May 12, 2021
(Translated from the Japanese original)
Company Name: TIS Inc.
Yasushi Okamoto, President andRepresentative:
Representative Director
Stock Listing:First Section of the Tokyo Stock Exchange
Stock Code:3626
Takahiro Kimura, Department Manager ofContact:
Corporate Management Dept.
Phone:+81-3-5337-4569 (in Japan, 03-5337-4569)
Notice regarding New Medium-Term Management Plan (2021–2023)
TIS Inc. (hereafter, “TIS” and “the Company”) embarked on Medium-Term Business Plan (20212023), with fiscal 2022, ending March 31, 2022, as the first of this three-year blueprint forward.
Details are provided below.
Details
1. Positioning of Medium-Term Management Plan (2021–2023)
Medium-Term Management Plan (2021–2023) is the second step toward realizing Group Vision
2026, which looks ahead to 2026 and the image of the TIS INTEC Group under the concept Create
Exciting Future. This overall picture will guide TIS, and by extension the Group, in achieving
business innovation utilizing advanced technology and know-how and fueling the creation of newmarkets. TIS aims to speed up structural transformation by improving value provided by DX
through enhanced capabilities on the front line, which is closest to clients, while staying on theGroup Vision trajectory. In addition, the Company will actively invest in business pursuits that
contribute solutions to social issues with long-term growth in mind.
2. Outline of Medium-Term Management Plan (2021–2023)(1) Slogan“Be a Digital Mover 2023”(2) Basic Policy
By leveraging frontline strengths based on IT configuration capabilities developed with society
and customers, TIS will help solve social issues using digital technology and realize Group Value
2026.
(i) Virtuous cycle of value created jointly by society and employees(ii) Improve value provided by DX(iii) Expand investment to generate new strengths(iv) Deepen and extend global operations(v) Diversification of human resources, sharper skills

1(3) Key Performance Indicators(i) Net sales¥500.0 billion(ii) Operating income (Operating margin)¥58.0 billion (11.6%)(iii) EPS growth ratio (CAGR)
More than 10%(iv) Strategic domain ratio (Note 1)
60%(v) Sales from services that provide¥50.0 billion
solutions to social issues (Note 2)
Notes: 1. Four business domains described in Group Vision 2026 that will form the coreof the TIS INTEC Group by that year.
2. Sales from service-style business activities providing direct solutions to social
issues of concern to TIS INTEC Group. Manage growth of this business as partof strategic domain operations.
(4) Numerical Targets
Consolidated
Fiscal 2024 ending
March 31, 2024
(estimate)(For reference)
Fiscal 2021, ended
March 31, 2021
(actual)Net Sales

Operating Income(Operating Margin)

Net Income
Attributable to
Owners of the
Parent Company¥500.0 billion¥58.0 billion(11.6%)¥39.0 billion¥448.3 billion¥45.7 billion(10.2%)¥27.6 billion(5) Basic Policy on Return to Shareholders
Balancing efforts to leverage growth investment, maintain financial health and strengthen return toshareholders, TIS will lay the groundwork for an increase in the total return ratio yardstick to 45%,
from 40%, and constantly enrich dividends per share. In so doing, the Company will raise
shareholder engagement.
Attachments:
Briefing Materials for Medium-Term Management Plan (2021–2023)
END

2

TIS INTEC Group
Medium-Term Management Plan (2021–2023)
May 12, 2021

© 2021 TIS Inc.

1

Looking Back on Previous Medium-Term Management Plan

2

Basic Policies in New Medium-Term Management Plan

3

Priority Strategies and Measures4

Numerical Targets- All statements described in these materials are based on information available to management regarding the TIS INTEC Group—that is, TIS and thesubsidiaries under its umbrella—as of the presentation date and certain assumptions deemed reasonable at this time. No intent is implied of promise by
the Company to achieve such forward-looking statements. Indeed, various factors may cause future results to be substantially different from theassumptions presented in these materials.

© 2021 TIS Inc.

2

Looking Back on Previous Medium-Term Management Plan
(Quantitative)⚫Posted profit growth and hit operating income and strategic domain ratio targets—two key performanceindicators—by leveraging structural transformation and improving productivity.
Medium-Term
Management Plan
Estimate

Fiscal 2018

GrowthRate

Fiscal 2021

Net Sales¥405.6 billion¥430.0 billion¥448.3 billion

10.5%

Operating Income¥32.7 billion¥43.0 billion¥45.7 billion

39.7%

Operating Margin

8.1%

10.0%

10.2%

+2.1pt

ROE

9.9%

12.0%

10.8%

+0.9ptStrategic Domain
Ratio

35%

50%

51%

+16pt

Strategic Partnership
Business*1

Strategic Partnership
Business

IT Offering Service
Business Function Service
Frontier Market Creation Business

IT Offering Service
Business Function Service
Frontier Market Creation Business*1 Hit 12.5% in fiscal 2020, exceeding estimate© 2021 TIS Inc.

3

Looking Back on Previous Medium-Term Management Plan
(Quantitative)⚫Service IT maintained upfront investment emphasis. Net sales grew but profitability was an issue.
⚫BPO, Financial IT and Industrial IT raised added value and productivity and were rewarded with higher
profitability.
Despite business expansion, especially in payment
service domain, sustained upfront investmentemphasis put pressure on profitability

Service IT
Business

Net Sales
136.9[Billions of yen]

120.0

100.6

8.7

8.1

Med-term

2018年 2021年 中計目標
management
3月期

3月期

Financial IT
Businessplan

Net Sales
110.7

3月期

100.0

Med-term

3月期© 2021 TIS Inc.

plan

plan

15.3

3月期

3月期

Industrial IT
Business

plan

3.0

8.8%

7.0%

176.4

plan

2021年 management
中計目標

3月期

3月期

plan

194.4

[Billions of yen]

185.0

18.7
11.5
6.5%

Fiscal 2018 Fiscal 2021

Med-termmanagement
2018年 2021年 中計目標

3月期

Med-term

2018年

Operating Income

12.0

Med-term

Fiscal 2018 Fiscal 2021

Maintained growth against backdrop of expanding IT
investment among core clients and across wideindustry spectrum, particularly energy

Net Sales

2018年 2021年 management
中計目標

3月期

Med-term

2021年 management
中計目標[Billions of yen]

13.8% 12.0%

Fiscal 2018 Fiscal 2021

3月期

3.1
1.6

2018年

[Billions of yen]

10.6%

35.5

Fiscal 2018 Fiscal 2021

Operating Income

2018年 2021年 management
中計目標

3月期

Med-term

2018年 2021年 中計目標
management

11.3
Fiscal 2018 Fiscal 2021

43.0
38.2

4.3%

Despite reactionary drop in large development projects,
maintained growth against backdrop of strong IT
demand, especially from credit card companies[Billions of yen]

106.6

13.0

[Billions of yen]

6.3%

Fiscal 2018 Fiscal 2021

3月期

Operating Income[Billions of yen]

10.8%

8.1%
Fiscal 2018 Fiscal 2021

Net Sales

Operating Income[Billions of yen]

Huge improvement in profitability, mainly due to
optimized portfolio and higher productivity

BPO

3月期

plan

9.6%

Fiscal 2018 Fiscal 2021

14.5
7.8%
Med-termmanagement
2018年 2021年 中計目標

3月期

3月期

plan

4

Looking Back on Previous Medium-Term Management Plan
(Qualitative)⚫Moved forward on strategic domain restructuring and posted profit growth, but only halfway toward
monetizing Service IT and achieving qualitative structural transformation through new pillars of business.
Overview of Measures

Review and Acknowledgment of Issues

Sustainableprofitgrowth• Created structure with sustainability emphasis, raised ESG status• Balance profit growth and return to shareholders(selection to FTSE)• Shape sustainability management into mechanism for• Firmly established activities to underpin Group productivity andrealizing solutions to social issues through business activities
innovation and eliminate losses• Pursue more sustainable profit growth by enhancing• Increased management efficiency through reduction in crossportfolio management
shareholdings, improved ROE and reached return-to-shareholders target

Emphasison employee
selffulfillment• Established TIS INTEC Group basic philosophy OUR PHILOSOPHY, took
• Pursue unified Group management based on TIS INTEC
robust approach to instill concept
Group basic philosophy• Drafted personnel manifesto, promote measures to motivate employees • Realize new workstyles and improve brand image• Improved recognition through aggressive brand investment, had• Enhance efforts to improve employee engagement throughpositive impact on employee engagement as wellinvestment in education and measures aimed at enhancing
the skills of human resources

Concentrateon corebusinesses• Strengthened initiatives to promote strategic domain restructuring• Boost profitability through further improvement inproductivity• Improved profitability through enhancement and reform, wider offshore
activities and order profitability management• Urgent need to develop another growth engine besides
payment services• Pursued selective R&D investment to underpin structural transformationof businesses• Against keen interest in DX from clients, must strive toreinforce ability to provide DX value• Accelerated venture investment through CVC program

Shift to priorinvestment styleof businessdevelopment• Heightened approach to upfront investment, particularly into payment
service domain and global operations• Actively promoted investment in human resources and measures toimprove brand value• Introduced management indicators, such as ROIC, to strengthen
investment discipline

Expandglobalbusiness• Accelerated investment based on growth strategies to build a top-class
IT corporate group in ASEAN region• Turned MFEC, a leading provider of IT solutions to enterprises inThailand, into consolidated subsidiary© 2021 TIS Inc.

• Drive profit from Service IT higher by strengthening
business, hinging on payment services• Boost investment and service management to higher level• Manifest successes faster, such as creation and expansion of
IOS and FCB operations, through joint efforts withinvestment targets• Reinforce governance/management of expanding global
business5

1

Looking Back on Previous Medium-Term Management Plan

2

Basic Policies in New Medium-Term Management Plan

3

Priority Strategies and Measures4

Numerical Targets© 2021 TIS Inc.

6

Position of Medium-Term Management Plan (2021–2023)⚫The three years of the medium-term management plan will be a time to enhance our value chain byimproving the value provided in DX services, and by promoting further structural transformation, we willgrow the Group and be better positioned to address social issues.
Landmark changes to business landscape• With heightened importance of DX in new normal world, presence of consulting firms and other providers of DX services isincreasing, fueling intense competition.
• Global platformers and enterprise SaaS companies are particularly active, as well, prompting possibility that market for contractdevelopment will shrink in long term.
• ESG investment rapidly expanding, and importance of sustainability management based on long-term strategies is gaining ground

2018–20202021–2023

Transformation to 2020

Be a Digital Mover 2023

Lay foundation forstructural transformation

Accelerate structuraltransformation by improving
value provided in DX services(Establish and extend
strategic domains)

Robust investment into services
that help solve social issues to fuellong-term growth2024–2026
Medium-term
management plan
to realize
Group Vision 2026

Maintaining our direction toward realization of Group Vision 2026,

we will speed up structural transformation by reinforcing frontline capability of customer contact.
© 2021 TIS Inc.

7

Target Status of TIS INTEC Group⚫We see to assume a position the underpins social reform and business reform for clients by improving
value provided through a wider embrace of DX in all businesses, expanding the scope of strategic
domains and focusing investment on services that provide solutions to social issues.

TIS
INTEC
Group

TIS
INTEC
Group

Systemintegrator

Beyond concepts andsystem-building,achieve solutions tofour social issues

Target Status of TIS INTEC Group(Shape eco-systems and realize solutions to social issues)
Imagination to transformbusinesses in specificdomains

Implementation capability
that goes beyond concepts
and system-building

Servicer
Consultant

Global businessdeployment capability

Ability to build systems

Realizationof value creation

Imagination

Approaches to reach target status
Capabilities to enhance
Ability to realize value creation
Building ability

Offering ability

Imagination(DX consultation)

Technology© 2021 TIS Inc.

Operation skills

Strategic domains

×

SPB

IOS

BFS

FCB

Social issues

×

Financialinclusion

Urban
concentration/
rural decline

Low-carbon/
Health concerns
de-carbonization

8

TIS INTEC Group’s Approach to Sustainability Management⚫We will create social and economic value through management hinging on OUR PHILOSOPHY,
contribute to a sustainable society and realize sustainable improvement in corporate value.
TIS INTEC Group Management Philosophy: OUR PHILOSOPHY
Mission: To brightly color the future as a mover

Basic Policy on Corporate Sustainability
Materiality (Priority issues)

1. Create a society in which diverse human resources
are engaged and thrive

2. Create a comfortable society through innovation andjoint activities

3. Create a safe society through high-quality services

4. Enhance corporate governance and earn the trust of society

Enhanced management geared to social demands

Address social issues through business activities
Social issues where TIS INTEC Group can contribute• Financial inclusion• Urban concentration/rural decline• Low-carbon/ decarbonized society• Health concerns

Contribute to sustainable society© 2021 TIS Inc.

Improve value
exchange withstakeholders

・Contribute to recycling society
・ Achieve sustainable improvement in stakeholder
engagement
・ Constantly pursue governance that elicits higher
level of trust from society

Sustainable improvement in corporate value
9

Main Points of Medium-Term Management Plan (2021–2023)

Be a Digital Mover 2023
Basic Policy
Financial inclusion

Digital technology

Blockchain

AI
Health concerns

Key Performance Indicators

5G

Data analytics

Robotics
XR
Quantum
computerUrban concentration,
rural decline

Low-carbon/
decarbonized society

Net Sales¥500 billion
Operating income/Operating margin¥58 billion/11.6%
EPS growth CAGR

Virtuous cycle of value created jointly by society and employees

Solving social issues through joint creation with stakeholders

Exceeding 10%
Strategic domain ratio

Improve
value
providedby DX

Imaginationthattransforms
society

Expandinvestment
to generate
strengths

Powerthat realizes
ideas

GlobalDeepen andbusiness
extend global deployment
operations
capability

Diversification of human resources, sharper skills

Diverse employees active as professionals
By promoting enhanced frontline strengths based on IT configuration capabilities
created jointly with society and clients, we will help solve social issues using digitaltechnology and realize outstanding growth toward realization of Group Value 2026.
© 2021 TIS Inc.

51% → 60%[¥228.5 billion→ ¥300 billion]
Sales of societal issue
solution service¥38 billion → ¥50 billion *1+

Growth investment

About ¥100 billion*1 Sales from services that provide solutions to social
issues of concern to TIS INTEC Group. Manage businessgrowth as part of strategic domain operations.

10

1

Looking Back on Previous Medium-Term Management Plan

2

Basic Policies in New Medium-Term Management Plan

3

Priority Strategies and Measures4

Numerical Targets© 2021 TIS Inc.

11

Improvevalue
providedby DX

DX Business Strategy⚫We will enhance our value chain across all businesses by improving the value provided in DX services
and reinforcing frontline (customer contact) activities.

DX consulting

Integration

Services

IT professional

BPO• Accelerate shift toward DX
through service introduction

Group strengths
Payment
ERP

Complement
strengths/technology
Increase number ofconsultants and leverage
strategic training© 2021 TIS Inc.

• End-to-end integration, fromstrategy to DX utilization andimplementation• Bimodal response

Services
Ｓｓｓ

BPO• Strengthen upstream businessprocess reengineering(BPR)
proposal capabilities• Boost added value throughdata utilization/application

Integration
Ｓｓｓ
IT professionalDX
consulting

Lift value chain,starting with enhanced
DX consulting

12Improvevalue
providedby DX

DX Business Strategy⚫To improve the value provided in DX services, we will encourage joint efforts with stakeholders andpromote stronger DX consulting expertise.

Will use digital technology to realize solutions to social issues.
Financial inclusion

Health concerns

Low-carbon/
decarbonized society

Urban concentration/
rural decline

Improve value provided in DX services
Go beyond time and place restrictions, connect people, things and information,and create new value through business, process and IT infrastructure innovation.
Businessinnovation

Technology

UX

Encourage joint efforts withstakeholders• Encourage joint efforts with clients(including establishment of joint ventureswith clients)• Leverage partner alliances© 2021 TIS Inc.

Work process
innovationData
analytics

Agile

Promote stronger DX consulting
expertise• Deepen pool of DX consultants(From about 250 to more than 500)
• Continue to strengthen data analytics/UX
and other designs

IT infrastructure
innovation

Business

IT Delivery
BPO

Enhance IT delivery• Constantly improve productivity• Raise added value of services drawing on
skills of IT professionals• Reinforce agile-style management
13

Expandinvestment
to generate
strengths

Business Strategy for Service IT Business⚫In addition to growth in the payment service domain, we will selectively allocate management resources
to areas of focus and strive to improve profitability across service operations through enhanced
management practices.
Service IT BusinessNumerical Targets

Net Sales

Operating Income[Billions of yen][Billions of yen]

136.9

Fiscal 2021

2021年3月期

165.0

6.3%
8.6

Fiscal 2024

2024年3月期

Fiscal 2021

2021年3月期

Main Services
Paymentsocietal issue solution
service *1

10.3%
17.0

• Launch creditSaaS and turn a profit as quickly as possible• Expand scope of business from frontline areas and new domain
services• Promote medium- to long-term growth strategies for services thatprovide solutions to social issues*1 Services that directly address financial inclusion, health concerns, lowcarbon/de-carbonization and urban concentration/rural decline

Fiscal 2024

2024年3月期

Net Sales(Fiscal 2021 → Fiscal 2024)¥28.5 billion → ¥34 billion¥38 billion → ¥50 billion

DC/Cloud/NW• Strengthen business activities, especially related to cloud andsecurity, and provide vertically integrated value¥42 billion → ¥49 billion

ERP• Build base of clients with potential for SPB opportunities byreinforcing frontline presence (client contact point)¥22.5 billion → ¥28 billion© 2021 TIS Inc.

14

Expandinvestment
to generate
strengths

Business Strategy for Service IT Business －Payment servicesー⚫We will capitalize on market growth, launch CreditSaaS, promote business development, and achieve
growth in this segment.
Market Scale

Strategic Focus

Cashless market in growth mode

Launch CreditSaaS and promote business development,
grow into pillar of business
CreditSaaS
Core competence
Payment
Lending
services

2030¥198 trillion

2025¥121 trillion
2019

Major growth for market¥82 trillion

Estimate by TIS

Strategic
partners
FinanceBusinesscoordination

Data analysis
RetailHealthcare

Target market

Administration/
Urban OS

Anticipated Composition of Business GrowthMarket Share (Fiscal 2024)
Core area
Credit core market

CreditSaaS¥20.0 billion

Business Structure
Front area

Prepaid coremarketPrepaidSaaS¥2.5 billion
DebitSaaS¥3.5 billion
Debit coremarketFront market
for issuers

Merchant/
QR/Wallet¥5.5 billion
Front market
for merchant

New domain creation/common ground ¥2.5 billion© 2021 TIS Inc.

リカーリング型売上
Recurringsales¥28.5 billion

SI型売上
SI
sales

EBITDA
marginEBITDAマージン¥34.0 billion
EBITDA margin
exceeding 20%(CreditSaaS contribution)

Fiscal 2021

2021年3月期

Fiscal 2024

2024年3月期
15Deepen andextend global
operations

Global Business Strategy⚫We will accelerate business growth and become a top-class IT corporate group in the ASEAN region byworking with partners in each ASEAN country in the pursuit of FCB and IOS opportunities.

ASEAN × Channel• Leverage investment to build
ASEAN business base in key
countries, focusing on Thailand
and Indonesia and then Malaysia,
Vietnam and the Philippines• Extend partnership net, withemphasis on areas of strength,
namely, banking and finance andpayment services

Global Business Scale[Consolidated]¥100 billion¥61.5 billion¥75.0 billion
Become top-class
IT corporate groupin ASEAN region
Profit margin
before depreciation
Target 10%

FY2019FY2023

FY2026

Global × X-Tech• Robust investment into
companies with world-leading
technology and services finetuned to area needs• Seek to extend target area
service lineup, especially
HRTech, HealthTech andMobilityTech, to complement
FinTech* Sum of revenues generated by ASEAN subsidiaries
and affiliates accounted for by equity method

Global × Emerging Tech
• Promote joint activities with leading companies, universities and government
agencies on R&D into disruptive technologies from a medium- to long-term
perspective• Invest in five disruptive technologies: robotics/IoT, blockchain, data analytics,
neural network and quantum computing
Strengthen human resources base, which will underpin wider global operations and realize good governance(Attract and train professional global workforce)© 2021 TIS Inc.

16

Diversificationof human
resources,
sharper skills

Human Resources Strategy⚫We will promote a human resources strategy focused on diversification of the corporate population andefforts to sharpen the skills of individuals to achieve continuous improvement in value exchange
between employees and company.
Overall Picture of Ideal Human Resources Strategy

Initiatives Designed to Realize Strategy

Provide value, support successas professionals

Employees

Company
Growth opportunities/
improved market value/compensation

Investin human
resources
Invest ineducation¥8 billion

Raiseadded value

Virtuous cycle ofvalue exchange
between employees
and company• Strive for higher value added,
and raise ratio on per-person
basis© 2021 TIS Inc.

• Robust investment in
human resources

Diversity& Inclusion

Sharpen/enhance skillsof human
resources

Personnel DX
Personnel
growth• Switch to high-value-added
businesses/procedures• Improve employee experience• Create environment and corporate culture thatenables employees with diverse backgrounds
to thrive• Promote next-generation workstyles for theafter-COVID era• Improve higher added value human resources• Enhance skills of DX consultants• Constantly enhance scope of human resources
to include global personnel, account managers
and service owners• Enhance human resources portfolio
management by digitizing information on
personnel• Help put employees on the right career pathMoreengagement• Design personnel system based on expectedrole/position, employee career orientation,
appropriateness to assignment, and capabilities• Introduce compensation/evaluation systemthat provides motivation and supports
medium- to long-term initiatives
17

Virtuous cycleof valuecreated jointly
by society andemployees

Strategy to enhance of Management Capabilities– Promote Group management/in-house DX –⚫We will complement the G20 project to enhance head office functions with measures to make head
office functions more DX oriented and strive to demonstrate greater effectiveness in management
processes.
Centralize Back-Office Operations and Promote Higher Added Value

Applying DX to In-House Operations

TIS INTEC Group

Business process innovation

TIS

INTEC

Other Group
companies

Provide high-value-added back-office functions that
support successful business strategies
Management
planning

Management
planning

Management
planning●● planning●● planning●● planning

Shared services
Provide shared back-office functions that arehigh quality and of optimum value
Wages/work

Final accounts/
reporting

Systems

・・・

・・・

・・・

Shared mission critical systems• Shift more toward paperless in-house operations• Promote wider automation of in-house operations,embrace digital responses• Make operations more efficient and high-tech throughapplication and usage of data.

Digital workspace• Use office robots for unmanned reception desk operations• Introduce virtual office• Improve Group portal and social networking sites

In addition to wider application of DX to in-house operations under the G20 project toenhance head office functions, we will strive to cut indirect costs groupwide by more than
¥1.5 billion (compared with fiscal 2021 level).
© 2021 TIS Inc.

18

Virtuous cycleof valuecreated jointly
by society andemployees

Strategy to Raise Level of Management Capabilities– Promoting sustainability management and ESG –⚫As a social system driving the pursuit of happiness, we aim to represent sustainability and contribute to
the realization of a sustainable society through our business activities.

Address social issues through business activities
・Promote growth strategies for services addressing four social issues that we see as needing long-term approach・Sales from services that provide solutions to social issues to exceed ¥50 billion

Environment

Society

Contribute to decarbonized society and recycling society

Sustainable improvement in stakeholder engagement• Reinforce response toward climate change/carbon neutral status, based on
environment-oriented long-term targets•Improve stakeholder satisfaction, and raise value exchange• Employee satisfaction ratio

62%

・Cut greenhouse gas emissions by 3% from fiscal 2020 level• Customer/service satisfaction ratio

60%

・Push renewable energy utilization rate at key data centers above 10%• Business partner satisfaction ratio

81%

・Present information based on Task Force on Climate-related Financial
Disclosures guidelines and acquire approval under Science Basedtargets Initiative• Strengthen initiatives related to human rights (such as defining humanrights policy)• Pinpoint current levels of water and waste, then set reduction targets andwork toward goals

GovernanceConstantly pursue level of corporate governance that elicits greater trust from society• Build management system hinging on non-financial, quantitative information• Optimize allocation of management resources with capital costs in mind (including efforts to accelerate replacement of nonbusiness assets mainly cross-shareholdings)• Constantly improve compensation system to cultivate awareness of benefits to enhanced corporate value and share withstakeholders• Raise transparency and independence of Board of Directors• Enhance Group governance (including efforts to strengthen management and supervision functions, identify and respond to tax andhuman rights risks)© 2021 TIS Inc.

19

Financial
investment
strategy

Growth Investment⚫We will improve the value provided in DX services and underpin efforts to acquire new technology
through robust investment of about ¥100 billion.
Growth Investment
M&A(capital contribution)¥70 billion

Software

Internal
reinforcement

R&D

Channel• Implement strategic M&As
• Contribute capital to accesstechnology and know-how andpromote joint business pursuits• Continue investment in softwaredevelopment for industry platform
building• Pursue research into leading-edge
technology• Engage in applied research toaccelerate market entry for new
business activities¥30 billion

New SPB

ASEAN

Robust investment themes:
Social issues where we can contribute solutions
Financial inclusion

Urban concentration/
rural decline

Low-carbon/
decarbonized society

Health concerns

Stronger value chain

Emerging Tech

• Promote investment to attract humanresources for business areas of focus

Joint creation

X - Techhone professional skills of employees

DX Offering

Tech Innovation

Human
resources • Continue to invest in programs to© 2021 TIS Inc.

Investment Policy

20

Financial
investment
strategy

Financial Policy⚫We will realize growth through robust investment while maintaining financial health and work towardhigher corporate value.
Financial Policy

Sustainable Improvement in Corporate Value

Sustainable Improvement in Corporate Value

Anticipated Business Growth

EPS

10% CAGR(Continuous growth)ROE

12.5–13%(Aiming for 15% in long term)

300
200

10% CAGR

100

Promotegrowth investment

Strengthen
return to shareholders

Growth investment
over three years

Total return ratio

About¥100 billion

Investment discipline
ROIC 8%

Seeking continuous growth exceeding 10% CAGR
FiscalFiscalFiscalFiscal2021年
2021 2022年
2022 2023年
2023 2024年
2024
3月期 3月期 3月期 3月期

Fiscal
2027年
2027
3月期

45 %

Enrich dividend per
share*Treasury stock held by TIS will,in principle, be limited to 5% of
total number of shares issued,
with any excess canceled.

Maintain financial health
Maintain A rating
Have cash and deposits
equivalent to two months’ worth of monthly sales© 2021 TIS Inc.

0

Anticipated ROE Improvement
16%
14%

Fiscal 2024 12.5–13%

12%
10%
8%

Will leverage structural transformation andbecome corporation capable of stable ROE of 15%
FiscalFiscalFiscalFiscal2021年
2021 2022年
2022 2023年
2023 2024年
2024
3月期 3月期 3月期 3月期

Fiscal
2027年
2027
3月期
21

Financial
investment
strategy

Cash Allocation, Structure of Balance Sheets⚫We will balance robust growth investment with stronger return to shareholders, based on cash frombusiness activities.
Cash Allocation
Stable generation of cash

Structure of Balance Sheets
Allocation

Investment
About ¥100 billion
Cash from businessactivities

Growth investment
M&A/software

Growth investment
R&D/
Personnel investment

Facility maintenanceinvestment
Strengthen
return to shareholders
About ¥50 billion

Asset optimization/fund procurement,
including cross-holdings

ROE Growth Structure
Net income ratio

ROE

10.8%

(Fiscal 2021)

12.5–13%(Fiscal 2024)

Total asset turnover ratio
Financial leverage© 2021 TIS Inc.

Other Liabilities

Current assets

Interest-bearing debt

Business assets

EquityNon-business assets✓ Robust growth investment
on condition of investment
discipline✓ Cross-holdings culled if
holding criteria not met

6.2%✓ Procurement matched toinvestment opportunities on
condition of retaining A
rating7.8%Structuraltransformation
investment results(Fiscal 2021)(Fiscal 2024)

1.1

Slight drop

Increase in businessassets paralleling
growth investments

On a parMaintain financial
health(Fiscal 2021)

1.6(Fiscal 2021)(Fiscal 2024)(Fiscal 2024)

22

Return to Shareholders⚫We will boost the total return ratio to a benchmark of 45% and constantly enrich the dividend per shareto encourage a higher degree of shareholder engagement.

Promotegrowthinvestment

Strengthen
return toshareholders

Return to Shareholders

還元

Maintain financial health

Dividend
配当

20.0
200

Return amount [Billions of yen]

15.0
150

39.0%

39.8%

Treasury stockacquisition
自己株取得

42.8%

45.0%

Total return ratio
総還元性向

45.0%

45.0%

45%

Annual dividend
per share
Constantly enrichdividend

10.0
100
Dividend
per share
¥35

505.0
0 0

Total return ratio

Upper limiton treasury stock
holdings
at 5%

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

3月期

3月期

3月期

3月期

3月期

3月期

2019年 2020年 2021年 2022年 2023年 2024年© 2021 TIS Inc.

23

1

Looking Back on Previous Medium-Term Management Plan

2

Basic Policies in New Medium-Term Management Plan

3

Priority Strategies and Measures4

Numerical Targets© 2021 TIS Inc.

24

Numerical Targets
Net Sales/Operating Income

420.7

405.6

443.7

500.0

[Billions of yen]

448.3

Be a Digital Mover 2023

Net Sales

11.6%

OperatingMarginOperating
Income

10.1%

10.2%

44.8

45.7

58.0

Fiscal 2018
Fiscal 2020
Fiscal 2021
Fiscal 20192018年3月期 2019年3月期 2020年3月期 2021年3月期

Fiscal 2024
2024年3月期

8.1%
32.7

9.0%
38.0

EPS Growth Ratio(Earnings per share growth rate)

EPS growth ratio (CAGR)

Strategic Domain Ratio
Fiscal 2021
2021年3月期

Fiscal 2024
2024年3月期
Strategic
Partnership
Business

Exceeding 10%
Frontier
MarketCreation
Business

IT Offering
ServiceBusiness
Function Service

Strategic Domain Ratio

51%© 2021 TIS Inc.

Strategic
Partnership
Business

Frontier
MarketCreation
Business

IT Offering
ServiceBusiness
Function Service

Strategic Domain Ratio

60%

25

Numerical Targets by Key Business Segment• Promote growth strategy fined-tuned to market• Promote growth strategy for payment service domain

Service IT
Business• Strengthen societal issue solution service

demandBPO• Raise added value through digitization of office• Reinforce service management and improve profitability

Net Sales[Billions of yen]

Operating Income

Net Sales[Billions of yen]

165.0

136.9

processes

17.0
10.3%

[Billions of yen]

Fiscal 2021
Fiscal 2024
2021年3月期 2024年3月期

Fiscal 2021
2021年3月期• Strengthen strategic partnerships with clients, including

credit card companies and banks, and encourage joint
creation projects• Make services more high-value-added through DX andNet Sales

110.7

Fiscal 2021
Fiscal 2024
2021年3月期 2024年3月期© 2021 TIS Inc.

Operating Income[Billions of yen]

125.0
15.3

13.8%

3.5

17.5

14.0%

Fiscal 2021
Fiscal 2024
2021年3月期 2024年3月期

Fiscal 2024
2024年3月期

Fiscal 2021
Fiscal 2024
2021年3月期 2024年3月期• Strengthen strategic partnerships with clients in

Industrial IT
Business

constantly pursue productivity reforms[Billions of yen]

9.1%

8.8%

3.1

6.3%

Financial IT
Business[Billions of yen]

38.5

35.5

8.6

Fiscal 2024
Fiscal 2021
2021年3月期 2024年3月期

Operating Income

industry and public sectors, and encourage joint
creation projects• Make services more high-value-added through DX andconstantly pursue productivity reforms

Net Sales[Billions of yen]

194.4

202.5

Operating Income[Billions of yen]

18.7
9.6%

Fiscal 2021
2021年3月期

Fiscal 2024
2024年3月期

Fiscal 2021
2021年3月期

21.0
10.4%

Fiscal 2024
2024年3月期
26

Reference: Strategic Domains⚫Four business domains will form the core of the TIS INTEC Group by 2026, as described in Group Vision2026.

1. Strategic Partnership Business (SPB)

3. Business Function Service (BFS)

For clients at the top of their industry, we will draw on industry
foresight and business knowledge that other companies cannot
match—our business tools—to explore and promote businessstrategies with clients and 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 enhancetheir value chains.

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

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

Promotion Measures

Promotion Measures• Help solve clients’ management concerns through hypotheses andproposals• Demonstrate composite strengths of Group; utilize advanced
technologies and forte products• Build closer client connections at each level, hinging on management
class• Launch joint projects with business partners• Take on responsibility for clients’ value chain and contribute tobusiness expansion• Escape from labor-intensive business through greater use ofmachines and automation• Add business services to Group’s IT Offering Service• Utilize and provide access to Group’s market channels

2. IT Offering Service (IOS)

4. Frontier Market Creation Business (FCB)

We 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 thesemarkets on our own.

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

Desired Status
Creating new markets that become pillars of business for theGroup

Promotion Measures• Team up with clients to pursue new business opportunities• Demonstrate innovation through creative alliances with business
partners• Encourage business creation using business ideas of individuals• Establish schemes/systems emphasizing speed• Build eco-systems in cooperation with business partners• Utilize and provide access to Group’s marketing channels© 2021 TIS Inc.

Promotion Measures27

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