March 29, 2023
(Translated from the Japanese original)
Company Name: TIS Inc.
Yasushi Okamoto, President andRepresentative:
Representative Director
Stock Listing:Prime Market, Tokyo Stock Exchange
Stock Code:3626
Takahiro Kimura, Department Manager ofContact:
Corporate Management Dept.
Phone:+81-50-1702-4115 (in Japan, 050-1702-4115)

Notice regarding Acquisition of Fixed Assets (Real Estate Trust Beneficiary Rights)
The Board of Directors at TIS Inc. (hereafter, “the Company” and “TIS”) resolved on this date that theCompany will purchase fixed assets (real estate beneficiary rights). Details are provided below.
Details
1. Reason for purchase
TIS has expanded its presence in the market over the years by positioning system operation services
along with system development services as core businesses to respond to the system lifecycle needsof clients as a system integrator with one-stop solutions. In addition, in recent years, the Company has
directed concerted effort into enriching its own brand of cloud services as part of the businessrestructuring process geared to changes in the business environment. Large-scale facilities are vital tothis effort, forming the foundation that supports these services, and TIS’ basic policy, assuming theperspective of long-term, stable continuity of business activities, has been to own such facilities.
Back in the latter half of the 2000s, when management was considering the opening of a new
facility with business expansion in mind, a decision was made to lease the facility for which realestate beneficiary rights will now be acquired, given such factors as social circumstances, the businessenvironment and the Company’s own financial status at that time, and services were launched with anemphasis on system operation. Later, changes in the business environment, including a rapid shift
toward use of the cloud in corporate pursuits, management drastically reimagined the kind of system
operation services that TIS should be known for and redefined associated strategies. Even with thisrethink, management did not change its stance on the importance of owning facilities and wasconstantly searching for an opportunity to switch from leasing this facility to owing it, in line with theaforementioned policy.
Against this backdrop, TIS was recently involved in negotiations with the facility owner, andafter taking a comprehensive view of prevailing factors, including economic rationale in grabbing theopportunity to enjoy the benefits of ownership and switching from leasing to owning, as well as theCompany’s current financial status, which would allow for a large-scale investment, management
concluded that the acquisition of real estate trust beneficiary rights related to this facility would
contribute to enhanced corporate value of the TIS INTEC Group over the medium to long term.
2. Details on assets (real estate trust beneficiary rights) to be acquired(1) Name of building
Gotenyama SH Building(2) Location
5-17, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo(3) LandSite area
6,858.68 m2
1

Zoning

(4)

(5)
(6)

Building(7)

Type of use
Portion of land
held
Acquisition price

(8)
(9)

Acquisition capital
Settlement method

3. Outline of counterparty(1) Name(2) Address(3) Name and title ofrepresentative(4)
Business activities

(5)
(6)
(7)
(8)
(9)

(10)

Total investment
Date ofestablishment
Net assets
Total assets
Major shareholders
and shareholding
ratiosRelationships withTIS

Building
coverage ratio
Floor area ratio
Type ofownership
Total floor area
Structure/numberof floors

Commercial, semi-industrial, Class 1 low-rise
exclusive residential
Respectively, 80%, 60% and 60%
Respectively, 500%, 300% and 150%
Ownership
19,812.85 m2
Steel-frame, steel reinforced concrete
construction / one basement level, seven floors
above groundFebruary 2011

Construction
completedType ofOwnershipownership
Business-use facility

100% (after final payment completed)¥72 billion
Note: Aggregate of ¥70 billion acquisition price for real estate trust
beneficiary rights and miscellaneous costs (estimate) related toacquisition. At time of acquisition, appraisal value will be obtained
and appropriateness of acquisition price will be verified.
Planning to use cash on hand and loans from financial institutions
Will gradually acquire quasi-co-ownership interest, with total
amount broken in single payments of ¥7 billion a total of 10 times.
First payment will be on October 31, 2023, with nine subsequent
payments made every six months at the end of each sixth month.
Payment process will be complete with final payment on April 30,2028.

Sekisui House Reit, Inc.
15-1, Akasaka 4-chome, Minato-ku, Tokyo
Atsuhiro Kida, Executive Director
Manages assets principally as an investment in real estate as wellas asset-compatible securities where real estate is the primary
investment¥161,283 million （As of October 31, 2022）
September 8, 2014
¥294,484 million (As of October 31, 2022)¥570,999 million (As of October 31, 2022)
Custody Bank of Japan, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (TrustAccount)Sekisui House, Ltd.
The Nomura Trust and Banking Co., Ltd. (TrustAccount)(As of October 31, 2022)Capital
Not applicable.
relationship25.80%
15.73%
4.58%
4.34%

2

Personnel
relationship

Not applicable.

Businessrelationship

TIS leased Gotenyama SH Building from Sekisui
House Reit for business purposes to provide
system operation services and its own brand of
cloud services

Related-party
Not applicable.
status

4. Acquisition schedule(1) Board of Directors’decision(2) Date of sales
contract signing(3) Scheduled date oftrust beneficiaryrights acquisition

March 29, 2023
March 29, 2023
Will gradually acquire quasi-co-ownership interest, with the total
amount broken in single payments of ¥7 billion a total of 10 times.
First payment will be on October 31, 2023, with nine subsequent
payments made every six months at the end of each sixth month.
Payment process will be complete with final payment on April 30,2028.

5. Outlook
The impact of this acquisition on the Company’s consolidated results for fiscal 2023, ending March 31,2023, is likely to be minimal. However, paralleling the switch from the current leasing format toownership, management expects a cost reduction benefit related to this facility, corresponding to thepercentage of real estate trust beneficiary rights acquired, beginning from the second half of fiscal 2024.
Going forward, if any issue occurs where disclosure is required, management will quickly providedetails.
(Reference) Fiscal 2023 forecast (announced February 3, 2023) and fiscal 2022 actual results
Net income
attributable toNet sales
Operating income Recurring profit
owners of theparent company
MillionMillionMillionMillionCurrent fiscal year, ending
March 31, 2023
(consolidated, forecast)Previous fiscal year, ended
March 31, 2022
(consolidated, actual)¥505,000¥59,000¥60,500¥52,000¥482,547¥54,739¥55,710¥39,462

END

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