Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2020
(April 1, 2019 through September 30, 2019)(Prepared pursuant to Japanese GAAP)All financial information has been prepared in accord with accounting principles generally accepted in Japan.
This is a partial English translation of the original Japanese-language document. All information pertains toconsolidated results unless otherwise noted. Information on the basis of presentation of consolidated financial
statements does not appear in this translation.
November 1, 2019
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:TIS Inc.
The First Section of the Tokyo Stock Exchange3626
https://www.tis.com/
Toru Kuwano, Chairman and President
Takashi Nakamura, Department Manager of Finance & Accounting Dept.,
Corporate Planning SBU.
+81 3-5337-4569

Scheduled dates
Submission of quarterly report:
Commencement of dividend payments:

November 7, 2019
December 10, 2019

Supplementary materials to the quarterly results:
Quarterly results presentation held:

Available
Yes (targeted at institutional investors and analysts)

Figures in millions of yen are rounded down to the nearest million

1. Consolidated Results for the First Half of the Fiscal Year Ending March 31, 2020
(April 1, 2019 – September 30, 2019)(1) Consolidated Financial Results

Net sales
millions of yen

First Half, FY2020
First Half, FY2019%

216,296203,030

6.5
4.2

Percentages indicate year-over-year changes
Net income
attributable toOperating income
Recurring profit
owners of theparent company
millions of yen

19,10015,542

%

22.9
14.4

millions of yen%

20,00915,837

26.3
15.1

millions of yen

13,266
10,692

Note: Comprehensive income: First Half, FY 2020 11,190 million yen (3.3%), First Half., FY 2019 10,832 million yen (-26.7%),

Net income
per share –
basic

Yen

First Half, FY2020
First Half, FY2019

Net income
per share –dilutedyen

157.75126.14(2) Consolidated Financial Position

Total assets

millions of yen

End of First Half, FY2020
End of FY2019

Net assets

millions of yen

368,582
370,657

237,348
234,408

Equity ratio

%

63.0
62.0

For reference: Total equity: End of first Half, FY2020: 232,311 million yen End of FY2019: 229,633 million yen.
*Total equity = Shareholders’ equity plus total accumulated other comprehensive income

2. Cash Dividends for Shareholders of Common Stock
Cash dividends per share
Record date End-Q1 End-Q2 End-Q3 Year-end
or period
FY2019FY2020
FY2020(forecast)

yen

-

yen

20.00
30.00

yen

yen

Total
yen

-

50.00

70.00

-

50.00

80.00

Note: Revisions from the latest release of dividends forecasts: None

%

24.1
24.3

3. Forecast of Consolidated Results for FY2020 (April 1, 2019 – March 31, 2020)
Percentages indicate year-over-year changes
Net income
attributable to Net income per
Operating
Net sales
Recurring profit
owners of theshare – basic
incomeparent company
Full FY2020(year ending Mar. 31,
2020)

millions of yen%

millions of yen

436,000

3.6

42,000%10.4

millions of yen%

millions of yen%

Yen

43,00011.4

28,80010.6

343.13

Note: Revisions from the latest release of earnings forecasts: Yes※ Notes(1) Material reclassifications of subsidiaries during the period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None
Exclusions: None
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: None
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock):
End-First Half, FY2020 (September 30, 2019):
87,789,098 shares
End-FY2019 (March 31, 2019):
87,789,098 shares
2) Treasury stock as of period-end:
End-First Half, FY2020 (September 30, 2019):
4,020,911 shares
End-FY2019 (March 31, 2019):
3,358,468 shares
3) Average number of shares (during the respective three-month period):First Half, FY2020 (ended September 30, 2019):
84,097,644 sharesFirst Half, FY2019 (ended September 30, 2018):
84,762,918 shares
Note: Treasury stock includes the number of the Companys own shares held by TIS INTEC Group
Employees’ Shareholding Association Trust and the Board Incentive Plan (BIP) Trust.

*Quarterly review status
These materials are not subject to the quarterly review procedures to be conducted by certified public
accountants or an audit firm.
Caution on Forward-Looking Statements and Other Important Matters
At a Board of Directors’ Meeting held on May 13, 2019, TIS Inc. (TIS) resolved to acquire its own (treasury)
shares in accordance with Article 156 of the Companies Act of Japan, as applied pursuant to Paragraph 3, Article
165 of said Act.
Accordingly, “Net income per share – basic” in the Forecast of Consolidated Results for FY2020 has beenpresented taking into account the effect of this acquisition of treasury shares.
This report contains forward-looking statements that reflect TIS Inc. (“TIS”)’s plans and expectations based on
information available to TIS at the time of preparation and on certain other information TIS believes to bereasonable. These forward-looking statements are not guarantees of future performance, and actual results,
performance, achievements or financial position may differ materially from those expressed or implied herein
due to a range of factors.
For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, refer to“(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements” in the “1. Results ofOperations” section on page 6 in the Accompanying Materials.

Accompanying Materials – Contents

1. Results of Operations

2(1) Analysis of Consolidated Operating Results

2(2) Analysis of Financial Condition

5(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements

6

2. Consolidated Financial Statements

7(1) Consolidated Balance Sheets

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statements of Income
For the First Half

9

Consolidated Statements of Comprehensive Income
For the First Half

10(3) Notes on the Consolidated Financial Statements

11(Notes on the Going-concern Assumption)

11(Notes on Significant Changes in the Amount of Shareholders’ Equity)11

3. Other Information

11

-1-

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first six months of fiscal 2020 (April 1, 2019 – September 30, 2019), the Japanese economy continued amoderate recovery owing to solid corporate earnings, an improvement in employment conditions, and otherfactors. Regarding the outlook, in addition to the impact of uncertainties surrounding the global economy andfinancial market fluctuations, the impact of the recent consumption tax rate hike on consumer spending mustalso be monitored closely. Nonetheless, the Japanese economy is expected to continue its moderate recovery
trend.
The business environment surrounding the IT services industry, to which the TIS INTEC Group (“theGroup”) belongs, was robust during the period. The Bank of Japan’s Short-term Economic Survey ofEnterprises in Japan (September 2019) showed a 13.1% year-on-year increase in company software investment
plans (all manufacturing & financial institutions), reflecting a strong trend for increased IT investment bycompanies aiming to realize their business strategies through the aggressive application of digital technologies.
In this environment, in order to build the foundation from which the Group will work to realize its Group
Vision 2026, the Group promoted various measures to achieve a speedy structural transformation and raise
corporate value under the current medium-term management plan (2018–2020).
Consolidated net sales for the Group in the first six months of fiscal 2020 increased 6.5% year on year to¥216,296 million. Operating income rose 22.9% to ¥19,100 million, recurring profit expanded 26.3% to¥20,009 million, and net income attributable to owners of the parent company grew 24.1% to ¥13,266 million.
The increase in consolidated net sales was driven by the Group’s ability to accurately grasp the IT investment
needs of its customers in areas where IT investment is growing. The increase in operating income reflects sales
growth and higher gross profit realized through improved profitability (the gross profit margin increased 1.1
percentage points year on year to 22.4%). These positives offset an increase in selling, general andadministrative expenses primarily related to expenditures targeted at strengthening the Group’s efforts toachieve structural reforms. The operating income ratio increased 1.1 percentage points year on year to 8.8%.
The increases in recurring profit and net income attributable to owners of the parent company mainly reflect thegrowth in operating income.
First-half consolidated results include extraordinary income of ¥6,371 million and extraordinary losses
totaling ¥6,044 million. The majority of these extraordinary items were posted in the second quarter. The
extraordinary income, as reported in our September 10 press release “Booking of Gain on Sale of Investment
Securities (Extraordinary Income)", came mainly from a ¥5,455 million extraordinary gain on the sale ofinvestment securities. The extraordinary losses came mainly from the booking of a total of ¥4,112 million in
expenses in connection with the transfer and consolidation of Group offices in the Tokyo area and impairment
loss relating to the reorganization of some existing offices, conducted in accordance with the Group’s plan tocreate next-generation offices.
Segment results for the period are as follows. The sales figures for each segment include inter-segment sales.
1) Service IT BusinessThis segment comprises Group businesses providing knowledge intensive IT services that leverage theGroup’s service and industry know-how to create universalized, template-oriented solutions for its
customers (includes default configuration and ERP).
Segment sales in the first half of fiscal 2020 totaled ¥59,867 million, up 6.6% year on year, while
operating income declined 27.7% to ¥2,457 million. Sales increased mainly owing to the expansion of
settlement-related business. The decline in operating income was largely due to an increase in forwardlooking investment to strengthen the business and to the posting of losses related to strategy revisions
targeted at further expansion of our platform business. As a result, the segment’s operating income ratio
decreased 1.9 percentage points year-on-year to 4.1%.
2) BPOThis segment comprises businesses that leverage the Group’s extensive service and IT know-how to deliver
business process outsourcing (BPO) services, including marketing and sales services and office and contract
operations.
-2-Segment sales in the first half of fiscal 2020 totaled ¥16,221 million, down 11.2% year on year. Operating
income increased 21.9% to ¥993 million. The growth in operating income despite the decline in sales
reflected the large impact from the transfer of all the equity shares of certain consolidated subsidiaries to
non-Group companies in the previous fiscal year in line with management’s policy of concentrating on corebusinesses. As a result, the operating income ratio improved 1.6 percentage points to 6.1%.
3) Financial IT BusinessThis segment comprises businesses that leverage business and operating know-how specific to the financial
sector to raise the value-added of clients’ operations, expand their use of IT, and provide support tooperations using IT.
Segment sales in the first half totaled ¥55,456 million, up 5.2% year on year, and operating income
increased 21.2% to ¥6,925 million. Sales and profits increased due to the growth in IT investment by coreclients, despite the impact of the reactionary drop after the conclusion of large-scale development projects,
and the operating income ratio improved 1.7 percentage points to 12.5%.
The know-how utilized in services provided to specific clients was moved from the Industrial IT Businessto the Financial IT Business. In conjunction with this change, transactions with these clients are recorded
under the Financial IT Business in fiscal 2020, whereas such transactions were recorded under the Industrial
IT Business in the previous fiscal year. This change contributed to the increases in sales and profits in thissegment.
4) Industrial IT BusinessThis segment’s businesses leverage business and operating know-how specific to non-finance industries toraise the value-added of clients’ operations, expand their use of IT, and provide support to operations using
IT.
Segment sales in the first half totaled ¥99,413 million, up 10.6% year on year, and operating income
expanded 57.1% to ¥8,512 million. The increases in sales and profits were driven by expanding IT
investment by clients in a wide range of sectors, including core clients in the energy-related andmanufacturing-related sectors. The operating income ratio rose 2.6 percentage points to 8.6%.
The know-how utilized in services provided to specific clients was moved from the Industrial IT Businessto the Financial IT Business. In conjunction with this change, transactions with these clients are recorded
under the Financial IT Business in fiscal 2020, whereas such transactions were recorded under the Industrial
IT Business in the previous fiscal year. This change had a negative impact on sales and profits in thissegment.
5) Other
The Other segment includes a number of ancillary businesses that provide leasing and other information
systems to clients.
Segment sales in the first half totaled ¥4,345 million, down 5.3% year on year, operating income fell 6.5%
to ¥468 million, and the operating income ratio slipped 0.1 percentage point to 10.8%. These results
primarily reflect the absorption merger of IT Service Force Inc., a wholly owned subsidiary responsible for
the Group’s shared services, and inclusion of that business’s results in the Other segment from the second
quarter of the fiscal 2019.
As noted above, the Group has been implementing a medium-term management plan (2018 – 2020) from thestart of fiscal 2019. The new plan will build the foundation from which the Group will work to realize its Group
Vision 2026. By striving to fulfill the plan’s five basic policies—“Sustainable profit growth,” “Emphasis on
employee self-fulfillment,” “Concentrate on core businesses,” “Shift to prior investment style of businessdevelopment,” and “Expand global business”—we aim to achieve a speedy structural transformation and raise
corporate value.
In fiscal 2020, the Group is energetically implementing various measures in line with the following Groupmanagement policies.
-3-Group Management Policies for Fiscal 2020
1) Robust prior investment to fuel business expansion and structural transformation
2) Promote measures and review business portfolio with view toward higher profitability
3) Promote growth strategy aimed at becoming a top-class IT group in the ASEAN region4) Boost motivation and take human resource management to a higher level5) Realize enhanced management practices and higher efficiency
The major initiatives take in the first half of fiscal 2020 are presented below.
1) Robust prior investment to fuel business expansion and structural transformation
The Group aims to shift towards business that anticipates the needs of customers from the perspective of social
issues and will carry out investment with an emphasis on the Group’s growth and areas of strength, targeting the
growth of service-style business, which is positioned as a growth engine.
As a part of this, we are moving forward with preparations to launch CreditCube+, a next-generation card
processing service that fully leverages the technologies and expertise cultivated through our CreditCube creditcard core operations system. The new system will enable customers to improve competitiveness and reduce
costs by using a system that optimally balances the merits of shared data with customers’ proprietary data. Also,in response to the progress of new technologies such as FinTech, IoT, and AI, as well as industry trends, we areproactively embracing open innovation and are accelerating partnerships with start-up companies. This includes
our investment in investment in U.S. venture capital fund Sozo Ventures II-S.
As part of our preparations for future business development, we added “Electronic settlement agency andbusiness relating to transfer of funds” as a new purpose in Article 2 of our the Articles of Incorporation and arealso participating in demonstration tests for potential new businesses, such as a MaaS (Mobility as a Service)
demonstration test to promote tourism in the Yaeyama Islands of Okinawa Prefecture by creating aninterconnected transportation network comprising buses, taxis, and inter-island ships. Japan’s Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) has selected the Yaeyama Islands MaaS demonstration test as a
“Pioneering Model Project” among “Projects for the Promotion of New Mobility Services” being carried out topave the way for nationwide application.
2) Promote measures and review business portfolio with view toward higher profitability
Targeting further strengthening of our business competitiveness, we are continuing our efforts to eliminate
unprofitable projects and promote reforms aimed at further improving the profitability of enhancement areas.
These efforts have steadily contributed to improvement in the Group’s gross profit margin, which increased 1.1
percentage points year on year in the first half to 22.4% despite the impact of losses booked in relation torevision of strategies aimed at further reinforcing the Group’s platform business.
In the Cloud & Security field, we entered into a business alliance with LAC Co., Ltd., which possesses
industry-leading insight in the security field. Together, our companies plan to introduce a next-generation-type
cloud and security service platform that will quickly realize “security by design.” In addition, during the period
under review, we revised our strategy with the aim of further strengthening the key components of the platformbusiness, including cloud, security, data center, and network-related business. To accelerate the development ofbusiness in such growth areas as “Cloud & Security,” we established a business strategy promotion unit with themission of handling investment strategy, marketing strategy, and human resources strategy within the Company.
We are also consolidating our brands under Group company EINS WAVE, which brings together our
cumulative knowhow to provide the full portfolio of platform services offered by the Group.
3) Promote growth strategy aimed at becoming a top-class IT group in the ASEAN region
As part of our efforts to acquire state-of-the-art technologies and deploy these in global markets, we entered intoa capital and business tie-up with Singapore-based SQREEM Technologies PTE. LTD. SQREEM is one of theworld’s largest behavioral pattern data aggregators. It is enjoying rapid growth in the fields of digital marketingand data analytics using proprietary AI technologies based on massive data collection. Leveraging SQREEM’s
advanced AI technologies and the Group’s business insight cultivated in various industries, including financial-4-

services and manufacturing, the Group aims to become a leader in AI-based data analytics in Japan and theASEAN region.
4) Boost motivation and take human resource management to higher level
TIS aims to be a company where employees are highly motivated. To achieve the growth of each member ofour diverse group of employees as well as the sustainable growth of the Company, we are implementing
various “workstyle reforms” and “health management” measures.
As a part of this effort, in April 2019, we launched several new human resources-related programs, including“teleworkers” (employees who mainly work remotely on a full-day basis), as well as a “work-interval system”
and a “smart-work allowance.” With these and other measures, we are creating an environment that considers
employees’ health and makes diverse working styles possible. The Company is constantly working to improveconditions for its employees by, for example, reducing overtime, increasing the annual vacation usage rate, andintroducing various work-related systems. We have obtained “Kurumin” certification from the Ministry of
Health, Labor and Welfare for four consecutive years and recently were awarded the “Platinum Kurumin”
certification granted to “Kurumin” certified companies deemed to be making the greatest efforts to introduce
and promote the use of systems that support and encourage employees balancing child-rearing and work.
5) Realize enhanced management practices and higher efficiency
In January 2019, we announced a new Group basic philosophy, “OUR PHILOSOPHY,” which provides thecommon values that will serve as the basis for all activities of the entire Group. The Group is energeticallyholding training sessions on “OUR PHILOSOPHY” to ensure widespread awareness among all officers andemployees in the Group as a basis for carrying out our corporate activities with confidence and conviction underunified, group-wide management. Also, to realize more sophisticated Group management, we are continuing the“G20” project to enhance headquarters functions. As part of this, a project to build a new core Group system isprogressing on schedule with an expected launch in fiscal 2021. We are also making steady progress with theestablishment of a future framework for promoting Group-wide shared services along with the designation oftarget operations and the setting of deployment schedules.
As part of our efforts to strengthen the management foundation that supports the enhancement of corporate
value, we are also bolstering our strategic branding activities with the aim of expanding business opportunities,
improving our personnel recruitment capabilities, and raising employees’ pride in their work. Based on thispolicy, beginning in the third quarter and continuing into fiscal 2021, we will be making concentrated
investments based on a communication plan designed to enhance brand awareness as rapidly as possible.
In addition, to promote the Group’s work-style reforms and foster greater communication within the Group,
we decided to move and consolidate Group offices in the Tokyo area to a new base in Toyosu to be opened infiscal 2021. This move will create a double-core office structure in the Tokyo area, with the business functionsof TIS Inc. and Intec Inc. brought together in the new Toyosu office and both companies’ head-office functions
housed in the Nishi-Shinjuku office. This consolidation of Group offices in the Tokyo area will strengthen thesense of unity with which we conduct our business and enable us to accelerate the structural transformation thatis a goal of our medium-term plan as well as strengthen corporate governance.
In addition to the above initiatives and in line with the Group's policy of flexibly managing its capital positon to
enable flexible responses to its operating environment while continuing to enhance shareholder returns and capitalefficiency, we carried out a share buyback from May to July 2019, resulting in the acquisition of 749,800 shares at
a total acquisition cost of ¥4,139 million.

(2) Analysis of Financial Condition(Assets)
Consolidated total assets as of the end of the second quarter on September 30, 2019, came to ¥368,582 million,a decrease of ¥2,074 million from ¥370,657 million at the end of the previous fiscal year on March 31, 2019.
Current assets totaled ¥171,996 million, down from ¥176,231 million, primarily owing to a ¥4,782 million
decrease in notes and accounts receivable.
Fixed assets totaled ¥196,585 million, up from ¥194,426 million, owing mostly to a ¥3,126 million increase-5-

in software and software in progress.
(Liabilities)
As of the end of the second quarter on September 30, 2019, total liabilities amounted to ¥131,233 million, a¥5,014 million decrease from ¥136,248 million at the end of the previous fiscal year.
Current liabilities totaled ¥84,533 million, down from ¥91,126 million, mainly reflecting a ¥2,380 million
decrease in notes and accounts payable.
Non-current liabilities amounted to ¥46,699 million, up from ¥45,121 million, primarily owing to a ¥1,641
million increase in provision for office restructuring cost.
(Net assets)
Net assets as of the end of the second quarter totaled ¥237,348 million, up ¥2,940 from ¥234,408 million at theend of the previous fiscal year, primarily reflecting a ¥9,022 million increase in retained earnings, mostly fromthe increase in net income attributable to owners of the parent company.

(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements
In light of recent business trends and the fact that first-half results substantially exceeded forecasts, the Group has
revised the fiscal 2020 full-year consolidated earnings forecast announced on May 13, 2019 as follows. While theeconomic outlook is uncertain, the Group will strive to achieve its revised full-year targets by steadily implementing
various measures, including expanding business by accurately grasping the needs of its customers in areas where IT
investment is growing.
Revised consolidated earnings forecast for fiscal 2020

Previous forecast(A)
Revised forecast(B)
Change (B-A)% change(Reference)
FY2019 results

Net income
attributable toowners of theparent company

Net income
per share – basic

Net sales

Operatingincomemillions of yen

millions of yen

millions of yen

425,000

40,00040,50027,100323.02436,000

42,00043,00028,800343.13

11,000

2,000

2,500

1,700

－

2.6

5.0

6.2

6.3

－

420,769

38,04338,603

26,034307.83

Recurring profit

millions of yenyen

Note: The above forecasts reflect the Company’s plans and expectations based on information available to theCompany at the time of preparation and on certain other information the Company deems reasonable.
Actual results may differ significantly due to various factors.
From fiscal 2019, the Company has adopted a total return ratio* benchmark of 40% as its basic policy forshareholder returns. Considering the previously mentioned share buyback and the above revised consolidated
earnings forecast, the Company estimates the total return will come to 37.7% in fiscal 2020.
* Total return ratio: The ratio of the combined value of dividend payments and share buybacks versus net income
attributable to owners of the parent company-6-2. Consolidated Financial Statements(1) Consolidated Balance Sheets
Items

As of March 31, 2019

As of Sep. 30, 201957,591
88,121
4,122
100
5,043
4,064
234
17,331(377)
176,231

58,365
83,339
4,147
100
4,221
5,474
204
16,479(335)
171,996

38,001
8,124
18,3992,523
6,073
73,12335,615
8,264
17,342
2,060
6,244
69,52812,542
6,635
371
965
20,514

13,553
8,750
307
1,071
23,68367,7195,134
10,01318,017(96)
100,788
194,426
370,657

64,8905,231
12,701
20,647(97)
103,373
196,585
368,582

millions of yen

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Lease receivables and lease investment assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Leased assets, net
Other property and equipment, net
Total property and equipment
Intangible assets
Software
Software in progress
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-7-

millions of yen

ItemsLiabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Income taxes payable
Accrued bonuses to directors and employees
Provision for loss on order received
Provision for loss on liquidation of subsidiaries andassociates
Provision for office restructuring cost
Other allowances
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities from revaluation of land
Accrued retirement benefits to directors
Provision for office restructuring cost
Other allowances
Net defined benefit liability
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-8-

As of March 31, 2019

As of Sep. 30, 201923,3386,285
9,299
13,935581

20,957
5,729
8,847
15,024
516

2,248

432

‐
219
35,21891,126344
176
32,50384,533

18,498
3,238
58
272
56
‐
406
12,497
4,103
5,989
45,121
136,248

17,335
2,872
25
272
34
1,641
197
12,456
4,151
7,712
46,699131,233

10,001
82,945
130,703(11,816)
211,834

10,001
82,945
139,726(15,604)
217,068

22,701(2,672)(257)(1,972)
17,7994,775
234,408
370,657

19,790(2,672)(187)(1,688)15,242
5,037
237,348368,582

millions of yen

millions of yen

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Half, FY2019First Half, FY2020
Items(Apr. 1 – Sep. 30, 2018) (Apr. 1 – Sep. 30, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expense
Interest expenses
Financing expenses
Equity in losses of affiliated companies
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sale of investment securities
Gain on sales of fixed assets
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Data center transfer cost
Provision for office restructuring cost
Other
Total extraordinary loss
Income before income taxes
Income taxes: current
Income taxes: deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent company-9-

millions of yen

203,030
159,867
43,162
27,61915,542

millions of yen

216,296
167,800
48,49629,395
19,100

87
691
375
1,155

128
671
591
1,391

169
226
175
289
860
15,837

123
123
56
177
481
20,00913,145913
299
14,357

6,220
2
148
6,371

423
8,800
‐
3,793
13,017
17,177
5,971
171
6,142
11,034342
10,692

3,594
‐
1,985
463
6,044
20,3368,471(1,877)
6,594
13,742476
13,266

Consolidated Statements of Comprehensive Income

First Half, FY2019First Half, FY2020(Apr. 1 – Sep. 30, 2018) (Apr. 1 – Sep. 30, 2019)

Items
Net income
Other comprehensive income
Net unrealized gains on other securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of equitymethod affiliates
Total other comprehensive income
Comprehensive income(Composition)
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to noncontrolling interests-10-

millions of yen

millions of yen

5
(296)
(342)
595

(2,897)
‐
(38)
285

(165)

97

(202)
10,832(2,551)
11,19010,527

10,709305

480

11,034

13,742

(3) Notes on the Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable
3. Other Information

INTEC Inc., a consolidated subsidiary of the Company, is currently in litigation with Mitsubishi Shokuhin Co.,
Ltd., which filed a claim for compensation in connection with services including systems development
provided by INTEC Inc. (Amount of compensation demanded: 12,703 million yen; date the complaint wasreceived: December 17, 2018).

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