Focus : Medium-Term Management Plan 24-26

Focus Systems Corporation

Medium-Term Management Plan 24-26

Fiscal years starting from the fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2026

May 12,2023

Message from President

Strengthen the Cycle of Growth/Profit/Return

Focus Systems has been achieving growth as an independent system integrator by concentrating its business entirely on the field of information technology, and doing business earnestly and with consistency.

We do not take on reckless challenges, but continue to take on bold challenges.

Focus Systems' sound management practices benefiting ourselves as the seller, as well as our customers and society at the same time, is the source of our strength as well as our pride.

We have set the year 2026, which marks our 50th anniversary, as our starting line to embark on our journey to aim for a "New Company Vision."

Eyeing the next stage, I hereby announce our new three-yearMedium-Term Management Plan based on the initiative to "Strengthen the Cycle of Growth/Profit/Return."

We will take on bold challenges to grow our business, and share and return the increased profits on a greater scale to our employees and other stakeholders,

which will lead us to further growth.

Please look forward to Focus Systems growing into a company with much wider future horizons, as well as delivering higher expectations of our company to our stakeholders.

© Focus Systems Corporation

May 12,2023

Focus Systems Corporation 1

President, Keiichi Mori

Progress in the Last Decade

We pursued sound management and achieved sustained growth and profitability Net sales 2.4 times Operating income 4.3 times

Net sales
Operating
income
Operating	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
margin

Net sales (million yen)

Operating income (million yen)

Operating margin(%)

12,353	14,146	15,081	16,482	17,846	19,327	21,453	22,703	23,485	26,278	29,124
439	887	940	953	743	1,025	1,368	1,428	1,450	1,640	1,894
3.5	6.2	6.2	5.7	4.1	5.3	6.3	6.2	6.1	6.2	6.5

1. Active development of infrastructure engineers
2. Accumulation of operational know-how
3. Accumulation of technical expertise
4. Establishment of Nagoya Office
5. Creation of a comfortable work environment
6. Promotion of various collaboration and research projects
7. Listing on the First Section (currently Prime Market) of the

Tokyo Stock Exchange

© Focus Systems Corporation

1. Capturing growing demands
2. Expanding market share
3. Expanding business application domain
4. Penetrating the Tokai region market, enhancing interregional cooperation
5. Improving employee retention rate and employee productivity
6. Exploring new technology and business opportunities

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(7) Enhancing corporate governance, strengthening brand power

Business Environment and Corresponding Measures

Business Environment Surrounding the Company		Corresponding Measures
S o c i e t y a n d E c o n o m y		B u s i n e s s D e p a r t m e n t s

• Maturation of domestic market due to an aging society with a declining birthrate,Corresponding Measures
• • Promote digital transformation (DX) and expanded IT utilization in collaboration

	population decrease, and sluggish economy		with client companies and business partners
	▶ Emergence of unforeseen risks (COVID-19, natural disasters, etc.)
	▶ Promotion of work style reforms, increased awareness of working practices		▷ Enhance technical capabilities via cooperation with other companies, etc.
	▶ Code of conducts that contribute to the realization of a sustainable society
		C o r p o r a t e D e p a r t m e n t s
	becoming common practice
	I T i n d u s t r y		▷ Build systems that enable diverse talent to take on active job
	▶ Expansion of DX-related initiatives and investment by companies		roles
	▶ Further diffusion and expansion of IT utilization by companies		▷ Develop a company structure that supports diverse working
	and the general public		styles
	▶ Shortage of domestic IT talent		▷ Expand social contribution activities
	▶ Growth of venture companies with high technical capabilities

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© Focus Systems Corporation

Context of Medium-Term Management Plan

Eyeing the next stage, realize "Growth Investment," "Profitability

Improvement," and "Enhanced Returns to Employees, Shareholders, etc."

			[50th Anniversary]
			(April 2026)
		Period Covered by Medium-
		Term Management Plan
		Strengthen the Cycle of	Make further leaps as an
	Achieved sustained
	growth and profitability	Growth/Profit/Return	independent system integrator

Up to March 2023

April 2023 through March 2026

April 2026 and beyond

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© Focus Systems Corporation