ＩＤホールディングス（4709） – [Delayed]Presentation Material for Financial Results FY2021

ChangPresident and Representative DirectoreMasaki Funakoshi or De!iID Holdings CorporationApril 1, 2021 – March 31, 2022TSE Prime MarketCode4709※ Our website can be accessed from the QR Code.©2022 ID Holdings Corporation. All Rights Reserved.1Change or De!i12Performance OverviewNew Mid-Term Management PlanNext 50 Episode II: Ride on Time©2022 ID Holdings Corporation. All Rights Reserved.2Change or De!iOverview of Financial results for FY2021Net Sales¥27,805 million（highest ever!）(Reference)Before application of ASRR ¥28,677 millionYoY +11.3%⊕ Contributions from purchased subsidiaries⊕ Solid trend in system operation management⊖ Negative impact of ¥871 million due to the application of ASRR*Operating Income¥1,869 million(Reference)Before application of ASRR ¥1,887 millionYoY +37.5%⊕ Increased sales fostered increased earnings⊕ M&A-related expenses were considerably lower than those appropriated inthe previous fiscal year⊖ Amortization of goodwill increased ¥95 million as a result of acquisition of three subsidiaries in the previous fiscal year⊖ Expenses appropriated in connection with the New Normal Adaptation ProjectNote:ASRR = Accounting Standard for Revenue Recognition. From the beginning of FY2021, the Group applies the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) of the Japanese generally accepted accounting principles (J-GAAP). ©2022 ID Holdings Corporation. All Rights Reserved.3Financial Results (Consolidated) (Impact from application of ASRR)Change or De!iNotes:1.2.EBITDA = Operating income + depreciation + amortization of goodwillEPS before amortization of goodwill = (Net income attributable to owners of parent + amortization of goodwill) ÷ interim average number of shares©2022 ID Holdings Corporation. All Rights Reserved.4Results(% of net sales)Diff.YoYResults(% of net sales)Net sales28,677–871 -3.0%27,805-　Cost of sales21,99076.7%-852 -3.9%21,13776.0%Gross profit6,68723.3%-18 -0.3%6,66824.0%　SG&A expenses4,79916.7%0+0.0%4,79917.3%EBITDA12,5108.8%-18 -0.7%2,4919.0%Operating income1,8876.6%-18 -1.0%1,8696.7%Ordinary income1,9416.8%-18 -1.0%1,9226.9%Net income attributable toowners of parent1,0583.7%-12 -1.2%1,0463.8%Earnings per Share (EPS) (\)62.34–0.73 -61.61-EPS before Amortizationof Goodwill (\)288.52–0.73 -87.78-2022.3(Before application of ASRR)2022.3(Figures published in theconsolidated financial results)(cid:9)Impact from application ofASRR（\ million）【Reference】Financial Results (Consolidated) (YoY comparison, before application of ASRR)Change or De!iNote: The figures for EPS and EPS before amortization of goodwill take a share split (1 share → 1.5 shares) which is executed as of the effective date (July 1, 2021) into consideration.©2022 ID Holdings Corporation. All Rights Reserved.5Results(% of net sales)Results(% of net sales)Diff.YoYNet sales25,766-28,677-2,910+11.3%　Cost of sales19,38675.2%21,99076.7%2,603+13.4%Gross profit6,38024.8%6,68723.3%306+4.8%　SG&A expenses5,00719.4%4,79916.7%-208 -4.2%EBITDA1,8777.3%2,5108.8%632+33.7%Operating income1,3725.3%1,8876.6%514+37.5%Ordinary income1,5536.0%1,9416.8%387+25.0%Net income attributable toowners of parent7472.9%1,0583.7%311+41.6%Earnings per Share (EPS) (\)44.37-62.34-17.97-EPS before Amortizationof Goodwill (\)65.06-88.52-23.46-2021.32022.3(Before application of ASRR)（\ million）Net Sales by Services (Impact from application of ASRR)Change or De!i©2022 ID Holdings Corporation. All Rights Reserved.6 (\ million)2022.3(Figures published inthe consolidatedfinancial results)Impact fromapplication of ASRR2022.3(Before application ofASRR)2021.3(Before application ofASRR)YoY(Before application ofASRR)System OperationManagement12,201-312,20512,071+1.1%SoftwareDevelopment10,542-4410,5868,404+26.0%IT Infrastructure2,624-42,6282,534+3.7%Cybersecurity,Consulting & Training2,081-5752,6562,275+16.7%Others355-243599481+24.7%Total27,805-87128,67725,766+11.3%Feature of ID Group① (Net sales by Services)26,377869 3.3%2,091 7.9%2,499 9.5%25,766481 2.0%27,805355 1.3%2,081 7.5%2,275 8.8%2,624 9.4%2,534 9.8%8,941 33.9%8,404 32.6%10,542 37.9%11,974 45.4%12,071 46.8%12,201 43.9%Change or De!i(Reference)Before application of ASRR 28,677Impact from ASRR (871)(¥ million)Cybersecurity, Consulting and Training⊖ Decreased income due to application of ASRR⊕ Expansion of orders received for consulting andcybersecurity⊕ Shared factor for increased sales among the three fields below:Contribution of acquired subsidiariesIT Infrastructure⊕ Increased sales from finance-related customers⊖ Decreased sales from transportation- and public-related customersSoftware development⊕ Expansion of orders received from major IT vendors⊕ Expansion of transactions at for finance- and manufacturing-related customers⊖ Reactionary decline at existing public-related customers etc.2020.32021.32022.3■ System Operation Management ■Software Development■ IT Infrastructure ■Cybersecurity, Consulting and Training■ Others System operation management⊕ Expansion of orders received from major IT vendors⊕ Expansion of orders received from existing government-,medical-, and wholesale-related customers⊖ Completion of system strengthening for finance-related customers from the previous term©2022 ID Holdings Corporation. All Rights Reserved.7Feature of ID Group② (Net sales by Customer)(Reference)Before application of ASRR28,67727,805+523+40.7%1,808(6.5%)Impact fromASRR (871)26,3771,272(4.8%)+12+1.0%25,7661,285(5.0%)4,594(17.4%)-235-5.1%4,358(16.9%)+121+2.8%10,420 (39.5%)-1,588-15.2%8,832 (34.3%)-907-10.3%4,479(16.1%)7,924 (28.5%)Change or De!i10,089(38.3%)+1,201+11.9%11,290(43.8%)+2,302+20.4%13,593(48.9%)(¥ million) Figures in brackets indicate % of net sales■Manufacturing■Construction, Real estate■Logistics, Retail etc.2020.32021.32022.3IT, Telecom & ServiceFinancial InstitutionPublicOthers©2022 ID Holdings Corporation. All Rights Reserved.8Feature of ID Group③ (Net sales by Strategic Alliances)26,3774,936(18.8%)3,340(12.7%)25,766+869+17.6%5,806(22.5%)+648+11.2%27,8056,455(23.3%)+846+25.3%4,187(16.2%)+2,217+53.0%6,404(23.0%)9,719(36.8%)-654-6.7%9,064(35.2%)+118+1.3%9,183(33.0%)3,652(13.8%)4,727(17.9%)-390-10.7%-1,281-27.1%3,262(12.7%)3,446(13.4%)2020.32021.3+58+1.8%-1,004-29.1%3,320(11.9%)2,441(8.8%)2022.3Change or De!i(Reference)Before application of ASRR 28,677Impact from ASRR （871）(¥ million) Figures in brackets indicate % of net salesOthers⊕ Contribution of acquired subsidiaries etc.Strategic Partners⊕ Contribution of acquired subsidiaries etc.Major Customers⊕ Changes to accounting classification for Mizuho FG subsidiaries’ net sales⊝ Reactionary decline of large-scale projectsIBM Group⊕ Changes to accounting classificationfor Mizuho FG subsidiaries’ net sales⊝ Reactionary decline of large-scale projectsMizuho FG⊝ Net sales partially allocated to IBM Group due to Mizuho FG Group restructuring⊝ Changes to accounting classificationfor Mizuho FG subsidiaries’ net sales⊝ Reactionary decline of large-scale projects■Mizuho FG ■IBM Group ■Major Customers ■Strategic Partners ■OthersNote: From FY2021, the breakdown of the category “Major Customers” has changed. The figures of FY2019 and FY2020 have been adjusted based on changes.©2022 ID Holdings Corporation. All Rights Reserved.9Net Sales of DX-related businessDX-related businessPromoting customer’s DX by combining existing IT services with cutting-edge technologies such as cloud, AI and IoT.DX-related sales: ¥12,671 millionabout 45.6 ％ of consolidated sales(Reference) FY2020: ¥6,688 million, about 26.0% of consolidated salesConsulting and Training 1,257（¥ million）DX-related businessSecurity andIT Infrastructure分類 1Remote Support and Advanced Development4,4914,7221,87715,134CloudExcluding DX-related businessAutomation and Optimization 322Security and IT InfrastructureRemote Support and Advanced DevelopmentCloudConsulting and TrainingAutomation and OptimizationChange or De!i24-hour support fornetwork surveillance,incident handling, andsecurity productinstallationExpansion of mobile appdevelopment, accelerateddevelopment usingtechnology such asremote infrastructure andno-code developmentplatformsSupporting cloudenvironment constructionand migration usingmajor IT infrastructuresuch as AWS and AzureImplementation ofconsulting and trainingrelated to systemoperations and securitySupporting theautomation andoptimization of customeroperations usingtechnologies such as RPA,AI, and smart glasses©2022 ID Holdings Corporation. All Rights Reserved.10【Reference】 Operating Income Analysis（YoY）Change or De!iNote: The Group applies ASRR from FY2021. However, in YoY comparisons, ASRR is not applied to the business results of the same period of the previous fiscal year (FY2020).©2022 ID Holdings Corporation. All Rights Reserved.112021.3（\ million）ResultsResultsDiff.　Gross Profit6,3806,668+287・Main changes in Gross Profit　-Increase in net sales　　　 +2,039 (Of which: Decrease in net sales from application of ASRR　-871)　-Increase in cost of sales　 +1,751 (Of which: Decrease in cost of sales from application of ASRR　-852) ・Labor cost 　　　　　 +1,240 ・Subcontract expenses +974　 ・Manufacturing expenses +16 ・Purchases 　　　　 -423　SG&A　Expenses5,0074,799-208・Main changes in SG&A Expenses　-Decrease in personal cost -288　-Increase in other expenses +80 ・Increase in goodwill expenses +95 ・Expenses from the New Normal Adaptation Project ・Increase in Land rentOperatingIncome1,3721,869+4962022.3Main Reasons in Changes【Reference】Net Income Attributable to Owners of Parent Analysis（YoY）Change or De!iNote: The Group applies ASRR from FY2021. However, in YoY comparisons, ASRR is not applied to the business results of the same period of the previous fiscal year (FY2020).©2022 ID Holdings Corporation. All Rights Reserved.122021.3（\ million）ResultsResultsDiff.　Ordinary　Income1,5531,922+369・Main changes in Ordinary Income　-Increase in operating income　　 +496　 (Of which: Decrease from application of ASRR　-18)　-Decrease in non-operating income　 -129　-Decrease in non-operating expenses -2　Extraordinary　Income31732-284・Main change in Extraordinary Income　-Decrease in reaction to gain on sales of investment　 securities recorded in the previous fiscal year -316　Extraordinary　Losses47018-451・Main changes in Extraordinary Losses　-Decrease in reaction to loss on sales of non-current assets　 (company domitory) in the previous fiscal year -433　-Office moving expenses at the subsidiaries acquired　 in the previous fiscal year +15　Total Income　Taxes653890+237Net Incomeattributable toowners of parent7471,046+2982022.3Main Reasons in ChangesAnalysis of Balance-sheet Factors2021.3(¥ million)Liabilities7,388Main Factors・ Cash and depositsdecreasedAssets16,796Net assets9,408・ Amortization of goodwillreduced assets2022.3-108-444Change or De!iLiabilities6,792Main Factors・ Income taxes payableincreased +322・ Short-term loans payable decreased-960Equity Ratio57.9％Current Ratio188.2％Goodwill¥1,748 millionAssets16,238Net assets9,446©2022 ID Holdings Corporation. All Rights Reserved.13Cash FlowsOperating Activities 1,842 InvestingActivitiesFree Cash Flows*Financing Activities Interest-bearing Debt1,833 1,490 (¥ million) 3,463 FY2020FY20212,725 Change or De!i-607 ・Net incomebefore incometaxes(1,936)・Corporation tax,etc. paid(-545)・Amortization ofGoodwill(444)-9 -612 ・Proceeds ・Purchase ofproperty, plant and equipment(-123)・ Purchase ofinvestmentsecurities (-46)from withdrawal of time deposits(187)-1,219 ・Cash dividends paid (-642)・Repaymentof long-term loans payable(-543)・Purchase of treasury stock(-523)-1,889 *Free Cash Flows = Cash Flows from Operating Activities ＋ Cash Flows from Investment Activities©2022 ID Holdings Corporation. All Rights Reserved.Main reasons in FY202114Change or De!iShareholders（As of March 31, 2022）Shareholding by investor typeMajor shareholders No. of shareholders: 5,983(+ 710 since March 31, 2021)53.00%49.57%2021.32022.3 No. of shareholders with voting rights: 5,067(+ 499 since March 31, 2021) Treasury stocks (1,111 thousand shares) are not included when calculating the ratio of shareholdings.Major shareholders1The Master Trust Bank of Japan, Ltd. (Trust Account) 10.16%2 A.K.Corporation3 ID Employee Ownership Account% of total shares9.23%6.60%4.47%3.74%2.51%2.15%1.75%1.58%22.81%22.91%4 PERSHING-DIV. OF DLJ SECS. CORP.4.60%18.90%15.44%7.09%7.21%5Custody Bank of Japan, Ltd. (Trust Account)6 Mizuho Trust & Banking Co., Ltd.7 TDC SOFT Inc.8Custody Bank of Japan, Ltd.(Trust Account E)IndividualJapanese Corp. Financial Inst. Non-JapaneseOthers1.63%1.44%9 Akemi Funakoshi10 Kaori Marubayashi©2022 ID Holdings Corporation. All Rights Reserved.15Improving Capital Efficiency and Enhancing Return to ShareholdersChange or De!iMeasures to improve capital efficiency ROE＝Equity Expansion of net sales through M&A strategy and promotion of DX businessNet income Improvement of income margin by shifting to a service-based business model Enhancement of return to shareholders through dividend distribution Investment for further growth(M&A, personnel training, etc.)Enhancement of return to shareholdersFiscal year ending March 31, 2022 Share split (1 share → 1.5 shares) as of the effective date (July 1, 2021) Effective increase by ¥10 (An interim dividend of ¥20 per share and a year-end dividend of ¥20 per share are planned)Trend in dividend yield4.0%2.6% 2.9%3.6% 3.9%4.7%42.2Trend in ROEAverage : Approx. 10.3%(FY2014-FY2021)15.3%12.9%11.4%9.5%8.4%8.1% 8.3%11.2%8.3%FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022(forecast)Trend in dividend per share anddividend payout ratioDividend increase : 5 times, Stock split : Twice(FY2014-FY2021)70.475.161.564.960.346.042.942.816.716.720.020.080.070.060.050.040.030.020.010.00.080.070.060.050.040.030.020.010.00.03.0%3.1%13.315.624.726.726.716.716.720.020.0FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022©2022 ID Holdings Corporation. All Rights Reserved.Dividend (\)Dividend payout ratio (%)(forecast)16Change or De!i12Performance OverviewNew Mid-Term Management PlanNext 50 Episode II: Ride on Time©2022 ID Holdings Corporation. All Rights Reserved.17Reviewing the Medium-Term Management Plan and the Group’s ChallengesAlthough the sales goal was not achieved, the goal of operating income margin was.By promoting various initiatives, a business foundation anticipating future growth was established.Change or De!iPerformance achievement conditions(¥ billion)26.5Net sales30.027.8Operating income (%)16.619.0 18.6-7.3% compared to plan126.3%106.3% 6.7%2018161486420compared to plan-1.6%10.0%12.0%+0.4 PT (OPM)4.0%14.0%8.0%6.0%2.0%0.0%2019.32019.3Performance2022.3計画2022.32022.3実績PlanPerformanceab2019.32019.3Performance2022.3計画2022.32022.3実績PlanPerformanceabConfirmation of challengesStrengthening on DX services, reviewing sales frameworks, further increasing productivity and reducing selling, general, and administrative expenses.Development of an Upgraded Business Model based of DXDevelopment of a Future-oriented Corporate CulturePromotion of ESGDX net sales¥12.6 billion（20.7% increase over plan)DX licenses acquired1,392(19.5% increase over plan)Relocation of a portion of head office operations to the Sanin region—Introduction of a personnel management systemCertified three years in a row3-star evaluation3.5-star evaluationISO14001 certification acquired1Confirmation of challengesTraining intermediate and advanced DX technicians as well as corporate proposal staffConfirmation of challengesMaking Administration Department’s operations more efficient and advancedConfirmation of challengesFurther expansion of activity content©2022 ID Holdings Corporation. All Rights Reserved.1: Registration number: JQA-EM774018The Goals of the New Mid-Term Management PlanBecoming an indispensable IT engineering partner that brings about an exciting future for our 5 stakeholders. Together we will Ride on Time!Change or De!iShareholderSustained and stable dividendMarket capitalization¥25 billionPercentage of DX sales60%ClientProvide high value-added servicesBusiness partnerDeepening collaboration in the DX field5% increase in unit pricePromoting SDGsSocietyProblem solving through business activitiesEmployeeHappiness5% increase in annual income©2022 ID Holdings Corporation. All Rights Reserved.19Overview of the New Mid-Term Management PlanNext 50 Episode II: Ride on TimeRealize a greater growth cycle by increasing corporate value and giving back to our employees and business partners!Net salesOperating income2022.32025.32027.3※¥27.8B¥32.0B¥40.0B¥1.86B（6.7%）¥2.55B（8.0%）¥3.20B（8.0%）※ C o n s i d e r i n g M & A i m p l e m e n t a t i o nTarget valueChange or De!i3Basic themes124 Basic strategiesDevelop business models in line with our DX portfolioStrengthen partnerships to create greater value-added3Upgrade management divisions and reallocate resources to the business divisions©2022 ID Holdings Corporation. All Rights Reserved.20The 4 Basic StrategiesIT Service StrategyWe are committed to defining the technological areas with high client needs, supporting the DX promotion by our clients in collaboration with our partners, and developing proprietary solutions targeting key growth areas. Human Resource StrategyIn order to expand our DX services and provide even higher value-added, we will further enhance our training system and accelerate the development of our mid- to senior-level engineers and innovative leaders. Change or De!iWe aim to better optimize and further enhance the functionality of our operations by revamping our internal core system and advancing other measures. In addition, we will build a smart administrative division, and strategically reallocate personnel to the business division.We strive for a virtuous cycle of “solving social issues” and “enhancing corporate value” by making progress in our sustainability initiatives through our business activities. New Normal StrategySDGs Strategy©2022 ID Holdings Corporation. All Rights Reserved.21IT Service Strategy（DX Portfolio）Secure revenue from base business, and expand our support for DX promotion by our clients and proprietary solutionsDegree of InnovationChange or De!i Newbusiness ExistingbusinessProprietary solutionCreate services with our proprietary solutionsDigital solutionDX Co-CreationSustainably create value with our clientsHybrid growthBase businessSupporting DX promotionIncrease customer valueSupporting the further creation of client value by using DX technologyOperations(On-site)Development(On-site)Smart Operations※DX Development※Existing business supportNew business supportDegree of Client InnovationShared Tasks◆Key client tasks ◆Strategic partner tasks ◆Business partner value enhancement ◆Quality control ◆Global tasks※ Source: ”2021 White paper of information service industry” p.6“DX Business Portfolio” partially revised※1 Smart Operations: System operations utilizing automation tools, cloud, remote work, etc.※2 DX Development : Software development utilizing AI, low code, cloud, etc.©2022 ID Holdings Corporation. All Rights Reserved.22DX serviceIT serviceChange or De!iDX Promotion Support ServicesSupporting the DX promotion by our clientsby leveraging cutting-edge technologyCloudAutomationAILow codeRemote workConsultingSystem operationmanagementSoftware developmentIT infrastructureCybersecurityNext-generation system operation management and software development utilizing innovative technologySmart OperationsDX Development©2022 ID Holdings Corporation. All Rights Reserved.23Introduction to Smart OperationsOperations utilizing automation tools, cloud, and remote work☛Not only reducing costs, but simultaneously improving productivity and quality!Traditional OperationsSmart OperationsManual laborOn-premiseOn-siteAutomationCloudRemoteChange or De!i【Case Study】Expansion of Smart operations to prominent and local banksProminent IT service companyOur operation technician × Container × Automation©2022 ID Holdings Corporation. All Rights Reserved.24Provision of services to prominent and local banksChange or De!iIntroduction to DX developmentSoftware development utilizing AI, low code, cloud, etc.☛By utilizing domestic and overseas branches and proactively promoting DX development, efficient development would be achievedTraditional DevelopmentDX DevelopmentWaterfallOnsiteUtilizing Advanced TechnologyRemote & decentralized development domestic & overseas branchesAgile, Low code,Public cloud, etc.Tokyo, Ibaraki, Osaka, Yonago, Wuhan, Yangon etc.【Case Study】Build an AI support system to automate failure detection and analysis when failures occurDetectalarmMonitoring deviceOperatorFailure history databaseSearchLearnedmodelsLearning©2022 ID Holdings Corporation. All Rights Reserved.25Change or De!iProprietary Solution ServicesExpanding multi-cloud & cybersecurity to critical infrastructure areas×Multi-CloudSecurityTarget・Medical・Energy・Public sectorTarget・Manufacturing・Construction・Logistics・Medical・Public sectorInstallation, Managed servicesSecurityAdvisory & ScoringIdentification of vulnerabilities,Provision of informationCyber Threat Retrospective AnalysisPC managementEDR※RPA remote maintenanceCyber defense exercisesIoTOTIT※ EDR（ Endpoint Detection & Response ）is the enhanced endpoint monitoring to detect and respond to cyber attacks.©2022 ID Holdings Corporation. All Rights Reserved.26Human Resource Strategy (Training)Strengthen training of mid- to senior-level DX engineers and project personnelTraining Strategy◆DX Engineer◆Priority PolicyChange or De!iMid- to senior-level personnel to design/build cloud, AI, etc.(members)1,0631,2401,4201,60054.9%56.5%59.2%62.5%2022.32023.32024.32025.3■Mid- to senior-level ■Entry levelPersonnel capable of proposing solutions based on new ideas(members)701101502002022.32023.32024.32025.3Continuous training of the next-generation at every level（Reskilling）Web3.0Fostering the engineers for Web 3.0(Metaverse, NFT※）※Non-Fungible Tokenetc.¥600 million/3 yearsReference：FY2021 result ¥180 million◆Personnel for Proposing & Planning◆Training BudgetExpand DX Service©2022 ID Holdings Corporation. All Rights Reserved.27New Normal Strategy (Upgrading Management) Reallocate members of management to business divisions to improve operational efficiency and return profits to our employeesBusinessOptimization・SimplificationDecentralization of HQ FunctionsStrengthen business management and planning functionsChange or De!i・Centralization of data ・Transfer some HQ through the implementation of information sharing infrastructure・Elimination of unnecessary processes and digitization of operationsfunctions to the Sanin and overseas offices・Rearrange the functions of HQ and shared offices・Improve data aggregation and utilization through the renewal of core systemsFY2024Numerical TargetsImprovement in SG&A ratio 17.3％※ → 13.9％SG&A Department 190 members → 140 members©2022 ID Holdings Corporation. All Rights Reserved.28※FY2021 resultSDGs Strategy – Our Approach to Sustainability (Value Creation Ecosystem) -Contribute to the solving of social issues and further increase corporate value through our business activitiesM a n a g e men t P h i l o s o p h ySocial issuesM a n a g e m e n t R e s o u r c e s Business activitiesCreating valueChange or De!iAdv ancing D XCyber attacksClimate changeDiversityPriv acyI n t e l l e c t u a l c a p i t a lH u m a n c a p i t a lS o c i a l c a p i t a lM a n u f a c t u r i n gc a p i t a lN a t u r a lc a p i t a lF i n a n c i a lc a p i t a lAn excitingfutureC r e a t i o n o f e n v i r o n m e n t a l v a l u eR e a l i z a t i o n o f a n e c o – f r i e n d l y s o c i e t yC r e a t i o n o f s o c i a l v a l u eB u i l d a s a f e a n d s e c u r es o c i a li n f r a s t r u c t u r eC r e a t i o n o f e c o n o m i c a l v a l u eB u i l d a n d m a i n t a i n s t r o n g r e l a t i o n s h i p s w i t h s t a k e h o l d e r s Acquire new competitive edge and expandbusiness domainD XI m p l e m e n t a t i o nFostering a corporate culture and climateCreating new valuethrough the use offor self-initiated changedigital technologyCorporate GovernanceValue Creation Ecosystem©2022 ID Holdings Corporation. All Rights Reserved.29Key Numerical Targets for the New Mid-Term Management Plan2022.32023.32024.32025.3(Numerical targets 5-years later)2027.3Net sales¥27.8B¥29.0B¥30.4B¥32.0B¥40.0BOperating income(rate)¥1.86B（6.7%）¥1.95B（6.7%）¥2.2B（7.2%）¥2.55B（8.0%）DX Net sales（rate）¥12.6B（45.6%）¥13.9B（48%）¥16.1B（53%）¥19.2B（60%）※ T a k i n g M & A i n t o a c c o u n t¥3.2B（8.0%）¥28.0B（70%）EBITDA（rate）¥2.49B（9.0％）¥2.58B（8.9％）¥2.8B（9.2％）¥3.1B（9.7％）¥4.0B（10.0％）※ EBITDA = Operating income＋ Depreciation ＋ Amortization of goodwill8.0%400320 278 290 304 7.2%161 6.7%6.7%126 139 192 ＋Bus ines s expansion through M&A400 8.5%8.0%8.0%280 7.5%売上高Net sales7.0%DX売上高営業利益率DX Net salesOperating income margin6.5%6.0%2022.3 Result2022.3実績2023.3 Plan2023.3目標2024.3 Plan2024.3目標2025.3 Plan2025.3目標2026.3 Plan2026.3目標2027.3 Plan2027.3目標©2022 ID Holdings Corporation. All Rights Reserved.30Change or De!i450350300250200150100500(Reference) KPIs of the New Mid-Term Management PlanIT Service StrategyChange or De!iHuman Resource StrategyNew Normal StrategySDGs StrategyKPI2022.3 Result2023.3 Plan2024.3 Plan2025.3 PlanDX Net sales¥12.6B¥13.9B¥16.1B¥19.2BDX Net sales ratio45.6%48%53%60%Number of mid- to senior-level DX certifications（Annual）264300300300Number of mid- to senior-level DX engineers584 people700 people840 people1,000 peoplePercentage of female employees24.1%26%28%30%Percentage of female managers16.9%22%25%30%Percentage of foreign employees7.7%10%13%15%Improvement in SG&A ratio17.3% 15.3% 14.6% 13.9% Reduction in CO2 emissions（from electricity use）＊compared to FY2020 electricity useReduction in paper consumption＊compared to FY2020Participation in environmental volunteer activities（Total number of people per year）Down 3.7％Down17％Down15％Down17％Down18％Down20％Down20％Down23％173 people200 people200 people200 people©2022 ID Holdings Corporation. All Rights Reserved.31Forecast of Consolidated Financial Results for FY2022 (YoY)Change or De!i©2022 ID Holdings Corporation. All Rights Reserved.32（\ million）Results(% of net sales)Plan(% of net sales)Diff.YoYNet sales27,805-29,000-+1,194+4.3%EBITDA2,4919.0%2,5808.9%+88+3.5%Operating income1,8696.7%1,9506.7%+81+4.3%Ordinary income1,9226.9%2,0006.9%+77+4.0%Net income attributable toowners of parent1,0463.8%1,1003.8%+54+5.1%Earnings per Share(EPS)(\)61.61-66.31-+4.70-EPS before Amortization ofGoodwill(\)87.78-93.10-+5.32-Cash flows from operatingactivities1,842-1,816–26-2022.32023.3DisclaimerThis presentation material contains statements and information about future forecasts, including financialprojections, strategies and business plans of ID Holdings Corporation.Change or De!iForecasts and plans contained in these non-historical information are based on our judgment in accordancewith the information available at the time of publication.These forward-looking statements and information also incorporate potential risks and uncertainties caused bychanging economic trends, the competitive environment, and other factors. The Company’s actual results,business development progress, and financial situation may differ significantly from forward-looking statementsand information contained herein, due to competition in the industry, market demand, exchange rates, andother socioeconomic and political factors.This English translation is only for reference purpose. When there are any discrepancies between originalJapanese version and English translation version, the original Japanese version always prevails.©2022 ID Holdings Corporation. All Rights Reserved.33