Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 through June 30, 2024)(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 to consolidated
results unless otherwise noted. Information on the basis of presentation of consolidated financial statements does not appear inthis translation.
July 30, 2024
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:TIS Inc.
Tokyo Stock Exchange, Prime Market
3626
https://www.tis.com/
Yasushi Okamoto, President
Masahiro Hiwasa, Department Manager of Finance & Accounting Dept., Corporate
Planning SBU.
+81 50-1702-4115

Scheduled dates
Commencement of dividend payments:-

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 Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 – June 30, 2024)(1) Consolidated Financial Results

Percentages indicate year-over-year changes
Net sales

Operating income

millions of yen%

millions of yen

Net income attributableto owners of the parent
company

Recurring profit%

millions of yen%

millions of yen%

First Quarter, FY2025
134,055
3.6
14,061-1.7
15,071-1.7
10,6795.2
First Quarter, FY2024
129,429
9.6
14,31014.5
15,328
11.1
10,14715.8
Note: Comprehensive income: First Quarter, FY2025: 12,287 million yen (-12.4%); First Quarter, FY2024: 14,032 million yen (173.0%)
Net income
per share – basic
First Quarter, FY2025
First Quarter, FY2024

Net income
per share – diluted

yen

yen

45.66
41.94

-

(2) Consolidated Financial Position
Total assets
millions of yen

Net assets
millions of yen

Equity ratio%

End of First Quarter, FY2025
502,853
320,398
61.4
End of FY2024
525,456
324,725
59.5
For reference: Total equity: End of first quarter, FY2025: 308,787 million yen End of FY2024: 312,409 million yen*Total equity = Shareholders’ equity plus total accumulated other comprehensive income

2. Cash Dividends for Shareholders of Common Stock
Record date or
periodCash dividends per share
End-Q1End-Q2yen

End-Q3yen

17.00
FY2024FY2025
FY202534.00(forecast)
Note: Revisions from the latest release of dividends forecasts: None

Year-end

Total

yen

yen

-

39.00

56.00

yen

-

34.00

68.00

3. Forecast of Consolidated Results for FY2025 (April 1, 2024 – March 31, 2025)

Net salesFirst half of FY2025(six months ending Sep. 30,
2024)

Full FY2025(year ending Mar. 31, 2025)

Operating income

Percentages indicate year-over-year changes
Net income
attributable to
Net income per
Recurring profit
owners of the parent
share – basic
company

millions of yen%

millions of yen%

millions of yen%

millions of yen%

yen

270,000

0.9

30,000-1.3

30,000-5.8

20,300

-0.0

87.13

555,000

1.1

66,5003.0

66,500-3.044,800-8.3

192.55

Notes: Revisions from the latest release of earnings forecasts: None

※ 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.: Yes
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 Quarter, FY2025 (June 30, 2024):
236,233,411 shares
End-FY2024 (March 31, 2024):
236,233,411 shares
2) Treasury stock as of period-end:
End-First Quarter, FY2025 (June 30, 2024):
4,051,645 shares
End-FY2024 (March 31, 2024):
1,924,351 shares
3) Average number of shares (during the respective three-month period):First Quarter, FY2025 (ended June 30, 2024):
233.864,638 sharesFirst Quarter, FY2024 (ended June 30, 2023):
241,933,529 shares
Note: Treasury stock includes the number of the Company’s own shares held by TIS INTEC Group Employees’
Shareholding Association Trust and the Board Incentive Plan (BIP) Trust.

Quarterly review status
Review of the attached consolidated quarterly financial statements by certified public accountants or an audit corporation:
None.
Caution on Forward-Looking Statements and Other Important Matters
At a Board of Directors’ Meeting held on May 8, 2024, TIS Inc. (TIS) resolved to acquire its own (treasury) shares inaccordance 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 FY2025 has been presented taking
into account the effect of this acquisition of treasury shares.
This report contains forward-looking statements that reflect TIS’s plans and expectations based on information available to
TIS at the time of preparation and on certain other information TIS believes to be reasonable. 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 of Operations” section on
page 8 in the Accompanying Materials.

Accompanying Materials – Contents
1. Results of Operations

2(1) Analysis of Consolidated Operating Results

2(2) Analysis of Financial Condition

7(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements

8

2. Consolidated Financial Statements

10(1) Consolidated Balance Sheets

10(2) Consolidated Statements of Income and Comprehensive Income

12

Consolidated Statements of Income
For the First Quarter

12

Consolidated Statements of Comprehensive Income
For the First Quarter13(3) Notes on the Consolidated Financial Statements

14(Notes on Changes in Accounting Policies)

14(Notes on Segment Information)

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

16(Notes on the Going-concern Assumption)

16(Notes on Quarterly Consolidated Statements of Cash Flows)

16(Revenue Recognition)

17

3. Other Information

17

-1-

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first three months of fiscal 2025 (April 1, 2024 – June 30, 2024), the Japanese economy recovered moderately, albeit
with some stagnation, due in part to the effects of various policies, as the new employment and income environment improved.
Looking ahead, although a moderate recovery is expected to continue, it will be necessary to watch carefully for the risk of
downward pressure on Japan’s economy due to the effects of a downturn in overseas economies amid the continued high interest
rate levels in Europe and the U.S. as well as rising prices, fluctuations in financial and capital markets, and other factors. The
IT services industry, to which the TIS INTEC Group (“the Group”) belongs, is expected to see further increases in IT investment
demand as transformation of business processes and business models utilizing digital technologies progresses globally. This isdemonstrated by factors such as the Bank of Japan’s quarterly Short-term Economic Survey of Enterprises in Japan (June 2024),
which showed a 14.8% year-on-year increase in company software investment plans (all industries, including financial
institutions).
Under these circumstances, the Group has launched a new three-year Medium-Term Management Plan (2024–2026) at thestart of fiscal 2025 as the first stage toward achieving “Group Vision 2032” which was formulated in April 2024. Whiletranslating the various investments and customer relationship-building activities undertaken in the previous medium-term
management period into positive results, we will build on our achievements to date to create a clear advantage and, throughdifferentiation and concentration, accumulate reasons to be the lasting choice of markets and customers in the future, aiming at
sustainable growth with added value.
Consolidated net sales for the Group in the first quarter of fiscal 2025 rose 3.6% year on year to ¥134,055 million. Operating
income fell 1.7% year on year to ¥14,061 million, recurring profit was down 1.7% year on year to ¥15,071 million, and net
income attributable to owners of the parent company rose 5.2% year on year to ¥10,679 million.
(Unit: millions of yen)First Quarter, FY2024(Apr. 1 – Jun. 30, 2023)

First Quarter, FY2025(Apr. 1 – Jun. 30, 2024)

Year-on-yearchanges

129,429

134,055+3.6%

Cost of sales

94,467

97,936+3.7%

Gross profit

34,961

36,118+3.3%

Gross profit ratio

27.0%

26.9%

-0.1P

20,65122,056+6.8%

14,31014,061-1.7%

Net sales

Selling, general andadministrative expenses
Operating income
Operating income ratio

11.1%

10.5%

-0.6P

Recurring profit

15,32815,071-1.7%

Net income attributable toowners of the parent company

10,147

10,679+5.2%

Net sales were higher than in the same period of the previous year because we expanded our business by precisely responding
to IT investment demand, such as customers’ demand for digital transformation. Operating income fell slightly year on year,
despite the increase in income from higher revenue, provision of high-added-value businesses, and promotion of productivity
enhancement measures, etc., due to the impact of passing the peak of large-scale development projects that have driven ourbusiness growth in recent years and the impact of unprofitable projects. As for profitability, the gross profit ratio decreased 0.1
percentage points year on year to 26.9% and the operating income ratio fell 0.6 percentage points year on year to 10.5%. The
drop in recurring profit year on year mainly reflects the decrease in operating income. Net income attributable to owners of theparent company decreased year on year, mainly due to the recording of a gain on sales of investment securities resulting from a
reduction in cross-shareholdings.

-2-

<Analysis of key factors causing the increase/decrease in operating income (YOY change)>

Segment results for the period are as follows. The sales figures for each segment include inter-segment sales.
(Unit: millions of yen)First Quarter, FY2024

First Quarter, FY2025(Apr. 1 – Jun. 30, 2023) (Apr. 1 – Jun. 30, 2024)

Year-onyearchanges

Offering

Net sales

28,01834,001+21.4%

ServiceBusiness

Operating income

1,157

2,206

+90.7%

BPM

Financial IT
Business
Industrial IT
Business
Regional IT
Solutions

Other

Operating income ratio

4.1%

6.5%

+2.4P

Net sales

10,30010,008-2.8%Operating income

727

836

+15.0%

Operating income ratio

7.1%

8.4%

+1.3P

Net sales

26,737

24,974-6.6%

Operating income

4,081

3,075

-24.7%

Operating income ratio

15.3%

12.3%

-3.0P

Net sales

28,67029,840+4.1%

Operating income

4,393

4,359

-0.8%

Operating income ratio

15.3%

14.6%

-0.7P

Net sales

41,78441,060-1.7%

Operating income

4,061

3,355

-17.4%

Operating income ratio

9.7%

8.2%

-1.5P

Net sales

2,265

2,377

+4.9%

Operating income

124

219

+76.0%

Operating income ratio

5.5%

9.3%

+3.8P

1) Offering Service Business
Configures services through own investment based on best practices the Group accumulated and provides knowledgeintensive IT services.
Segment sales during the first quarter of fiscal 2025 totaled ¥34,001 million, up 21.4% year on year, and operating income
increased 90.7% year on year to ¥2.206 million. In addition to the expansion in IT investment in the settlement solutions,platforms, and business management fields, and contributions by overseas operations, the business results of Nihon ICS Co.,
Ltd. and other subsidiaries, which became consolidated subsidiaries in fiscal 2024, were reflected in the consolidated financial
results of fiscal 2025, resulting in a year-on-year increase in both sales and profits with an operating income ratio of 6.5%, up
2.4 percentage points year on year.

-3-2) Business Process Management
Addresses issues related to business processes with IT technology, business know-how and skilled human resources toprovide more sophisticated, more efficient outsourcing services.
Segment sales during the first quarter of fiscal 2025 totaled ¥10,008 million, down 2.8% year on year, and operating income
increased 15.0% year on year to ¥836 million. Although data entry operations remained sluggish, continued cost reductions
through streamlining operations, etc. resulted in a decrease in revenue and growth in income year on year, and pushed up thesegment’s operating income ratio to 8.4%, a year-on-year increase of 1.3 percentage points.
3) Financial IT Business
Considers business and IT strategies together and leverages both, and supports business progress using expert business andoperating know-how specific to the finance industry.
Segment sales during the first quarter of fiscal 2025 totaled ¥24,974 million, down 6.6% year on year, and operating income
decreased 24.7% year on year to ¥ 3,075 million. Due to significant effects of passing the peak of large-scale development
projects for credit card companies and other core clients as well as public-sector financial institutions, both sales and profits
decreased year on year, and the segment’s operating income ratio fell to 12.3% (down 3.0 percentage points year on year).
4) Industrial IT Business
Considers business and IT strategies together and leverages both, and supports business progress using expert business andoperating know-how specific to industry sectors other than finance.
Segment sales during the first quarter of fiscal 2025 totaled ¥29,840 million, up 4.1% year on year, and operating income
decreased 0.8% year on year to ¥4,359 million. While the trend of expanding IT investments in a wide range of industries,
including services, manufacturing and distribution led overall growth, a decrease due to the non-recurrence of large-scale
development projects in the manufacturing sector, etc. resulted in a year-on-year increase in sales and decrease in profit, andthe operating income ratio fell 0.7 percentage points year on year to 14.6%.
5) Regional IT Solutions
Provides IT professional services extensively, across regions and client sites, and collects and develops this know-how as
the source of solutions to support efforts to address issues and promote business activities.
Segment sales during the first quarter of fiscal 2025 totaled ¥41,060 million, down 1.7% year on year, and operating income
decreased 17.4% year on year to ¥ 3,355 million. Sales and profits decreased year on year mainly due to the non-recurrenceof medical distribution projects, as well as an emergence of unprofitable projects and an increase in costs of organizational
reinforcement, resulting in the segment’s operating income ratio dropping to 8.2%, a year-on-year decrease of 1.5 percentage
points.
6) OtherConsists of ancillary businesses offering IT services, and other activities.
Segment sales in the first quarter of fiscal 2025 totaled ¥2,377 million, up 4.9% year on year, and operating income grew
76.0% to ¥219 million with the operating income ratio increasing 3.8 percentage points year on year to 9.3%.

-4-

As mentioned earlier, the Group has launched a new three-year Medium-Term Management Plan (2024–2026) at the start offiscal 2025. We will set frontier development as a fundamental strategy and strive for sustainable growth paralleling higher
added value. We will strive to achieve changes in society and for corporate clients by enhancing quality across all value chains,
starting with forward-looking market development and business domain expansion.

■ Market Strategy / Overall Segment Strategy
We will expand our business area by developing various services based on the characteristics of each segment, andcontinue to strengthen our business foundation for sustainable growth. The growth strategies for each segment are as
follows.

Offering Service
Business・Respond to diversified cashless payment needs and expand the business domain as a business
operator with strengths in finance and settlement that newly address social issues
・Improve profitability by upgrading investment management

BPM

・Amid a shrinking market for some BPO operations, the Company is returning to a growth
path by reviewing its business portfolio, such as expanding the customer experience (CX)
domain, where demand is strong, and expanding services in collaboration with other segments

Financial IT Business・This segment will pass its peak after the completion of a major project. However, it will lay
the next foundation for growth by co-creating businesses with these clients, developing
modernization businesses, acquiring new clients, and diversifying its client baseIndustrial IT Business

Regional IT Solutions

・Deepen customer relationships and expand services with a focus on manufacturing, energy,
and social infrastructure
・Drive growth with existing customers and attract new ones by leveraging a variety of services
such as ERP and modernization
・Nationwide deployment of original IT solutions developed in close contact with clients in fivepriority areas (public administration, healthcare, finance, industry and infrastructure)■ Market Strategy/Global Strategy
The Company positions Asia, which has enormous market potential, as a long-term target, and aims to grow its businessin ASEAN while expanding its global partnerships, with the goal of achieving consolidated net sales of ¥100 billion in fiscal
2026. We will develop our business with agility, both by striving for greater value across the business through the integrationof IT and consulting on business restructuring, and by upgrading our technology investment function.

-5-

■ Service Strategy
Our customers’ needs are diversifying with changing social trends and emerging innovative technologies. Under thesecircumstances, we will continue to expand our services and develop the market by adding higher value in order to support
the transformation of society and our customers. The Financial IT Business and Industrial IT Business will mainly develop
markets based on industries, while Offering, BPM, and Regional IT will develop markets based on functions and develop
services in accordance with the guidelines of each business segment.
■Technology Strategy
The evolution and diversification of elemental technology is remarkable, and the Company recognizes that early
adaptation to these technologies will have a significant impact on its competitiveness. With a technology portfolio, which
is a selection of technologies on the market that are important to the Group, we continue to implement comprehensive
measures to study these technologies upfront and apply them in the field as quickly as possible. In the short-term, we will
promote measures such as creating an environment that encourages employees to use generative AI, redesigning processes
based on the use of AI in various internal operations, and developing a generative AI training program and conducting
training. Meanwhile, through industry-academic collaborations, we will promote research into a series of technologies andtheir combined applications that will form the core of the differentiation of our business in three to ten years, such as themass data transfer technologies and related algorithms that will be required as the digital and physical worlds continue toconverge.
■ Human Resource Strategy
In order to continue to enhance the value exchange between employees and Group companies, the Group will promote ahuman resource strategy focusing on diversification and advancement of individuals. In that, the Group will take on thechallenge of improving engagement with employees through creating an environment and organizational culture where
diverse individuals can thrive, promoting next-generation work-style reforms looking towards a new work environment,
and advancing human resource portfolio management by digitalization of a human resources database.
The Company has regarded human resources as its most important management capital and has actively promoted upfront investment in human resources. Regarding the human resource strategy, the Company is investing in human resources
to increase employee engagement based on the three axes of the meaning of work, the working environment, andcompensation. We will continue striving for further growth and securing excellent talent inside and outside the Company
that will contribute to growth by strengthening a virtuous cycle of high added value for the Company, our employees, andsociety.
The Medium-Term Management Plan (2024–2026), under the theme of strengthening problem-solving, insight, andintegration capabilities, will focus on expanding DX consultants, advanced sales personnel, and IT architects and will
promote investment and the creation of mechanisms to develop and acquire such personnel.
■ Intellectual Property Strategy
We believe that the accumulation and advanced utilization of intellectual property will become increasingly important tostrengthen the Group’s services and service delivery processes and to achieve both business scale expansion and high-value
creation. In the Medium-Term Management Plan (2024–2026), we will work to promote the creation of intellectual property
by strengthening the feedback of customer touchpoint information. We will strengthen a virtuous cycle of providing highvalue services through satisfactory service delivery processes, which will improve the quality of communication withclients, and thereby updating existing intellectual property and generating valuable information that will lead to the creationof new intellectual property.
■ Financial Policy/Basic Principle of Capital Policy
The basic principle of the Company’s capital policy is to promote an appropriate capital structure from a medium- tolong-term management perspective. This policy takes a balanced approach to promoting investments for growth, ensuring
financial soundness, and strengthening shareholder returns to continuously increase corporate value.
Specifically, to strengthen our ability to generate cash through sustained business profit growth and improved
profitability, we will aggressively invest for growth, and as part of this effort, we will continue to discuss and implement a
review of our business portfolio.
In addition, we will strive to optimize our capital structure in line with our business structure by strengthening balance
sheet management and implementing measures to generate sustainable returns above the cost of capital while maintaining
financial health. We aim to improve and increase shareholder returns consistent with business growth.

-6-Based on the above, the Medium-Term Management Plan (2024–2026) calls for a cumulative investment of ¥100 billion
over three years for growth, a total return ratio of 50%, and an appropriate capital structure in line with the Company’s
ability to generate cash.
Fiscal 2025 Group Management Direction based on the Medium-Term Management Plan (2024–2026) is as follows:- Leverage long-term growth strategy for corporate value and value provided to society through sustainability management- Increase added value by reinforcing issue-solving ability- Expand profitability, mainly through business structure transformation based on continued approach to robust investment- Leverage business expansion to underpin status as top-class IT group in ASEAN region, and strengthen governance- Reinforce human resource growth and intellectual property utilization to maximize added value provided
The status of main initiatives during the first quarter of fiscal 2025 is as follows:
As part of the initiative to promote service strategy for the payment business, the Company entered into a capital and businessalliance agreement with Nudge Inc. in April 2024 and launched “Light version of Credit Card Processing Service” targeting thedigital native generation. Through this initiative, the Company will strengthen the asset of “PAYCIERGE”, its brand of digital
payment settlement platform, aiming for a top share in the light credit card market.
In addition, from May to June 2024, the Company acquired treasury stock of approximately ¥6,499 million (total of 2,216,200
shares) in total as part of its efforts to enhance shareholder returns and capital efficiency by implementing flexible capital policies
that can swiftly respond to changes in the business environment. As a general rule, the Company holds up to 5% of the number
of issued shares, and any holdings exceeding 5% of issued shares would be retired.

(2)

Analysis of Financial Condition(Unit: millions of yen)
As of March 31, 2024(A)

As of June 30, 2024
(B)

Increase/decrease(B-A)

Current assets

291,556

266,343-25,212

Fixed assets

233,899

236,509+2,609Total assets

525,456

502,853-22,602

Current liabilities

140,277

125,152-15,124

Non-current liabilities

60,45357,302-3,150Total liabilities

200,730

182,455-18,275

Total net assets

324,725

320,398-4,327(Assets)
Consolidated total assets as of June 30, 2024amounted to ¥502,853 million, a decrease of ¥22,602 million from ¥525,456
million at the end of the previous fiscal year. This was mainly due to a decrease of ¥26,803 million in notes and accounts
receivable and contract assets due to collection, etc., and an increase of ¥6,590 million in buildings and structures and land
resulting from the split acquisition of beneficial interests in real estate trust.
(Liabilities)
As of June 30, 2024, total liabilities amounted to ¥182,455 million, a drop of ¥18,275 million from ¥200,730 million at theend of the previous fiscal year. This was mainly due to a ¥8,398 million decrease in accrued bonuses to directors andemployees, a ¥6,004 million fall in income taxes payable, and a ¥5,030 million decrease in notes and accounts payable,
following the payment.
(Net assets)
Consolidated net assets as of June 30, 2024amounted to ¥320,398 million, a decrease of ¥4,327 million from ¥324,725
million at the end of the previous fiscal year. The increase primarily consisted of a ¥1,466 million increase in retained earnings,
and a ¥6,195 million rise in treasury stock after its acquisition, etc. (net assets decreased).
The increase in retained earnings resulted from a ¥10,679 million increase in net income attributable to owners of the parent
company and a decrease of ¥9,213 million due to payment of dividend of surplus.

-7-

(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements
The Company’s consolidated business performance has been generally in line with the plan, and we will continue to steadily
promote various measures to achieve the full-year plan. As of the release of this quarterly earnings report, management has
made no changes to the consolidated earnings forecast released on May 8, 2024.
As was initially planned, we aim to achieve sustainable growth and further improve profitability under the Medium-Term
Management Plan (2024–2026), through providing high-added-value businesses and promoting productivity enhancement
measures. We will do so even as we face the impact of passing the peak of large-scale development projects that have driven
our business growth in recent years and the prospect of extensive investments that will contribute to future growth, including
investments in human resources positioned as our most crucial capital. Note that the decrease in recurring profit and net income
attributable to owners of the parent company is due to non-operating income and extraordinary income recorded in fiscal 2024.
<Consolidated earnings forecast for fiscal 2025 (April 1, 2024 – March 31, 2025)>(Unit: millions of yen)
Fiscal 2024
Actual results

Fiscal 2025
Forecast

Year-on-year change

Net sales

549,004

555,000+1.1%

Cost of sales

397,365

396,000-0.3%

Gross profit

151,639

159,000+4.9%

Gross profit ratio

27.6%

28.6%

+1.0P

Selling, general andadministrative expenses

87,07092,500+6.2%

Operating income

64,56866,500+3.0%

Operating income ratio

11.8%

12.0%

+0.2P

Recurring profit

68,553

66,500-3.0%

48,87344,800-8.3%

Net income attributable to ownersof the parent company<Analysis of key factors causing the increase/decrease in operating income (forecast, year-on-year change)>-8-

<By segment>(Unit: millions of yen)

Offering Service
Business

BPM

Financial IT
Business
Industrial IT
Business
Regional IT
Solutions

Other

Fiscal 2024

Fiscal 2025

Year-on-year

Actual results

Forecastchange130,759

140,800+7.7%

Operating income

7,659

8,600

+12.3%

Operating income ratio

5.9%

6.1%

+0.2P

Net sales

41,95343,000+2.5%

Net sales

Operating income

4,551

4,500

-1.1%

Operating income ratio

10.8%

10.5%

-0.3P

Net sales

106,304

98,500-7.3%

Operating income

15,18512,000-21.0%

Operating income ratio

14.3%

12.2%

-2.1P

Net sales

121,896

125,500+3.0%

Operating income

18,287

19,600+7.2%

Operating income ratio

15.0%

15.6%

+0.6P

Net sales

172,376

171,000-0.8%

Operating income

18,49721,500+16.2%

Operating income ratio

10.7%

12.6%

+1.9P

Net sales

9,581

10,000+4.4%

Operating income

777

700

-10.0%

Operating income ratio

8.1%

7.0%

-1.1P

The Company’s Medium-Term Management Plan (2024–2026) includes a basic shareholder return policy that targets a total
return ratio of 50%. Due to implementation of the above-mentioned share buyback, and based on the current consolidated
earnings forecast and dividend forecast, the total return ratio for fiscal 2025 is expected to be in line with the basic policy.
Note) Total return ratio: The ratio of the combined value of dividend payments and share buybacks to net income attributableto owners of the parent company-9-2. Consolidated Financial Statements(1) Consolidated Balance Sheets
Items
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, and contract assets
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-10-

As of March 31, 2024

As of June 30, 2024

millions of yen

millions of yen

103,554
144,141
4,312
281
3,946
1,432
193
34,085(392)
291,556

102,620
117,338
4,097
433
4,423
1,015
276
36,541(403)
266,343

34,3258,205
15,802
4,720
6,662
69,71535,141
7,744
21,5774,654
6,594
75,711

20,3293,246
9,659
22,56555,801

19,132
3,602
9,443
22,25254,43256,396
10,754
20,39721,092(258)
108,382
233,899
525,456

57,727
10,837
16,855
21,202(257)
106,365
236,509502,853

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
Allowance for performance-linked compensation
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
Allowance for performance-linked compensation
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
Deferred gains or losses on hedges
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-11-

As of March 31, 2024

As of June 30, 2024

millions of yen

millions of yen

26,206
17,398
9,024
16,952
1,955
114
68,625140,277

21,175
17,331
3,019
8,553
1,970
86
200
72,813
125,152

20,509
4,763
8,507
272
0
119
11
12,8086,617
6,844
60,453200,730

18,059
4,571
8,069
272
0
175
11
12,837
6,633
6,672
57,302
182,455

10,001
12,314
283,533(6,395)
299,453

10,001
12,314284,999(12,591)
294,724

11,715(2)(2,672)983
2,931
12,956
12,315
324,725
525,456

12,69937(2,672)
1,118
2,880
14,063
11,610320,398
502,853

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Quarter, FY2024 First Quarter, FY2025
Items(Apr. 1 – Jun. 30, 2023) (Apr. 1 – Jun. 30, 2024)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliated companies
Gain on foreign exchange
Other
Total non-operating income
Non-operating expense
Interest expenses
Equity in losses of affiliated companies
Financing expenses
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of investment securities
Gain on reversal of asset retirement obligations
Other
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Impairment loss
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-12-

millions of yen

millions of yen

129,429
94,467
34,961
20,651
14,310134,055
97,936
36,11822,056
14,061

13
516
－
491
144
1,165

96
624
73
265
156
1,216

63
8
47
27
147
15,328

96
－
14
96
206
15,071

176
551
45
773

1,984
－
3
1,987

196
19
6
223
15,879
2,241
3,190
5,431
10,447300
10,147

224
391
100
716
16,343
2,597
2,643
5,240
11,102423
10,679

Consolidated Statements of Comprehensive Income
First Quarter, FY2024 First Quarter, FY2025(Apr. 1 – Jun. 30, 2023) (Apr. 1 – Jun. 30, 2024)

Items

millions of yen

Net income
Other comprehensive income
Net unrealized gains on other securities
Deferred gains or losses on hedge
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-13-

millions of yen

10,447

11,102

3,004
80
275
63

980
82
33
(50)

160

138

3,584
14,032

1,185
12,287

13,548

11,786483

500

(3) Notes on the Consolidated Financial Statements(Notes on Changes in Accounting Policies)(Application of the “Accounting Standard for Current Income Taxes,” etc.)
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereinafterreferred to as the “2022 Revised Accounting Standard”), etc., have been applied from the beginning of the firstquarter of the current fiscal year.
Regarding the revisions to the categories in which current income taxes should be recorded (taxation on othercomprehensive income), the Company follows the transitional treatment prescribed in the proviso to Paragraph20-3 of the 2022 Revised Accounting Standard and the transitional treatment prescribed in the proviso to Paragraph65-2 (2) of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022;
hereinafter referred to as the “2022 Revised Implementation Guidance”). These changes in accounting policies
have no impact on the quarterly consolidated financial statements.
In addition, with regard to revisions related to the treatment in consolidated financial statements when gains orlosses arising from the sale of subsidiary shares, etc., among consolidated companies are deferred for tax purposes,
the 2022 Revised Implementation Guidance has been applied from the beginning of the first quarter of the current
fiscal year. These changes in accounting policies have been applied retroactively, and the quarterly consolidated
financial statements and consolidated financial statements for the previous quarter and the previous fiscal year
have been prepared on a retroactive basis. These changes in accounting policies have no impact on the quarterly
consolidated financial statements of the previous quarters and the consolidated financial statements for theprevious fiscal year.

-14-

(Notes on Segment Information)
I. First Quarter, FY2024 (Apr. 1 - Jun. 30, 2023)
1. Information on net sales and income by reportable segment
Reportable segment
Business
Offering
Financial Industrial Regional
Process
ServiceIT
IT
IT
ManagemBusiness
Business Business Solutions
ent

Total

24,928

9,798

26,36628,54039,277

128,911

3,090

502

370

130

2,506

6,599

28,01810,30026,73728,67041,784

135,511

1,157

727

4,081

4,393

4,061

14,421

Other(Note 1)

Total

(millions of yen)Amountrecorded inquarterly
Adjustment
consolidate(Note 2)d statementof income(Note 3)

Net sales
Net sales to externalcustomers
Inter-segment sales
or transfers
Total
Segment income(Notes)517 129,429-

129,429

8,347(8,347)-2,265 137,777(8,347)

129,429(235)

14,3101,747

124

14,546

1. “Other” refers to business segments not included in the reportable segments, and consists of businesses
incidental to the provision of various IT services, etc.
2. The adjustment of segment income of ¥-235 million includes the elimination of unrealized income of¥8 million.
3. Segment income has been adjusted to with operating income recorded in the quarterly consolidated
statements of income.

2. Information on impairment loss on fixed assets or goodwill by reportable segment(Significant changes in goodwill amount)In the “Offering Service Business” segment, goodwill of ¥8,356 million was recorded in the first quarterof the previous fiscal year due to the acquisition of shares of Nihon ICS Co., Ltd.
II. First Quarter, FY2025 (Apr. 1 - Jun. 30, 2024)
1. Information on net sales and income by reportable segment
Reportable segment
Business
Offering
Financial Industrial Regional
Process
ServiceIT
IT
IT
ManagemBusiness
Business Business Solutions
ent

Total

30,951

9,522

24,63529,741

38,639133,490

3,050

485

339

99

2,421

6,396

34,001

10,00824,97429,84041,060139,886

2,206

836

3,075

4,359

3,355

13,833

Other(Note 1)

Total

(millions of yen)Amountrecorded inquarterly
Adjustment
consolidate(Note 2)d statementof income(Note 3)

Net sales
Net sales to externalcustomers
Inter-segment
or transfers
Total
Segment income(Notes)sales

564 134,055-

134,055

8,209(8,209)-2,377 142,264(8,209)134,055

8

14,061

1,812

219

14,053

1. “Other” refers to business segments not included in the reportable segments, and consists of businesses
incidental to the provision of various IT services, etc.
2. The adjustment of segment income of ¥8 million includes the elimination of unrealized income of ¥26
million.
3. Segment income has been adjusted to with operating income recorded in the quarterly consolidated
statements of income.

-15-

(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Notes on the Going-concern Assumption)
Not applicable(Notes on Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statement of cash flows for the first quarter of the current fiscal year has not been prepared.
Depreciation (including amortization related to intangible assets, excluding goodwill) and amortization of goodwill forthe first quarter of the current consolidated fiscal year are as follows.
First Quarter, FY2024(Apr. 1 - Jun. 30, 2023)
Depreciation

4,006 million yen

Amortization of goodwill

38

-16-

First Quarter, FY2025(Apr. 1 - Jun. 30, 2024)
4,465 million yen
220

(Revenue recognition)
Disaggregated information on revenue from contracts with customers
First Quarter, FY2024 (Apr. 1 - Jun. 30, 2023)(millions of yen)
Reportable segment
Other(Note 1)

Offering
ServiceBusiness

Business
Process
Management

10,288
8,526
6,113

3,222
6,385
189

15,336
9,635
1,395

18,946
6,516
3,077

20,063
13,922
5,291

67,85744,986
16,067

Other

-

-

-

-

-

-

Total

24,928

9,798

26,36628,54039,277

128,911

Software development
Operating and Cloud services
Product and Software Sales

Financial Industrial Regional
IT
IT
IT
Business Business Solutions

Total

Total

67,857- 44,986- 16,067
517
517
517 129,429-(Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses
incidental to the provision of various IT services, etc.
2. The above includes income from lessor leases, as the amounts are insignificant and so they are not presented
separately from revenue from contracts with customers.
First Quarter, FY2025 (Apr. 1 - Jun. 30, 2024)(millions of yen)
Reportable segment
Other(Note 1)

Offering
ServiceBusiness

Business
Process
Management

11,742
10,483
8,724

2,954
6,270
297

12,42010,812
1,402

19,824
6,319
3,597

19,906
14,4184,314

66,84848,305
18,336

Other

-

-

-

-

-

-

Total

30,951

9,522

24,63529,741

38,639133,490

Software development
Operating and Cloud services
Product and Software Sales

Financial Industrial Regional
IT
IT
IT
Business Business Solutions

Total

Total

66,848- 48,305- 18,336
564
564
564 134,055-(Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses
incidental to the provision of various IT services, etc.
2. The above includes income from lessor leases, as the amounts are insignificant and so they are not presented
separately from revenue from contracts with customers.

2. 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 as of November 13, 2018, was ¥12,703 million. It waschanged to ¥15,485 million on December 8, 2023).

-17-