Copyright 2020 NSD CO., LTD.
January 31, 2020
Presentation of Financial Results for the Third Three Months of
the Fiscal Year Ending March 31, 2020
Copyright 2020
Index
1
Page■Financial Results for the Third Three Months of the Fiscal Year Ending March 31, 2020
Summary of Financial Results 2
Net Sales and Gross Profit by Business 3
System Development Business - Net Sales by End-user Sector 5
System Development Business - Net Sales by End-user Sector (Financial Sector) 7
System Development Business - Trends of Order Value / Net Sales / Order Backlog 9
System Service Business / System Product Business – Breakdown of Net Sales 10
Assets, Liabilities, and Net Assets 11
■Reference
1 : Trends of Financial Results 12
2 : Summary of Medium-Term Management Plan 13
3 : Efforts in the Field of Advanced Technology 15
4 : Return to Shareholders 16
5 : Major Press Releases 17※ Amounts less than the display unit are rounded down.
Percentage figures are rounded off.
Copyright 2020
Summary of Financial Results
2
■Net SalesNet Sales increased by ¥2.9 billion (+6.4%) year on year to ¥48.7 billion mainly due to steady progresses in System Development Business, reflecting a favorable business environment.
■Operating Income・Ordinary Income・Net IncomeOperating Income and Ordinary Income increased by ¥0.7 billion (+12.3%) and ¥0.6 billion (+10.3%) yearonyear respectively, due to an increase in Net Sales and reduction of SG & A Expenses.Net Income increased by ¥0.3 billion yen (+8.1%) year on year to ¥4.5 billion due to recording expenses of50th anniversary events to extraordinary losses, and gain/losses concerning sales of real estates.
※ Income and expenses related to real estate services are recorded in Non-Operating Income and Non-Operating Expenses because Real Estate Service Business segment is abolished from FY ending 2020/3 (Previously recorded in Net Sales, Cost of Sales, or SG & A Expenses).The results of 2019/3 3Q are restated based on the changed segments.
(Unit : Millions of yen)
2019/3 3Q 2020/3 ※The ratios on the upper-left corners are percentage to Net Sales. Results Results YoY YoY(%)
Estimate ofFull Year
(Released 2019/5/8)
Net Sales 45,799 48,720 2,920 6.4% 65,500(20.9%) (21.1%) (0.2%) (21.5%)
9,584 10,297 712 7.4% 14,100(7.3%) (6.8%) (△0.6%) (7.3%)
3,364 3,310 △54 △1.6% 4,800(13.6%) (14.3%) (0.8%) (14.2%)
6,220 6,987 766 12.3% 9,300Ordinary Income 6,414 7,078 663 10.3% 9,400Income beforeIncome Taxes 6,409 6,562 152 2.4% 9,050
(9.2%) (9.3%) (0.1%) (9.3%)4,201 4,540 339 8.1% 6,100
Operating Income
Net Income Attributableto Owners of the Parent
2020/3 3Q
Gross Profit
SG & A Expenses
Copyright 2020 3
■Net Sales ■Gross Profit
Net Sales and Gross Profit by Business
(Unit : Millions of yen) (Unit : Millions of yen)
■Net SalesNet Sales increased by ¥2.9 billion (+6.4%) year on year to ¥48.7 billion due to an increase in Net Sales of all of the Businesses; System Development Business, System Service Business, and System Product Business.
■Gross ProfitGross Profit increased by ¥0.7 billion (+7.4%) year on year to ¥10.2 billion due to an increase in Net Sales and animprovement of profit rate.
System Development Business: Net Sales and Gross Profits increased due to a high level of volume of orders from financial sector and a significant increase in orders from manufacturing sector andtransportation sector.
System Service Business : Net Sales and Gross Profits increased due to an increase in orders of service businessesrelated to shareholder relations and human resources.
System Product Business : Net Sales and Gross Profit increased due to steady sales of security related products and an increase in sales of human resource related products.
45,799
+2,287+334
+298 48,720
2019/3 3Q 2020/3 3Q
SystemDevelopment
System Service
System Product
+2,920
■YoY Increase ■YoY Decrease
9,584
+527+85
+99 10,297
2019/3 3Q 2020/3 3Q
+712
System Development
System Service
System Product
Copyright 2020
Net Sales and Gross Profit by Business
4
※ The businesses covered by each segment are changed from FY ending 2020/3 (Changed “IT Infrastructure Building” from System Service Business to System Development Business). The results of 2019/3 3Q are restated based on the changed business segments.
(Unit : Millions of yen)
■Net SalesResults Results YoY YoY(%)
(89.4%) (88.8%)40,964 43,252 2,287 5.6%
(0.9%) (2.2%)406 1,074 667 164.0%
(6.6%) (6.8%)3,002 3,337 334 11.1%
(4.0%) (4.4%)1,832 2,130 298 16.3%
45,799 48,720 2,920 6.4%(11.4%) (13.4%)
5,242 6,542 1,300 24.8%
■Gross ProfitResults Results YoY YoY(%)
(21.1%) (21.2%) (0.1%)8,624 9,152 527 6.1%
(25.7%) (26.9%) (1.2%)104 288 184 176.0%
(14.6%) (15.7%) (1.1%)437 523 85 19.6%
(28.5%) (29.2%) (0.7%)522 622 99 19.0%
(20.9%) (21.1%) (0.2%)9,584 10,297 712 7.4%
(20.3%) (21.9%) (1.6%)1,064 1,433 368 34.6%
New Core Business (marked *)
2019/3 3Q 2020/3 3Q※ The ratio on the upper-left comers are compositionratio to sales.
System Development Business
New technology *
System Service Business *
System Product Business *
Total
New Core Business (marked *)
2019/3 3Q 2020/3 3Q※ The ratios on the upper-left corners are Gross Profitmargin.
System Development Business
New technology *
System Service Business *
System Product Business *
Total
Copyright 2020 5
System Development Business - Net Sales by End-user Sector
■Net SalesNet Sales increased by ¥2.2 billion (+5.6%) year on year to ¥43.2 billion, as orders from financial sector kept a high level of orders and orders from manufacturing and transportation sectors increased significantly, while public sectors decreased.
Financial sector increased due to an increase in orders from major banks of measures to improve business efficiency and from insurance companies of system reconstructions.
Manufacturing sector increased mainly due to an increase in orders from electric and machine makers.Transportation sector increased mainly due to an increase in orders from airline and logistics companies.
15,825
Finance16,339
6,984
Service7,037
4,780
Manufacturing
5,321
3,746
Telecommunication3,721
2,989
Transportation3,792
1,893
Commerce2,232
2,614
Public2,342
2019/33Q
2020/33Q
Finance Service ManufacturingTelecommunication Transportation CommercePublic Electricity & Gas ConstructionOthers
2020/3 3Q
2019/3 3Q
(Unit : Millions of yen)
40,964
+514 +52
+540 △25
+803
+339 △272 +278 +65 △9 43,252
2019/33Q
2020/33Q
Manufacturing
Commerce Electricity & GasPublic
Others
+2,287
(Unit : Millions of yen)
Transportation
Finance
Telecommunication
2020/3 3Q2019/3 3Q
Service
Construction
■YoY Increase ■YoY Decrease
Copyright 2020 6
System Development Business - Net Sales by End-user Sector
※ The results of System Development Business are written (Previously the total of System Development Business and System Service Business).
(Unit : Millions of yen)
Results CompositionRatio(%) Results Composition
Ratio(%) YoY YoY(%)
Finance 15,825 38.6% 16,339 37.8% 514 3.2%
Service 6,984 17.0% 7,037 16.3% 52 0.8%
Manufacturing 4,780 11.7% 5,321 12.3% 540 11.3%
Telecommunication 3,746 9.1% 3,721 8.6% △25 △0.7%
Transportation 2,989 7.3% 3,792 8.8% 803 26.9%
Commerce 1,893 4.6% 2,232 5.1% 339 17.9%
Public 2,614 6.4% 2,342 5.4% △272 △10.4%
Electricity & Gas 1,099 2.7% 1,378 3.2% 278 25.3%
Construction 886 2.2% 951 2.2% 65 7.4%
Others 143 0.4% 134 0.3% △9 △6.6%
Total 40,964 100.0% 43,252 100.0% 2,287 5.6%
2019/3 3Q 2020/3 3Q
Copyright 2020 7
System Development Business - Net Sales by End-user Sector (Financial Sector)
■Net Sales (Financial Sector)Net Sales increased by ¥0.5 billion (+3.2%) year on year to ¥16.3 billion, due to an increase in major banks and insurance companies, while there was a decrease in other banks and credit card companies.
Major Banks:Net Sales increased due to an increase in orders for RPA and system renewal projects, and increased orders from existing projects.
Other Banks:Net Sales decreased due to an end of projects and large reductions of orders from existing projects.
Insurance Companies:Net Sales increased due to continuing orders of large projects on system reconstruction and additionalorders from existing customers.
Credit Card Companies:Net Sales decreased due to an end of projects and replanning of projects.
15,825
+619 △220
+377 +5 △295
+27 16,339
2019/33Q
2020/33Q
Major Banks
Other Banks Insurance Companies
SecuritiesCompanies
Credit CardCompanies
Others
+514
(Unit : Millions of yen)
2020/3 3Q2019/3 3Q
■YoY Increase ■YoY Decrease
5,577
Major Banks6,197
2,122
OtherBanks1,901
5,663
Insurance Conpanies
6,041
992
Securities Companies
998
1,127
Credit Card Companies
831
341
Others369
2019/33Q
2020/33Q
2020/3 3Q
2019/3 3Q
(Unit : Millions of yen)
Copyright 2020 8
System Development Business - Net Sales by End-user Sector (Financial Sector)
※ The results of System Development Business are written (Previously the total of System Development Business and System Service Business).※ The results of 2019/3 3Q are reclassified because the business segments of some companies were revised.
(Unit : Millions of yen)
Results CompositionRatio(%)
Results CompositionRatio(%)
YoY YoY(%)
Major Banks 5,577 35.2% 6,197 37.9% 619 11.1%
Other Banks 2,122 13.4% 1,901 11.6% △ 220 △10.4%
InsuranceCompanies 5,663 35.8% 6,041 37.0% 377 6.7%
SecuritiesCompanies 992 6.3% 998 6.1% 5 0.6%
Credit CardCompanies 1,127 7.1% 831 5.1% △295 △26.2%
Others 341 2.2% 369 2.3% 27 8.1%
Total 15,825 100.0% 16,339 100.0% 514 3.2%
2019/3 3Q 2020/3 3Q
Copyright 2020
System Development Business - Trends of Order Value / Net Sales / Order Backlog
9
※ The results of System Development Business are written (Previously the total of System Development Business and System Service Business).
(Unit : Millions of yen)OrderValue YoY(%) Net Sales YoY(%) Order
Backlog YoY(%)
1Q 14,825 ー 13,220 3.4% 12,776 ー
2Q 14,430 ー 13,699 5.0% 13,508 ー
1st-half 29,256 ー 26,920 4.2% 13,508 ー
3Q 12,201 ー 14,044 6.9% 11,665 ー
4Q 14,702 ー 14,152 7.8% 12,214 ー
Full-year 56,159 ー 55,117 5.8% 12,214 9.3%
1Q 16,703 12.7% 13,948 5.5% 14,969 17.2%
2Q 13,965 △3.2% 14,532 6.1% 14,402 6.6%
1st-half 30,668 4.8% 28,481 5.8% 14,402 6.6%
3Q 12,302 0.8% 14,770 5.2% 11,933 2.3%
2019/3
2020/3
Copyright 2020 10
System Service Business / System Product Business – Breakdown of Net Sales
※ Human Resource Solutions : Solutions from new graduates/mid-career recruitment management to temporary staff management, for general companies and human resource service companies
※ Logistics Solutions : Solutions dealing with storage and retrieval processing, stock management, billing processing, etc. for warehousing business companies
※ Shareholder Relation Services: Out-sourcing services of shareholder benefit program, from planning of program, data management, and ordering & shipping of products, to responding to shareholders’ inquiries
※ Security Products : Managing evidences of sending and receiving files, preventing wrong transmissions of mails, managing digital certificates, targeted attack measures, etc.
■2020/3 3Q (Unit : Millions of yen)
SystemService
SystemProduct
Results Results Results CompositionRatio(%)
Human ResourceSolutions 1,183 91 1,275 23.3%
Logistics Solutions 375 199 575 10.5%
Shareholder RelationServices 1,176 - 1,176 21.5%
Security Products 123 690 814 14.9%
Others 478 1,148 1,627 29.8%
Total 3,337 2,130 5,468 100.0%
Total
Human Resource Solutions23.3%
Logistics Solutions10.5%
Shareholder Relation Services
21.5%
Security Products14.9%
Others29.8%
Copyright 2020
Assets, Liabilities, and Net Assets
11
(※1) Following the abolishment of Real Estate Service Business segment from FY ending 2020/3, real estates¥7.2 billion are reclassified from “Property, Plant and Equipment” to “Investments and Other Assets”.
(※2) Held real estate ¥5.2 billion was sold in FY ending 2020/3.
(Unit : Millions of yen)
(※1)
35,819 1,698 37,518Cash and Deposits 22,817 1,784 24,602
Non-Current Assets 20,058 △4,631 15,426Property, Plant and Equipment 8,227 △7,294 △41 892Intangible Assets 2,372 25 2,398Investments and Other Assets 9,458 7,294 △4,616 12,136
55,878 - △2,933 52,944Current Liabilities 7,701 184 7,886Non-Current Liabilities 830 122 953
8,532 - 307 8,83948,589 △4,578 44,010
Capital Stock 7,205 7,205Capital Surplus 6,791 6,791Retained Earnings 43,563 △1,952 41,610Treasury Shares △8,971 △2,626 △11,597
△1,690 1,259 △431446 78 525
47,345 - △3,241 44,104
2019/3 Increase/DecreaseDuring the Period 2019/12
ReclassificationFollowing Segment
Change
Current Assets
Total Assets
Total Liabilities
Total Net Assets
Shareholders' Equity
Accumulated Other Comprehensive Income
Non-Controlling Interests
(※2)
Copyright 2020 12
Reference1 : Trends of Financial Results
※1 The rates on the upper-left comers are percentage to Net Sales.※2 Real Estate Service Business segment is abolished from FY ending 2020/3 and the results of the past financial years are restated based on the changed segments.※3 While a stock split of ratio 1:2 was implemented on the record date of December 31, 2019, numbers on the table are restated based on the number of stocks
posterior to the stock split.※4 Numbers inside the brackets are DPS or dividend payout ratio including commemorative dividends.
(Unit : Millions of yen)2015/3 2016/3 2017/3
Results Results Results Results Results YoY YoY(%) Estimates YoY YoY(%)
Net Sales 42,680 51,219 54,858 57,704 61,573 3,868 6.7% 65,500 3,926 6.4%
(21.4%) (21.1%) (20.7%) (20.4%) (21.1%) (21.5%)9,132 10,826 11,334 11,769 12,986 1,216 10.3% 14,100 1,113 8.6%
(9.5%) (8.8%) (7.8%) (6.9%) (7.3%) (7.3%)4,050 4,514 4,280 3,970 4,493 523 13.2% 4,800 306 6.8%
(11.9%) (12.3%) (12.9%) (13.5%) (13.8%) (14.2%)5,082 6,312 7,054 7,799 8,492 693 8.9% 9,300 807 9.5%
Ordinary Income 5,283 6,405 7,300 8,119 8,756 636 7.8% 9,400 643 7.4%
(7.0%) (6.1%) (8.3%) (9.3%) (9.4%) (9.3%)2,973 3,110 4,543 5,368 5,817 448 8.3% 6,100 282 4.9%
Net Income perShare(yen)
36.02 35.49 52.90 63.38 69.65 6.27 9.9% 75.57 5.92 8.5%
16.5 18.5 22 26 30 ー ー 32 ー ー(39) (46)
45.8% 52.1% 41.6% 41.0% 43.1% ー ー 42.3% ー ー(108.3%) (60.9%)
Shareholder Equity 42,229 40,999 43,374 45,368 46,898 ー ー
Shareholder EquityRatio
84.8% 85.1% 85.2% 83.9% 83.9% 0.0% ー
ROE 6.9% 7.5% 10.8% 12.1% 12.6% 0.5% ー
Dividend PayoutRatio
DPS(yen)
Net IncomeAttributable to
Owners of the Parent
2018/3
Operating Income
2019/3 2020/3
Gross Profit
SG & A Expenses
※4
※4
※4
※4
※3
※3
Copyright 2020
Reference3 : Summary of Medium-Term Management Plan【Changes in the environment】
New technologies (AI, IoT) are progressing.Customers’ strategic IT technologiesare accelerating.
Needs to enhance capability for new technologies.
【Basic Strategies】1. Seek additional growth opportunities in new
business and new technologies area.2. Improve adaptability of new technologies in
system development.
3. Further enhancement of human resource and capability of organization.
Net Sales70billion yen
Net Sales fromNew Core Business12billion yen
Operating Income margin
More than13%
ROEMore than12%
(¥ Million)
※1 Real Estate Service Business segment is abolished from 2020/3 and the results of 2019/3 are written based on the changed segments.※2 Revised target announced on May 8, 2019 is written.※3 Extra ordinary losses about 500 million yen is planned to be recorded as anniversary event cost.
(FY2021/3)
2018/3Results
2019/3Results
2020/3Target
2021/3Target
Net Sales 57,704 61,573 65,500 70,000
New Core Business 5,595 7,048 8,500 12,000
Operating Income 7,799 8,492 9,300 10,000Operating Income margin (%) 13.5 13.8 14.2 14.3Ordinary Income 8,119 8,756 9,400 10,100Net Income 5,368 5,817 6,100 6,800ROE (%) 12.1 12.6 12.9 13.7
(※3)
(※1)
(*)
(*) New Core Business refers to System Development Business related to new technologies, System Service Business, and System Product Business.
13
(※2) (※2)(※1)
Copyright 2020
Reference3 : Summary of Medium-Term Management Plan
¥5.5bn
¥12bn
2018/3 2021/3
¥57bn
¥70bn
Factors for achievement of the plan +2.3 1. Enhance the system service.
+1.5 2. Seek additional growth opportunities in new business and new technology area.
+0.5 3. Strengthen system products.
+2.2 4. Strengthen people and organizational capabilities in system development.
Strengthen and improve our sales force, promote cross-selling. Develop new products through technical collaboration with
other companies.
Improve consulting capabilities and enhance proposal capabilities. Laterally collaborate sales division with each business division and
strengthen capabilities of finding a new market. Speeding up raising project managers and project leaders and
raising overall skill level.
+¥6.5bn
HealthcareIT
Expansion of functions of the remote health support service “CAReNA”.
Educational IT
Deployment of e-portfolio “ManaBOX” through collaborating with major learning cram schools.
Human Resource IT
Realizing of synergy effects among NMsystemsand Japan Job Posting Service.*Merged both companies in 2018/10/1 (Current: StellaS)
New core business
Original business
※ New core business refers to system development business related tonew technologies, system service business, and system product business.
(※)
Establish Advanced Technology ResearchInstitute
Create new services through joint development with user companies.~ Cooperate with one user company
per business sector as a standard
Establish Advanced Technology Division
Strengthen new technology development capabilities utilizing AI and IoT.
Cooperate with venture companies
Develop new business models utilizing new technologies.
14
Copyright 2020
NSD Advanced Technology ResearchInstitute (Established in April 2019)
Established to share issues with customers throughinvestment and membership, and create new services that utilize advanced technology. Research advanced technologies such as AI, and Proof
of Concept services Plan new services and products in the new technology
field
Reference4 : Efforts in the Field of Advanced Technology
Customers
NSD Advanced Technology Research
Institute
NSD
Advanced Technology Business Division
(Conventional IT Development)SE 3,000 people
Image of NSD group collaborationShareholder
Companies
PreferredMembers
Other Companies
Shareholders and Preferred members (As of December 31, 2019)Shareholders: IBC Co., Ltd., IWATSU ELECTRIC CO., LTD.,
NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION
Preferred members:JR Kyushu System Solutions Inc., Konoike TransportCo., Ltd., Lenovo Group, MARUBENI INFORMATION SYSTEMS CO., LTD., T&D INFORMATION SYSTEM Ltd. (In alphabetical order)
Advanced Technology Business Division(Changed as a division in April 2019)
Changed Advanced Technology Promotion Division as a business division to strengthen as a development division. Develop new services and products which Research
Institute planned~ Developing products utilizing image analysis and
voice recognition technologies Develop systems from orders which NSD group (not
just Research Institute) received , utilizing advanced technologies
15
DevelopmentsReleased “Tracking Navi” (September 2019)・ A solution service which measures and
visualizes workers’ location information utilizing autonomous navigation
・ Contribute to productivity improvement by optimum arrangement of workers, and to safety confirmation of workers
(Solution Sales)Market Development
Business Division
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Reference2 : Return to Shareholders■Policies of Dividend for FY Ending 2020/3
In commemoration of the 50th anniversary, the followingdividend is scheduled.① Consolidated dividend payout ratio is 50% or more.
(among commemorative dividend 10%)② Furthermore, the total dividend amount increased by
500 million yen. (commemorative dividend)~ Commemorative dividend 14 yen were paid on
2019/11/18 as second quarter dividend
■Policies of Return to Shareholders
① Maintain consolidated dividend payout ratio, 40% ormore.
② Actively return profits to shareholders, judgingbusiness performance and stock price trendscomprehensively.
※1: Treasury stock of 1 million shares were retired in 2017/7/18※2: Treasury stock of 1 million shares were retired in 2019/12/6
1,609 1,888 2,196 2,484 2,548
1,1321,877 1,008
1,362 1,999
5,000
112.1%
63.7% 66.3%77.1%
142.3%
FY 2016/3 FY 2017/3 FY 2018/3 FY 2019/3 FY 2020/3
Year End Dividend Commemorative Dividend
Share Buy Back
(Million yen)【 Forecast 】
Total Return Ratio
Total Payout of Dividends and Share Buy Back
(※2)(※1)
18.522
26 30 32
7.5
52.1%
41.6% 41.0% 43.1%
60.9%
FY 2016/3 FY 2017/3 FY 2018/3 FY 2019/3 FY 2020/3
Dividend per Share Commemorative Dividend
Payout Ratio
(yen)
6.5 +10%
【 Forecast 】
40%
Dividend per Share and Payout Ratio
46yen
+500 million yen increase
※:Stock split of ratio 1:2 was implemented on the record date of 2019/12/31.Above dividend per share is written on the basis of the number of shares posterior to the stock split.
Copyright 2020 17
Reference5 : Major Press Releases
Release Date Category Details
April / 1 / 2019 Strategic Alliance
Started strategic cooperation with Lenovo Enterprise Solutions Ltd.・ Started strategic cooperation regarding platform businesses for data management
and IoT/AI to respond to the expanding digital transformation related businesses.・ Fuse Lenovo group’s data management solutions utilizing data integrated management
tools and NSD’s technological capabilities, and expand data management services.
April / 11 / 2019 Subsidiary Related
A subsidiary NSD Business Innovation Co., Ltd. signed master partner contract with VENAFI, INC.・ Cooperate together to expand cyber security solutions in the Japan market and promote
NSD activities from sales to operations supports.
May / 8 / 2019 Corporate Finance
Dividend forecast for the fiscal year ending March 31, 2020・ Planning the 50th anniversary commemorative dividend (28 yen per share) as the second
quarter end dividend for the fiscal year ending March 31, 2020.・ Planning the year end dividend of 63 yen per share and 91 yen annually.
May / 8 / 2019May / 31 / 2019 Corporate Finance
Resolved share repurchase・ Resolved share purchase to exercise agile management of capital policy and to return our
profits to shareholders furthermore.※ Results (Released on June 24)
~ Repurchase period: 2019/5/9~6/21Total number : 967 thousand sharesTotal amount : 2,999 million yen
May / 8 / 2019 Medium-term Management Plan
Resolved upward revision of the Medium-Term Management Plan (FY2018~FY2020), considering the financial results and the favorable trend of orders.
May / 8 / 2019 Strategic Alliance
Agreed with Chengdu Winnersoft Co., Ltd. on joint business of the subsidiary RX Technology Japan Ltd.・ Strengthen engineer mobilization and flexibly respond to customer’s various needs by
cooperating with Chengdu Winnersoft Co., Ltd.
Copyright 2020
Reference5 : Major Press Releases
Release Date Category Details
July / 31 / 2019 Organization Restructuring
Absorption merger with the subsidiary Business Innovation Co., Ltd. on October 1, 2019・ Absorb and merge to concentrate and effectively utilize management resources, and then
to strengthen marketing power and to make management efficiently.
Sept / 26 / 2019 SubsidiaryRelated
Subsidiary NSD Advanced Technology Research Institute Co., Ltd. released “Tracking Navi”・ A solution service which measures and visualizes workers’ location information utilizing autonomous navigation.
・ Contribute to productivity improvement by optimum arrangement, and confirming safety of workers.
Sept / 27/ 2019 StrategicAlliance
Reached a basic agreement on capital and business alliance with Signpost Corporation on expanding “Wonder Register”, a setup-type register installed with AI・ NSD will expand the functions of the register, customize to fit the customer’s environment, and
develop and maintain the surrounding systems.Signpost Corporation will concentrate its resources into researching and developing AI and image recognition technologies, which are the core technologies, and developing new models.
・ Started negotiation on establishing capital relationships to facilitate efforts on business partnership.
Oct / 10 / 2019 Corporate Finance
Resolved 50th anniversary commemorative dividend payout and the revision of the year-end dividend forecast・ Resolved the 50th anniversary commemorative dividend of 28 yen per share as the second quarter
dividend for the fiscal year ending March 31, 2020.・ Revised forecast of year-end dividend to 64 yen (92 yen annually), an increase of 1 yen per share.
Oct / 11 / 2019 StrategicAlliance
Agreed with Avanade on strategic cooperation for Microsoft-related projects・ Share technologies and know-how with Avanade to strengthen capabilities and accelerate
development of service business in Microsoft 365, Dynamics 365, and Azure.・ Established Avande Development Office in NSD, and fuse Microsoft solutions with NSD’s technical
capabilities and provide high-quality services for customers.
18
Copyright 2020
Reference5 : Major Press Releases
19
Release Date Category Details
Oct / 31 / 2019 Corporate Finance
Resolved share repurchase and the retirement of treasury stock・ Resolved share purchase and retirement of treasury stock (1,000 thousand shares) to exercise agile
management of capital policy and to return our profits to shareholders furthermore.※ Results of share repurchase (Released on November 27)
~ Repurchase period: 2019/11/1~11/29Total number : 443 thousand sharesTotal amount : 1,499 million yen
※ Results of retirement of treasury stock (Released on December 6)~ Retirement date: 2019/12/6
Total number : 1,000 thousand shares
Oct / 31 / 2019 Corporate Finance
Resolved stock split and the revision of the year-end dividend forecast・ Each share of common stock will be split into two shares on the record date of 2019/12/31 to
improve the liquidity of our stock and to expand our investor base.・ Following the stock split, the year-end dividend forecast of 64 yen per share is revised to 32 yen.
(Effectively, there is no change.)
Oct / 31 / 2019 SubsidiaryRelated
US subsidiary NSD International acquired all shares of MKG Global Technology(Japan Tech)・ Japan Tech is a company in the United States which provides system development and consulting
mainly for local Japanese companies.・ Acquired to accelerate business growth in the United States, and to improve proposing capabilities
and services to customers
Jan / 31 / 2020 Corporate Finance
Resolved share repurchase・ Resolved share purchase to exercise agile management of capital policy and to return our
profits to shareholders furthermore.※ Planned period: 2020/2/3~2/28
Planned total number: 350 thousand shares (maximum)Planned total amount: 500 million yen (maximum)
Jan / 31 / 2020 Organization Restructuring
Absorption merger with the subsidiary NRS CO., LTD. on April 1, 2020・ Absorb and merge real estate management subsidiary to withdraw from real-estate management
business for effective management.
Copyright 2020 20
MEMO
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MEMO
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[Disclaimer]This report is intended to provide information about the business performance and strategy of NSD CO., LTD. (NSD) and the NSDGroup. It is not intended and should not be construed as an inducement to purchase or sell stock in NSD or NSD Group companies.Statements in this presentation that are not historical facts are forward-looking statements, based on the current beliefs, estimatesand expectations of management. As these beliefs, estimates and expectations are subject to a number of risks, uncertainties, andassumptions, actual results may be materially different. NSD undertakes no obligation to update any forward-looking statements,and shall in no event be liable for any damages arising out of the use or interpretation of this material. Please refrain from copying,disseminating or distributing this material without the prior consent of NSD.
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