Issues Requiring a Response

Regarding key issues facing the TIS INTEC Group, the Group is striving to achieve its Group Vision for 2026, "Create Exciting Future," and further raise corporate value by implementing structural transformation with sense of speed and expanding business in the four strategic domains.
The Group views structural transformation as imperative to its success, and it has set the two targets of "sustainable profit growth" and "emphasis on employee self-fulfillment." "Continual structural transformation with sense of speed" will be critical to achieving these two targets. More specifically, the Group will implement various measures based on the management policies of "concentrate on core businesses," "shift to prior investment style of business development" and "expand global business."
To robustly support the achievement of these policies, the Group will continue to promote "human resources enhancement" and "management enhancement."

1. Concentrate on Core Businesses

Regarding "concentrate on core businesses," the Group will promote various measures to bolster fields of expertise in such traditional areas of strength as system integration and IT services, along with critical and priority customer business. To further raise profitability, the Group Production Innovation Committee will be used to promote various measures to minimize unprofitable projects and implement enhancement and innovation activities to raise maintenance development productivity. Additionally, the Group will incorporate leading-edge technologies into existing businesses and promote agile scrum-style development skills, which are a core part of Mode 2 development concepts. Through these and other initiatives, the Group will seek to raise added value and enhance its strengths through productivity innovations.

2. Shift to Prior Investment Style of Business Development

In regard to "shift to prior investment style of business development," the Group aims to transform its own business structures to prioritize speed and flexibility, enabling a shift towards business which anticipates the needs of customers from the perspective of social issues. Specifically, the Group is promoting business creation by furthering leading edge research on AI, IoT, and robots being conducted at its research facilities, while deepening coordination between Group-backed ventures and the Group's business to maximize know-how. The Group will also seek to create business based on the concept of connecting customers to each other and connecting customers to society in order to accelerate the growth of all partners.

3. Expand Global Business

In regard to "expand global business," the Group has accelerated the establishment of capital and business partnerships with leading IT companies in ASEAN in order to acquire new business in a region which has shown particularly dramatic expansion in recent years. The Group will strive to extend its traditional strengths in settlement, banking, and ERP into global strengths as it aims to be a top-class ASEAN business group. Additionally, the Group will actively form partnerships with leading IT companies in Europe, the United States, China and other regions in order to enhance the solutions it develops for Japan and ASEAN markets.

4. Human Resources Enhancement

Regarding "human resources enhancement," the Group is striving to raise motivation even further by establishing work systems and corporate cultures which prioritize emphasis on employee self-fulfillment and enable a diverse range of human resources to thrive. The Group recognizes that the most important factor behind its sustainable growth is realizing a high quality of life for its employees. The Group aims to be a place where employees can work in health and peace of mind by emphasizing the three policies of "healthy body and mind," "higher vitality," and "higher motivation." With these policies, the Group is also establishing a workplace spirit and work environments to enable employees to achieve self-fulfillment through their work and generate even better work results. The Group has created a human resources vision to develop its talent and drive its structural transformation, while also optimizing the allocation of personnel.

5. Management Enhancement

Regarding "management enhancement," the Group has carried out structural reforms in conjunction with its transition to an operating holding company structure, including the creation of a Group Vision, promotion of awareness activities, an increase in independent outside directors, establishment and consolidation of internal control systems and unification of management under the Group Internal Control Committee. Furthermore, in March 2018, a Nomination Committee and Compensation Committee were established on a voluntary basis as consultative bodies to the Board of Directors for the purpose of ensuring objectivity and transparency in the decision-making processes for nominating executive officers and determining their compensation. In terms of coordinating business activities, the Group is building and maintaining its management governance systems to achieve structural transformation with sense of speed. These initiatives include organizational reforms to support the refocusing of business units on the four strategic domains, as well as measures to strengthen and promotion a sense of unity throughout the Group.

 

In consideration of the above management issues, the Group has established the three-year medium-term management plan from fiscal 2018 "Transformation to 2020: Unifying as a Group and achieving structural reforms to become a leader in solving society's issues," and a strategic business domain ratio of 50%, operating income of ¥43.0 billion, an operating income ratio of 10%, and ROE of 12% as its targeted business indicators for the plan. The Group will vigorously implement various initiatives to realize structural transformation with urgency and further raise the Group's corporate value to support the achievement of the medium-term management plan and the business indicators and serve as a stepping stone for achieving the Group Vision for 2026.

Update : May 22, 2018, 11:52

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