to Net Sales Ratio
Net Income per ShareROE

We will enrich return to shareholders matched to growth in business results, based on a 40% total
return ratio.

350
CAGR (Compound Annual Growth Rate) of Key Figures
Fiscal 2016

Fiscal 2019

Changeduring three years

382,689

420,769+38,080

3.2%

250Gross Profit Margin

18.4%

22.5%

+4.1 points‒

Operating Income
200Operating Margin

24,43638,043+13,607

15.9%

6.4%

9.0%

+2.6 points‒

Net Income Attributable to Owners of the Parent Company
150
Net Income per Share (Yen)

12,67826,034+13,35627.1%

145.22307.83+162.61

28.5%

100ROE

7.0%

11.5%

+4.5 points‒(Millions of yen)300
Net Sales

2018

2019

2020

2021

2022

Total shareholder return (TSR)

Return to shareholders

350

TIS’ basic policy is to keep internal reserves at a level sufficient to ensure business
Fiscal 2019
Fiscal 2020
growth from a medium- to long-term perspective, while continuing to pay a stable
Annual¥70¥80
dividend in consideration of consolidated financial results. Based on this policy, we(YOY change: +¥30)
dividends per(YOY change: +¥10)
Comparedwithshareseek to enhance return to shareholders by boosting the total return ratio yardstick, toestimate: +¥10)
40%, from 35%, during Medium-Term Management Plan (2018-2020) and then realAggregate acquisition
Total acquisition
Acquisition ofamountamountize a payout ratio of 30% by fiscal 2021 through stable dividend growth.
treasury share¥4.2billion¥4.1billion
The annual dividend for fiscal 2019 was higher than in fiscal 2018, extending the
Total return ratio
dividend growth for the seventh consecutive year. And given better-than-anticipated
39.0%
40.0%
business results, we increased the year-end dividend by ¥10 per share, to ¥70 per
share from the initial plan of ¥60 per share. Consequently, the total return ratio hit 39.0%, accounting for the repurchase of
809,100 shares of treasury stock for ¥4.2 billion.
Looking to fiscal 2020, we intend to pay an annual dividend of ¥80 per share, up 10% from fiscal 2019, for a payout ratio of
24.8%. The total return ratio will hover near 40%, accounting for the repurchase of 749,800 shares treasury stock between May
and July 2019 for ¥4.1 billion.

300

21

2017

Compound annual growthrate (CAGR)

250

TIS

273.8%
255.6%

NRI

200.9%
192.2%

200
150
100

321.7%
308.4%

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

NTT-D
CTC
SCSK
NSSOL

161.1%UNISYS147.1%

Dividend included
TOPIX

Fiscal 2019

Source: Based on fiscal 2019 securities report of each company
22

Growth Strategy/Business Strategyof the Group

Performance Forecast for Fiscal 2020

Business Strategies and Performances by Segment

Service IT Business

BPO

Provides original knowledge-intensive IT services leveraging TIS’ service and industry know-how to create
universalized, template-oriented solutions for clients (includesdefault configuration and ERP).

Draws on Group’s extensive service menu and IT know-how to deliver business process outsourcing (BPO)
services, including marketing and sales services and office and contract operations.

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

● With priority allocation of management resources toward growth engines and use of advanced● Improve gross profi t ratio on existing entry services through BPO concentration effect and businesstechnologies, expand business (IT Offering Services) through shift toward business anticipating priorinvestment by clients● Watch for changes in structure of payment settlement business and expand prior investment style services

not only for debit and prepaid card transactions but for credit card transactions as well

Segment sales include intersegment sales.

ActualEstimates

Operating margin

120,900

13,000

8,519

8,300

8.1%
7.2%

Fiscal 2019

Fiscal 2020

ActualEstimates(Millions of yen)

Initial estimates

120,000

8,139

Fiscal 2018

(Millions of yen)

Operating Income

Fiscal 2021

Fiscal 2018

Fiscal 2019

9,200

Actual

38,25736,23139,000

10.8%

3,000
2,000

31,800Fiscal 2021

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Expanded payment settlement-related business and greater ERP replacement
demand covered prior investment costs aimed at strengthening business. Led
to higher segment sales and income year on year. Exceeded target.

●Sustained trend toward greater use of cloud services. Domestic security

Segment sales relatively stable, but sale of subsidiaries had significant impact,
causing year-on-year decrease. Missed target. Segment income was up year
on year, owing to tougher measures, such as review of transaction profitability, but still came in below target.

market should continue to present high demand.
●Structural changes in payment settlement market parallel progress

toward cashless society in Japan. More companies in wide range ofbusiness sectors pursuing robust IT investment activity.
From now

Branded debit card-related
Service provision/systemdevelopment results
Domestic market share

23

About

80%

There are about 440 million debit cards
affiliated with an international brand inJapan. Settlement transactions havereached about 260 million per year, with anaggregate value of about ¥1.4 trillion.
The TIS INTEC Group boasts anoverwhelming share—about 80%—of themarket, on a transaction-handling financial
institution basis, through such solutions as
DebitCube+, which provides one-stop
access to services required or branded debitcard issuance and operation.

Fiscal 2019

Fiscal 2020

Fiscal 2021

Understanding the External Environment●Growing demand for BPO services that help companies improve

operations on an administrative level.
●Greater need for digital innovation due to prolonged labor shortage

and progress in workstyle reform.
●Impact, mainly from requests for lower prices on existing BPO services,

Fiscal 2020 Performance Forecast
Despite year-on-year drop in sales due to sale of subsidiaries, operating income
should rise, reflecting efforts to improve profitability through restructuring
based on thorough profit management and a shift toward high-level, combined
BPO services.

Promoting cashless
settlement in Japan

Example of IT services in the TIS INTEC Group
portfolio that help support clients’ businesses,
the lifestyles of individuals and social
infrastructure

7.0%

6.3%

4.3%

Fiscal 2019 Performance Results

To date

2,000

1,843

5.1%

7.6%

Understanding the External Environment

Will take advantage of IT investment activities in growth fields, such as thecloud and networks, as well as expanding payment settlement business and
ERP demand to absorb cost burden of prior investments. Should lead tohigher sales and operating income.

(Millions of yen)

Initial estimates

43,000

1,638

Fiscal 2020

Operating margin

Initial estimates

Fiscal 2019 Performance Results

Fiscal 2020 Performance Forecast

Estimates

a cause for concern.
To dateFrom now

Support centralized information
management at financial institutions and raise efficiency
and sophistication of operations

Supporting greater operating
efficiency in e-commerce

F3 (F Cube)

System configuration andoperation track record

Data entry services

38 of 64 banks

Number of connections

Annually

CRM implementation(regional banks)

Of note, share of top 30 regional banks(total funds) at 80%.
F3 CRM System for financial institutions
has been installed at more than half of theregional banks in Japan. In addition,
demand for a cloud-based application is
rapidly expanding, with overall delivery of
the F3 series reaching more than 90
financial institutions.

EDI

About

100,000

ID connections

Electronic data interchange (EDI) services
are used in a range of industries, and ourapproximately 100,000 ID connections
make us the market leader. We also haveextensive experience in developing andoperating enterprise EDI platforms swiftly
tailored for internet EDI.

Helping to promote management
strategies using BPO services toboost productivity

Handling volume

About

80 million entries

The TIS INTEC Group is the expert indomestic BPO services, with more than 50
years of history in the field.
Data entry services, facilitated primarily
through top-class systems in Japan andnetworks at home and abroad, havereached about 80 million entries a year.

24

Growth Strategy/Business Strategyof the Group(Millions of yen)

Net Sales

Initial estimates
100,603drawing on shift to high-level, combined BPO and use of forte business knowledge and advanced
technologies.

Operating Income

Estimates

117,617 116,500● Expand business and boost profi tability (Business Function Service) through more sophisticated BPO

Segment sales include intersegment sales.

Net Sales
Actualrestructuring

Financial IT BusinessIndustrial IT Business

Leverages business and operating know-how specific to the financial sector to raise value-added quality ofclients’ operations, expand use of IT, and provide IT-based support for operations.

Utilizes business and operating know-how specific to non-finance industries to raise value-added quality ofclients’ operations, expand use of IT, and provide IT-based support for operations.

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

● Expand business (Strategic Partnership Business) by strengthening connection to extensive client base of● Expand business (Strategic Partnership Business) by strengthening connection to extensive client base in● Increase provided value by utilizing Mode2 and other digital innovations as well as AI and other advanced● Increase provided value by utilizing Mode2 and other digital innovations as well as AI and other advanced

credit card companies, banks and insurers, and creating business together

technologies, and boost profi tability by promoting measures, such as enhancement innovation activities, toimprove productivity

Segment sales include intersegment sales.

106,436 104,500(Millions of yen)

108,100

ActualInitial estimates

Estimates

12,797100,000

11,331Net Sales

Operating margin

11,800(Millions of yen)

ActualEstimates

Initial estimates

13,40012,000Operating Income

189,595

176,485(Millions of yen)

180,000

192,500

ActualInitial estimates
185,000

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019 Performance Results
Despite year-on-year decrease in sales due to reactionary drop on large
development projects, segment exceeded target, driven by trend toward greater IT
investment by core clients, particularly those in credit card sector. Segment income
was up year-on-year and surpassed target, thanks to enhanced productivity.

Initial estimates
14,500

8.1%

7.8%

6.5%

Fiscal 2019

Fiscal 2020

Fiscal 2021

●Expect expanding demand related to cashless payment settlement,

including reward points, paralleling hike in consumption tax.
●Banks, especially megabanks, resuming IT investment efforts, tounderpin business reforms.

Despite reactionary drop in sales associated with large projects, operating
income should increase year on year, reflecting efforts to strengthen ties tocore clients, engage in value-added services and improve productivity.

(Millions of yen)

12,500
7.8%

12.0%

Understanding the External Environment

Fiscal 2020 Performance Forecast

15,60014,777

10.6%

Fiscal 2019

Operating margin

11,509
12.4%

12.0%

Fiscal 2018

Estimates

To dateFrom now

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019 Performance Results

Fiscal 2019

Fiscal 2020

Fiscal 2021

Understanding the External Environment

Sales and income up year on year, owing to greater IT investment by a wide
range of client groups, including companies in the energy business. Exceeded
target.

●Sense of uncertainty about business climate for some members of

manufacturing sector but IT investment needs for clients keen toembrace digital management, including use of AI, IoT and other new
technologies, should remain firm.

Fiscal 2020 Performance Forecast●IT investment associated with electric power/gas system reform should

Will absorb reactionary drop from large projects with high-value-added services
underpinned by consultations and enhanced upstream operations and byboosting productivity, which should lead to higher sales and income year on year.

stay a high level, underpinned by projects related to corporate splits.
To dateFrom now

Note: Paralleling a change in know-how used in services provided to specific clients—from industrial IT to financial IT—transactions with such clients were booked underindustrial IT in fiscal 2018 and financial IT in fiscal 2019.
Supporting safe and secure,daily credit card settlement

Credit cards

Core system development
results

Example of IT services in the TIS INTEC Group
portfolio that help support clients’ businesses,
the lifestyles of individuals and social
infrastructure25

Domestic market share

About

50%

(On annual transaction volume basis for clients served)

Of 25 companies in Japan with significant
consumer credit transaction volumes, 10
are in the Group’s client base for coresystem development.
Credit extended for card-facilitatedpurchases has reached ¥67 trillion in Japan.
The 10 companies that are in the TIS INTECGroup client base have aggregate
membership of about 190 million people
and credit transaction volume representing
about 50% of the total market.

Aiding new entrants tothe deregulated
power market

Highly evaluated as restaurant
sector-specific shop
management system

EneLink

TastyQube

Usage

System implementation

Share of switchers in Japan
About

40%

EneLink is the choice of about 40% of users
switching to PPSs since deregulation ofJapan’s electricity retail market began in
April 2016. In addition, the lineup is being
expanded to meet wider market
participation, including new entrants into
city gas and aggregation businesses*1.

20%

Contributing to stable insurance
system platform creation

For Federation of
National Health Insurance Associations
Track record in system implementation/operation/
maintenance(Top 200 companies in the restaurant sector)

12 of 47 prefectures

TastyQube is highly versatile and can beapplied to any restaurant format, helps tovisualize shop operations, and realizes
enhanced operating efficiency.
The solution has been applied to about
20% of market share, mainly forrestaurants, cafes and pubs.

Of the 47 prefecture-based members of theFederation of National Health Insurance
Associations in Japan, the TIS INTEC Grouphas been tapped to install, operate andmaintain systems for 12 members.
About 6.1 million people are covered bythese 12 insurance associations.

About*1 Optimum control by bundling energy sources, such as storage batteries, power-generation facilities anddemand-response providers, to stabilize the grid and avoid output control on renewable energy.

26

Growth Strategy/Business Strategyof the GroupOperating Income

Estimates

106,655

technologies, and boost profi tability by promoting measures, such as enhancement innovation activities, toimprove productivity

Segment sales include intersegment sales.

Net Sales
Actualindustry and public sectors, and creating business together

Strategies for Payment Settlement Business

Leveraging our strengths to accelerate business development andrealize a cashless society
Our major strengths are the experience, technology, know-how, and abundant human resources we have cultivated overmany years handling development and operation of core systems for major credit card companies. Deploying thesestrengths, we have established a position as the leading system integrator in the domestic settlement field.
Amid recent advances in cashless payments, conditions in the payment settlement market are changing dramatically
due to progress in smartphone and other related technologies, the entry of companies from different sectors, and therise of FinTech companies. Viewing this situation as a new growth opportunity, we develop and operate core systems for
major credit card companies, which represent an important foundation of our business. We are also deploying our
PAYCIERGE digital payment platform to accelerate business development.

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

Cashless payments (¥ trillions) and cashless payment ratio (%)

Combination of cashless payment methods

80.0%(¥trillions)

100

40.0%
50

Supporting safe and secure,daily credit card settlement

Credit cards

Domestic market share

About

50%

(On annual transaction volume basis for clients served)

Branded debit card-related
Service provision/systemdevelopment results
Domestic market share

About

80%

■ PAYCIERGE digital payment platform
PAYCIERGE is a comprehensive, highly convenient, and reliable payment solution for all people who require retail payments.

20.0%
11.9%
0

2008
Electronic money

Future2016

2025

Credit card

Debit card

Cashless payment ratio<Payment method>

Contact typePrepaidNon-contact
type

Instant debit

Code reading
type

After pay

Source: TIS Compiled based on Cashless Vision (Ministry of Economy, Trade and Industry, April 2018)■ Next-generation card processing service, CreditCube+
Alongside advances in cashless payments:

Collects, analyzes, and utilizes detailed data
related to payment information, consumption
behavior, and the like in order to attract
customers and create new services.

● Increasing entry of companies from different industries into the cashless paymentbusiness● Increasing need for in-house operation of credit card business

Concept

Features

Providing core functions for credit cardbusiness in shared-use format

Leveraging our past experience andexperience, we provide credit card functions
as a core service that can be shared bymultiple issuers, who can also share their
responses to legislative changes.

Providing card products and functions
tailored to customers’ businesses

Swift, low-cost responses based onabundant standard functions that covermarket needs.
● Providing functions/services as components● Low-cost, speedy introduction● Addresses customer demand for moreadvanced services● Flexible to open innovation● High profi tability (lower system costs)● Enhanced conventional functions

Advantagesof adoption● Expandability and fl exibility thanks to micro-services● Open API enables new services and businesses● Enhanced staff allocation effi ciency thanks to cloud(Reference) Difference between vendor-developed information system and shared-use information system (image)

Vendor-developed information system

We have a particularly strong competitive advantage in the fi eld of “digital account services,” which enable us
to provide all sorts of processing services, including prepaid, instant debit, and after-pay credit.
Among these digital account services, here we introduce CreditCube+, which provides the total environment necessary forcredit card issuing operations. We are preparing for the launch of CreditCube+, which takes full advantage of the technologies
and know-how of the core credit business system, CreditCube.

27

Company A

Company B

Company C

SystemSystemSystemShared-use information system
Company A

Company B

Company C

SystemTIS
The vendor designs and develops systems at the request ofeach company according to individual specifications, thenprovide the systems to the relevant companies.

TIS
Systems are built as platforms with common specifications,then provided to multiple companies in service format.

28

Growth Strategy/Business Strategyof the Group

Core system development
results

Promoting cashless
settlement in Japan<Interface>Global Business Strategy

Business domain expansion and strategic investment to create oneof the ASEAN’s leading IT consortiums■ Key M&A Targets in Recent Years, Capital/Business Alliance Results

Step3:

Step1:

Expansionin China

Expand global business in ASEAN region
through capital and business alliances andaccelerate area development

Step2:

Three-point
expansion in
Thailand, Singapore,
Vietnam+Acquire/invest in promising products
and state-of-the-art technology● Prioritize areas of retail payment settlement, banking and ERP,

and emphasize greater cooperation between locations● Invest in promising products and the most advanced
technologies in the West (Europe/U.S.), China and ASEAN● Actively leverage strategic investments and expand portfolio● Work to develop and expand scope of global human resources

Payment settlement/banking/ERP
solutions

Capital/business alliance

ChannelAnabatic
Indonesia

MFEC
ThailandAugust 2018
Increased
investment stake+ purchased
corporate bonds

December 2018
Increased
investment stake

Thailand

VietnamJune 2018
Formed capital/businessalliance

SQREEM

May 2019
Formed capital/business alliance

ASEAN

AI technology targeting human behaviour<Business scale>
about

R3

¥57.0billion*

Block chain<Network>
countries,

CardInfoLink*Aggregate net sales ofsubsidiaries and affi liates
accounted for by the equity
method in ASEAN region

PromptNow

7

71companies

Capital and business alliance in July 2015. Increased stakein August 2018, along with purchase of corporate bonds.
Indonesia-listed, top-tier local IT company.

MFEC Public Company Limited(Equity-method affiliate = 24.9% stake)

Capital and business alliance in April 2014. Increased stakein December 2018.
Thai-listed, leading provider of enterprise IT solutions.

I AM Consulting Co., Ltd.
(Consolidated subsidiary = 99.9% stake)Net sales: ¥41.8 billion

Net sales: ¥11.5 billion

Net sales: ¥2.6 billion
Turned into consolidated subsidiary in June 2014.
Thai-based consulting group producing total SAP-related IT solutions.

TinhVan Technologies JSC.
(Equity stake: 19.9%)

Capital and business alliance in June 2018.
Leading IT service provider with considerable experience introducing solutions toVietnamese government and financial institutions.

SQREEM TECHNOLOGIES PTE. LTD.
(Equity stake: 6.8%)

Capital and business alliance in May 2019.
A Singapore startup—the world’s largest behavioral pattern data aggregator—growing very
fast in fields of digital marketing and data analytics using proprietary AI technology based on
massive data collection.

R3 HoldCo LLC(Equity stake: 1.4%)

Capital and business alliance in June 2018.
U.S. technology startup boasting global-caliber results and brand in blockchain-related
technology for corporate users.

Shanghai CardInfoLink Data Service Co., Ltd.
(CardInfoLink)(Equity stake: 10%)

Capital and business alliance in September 2017.
FinTech company developing presence in China and around the world, with particularstrength in QR code payment settlement services.

PromptNow Co., Ltd.
(Consolidated subsidiary = 60% stake)

Turned into consolidated subsidiary in May 2016.
Leading FinTech company with multiple proprietary mobile services for financial
institutions.

*Net sales for fiscal year ended December 31, 2018, converted at exchange rate prevailing at year-end.
*Equity stakes current as of May 13, 2019.

Technology

I AM Consulting

TinhVanCapital/business allianceTechnology■ Leverage business domain expansion and strategic investments to become top-class IT
group in ASEAN region.

PT Anabatic Technologies Tbk(Equity-method affi liate = 30.5% stake)

June 2018
Formed capital/business alliance

Payment gateway

FinTechTopicsCapital and business alliance with Singapore startup developing AI technology to analyze human behavior patterns
In May 2019, TIS Inc. entered a capital and business alliance with SQREEM Technologies Pte. Ltd., a Singapore startup that has developed theworld’s first platform for analyzing patterns of human behavior. It combines proprietary AI technology with technology for gathering large volumesof data in order to analyze people’s behavior, along with the context and logic behind it. This used to be a hugely complex task that was
impossible to perform relying on humans alone. Using this platform, SQREEM has collected data on 450,000 behavior patterns from three billion
people in 60 countries. This has been tied to 150,000 items of product data to allow analysis of consumers’ personas and preferences, leading torollout of a digital advertising service that dynamically stimulates demand. SQREEM has used this technology for forecasting and analysis in a
number of other fields, including the prediction of election results, expansion of breast cancer treatment, development of corporate strategies,
identification of crime syndicates, detection of financial fraud, and market analyses.
By combining SQREEM’s global, industry-spanning experience and advanced AI technology with TIS’s operational know-how of finance,
manufacturing, and other industries, we aim to become a leading provider of data analysis services using IT in a variety of fields in Japan and
ASEAN to help clients gain better insights into customers, detect fraud, analyze markets, and so on.

Steadily leverage business domain expansion and strategic investments to build top-class IT corporate association in ASEAN region.
Going forward, continue to promote global business expansion through integration of alliance-reinforced customer base andleading-edge technologies.
29

30

Growth Strategy/Business Strategyof the GroupThe Group’s global expansion has rested on three pillars: the provision of local support for existing clients when they establish operations in other countries, the cultivation of local markets leveraging expertise developed in Japan, and the application in Japan of cuttingedge technologies derived from abroad to give us new edges in business. We first began developing a presence in ASEAN by establishing local subsidiaries, first in China and then in Thailand, Singapore, and Vietnam. More recently, however, we have accelerated our
expansion geographically by forming alliances with leading firms in the region. We have so far entered capital and business allianceswith such firms in Thailand, Indonesia, and Vietnam as we steadily build mutual understanding and ties to expand our coverage.
We see the acquisition of cutting-edge technologies and expansion in the global marketplace as key milestones, and we are
actively pursuing capital and business alliances with leading fi rms that possess these technologies. We are also making use ofcooperative schemes that integrate our strengths with those of our partners—their local customer bases and their cutting-edge
technologies—to accelerate our business expansion.
Moving forward, we will continue to make maximum use of alliances on both the channel and technology fronts, while developing operations that integrate our respective strengths and enhancing our network strengths across ASEAN, so as to build one of theregion’s leading IT consortiums.

Channel■ Expanding business by fusing client bases with cutting-edge technologies

New Technologies and R&D

Innovations that will generate future corporate value
The TIS INTEC Group is engaged in the information services industry, where market needs are changing as information
technology evolves. Responding swiftly to such market needs is key to maintaining and improving our competitiveness.
Our Group Vision 2026, “Create Exciting Future,” calls for us to utilize advanced technologies and know-how to realize
business innovation and market creation. To this end, we are working to generate innovation across the Group.
From a technological perspective, we put together our Technology Portfolio, which summarizes important technologies
on a two-dimensional axis. We then divided the Technology Portfolio into three areas to select core technologies andproceed with research and development.

Technology Portfolio
Well defined / short-term

Process
innovation

1

1

2

Technologies that contribute to new
business creation and existing business
reinforcement

3

Technologies that drive medium- andlong-term innovation

Technologies that enhance our productdevelopment competitivenessInitiative 1

Initiative 2
Robotics(roboticbase-core)

Natural language processing(doccano)Nobuyuki Matsui
ExpertStrategic Technology Center
Technology & Innovation SBU
TIS Inc.

Mitsuki Nakayama
Chief
Strategic Technology Center
Technology & Innovation SBU
TIS Inc.

New technological innovations, such as IoT, AI, and robotics, are in
the spotlight as key factors for realizing so-called “Society 5.0,”
which balances economic development and resolution of social
issues in advanced nations like Japan. In this context, we are conducting R&D on open source software (OSS) called RoboticBase™
with the aim of realizing a “service robot platform that connects
multiple service robots with varying functions and collaborates withcorporate and social systems in order to replace or expand humancapabilities.”
We are developing RoboticBase around an OSS IoT platform
called FIWARE, which has a proven track record in Europe. By
opening up the core part of the system and/or the OSS, we are
actively fostering the evolution of OSS ecosystems.
Currently, we are working jointly with the University of Aizu torefine RoboticBase. In the future, we hope to use the technology toresolve social challenges, such as last mile automation.

doccano is open source software for creating training data that isessential for machine learning. We started creating this software in
the course of developing automated machine learning technology.
With advances in automation technologies, we will ultimately live in aworld where good results can be obtained simply by providing data.
In such a world, efficient creation of data necessary for learning isparamount. Numerous companies and universities are already using
the technology and providing valuable feedback. By also expanding
the community as an open source, we are receiving cooperation fromoutside the Company in our development efforts. It is thought that,sometime in the future, not only professional engineers but also
application engineers and non-engineers will employ machinelearning. With this in mind, we are working to create environments inwhich anybody can undertake annotation efficiently, anywhere andanytime.

Initiative 3

Initiative 4

Growth Strategy/Business Strategyof the Group

Product
innovation

Not well defined / long-term

Below are some initiatives related to “ 3 Technologies that drive medium- and long-term innovation.”

Technologies that contribute to new business creation and existing business reinforcement
We actively use technologies owned by startup companies to increase the speed of commercialization.

2

Technologies that enhance our product development competitivenessWe develop and use on a Groupwide basis various software and processes for improving productivity and quality. These include Nablarch, aplatform for developing mission-critical enterprise systems.
Since the end of 2018, meanwhile, engineers from major Group companies have participated in canal, TIS’s reciprocal technical support
platform.

3

Technologies that drive medium- and long-term innovation
Aiming to resolve future social issues, we promote R&D with a focus on industry-academia-government collaboration. We engage in R&D that
ensures our ongoing competitive advantage in the future, while making PoC and products/services at an early stage, creating markets,
acquiring positions, and correcting core technologies.

The basic policy of open innovation is to accelerate and broaden our R&D outcomes in all areas.
Group Laboratory: Integrating the R&D departments of TIS INTEC Group companies
Using our community workspace WeWork to drive open innovation outside the GroupThe R&D departments of two Group companies, TIS Inc. and INTEC Inc., have combined tofunction as a “Group Laboratory” and established a community workspace called WeWork in
Tokyo (Otemachi, Chiyoda-ku). WeWork, which is manned permanently by employees from the
R&D departments of both companies, has three missions: (1) Strengthen our R&D capabilities,(2) Improve our market presence, and (3) Promote open innovation. While conducting joint
research and development, we aim to strengthen our research and investigation capabilities,
strengthen information dissemination and collaboration, facilitate the transition from research tocommercialization, and establish ecosystems for business creation.

31

WeWork in action (Marunouchi North Exit, Tokyo Station)

Financial AI research

Tatsuo Kitahashi
Advanced Technology Laboratory
INTEC Inc.

As part of our research into financial AI, we are conducting R&D on
using machine learning and deep learning technologies with the aimof building a business in helping companies in the financial andinsurance sectors to enhance their operational efficiency.
Currently, we are working with our business divisions to assess
the reliability of insurance industry vendors and detect fraudulent
payment claims. It is said that around 80% of data analysis PoCs do
not advance beyond the PoC stage. In this context, the Advanced
Technology Laboratory aims to develop practical AI that can be usedin business applications without stopping at PoC. In assessing thereliability of vendors, we received evaluations of PoC results from
customers and applied the results to their businesses.
To ensure that AI is applied in a practical manner, we are promoting a self-service analysis tool called Dataiku, and we are also
fostering AI-capable human resources through data analysis experience workshops using Dataiku. In these ways, we are raising our
AI-based technological expertise throughout the Company.

Business digitalization
research
Etsuko Ichida
Manager
Advanced Technology Laboratory
INTEC Inc.

Recent years have seen an increasing need for digitalization ofbusiness, and the trend is expected to continue in the future. In our
research into business digitalization, we are utilizing robotic process
automation (RPA), AI, and other advanced technologies to digitalize
business processes. Our aim is to improve value by enhancing theefficiency and quality of customers’ business operations. In one
current initiative, designed to digitalize large volumes of paper-based
processes, we are conducting R&D on original object recognition AI
technologies while also deploying existing technologies, such as RPA
and optical character recognition (OCR). Object recognition AI
technology is based on image recognition and machine learningtechnologies we have cultivated so far, and is used to extract specificinformation from forms. This allows data from complex and irregular
documents to be read.
So far, we have performed verification tests with multiple customers, including government agencies and apparel companies. We are
now conducting verification evaluations with a view to full-scalerollout. While monitoring potential customer needs, we will continue
taking data utilization into account as we promote services related tobusiness digitalization. Our aim is to help resolve social issues,
including shortage of human resources.

32

3

Deploying open innovation to expedite innovation

FintanIn 2018, TIS opened a service site called Fintan, which represents a
culmination of the Company’s SI and service development knowhow amassed to date. By promoting open innovation in this way, we
enable people to access the tools, processes, and know-how theyrequire from any location. All of the tools and processes used by the
TIS INTEC Group are available via Fintan site, and anyone can use
them for free.
(https://fintan.jp/) (Japanese only)

Advances in digital technologies are causing major social changes of paradigm-shift proportions, requiring swifter andmore flexible responses from businesses. In addition, startup companies possessing unique and superior technologies are
creating new business models that address social issues. This reflects vibrant “open innovation” initiatives based oncollaboration between different industries and joint efforts between industry, academia, and government. The TIS INTECGroup is taking various measures through open innovation with the aim of creating new businesses.

Deploying various mechanisms, we are collaborating in multiple fields to promote new businesscreation for businesses in initial stages (0 → 1) to growing startup companies.

*Fintan is a legendary figure in Celtic mythology who gains knowledge of all humanity.
The name has been used for this site to convey the idea of access to all sorts of systemdevelopment knowledge.

4

1

From conventional acceleration
programs to studio models

Offline communication space⇒ bit&innovation⇒ U-Studio

U-Studio is an open innovation platform for efficiently solidifying business ideas. It provides a mechanism for business co-creation with entities
at the seed stage (startup preparation) and/or idea stage (pre-seed), as well as startups already in operation and business enterprises.
Participants in U-Studio from TIS include business producers (who formulate business strategies and build and verify hypotheses), UI/UX
designers (who design prototypes from user perspectives), and full stack developers (engineers able to handle wide range of softwaredevelopment). Together, they have put together various projects, from brushing up ideas to building and verifying problem hypotheses,
developing minimum viable products (MVPs), and field-testing.
(https://incubation.tokyo/u-studio/) (Japanese only)

Provision of developmentknow-how⇒ Fintan

Swift investment in startup⇒ CVC/AI-CVC

3
1

2

bit&innovation
bit & innovation is a communication space that brings together the resources of startup companies, business enterprises, and TIS INTEC Group
companies to create new businesses through open innovation. Its aim is to promote seamless collaboration between companies.
(http://bit-innovation.tis.co.jp/) (Japanese only)

Location: Nishi-Shinjuku
Members: Approx. 300 companies (approx. 900 people)(As of July 2019)* Total of startup companies and business enterprises
Applications●Co-working●Meeting●Acceleration program base
●Hosting events, such as pitch sessions and ideathons

Investment in “Sozo Ventures II-S” (U.S. venture fund)— Stepping up new business creation with focus on Silicon Valley startups —2

CVC/AI-CVC
We are operating a corporate venture capital (CVC) entitythat plans to invest ¥2 billion by March 2021. The targets ofthese investments are rapidly growing venture companies(between seed round and middle stage). The CVC Investment
Committee makes investment decisions, from discovery to
final settlement, in as little as one month.

33

CVC investment
performance:

19 cases(cumulative; since April 2016)

AI-CVC investment
performance:

9 cases(cumulative; since April 2018)(As of July 2019)

Overseas, Silicon Valley-based TIS R&D Center, established in 1996, has greatly
shifted its emphasis to business creation, and accordingly changed its name to
TIS Ventures. Meanwhile, we have invested in the SOZOVentures fund as alimited partnership (LP) to promote collaboration with local startups. Through thisLP-based investment, we aim to accelerate initial business development of promising U.S. startups, research business seeds through trialing and prototyping in
the United States, and promoting joint business development with customers.

34

Growth Strategy/Business Strategyof the Group4

U-StudioQuality Control

Aiming to be a “trusted top brand that epitomizes quality”
The TIS INTEC Group strongly recognizes the role that information systems play as social infrastructure. For this reason,
we work continuously to improve our quality, productivity, and technical capabilities.
By always providing high-value-added services while responding flexibly to diversifying business formats, solutions,development techniques, and technologies, we aim to entrench TIS INTEC as a “trusted top brand that epitomizes
quality” and realize the mission set forth in our management philosophy.

■ TIS Quality Policy (from TIS “Quality Control Rules”)● Strive to improve stakeholder satisfaction, provide original and attractive services, and create■ Activities aimed at improving standards of entire GroupThe TIS System Development & Quality Management Innovation SBU and the Technology & Innovation SBU are spearheading the following
activities aimed at improving the quality, productivity, and technical capabilities of the entire Group and harness Group synergies.

Group Quality Executive MeetingGroup TechnicalReinforcement Committee

Undertakes the following activities to improve Group quality and productivity:● Establish PDCA cycle for setting and achieving KPI targets and monitor status ofinitiatives● Promote sharing and lateral development of issues, countermeasures, andknow-how of each company

Promotes sharing and effective use of eachcompany’s activities in order to strengthen theGroup’s development competitivenessabundant value.

● Provide optimal services to earn the trust of customers.

● Provide high-quality services through continuous business transformation with technology as

quality, productivity, technical capabilities, and competitiveness.

■ Trinity: Original quality management system based on ISO9001
We strive to provide customers with optimal services based on our policies of “emphasizing proficiency through on-site standardization and its repeated use” and “promoting improvement by minimizing essential implementation items and making use of
onsite ingenuity.” At development sites, we add ingenuity to suit each business model
while applying project management and engineering processes, techniques, and tools.
We are expanding the scope of coverage to include not only scratch development
but also a wide variety of business formats.
* Trinity means the “three elements of quality, productivity, technological capabilities” and also incorporates
the notion of “customers, TIS, and partners” working together to improve those elements.
* For more details:
http://www.tis.com/group/csr/report/social/quality/

Group screening● Proposal review● Review at start● Process inspection● Project review
Sharing and lateral
deployment of projectrisk management
measures● Project management
training

Project execution

Planning/
proposal

Plan

Design~development/
testing~transition

Enhancement(maintenance/
operation)

Termination

Offshorepromotion

Know-how and tool
sharing● Enhancement framework● Diagnoses, etc.

Sharing and lateraldevelopment ofoffshore promotion
measuresUtilize Fintan* and activate feedback*System development know-how/tool aggregation site

Enhancement
Activity presentation
Service manager
Training

Shared use ofoffshore BP

Introduce architect reviews to eliminate
technical risksThanks to our transition into a business holding company structure, we have accelerated production innovation measures and strengthened
systems to guarantee effectiveness. Accordingly, unprofitable projects are on the decline. We will continue focusing on efforts to further curb
unprofitable projects as an important management priority.
● July 2016

Transitioned to business holding company structure

5.72● October 2016
Established Group Production Innovation Committee● October 2018
Introduced Group screening

0.82

3.87

Companywide/organizational process reviews

Project risk
management

Proposal
review

Project start
review

Process review(each process start/end)

Project review(final report)

2.7%

Education

Standard
contract
quotation guide

Project management standard
Development process standard (Mode1/Mode2)

Enhancement
framework

Planning/
Proposal

Quality control, project management, engineering

Service manager

Human skills, management skills, expertise35

1.85
Fiscal 2016
First half losses

2.17

1.87

3.65
2.1%

Standardized
knowledge

Revitalize canal**Technical support/Q&A service site

Events, such as
offshore colleges

4.47

Project monitoring (QCDR status) + Project health check (every 3 months)

Strengthen
technical capabilities■ Trends in unprofitable projects(Billions of yen)

Process

Enhancement
innovation

Growth Strategy/Business Strategyof the Groupthe core.

● Use standard repetition and ingenuity to promote improvement activities aimed at enhancing

Deficit
eradication

Fiscal 2017
Second half losses

1.09

About 1.80

1.48
0.9%

0.9%

0.78

0.69

Fiscal 2018

Fiscal 2019

0.8%

Fiscal 2021 target
Development loss rate

0.5%

(Equivalent to¥1 billion) or lessFiscal 2020

Development loss rate

36

Executive Roundtable Discussion
Yasushi Okamoto,Director, Senior Managing Executive Officer
and Sector Director responsible forService Strategy Sector at TIS, Inc.

should be to tackle social issues through core business activities. In recent years, amid a string of corporate scandals, thedefinition of a good company has changed, I think, from society’s perspective. OUR PHILOSOPHY was formulated to underpin development into a good company in the truest sense—
virtuous and compassionate. To realize the image we see forourselves, we must instill OUR PHILOSOPHY in the minds of
employees so that it becomes second nature to them. We will
try to use words and ideas that appear in OUR PHILOSOPHY in
business plans to maintain consistency and promote understanding.

Solving social issues through business activities,
creating possibilities in digital technology
Josaku Yanai,
Director, Senior Managing Executive Officer
and Sector Director responsible forIndustry Strategy Sector at TIS, Inc.

Takayuki Kitaoka,
President and Representative Director
at INTEC Inc.

We will lead the way in solutions to social issue throughour business activities to achieve the objective of OUR
PHILOSOPHY.
How will the Group’s basic philosophy—OUR PHILOSOPHY—guide the TIS INTEC Group in
helping to solve social issues through its business activities? The three executives
involved in pilot discussions for OUR PHILOSOPHY talk about current initiatives and futurebusiness possibilities.

What is the connection between OUR PHILOSOPHY andbusiness activities?
Okamoto: The objective—our mission—under OUR
PHILOSOPHY is to fill the future—still essentially a blank canvas—with vibrant colors as a mover using digital technology. I
believe that a society in which people are happy is a society inwhich people have a range of choices. The future is a blankcanvas, and we will help paint a bright, colorful future
through our core IT services to give people all sorts of choices.
This is the TIS INTEC Group’s social mission. The ideal image
we want our businesses to present to the market is expressed
in OUR PHILOSOPHY.

37

Our own views of what we should be are key to accomplishing our mission. OUR PHILOSOPHY highlights the idea ofcommitting to a style—one inspired by such qualities as honesty, openness and a pioneering spirit—that infuses Groupmanagement decision-making and all corporate activities.
With an honest and sincere attitude, we will take an open
approach to collaboration with external parties and be quick
to address global social issues. The importance and significance of this perspective will be conveyed to employees andpermeate business activities.
Yanai: Over repeated debate during pilot discussions, a common understanding emerged that the Group’s duty to society

Okamoto: Consider the transition to a cashless society. This isa development where the TIS INTEC Group will be intricately
involved, thanks to strengths in the payment settlementrelated business. “Society 5.0,” dubbed by the Japanese government, will be a new society characterized by the use ofdigital technology to address social issues. The cashless trendof the new society will not only provide payment conveniencebut also curb the massive costs associated with cash management and control crime, including fraud and robbery, and thisshould give society a greater sense of safety and peace ofmind. A business that will support the cashless society is TIS’PAYCIERGE, a digital payment settlement platform.
PAYCIERGE will support the shift to a cashless society in three
ways: 1) as a gateway connecting stores, both physical andonline, as access points to end users—the front line—withpayment settlement sites, such as those operated by credit
card companies and banks; 2) as the back office, handling settlement and customer management for all pre-payment,
immediate payment and deferred payment transactions,
including those using credit cards, debit cards and prepaid
cards to pay for purchases; and 3) for smartphone apps andmanagement of affiliated merchants.
Yanai: One approach for realizing a sustainable society is theapplication of digital technology in the energy sector. Amongthe Group’s principal clients are electric power and gas companies. Japan is right in the middle of deregulation of theelectric power and gas sectors through energy system reform,
and the Ministry of Economy, Trade and Industry has hammered out “Utility 3.0,” a concept for promoting decentralization of operations, including power distribution and retail
operations, fuel procurement, and power transmission. Utility
3.0 sets out how the energy industry should be structured by
2050. Against a backdrop of fewer children and more seniors

Okamoto: High expectations exist for the part that AI androbotics will play in offsetting the negative consequences offewer children and more seniors in society. The use of robots
goes beyond work that humans would do; robots can improve
the quality of the work done. Within the TIS INTEC Group, weare involved in a service robot integration project to realize anenvironment that facilitates partial substitution or allocation of
the work typically done by humans, such as security, guidance, conveyance and cleaning, to robots. Access has started
for RoboticBase, a platform that integrates control of multiple
service robots and connects multiple robots to each other aswell as communicating between the robots and environments,
such as sensor environments, and humans. Services related to
RoboticBase have also started.
Kitaoka: In fiscal 2019, INTEC pursued business activities with
an emphasis on two keywords—AI and cloud—and ultimately
contributed to greater operating efficiency through the application of digital technologies. In AI applications, we began aservice that detects anomalies using AI algorithms to boost
yield ratios at manufacturing plants, and we improved the recognition rate of OCR (optical character recognition) using
deep-learning AI. For cloud services, which are linked to data
center operations and offer clients standardized services, we
migrated a customer relationship management structure forregional banks and administrative systems and tax payment
systems for local government offices in Toyama Prefecture to
the cloud. This led to greater efficiency in operations, lower
costs and a sharper competitive edge for the banks. Migrationof local government office systems to the cloud is something
we plan to promote to local governments throughout Japan.
Meanwhile, greater diversity in society is needed to deal
with issues that parallel the low birthrate and graying of society and, subsequently, a shrinking labor force. Certain aspectsof changing diversity are common to all issues and the necessary diversity-driven solutions. I believe digital technologies—
or more specifically, applications of digital technologies—aremeant to expand opportunities for people to thrive, unrestricted by such factors as gender, age or ability. From the perspective of wider diversity within the Group, it is important toencourage women to be more active on the management sideof operations.

38

Growth Strategy/Business Strategyof the Group

Kitaoka: A major theme for us at INTEC is how best to put
OUR PHILOSOPHY into practice. OUR PHILOSOPHY prompted
us to refine our corporate vision, as stated in the company’s
medium-term management plan, compared with the corporate vision of our early days in business. We also emphasize
our mission to play a role in a productive digital society, again,reflecting the objectives of OUR PHILOSOPHY. So, essentially,
OUR PHILOSOPHY underpins daily business activities at INTEC
under two themes: contributing to society through the use ofleading-edge technologies, and contributing to society
through actual business activities.

in the population, Utility 3.0 will promote labor-saving strategies through digital technologies as society also embraced
decarbonization and will create new energy businesses. The
TIS INTEC Group is responding with efforts geared toward
Utility 3.0 for electric power companies and gas companies
that are keen to participate in future-oriented businesses. For
example, verification tests are underway with local governments on local production and local consumption of energy.
Steps are also being taken to enhance EneLink, a total solution for the energy sector, and work started on the project,which will provide methods to resolve next-generation transportation and energy issues, particularly in report areas.
Also, with a shrinking labor force reflective of the lowbirthrate and graying of society in Japan, efforts to achieve
the government’s growth strategy are highly dependent uponreforms to productivity per person through the use of digitaltechnologies. Given the indispensable nature of such reforms,
the role of system integrators, including—collectively—the TIS
INTEC Group, will become all the more important.

Okamoto: And then there’s healthcare technology, where theuse of digital technology will help to keep people healthy,transform medical treatment and reduce the burden on thesocial insurance system. The Group is working on a healthinformation platform that will use AI to analyze health information collected by medical institutions and health information obtained via smartphone or other devices to prevent sickness. Platform-based applications, including services to support better food habits, are gradually being released.
Collaboration across industry, government and academiclines, including participation in state-of-the-art national projects and verification tests with universities, will be welcome
opportunities that lead to new value creation and solutions tosocial issues. We are keen to maintain this vigorous approach.

Yanai: In Japan, the Ministry of Economy, Trade and Industry
put forward a concept—the 2025 Digital Cliff— as a social
issue that requires the involvement of system integrators to
overcome. The TIS INTEC Group portfolio of services was
expanded in 2018 with such services as Xenlon~Shinryu
Migration Service, and a service was launched to efficiently
revamp systems created with COBOL and other old programming languages.
Kitaoka: NTT Corporation will complete access to services
based on ISDN—that is, the communication standards for digital telephone connection and transmission of voice and dataover a digital line—using phone lines in 2024 and, like otherapproaches to deal with the 2025 Digital Cliff, this will have a
big impact on society. As for us—the TIS INTEC Group as awhole—we have already been providing EDI (Electronic Data
Interchange) services using ISDN digital lines to meet theneeds of small and mid-sized businesses all over Japan, so thefoundation is in place to support migration to equipment and39

Strength of TIS INTEC Group—leading socialtransformation

Okamoto: We have provided services to leading companies
for many years, and I believe our market appeal lies in an attitude—earnestly embracing progressive approaches with ourclients in mind—that clients appreciate. A fine example of thisis subscription services, which have not be offered by system
integrators before. Currently, TIS is guiding the Group throughstructural transformation from a business perspective. Servicestyle business, which anticipates market needs and provides
standardized services cutting across industries, can be thepolar opposite of a business model, which builds conventionalcustomized services. In addition, we must change the corporate atmosphere to evoke a greater sense of speed.

It clearly and broadly delineates the thinking and ideals that TIS INTEC Group highly values in its group’s
management, corporate activities, and constituent members.
TIS INTEC Group’s entire business revolves around OUR PHILOSOPHY.
We would like to provide you with an introduction to OUR PHILOSOPHY.

Yanai: Our biggest assets are the results we have achieved
and the trust we have built since our establishment, which
underpin our ability to support the needs of companies acrossall industries and sectors. We have learned in providing services to top-of-industry clients, and this gives us that little bit
more than other companies in terms of business knowledge
across diverse sectors. For this very reason, I believe theGroup’s biggest strength during a time when clients arechanging up their business models is the ability to envision theperfect solutions to management concerns and deliver consulting expertise matched to specific client needs.
Kitaoka: I think it’s our ability to provide total solutions, fromconsulting through to system development and operation.
With a proven track record and know-how in the very field of
information processing, notably, payment settlement-related
services and EDI services boasting industry’s largest share, wehave the high-level expertise to deliver service-style businesses
as well. This includes building and operating upfront investment-style platforms.
Okamoto: To be the kind of mover described in our mission
requires more than just a progressive attitude. We must also
display corporate personality. We will utilize OUR PHILOSOPHY
to promote a shared awareness among each and every
employee under the Group umbrella that contributing tosociety is the Group’s ultimate goal in all corporate activities,
including future business development and human resources
training and hiring. This shared awareness is extremely important, especially at this point in time when the shape of tomorrow’s society is undergoing such a huge transformation. If,
based on OUR PHILOSOPHY, all employees perform theirduties with the full understanding that we will properly contribute to society through our business activities, then thiswidespread perspective will become a great strength. This will
result in growth for the Group and also lead to enhanced corporate value. As members of the pilot discussion group on
OUR PHILOSOPHY, we know that we have a vital role to perform in driving home the ideas and spirit of OUR PHILOSOPHY
that emerged as we worked through the concept creation
process. Each and every employee must take OUR
PHILOSOPHY to heart. I feel strongly that we are the ones
who must lead the way.

MissionGrowth Strategy/Business Strategyof the Group

Kitaoka: Toyama—the city of the same-named prefecture
where INTEC was born and raised, in a corporate sense, andwhere its headquarters remain today—was selected as an
SDGs future city. We are working with the city on various verification tests to realize objectives under the compact city concept, such as upgrades to various public transportation networks.
Looking at all of Japan from a regional perspective,
depopulation in regional areas is becoming an increasingly
serious problem. In many regional cities, shrinking populations
have made it difficult to run hospitals, and the closure of hospitals has created a problematic shortage of facilities. Existing
approaches will assume greater importance as well, parallelingthe spread of healthcare technology and other progressive
approaches. The emphasis will be on utilizing digital technology to enhance the efficiency of hospital management by
reducing costs through more efficient hospital systems andthe allocation of surplus funds toward the purchase of medical equipment and to cover the cost of doctors and otherstaff. In addition, a negative cycle is often perpetuated indepopulated areas, where a lack of job opportunities foryoung people prompts them to leave en masse in search ofwork and this causes communities to lose even more of theircitizens. As a company, we know we must maintain soundmanagement and provide employment and also help to curb
the exodus of citizens and contribute to regional tax coffers.
In addition, we must fulfill a vital social role in promoting
regional activity.

applications using the Internet.

OUR PHILOSOPHY (TIS INTEC Group Philosophy)
OUR PHILOSOPHY represents the values of TIS INTEC Group (January 2019).

To brightly color the future as a mover

The Mission is TIS INTEC Group’s social role as well as raison d’etre. The word “mover” refers to the people who create objects, issues and systems
that move our world to a new one. And, in this case, it refers to TIS INTEC Group and its constituent members.
As a mover that utilizes digital technology, TIS INTEC Group would like to be an entity that vividly colors the blank canvas of the future by providing novel potential and options that appeal to society.

Style“Honest” as a style

The basis upon which a corporation may conduct itself is, beyond anything else, the concept of being “Honest” in other words, honesty and sincerity. This is because being honest is essential for trust and the basic premise in value exchange with stakeholders.
Besides being honest, TIS INTEC Group also places great importance on styles such as “Open” and “Pioneering.” This is what we believe and aim
to consistently manifest in everything from our top management’s decisions to all our corporate activities.

PolicyBe there for people

TIS INTEC Group’s most important management policy is “Be there for people,” because a corporation is basically a gathering of people, and the stakeholders that encompass the corporation are people, too. Business management that forgets people will never lead to quality corporate activities.
In addition, TIS INTEC Group’s other primary management policies include “Go beyond society,” with TIS INTEC Group as a good member of society,going beyond social norms and the expectations of society, and “Move toward the goal,” aiming toward purposeful business management.

Membership

A good member of society

Membership is a guideline for the activities conducted by TIS INTEC Group constituent members.
It is comprised of “As a good member of society,” “As a member who expresses her/his intentions and opinions,” and “As a member that strives for
progress.”
The first, “As a good member of society,” refers to the company wanting its members to strive to be good members of society beyond their existence
as constituent members of TIS INTEC Group.
The other two guidelines want TIS INTEC Group members to express their existence humanly and demonstrate their unique characteristics and capabilities to their fullest extent.

What is a corporation?

A social system that aims for happiness

There are various ways to think about the goal of a corporation, and corporate management can change greatly depending on how this is determined.
Based on TIS INTEC Group thinking in which “the corporation is a public instrument,” with stakeholders we define the corporation as “a social system that aims for both happiness that contributes to social expectations and people’s happiness via value exchange.” Accordingly, the idea that the corporation exists for stakeholders and society is the foundation of all TIS INTEC Group’s corporate activities.

What is growth?

Moving towards our mission

Growth is defined as “increased realization of the mission” as well as “increased value-exchangeability” with the stakeholders. The former refers to
how TIS INTEC Group improves its level of mission realization, namely, increasing the significance of TIS INTEC Group’s social existence. The latter
refers to enhancing the quality and quantity of value exchanged between TIS INTEC Group and its stakeholders, in other words, a higher degree ofsatisfaction for both parties. TIS INTEC Group aims at the essential growth of these two.
40

Platform that Supports Value Creation Process*Please visit the following page for details of our CSR.
http://www.tis.com/group/csr/

TIS INTEC Group’s Platform for
Supporting Corporate Value Process(ESG Section)
Communication with TIS INTEC Group’s stakeholders is a what supports improvement in corporate value.
Consideration for the environment along with efforts in quality control and R&D are also essential for thebusiness of information systems—a key social infrastructure—to function in harmony with society andsteadily evolve. With this in mind, we strive to enhance corporate governance and internal controls, which
form a vital cornerstone of business activities within the Group.

Communication with Stakeholders
The TIS INTEC Group strives to build bonds of trust through communication with all stakeholders, including clients, employees, shareholders and investors, and business partners, and to boost corporate value.

● Customer service points of contact● Cooperation and support for NGO/NPO social

contribution activities● Charity concerts

industry associations
and others

Community/
Society

TIS INTEC Group

Shareholders
and Investors

Acknowledge responsibilities as a leading corporate group in the IT services industry and undertakesound corporate activities with integrity and clarity of purpose. In addition, be sincere and fair in
dealings with all stakeholders and proactively disclose pertinent corporate information.

Provide optimum
services

Always provide the very best to clients and strive to raise customer satisfaction levels through excellent
quality and technology built on the composite strengths of the Group.

Develop talent

Cultivate an environment in which employees always look ahead, striving to achieve higher goals andembracing new challenges. Provide opportunities to grow and realize personal goals, create a safe andproductive work environment, and give each person the freedom to reach his or her potential.

Respect the law

Maintain high corporate morals, obey the law and uphold parameters of socially acceptable conduct,
and respect the spirit of such standards. Have absolutely nothing to do with antisocial forces.

Maintain fairbusiness practices

Ensure appropriate business transactions, based on fair and open competition.

Protect theenvironment

Recognize that environmental problems warrant universal attention and promote efforts to saveresources and energy in the execution of corporate activities. Also, through IT services, support clients’efforts to enhance operating efficiency and reduce energy consumption, thereby contributing to lower
environmental impact.

Contribute to society

Actively participate in community events as a corporate citizen whose social standing matches its
leading industry status.

Be a part of theinternational
community

Naturally, obey internationally recognized rules and local laws in the execution of cross-border projects,
but also contribute to social and economic development in the countries where TIS INTEC Group
maintains a presence by recognizing local culture and customs.

Primary methods ofcommunication
with stakeholders

Platform that Supports Value Creation Process(ESG Section)● Responses to relevant ministries/agencies and● Company news, Group news

opinion exchange groups● Day at the office for children of
employees● President’s Caravan
and others

Ensure sound,transparent management practices● Opinion posts from website

Employees● Personnel exchange groups,

The management philosophy that permeates the TIS INTEC Group stresses the Group’s development into a
corporate citizen whose activities, hinging on the provision of various services utilizing IT, match its status as aleading corporate group. This philosophy also underpins the Group’s efforts to raise corporate value, supported inthis effort by the high regard of all its stakeholders, including clients and shareholders as well as employees andtheir families. The Group’s stance on corporate social responsibility is evident in its commitment to cultivate a vibrantcorporate culture that encourages the companies and individuals under the Group’s umbrella to work toward higher
goals and embrace new challenges, to be honest and fair in business pursuits based on respect for the law, ofcourse, as well as high moral standards, and to fulfill social obligations. This is the Group’s basic direction on CSR.

● Local event participation(call center, website, main number)● Seminars, fairs and forums for clients● Publication of newslettersand technical brochures● Client satisfaction surveys● Regular meetings
Clients
and others● Intranet

Basic Direction on Group CSR

In line with Basic Policy on Group CSR, the TIS INTEC Group is considering andpursuing various measures from the perspectives described below.
Organizational Governance■ Human rights

Due diligence, crisis situations impacting human rights, avoidance of complicity, complaint resolution, prejudice, sociallydisadvantaged, citizen and political rights, economic, social and cultural rights, basic principles and rights in labor■ Labor practices

Hiring and hiring-related issues, working conditions and social safeguards, social dialogue, health and safety in theworkplace, personnel instruction and training in the workplace

Business
Partners■ Environment

Approaches to prevent pollution, use of sustainable resources, mitigating and dealing with climate change,
environmental protection, preserving biodiversity and restoring natural habitats■ Fair business practices

41● General meeting of shareholders● Information meetings on policy (guidelines)● Results briefing● Creating opportunities for discussion (project information)● Small meetings, domestic and overseas roadshows,● Engineer development and support (educational support, seminars)

participation in conferences● Information disclosure on IR section of corporate websites● Integrated Report● Business Report and others● New Year celebrations, informal social gatherings● Questionnaires, opportunities for opinion exchange and others

Approaches to prevent corruption, responsible political ties, fair competition, promoting social responsibility in value
chain, respect for property rights■ Consumer issues

Fair marketing, information and contract execution, protecting health and safety of consumers, sustainableconsumption, services and support for consumers as well as complaint and dispute resolution, consumer dataprotection and privacy, improved access to required and indispensable services, education and awareness■ Community involvement and community development

Involvement in the community, education and culture, job creation and skill development, development of technology
and access to technology, wealth and income creation, health, socially responsible investment

42

Sustainability

Solving societal challenges through business to create a sustainable society
The TIS INTEC Group will deepen awareness of its position corporate social responsibility, namely, tocontribute to social development through businesses that provide solutions to social issues, and willreinforce initiatives related to corporate sustainability.
We are particularly committed to creating a sustainable society by making continuous mid- to long-term
enhancements to initiatives designed to solve societal challenges through business and reduce the impact
on the environment.

Sustainable Development Goals (SDGs)
These international goals, running from 2016 to 2030,
are described in the 2030 Agenda for Sustainable
Development, adopted at the U.N. Summit in
September 2015. The agenda comprises 17 goals and
169 targets aimed at putting the world on a sustainable
path and pledges that no one will be left behind.
To achieve these objectives, companies are asked toparticipate as vital partners through respective corebusinesses.

Management structure to promote sustainability
The TIS INTEC Group has developed amanagement structure to promote sustainability.
At the heart of this is the Corporate Sustainability
Committee chaired by the president.
The committee discusses policies onsustainability, deliberates plans, reviews progresson implementing them, and promotes measurestaken by group members in line with thesepolicies and plans.

Board of directors

Signatory to the UN Global Compact
President

Corporate Sustainability Committee
President (chairman)
Standing directors, standing Audit & Supervisory Board Members
Presidents of principal operating subsidiaries*Plan to establish dedicated structure regarding sustainability within Corporate
Planning Department in October 2019

Secretariat of the Committee

TIS—and by extension, the TIS INTEC Group—signed on to the U.N. Global Compact and was
registered as a participant as of July 19, 2018. Through strategies and actions in line with 10
principles encompassing four categories—human rights, labor, environment and anti-corruption—
we will encourage every employee to be involved in fulfilling our social responsibilities as acorporate citizen of the world and promote activities that support sustainable social development.

External evaluation

FTSE Blossom Japan Index

FTSE4Good Index Series

MSCI Japan Empowering Women Index (WIN)Corporate Planning Dept.*
Group companies

The TIS INTEC Group will contribute to the achievement of SDGs through materiality-oriented activities.
Materiality

Identifying Materiality

1. Create society in which diverse human resources
are engaged and thrivea. Promote diversity
b. Promote workstyle reformsc. Human resource development and trainingemphasizing self-fulfillment

The Group is pursuing a variety of measures to enrich society through innovation and co-creation in business. Working
with our clients, business partners, and other stakeholders, we are making extensive use of advanced ICT to contributeto the development of a sustainable society.

2. Create comfortable society through innovation andjoint activities
d. Promote safe, convenient social foundation that
supports people and society
e. Connect with stakeholders and promote joint activities
f. Reduce environmental impact

The Group is helping to create a more robust, sustainable society and realize safe and comfortable living by using ICT toaddress local challenges such as labor force decline. As part of this process, we have established a hub in AiCT, our ICT officein Aizuwakamatsu, Fukushima Prefecture, to promote projects that create new solutions and solve societal challenges in threefields: cashless payments, robotics, and health care. Working with the Open Government Consortium (of which we are amember), we will be involved in the following real-world trials.

3. Create safe society through high-quality services
g. Continuous quality improvement
h. Information security
i. Safeguard personal information
4. Enhance corporate governance and earn trust ofsocietyj. Corporate governancek. Compliancel. Risk management

Outside experts had a discussion about the appropriateness of materiality issues identified by TIS for the TIS INTECGroup and how the Company assesses importance.
For details, please go to the following site:
http://www.tis.com/group/csr/gcsr/materiality/#dia

43

Enriching society through innovation and co-creation

Case File Hub established in Fukushima to contribute to regional revitalization(1) Cashless payments
A new cashless network will be developed in collaboration with local communities toprovide residents with cashless means of payment for goods, transport, health care, andother services. Consumer data will additionally be used to revitalize local economies.
(2) AI and robotics
The project is intended to help address the problem of labor force decline in theprovinces. The aim is to pilot and commercialize delivery of the RoboticBase platform
allowing integrated control and coordination of multiple service robots with the ultimate
goal of realizing Fukushima Prefecture’s Fukushima Innovation Coast Initiative andMinamisoma Robot Development Vision.
(3) Health care field
The aim of this project is to produce information that delivers deeper insights for medical
institutions by integrating the information held by local health care providers with vital
information obtained regarding everyday life.

AiCT office building

44

Platform that Supports Value Creation Process(ESG Section)* The inclusion of TIS Inc. in any MSCI INDEX, and the use of MSCI logos, trademarks,
service marks or index names herein, do not constitute a sponsorship, endorsement
or promotion of TIS Inc. by MSCI or any of its affiliates. The MSCI indexes are theexclusive property of MSCI. MSCI and the MSCI INDEX names and logos aretrademarks or service marks of MSCI or its affiliates.

Materiality and SDGs

Human Resources Strategy

Emphasize measures to help employees achieve personal career goals andcreate framework/culture that enables diverse human resources to thrive~Individual cycle of personal fulfillment will be driver of growth for the Group~
Of all the management resources available to the TIS INTEC Group, employees are the most important. One of
the basic policies described in Transformation 2020—the medium-term management plan that TIS launched in
April 2018—is to emphasize employee self-fulfillment, and efforts will be directed toward the creation of anenvironment, corporate culture and systems that make diverse human resources excited about their work.
TIS will promote the environment and opportunities that enable each and every employee under the Groupumbrella to fully demonstrate their skills, which will lead to sustainable growth of the Group overall.
■ Human Resources Strategy in Medium-Term Management Plan (2018-2020)■ Initiatives to Boost Motivation
A shared understanding within the TIS INTEC Group is that efforts enabling employees to perform their duties with peace of mind and in good
health, both physically and mentally, and to fully demonstrate their capabilities will lead to corporate growth and social contribution. Seeking to
improve quality of life for each and every employee, TIS is on board with health management to realize good physical and mental well-being,
boost motivation and create an atmosphere infused with vitality.
(Related content in Group Human Resources Roundtable Discussion starting on page 47)

Promoting Performance Management
To push added value higher through the personal growth of employees, TIS is working hard to reinforce human resources management. Part of this effort involves a performance management* strategy. Through various measures, hinging on 1-on-1, the Company iskeen to promote greater communication between managers and their staff and, through management with a stronger view on
training, the Company will encourage interaction, enthusiasm and a greater sense of independence.
*Performance management is a management technique designed to draw out employee skills and enthusiasm while working toward business targets.

Boost motivation through constantcycle of self-fulfillment

Imaginean ideal
Highermotivation

Cycle ofself-fulfillment

Problemsolve

Human resources who fuel process ofstructural transformation● Account managers, service managers whodrive activity in strategic domains● Consulting staff who formulate businessstrategies along with clients● Service production staff who can turnindustry knowledge and businessknow-how into marketable products● In-house entrepreneurs who plan, launchand promote new businesses● High-level engineers who support activities
in strategic domains through quality andproductivity

Breakdown of Performance Management Structure
Performance
Management
Process

Set goals (meeting)Support execution ofduties

Evaluation (meeting) /treatment

Performance
evaluation

Various instruction andtraining programs

Performance
evaluation system

1 on 1

Ability evaluation
system360˚ Feedback

Compensation system

Establish humanresources systemapplicable throughout
the Group

Establish humanresources portfolio

In fiscal 2019, TIS accelerated efforts to help employees—a huge source of corporate growth—reach personal career goals, based on the TIS Human Resources SBU Manifesto. This included a system that allows employees to remain active in the workplace after mandatory retirement at 65,
workstyle reform and performance management. Going forward, we will raise motivation and reinforce personnel management, and we will
create a framework/culture that enables diverse human resources to thrive within the Group and constantly cultivates top-level capabilities tounderpin structural transformation.
Initiatives as of March 31, 2019,

Initiatives in Fiscal 2020

Boost motivation through constant cycle of self-fulfillment

Boost motivation through constant cycle of self-fulfillment● Increase standard wage, raise promotion ratio● Maintain robust investment in human resources (increase opportunities for learning, raisein the workplace if they are willing and able, regardless of their age.
● Introduce superflex option

Assignment,
treatment, transfers
linked to achievement of
personal career goals

Visualize humanresources information

standard wage

Career support(including planning sheet, seminars)
In-house recruitment
system

Structure at TIS

Workstyle, healthsupport, benefits
package systems■ Initiatives as of March 31, 2019, Activities to Implement in Fiscal 2020

● Introduce system— “Retirement at 65” —that enables employees to continue to be active

Consider career plan toachieve career goals

Platform that Supports Value Creation Process(ESG Section)

Realizegoals

Declare andshare

Selectively develop model employees
to fuel transformation of the Group

Create framework and systems toachieve optimum deployment of
human resources within the Group

TopicsTeleworker option for all-day telework, work-interval system and work smart allowance
In April 2019, TIS launched Teleworker, which hinges on all-day telework without an upper limit on telework days; a work-interval system,
which ensures that a certain number of hours separate the end of one work day and the beginning of the next; and a work smart allowancethat links increased productivity to personal growth. We will maintain these programs and follow up with workstyle reforms that promote
growth of each and every member of our diverse human resources while ensuring sustainable development as a company, and we will
tackle health management, as well, including measures to control long working hours and improve health literacy.

● Promote activities that contribute to local communities, such as support for volunteer■ External Evaluation● Create culture and atmosphere conducive to praise and recognition of achievements andWithin the TIS INTEC Group, each member company has endeavoured to cultivate a corporate culture and work environment that enables diverse
human resources to thrive and has been successful in reducing working hours, increasing the ratio of paid vacation days taken, and establishingvarious work systems, including shortened work days, work-at-home and flextime work. These activities have been recognized by various externalorganizations.

programs

introduce peer bonus system

Selectively develop model employees to fuel transformation of the Group

Selectively develop model employees to fuel transformation of the Group● Define personnel portfolio to facilitate Group reforms● Monitor pipeline for people suited to roles as project leaders and in management● Reinforce personnel management and develop skills of people who will be project leaders● Actively recruit people with the potential to contribute to structural transformation. Includes

Create framework and systems to achieve optimum deployment of humanresources within the Group

Create framework and systems to achieve optimum deployment of humanresources within the Group● Visualize personnel information and promote TIS approaches throughout the Group● Promote employee exchanges among Group companies

consultants, service producers, AI engineers and data scientists● Consider approaches in human resources applicable throughout the Group to create sharedplatform

45

46

Group Human Resources Roundtable Discussion

Jun Ikimune,
Senior Managing Executive Officer,
Division Manager of Human
Resources SBU, TIS, Inc.
Kyoko Takayanagi,
Executive Officer, Department Manager
of Human Resources Department,
Deputy Division Manager of Human
Resources SBU, TIS, Inc.

Personnel system highlighting work style reform nearlycomplete, moving into vital operation phase

Mayumi Akaba,
Department Manager,
Human Resources Department,
Corporate Planning SBU, AGREX, Inc.

The goal is to promote initiatives that enable employees todemonstrate their capabilities to the fullest degree and thereby
raise corporate value of the Group overall.
Focusing on themes of health management and improved corporate value, roundtable participants
talked about the human resources strategy that extends throughout the Group and the status ofefforts at core companies under the Group umbrella—TIS, INTEC and AGREX.

Ikimune: One of the basic objectives raised in the MediumTerm Management Plan, drafted by TIS for the TIS INTECGroup, is to promote employee self-fulfillment. The plan also
describes efforts to create an environment, culture and programs that motivate employees to work hard and to build ahuman resources portfolio that supports structural transformation and places employees throughout the Group in posi-

47

tions that best use their skills. This approach will elevate theGroup’s profile and underpin development into a family ofcompanies that enjoy the loyal support of employees, clientsand society as a whole.
Business models and the content of business activities
may differ among companies under the Group umbrella, but
the belief that people are a most valuable management
resource is a constant and unchanging concept. OUR
PHILOSOPHY—a basic philosophy infused by a set of values
common throughout the Group—and Group Vision 2026 are
not only keys to a bright corporate future but also to solutions

Takayanagi: Until the end of March
2019, I was working in a business division. The Human Resources SBU
Manifesto conveyed to me a level ofcorporate commitment because it
acknowledged that human resources
are a vital asset and that forward-looking investment in acompany’s people leads to higher corporate value and also
because it set out concrete, genuine measures for work stylereform. I gave serious thought to how my staff would actually
make use of new work styles and initiated a trial. Frontline
staff felt the options had potential, so I think we’ve taken a
big first step in driving work style reform ahead.
Going forward, it will be my mission—my priority—as
manager of the Human Resources Department to promotewidespread awareness of new work styles and to encourage
the frontline to engage. Currently, as structural transformation
unfolds, operating divisions with a focus on service-style business are more likely to find such options as telework easy to
implement. But other divisions may find it difficult to suddenly
change the style they are accustomed to. For the system to be
used in good balance throughout TIS, it must be understoodand accepted not only in-house but also by clients. Toward
this end, as manager of the Human Resources Department, I
will begin tagging along with operating division managers on
their client visits to explain the system and our perspective.
Masuda: I, too, recently assumed a new role. I was in a management position in the Administration Control Division up
until last fiscal year, and now I head up the Work Style Reform
Promotion Department, which was established this past April.
In April, INTEC executed a major review of its qualification system, wage structure, and salary raises and promotions—pillarsof the personnel system—based on the idea that all employees are specialists, and embraced a structure that encourages
employees to strive toward specialization and growth.
This recent personnel system review complements ongoing efforts, including time management, work-life balance
management, child-raising support and initiatives to promote
the role of women in the workplace. Against this backdrop, I
see myself advocating for additional steps in work style reformand putting the system firmly into place. With regard to diversity in work styles, we have a number of business models that
require INTEC employees to be on-premise at client offices, so
telework, for example, isn’t a practical work style option. Thisis a reality that must be acknowledged and addressed. Thatsaid, employees who are dead-set against a change in work
style need to be encouraged to change that attitude. Everyone
needs to be receptive to the advantages that work stylereform offers for career development. The Human Resources
Division must be the guide that leads employees to a newunderstanding.
Looking back at the last couple of years, overtime work
has decreased. These overtime hours are a total, combining
data for office staff and frontline staff, but the result reflects a
concerted and sustained effort at time management on a daily
basis. To turn this into higher productivity requires a realchange in the way we approach work.
Akaba: In fiscal 2019, AGREX relocated its headquarters andused the establishment of Biz TRUXIA—a new businessresource center at the Tama Center that integrates know-how
from all locations—to introduce a free-address system
intended to promote active exchange between employees andtake BPO to new heights. In addition, we made Biz TRUXIA amodel for work style reform and promoted both telework andwork-from-home options. AGREX also has businesses that
require employees to be on-premises at client offices, and forthem, options like telework would be hard to put into practice. The use of new work styles requires the understanding ofclients, and I think they will see the benefits that come withthis structure if it’s properly explained to them. In April 2019,
our personnel system was drastically revised, as well. Thechanges go beyond straight-line career advancement and are
better matched to each individual’s career interests, such as amanagement position or contributing to higher technologicalcapabilities. Going forward, we will make preparations, suchas instruction for people who evaluate employees, namely,
training on how to conduct an evaluation, to ensure that thesystem is properly executed. To encourage women to be more
active in the workplace, we are considering manager training
to eliminate unconscious bias that precludes women from certain promotions. An issue that needs to be addressed is thesmall number of women in management positions in the system development division. We have to explore a frameworkthat enables women to achieve diverse career advancement,complemented by suitable training and other support programs.
Ikimune: If we want clients to understand and accept work style reform,
we have to explain that such reform
has advantages not only for ourselves
but for our clients as well. The 2020
Summer Olympics in Tokyo could provide some momentum. While the games are on, getting
around Tokyo is going to be difficult. Public transportation isgoing to be crowded, and roads are sure to be congested.
Work style reform can be presented as an approach to business that ensures seamless access to services despite commuting challenges. I think clients will support the idea. It’s a great
opportunity.

48

Platform that Supports Value Creation Process(ESG Section)

Shinobu Masuda,
General Manager, Work Style Reform
Promotion Department,
Health Care Department,
Human Resources Division, INTEC, Inc.

Earnestly developing human resources strategy applicable groupwide to create companies that are respectedby employees, clients and society as a wholethat address social issues through business activities. Guided
by OUR PHILOSOPHY and Group Vision 2026, the Group will
work as a cohesive team to implement measures based on agroupwide human resources strategy that makes a diverse
workforce excited to be members of the Group. This is vital
because it is our people that will drive the Group forward.

Health management a recognized theme, underpinning
better quality of life for employees
Ikimune: People tend to think about health management innarrow terms—that it merely refers to not getting sick. If you
acknowledge that work style reform allows people to workwhere and when they want—the place and time of theirchoosing—then health management also encompasses efforts
to improve quality of life and motivate employees. The business activities of Group companies may differ, but improved
quality of life for employees is a common theme when it
comes to health management—same as for work style reform.
When we convey information about health management toemployees, we should also highlight our initiatives and results
outside the TIS INTEC Group as well.
Takayanagi: I feel employees need to change their perception
about health, too. Unlike specific policies, like working from
home, effective policies for ensuring personal health are difficult to enforce. We have to plan some events, maybe starting
off with sessions for managers, on the theme of health management to foster a new awareness.
I’d also like to see Group human resources divisions tackle
responses together, such as discussing policies to boost
employee resilience, which would underpin Group initiatives.

* Absenteeism is being absent from work due to illness, while presenteeism isbeing at work but hindering efforts and unable to perform at top level due tohealth problems.

Takayanagi: For young employees, it’s not only individual
issues, such as job proficiency, that cause stress. Businessmoves at an overwhelmingly faster pace than it used to, andthis tends to make people feel that they’re always under pressure to perform. I think it’s important to establish opportunities for managers and frontline staff to learn about healthfrom a scientific perspective. I would consider training basedon academic data, such as the positive effect on performancefrom a repeated process of good stress followed by a break,as well as good sleeping habits, and having meals at set times.
Also, the national government introduced a law, effectivefrom April 2019, that encourages employers to adopt a workinterval system* as a goal to achieve, and TIS has incorporated
a minimum interval into its rules of employment. There’s nopunishment if the minimum is not met, but the system is inplace for divisions—not individuals—to consider how to
improve the situation next time and to report on results.
* System that sets a minimum limit on the interval of time between the end of
one work day and the beginning of the next.

49

Akaba: We equate health management with enhanced quality of life for
employees, and in fiscal 2020, ending
March 31, 2020, at AGREX, the
Human Resources Department will be
conveying a message to employees
about providing a “happiness platform.” Each employee has a
career plan as well as a life plan, and we at AGREX aim to put
in motion support measures in fiscal 2020 that help build
careers. In addition, through various approaches, such as family events, we will transform AGREX into a company thatspreads happiness not only to employees but to their families
as well.
Ikimune: How an employee evaluates his or her job is key tothe level of motivation that person feels. With changes inwork style, such as telework, motivation will not necessarily
be determined through an evaluation of an employee in theline of sight. Therefore, going forward, we, as a group, haveto strengthen performance management, which will lead to
improved quality in employee evaluations. At TIS, we haveapplied a few approaches toward this end, including 1-on-1
Meetings between supervisors and staff to deepen communication and 360˚ Feedback, which invites comments fromsupervisors, staff and colleagues. Different approaches havebeen initiated at other Group companies, and I’d like to see
the effective ones applied on a groupwide basis.
Takayanagi: For 1-on-1 Meetings, the decision was made tolet staff present the themes each time, so this gives staff practice thinking up themes on their own and carrying the conversation, which instills confidence. For their part, managers will
have to be able to accurately grasp conditions affecting staff.
Each manager has a staff of five to eight people and meetswith each one once every two weeks. It’s not a huge dent intheir schedules. I participated in 1-on-1 Meetings and foundthis to be a very valuable approach.
1-on-1 Meetings are intended to make staff excited about
their work and boost motivation through improved communication, both in terms of quantity and quality. Managers—
more than 1,500 of them—will have to be trained on themeeting format, and it may take more than a year before we
see tangible results.

Power of all employees under Group umbrella is sourceof higher composite corporate value of Group
Takayanagi: With great timing, TIS presented a shared philosophy—OUR PHILOSOPHY—and a shared direction—Group
Vision 2026—for the Group along with efforts to strengthen
the personnel system. Frontline motivation is steadily rising. I
feel that the power of all employees under the Groupumbrella creates tremendous energy that will drive the composite corporate value of the Group consistently higher.

Akaba: If anyone were to feel uneasy about personnel system
reform or organizational restructuring, it would be because
management’s message was not conveyed correctly. But management engages employees in discussion and consistently
offers solid explanations about why changes are necessary.
This turns apprehension into expectation and draws the powerof individuals together for exponentially larger impact.
Masuda: INTEC also implemented
major changes to its personnel system,seeking to improve corporate value. But
as I mentioned at the top of our discussion, the next task is to create rules to
run the system. What rules are needed?
I’m going to go to the frontline and talk with people to findout. In that sense, I will focus my energies on the critical
moment that comes now to improve corporate value.

Ikimune: A priority measure for the Human Resources SBU is
to raise the quality of human resources. Toward this end, weseek to build a human resources portfolio extending across theGroup to develop business personnel with high-level capabilities. To accelerate this process, we will actively communicate
with management and personnel divisions at core Group companies and focus on activities that cut across the Group.
We have made steady progress in developing the Grouphuman resources strategy and must be at stage six of this corporate mountain climbing expedition by now. However, thepersonnel system is always in a state of change, evolving alongwith society. You might say it’s a never-ending journey. One
point of arrival is the establishment of a personnel system withthe flexibility to adapt and a good corporate culture. We aremaking steady progress toward this goal, and I am confident
this will lead to higher corporate value on a groupwide basis.

Human Resources SBU Manifesto(Highlights)
Human Resources SBU Declaration

Become a company where all employees feel motivated to work hard
1. Desired status (by March 2021)

Platform that Supports Value Creation Process(ESG Section)

Masuda: Available data indicates a downward trend in overtime and the rate of annual paid vacation taken as well as thenumber of people absent from work and the number of days
absent, particularly due to mental health issues. However—and this is referred to absenteeism and presenteeism*—justbecause someone shows up for work doesn’t necessarilymean he or she is fine. Was time-off cut short? Do more
employees have latent problems? It’s also important to lookclosely at frontline conditions.

Efforts to strengthen performance management
groupwide

We seek to accelerate improvement in the composite corporate value of the Group by raising theindividual capabilities of diverse human resources.

2. Human Resources SBU
Three-Point Mission

1.

2.
3.

Create company where motivationlevel is high, and quickly andvigorously work toward this fromsystem and environment perspectives.

Achieve optimized deployment of
human resources while providing anenvironment conducive to selffulfillment of career goals.

Ensure thorough labor-related
compliance and create safe andpleasant company atmosphere.

3. Measures and Direction Through 2021
1. Measures related to evaluation, treatment and compensationi. Raise standard compensation: Raise compensation to industry’s top
levelii. Evaluation system that looks to boost motivation: Performance-based
evaluation and compensation matched to capabilities and positioniii. Personnel system with groupwide perspective: Build new personnel
system geared toward Group Vision 2026
2. Measures related diversity, workstyle and health managementi. Promote diverse workstyles: Offer greater freedom in terms of place
and time to encourage innovation
ii. Engage in health management: Enrich employees’ quality of life and becompany full of vitalityiii. Enable diverse human resources to be active: Provide place where
employee can thrive regardless of gender, nationality or age
3. Measures related hiring, training and assignments
i. Create human resources portfolio: Promote talent management
throughout the Groupii. Recruit people who will play a truly vital role in our success: Secure
human resources with high contribution potential and specialized
capabilitiesiii. Optimum deployment of human resources: Implement strategic humanresources deployment and regular rotation

50

Communication with Shareholders

Contributing to Global Environment

Fast, fair and impartial information disclosure

Environmental measures

We provide performance results and the latest news on our business activities to analysts as well as institutional andindividual investors through events, such as information meetings, the production of pamphlets and other materials, and also
in the investor relations section on the TIS website.

The Group actively addresses environmental issues through its business activities. At the data centers and offices that form
the foundations of our business activities, we pursue a range of environmentally friendly steps, including measures toconserve energy and reduce emissions of greenhouse gases.
We are working in particular to consolidate our data center operations to make greater use of advanced, environmentallyfriendly facilities that are electrically more efficient. We are also expanding our use of natural energy sources (including
geothermal power, outside air for cooling, rainwater, and solar power).

IR Events in Fiscal 2019

Frequency

Contents

Results briefings for analysts andinstitutional investors

4 timesQuarterly briefings

Small meetings for analysts and institutional
investors

176 times

Provide IR-oriented information for analysts and institutional investors. Of these meetings, 51
were for overseas investors. Total coverage: 260 companies (339 people)

Small meetings

2 timesPresident held one meeting with sell-side analysts, and one meeting with buy-side analysts.

Overseas roadshows

3 timesPresident, director responsible for overseas IR and other members of senior management met withshareholders and investors in Europe, United States, and Asia

IR conferences for individual investors

one time

Held a conference in Tokyo

Production of materials for individual investors

2 timesIssued “Business Report”*Please visit the following page for details of our environmental activities.
http://www.tis.com/group/csr/report/environment/#e01

Guiding principles for addressing environmental issues
1. We promote development and provision of environmentallyfriendly services.
2. We strive to address climate change and make effective use ofresources in consideration of environmental impacts.

3. We comply with environment-related laws, regulations,
voluntary standards, and other the like.
4. We conduct environmental education programs and work toraise environmental awareness of employees.

Initiatives to combat global warming
TIS is working to reduce its rates of energy consumption by 1% from a year earlier.

TIS’ IR Activities Recognized with Awards from External Organizations
At TIS, we believe that timely and objective information disclosure to shareholders and investors is an important obligationthat any listed company must fulfill. Therefore, we strive to enrich our IR activities and improve the content and function of
the IR pages on our website. The success of our efforts is substantiated in part by the following awards.
Internet IR
Excellence
Award



2018 Internet IR Commendation Award (Daiwa Investor Relations Co., Ltd.)
Received award for excellence from 2013 in sixth consecutive year.

Internet IR

Excellence
Award



Internet IR
Excellence
Award



Selected for inclusion in the JPX-Nikkei
index 400 (since August 2018)

Gomez IR Site Comprehensive Ranking 2018 (Morningstar Japan K.K.)
Received award for excellence from 2015 in fourth consecutive year.

OUTPUT
Unit

Fiscal 2017 Fiscal 2018 Fiscal 2019

Thousandkwh

Unit

Fiscal 2017 Fiscal 2018 Fiscal 2019

169,907

157,623

147,921t-CO2

83,76978,12571,096

Heavy fuel oil A2

kl

26

28

32

Heavy fuel oil A2

t-CO2

71

75

87

Light mineral oil

kl

11

11

10

Light mineral oil

t-CO2

28

29

25

389

379

343

City gas

t-CO2

877

854

773

Electricity

EnergyCity gas

1

2

2

Thousand m

2

Results

Electricity

2

1

2

Emissions by scope
Unit

Fiscal 2017 Fiscal 2018 Fiscal 2019

Scope 12

t-CO2

976

958

885

1

t-CO2

83,76978,12571,096t-CO2

84,74579,083

71,980

Scope 2

Scopes 1+2

Coverage:
1. 13 group companies (TIS, INTEC, and key subsidiaries)
2. TIS and INTEC

Case File A verification test of next-generation transit infrastructure in Assabu region

IR Policy
Purpose of IR Activities

As part of its pursuit of fair and transparent management, the Company
engages in investor relations activities in order to fulfill its accountability
obligations to not only the shareholders who entrust management to it, butalso to investors, securities analysts, and capital market participants ingeneral. By engaging in proper disclosure and constructive dialogue throughits investor relations activities, the Company also aims to promote
understanding of the Group, develop long-term trusting relationships, andearn fair valuations of its corporate value.

Basic Policy on IR Activities

Recognizing that investor relations activities are an important element of its
management activities, the Company is committed to fulfilling its accountability obligations to shareholders, investors, securities analysts, and othercapital market participants and to building trusting relationships based on
full communication achieved through ongoing conscientious and positive
engagement in investor relations activities.
To promote understanding of the Group, the Company will endeavor todisclose and explain its management policies, details of its business
operations, business strategies, earnings performance, finances, and othercorporate information in a timely, fair, accurate, and clear manner byparticipating in interviews and responding to inquiries pertaining to investor
relations, holding earnings briefings and small meetings, and engaging inother such activities. Opinions and other feedback on the Group obtained
through constructive dialogue will be shared within the Company throughreports to the Board of Directors and similar channels, and will be used for
purposes such as reviewing the Company's management strategies.
51

Basic Policy on Disclosure

1. Disclosure Standards
To ensure transparency by promoting information disclosure, the Company
discloses material information that could influence investment decisions,
including information disclosed in conformance with the Securities Listing
Regulations of the Tokyo Stock Exchange and the Financial Instruments andExchange Act (meaning information on decisions made by the Company,
occurrences of material facts, and business results and similar information;
the same applies hereinafter). In addition to the above, the Company also
discloses, to the extent possible, information judged useful for furthering
understanding of the Company and the Group.
2. Information Disclosure System
The Company has developed a communications structure linking divisions
and member companies of the Group, and it has established a structure fordisclosing material information that could influence investment decisions,
including information disclosed in conformance with the securities listing
regulations of the Tokyo Stock Exchange and the Financial Instruments andExchange Law, in a fair and timely manner. The Company is committed torigorous information management and preventing insider trading.
* Please see the Company’s web site regarding “3. Methods of Disclosure”,“4. Spokespersons for Investor Relations Activities”, “5. Yet-to-Be-Released
Material Information”, “6. Quiet Period”, “7. Response to Rumors, etc.”,“8. Earnings Forecasts, etc. by Third Parties”, “9. Framework for Disclosing
Information on Company Website” of Basic Policy on Disclosure.
http://www.tis.com/ir/other/policy/

Responding to moves to eliminate coal dependence and switch to use of locally produced and consumed energy
resources, which is a key element of the Japanese government’s Society 5.0 vision, the Group is using its many
years of business experience to help solve societal challenges.
To assist in this process, the Group has partnered with INDETAIL to implement the Project. The aim of this projectis to overcome some of the problems generated by the decline of transport infrastructure caused by the falling birthrate, population aging, anddepopulation of rural areas and the decline of regional economies caused by increases in energy costs. It will do so by developing a next-generationtransport and energy platform that uses advanced ICT to deliver new modes of transport, revitalize regions, and create communities that are sustainablefrom the point of view of meeting residents’ needs and reducing their energy use and environmental footprints.
The project is being led by INDETAIL and TIS and involves a group of other companies including Hokkaido Electric Power Company, Takaoka Toko,
Oracle Japan, Mitsui Sumitomo Insurance, Smart Value, and Cle-Net.

From August 2019, a verification test is underway in Assabu
town on the northern island of Hokkaido, following which theplatform will be rolled out on a full-scale basis.
(1) Launch and management of local currency for limited uses
A new local currency will be launched to encourage use of local transportand revitalize centrally located shopping centers.
(2) Energy management schemeElectricity providers and users will use renewable energies to promotelocal energy production and consumption.
(3) MaaS platform
This platform is tailored to the needs of older people and people withpoor IT skills and access to deliver greater peace of mind in everyday life.

52

Platform that Supports Value Creation Process(ESG Section)

Fiscal 2018 Homepage Quality Ranking Survey of All Listed Companies(Nikko Investor Relations Co., Ltd.)
Received highest award as excellent website in comprehensive ranking, from Fiscal
2015 in fourth consecutive year.

Selected for candidates, 50 companies, ofthe 8th Corporate Value Improvement
Award in fiscal 2019

INPUTMessages from Our External Directors

Corporate Governance

We will draw on theexperience and insights ofexternal directors to improvethe composite corporate
value of the TIS INTEC Group.
TIS’ three external directors haveprovided comments on themes ofimportance and expectations regarding
structural transformation of the TIS
INTEC Group.
Photo: From left, external directors Fumio Tsuchiya, Koichi Sano andNaoko Mizukoshi

Helping to solve social issues as a public entity of society through services that only TIS can provide

Most important function of external directors is to provide opinions based on calm judgment

Fumio Tsuchiya, External Director
In addition to the conventional idea that corporate governance is a practice or process for identifying, correcting and preventing illegal activity, corporate
governance is shifting toward a new awareness—to make management more effective by aligning the interests of stakeholders, which ultimately leads tomaximum corporate value. For that reason, a duty that the Board of Directors must fulfill is, when drafting a management plan, to adequately consider
whether or not the ideas on which the plan is based are in good balance and then, through subsequent verification and evaluation of progress, reflect thatstatus in the next plan.
Independent external directors comprise one-third of TIS’ Board of Directors, and the Company ensures access to business information, including opportunities to get information on key projects before the Board meets, so that we external directors are able to present objective opinions from an external perspective. An issue that concerns me, given that TIS is promoting structural transformation for the future against a backdrop of solid corporate results—
higher sales and higher income—with an emphasis on speed, is the pitfall of prioritizing speed at the expense of prudent risk evaluation. How will the opinions and advice of external directors be incorporated to realize more effective management?
Even as an external director, I know that there are watch points for corporate governance when business is good, just as there are when business is poor,and I am reminded of the need for calm judgment and the importance of stating opinions based on this perspective.

Based on OUR PHILOSOPHY (TIS INTEC Group Philosophy) and Group Vision, we
have formulated basic corporate governance policies aimed at improving theGroup’s corporate value over the medium and long terms. We are working
constantly to enhance corporate governance.
■Basic Policy
TIS will constantly strive to achieve the highest level of corporate governance and will work to maintain andfurther enhance its approaches to corporate governance.
Management believes that the key to good corporate governance is to ensure transparency and fairness
in decision-making processes, make full and effective use of management resources, and raise the integrityof management practices through swift and accurate assessment of situations, from the viewpoint ofpromoting sustainable corporate growth and boosting medium- and long-term corporate value. Accordingly,
management at the Company is committed to upholding good corporate governance in line with the following basic principles.
1. To respect the rights of shareholders and to ensure equality.
2. To consider the interests of stakeholders, including shareholders, and work with stakeholders in an
appropriate manner to achieve stated goals.
3. To disclose corporate information appropriately and ensure transparency.
4. To engage in constructive dialogue with shareholders based on a medium- to long-term investment
perspective.
(From Article 4, Basic Policies on Corporate Governance)

Corporate Governance Structure
Organizational Structure

Company with Audit & Supervisory Board

Chairman of the Board

Chairman and president

Number of Directors

Nine, including three external directors

Director’s Term of Office

One year

Number of Audit & Supervisory Board Members

Five, including three external audit & supervisory board members

Term of Office for Audit & Supervisory Board Members

Four years

Number of Independent Directors

Six, including three external directors and theee external audit &supervisory board members

I take special interest in organizational diversity and will actively contribute to discussions from this perspective.

Naoko Mizukoshi, External Director (Partner of Leftright Law & IP)
TIS formulated Group Vision 2026 to guide the TIS INTEC Group and seeks to shape an organization oriented for the future, contributing to society, brimming with vitality and boasting diversity in its human resources through efforts to instill OUR PHILOSOPHY in the minds of employees at all companies
under the Group umbrella, training for employees and a fine-tuned human resources strategy. This is the cornerstone of structural transformation, based on
the medium-term management plan, which will see the development of strategically anticipated businesses and increased created value. In addition to
Board of Directors’ meetings and briefing sessions held prior to these meetings, TIS sets up opportunities for directors to exchange opinions in a candid andopen atmosphere, conducts dialogue on human resources, the future of stock-based business and overseas strategies, steadily undertakes structural transformation, and strives to create a corporate group that is trusted by and indispensable to society.
That said, issues I feel TIS must continue to address include improving group governance as a company heading up a corporate group of some 20,000
people and dealing with the increasingly fast-paced changes developing across the competitive landscape. For me, I take special interest in the perspectiveof diverse stakeholders, including shareholders; views based on experience as a lawyer and at an IT company; and organizational diversity from a woman’s
standpoint. My participation in discussions reflects these perspectives. I will continue to be an active voice in meetings of the Board of Directors, theNomination Committee, the Compensation Committee and opportunities for opinion exchange, and I will strive to contribute to higher composite corporate
value for the TIS INTEC Group.
53

54

Platform that Supports Value Creation Process(ESG Section)

Koichi Sano, External Director
The level of discussion has steadily improved, thanks to such approaches as briefing sessions held prior to Board of Directors’ meetings, which promotes animated dialogue, as well as a review of discussion standards. In addition, TIS is very keen to maintain excellent corporate governance, guided by basic policy
on corporate governance, and this stance has had a beneficial impact on the evaluated effectiveness of the Board of Directors.
Shareholders place their trust in directors and expect them to engage in multifaceted, constructive discussion of strategies regardless of whether they arefrom inside or outside the Company or the extent of their responses. The responsibilities of external directors are huge, given corporate governance reform,and even the choice of external directors is influenced by diversity requirements. It’s important to promote a higher ratio of outside-to-inside directors on the
Board and welcome a wider range of backgrounds and attributes. The appointment of directors responsible for certain aspects of business, such as ICT andAI, is part of this approach. Going forward, to ensure sustainable growth and higher corporate value for TIS and the TIS INTEC Group, I will offer advice andmonitor status from an external perspective to reinforce the supervisory function of the Board of Directors and keep priorities pointed toward medium- tolong-term strategy themes, such as building a strategic business structure and developing human resources, as well as enhanced governance of operationsgroupwide. While the improvement trend indicates that the number of unprofitable projects is shrinking, I think TIS should shift from ratios to value amounts
and strengthen policies by applying approaches laterally across the Group. I will watch so that operating margin, order profitability to ROE growth, and productivity are not hemmed in by market evaluations.
TIS will have to raise the bar in terms of quality, content and speed in its decision-making process. Consequently, decisions will have to be made objectively, with attention given to such aspects as overall business, the appropriateness of prerequisites and strategies that successfully distinguish TIS from thecompetition or accurate risk management and flexible, effective business management. For projects to support the structural transformation that TIS
seeks—where service-style business is the driver of growth—and then, from the perspective of ESG and SDGs, for this to be not only the profit center of theCompany but also position the Company as a public entity of society, TIS must form decisions that enable the Company to be part of solutions to social
issues through business activities that only TIS—and by extension, the TIS INTEC Group—can provide.

*Please visit the following page for details of our corporate governance.
http://www.tis.com/ir/policy/governance/Organizational Chart

Summary of Results of Analysis and Evaluation of Effectiveness of Entire Board of Directors

General Meeting of Shareholders
Appointment, dismissal

Appointment, dismissal

Nomination
Committee

Corporate
Sustainability
Committee

Discussion/report
Reports

Reports

Supervision

Election, dismissal, supervision

Cooperation

President

Units involved
in internal audits

Reports

Executive Committee
Discussion/report on
significant issuses

Appointment, dismissal

Audit &
Supervisory Board(Members)

Board of Directors(Directors)

Compensation
Committee
Group Internal
Control Committee

Audit, reports
Statement of
opinionCooperation
Reports

Accounting Auditor

Accounting
audit
Cooperation

Internal audits

Delegation of authority to
execute operations

Executive Officers
Evaluation

Divisions/Departments

Affiliated companies

TIS is a Company with an Audit & Supervisory Board, a model chosen for its double-check function through which the Board of
Directors oversees the execution of business activities and the Audit & Supervisory Board audits activities to ensure operations
are legal and appropriate. In addition, the Company aims to strengthen the supervisory function of the Board of Directors byappointing outside directors with industry- and corporate management-related experience and insight and drawing on advice andrecommendations from an independent standpoint to ensure the validity and appropriateness of decision-making by the Board of
Directors.

Directors and Board of Directors

55

management direction as well as meetings ahead of Board of
Directors' meetings—in principle, twice a month—to giveexternal directors and outside members of the Audit &Supervisory Board sufficient background information toparticipate in discussions. In addition, the Company organizes
study sessions with experts—in-house and external—andarranges visits to local Group facilities and offices. TIS also
creates opportunities four times a year when external directors
can exchange opinions with the president and sets up meetings
twice a year that involve only external directors and outside
members of the Audit & Supervisory Board. This facilitatessmooth but vigorous discussion by the Board of Directors.

1. Method of evaluation
TIS distributed a questionnaire regarding the effectiveness of
the Board of Directors to all directors and members of the Audit& Supervisory Board and obtained responses. The Company’s
Board of Directors then used these responses to analyze andevaluate the effectiveness of the Board of Directors.
Note that TIS conducted this effectiveness evaluation basedon advice and verification by an external attorney.
2. Results of analysis and evaluation of effectiveness of
the Board of Directors
The Company’s Board of Directors concluded that a certain
degree of effectiveness had been ensured to appropriately
supervise the approval of important management matters andbusiness execution, such as the execution status of businessactivities and investments at the Company and Groupc­ ompanies, through deliberation based on Company regulations. In addition, the Board of Directors concluded that thelevel of effectiveness continues to trend upward, reflecting
improvement measures based on the results of the effectivenessevaluation conducted in the previous fiscal year.
However, management acknowledged the importance ofstrengthening governance at each Group company through theBoard of Directors and for more active opinion exchange on
important themes at meetings of the Board of Directors toensure greater effectiveness in running such meetings.
3. Future issues and associated responses, based on­analysis and evaluation
In light of the analysis and evaluation previously mentioned, TIS
will focus particular efforts on the following issues.
(1)	Strengthen governance of the Group and respond toissues with sense of speed
Through the Board of Directors, the status of governancewithin the Group is always known and responses to issues are
executed with a sense of speed.
(2)	Promote more active opinion exchange on key themes
at meetings of the Board of Directors
The Board of Directors exchanges opinions on shareholder composition, overseas business strategies and other issues of importance to the Group. Going forward, the Board of Directors will
pursue a more robust approach to the exchange of opinions on
key themes, such as business strategy, human resources strategy and investment strategy with market trends and the stateof competition in mind. Opinions with potential will bereflected in management practices with a sense of speed.

Policy and Procedures for Election, Dismissal, and Nomination of Directors, etc.
In nominating candidates for directors, audit & supervisoryboard members and executive officers, the Board of Directors
will nominate persons with abundant experience, a high levelof insight and advanced specialization based on the following
election criteria that make them suitable as directors or audit& supervisory board members in order to realize effective corporate governance and contribute to the sustainable growthof the Company as well as the enhancement of its medium-to long-term corporate value while also considering aspects ofdiversity such as gender and internationality.
If a situation arises where a management executive should
be dismissed, the Board of Directors shall determine a dismissal proposal. However, the dismissal of a director shall be
conducted in accordance with the Companies Act and otherrelevant provisions.

56

Platform that Supports Value Creation Process(ESG Section)

Reason for Selection of Current Corporate Governance Organization

As stipulated in its Articles of Incorporation, the Company's
Board of Directors will comprise at least three and no morethan 15 directors, and to strengthen the supervisory functionsof the Board of Directors, a policy has been established thattwo or more of the directors must be independent external
directors. At present, three independent external directors havebeen appointed.
For swift and dynamic decision-making by the Board of
Directors, the Board of Directors convenes in principle once
monthly and also meets on an ad hoc basis whenevernecessary.
TIS holds an information meeting once a year to present

Since fiscal 2016, ended March 31, 2016, the Company has
evaluated the effectiveness of the Board of Directors each fiscal
year. This process reveals issues and points for improvement
and leads to initiatives that will raise the effectiveness of theBoard of Directors to a higher level. For the fiscal 2019 evaluation, all directors and members of the Audit & Supervisory
Board were given a questionnaire to be submitted anonymously. The questionnaire asked them to conduct a comprehensive self-evaluation and self-analysis of the composition andoperation of the Board of Directors, and then the Board of
Directors pursued discussions based on the results. The method
and results of the evaluation, as well as future issues brought tolight through this process and measures to address such issues
are described below.

Reason for Election of Directors and Audit & Supervisory Board Members

Directors
Toru Kuwano, Chairman and President
Date of Birth: May 3, 1952
April 1976	Joined Toyo Information Systems Co., Ltd.
­(currently TIS Inc.)
June 2000
Director of the Company
April 2004
Executive Director of the Company
April 2008
Executive Managing Director of the Company
April 2010	Executive Vice-President and Representative
Director and General Manager of Financial Industry
HQ of the Company
April 2011	President and Representative Director of theCompany
June 2018	Chairman, President and Representative Director of
the Company, in charge of Auditing Dept. (to­present)

Reason for Election
After assuming the office of President and Representative Director of theGroup company, Mr. Kuwano was appointed as a Director of the Company inJune 2013. Since June 2016, he has assumed the office of President andRepresentative Director of the Company.
He has a wealth of experience and knowledge about the Company’s and
its Group’s business, as well as in business administration.
He was appointed as a Director since he is highly expected to continue topromote the Medium-Term Management Plan (from 2018 to 2020) and fulfill
the duties of significant decision-making for the Group as well as the administration and oversight of business management.

Masahiko Adachi, Representative Director, Executive Vice President
Reason for Election
Mr. Adachi has been in the office of Representative Director since June 2018
following the office of Division Manager of the corporate department and thefinancial system department of a financial institution and the Company’sGroup company.
Based on these experiences, he was appointed as a Director since he ishighly expected to continue to promote group governance as set out in theMedium-Term Management Plan of the Group (from 2018 to 2020), centeredon the corporate function, and fulfill the duties of significant decision-making
for the Group and oversight of business management.

57

Reason for Election
Mr. Yanai was mainly engaged in corporate section in the corporate planningdepartment of the Company and its Group company for many years. He
assumed the office of Executive Officer and Division Manager of corporate
planning division of the Company in April 2011. Since June 2016, he has been
serving as a Director of the Company.
He has a wealth of experience and knowledge about the business of theCompany’s and its Group, as well as in business administration. Based on theseexperiences, he was appointed as a Director since he is highly expected to continue to promote the Medium-Term Management Plan (from 2018 to 2020) ,and fulfill the duties of significant decision-making for the Group and theadministration and oversight of business management as a Director.

Takayuki Kitaoka, Director
Date of Birth: December 14, 1960
April 1984
Joined INTEC Inc.
April 2015
General Manager of BPO Division of INTEC Inc.
April 2016	Executive Officer, General Manager of Corporate
Planning Division of INTEC Inc.
April 2017	Managing Executive Officer, General Manager ofCorporate Planning Division of INTEC Inc.
April 2018	President and Representative Director of INTEC Inc.
(to present)
June 2018	Director of the Company (to present)

Reason for Election
Mr. Kitaoka was engaged in business related to IT infrastructure of INTEC Inc.,
the Company’s major subsidiary, and served in management administration of
the Group companies at the Company for three years since April 2012. 		
Furthermore, he has assumed the office of President and Representative
Director of INTEC Inc. since April 2018 and the office of Director of theCompany since June 2018.
He was appointed as a Director since he is highly expected to continue topromote the duties of INTEC Inc. assigned by the Medium-Term Management
Plan (from Fiscal 2018 to Fiscal 2020) and to fulfill the duties of significant
decision-making for the Group and the administration and oversight of business management, based on the above experiences and from the viewpoint ofGroup management.

Akira Shinkai, Director

Yasushi Okamoto, Director and Senior Managing Executive Officer
Date of Birth: March 3, 1962
April 1985	Joined Toyo Information Systems Co., Ltd. (currently TIS Inc.)
April 2011	Executive Officer, Department Manager ofCorporate Planning & Control Dept. of theCompany
April 2013	Managing Executive Officer, Division Manager of IT
Solutions Services SBU. of the Company
April 2016	Senior Managing Executive Officer, Division
Manager of Industries & Solutions SBU of theCompany
June 2018	Director, Senior Managing Executive Officer andSector Director of Service Strategy Sector of theCompany (to present)

Date of Birth: November 14, 1963
April 1987
Joined the Long-Term Credit Bank of Japan, Limited
January 2000	Joined Toyo Information Systems Co., Ltd.
­(currently TIS Inc.)
April 2009	Executive Officer, Department Manager ofCorporate Planning & Control Dept., Corporate
Planning & Control Div. of the Company
May 2015	Managing Executive Officer, Division Manager ofCorporate Planning Division of the Company
June 2016	Director, Managing Executive Officer and Division
Manager of Corporate Planning SBU of the Company
April 2018	Director, Senior Managing Executive Officer andSector Director of Industry Strategy Sector of theCompany (to present)

Reason for Election
Mr. Okamoto has been serving as Senior Managing Executive Officer andDivision Manager of the planning and development department of industrial
systems since July 2016, and has been in the office of Director since June
2018, after having been engaged in corporate business in the corporate­planning department of the Company for many years.
Based on these experiences, he was appointed as a Director since he ishighly expected to continue to promote the Medium-Term Management Plan(from 2018 to 2020), and fulfill the duties of significant decision-making for
the Group and oversight of business management.

Date of Birth: March 24, 1959
February 1986	Joined Yokogawa U System Corporation
April 2000	Joined YDC Corporation
June 2001	Director of YDC Corporation
October 2009	Joined Nippon System Gijutsu Co., Ltd.
June 2010	Director and Managing Executive Officer of Nippon
System Gijutsu Co., Ltd.
April 2011	Joined INTEC Inc. Deputy General Manager of NSG
Department of INTEC Inc.
June 2012	Executive Officer, General Manager of NSG
Department of INTEC Inc.
May 2015	Managing Executive Officer, General Manager ofIndustrial Solutions Business Division of INTEC Inc.
April 2016	Managing Executive Officer, General Manager ofMetropolitan Social Service Headquarters of INTEC Inc.
April 2018	Director, Executive Vice President, in charge ofCorporate Information Department, Business
Strategy Promotion Division, and Metropolitan
Distribution Service Headquarters, and General
Manager of Metropolitan Distribution Service
Headquarters of INTEC Inc. (to present)
June 2018	Director of the Company (to present)

Reason for Election
Mr. Shinkai was engaged in business of new service planning and marketingand has assumed the office of Director and Executive Vice President of INTEC
Inc., the Company’s major subsidiary, since April 2018, and the office of
Director of the Company since June 2018.
Based on these experiences, he was appointed as a Director since he ishighly expected to continue to promote the Medium-Term Management Plan(from 2018 to 2020), and fulfill the duties of significant decision-making for
the Group and the administration and oversight of business management.

58

Platform that Supports Value Creation Process(ESG Section)

Date of Birth: May 9, 1956
April 1981	Joined Sanwa Bank, Limited (currently MUFG Bank,
Ltd.)
April 2011	Executive Officer, Division Manager of Corporate
Management Div. of TIS Inc.
April 2013	Managing Executive Officer, Division Manager ofFinancial Industry SBU. 1 of the Company
April 2016	Senior Managing Executive Officer, Division
Manager of Financial Industry SBU. 1 and Division
Manager of Financial Industry SBU. 3 of theCompany
April 2018	Executive Vice President, in charge of Corporate
Planning SBU of the Company
June 2018	Representative Director, Executive Vice President, incharge of Corporate Planning SBU of the Company(to present)

Josaku Yanai, Director and Senior Managing Executive Officer

External Directors

Tatsufumi Matsuoka, Standing Audit & Supervisory Board Member

To help the Group post constant growth and achieve higher corporate value over the medium to long term, TIS strives tokeep participation of external directors in good balance with inside directors and looks for people who possess diverse
knowledge, experience and capabilities.
■ Corporate management■ Financial accounting

Koichi Sano*, External Director
Date of Birth: August 30, 1948
April 1971	Joined Mitsui Petrochemical Industries, Ltd. (currently Mitsui
Chemicals, Inc.)
June 2003	Executive Officer and Manager of Finance Department of
Mitsui Chemicals, Inc.
June 2005
Executive Director of Mitsui Chemicals, Inc.
June 2009	Executive Vice-President and Representative Director of Mitsui
Chemicals, Inc.
June 2013
Special Councilor of Mitsui Chemicals, Inc.
June 2015
Retired from Mitsui Chemicals, Inc.
June 2016
Director of the Company (to present)(Other Important Concurrent Positions)
External Director of Nippon Yakin Kogyo Co., Ltd.
Reason for Election
Mr. Koichi Sano worked mainly in the finance and accounting departments, and served as
Executive Vice-President and Representative Director of Mitsui Chemicals, Inc., and has awide range of experience and a wealth of expertise in corporate management. He wasappointed as an External Director since his advice and suggestions from an independent
perspective by utilizing these experiences and expertise in the Company’s business will
ensure that the decisions to be made by the Company’s Board of Directors will be reasonable and appropriate, and he is highly expected to be a person who will contribute to theenforcement of the corporate governance of the Company.

Fumio Tsuchiya*, External Director

August 2010	Section Manager of Internal Auditing Office of Faith, Inc.
June 2011
Full-time Audit & Supervisory Board Member of Faith, Inc.
June 2017
Director of the Company (to present)
Reason for Election
Mr. Tsuchiya previously worked in an important position in overseas offices and the
Corporate Planning Department of Japan Airlines Co., Ltd. After having assumed theoffice of Director of Japan Airlines in June 2004, he served as Managing Director and wasthereafter appointed as President & CEO of JALCard, Inc. in June 2007, which is a groupcompany of Japan Airlines. He has a wide range of experience and a wealth of expertisein corporate management.
He was appointed as an External Director since his advice and suggestions from an
independent perspective by utilizing these experiences and expertise in the Company’sbusiness will ensure that the decisions to be made by the Company’s Board of Directors
will be reasonable and appropriate, and he is highly expected to be a person who willcontribute to the enforcement of the corporate governance of the Company.

Naoko Mizukoshi*, External Director
Date of Birth: September 23, 1967
April 1993	Joined Legal Training and Research Institute of Supreme
Court of Japan
April 1995
Registered as a lawyer with Osaka Bar Association
	Joined Miyazaki Sogo Law Office (currently Legal
Professional Corporation Miyazaki Sogo Law Office)April 1998	Registered as a lawyer with Yokohama Bar Association (currently Kanagawa Bar Association)
	Joined Legal Department of Nomura Research Institute, Ltd.
September 1999	Registered as a lawyer with Daini Tokyo Bar Association
Joined Legal Department of Autodesk, Ltd.
September 2002	Joined Legal Headquarters of Microsoft Co., Ltd.
Registered as a lawyer in the State of California, U.S.A.
November 2006 Joined TMI Associates
January 2008
Partner of TMI Associates■ International experience ■ Legal work
■ ICT

March 2010	Founded Endeavour Law OfficePartner of Endeavour Law Office
June 2018
Director of the Company (to present)
December 2018 Partner of Leftright Law & IP (to present)
Reason for Election
Ms. Mizukoshi is a qualified lawyer and has a wealth of professional knowledge of, andexperiences in, intellectual property, ICT and international transactions.
Her advice and suggestions from an independent perspective will ensure that thedecisions to be made by the Company’s Board of Directors will be reasonable and appropriate by utilizing these experiences and expertise in the Company’s business, and she ishighly expected to be a person who will contribute to the enforcement of the corporate
governance of the Company.
She has not participated in corporate management but has expertise on corporate
legal works. Therefore, she was appointed as an External Director since she could discharge duly the duties of External Director.

Audit & Supervisory Board Members
Katsuhiko Ishii, Standing Audit & Supervisory Board Member
Date of Birth: November 5,1953
April 1976	Joined the Long-Term Credit Bank of Japan, Limited
October 2001 Joined SORUN Corporation
June 2007	Director and Executive Officer of SORUN Corporation
April 2011	Managing Executive Officer, Division Director of the
Financial Industry SBU. , Financial Industry HQ. and Division
Manager of the Financial Systems Div. 3 of TIS Inc.
October 2011	Managing Executive Officer and Deputy Division Manager
of Financial Industry SBU. of the Company.
April 2012	Managing Executive Officer and Deputy Division Manager
of Corporate SBU. of the Company.

59

April 2014	Managing Executive Officer and Division Manager of Corporate SBU. of
the Company.
April 2016
Advisor to the Company.
June 2016	Full-time Audit & Supervisory Board Member of the Company (to present)
Reason for Election
Mr. Ishii worked for a financial institution and served as General Manager of the
Corporate Department of a Group company. He also served as an advisor at the same
Group company. Based on these experiences, he was appointed as an Audit & Supervisory
Board Member as he can be expected to oversee the execution of duties of the Company’s
Directors in a fair and appropriate manner.

April 2016	Managing Executive Officer, Deputy Division Manager of Public Solutions& Services SBU and Deputy Division Manager of Industries SBU of theCompany
Chairman and Director of TIS System Service Inc.
April 2019
Advisor to the Company
June 2019	Standing Audit & Supervisory Board Member of the Company (to present)
Reason for Election
Mr. Matsuoka has a wealth of expertise in finance and accounting as well as corporate
management based on experience accumulated through his service at financial institutions and management of companies over many years. He was appointed as an Audit &Supervisory Board Member, as he is expected to discharge audit and supervisory duties
regarding the execution of duties of the Company’s directors in a fair and appropriatemanner.

External Audit & Supervisory Board Members
To help the Group post constant growth and achieve higher corporate value over the medium to long term, TIS strives tokeep participation of external audit & supervisory board members in good balance with inside members and looks forpeople who possess diverse knowledge, experience and capabilities.

Taigi Ito (Certified Public Accountant and President, Ito Office)*, External Audit & Supervisory Board Member
Date of Birth: October 13,1946
January 1970
Joined Tsuji Audit Corporation
February 1989	Representative Partner of MISUZU Audit Corporation
July 2004	Deputy Chairman of the Japanese Institute of Certified Public
Accountants
August 2007
Chief of Ito CPA Firm (to present)
April 2009	Professor at Graduate School of Accountancy, Waseda
University
June 2012	Audit & Supervisory Board Member of the Company(to present)

Reason for Election
Mr. Ito is a licensed Certified Public Accountant. His expertise and knowledge in the fieldof finance and accounting and professional experience are beneficial to the Company inenforcing its audit system. Although he was not directly involved in corporate management, he was appointed as an External Audit & Supervisory Board Member as he wasconsidered to be well qualified to appropriately perform the duties of Audit & Supervisory
Board Members given the above credentials.

Muneaki Ueda (Chairman, Professional Bank, Inc.)*, External Audit & Supervisory Board Member
Date of Birth: January 1,1948
August 1983
Joined Temporary Center Inc. (currently, Pasona Inc.)
January 1988	Executive Director and Manager of International Division andManager of Business Development Dept. of Pasona Inc.
	President and Representative Director of Pasona N A, Inc.
April 1991	Executive Managing Director and General Manager of Sales
Division of Pasona Inc.
June 1993
Director and Vice-President of Pasona Inc.
June 2000
President and Representative Director of Pasona Inc.

■ Corporate management■ International experience

August 2004
President and Representative Director of Professional Bank Inc.
April 2007	Chairman and Representative Director of Professional Bank Inc. (topresent)
June 2012	Audit & Supervisory Board Member of the Company (to present)
Reason for Election
Mr. Ueda has a wealth of experience and wide-ranging insight as a corporate executive.
He was appointed as an External Audit & Supervisory Board Member in expectation ofobtaining his overall management advisory and management oversight on execution ofduties from an external perspective.

Sadahei Funakoshi*, External Audit & Supervisory Board Member
Date of Birth: August 15,1954
April 1977
Joined Mitsubishi Corporation
March 2003	Transferred to Mitsubishi Corporation Financial &Management Services (Japan) Ltd. as Director and VicePresident
April 2009	Transferred to Mitsubishi Corporation LT, Inc. as Advisor
June 2009	Director and Managing Executive Officer of Mitsubishi
Corporation LT, Inc.
June 2011	Director and Senior Managing Executive Officer of Mitsubishi
Corporation LT, Inc.
January 2013	Representative Director and Senior Managing Executive
Officer of Mitsubishi Corporation LT, Inc.

■ Corporate management■ Financial accounting■ Industry knowledge■ International experience

May 2013
Statutory Auditor of IT Frontier Corporation
July 2014
Statutory Auditor of TATA Consultancy Services Japan, Ltd.
June 2016	Audit & Supervisory Board Member of the Company (to present)
Reason for Election
Mr. Funakoshi has a wealth of experience and knowledge in corporate management, withhis experience in the management of investment and loan, credit and administrative
departments of Mitsubishi Corporation, as well as his service as an auditor at IT companies. He was appointed as an External Audit & Supervisory Board Member in expectationof obtaining his overall management advisory and management oversight on execution ofduties from an external perspective.

* Designated for Independent Director/Auditor as specified by the Tokyo Stock Exchange in Japan.
Notes: 1. As of June 25, 2019.
2.	As of July 1, 2016, the Company (previous name, IT Holdings Corporation) changed its name to TIS Inc. due to the absorption-type merger with the p­ revious TIS Inc.
(an absorbed company), wholly-owned subsidiary of the IT Holdings Corporation (a surviving company).

60

Platform that Supports Value Creation Process(ESG Section)

Date of Birth: May 10, 1948
July 1971
Joined Japan Airlines Co., Ltd.
May 1999	Director and Section Manager of Personnel & Corporate
Planning Section of JAL Hotels Co., Ltd. (currently Okura
Nikko Hotel Management Co., Ltd.)
October 2002	Executive Officer, Deputy Section Manager of Corporate
Planning Section of Japan Airlines System, Inc. (currently
Japan Airlines Co., Ltd.)
June 2004	Director and Section Manager of Corporate Planning
Section of Japan Airlines Corporation (currently Japan
Airlines Co., Ltd.)
April 2006	Managing Director, in charge of PR & IR, Legal Affairs andGeneral Affairs of Japan Airlines Co., Ltd.
June 2007
President & CEO of JALCard, Inc.
June 2010Retired from JALCard, Inc.

■ Corporate management ■ Industry knowledge■ International experience

Date of Birth: December 2, 1957
April 1980	Joined the Tokai Bank, Ltd. (currently MUFG Bank, Ltd.)May 1999
General Manager, Ise Branch of the Tokai Bank, Ltd.
January 2001	General Manager, Anjo Branch of the Tokai Bank, Ltd.
January 2003	General Manager of Corporate Department, Corporate
Sales Division and General Manager of Nagoyako Branch,
UFJ Bank Limited (currently MUFG Bank, Ltd.)
January 2006	Senior General Manager, The Bank of Tokyo-Mitsubishi UFJ
Ltd.(currently MUFG Bank, Ltd)
February 2007	General Manager, Hamamatsu Branch of The Bank ofTokyo-Mitsubishi UFJ Ltd.
May 2009
Joined MST Insurance Service Co. Ltd.
April 2013	Senior Managing Director and General Manager of Nagoya
Corporate Sales Division of MST Insurance Service Co. Ltd.
April 2015	Managing Executive Officer and Deputy Division Manager
of Corporate SBU of TIS Inc.
Chairman and Director of TIS System Service Inc.

Training Policy for Directors and Audit & Supervisory Board Members
For directors and auditors, including external directors andexternal auditors, the Company will provide and arrange training opportunities that are appropriate for individual directors
and auditors and support the cost of such training. The objective of such training is to provide an opportunity to acquire necessary knowledge regarding the Group's businesses, financial

affairs and organization and to understand the duties andresponsibilities required of directors and Audit & Supervisory
Board Members when assuming office, as well as to continuously update these attributes during the term of office.

External Directors and External Audit & Supervisory Board Members
The Company has three external directors and three external
Audit & Supervisory Board Members. The determination of the
independence of external directors and external Audit &Supervisory Board Members is prescribed by the requirementsof the Companies Act as well as judgement criteria to ensure
the independence of external directors and external Audit &Supervisory Board Members as described below, with reference
to the rules and regulations of the Tokyo Stock Exchange.

Primary Activities of External Directors and External Auditors (Year ended March 31, 2019)
Attendance at Board of Directors
Name

Attendance rate

Primary Activities

100%

Attended all 17 meetings of the Board of Directors held in fiscal 2019

Fumio Tsuchiya

100%

Attended all 17 meetings of the Board of Directors held in fiscal 2019

Naoko Mizukoshi

100%

Taigi Ito
External Audit& Supervisory Muneaki Ueda
Board Members
Sadahei Funakoshi

94.1%

Attended 16 of 17 meetings of the Board of Directors held in fiscal 2019

94.1%

Attended 16 of 17 meetings of the Board of Directors held in fiscal 2019100%

Attended all 17 meetings of the Board of Directors held in fiscal 2019

External
Directors

Attended all 12 meetings of the Board of Directors held after her appointment
on June 26, 2018.

Attendance at Audit & Supervisory Board
Name

Taigi Ito

External Audit& Supervisory Muneaki Ueda
Board Members
Sadahei Funakoshi

Attendance rate

Primary Activities

91.7%

Attended 11 of 12 meetings of the Audit & Supervisory Board held in fiscal 2019

91.7%

Attended 11 of 12 meetings of the Audit & Supervisory Board held in fiscal 2019100%

Attended all 12 meetings of the Audit & Supervisory Board held in fiscal 2019

Summary of Content of Liability Agreements
In accordance with Article 427, Paragraph 1 of the Companies
Act, each of Audit & Supervisory Board enters into an agreement with the Company that limits legal responsibility for liability compensation as set forth under Article 423, Paragraph 1 of61

the same law.
The limit of liability compensation, based on these agreements, is an amount provided for in Article 425, Paragraph 1,of the same law.

The basic policy on officers’ compensation is to provide greater
incentive to improve business results through a system of compensation linked to measures of Company performance, andsuch amounts are determined through a decision by the Boardof Directors, based on discussion and suggestions by theCompensation Committee.
Compensation to Company directors consists of a basic
component, a performance-linked component and performance-linked stock incentive. Basic compensation is paid
according to the size of the role and scope of responsibilities ofeach position. Performance-linked compensation is determinedby the degree to which measures of corporate performance
have been achieved, on the basis of the management plan foreach fiscal year, and shall fall within a performance evaluation
coefficient of between 0% - 30% of basic compensation foreach position.
For the performance-linked stock incentive, the Board of
Directors established share delivery rules when the performance-linked stock incentive plan was introduced. Points are
granted to directors on a scale within 0% - 15% of base compensation set for each position according to the level ofachievement made toward reaching performance targets statedin the management plan as provided for in the rules. The number of shares delivered will correspond to the number of points
accumulated.

Compensation paid to external directors is limited to basic
compensation only, with no performance-linked component.
Compensation for Audit & Supervisory Board members is
decided through discussion by corporate auditors. From theperspective of maintaining a high degree of independence,compensation is not linked to business performance and consists solely of basic compensation.
Furthermore, to reflect medium- to long-term business performance, directors (excluding outside directors) are asked tocontribute at least a certain portion of their basic compensation
toward the purchase of treasury stock through the Company’s
share ownership plan for directors and officers, and they are
expected to retain such stock in full for the duration of theirtime in office so that the acquired stock shares value with allshareholders.
Note that TIS introduced this performance-linked stockcompensation system in fiscal 2019 for directors, executive officers and executive fellows (excluding external directors, nonexecutive directors and residents outside Japan) with theobjective being to make eligible directors more aware of theircontribution to enhanced business performance and improved
corporate value over the medium to long term and to aligntheir interests with those of shareholders.
Platform that Supports Value Creation Process(ESG Section)

Koichi Sano

Outline of Policy on Officers' Remuneration(1) Compensation rate by position
Base compensation

Performance-linked
compensation

Performance-linked stockcompensation

Directors (excluding non-standing
directors)

68%

21%

11%

External Directors

100%

—

—

Audit & Supervisory Board Members

100%

—

—

External Audit & Supervisory Board
Members

100%

—

—

(2) Process for determining executive compensationa.	Attainment of business plans formulated at the beginning of the fiscal year in accordance with the mid-term management plan is
confirmed by the Performance Evaluation Committee.
b.	The President and Representative Director evaluates the directors and Audit & Supervisory Board members at the meeting of the
Performance Evaluation Committee referred to in a. above.
c.	The Compensation Committee meets to consult on the results of the evaluation in b. above and amounts of compensation basedon the results of evaluation.
d.	The Board of Directors votes on whether to approve the amounts of executive compensation considered by the Compensation
Committee in c. above.
Performance-linked stock compensation is calculated in accordance with the Stock Issuance Regulations. The Board of Directors andthe Compensation Committee have no room for discretion.

62

(3) Activities of the Advisory Committee on Determination of Executive Compensation
The Compensation Committee met four times during the fiscal year under review to consider the appropriateness of the Company’scompensation based on a comparative analysis of the amounts of the Company’s executive compensation and executive compensation at other companies by a research firm, and the method of calculation and appropriateness of the amounts of performancelinked compensation. A proposal was put to the Board of Directors concerning executive compensation based on the results ofdeliberation by said body.
(4) Methods of calculation of performance-linked compensation and performance-linked stock compensation
Performance-linked compensation is determined based on a comprehensive assessment of the degree of attainment of corporate
performance indicators determined based on the management plan for each fiscal year. In fiscal 2019, performance-linked compensation was determined by applying a 30% performance evaluation coefficient based on the level of attainment in the previous fiscal
year of targets including Consolidated Sales, Consolidated Operating Income, and Consolidated ROE.
Previous fiscal year (Fiscal 2018, ended March 2018)

Corporate performance indicators

Estimates

ActualConsolidated Sales¥400,000 million¥405,648 million

Consolidated Operating Income¥30,000 million¥32,743 million

8.0%

9.9%

Consolidated ROE

Remuneration

Basic
remuneration

Performance-linked
remuneration

Performance-linked
Stock compensation

Directors(External Directors)

10
(4)

¥275
(¥27)

¥203
(¥27)

¥46
(−)

¥26
(−)

Audit & Supervisory Board Members(External Auditors)

6
(3)

68
(25)

68
(25)

−

−

(−)

(−)

Total
(External Directors and External Auditors)

16
(7)

344
(53)

271
(53)

46
(−)

26
(−)

(Millions of yen)

Notes: 1.	For the fiscal year ended March 31, 2019, compensation for directors does not include the employee portion for directors who serve concurrently as employees. The Company has not introduced a retirement benefit system for directors, and does not pay any directors’ bonuses.
2.	As of March 31, 2019, the Company has nine directors, including three external directors. The discrepancy between this number and thenumber of directors listed as recipients above is attributable the inclusion of three directors, one being an external director, who retired at
the conclusion of the 10th Annual General Meeting of Shareholders on June 26, 2018, and the inclusion of two directors who serve without compensation.
3.	As of March 31, 2019, the Company’s Audit & Supervisory Board comprises five members, three of whom are external. The discrepancy
between this number and the number of directors listed as recipients above is attributable the inclusion of one member who retired at theconclusion of the 10th Annual General Meeting of Shareholders on June 26, 2018.
4.	Limits on compensation (basic compensation and performance-linked compensation) for directors and members of the Audit & Supervisory
Board were approved at the First Annual General Meeting of Shareholders on June 25, 2009, with the limit on compensation for directors
set at ¥400 million per year (of which, external directors receive no more than ¥50 million) and that for members of the Audit &Supervisory Board set at ¥85 million.
5.	The performance-linked stock incentive is booked as an expense for six directors (excluding external directors and non-full-time directors) inthe current business year.
Note that this performance-linked stock incentive was approved by shareholders at the 10th Annual General Meeting of Shareholders on June
26, 2018, wherein the upper limit on the number shares is 61,300 per business year, to be delivered through a trust into which the Company
contributes up to ¥500 million in each specified period (three business years) for eligible directors (excluding external directors, non-full-time 		
directors), executive officers and executive fellows.

Method of calculation of performance-linked stock compensation

Nomination Committee, and Compensation Committee

Calculation formula
Number of shares granted (points*) = base amount x performance variation coefficient / unit acquisition price*Rounded down to the nearest decimal
Performance indicators

Consolidated Operating Income

Fiscal 2019 ended March 2019
Estimates

ActualCommittee’s Name, Composition, and Attributes of Chairperson
Nomination Committee
Remarks¥35,000 million¥38,044 million

10.2%

11.5%

Service Business Sales¥32,558 million¥35,393 million

Note 1

Employee Satisfaction

40.0%

43.0%

Note 2

Consolidated ROE

4

4

Inside Directors

1

1

Chairperson(5) Outline of performance-linked stock compensation system
An Executive Compensation BIP Trust (hereafter, “BIP Trust scheme”) was introduced as a performance-linked stock compensation
system by resolution of the 10th General Meeting of Shareholders held on June 26, 2018. Those eligible for benefits are directors(excluding external directors and non-executive directors), executive officers with portfolios, executive officers, and executive fellows(hereafter, “Directors, etc.”).
a. Organization of the BIP Trust schemeb. Total number of shares to be granted to Directors, etc.: 61,300 shares in one financial year (upper limit)c. Scope of individuals able to receive beneficiary rights and other rights under the BIP Trust scheme:	Individuals who have retired from being a Director, etc. and meet the beneficiary conditions specified in the Stock Issuance
Regulations.

Compensation Committee

All Committee Members
Outside Directors

Notes: 1.	Predefined as a target in the Stock Issuance Regulations based on operations selected for their contribution to the structural transformationof the Company on a non-consolidated basis. They do not represent service business sales on a consolidated basis.
2.	Determined by a questionnaire survey conducted by an outside organization. Satisfaction is scored based on the proportions of employees
who answered “often applies (4)” regarding “trust.”

63

Remuneration by type

Recipients(Persons)3

3

Inside director

Inside director

1. Method of selecting committee members
	Members of the Nomination Committee and the Compensation Committee are selected on the advice of the Nomination Committee, of which
the majority of members are independent external directors, and given final approval by the Board of Directors. Note that the chairman of bothcommittees is, at the present time, Toru Kuwano, president and representative director of TIS, and the other members of these committees are
independent external directors (Koichi Sano, Fumiya Tsuchiya and Naoko Mizukoshi).
2. Role of committee members(1) Role of members on Nomination Committee• Provide advice for selecting candidates to the position of director and matters related to the appointment of such individuals(2) Role of members on Compensation Committee• Provide advice on matters related to decisions on compensation for directors
3. Status of activities by committees (including frequency of meetings, major topics of discussion, attendance on a member basis)(1) Nomination Committee		In fiscal 2019, ended March 31,2019, the committee met three times, provided advice on the appointment and retirement of key individuals,
including directors, and presented proposals on changes to director composition, based on discussions by committee members.
		The committee also gave advice on approaches for a successor plan.
		The attendance ratio for members of this committee was 100% for everyone(2) Compensation Committee		In fiscal 2019, the committee met four times and discussed the appropriateness of the Company’s compensation package through a comparative analysis of director compensation amounts at other companies and at TIS, based on the findings of a research company, as well as theappropriateness of the calculation method used to determine performance-linked compensation. Proposals were made to the Board of
Directors on director compensation, based on the results of discussion by the committee. The attendance ratio for members of this committee
was 100% for everyone.
64

Platform that Supports Value Creation Process(ESG Section)

The amount of performance-linked stock compensation was determined by applying a performance-linked coefficient of 150%. Thiswas because Consolidated Operating Income, Consolidated ROE, and Service Business Sales (employed as indicators of corporate
performance in the Stock Issuance Regulations) and Employee Satisfaction (employed as an indicator of job satisfaction among
employees) exceeded the targets set for the fiscal year ended March 2019 (100% performance-linked coefficient when attained) bya wide margin.
These indicators were adopted as performance measurements for the following reasons, so as to ensure attainment of enhanced
corporate value as expected by the shareholders: Consolidated Operating Income, Consolidated ROE, and Service Business Sales
were adopted as financial indicators to encourage pursuit of business growth, and Employee Satisfaction was adopted as a nonfinancial indicator to encourage pursuit of higher job satisfaction among employees.

Remuneration for Directors and Audit & Supervisory Board Members (Year ended March 31, 2019)

Constructive Dialogue with Shareholders
TIS will actively engage in constructive dialogue with shareholders based on the IR Policy in order to contribute to theCompany's sustainable growth and the enhancement of its
medium- to long-term corporate value. In addition, theCompany will strive to develop a system to promote constructive
dialogue with shareholders. The director of the IR Department
will supervise dialogue with shareholders, consider response
methods with the President and Representative Director, executive officers in charge, and the IR Department and respond
appropriately. The IR Department will share information andexchange opinions in a timely manner based on respective specialist standpoints with relevant departments and support dialogue with shareholders through organic collaboration.
In relation to shareholders, TIS will strive to enhance meansof dialogue such as individual interviews as well as responses by

Takeover Defense Measures

telephone and the holding of business results briefings andsmall meetings, etc. Furthermore, in addition to actively conducting information disclosure, which will be the premise for
dialogue, the Company will strive to expand the contents of theIntegrated Report, which will be positioned as an effective toolfor dialogue.
TIS will share opinions, etc. put forward in constructive dialogue with capital market participants such as shareholders,investors and securities analysts within the Company throughreports, etc. to the Board of Directors, and use them in reviewing
the Company's management strategy, and for other purposes.
In the case of dialogue with shareholders, TIS will pay sufficient attention to the fairness of information disclosure andmanage internal information appropriately in accordance with
the Rules for Prevention of Insider Trading.

Strategically Held Shares
For cross-shareholdings with diminished significance, as
identified through the aforementioned method, TIS moves toreduce cross-shareholdings in accordance with basic policy.
2. P olicy on exercising voting rights relating to strategically held shares
TIS appropriately exercises voting rights for the listed shares in
its possession after comprehensively determining whether suchaction will contribute to sustainable corporate growth andhigher medium- to long-term corporate value of the TIS INTECGroup and investee company.
3. Relationships with strategic shareholders
If strategic shareholders of TIS indicate an intention regarding
the sale, etc. of TIS shares, we will respond appropriately without preventing such a sale. Moreover, we will not conducttransactions that lack economic rationality with strategic shareholders.

Numbers of stocks held by the Company for purposes other than portfolio investment and total amounts recorded in the balance sheet
Fiscal 2018, ended March 2018

Number of stocks
Total amount on balance sheet

Status of Internal Control System Operations
1. Status of compliance efforts(1)	TIS distributes the Group Code of Conduct Handbook to all
directors and employees in the Group. This handbook covers the Group Compliance Declaration and the Group Codeof Conduct. The Company constantly strives to instill a thorough understanding of compliance issues and practices,
implements training programs and awareness activities, andseeks to improve the effectiveness of learning opportunities.
	 For the internal reporting (whistleblower) system, helplines
are mentioned in the Group Code of Conduct Handbook as
well, and steps are taken to promote awareness of thesecontact points and to put them to effective use.
(2)	TIS established the Group Internal Control Committee to
identify compliance-related problems, discuss responses,
help directors and employees see the importance of compliance practices, and look into the content of internal reports
and offer advice on corrective measures. In addition, thecommittee checks on the progress of specific approaches,such as steps to improve the accuracy of working hour
management within the Group, efforts to promote education about issues such as harassment, and efforts to­establish compliance systems at overseas subsidiaries.
2. Status of efforts to ensure appropriate and effective
execution of business operations(1)	In principle, the Board of Directors convenes regularly once amonth and also meets at other times as necessary. Directors
strive to achieve swift and dynamic decision-making.
(2)	An executive officer system was introduced to expedite
management decisions by the Board of Directors andstrengthen the Board’s supervisory function. Directors delegate the execution of business to executive officers, and theexecutive officers who accept these duties provide specificinstructions and orders to and supervision of each associated department manager.

(3)	The Management Committee, which comprises full-time
directors and executive officers, meets twice a month to discuss important issues related to the overall execution ofbusiness by TIS and by the Group as a whole. Note that­full-time corporate auditors may sit in on meetings of theManagement Committee.
(4)	External directors and external corporate auditors, withknowledge and experience essential to appropriate business
operations, are appointed to enhance the supervision andmonitoring capabilities of the Board of Directors and­members of the Audit & Supervisory Board.
3. Status of efforts to control the risk of loss(1)	TIS classifies risks facing the Company and the Group underhazard risk, operational risk, financial risk and strategic risk,
according to Rules for Risk Management, and has systems
in place for risk management and accountability in theevent of a crisis.
(2)	TIS shares risk evaluation indicators and management formats to facilitate identification of risks facing the Company
and the Group and to underpin measures to reduce risks. In
addition, the Group Internal Control Committee formulates
risk management policy for the Group as a whole and verifies the implementation status of measures to control risk.
4. Status of efforts to ensure appropriate operations by
the Group
TIS undertakes management of Group companies using
an approval and reporting system, in accordance withManagement Rules for the Group. For the implementation status of key strategies at Group companies and respective business results, TIS holds quarterly Group business meetings andmonitors progress of strategy implementation.

Fiscal 2019 ended March 201988 stocks

87 stocks¥56,700 million¥44,423 million

Notes: 1.	Increase in number of stocks: 16 stocks were newly acquired focusing on startups with the objective of developing partnerships, etc. tofacilitate open innovation.
2. Decrease in number of stocks: Entire holdings of 17 stocks were sold off in accordance with the policy of reducing cross-shareholdings.

65

66

Platform that Supports Value Creation Process(ESG Section)

1. Policy and viewpoint regarding reduction of strategically held shares
TIS and other companies under the Group umbrella hold sharesin other companies only when management believes this is necessary for such purposes as establishing long-term, stable relationships with customers and promoting business that willcontribute to sustainable growth and higher medium- to longterm corporate value of the Company and the Group.
Each year, the Board of Directors reviews the relevance ofcross-shareholdings. It is corporate policy for any cross-shareholding that the Board of Directors deems to be of diminishedsignificance for cross-shareholding to be sold at the earliest
possible opportunity.
To determine relevance, TIS uses business-related revenue if
the issuing company is a customer of a Group company orannual transaction amount if the issuing company is a strategic
partner to calculate a percentage on a balance sheet basis, andmanagement will consider selling any issue with a ratio that
falls below a benchmark set by the Company.

TIS has not introduced takeover defense measures.

Business Risks

Risks with the potential to significantly impact the operations—management system. Level-specific training is also being

However, investments may not always deliver the planned

10. Intellectual property rights

business results and financial position—of the Group areenhanced to improve our management and technological capa-­outcomes due to factors such as unexpected changes in the

The Group applies for and obtains necessary patents on tech-

described below. Note that forward-looking statements men-bilities. Measures to enhance quality and facilitate adoption ofbusiness environment, and the Group’s business results may

nologies and business models and registers trademarks in Japantioned in these materials are based on information available toproduction innovations are additionally being implemented

be affected as a result.

and overseas to assist its business operations. Although care ismanagement as of June 25, 2019.

throughout the entire Group under the leadership of the Group

always taken to avoid infringing the intellectual property rights

Production Innovation Committee. As systems development is

7. Information securityof third parties, a claim for damages may nevertheless be made

1. Price competition and heightened competition

growing more sophisticated and complex and turnaround times

The Group may gain access to confidential information, includ-

against the Group for infringement of another company’s

Competition in the information services industry is fierce andare shortening, however, customer requirements may change ining personal information held by clients as well as information­intellectual property rights. The Group’s business activities andthe rising number of entrants from other industries may further

the course of a project and necessitate extra work in order toon clients’ systems and technologies, in the course of develop-

results may be affected if this occurs.

increase price competition. The Group seeks to distinguish itself

achieve the planned level of quality or complete the projecting and running systems for them. Efforts are made to properly

from its competitors by adding greater value to the information

during the development period. If this occurs, considerably

manage information in accordance with the TIS INTEC Group

11. Natural disasters

services that it provides and by improving productivity. However,higher than expected costs may be incurred.

Information Security Policy. However, the Group’s business

The Group offers outsourcing and cloud services through data

the Group’s business activities and results may be affected if
price competition is greater than expected.

activities and results may be affected if such information iscenters and other large IT facilities. These facilities are equipped

numerous companies for various reasons, including in order toleaked, altered, or otherwise affected by such means as a com-with various systems and structures to deal with a range ofWe also outsource some systems development work to
gain access to more production capacity, improve production

puter virus or unauthorized access, and a claim for damages is

disasters. However, the Group’s business activities and results

2. Legal systems and complianceefficiency, or make use of other companies’ technologicalmade against the Group or the Group suffers damage to its

may be affected in the event of a longer than anticipatedGroup companies pursue their business activities in line withresources. While we make every effort to work with partners of

reputation as a result.

power outage, major natural disaster, international conflict, act

prevailing laws and regulations in Japan and overseas.

good standing in Japan and overseas, the Group’s businessIndividual companies have established their own complianceactivities and results may be affected if the productivity or qual-

8. Human resources

systems and pursue rigorous legal compliance in accordance

ity of work produced by a partner does not meet expectations

The Group relies heavily on human resources and its businesswith the Group’s basic policy on CSR. However, the Group’s

and project management is impeded with risk of damages from

activities are significantly influenced by its ability to attract,

12. Securities portfolio

business activities and results may be affected if legal violations

clients as a result.

retain, and train people capable of providing specialized, highFor the sustainable growth and higher corporate value on aof terrorism, serious crime, or similar event that interrupts thesmooth running of data center operations.

groupwide basis, the Group holds stocks to build stable andand retain talent by such means as creating a corporate culture,long-term relationships with suppliers and promote sales, and3. Overseas business

The Group delivers 24/7/365 outsourcing and cloud services via

personnel systems, and office environment that allow diversebonds to utilize surplus capital. Every effort is made to ensure

As part of its growth strategy, the Group seeks to expand its

data centers and other large IT facilities. Developing these ser-individuals to maximize their potential, and it places a focus

the security of these investments by checking the financial sta-presence overseas, especially in the ASEAN region. Overseas

vices requires large outlays, ranging from initial investment inon development of human resources by, for example, helping

tus, performance, and credit rating of the issuers and other rel-business can be affected by a variety of factors, including global

equipment to ongoing investment in keeping this equipment

employees to acquire qualifications, systematizing training pro-evant ­factors. However, the Group’s business activities andeconomic trends, exchange rate movements, legal regulations

running. Although we track business projects and recover capi-

grams, and setting targets for the number of days that training

results may be affected in the event of marked fluctuations inpertaining to investment and competition, business practices,

tal invested, business results may be adversely affected if capac-

should be provided. However, the Group’s business activities

the stock market that lead to accounting losses or other suchand labor-management relations. Steps are being taken to

ity utilization is particularly low due to weaker than expected

and results may be affected if recruitment, retainment, and­consequences.

strengthen risk management of overseas business by, among

demand. In addition, although system operations are being

training of talented personnel does not proceed than expected.

other things, having overseas group companies and operations

continuously improved in adherence to our quality manage-

work hand in hand with TIS’s core organizations to keep a close

ment system, the Group’s business activities and results may be

9. Technological innovation

INTEC Inc., a consolidated subsidiary of the Company, is cur-track of circumstances and consult promptly on countermea-

affected if disruptions caused by hardware failures or humanIn the information services industry, providers must respond

rently in litigation with Mitsubishi Shokuhin Co., Ltd., whichsures. However, the Group’s business activities and results may

error prevent delivery of the level of service agreed with clients.

quickly to advances in information technology and to changing

filed a claim for compensation in connection with services(Reference information)market needs that parallel these advances. The Group is con-including systems development provided by INTEC Inc. (Amount

6. Investment

stantly exploring and researching information technologies,of compensation demanded: 12,703 million yen; date the com-

4. System development

The Group invests in businesses (including startups) in Japanproduction, development technologies, and other relevant

plaint was received: December 17, 2018).

The Group provides information system services and contracted

and overseas with the aim of achieving business growth andfields to improve its ability to respond to market needs. Given

development services to other companies. Quality control andacquiring cutting-edge technologies, and it also invests in soft-the pace of innovation in a wide range of fields, however,productivity are being continually improved by thoroughlyware to develop services. Investment decisions are made in line

the Group’s business results may be affected if it responds

reviewing project proposals and processes. These reviews arewith business plans after careful consideration, and progress­inadequately.

conducted by dedicated teams in accordance with our quality

is periodically confirmed once an investment has been made.

be affected if these risks materialize in an unexpected form.

67

68

Platform that Supports Value Creation Process(ESG Section)

value-added services to clients. The Group endeavors to attract

5. System operation

occur or additional laws or regulations are put into force.

Consolidated Financial Summary
TIS Inc., and consolidated subsidiaries
Years ended March 31(Millions of yen)

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Net sales

338,302313,856

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

420,769

Cost of sales

272,944

254,827

261,145

266,159

276,935

283,881294,927

312,153

317,440

321,286

325,985

Gross profit

65,35759,02962,027

61,25860,89962,766

66,09770,53575,95884,362

94,784Gross profit ratio (%)

19.3%

18.8%

19.2%

18.7%

18.0%

18.1%

18.3%

18.4%

19.3%

20.8%

22.5%

Selling, general and administrative expenses

41,56943,032

49,20945,63642,72743,25544,97646,09948,93851,61856,740

Selling, general and administrative expenses ratio (%)

12.3%

13.7%

15.2%

13.9%

12.6%

12.5%

12.5%

12.0%

12.4%

12.7%

13.5%

Operating income

23,787

15,996

12,81815,621

18,171

19,51021,121

24,43627,01932,74338,043Operating income ratio (%)

7.0%

5.1%

4.0%

4.8%

5.4%

5.6%

5.9%

6.4%

6.9%

8.1%

9.0%

Recurring profit

23,604

15,71912,625

15,393

17,44018,971

21,251

24,521

27,092

32,79538,603

Recurring profit ratio (%)

7.0%

5.0%

3.9%

4.7%

5.2%

5.5%

5.9%

6.4%

6.9%

8.1%

9.2%

Net income attributable to owners of the parent company

9,406

7,659

5,985

2,135

5,868

7,913

10,275

12,67816,306

20,62026,034

Net income ratio (%)

2.8%

2.4%

1.9%

0.7%

1.7%

2.3%

2.8%

3.3%

4.1%

5.1%

6.2%

Current assets

140,799

141,967

128,455

142,442

138,219

143,519

140,450

166,666

152,162

162,064

176,231

Fixed assets

154,527

171,109

172,620

167,560

164,083

170,091

205,401

169,828

185,459

204,889

194,426

Total assets

295,327

313,077

301,076

310,003302,302313,610

345,851

336,495

337,622366,954

370,657

Current liabilities

82,051

86,25573,09083,06591,06372,79077,666

91,50878,67681,31091,126

Non-current liabilities

67,05871,74676,87575,97253,07976,316

79,39564,44759,74359,344

45,121

Total liabilities

149,110

158,001

149,965

159,038

144,143

149,107

157,062

155,955

138,420

140,655

136,248

Net assets

146,216

155,075

151,110

150,965

158,159

164,502

188,789

180,539

199,202226,298

234,408

Total liabilities and net assets

295,327

313,077

301,076

310,003302,302313,610

345,851

336,495

337,622366,954

370,657

Total interest-bearing debt

80,532

91,64677,45476,51560,55058,86952,114

46,15835,14432,87629,893

Interest-bearing debt ratio (%)

27.3%

29.3%

25.7%

24.7%

20.0%

18.8%

15.1%

13.7%

10.4%

8.9%

7.3%

Cash flow from operating activities

34,311

31,40027,23623,65821,51525,77022,93825,496

18,95236,38637,558Cash flow from investing activities(20,079)(25,726)(18,957)(15,158)(14,391)(5,334)(17,744)

8,688(23,488)(14,202)(1,213)

Cash flow from financing activities(6,877)

6,139)(18,755)(4,230)(19,883)(5,872)(19,067)(14,979)(18,327)(10,543)(16,773)

Cash and cash equivalents at the end of the term

35,104

46,98736,492

41,11928,43343,142

29,48548,65125,73037,54557,083

Free cash flow

14,232

5,674

8,279

8,500

7,124

20,436

5,194

34,184(4,536)22,18436,345

Capital expenditures

13,13915,67618,325

14,096

12,287

12,544

16,873

14,21015,15916,907

13,334

Depreciation

10,996

11,97812,30812,745

12,92012,454

12,80911,952

11,801

12,572

12,783

946

912

1,062

962

1,002

853

1,097

1,086

1,178

996

1,003

Amortization of goodwill

1,149

1,389

1,901

1,882

1,741

1,166

1,052

339

326

289

289

Goodwill balance at the end of the term

5,053

6,863

5,551

3,672

1,914

830

2,021

1,393

1,332

1,118

503

Number of employees at the end of the term

15,25920,476

20,831

20,347

19,55319,081

19,09019,393

19,843

19,877

19,483

Research and development expenses

919

974

928

649

356

455

620

688

674

712

892

1,117

512

370

450

379

549

499

687

575

840

661

Orders received during the term

156,385

146,621

162,287

174,680

179,352

172,721

199,842

207,345

208,307219,225

238,298

Order backlog at year-end

52,80849,56947,967

57,77862,05558,86971,09569,96164,751

67,71675,549Number of new-graduate recruits
Number of regular recruits
Order Status (Software development)

Corporate Data

Notes: 1. Total interest-bearing debt indicates the total sum of borrowed money and corporate bonds.
2. Free cash flows indicate the total sum of cash flows from operating activities and cash flows from investing activities.
3.	From the first quarter of fiscal 2019, TIS applies “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board ofJapan, Statement No. 28, February 16, 2018). Figures for fiscal 2018 have been retrospectively restated in line with the aforementioned partial amendments.

69

70

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Equity ratio (%)

44.4%

44.2%

47.7%

46.3%

49.8%

49.9%

53.3%

52.5%

57.8%

60.4%

62.0%

Net income to equity capital ratio (ROE) (%)

7.4%

5.7%

4.2%

1.5%

3.9%

5.1%

6.0%

7.0%

8.8%

9.9%

11.5%

Net income ratio (%)

2.8%

2.4%

1.9%

0.7%

1.7%

2.3%

2.8%

3.3%

4.1%

5.1%

6.2%

Total asset turnover ratio

1.16

1.03

1.05

1.07

1.10

1.13

1.09

1.12

1.17

1.15

1.14

Financial leverage

2.28

2.26

2.18

2.13

2.08

2.01

1.93

1.89

1.81

1.69

1.63

Recurring profit to total assets ratio (ROA) (%)

8.0%

5.2%

4.1%

5.0%

5.7%

6.2%

6.4%

7.2%

8.0%

9.3%

10.5%

Net income per share—basic (yen)110.74

89.25

68.19

24.33

66.86

90.16

117.40145.22189.02241.44307.83

Net income per share—diluted (yen)110.72

—

—

24.33

66.83

90.12

—

—

—

—

—

Annual dividends per share (yen)

32.00

32.00

32.00

18.00

21.00

25.00

30.00

33.00

36.00

40.00

70.00

Payout ratio (%)

28.9%

35.9%

46.9%

74.0%

31.4%

27.7%

25.6%

22.7%

19.0%

16.6%

22.8%

Total return ratio (%)

28.9%

35.9%

46.9%

74.0%

31.4%

27.7%

30.4%

35.3%

31.9%

30.5%

39.0%

1,541.17

1,602.77

1,636.56

1,636.72

1,714.88

1,782.23

2,108.19

2,031.07

2,265.76

2,602.07

2,719.79

Stock price at fiscal year-end (yen)

1,134

1,138

870

968

1,243

1,694

2,193

2,664

2,832

4,210

5,240

Highest stock price during the term

2,355

1,995

1,377

978

1,328

1,854

2,257

3,085

2,959

4,410

6,040

Lowest stock price during the term

900

952

655

654

798

1,020

1,524

2,156

2,180

2,742

4,060

Net assets per share (yen)Price earning ratio (PER) (times)

10.2

12.8

12.8

39.8

18.6

18.8

18.7

18.3

15.0

17.4

17.0

Price book-value ratio (PBR) (times)

0.74

0.71

0.53

0.59

0.72

0.95

1.04

1.31

1.25

1.62

1.93

Aggregate market value (millions of yen)

97,946

98,29376,376

84,979109,121

148,714

192,521233,870

248,618

369,592

460,014

Number of outstanding shares at fiscal year-end (thousands)

86,37286,37387,78987,78987,78987,78987,78987,78987,78987,78987,789Number of treasury stock at fiscal year-end (thousands)

1,337

22

15

16

19

4

320

864

1,701

2,613

3,358

Average number of shares during the term (thousands)

84,94385,82187,77287,77387,77187,77487,52287,30586,26885,406

84,574

Total shareholder return (TSR) (%)

62.2%

64.1%

51.5%

57.7%

73.5%

98.9%

127.1%

154.0%

164.9%

240.5%

295.9%

Comparison index: dividend included TOPIX (%)

65.2%

83.8%

76.1%

76.5%

94.7%

112.3%

146.8%

130.9%

150.1%

173.9%

165.2%

Sales by Client Sector
Net sales(Millions of yen)

338,302313,856

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

420,769

Credit card

71,761

57,151

52,61445,084

48,84649,40253,74359,27465,00673,31473,648Banking

26,862

23,48025,81926,702

26,23029,04925,444

27,86728,23327,452

26,583

Insurance

22,08421,08823,44822,931

23,83625,26924,972

26,33925,356

26,262

27,279Other finance

19,857

19,062

19,17823,416

21,33723,481

23,312

20,406

20,857

22,127

19,502Assembly-based manufacturing

44,97740,19646,32340,36338,82440,90445,78549,45542,723

43,77746,028Processing-based manufacturing

32,764

29,63026,13531,074

38,46833,84334,96035,061

36,95338,36638,081

Distribution

26,602

24,98322,87026,26727,39830,00931,77532,702

31,77328,87232,908Services

55,296

61,87470,01771,01273,42572,666

77,53579,60189,607

93,258103,531

Public institutions

29,04628,21728,01530,10728,22530,39329,89136,60337,00235,92334,863

Others

9,055

8,175

8,754

10,456

11,241

11,626

13,604

15,376

15,882

16,292

18,343

Corporate Data

71

72

Board of Directors, Audit & Supervisory Board Members and Executive Officers(As of June 25, 2019)

Standing Audit & Supervisory Board Members, front row from the left,
Katsuhiko Ishii, and Tatsufumi Matsuoka.
External Audit & Supervisory Board Members, back row from the left,
Muneaki Ueda, Taigi Ito, and Sadahei Funakoshi.

Front row from the left, Yasushi Okamoto, Director and Senior Managing Executive Officer, Toru Kuwano, Chairman and President, Masahiko Adachi, Representative
Director and Executive Vice President, and Josaku Yanai, Director and Senior Managing Executive Officer. Back row from the left, Fumio Tsuchiya, External Director,
Akira Shinkai, Director, Takayuki Kitaoka, Director, Koichi Sano, External Director, and Naoko Mizukoshi, External Director

Chairman and President

Toru Kuwano

Senior Managing Executive Officer

Jun Ikimune

Representative Director, Executive Vice President

Masahiko Adachi

Managing Executive Officer

Masahiro Hosokawa

Tetsuya Asano

Director and Senior Managing Executive Officer

Yasushi Okamoto

Takashi Mori

Kiyotaka Nakamura

Director and Senior Managing Executive Officer

Josaku Yanai

Saburo Kato

Tsuyoshi Fukuda

Director

Takayuki Kitaoka(President and Representative Director of INTEC Inc.)

Hiroyuki Kodake

Kei Ando

Director

Akira Shinkai(Director, Executive Vice President of INTEC Inc.)

Shinichi Horiguchi

Naoto Kita

External Director

Koichi Sano*

External Director

Fumio Tsuchiya*

External Director

Naoko Mizukoshi*

Standing Audit & Supervisory Board Member

Masahiro Ueda
Executive Officer

Hidehiko Shimoyama

Teruaki Akutsu

Kyoko Takayanagi

Katsuhiko Ishii

Akira Ogane

Tsuneyoshi Ito

Standing Audit & Supervisory Board Member

Tatsufumi Matsuoka

Satoru Tayasu

Yasushi Tajima

External Audit & Supervisory Board Member

Taigi Ito*

(Certified Public Accountant and President, Ito Office)Thanawat Lertwattanarak

Ikuo Shimizu

External Audit & Supervisory Board Member

Muneaki Ueda*(Chairman, Professional Bank, Inc.)

Hiroto Ito

Isao Otokita

External Audit & Supervisory Board Member

Sadahei Funakoshi*

Manabu Yano

Yoshiyuki Hayashi

Corporate Data

Fumiyasu Mase

(Partner of Leftright Law & IP)* Designated for Independent Director/Auditor as specified by the Tokyo Stock Exchange in Japan.

73

74Corporate Profile

Domestic Business Hubs

TIS INTEC Group (As of July 1, 2019)

Domestic Group Companies[Principal Companies]
TIS Inc.
INTEC Inc.
AGREX INC.
QUALICA INC.

We have an extensive business presence, particularly in Tokyo, Nagoya, Osaka and Toyama.
We have the largest data center network in Japan, with locations in major urban centers.
Overseas Subsidiaries[China]INTEC Information Technology (Wuhan)Co., Ltd.
QUALICA (SHANGHAI) Inc.
TISI (Shanghai) Co., Ltd.

[Myanmar]
PromptNow (Myanmar) Co., Ltd.

INTEC Solution Power Inc.

TISI (Singapore) Pte. Ltd.

Other Areas

INTEC Innovative Technologies USA, Inc.
TIS Ventures, Inc.

[Singapore]QUALICA Asia Pacific Pte. Ltd.

Toyama Center[United States]AJS Inc.

IUK Inc.

Hokuriku Area
Manyo Square

Sapporo Center
Sendai Center
Niigata Center
Shikatsu Centerand others

Osaka AreaGDC Osaka
Osaka Center
Shinsaibashi gDC
Shinsaibashi gDC-EX
Osaka 2nd Center

Nagoya Area
Nagoya Center

Consolidated Subsidiaries

Areas around TokyoTokyo

Non-Consolidated Subsidiaries
Osaka Nagoya

KOUSHI INTEC Inc.
SKY INTEC INC.
SorunPure Inc.
Chuo System Corporation
TIS System Service Inc.
TIS Solution Link Inc.
TIS Tohoku Inc.
TIS Total Service Inc.
TIS Nagano Inc.
TIS West Japan Inc.
TIS Business Consultants Inc.
TIS Beijing Inc.

[Thailand]

NEOAXIS Co., Ltd.
Nexway Co., Ltd.

GDC Gotenyama
Tokyo 1st CenterTokyo 2nd CenterTokyo 3rd Center

TIS head office
Tokyo CenterTokyo 2nd Center
Yokohama Center

Baseline Technology Consultants Co., Ltd.
CODE IT Consulting Co., Ltd.
ECM Consulting Co., Ltd.

International Business Hubs

I-AGREX (Thailand) Co., Ltd.

We are pursuing development mainly in the ASEAN region.
(Shifting from offshore development hub to business hub)

I AM Consulting Co., Ltd.
i Coach Co., Ltd.
iHR Consulting Co., Ltd.
iTS–Tradeship Co., Ltd.

Survey andresearch

PromptNow Co., Ltd.
TISI (Thailand) Co., Ltd.

Beijing
Wuhan

TIS Hokkaido Inc.
Registration Network, Ltd.

Toyama[Vietnam]
AGREX (Vietnam) Co., Ltd.
INTEC Vietnam Co., Ltd.

YangonBangkokNorth
America
Shanghai
Hanoi
Ho Chi Minh

Singapore
Jakarta

HOKKOKU INTEC SERVICE Inc.
MicroMates Corp.

Corporate Data

The TIS INTEC Group has data centers in major cities in Japan, including Tokyo, Nagoya, Osaka and Toyama, as
well as in Asian major cities. The Group, as a whole, has earned a solid reputation for reliability from clients forproviding a cloud environment that boasts the experience and know-how accumulated over more than 40 years
through round-the-clock, 365-day operation of data centers equipped with state-of-the-art facilities and highly
secure features to protect against the risk of natural disasters and power failures.
Key Features of the TIS INTEC Group Data Center Network● High operating quality and latest equipment● Enables clients to achieve business continuity through access to Japan’s largest data center network● Highly reliable cloud environment platform

75

76

Corporate Data

Share Composition by Shareholder(As of June 30, 2019)(As of March 31, 2019; Thousands of Shares)
Company name
FoundedEstablished
Main business

Head officePaid-in capital
Number of shares authorized
Number of shares issued
Number of shareholders
Stock listing
Number of employees (consolidated)

TIS Inc.
April 28, 1971
April 1, 2008
Outsourcing services, software development, and solution services
regarding investments in information technology. Management andbusiness execution of group companies that carry on information andcommunication business
Sumitomo Fudosan Shinjuku Grand Tower,
17-1, Nishi-shinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, Japan
TEL. +81-3-5337-7070
FAX. +81-3-5337-7555¥10 billion
280,000,000 shares
87,789,098 shares (As of March 31, 2019)10,759 (As of March 31, 2019)
Tokyo Stock Exchange, First Section (Securities code: 3626)

Individuals andOthers12,834(14.6%)

Total 87,789(100%)

Overseas
Institutions
34,531(39.3%)

Financial Instruments
Business Operator
2,417(2.8%)

Other Domestic
Institutions
10,361(11.8%)

19,483 (full-time employees) (As of March 31, 2019)

Major Shareholders

Financial
Institutions
27,645(31.5%)

Stock Price Range(As of March 31, 2019)
Name

ICHIGO TRUST PTE. LTD.

TOPIX

Trading volume (thousand shares)

Shareholding ratio
（%）

5,798

6.83

350

35,000300

30,000250

25,000The Master Trust Bank of Japan, Ltd. (Trust Account)

4,560

5.37

Japan Trustee Services Bank, Ltd. (Trust Account)

3,458

4.07

Japan Trustee Services Bank, Ltd. (Trust Account 9)

2,509

2.96

Employees’ Shareholding Association of TIS INTEC Group

2,226

2.62

200

20,000

Nippon Life Insurance Company

2,073

2.44

150

15,000MUFG Bank, Ltd.

1,654

1.95

The Master Trust Bank of Japan, Ltd. (Retirement Benefit Trust
Account, Mitsubishi Electric Corporation Account)100

10,000

1,598

1.88

50

5,000

BNYM SA/NV FOR BNYM FOR BNYM GCM CLIENT AC (M) LBM FE

1,500

1.77

Japan Trustee Services Bank, Ltd. (Trust Account 5)

1,283

1.51

0
(Yen)

Mar.
2009

Mar.
2010

Mar.
2011

Mar.
2012

Mar.
2013

Mar.
2014

Mar.
2015

Mar.
2016

Mar.
2017

Mar.
2018

Mar.
2019

High

2,355

1,995

1,377

978

1,328

1,854

2,257

3,085

2,959

4,410

6,040

Low

900

952

655

654

798

1,020

1,524

2,156

2,180

2,742

4,060

1,134

1,138

870

968

1,243

1,694

2,193

2,664

2,832

4,210

5,240

Stock priceat term-end

0

Corporate Data

Notes: 1. The Company holds 2,908 thousand shares of treasury stock. These are excluded from the table of major shareholders
above. The 2,908 thousand shares of treasury stock do not include 365 thousand shares of Company stock held by TIS
INTEC Group Employees’ Shareholding Association Exclusive Trust, and 84 thousand shares of Company stock held by
Board Incentive Plan (BIP) Trust.
2. Percentage shareholdings are calculated after deducting treasury stock.
3. Regarding 1,598 thousand shares held by The Master Trust Bank of Japan, Ltd. (Retirement Benefit Trust Account,
Mitsubishi Electric Corporation Account), Mitsubishi Electric Corporation reserves exercise of voting rights by Instruction.

77

TIS

Number of shares(Thousands)

Note: The TIS stock price and TOPIX (Tokyo Stock Exchange Price Index) are indexed at 100 based on the closing price of stock on April 30, 2008.

78

TIS INTEC Group Logo
Underlying Concepts
The logo portrays the TIS INTEC Group as a tightly knit
TIS INTEC Group Logoteam, powered forward by the different sets of expertise
Underlying Concepts
that each member brings to the table. It features our
The logo portrays the TIS INTEC Group as a tightly knit
two main corporate colors: “ocean blue” for theteam, powered forward by the different sets of expertisenew challenges that we are constantly tackling, andthat each member brings to the table. It features our“intelligent gray” for the solid technological foundations
two main corporate colors: “ocean blue” for thethat underpin our business.
new challenges that we are constantly tackling, and“intelligent gray” for the solid technological foundations
Brand Message
that underpin our business.
The brand tagline, “Go Beyond,” embodies our constantquest into the beyond in search of new challenges. It
Brand Message
represents our firm commitment as a group to delivering
The brand tagline, “Go Beyond,” embodies our constantsolutions that are always one step ahead, not only solving
quest into the beyond in search of new challenges. It
clients’ problems but anticipating and meeting their own
represents our firm commitment as a group to delivering
customers’ needs too.
solutions that are always one step ahead, not only solving
clients’ problems but anticipating and meeting their own
customers’ needs too.

TIS Inc.
Sumitomo Fudosan Shinjuku Grand Tower,
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, JapanTIS Inc.

ForfurtherFudosan
information,
contact:
Sumitomo
Shinjuku
Grand Tower,
Corporate Management Dept., Corporate Planning SBU.
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, Japan
Tel: +81-3-5337-4569
E-mail:tis_ir@tis.co.jp
Forfurther
information, contact:
http://www.tis.com/
Corporate Management Dept., Corporate Planning SBU.
Tel: +81-3-5337-4569
TIS201909
E-mail: tis_ir@tis.co.jp
http://www.tis.com/

Integrated Report 2019

TIS201909

Year Ended March 31, 2019 (From April 1, 2018, to March 31, 2019)

Securities Code: 3626