Tis Inc. · TSE:3626

Tis — H1 FY2027 Earnings Presentation

45 slides from Tis's earnings presentation, Nov 4, 2026

  1. Slide 1: Presentation Materials for the First Two Quarters of Fiscal Year Ending March 31, 2027

    Presentation Materials for the First Two Quarters (Interim Period) of Fiscal Year Ending March 31, 2027 November 4, 2026 Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese

  2. Slide 2: Highlights

    Highlights Fiscal 2027 First Two Quarters: Financial Highlights • Net sales and income up year on year; results exceeded plan. • Operating margin up 0.1 percentage points year on year to 12.4%. • Orders received and order backlog both showed strong double-digit year-on-year growth. Fiscal 2027: Perf

  3. Slide 3: Contents

    Contents 1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials ˗ All statements described in these materials are based on information available to management regarding the TIS INTEC Gr

  4. Slide 4: Fiscal 2027 First Two Quarters: Financial Highlights

    1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials © 2026 TISI Inc. 4

  5. Slide 5: Performance Highlights (YOY change)

    Fiscal 2027 First Two Quarters: Performance Highlights (YOY change) ⚫ Sales and operating income increased, driven by business expansion through effectively capturing clients’ IT investment demand, including digital transformation needs, and expanding service offerings. Fiscal 2026 Fiscal 2027 [Mill

  6. Slide 6: Performance Highlights (vs. Forecast)

    Fiscal 2027 First Two Quarters: Performance Highlights (vs. Forecast) ⚫ Exceeded forecast, backed by rising IT investment demand from a wide range of clients. Fiscal 2027 Fiscal 2027 [Millions of yen] H1 H1 Vs. Forecast Forecast Actual Net Sales 300,000 307,153 +7,153 [+2.4%] Operating Income 36,500

  7. Slide 7: Analysis of Changes in Operating Income by Factor (YOY change)

    Fiscal 2027 First Two Quarters: Analysis of Changes in Operating Income by Factor (YOY change) ⚫ Achieved higher operating income on sales growth, despite continued growth investment and a ¥2.0 billion year-on-year increase in compensation investment. Gross profit margin: 28.0%. Operating Income [Bi

  8. Slide 8: Sales by Client Sector

    Fiscal 2027 First Two Quarters: Sales by Client Sector ⚫ Overall upward trend in net sales. Finance performed well, led by credit card and banking. In the industrial sector, assembly-based manufacturing grew significantly. Public institutions also remained solid. Net Sales by Client Sector Net Sales

  9. Slide 9: Sales and Income by Key Business Segment (YOY change)

    Fiscal 2027 First Two Quarters: Sales and Income by Key Business Segment (YOY change) Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change Overview H1 H1 Net Sales 76,070 82,584 +6,513 [+8.6%] Net sales increased, driven by expanding IT investment demand in payments, infrastructure and other fields,

  10. Slide 10: Sales and Income by Key Business Segment (Vs. Forecast)

    Fiscal 2027 First Two Quarters: Sales and Income by Key Business Segment (Vs. Forecast) Fiscal 2027 Fiscal 2027 [Millions of yen] H1 H1 Vs. Forecast Overview Forecast Actual Net Sales 78,400 82,584 +4,184 [+5.3%] Net sales exceeded plan, driven by expanding IT investment, mainly in infrastructure an

  11. Slide 11: Reference: Second Quarter Performance Highlights / Segment Sales and Income

    Reference: Fiscal 2027 Second Quarter (Jul-Sep): Performance Highlights / Sales and Income by Key Business Segment Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change Q2 Q2 Net Sales 148,209 157,042 +8,832 [+6.0%] Operating Income 19,200 19,836 +636 [+3.3%] Operating Margin 13.0% 12.6% -0.4P - Net

  12. Slide 12: Reference: Second Quarter Analysis of Changes in Operating Income

    Reference: Fiscal 2027 Second Quarter (Jul-Sep): Analysis of Changes in Operating Income by Factor (YOY change) Operating Income Of which, effect of unprofitable projects was -¥0.23 billion [Billions of yen] [Operating margin] +0.63 +2.53 19.83 [+3.3%] 19.20 -0.17 [12.6%] [13.0%] -1.72 <Changes in S

  13. Slide 13: Order Status (Orders received during first two quarters)

    Fiscal 2027 First Two Quarters: Order Status (Orders received during first two quarters) ⚫ Orders received for the period up 11.0% year on year, led by operation & sales. ⚫ Operation & sales grew sharply in Offering Service Business and Financial IT Business, while operation & sales declined in Indu

  14. Slide 14: Reference: Second Quarter Order Status

    Reference: Fiscal 2027 Second Quarter (Jul-Sep): Order Status Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change Q2 Q2 Orders received 193,917 214,824 +20,906 [+10.8%] Software development 79,571 83,625 +4,053 [+5.1%] Operations and sales 114,345 131,198 +16,853 [+14.7%] Key Business Segments Orde

  15. Slide 15: Order Status (Order backlog at end of second quarter)

    Fiscal 2027 First Two Quarters: Order Status (Order backlog at end of second quarter) ⚫ Order backlog at the end of the period up 13.2% year on year; both software development and operation & sales grew. ⚫ Offering Service Business and Financial IT Business drove the increase. Fiscal 2026 Fiscal 202

  16. Slide 16: Fiscal 2027: Performance Forecast

    1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials © 2026 TISI Inc. 16

  17. Slide 17: Fiscal 2027: Understanding the Business Environment

    Fiscal 2027: Understanding the Business Environment ⚫ While IT investment, supported in part by wider use of AI, continues its long-term expansion trend, changes in the business environment require continued close attention. To date From now Offering ✓ The cashless market continues to expand. The ba

  18. Slide 18: Revisions to Fiscal 2027 Performance Forecast (1)

    Revisions to Fiscal 2027 Performance Forecast (1) ⚫ Revised full-year forecasts upward, reflecting first-half outperformance and an increase in the second-half plan in light of strong orders. Fiscal 2027 Fiscal 2027 [Millions of yen] Vs. initial forecast Initial forecast Revised forecast Net Sales 6

  19. Slide 19: Revisions to Fiscal 2027 Performance Forecast (2)

    Revisions to Fiscal 2027 Performance Forecast (2) Fiscal 2027 Fiscal 2027 [Millions of yen] Vs. Forecast Initial forecast Revised forecast Net Sales 164,100 172,500 +8,400 [+5.1%] Offering Service Operating Income 11,250 11,100 -150 [-1.3%] Business Operating Margin 6.9% 6.4% -0.5P - Net Sales 44,30

  20. Slide 20: Fiscal 2027: Performance Forecasts

    Fiscal 2027: Performance Forecasts ⚫ Higher sales and profits planned through business expansion and continued investment toward achieving the Medium-Term Management Plan targets. ⚫ Net income expected to rise sharply, including an expected ¥5.0 billion extraordinary gain under the investment securi

  21. Slide 21: Analysis of Changes in Operating Income by Factor (Forecast)

    Fiscal 2027: Analysis of Changes in Operating Income by Factor (Forecast) ⚫ Higher operating income expected despite continued growth investment and a planned ¥4.0 billion year-on-year increase in compensation investment. Growth to be driven by higher sales supported by robust IT investment demand,

  22. Slide 22: Sales and Income by Key Business Segment (Forecast)

    Fiscal 2027: Sales and Income by Key Business Segment (Forecast) Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change Overview Actual Revised forecast Net Sales 160,574 172,500 +11,925 [+7.4%] Net sales and operating income are expected to increase, driven by Offering Service capturing IT investment

  23. Slide 23: Return to Shareholders

    1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials © 2026 TISI Inc. 23

  24. Slide 24: Basic Policy on Return to Shareholders

    Basic Policy on Return to Shareholders ⚫ Aim to improve capital efficiency by promoting appropriate capital structure based on balance between promoting growth investment, securing financial soundness, and strengthening return to shareholders. Promote growth investment ⚫ Total growth investment of a

  25. Slide 25: Status/Targets for Return to Shareholders

    Status/Targets for Return to Shareholders ⚫ Reflecting the upward revision of the full-year forecast, the year-end dividend forecast has been raised by ¥2 from the initial plan to ¥47 per share (+¥5 YoY), and the annual dividend forecast is ¥92 per share (+¥12 YoY). ⚫ Treasury stock of approximately

  26. Slide 26: Initiatives for Future Growth

    1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials © 2026 TISI Inc. 26

  27. Slide 27: Medium-Term Management Plan (2024-2026) Overview

    Medium-Term Management Plan (2024-2026) Overview Frontiers 2026 Basic Policy 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

  28. Slide 28: Progress on Key Management Indicators

    Progress on Key Management Indicators ⚫ On track to achieve the Medium-Term Management Plan targets across all indicators, supported by strong business performance. Operating income per person Operating Margin ROIC/ROE [Millions of yen] 3.8 3.5 3.5 17.7% 16.0% 3.1 15.3% 2.9 13.1% 13.1% 14.9% Over 16

  29. Slide 29: Progress on the Medium-Term Management Plan: Fiscal 2026 Overview

    Progress on the Medium-Term Management Plan (2024–2026): Fiscal 2026 Overview ⚫ Steady progress was made in the second year of the Medium-Term Management Plan. Further efforts are needed to address segment-specific market issues and advance strategies in light of industry restructuring and AI-driven

  30. Slide 30: Toward Our Vision through Business Growth

    Toward Our Vision through Business Growth ⚫ Aims to achieve consolidated sales of approximately ¥1 trillion and operating income of over ¥150 billion in fiscal 2033 by strengthening the Group-wide value chain centered on TISI and advancing growth strategies for the AI era. Sales Approx. ¥1 trillion

  31. Slide 31: AI-Embedded Integrated Business and System Model

    Our Group’s initiatives in the AI era ⚫ The integrated model presented in May positions the "core" domain, i.e., the heart, as the foundation for leveraging the brain (AI). ⚫ In the first half, in line with this model, we built up concrete projects and services in the brain and skeleton domains, cen

  32. Slide 32: PAYCIERGE Next-Generation Payment Platform Strategy

    PAYCIERGE Next-Generation Payment Platform Strategy ⚫ Evolving PAYCIERGE through payment-specific Vertical AI and next-generation payment technologies, with the aim of expanding the recurring-revenue business. <Overview of the PAYCIERGE Next-Generation Payment Platform> Sources of Strength [For Paym

  33. Slide 33: Participation in a Proof of Concept for Joint Issuance of Stablecoins

    Participation in a Proof of Concept for the Joint Issuance of Stablecoins by Multiple Banks and Related Initiatives ⚫ Selected to provide the platform and technical support for a PoC on joint stablecoin issuance and enhanced cross-border payments by the three megabanks and others, based on financial

  34. Slide 34: Strategy for Applying AI to Engineering Processes

    Strategy for Applying AI to Engineering Processes: Beyond "AI-Driven Development" ⚫ AI application is progressing as planned, with rollout to all projects targeted in fiscal 2027. ⚫ AI agent development to further enhance AI benefits is also on track for completion in fiscal 2027. ⚫ Exploring the us

  35. Slide 35: Business Model to Accelerate the Group's Growth

    Business Model to Accelerate the Group's Growth ⚫ Connecting vertical (industry) and horizontal (function) capabilities to create a virtuous cycle of innovation, expansion, and deeper client engagement. Expanding from individual client touchpoints to broader client coverage and strengthening the Gro

  36. Slide 36: Vertical × Horizontal Business Model for Group-Wide Growth

    Vertical × Horizontal Business Model for Group-Wide Growth: Overview ⚫ Delivering services that support clients throughout their transformation (core systems → operations → business) by leveraging the Group's strengths in Industry × Function. Financial Industrial Public / Social Infrastructure Banks

  37. Slide 37: Change of Representative Director (President)

    Change of Representative Director (President) ⚫ Decided to change the President to further drive the Group's sustainable growth and enhance corporate value through steady execution of the next Medium-Term Management Plan starting April 1, 2027, under a new management structure ■ New Representative D

  38. Slide 38: Seeking Further Improvement in Corporate Value

    Seeking Further Improvement in Corporate Value April 2008 July 2016 March 2023 July 2026 IT Holdings Corporation (ITHD) established Transition to TIS INTEC Group, with an Turned Nihon ICS Co., Ltd., into TISI Inc. to be established through the merger through management integration operating holding

  39. Slide 39: Reference Materials

    1 Fiscal 2027 First Two Quarters: Financial Highlights 2 Fiscal 2027: Performance Forecast 3 Return to Shareholders 4 Initiatives for Future Growth 5 Reference Materials © 2026 TISI Inc. 39

  40. Slide 40: Reference: Sales by Key Business Segment and Operating Activity

    Reference: Fiscal 2027 First Two Quarters: Sales by Key Business Segment and Operating Activity *For external clients Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change H1 H1 Offering Service Business 68,942 73,874 +4,931 [+7.2%] Software development 27,957 29,683 +1,726 [+6.2%] Operating/cloud se

  41. Slide 41: Reference: Second Quarter Sales by Segment and Operating Activity

    Reference: Fiscal 2027 Second Quarter (Jul-Sep): Sales by Key Business Segment and Operating Activity *For external clients Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change Q2 Q2 Offering Service Business 36,201 38,103 +1,902 [+5.3%] Software development 14,588 15,369 +781 [+5.4%] Operating/clou

  42. Slide 42: Fiscal 2027 Second Half: Sales and Income by Segment (Forecast)

    Fiscal 2027 Second Half: Sales and Income by Key Business Segment (Forecast) Fiscal 2026 Fiscal 2027 [Millions of yen] YOY change H2 H2 Net Sales 307,953 327,846 +19,892 [+6.5%] Operating Income 40,675 44,815 +4,140 [+10.2%] Operating Margin 13.2% 13.7% +0.5P - Net Income Attributable to 22,897 30,5

  43. Slide 43: Business Model by Segment

    Business Model by Segment [Supplement] Business Composition of Offering Service Businesses Offering Service Business Others Definition Payment services Configures services through own investment based Global services* on best practices accumulated groupwide and Enterprise(digital provides knowledge-

  44. Slide 44: Strategic Domains, Desired Status

    Strategic Domains, Desired Status ⚫ We partially revised strategic domains, based on long-term business direction, with the aim of developing business pursuits hinging on social issue resolution and co-creation and commercializing services that go beyond IT alone. Redefined Strategic Domains under G

  45. Slide 45: Make society's wishes come true through IT.

    Make society’s wishes come true through IT. $ TIS INTEC Group

Tis — H1 FY2027 Earnings Presentation on 6ix