Slide 1: Fiscal Year Ended March 2026 (FY3/26) Results Briefing
Fiscal Year Ended March 2026 (FY3/26) Results Briefing SYSTEM RESEARCH CO., LTD. (TSE Prime/NSE Premier: 3771 ) © SYSTEM RESEARCH CO.,LTD.
Slide 2: Contents
Contents 01. Company Profile 02. FY3/26 Results 03. FY3/27 Forecasts and Medium- Term Management Plan 04. Sustainability 05. Solutions 06. Shareholder Return 07. References Head office building, front entrance (Iwatsukahontori, Nakamura-ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 1
Slide 3: 01. Company Profile
会社概要 01. Company Profile Head office building (Iwatsukahontori, Nakamura-ku, Nagoya) © SYSTEM RESEARCH CO.,LTD. 2
Slide 4: Company Profile
Company Profile Established March 1981 TSE Prime / NSE Premier Listed stock exchange * Listed on the First Section of the Tokyo Stock Exchange in December 2016 Duplicate listing of the Nagoya Stock Exchange in March 2025 Representative Hiroshi Hirayama, Representative Director and President Capital
Slide 5: Branches and Sales Locations
Branches and Sales Locations Number of employees (Consolidated): 1,757 Sapporo Number of employees (Non-consolidated): 1,736 Sowel Co., Ltd.: 21 (As of April 1, 2026) Osaka Branch Nagoya Head Office 238 1,075 Sendai Tokyo Branch Fukuoka 423 Main locations Sales network © 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 support for independence and opportunities to experience the joy of living for peo
Slide 7: Corporate Vision: An IT Partner that is Close to Your Business
Corporate Vision An IT Partner that is Close to Your Business Corporate Vision ー Become professionals who customers can rely on ー Refine our area of expertise and create new value, with technologies we can be proud of ー Grow through work and feel that we are contributing to society and playing an ac
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., etc. Major SIers Oth
Slide 9: 02. FY3/26 Results
02. FY3/26 Results © SYSTEM RESEARCH CO.,LTD. 8
Slide 10: Summary of FY3/26 Results (Consolidated)
Summary of FY3/26 Results (Consolidated) (Million yen) Net sales increased by 12.1% year on year, setting a new record. We also achieved record operating profit and ordinary profit. Percentage of net sales (%) Percentage of net sales (%) FY3/25 Full year FY3/26 Full year YoY changes (April 2024 – Ma
Slide 11: FY3/26 Sales by Category
FY3/26 Sales by Category (Million yen) FY3/25 FY3/26 Business Sales fields Changes description Net sales Net sales Increased orders SI service SI services 10,480 10,890 +3.9% for contract-based projects Software Securing repeat SI service development 14,248 16,603 +16.5% orders Software Decreased sa
Slide 12: Net Sales (Consolidated)
Net Sales (Consolidated) (Million yen) 29,083 (+12.1%) 25,931 (+11.1%) 23,320 21,556 (+8.1%) (+17.1%) 18,405 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 © SYSTEM RESEARCH CO.,LTD. 11
Slide 13: Operating Profit (Consolidated)
Operating Profit (Consolidated) (Million yen) 3,470 (+15.7%) 2,997 (+10.8%) 2,703 (+8.0%) 2,501 (+20.3%) 2,078 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 © SYSTEM RESEARCH CO.,LTD. 12
Slide 14: Recruitment (Non-consolidated)
Recruitment (Non-consolidated) (Persons) New graduate recruitment for the past five years 196 171 136 128 122 Joined in 2022 Joined in 2023 Joined in 2024 Joined in 2025 Joined in 2026 © SYSTEM RESEARCH CO.,LTD. 13
Slide 15: 03. FY3/27 Forecasts and Medium-Term Management Plan
03. FY3/27 Forecasts and Medium-Term Management Plan © SYSTEM RESEARCH CO.,LTD. 14
Slide 16: Outlook and Future Issues of the Industry
Outlook and Future Issues of the Industry Outlook (changes in the business environment) Demand for modernization of Rise of generative AI Engineer shortage legacy systems - Legacy systems still remain at 74% of - In 2030, shortage of up to 790,000 IT - Automation and streamlining of major companies.
Slide 17: FY3/27 Results Forecast (Consolidated)
FY3/27 Results Forecast (Consolidated) (Million yen) FY3/26 FY3/27 [Full year] YoY changes Results Forecast Net sales 29,083 32,276 3,192 +10.9% Operating profit 3,470 3,850 380 +10.9% Ordinary profit 3,551 3,907 355 +10.0% Profit attributable to 2,610 2,836 225 +8.6% owners of parent © SYSTEM RESEA
Slide 18: Cash Allocation
Cash Allocation ● Our stance on an appropriate level of cash and deposits We have secured approximately ¥7.0 billion in terms of the appropriate level of capital for the purpose of maintaining the employment of engineers, who solidify the foundation of our business. 171 Appropriate level of funds ●
Slide 19: Medium-Term (3-year) Management Plan (Net Sales and Operating Profit)
Medium-Term (3-year) Management Plan (Consolidated Net Sales and Consolidated Operating Profit) (Million yen) ■Net 売上高 sales■ 営業利益 Operating profit 40,488 36,150 32,276 29,083 4,972 25,931 4,374 3,850 3,470 2,997 FY3/25 FY3/26 FY3/27 FY3/28 FY3/29 (Plan) (Forecast) (Forecast) © SYSTEM RESEARCH CO.,L
Slide 20: Medium-Term (3-year) Management Plan (Employees)
Medium-Term (3-year) Management Plan (Consolidated Employees) (Persons) 2,000 1,900 1,800 1,757 1,572 April 2025 April 2026 April 2027 April 2028 April 2029 (Plan) (Forecast) (Forecast) © SYSTEM RESEARCH CO.,LTD. 19
Slide 21: Medium- and Long-term Targets
Medium- and Long-term Targets We’ll go for the goal. Long-term target The 2nd stage ¥ 100 billion The 1st stage Medium-term target Short-term target ¥50 billion FY2020 ¥30 billion ¥15 billion FY2015 ¥10 billion Sales ¥ 100 billion Profit 20 % Employees 3,000 Performance Target TSE Prime Tokyo stock
Slide 22: 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 System Research sophis
Slide 23: Next Vision 50th
Next Vision 50th © SYSTEM RESEARCH CO.,LTD. 22
Slide 24: Next Vision 50th
Next Vision 50th © SYSTEM RESEARCH CO.,LTD. 23
Slide 25: Next Vision 50th
Next Vision 50th © SYSTEM RESEARCH CO.,LTD. 24
Slide 26: Next Vision 50th
Next Vision 50th © SYSTEM RESEARCH CO.,LTD. 25
Slide 27: Next Vision 50th
Next Vision 50th © SYSTEM RESEARCH CO.,LTD. 26
Slide 28: Current status of generative AI and its utilization
Current status of generative AI and its utilization Current status of generative AI Areas Applicable operations Operations where generative AI easily produces the desired Sorting out and summarizing information, language processing, document generation, results cross-searching of multiple sources, p
Slide 29: 04. Sustainability
04. Sustainability © SYSTEM RESEARCH CO.,LTD. 28
Slide 30: Sustainability Initiatives
Sustainability Initiatives Health and productivity management Encourage diversity equity and inclusion initiatives ■ Relationship with the SDGs (focus goals) ■ Relationship with the SDGs (focus goals) ■ Main Initiatives ■ Main Initiatives • Promote active participation of diverse individuals (women,
Slide 31: Results of Initiatives in Numbers
Results of Initiatives in Numbers (as of March 31, 2026) Percentage of female Percentage of female Percentage of employees employees in management employees in continuous taking childcare leave positions employment Female Male 12.3％ 99.9％ 100％ 70％ Percentage of male employees Target 7.0% Target 80.0
Slide 32: Recognition and Certification (External Evaluation)
Recognition and Certification (External Evaluation) Received DX Certified Business Received certification of Health & Received iCD Company Certification Operator certification Productivity Management Outstanding Gold★★★ certification Organizations 2025 by the Ministry of Economy, Trade and Industry,
Slide 33: 05. Solutions
05. Solutions © SYSTEM RESEARCH CO.,LTD. 32
Slide 34: 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 Plant and production Consulting and control line control Lo
Slide 35: Main Development Achievements in the SI Services (1)
Main Development Achievements in the SI Services (1) 01 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 cu
Slide 36: Main Development Achievements in the SI Services (2)
Main Development Achievements in the SI Services (2) 03 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 equipp
Slide 37: Main Development Achievements in the SI Services (3)
Main Development Achievements in the SI Services (3) 05 IT operations analysis and consulting Client: Major medical product supplier Support for the reinforcement of the client’s structure and sales measures provided through IT operations analysis and consulting as well as introduction of CTI and th
Slide 38: Main Development Achievements in the SI Services (4)
Main Development Achievements in the SI Services (4) 07 ERP system of a trading company Client: Major trading company Introduction, development, and version upgrade tasks for an SAP system for sales, purchasing, and accounting operation domains. The system was also introduced to subsidiaries. Low-co
Slide 39: E-commerce Support
E-commerce Support A shopping promotion site where you can encounter Online store creation and operation web service works instilled with the passions of creators Easy My Shop Creator’s Mall ALULU Easy My Shop Creator's Mall ALULU QR Code QR code Easily create an online store the way you want Bu
Slide 40: 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 41: AI Solution (1): AI assistant PathBee
AI Solution (1) AI assistant PathBee From research to dialogue AI as a window to knowledge What is the AI assistant PathBee? PathBee is an AI chatbot service that automates responses to inquiries from inside and outside a company. With a combination of RAG technology and generative AI, PathBee looks
Slide 42: AI Solution (2)
AIofSolution The Spirit Revolution (2) The service launched in RPA December 2024! Generative AI-powered advanced document search support service Ask a question in an Search through the company’s Generative AI online chat internal information answers If a user asks a question in the chat format, gene
Slide 43: AI Solution (3)
AI Solution (3) Announcement of a joint release with JI Accident & Fire Insurance Co., Ltd. and IBM Japan, Ltd. in September 2024! An insured person uploads an AI determines whether or not the Insurance claim payment is image of a damaged suitcase. suitcase has been damaged. made automatically. Cust
Slide 44: Other Solutions
Other Solutions Other Solutions RPA Development platform Power Platform ERP BI CRM AI Infrastructure Operations packages *Company names, product and service names and logo marks are trade names, trademarks or registered trademarks of their respective owners. © SYSTEM RESEARCH CO.,LTD. 43
Slide 45: 06. Shareholder Return
06. Shareholder Return © SYSTEM RESEARCH CO.,LTD. 44
Slide 46: 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%. FY3/27 FY3/24 FY3/25 FY3/
Slide 47: Stock Chart
Stock Chart 2,500 (Yen) March 2026 ROE (Return on equity) 20.6% March 2026 PBR (Price book-value ratio) 2.0 times 2,000 March 2026 PER (Price-earnings ratio) 10.9 times 1,500 1,000 500 0 June June June June June June June June June June June June June June June June June June June June June 2005 200
Slide 48: 07. References
07. References © SYSTEM RESEARCH CO.,LTD. 47
Slide 49: Appendix (1) History (Non-consolidated Net Sales)
Appendix (1) History (Non-consolidated Net Sales) 2014 2022 1981 1989 2006 Merger with ILII Made General Software, Inc. Established Established Tokyo Branch Made ILII Corporation a Corporation a consolidated subsidiary consolidated subsidiary 1987 2023 Established 2012 Established Sowel Co., Ltd. Me
Slide 50: Appendix (2) FY3/26 Top Sales Ranking
Appendix (2) FY3/26 Top Sales Ranking (Million yen) Customer FY3/26 full year Sales Componen amounts t ratio TOYOTA SYSTEMS CORPORATION (Subsidiary of Toyota Corporation)* 5,661 19.4% SCSK Corporation 1,895 6.5% Toyota Tsusho Group (Subsidiary of Toyota Tsusho Corporation)* 1,792 6.1% Toyota Industr
Slide 51: Appendix (2) Consolidated Statements of Income
Appendix (2) Consolidated Statements of Income (Million yen) FY3/26 Non-consolidated Consolidated Item Amount Percentage Amount Percentage Net sales 29,024 100.0% 29,083 100.0% Cost of sales 22,239 76.6% 22,319 76.7% Gross profit 6,785 23.3% 6,763 23.2% Selling, general and 3,325 11.4% 3,293 11.3% a
Slide 52: Appendix (3) Consolidated Balance Sheets
Appendix (3) Consolidated Balance Sheets (Million yen) FY3/26 Amount Amount Amount Amount Item (Non- Account item (Non- (Consolidated) (Consolidated) consolidated) consolidated) Accounts payable- Cash and deposits 8,338 8,429 1,483 1,483 trade Accounts receivable- Short-term interest- trade and cont
Slide 53: Appendix (4) Consolidated Cash Flows
Appendix (4) Consolidated Cash Flows (Million yen) 3000 ■Comparison with FY3/25 2,502 2500 Cash flows from operating activities 2,056 2000 Net cash provided by operating activities increased by 445 million yen year on year, due to 1500 an increase in profit before income taxes. 1000 Cash flows from
Slide 54: Appendix (5) Medium-Term (3-year) Management Plan (Consolidated)
Appendix (5) Medium-Term (3-year) Management Plan (Consolidated) (Million yen) Item FY3/27 (plan) FY3/28 (forecast) FY3/29 (forecast) Net sales 32,276 36,150 40,488 Operating profit 3,850 4,374 4,972 Ordinary profit 3,907 4,430 5,029 Profit 2,836 3,022 3,432 Operation category FY3/27 (plan) FY3/28 (
Slide 55: An IT Partner that is Close to Your Business
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 https://rims.tr.mufg.jp/?sn=3771 results and business strategies. They are not intended to soli