Slide 1: Fiscal Year Ended March 2024 Results Briefing
Fiscal Year Ended March 2024 (FY3/24) Results Briefing SYSTEM RESEARCH CO., LTD. (TSE Prime: 3771 ) © SYSTEM RESEARCH CO.,LTD.
Slide 2: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References Head office building, front entrance (Iwatsukahontori, Nakamura-ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 1
Slide 3: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References Head office building (Iwatsukahontori, Nakamura-Ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 2
Slide 4: Company Profile
Company Profile Established March 1981 Listed stock exchange TSE Prime * Listed on the First Section of the Tokyo Stock Exchange in December 2016 Representative Toshiyuki Yamada, Representative Director and Chairman Hiroshi Hirayama, Representative Director and President Capital 550.15 million yen N
Slide 5: Corporate Vision
Corporate Vision Corporate Vision An IT Partner that is Close to Your Business 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 activ
Slide 6: Branches and Sales Locations
Branches and Sales Locations Number of employees (Consolidated): 1,572 Main Sales Number of employees (Non-consolidated): 1,551 locations network Sowel Co., Ltd.: 21 (As of April 1, 2024) Osaka Branch 212 Tokyo Branch 387 Nagoya Head Office 952 © SYSTEM RESEARCH CO.,LTD. 5
Slide 7: An IT Partner that is Close to Your Business
Contents Company Profile An IT Partner that is Close to Your Business FY3/24 Results Our mission is to contribute to our customers' business through solutions. We aim to be close to our customers' business. FY3/25 Forecasts To do that, the most important thing is to have a good understanding of our
Slide 8: Summary of FY3/24 Results (Consolidated)
Summary of FY3/24 Results (Consolidated) (Million yen) Net sales increased by 8.1% year on year, setting a new record. We also achieved record operating profit and ordinary profit. Percentage of net sales (%) Percentage of net sales (%) FY3/23 FY3/24 YoY changes Full year Full year (April 2022 – Mar
Slide 9: FY3/24 Sales by Category
FY3/24 Sales by Category (Million yen) FY3/23 FY3/24 Business Full year Full year Increased orders for Sales fields Changes description contract-based projects Net sales Net sales SI service SI services 8,220 9,179 +11.6% Securing repeat orders SI service Software development 12,393 13,133 +5.9% Sof
Slide 10: FY3/24 Top Sales Ranking
FY3/24 Top Sales Ranking (Million yen) FY3/24 full year Customer Component Sales amounts ratio TOYOTA SYSTEMS CORPORATION (Subsidiary of Toyota Corporation)* 3,742 16.0% SCSK Corporation 1,603 6.8% Toyota Tsusho Group (Subsidiary of Toyota Tsusho Corporation)* 1,262 5.4% Fujitsu Limited 1,141 4.8% T
Slide 11: Net Sales (Consolidated)
Net Sales (Consolidated) (Million yen) 25,000 Despite a slight decrease in FY3/21 due to the impact of the 23,320 20,000 pandemic, sales recovered in FY3/22. 21,556 (+8.1%) (+17.1%) 18,405 15,000 (+13.9%) 16,250 16,158 (-0.5%) 10,000 5,000 0 2020年３月期 FY3/20 2021年３月期 FY3/21 2022年３月期 FY3/22 2023年３月期 F
Slide 12: Operating Profit (Consolidated)
Operating Profit (Consolidated) (Million yen) 2800 2,800 2,703 2,400 2400 2,501 (+8.0%) 2,000 2000 (+20.3%) 2,078 1,600 1600 (+32.6%) 1,723 1,567 1200 1,200 (-9.0%) 800 400 00 2020年3月期 FY3/20 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 © SYSTEM RESEARCH CO.,LTD. 11
Slide 13: Recruitment (Non-consolidated)
Recruitment (Non-consolidated) New graduate recruitment for the past five years (Persons) 140 134 136 120 128 122 100 101 80 60 40 20 0 Joined in 2020 2020年入社 Joined in 2021 2021年入社 Joined in 2022 2022年入社 Joined in 2023 2023年入社 Joined in 2024 2024年入社 © SYSTEM RESEARCH CO.,LTD. 12
Slide 14: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References © SYSTEM RESEARCH CO.,LTD. 13
Slide 15: Outlook for the IT Industry
Outlook for the IT Industry Outlook for the The Japanese economy will continue to recover, Japanese economy although moderately, in 2024. Economic Outlook for 2024, Daiwa Institute of Research The annual market size of the IT industry is 16,991.9 billion yen (2023). Ministry of Economy, Trade and In
Slide 16: ONE LEVEL UP! ! FY3/25 Basic Policy
FY3/25 Basic Policy (45th fiscal year) ONE LEVEL UP! ! Go up one step from 10% to 15% ⚫ Sales: +10% YoY → +15% YoY ⚫ Operating profit margin: Maintain 10% or higher → 15% or higher ⚫ New graduate recruitment rate: 10% of all employees → around 15% © SYSTEM RESEARCH CO.,LTD. 15
Slide 17: FY3/25 Results Forecast (Consolidated)
FY3/25 Results Forecast (Consolidated) (Million yen) FY3/24 FY3/25 [Full year] Results Forecast YoY changes Net sales 23,320 26,718 3,398 +14.5% Operating profit 2,703 3,084 380 +14.0% Ordinary profit 2,768 3,114 346 +12.4% Profit attributable to 1,969 2,198 229 +11.6% owners of parent © SYSTEM RESE
Slide 18: Shareholder Returns
Shareholder Returns 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%. FY3/25 FY3/22 FY3/23 FY3
Slide 19: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References © SYSTEM RESEARCH CO.,LTD. 18
Slide 20: Medium- and Long-term Targets
Medium- and Long-term Targets Long-term target 100 billion yen Medium-term target 50 billion yen Plan for 46th term (FY3/26) 30 billion yen 40th term (FY3/20) 15 billion yen 35th term (FY3/15) 10 billion yen 100 billion yen Sales Profit 3,000 Employees TSE Prime Tokyo stock exchange, 1st Section © S
Slide 21: Next Vision 50th Five Initiatives
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 22: Medium-Term (3-year) Management Plan
Medium-Term (3-year) Management Plan (Consolidated Net Sales and Consolidated Operating Profit) (Million yen) (Million yen) 33,974 35,000 6,000 30,057 30,000 26,718 5,000 25,000 23,320 21,556 4,000 20,000 3,000 3,921 15,000 3,453 3,084 2,000 10,000 2,703 2,501 1,000 5,000 0 0 FY3/23 FY3/24 FY3/25 FY
Slide 23: Medium-Term (3-year) Management Plan: Employees
Medium-Term (3-year) Management Plan (Consolidated Employees) (Persons) 2400 2,400 2,000 2200 2,200 1,850 2000 2,000 1,700 1800 1,800 1,572 1600 1,600 1,488 1400 1,400 1200 1,200 1,000 1000 800 800 600 600 400 400 200 200 00 April 2023 2023年04月 April 2024 2024年04月 April 2025 2025年4月 April 2026 2026年
Slide 24: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References © SYSTEM RESEARCH CO.,LTD. 23
Slide 25: Sustainability Initiatives
Sustainability Initiatives Encourage diversity 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 working
Slide 26: Results of Initiatives in Numbers
Results of Initiatives in Numbers (as of March 31, 2024) Percentage of female Percentage of female Percentage of employees employees in management employees in continuous taking childcare leave positions employment Female 100% 8.9% 95.5% Male 66% Percentage of male employees taking childcare leave (
Slide 27: DX, Environmental and Information Security Initiatives
ＤＸ, Environmental and Information Security Initiatives DX initiatives Information security initiatives Received iCD Company Received DX Certified Business Certification Gold★★ Operator certification certification Obtained Information Security 16.35 Management System Digital Transformation 80.1 15.36
Slide 28: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References © SYSTEM RESEARCH CO.,LTD. 27
Slide 29: Business Description
Business Description We provide optimal services to customers in a wide range of industries, as an IT partner that is close to customers' businesses. EC Operations packages CRM/CTI SI service RPA AI Consulting Documents ICT BI and data analysis ERP Assessment services Low-code development Automotive
Slide 30: 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 31: Products and Services
Products and Services Rather than simply selling goods, we sell added value and services. We propose total solutions to meet the needs of our customers. © SYSTEM RESEARCH CO.,LTD. 30
Slide 32: 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 A
Slide 33: ilii Solutions
ilii Solutions 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 CTI and mail order. Compatible with the invoice syst
Slide 34: AI Solution / Document Solution
AI Solution The Spirit of Revolution Document Solution Image recognition Paperless solutions RPA Digitalizing large amounts of paper-based documentation AI support for visual product inspection and and input work sorting operations Paperless digitalization System integration High recognition accurac
Slide 35: Other Solutions
The Spirit of Revolution Other Solutions Document solutions RPA BI Operations packages Development platform "FLEXSCHE" is a registered trademark of FLEXSCHE Corporation. "WinActor®" is a registered trademark of NTT Advanced Technology Corporation. © SYSTEM RESEARCH CO.,LTD. 34
Slide 36: Contents
Contents Company Profile FY3/24 Results FY3/25 Forecasts Medium-Term Management Plan Sustainability Solutions References © SYSTEM RESEARCH CO.,LTD. 35
Slide 37: Appendix (1) History (Non-consolidated Net Sales)
Appendix (1) History (Non-consolidated Net Sales) (Million yen) 25,000 2023 Merger with General Software, Inc. 2022 Made General Software, Inc. a 20,000 consolidated subsidiary 2016 2022 Changed to the 2nd Section of the Tokyo Stock Exchange Shifted to the TSE Prime Listed on the 1st Section of the
Slide 38: Appendix (2) Consolidated Statements of Income
Appendix (2) Consolidated Statements of Income FY3/24 (Million yen) Non-consolidated Consolidated Item Amount Percentage Amount Percentage Net sales 23,280 100.0% 23,320 100.0% Cost of sales 17,897 76.8% 17,962 77.0% Gross profit 5,382 23.1% 5,357 22.9% Selling, general and 2,686 11.5% 2,653 11.3% a
Slide 39: Appendix (3) Consolidated Balance Sheets
Appendix (3) Consolidated Balance Sheets FY3/24 (Million yen) Amount Amount Amount Amount Item (Non- Account item (Non- (Consolidated) (Consolidated) consolidated) consolidated) Accounts payable- Cash and deposits 8,259 8,326 1,087 945 trade Accounts receivable- Short-term interest- trade and contra
Slide 40: Appendix (4) Consolidated Cash Flows
Appendix (4) Consolidated Cash Flows (Million yen) 3,000 3000 ◼ Comparison with previous fiscal years 2,458 (full year results) 2,500 2500 2,000 2000 1,796 Cash flows from operating activities Net cash provided by operating activities increased by 661 million yen year on year, due to an increase in
Slide 41: Appendix (5) Medium-Term (3-year) Management Plan
Appendix (5) Medium-Term (3-year) Management Plan (Consolidated) (Million yen) Item FY3/25 (plan) FY3/26 (forecast) FY3/27 (forecast) Net sales 26,718 30,057 33,974 Operating profit 3,084 3,453 3,921 Ordinary profit 3,114 3,480 3,947 Profit 2,198 2,414 2,738 Operation category FY3/25 (plan) FY3/26 (
Slide 42: Appendix (6) Business Activities of Subsidiaries
Appendix (6) 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 indepen
Slide 43: 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 s