Slide 1: Fiscal Year Ended March 2025 Results Briefing
Fiscal Year Ended March 2025 (FY3/25) Results Briefing SYSTEM RESEARCH CO., LTD. (TSE Prime/NSE Premier: 3771 ) © SYSTEM RESEARCH CO.,LTD.
Slide 2: Contents
Contents 1．Company Profile 2．FY3/25 Results 3．FY3/26 Forecasts 4．Medium-Term Management Plan 5．Sustainability 6．Solutions 7．References Head office building, front entrance (Iwatsukahontori, Nakamura-ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 1
Slide 3: 1. Company Profile
Contents 1．Company Profile Head office building (Iwatsukahontori, Nakamura-ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 2
Slide 4: Company Profile
Company Profile Established March 1981 Listed stock Listed on the First Section of the Tokyo Stock Exchange in December 2016 exchange TSE Prime / NSE Premier Duplicate listing oｆ the Nagoya Stock Exchange in March 2025 Representative Toshiyuki Yamada, Representative Director and Chairman Hiroshi Hir
Slide 5: Branches and Sales Locations
Branches and Sales Locations Number of employees (Consolidated): 1,656 Number of employees Main Sales (Non-consolidated): 1,634 locations network Sowel Co., Ltd.: 22 (As of April 1, 2025) Osaka Branch 223 Tokyo Branch 394 Nagoya Head Office 1,017 © SYSTEM RESEARCH CO.,LTD. 4
Slide 6: Business Activities of Subsidiaries
Business Activities of Subsidiaries Business of Special Subsidiary Sowel Co., Ltd. Address: 6-52-18 Imajuku, Ogaki-shi, Gifu Investment ratio: SYSTEM RESEARCH CO., LTD. 75%, Weltechnos Co., Ltd. 25% Purpose - Providing opportunities for people with disabilities, to support their independence and enj
Slide 7: Corporate Vision
Corporate Vision An IT Partner that is Close to Your Business Corporate Vision ー － Become professionals who customers can rely on － Refine our area of expertise and create new value, with technologies we can be proud of － Grow through work and feel that we are contributing to society and playing an
Slide 8: Major Customers
Major Customers ●Computer Manufacturers ●TOYOTA Group (Approx. 30% of total sales) Fujitsu Limited Toyota Motor Corporation Hitachi, Ltd. Toyota Systems Corporation IBM Japan, Ltd. Toyota Industries Group Toshiba Digital Solutions Corporation, etc. Toyota Tsusho Group Denso Corp. ●Other End-users ●M
Slide 9: 2. FY3/25 Results
Contents An IT Partner that is Close to Your Business Our mission is to contribute to our customers' business through solutions. We aim to be close to our customers' business. To do that, the most important thing is to have 2. FY3/25 Results a good understanding of our customers. Going forward, we w
Slide 10: Summary of FY3/25 Results (Consolidated)
Summary of FY3/25 Results (Consolidated) (Million yen) Net sales increased by 11.1% year on year, setting a new record. We also achieved record operating profit and ordinary profit. Percentage of net sales (%) Percentage of net sales (%) FY3/24 FY3/25 YoY changes Full year Full year (April 2023 – Ma
Slide 11: FY3/25 Sales by Category
FY3/25 Sales by Category (Million yen) FY3/24 FY3/25 Full year Full year Business Increased orders for Sales fields Changes description contract-based projects Net sales Net sales SI service SI services 9,179 10,480 +14.1% Securing repeat orders SI service Software development 13,133 14,248 +8.4% So
Slide 12: Net Sales (Consolidated)
Net Sales (Consolidated) (Million yen) Record-high sales for the fourth consecutive year 25,931 23,320 (+11.1%) 21,556 (+8.1%) 18,405 (+17.1%) 16,158 (+13.9%) FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 © SYSTEM RESEARCH CO.,LTD. 11
Slide 13: Operating Profit (Consolidated)
Operating Profit (Consolidated) (Million yen) 2,997 2,703 (+10.8%) 2,501 (+8.0%) (+20.3%) 2,078 (+32.6%) 1,567 2021年3月期 FY3/21 2022年3月期 FY3/22 2023年3月期 FY3/23 2024年3月期 FY3/24 2025年3月期 FY3/25 © SYSTEM RESEARCH CO.,LTD. 12
Slide 14: Recruitment (Non-consolidated)
Recruitment (Non-consolidated) New graduate recruitment for the past five years (Persons) 180 160 171 140 120 134 136 100 128 122 80 60 40 20 0 Joined in 2021 2021年入社 Joined in 2022 2022年入社 Joined 2023年入社in 2023 Joined in 2024 2024年入社 Joined in 2025 2025年入社 © SYSTEM RESEARCH CO.,LTD. 13
Slide 15: 3. FY3/26 Forecasts
Contents 3. FY3/26 Forecasts © SYSTEM RESEARCH CO.,LTD. 14
Slide 16: Outlook for the IT Industry
Outlook for the IT Industry Outlook for the Although the economy is recovering moderately, there are Japanese uncertainties due to the U.S. trade policy, among other factors. economy Monthly Economic Report (April 2025), Cabinet Office The annual market size of the IT industry is 17,920.2 billion ye
Slide 17: FY3/26 Basic Policy: Think & Try!!
FY3/26 Basic Policy (46th fiscal year) Think＆Try!! Raise our position in the industry! Performance Target 15×15 2000×2000 © SYSTEM RESEARCH CO.,LTD. 16
Slide 18: FY3/26 Results Forecast (Consolidated)
FY3/26 Results Forecast (Consolidated) (Million yen) FY3/25 FY3/26 [Full year] Results Forecast YoY changes Net sales 25,931 29,314 3,383 +13.0% Operating profit 2,997 3,445 448 +14.9% Ordinary profit 3,066 3,504 438 +14.3% Profit attributable 2,194 2,535 341 +15.5% to owners of parent © SYSTEM RESE
Slide 19: Shareholder Return
Shareholder Return In terms of dividend payouts to shareholders, in order to ensure that our shares are held in a long-term and stable manner, we intend to maintain stable dividends. To increase distributions to shareholders, we are targeting a dividend payout ratio of 40%. FY3/26 FY3/23 FY3/24 FY3/
Slide 20: 2024 Minkabu Award Won
2024 Minkabu Award Won One of 40 companies selected from the 1,641 companies (as of the end of November 2024) listed on the Prime Market of the Tokyo Stock Exchange. We will continue to enhance shareholder returns to meet the expectations of our shareholders and investors. ● What is the Minkabu Awar
Slide 21: 4. Medium-Term Management Plan
Contents 4．Medium-Term Management Plan © SYSTEM RESEARCH CO.,LTD. 20
Slide 22: Medium- and Long-term Targets
Medium- and Long-term Targets Long-term target 100 billion yen Medium-term target 50 billion yen Short-term target 30 billion yen 40th term (FY3/20) 15 billion yen 35th term (FY3/15) 10 billion yen 100 billion yen Sales Profit Employees TSE Prime Tokyo stock exchange, 1st Section © SYSTEM RESEARCH C
Slide 23: Next Vision 50th
Next Vision 50th With Next Vision 50th, we aim to secure continuous profits, enhance corporate value, and create employment opportunities, while taking into account changes in the external environment (economic conditions and technological innovations). Expansion and increased sophistication of core
Slide 24: Medium-Term (3-year) Management Plan
Medium-Term (3-year) Management Plan (Consolidated Net Sales and Consolidated Operating Profit) (Million yen) (Million yen) 40,000 36,776 6,000 32,832 35,000 5,000 29,314 30,000 25,931 23,320 4,000 25,000 4,400 20,000 3,000 3,896 15,000 3,445 2,997 2,000 2,703 10,000 1,000 5,000 0 0 FY3/24 FY3/25 FY
Slide 25: Medium-Term (3-year) Management Plan: Employees
Medium-Term (3-year) Management Plan (Consolidated Employees) 2,200 2,000 1,800 1,656 1,572 2024年04月 April 2024 2025年04月 April 2025 2026年4月 April 2026 2027年4月 April 2027 2028年4月 April 2028 （計画） (Plan) （計画） (Plan) （計画） (Plan) © SYSTEM RESEARCH CO.,LTD. 24
Slide 26: 5. Sustainability
Contents 5. Sustainability © SYSTEM RESEARCH CO.,LTD. 25
Slide 27: Sustainability Initiatives
Sustainability Initiatives Encourage diversity equity and inclusion Health and productivity management initiatives Relationship with the SDGs (focus goals) Relationship with the SDGs (focus goals) Main Initiatives Main Initiatives Promote active participation of diverse individuals Promote diverse w
Slide 28: Results of Initiatives in Numbers
Results of Initiatives in Numbers (as of March 31, 2025) Percentage of female Percentage of female Percentage of employees employees in management employees in continuous taking childcare leave positions employment Female 100% 11.2% 95.2% Male 53% Percentage of male employees taking Target 7.0% Targ
Slide 29: Recognition and Certification (External Evaluation)
Recognition and Certification (External Evaluation) Received certification of Received DX Health & Productivity Certified Business Management Outstanding Operator Organizations 2024 by the Digital Transformation certification 健康経営優良法人 Ministry of Economy, Trade Certification and Industry, Nihon Kenk
Slide 30: 6. Solutions
Contents 6. Solutions © SYSTEM RESEARCH CO.,LTD. 29
Slide 31: SI Service and Software Development
SI Service and Software Development We face up to customer management issues and provide services that satisfy them, using the know-how and advanced technologies that we have cultivated. Automotives Logistics Distribution Telecommunications and control Plant and production line control ICT base Cons
Slide 32: Main Development Achievements in the SI Services (1)
Main Development Achievements in the SI Services (1) A sales information management system for an automobile dealer Client: Major automobile manufacturer Development of a system for managing business negotiations/quotations and receipt and placement of orders and for managing sales support and custo
Slide 33: Main Development Achievements in the SI Services (2)
Main Development Achievements in the SI Services (2) A control and management system for automated warehouses Client: Major logistics & manufacturing company Development of a system that automates the management of processes from receipt to shipping at logistics centers. The system is also equipped
Slide 34: E-commerce Support
Easy My Shop Creator's Mall E-commerce Support QR code ALULU QR Code A shopping promotion site where you can encounter works Online store creation and operation web service instilled with the passions of creators Easy My Shop Creator’s Mall ALULU Easily create an online store the way you want Appr
Slide 35: ilii Products (Business Package for Small and Medium Enterprises)
ilii Products (Business Package for Small and Medium Enterprises) Leveraging know-how accumulated over more than 40 years of experience in business software development, we have introduced software to many customers, from back-office systems such as finance and payroll to front-end systems such as C
Slide 36: Document Solution
Document Solution The Spirit of Revolution Digitizing a large amount of paper-based documents while simultaneously maintaining ease of use in input work! Paperless solutions In-house development by leveraging SR's technological capabilities ✓ Achieves improvements in operations by eliminating the ne
Slide 37: AI Solution
AI Solution The Spirit of Revolution The service launched in December Generative AI-powered advanced document search support service 2024! RPA Search through the company’s internal Ask a question in an online chat information Generative AI answers If a user asks a question in the chat format, genera
Slide 38: 2025 IBM Partner Plus Award Won
2025 IBM Partner Plus Award Won We were given the award for the AI for Business category in Japan in recognition of our development of Digiquery, which contributes to increasing the business efficiency of customers, and joint research initiatives aimed at developing applications in other businesses.
Slide 39: Example of Use of AI Solution
Example of Use of AI Solution The Spirit of Revolution Announcement of a joint release with JI Accident & Fire Insurance Co., Ltd. and IBM Japan, Ltd. in September 2024! An insured person uploads an image AI determines whether or not the Insurance claim payment is made of a damaged suitcase. suitcas
Slide 40: Other Solutions
The Spirit of Revolution Other Solutions Document solutions RPA BI Operations packages Development platform "FLEXSCHE" is a registered trademark of FLEXSCHE Corporation. Other logo marks are registered trademarks of their respective owners. "WinActor®" is a registered trademark of NTT Advanced Techn
Slide 41: 7. References
Contents 7. References © SYSTEM RESEARCH CO.,LTD. 40
Slide 42: Appendix (1) History (Non-consolidated Net Sales)
Appendix (1) History (Non-consolidated Net Sales) (Million yen) 30,000 2025 Dual-listed on the Nagoya Stock Exchange Premier Market 2023 25,000 Merger with General Software, Inc. 2022 Made General Software, Inc. a consolidated subsidiary 20,000 2022 Shifted to the TSE Prime Market 2016 Changed to th
Slide 43: Appendix (2) FY3/25 Top Sales Ranking
Appendix (2) FY3/25 Top Sales Ranking (Million yen) FY3/25 full year Customer Sales Component amounts ratio TOYOTA SYSTEMS CORPORATION (Subsidiary of Toyota Corporation)* 4,641 17.9% SCSK Corporation 1,744 6.7% Toyota Tsusho Group (Subsidiary of Toyota Tsusho Corporation)* 1,481 5.7% Hitachi, Ltd. 1
Slide 44: Appendix (3) Consolidated Statements of Income
Appendix (3) Consolidated Statements of Income FY3/25 (Million yen) Non-consolidated Consolidated Item Amount Percentage Amount Percentage Net sales 25,878 100.0% 25,931 100.0% Cost of sales 19,822 76.6% 19,903 76.7% Gross profit 6,056 23.4% 6,028 23.2% Selling, general and 3,065 11.8% 3,030 11.6% a
Slide 45: Appendix (4) Consolidated Balance Sheets
Appendix (4) Consolidated Balance Sheets FY3/25 (Million yen) Amount Amount Amount Amount Item (Non- Account item (Non- (Consolidated) (Consolidated) consolidated) consolidated) Accounts payable- Cash and deposits 8,125 8,203 1,216 1,063 trade Accounts receivable- Short-term interest- 5,288 5,297 73
Slide 46: Appendix (5) Consolidated Cash Flows
Appendix (5) Consolidated Cash Flows (Million yen) 3000 ◼ Comparison with FY3/24 2,458 2500 2,056 Cash flows from operating activities 2000 Net cash provided by operating activities decreased by 401 million yen year on year, due to increases in 1500 trade receivables and accrued expenses. 1000 500 C
Slide 47: Appendix (6) Medium-Term (3-year) Management Plan
Appendix (6) Medium-Term (3-year) Management Plan (Consolidated) (Million yen) Item FY3/26 (plan) FY3/27 (forecast) FY3/28 (forecast) Net sales 29,314 32,832 36,776 Operating profit 3,445 3,896 4,400 Ordinary profit 3,504 3,952 4,455 Profit 2,535 2,731 3,080 Operation category FY3/26 (plan) FY3/27 (
Slide 48: Contact Information
An IT Partner that is Close to Your Business * Note pertaining to this data: IR information E-mail distribution service • The purpose of these materials is to provide information about the Group's financial results https://rims.tr.mufg.jp/?sn=3771 and business strategies. They are not intended to so