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

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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

Copyright 2020 16

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.

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MEMO

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MEMO

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