IDホールディングス · Monthly Stock Prices and Trade Volume Chart 59.7％ Market capitalization ¥12,827 million (as of 2019/5/31) *1 We calculate the stock price for from

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1©2019 ID Holdings Corporation. All Rights Reserved.©2019 ID Holdings Corporation. All Rights Reserved.

4709

April 1, 2018 - March 31, 2019

President and Representative DirectorMasaki Funakoshi

TSE 1st sectionCode

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2©2019 ID Holdings Corporation. All Rights Reserved.

1 New Topics

2 FY2018 Performance Overview

3 Next 50 Episode I: Awakening!

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AI FactoryK.K. PuraidoFess

ID America ID Myanmar

ID Wuhan ID Singapore

With a view to overall optimization, the Group will optimize management resources and invest in growth markets, including through acquisitions.

Formulating operating strategy and executive authority are delegated to operating companies, enabling faster, more customer-focused decision-making.

The next generation managers can be developed by delegating authority to the operating company.

Expanding Corporate Value: The Shift to a Holding Company Structure in April 2019

To achieve further sustainable growth and maximize Group-wide corporate value, the ID Group is building a new management structure that separates Group Management from Business Execution.

1. Group growth strategy

2. Speedy decision-making

3. Training the next generation managers

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*Board of Directors consists of 6 (2 external)

*Board of Auditors consists of 4 (3 external)

Corporate Governance System

General Meeting of Shareholders

Board of Auditors

Internal Audit Office

Board of Directors

Representative Director

Group Management Meeting

Group Companies Hotline (Internal)

Integrex Inc.Yoshinobu Nakamura

Law OfficeE Partner Inc.

Accounting Auditor

Group Audit Meeting

Designated Remuneration Committee

Executive Committee

Group Risk Management Committee

Information Management Committee

Communication Committee

Harassment Committee

Brand improvement Committee

Appointment/Dismissal Appointment DismissalAppointment Dismissal

ID Group

Cooperation Support

Supervision

Cooperation

Report

Instruction

Audit/Supervision

Hotline(External)

Cooperation

Financial AuditAudit

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ESG Initiatives①

As an information service company that supports social infrastructure,

we will continuously work on various issues of Environmental, Social, and

Governance.

AI FACTORY CO., LTD. --The special subsidiary

Social Contribution through Sponsorship and Support

AI Factory Co., Ltd. was established in 2014 as an ID Group company with the goal of promoting the employment of people with disabilities.

AI Factory grows leafy vegetables and was certified as a special subsidiary in 2016.

Official partner of the SAILING Team JAPAN operated by the Japan Sailing Federation

Support for mine clearance activities

Sponsorship of Venture Café Tokyo, a community for promoting innovation

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Support for Education, Artistic Activities, and Cultural Activities

ID Group supports the activities of Tsuruga Wakasonojo XI, a master of Shinnai Jorurinarrative song, who is designated as an Important Intangible Cultural Property (Living National Treasure), as well as the activities of the Spain Guitar Association of Japan.

10 Concerts sponsored in FY2018

Sponsor the scholarship at the Huazhong University of Science and Technology

Manage the fund for Japanese language classes at the Hubei University of Economics

Sponsor the Japanese language scholarship system at Jianghan University

Accepting international students into our student dormitory

Research grants for cultivating the next generationsupport the research of the

clinical psychologist Keiko Iwamiya, Professor of Shimane University.

ESG Initiatives②

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Feb.

Apr.

Mar.

May

Jan.

8th Trust setup of common shares by major shareholders and changes in major shareholders (planned)

8th Results of evaluation of effectiveness of the Board of Directors

22nd Participation in the Consortium of Non-smoking Promoting Companies

1st Notice of completion of shift to a holding-company structure through company split

18th Revision of Basic Policy on Overhaul of Internal Control Systems

1st Launch of Operations of the Tokyo Branch of Myanmar Subsidiary

15th Notice of reorganization and personnel matters related to the shift to a holding-company structure

24th Approval and adoption of agenda items raised at the Extraordinary General Meeting of Shareholders regarding the incorporation-type company split plan and partial revision of the Articles of Incorporation, related to the shift to a holding-company structure

New Topics (2019)

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New Topics (2018)

Oct.

Nov.

Dec. 28th Interview of Funakoshi was published on the Shareholders' Handbook Vol.Jan.2019, a magazine specializing in stock investment.

11th Classic concert was hosted as a part of Mécénat

7th Sponsor of The Little Singers of Paris Concert

29th Investment in venture capital「GoAhead Ventures II.L.P.」

16th Certified as the Companies with Greatest Improvement in IR by Japan Investor Relations Association

8th Managed security service for Seceon OTM launched

1st Sponsor of ASOCIO Digital Masters Summit 2018

31st Notice of transition to holding-company structure by means of incorporation-type company split, partial revision of articles of incorporation and setting of record date for convocation of extraordinary general meeting of shareholders

31st RPA Business Reform Service launched

26th Revision of consolidated financial results forecast (upward) of FY2018

5th Joining of the Hague Security Delta, the Kingdom of the Netherlands, as the first Japanese company

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Apr.

Jun.

Jul.

Aug.

Sep. 26th Beach clean volunteer activities

18th Investment in venture capital「ff Graphite (ⅴ)，L.P.」

31st Memorandum of agreement concerning agile development with Irish ActionPoint Technology Group

31st Started collaboration with Keio University in the field of cybersecurity

26th Certified as gender equality promoting and female workforce promoting company

23rd Certified as AWS partner

11th Classic concert was hosted as a part of patronage of arts

25th Award from the Chinese government for ID’ s overseas subsidiary

14th Delay of transition to holding company structure, removal of this item from the agenda of shareholders meeting and reduction in directors’ remuneration

24th Support the environment development project of Mt. Daisen 1300 Years of History festival

16th Awarded The Fifth IR Good Visual Award

3rd Collaboration agreement with Indica Holding B.V. in the Netherlands

New Topics (2018)

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1 New Topics



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Continuous growth for 7 fiscal years

⊕ Increase in sales

⊕ Profitability increased due

to sales efforts.

⊕ Productivity increased due

to project management improvement

⊕ The synergy effect of Fess

Co., Ltd

⊝ The cost due to the

relocation of Fess. Co., Ltd.

⊝ The provision for product

warranties due to the former software development, etc.

Financial Results

・Operating Income

・Ordinary Income

・Net income attributable to owners of parent +65.2％YoY

・Net Sales

System Operation Management ¥16,108 million (+18.5% yoy)

⊕ The contribution of Fess Co., Ltd.

⊕ Sales in public-sector-related platform development operations increased

⊝ Sales in finance-related platform development operations decreased

⊝ Sales in finance-related system operations and management business

decreased

Software Development ¥9,282 million (+9.2% yoy)

⊕ Sales increased on account of augmented orders in public-sector-related

projects

⊝ Sales decreased in finance-related and transport-related projects

Other ¥1,124 million (+0.5% yoy)

⊕ Consulting sales increased

⊝ Cybersecurity-related sales decreased

Net Sales Operating Income

Reaching an all-time high

+14.3％YoY

+32.9％YoY

+35.3％YoY



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Financial Results (consolidated)

（\ million） Results (% of net sales) Results (% of net sales) Diff. YoY

Net sales 23,207 - 26,515 - +3,307 +14.3%

　Cost of sales 18,758 80.8% 20,917 78.9% +2,159 +11.5%

Gross profit 4,448 19.2% 5,597 21.1% +1,148 +25.8%

　SG&A expenses 3,193 13.8% 3,930 14.8% +736 +23.0%

Operating income 1,254 5.4% 1,667 6.3% +412 +32.9%

Ordinary income 1,274 5.5% 1,724 6.5% +449 +35.3%

Net income

attributable to

owners of parent

622 2.7% 1,028 3.9% +405 +65.2%

2018.3 2019.3

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2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3

-10.0%

0.0%

10.0%

20.0%

30.0%ID・Sales of System Operation Management(YoY) Industry・System Operation Management(YoY)

Strength of ID Group

1

32.0％

Average sales change rate

* Public ranking published by Forbes Magazine

76.6％

Prime contracts

Strategic partners

23.4％Others

68.0％

High ratio of customers that ranked inForbes Global 2000※

（As of March 31, 2019）

Others 4.2％

SoftwareDevelopment

SystemOperation

Management

Net Sales

System Operation Management acts as a stock business and supports business performance

AVE

7.8％AVE

0.3％

Near 80% of the contracts are prime contracts

Lehman Shock

2 3

Net Sales

¥26,515million

Actively stabilizing relation with leading companies for IT investments

35.0％

60.8％

Net Sales

¥26,515million

Sale for System Operation Management over 60%

Near 70% of the Transaction RevenueComes from Global Leading Companies

Directly understanding customer needs and creating appropriate proposals

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11,387

(52.8%)

11,337

(48.9%)

11,138

(42.0%)

6,138

(28.5%)

7,388

(31.8%)9,351

(35.3%)

4,028

(18.7%)

4,480

(19.3%)

6,024

(22.7%)

2017.3 2018.3 2019.3

Others

IT, Telecom & Service

Financial Institution

+452+11.2%

-49-0.4％

+1,250+20.4%

21,554

23,207

+1,543+34.4%

-199-1.8%

+1,963+26.6%

26,515

Feature of ID Group① (Net sales by Customer)

(¥ million) *Figures in brackets indicate % of net sales

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16,749

(77.7%)

17,567

(75.7%)20,300

(76.6%)

4,805

(22.3%)

5,639

(24.3%)

6,214

(23.4%)

2017.3 2018.3 2019.3

Strategic partners

Prime contracts

+818+4.9%

+834+17.4%

21,554

23,207

+2,732+15.6%

+575+10.2%

26,515

Feature of ID Group② (Net sales by Contracts)

(¥ million) *Figures in brackets indicate % of net sales

Prime contracts Strategic partners

✔ Financial Institutions, Energy Transportationand Manufacturing ✔ Major IT Vendors

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Financial Position (Consolidated)

2018.3

(\million) Results Results Diff.

Current assets 8,344 9,298 +954

Non-current

assets5,404 5,301 -103

Total assets 13,748 14,600 +851

Current

liabilities5,923 5,293 -630

Non-current

liabilities207 964 +757

Total liabilities 6,131 6,258 +126

Total net assets 7,617 8,342 +724

・Net income attributable to owners of

　parent(1,028)

・Decrease in cash dividends paid(-455)

・Increase in valuation difference on

　 available-for-sale securities(+105)

Total liabilities

and net assets13,748 14,600 +851

・Increase in cash and deposits(+652)

・Increase in notes and accounts

　receivable–trade(+320)

・Increase in investment securities(+213)

・Decrease in goodwill(-254)

・Increase in interest-bearing debt(+328)

・Decrease in income taxes payable(-171)

・Increase in provision for loss on

　orders received(+34)

2019.3

Main Reasons

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8,473

1,065

0

4,000

8,000

12,000

16,000

0

300

600

900

1,200

1,500

1,800

2,100

2012/4

2012/8

2012/1

2

2013/4

2013/8

2013/1

2

2014/4

2014/8

2014/1

2

2015/4

2015/8

2015/1

2

2016/4

2016/8

2016/1

2

2017/4

2017/8

2017/1

2

2018/4

2018/8

2018/1

2

2019/4

Trading Volume(¥) Stock Price(Hundred)

Turnover Ratio 85.6% (2017.4-2018.3) (2018.4-2019.3)

Monthly Stock Prices and Trade Volume Chart

59.7％

Market capitalization ¥12,827 million (as of 2019/5/31)

*1 We calculate the stock price for from Apr.2012 to Dec.2016 using the number of revision of the stock split.*2 Volume is cumulative for each month, stock price lists closing price for each month.

Outstanding shares 12,044,302 shares (Unit: hundred)

Dec.2013 TSE 2nd Section

Sep.2014 TSE 1st Section

Jan.2017 Stock Split


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(¥ million)Plan for FY2018

(Prepared in Apr. 2016)FY2018 Diff. Plan for FY2018

(Revised Oct. 2018)

Net sales 24,000 26,515 ＋2,515 26,600

Operating income 1,680 1,667 -13 1,640

Operating income margin 7.0% 6.3% -0.7% 6.2％

This plan promoted work style reforms and promotion of three basic policies (business process reengineering (BPR), building new growth areas and strengthening consolidated management), with targets of net sales of ¥24 billion and operating income margin of 7%.

The Company achieved continuous growth for 7 fiscal years in net sales, for 6 fiscal years in operating income and for 3 fiscal years in ordinary income, including net income all reaching record levels.

0

15,000

30,000

2017.3 2018.3 2019.3

Net salesTarget Result

2.0%

5.0%

8.0%

2017.3 2018.3 2019.3

Operating income marginTarget Result

The target for net sales was achieved, primarily as a result of a favorable trend in orders received for projects to integrate systems of financial institutions and projects of system development of energy companies, as well as the conversion of Fess Co., Ltd. into a wholly owned subsidiary.

Improvement of operating income margin was improved, primarily because of work style reform and achievement of BPR. However, the final target was not achieved. 4.8% (FY2015)→5.1% (FY2016)→ 5.4% (FY2017) → 6.3% (FY2018)

(¥ million)

Review of the Previous Mid-term Management Plan: I-vision50

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1 New Topics



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Business Environment and Future Direction of ID Group

Negative Facts

- Completion of system integration at some major financial institutions

- Completion of major software development projects for energy companies

- Period of transition to DX services

Positive Facts

- Robust demand among corporate clients for advancement of DX

- Realization of high net sales through shift of the skill sets of Group engineers toward DX

- Increasing investment by customers in IT consulting and cybersecurity

- Shift from conventional services to services using digital technologies.

- New three-year Mid-term Management Plan: Focus on investment in training of DX engineers to build a growth platform for the next 50 years.

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3

NEXT

50

2

Mid-term Management Plan (Apr. 2019 – Mar. 2022)

1

3・Contributing to society through

provision of IT

・Promoting the development and deployment of diverse personnel

・Strengthening corporate governance

・Philanthropy

・Change from reliance on legacy business

to collaboration with advanced-IT.

・Human resource management (HRM)

・Continuous promotion of diversity and inclusion

・Collaboration and mutual assistance between teams of legacy-IT engineers and teams of advanced-IT engineers (smooth transition)

“ESG” stands for “environmental, social and governance.” The ESG approach holds that an appropriate response to each of these three areas of concern is a core driver of the long-term growth of an enterprise and plays a valuable role in the

formation of a sustainable society.

Next 50 Episode I: Awakening!Development of a future-oriented corporate culture

Deployment of an upgraded business model based on

digital transformation (DX)

Promotion of ESG

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Forecasts of Results for FY2019 (Consolidated)

(\million) Results (% of net sales) Plan (% of net sales) Diff. YoY

Net sales 26,515 - 26,800 - +284 +1.1%

Operating income 1,667 6.3% 1,670 6.2% +2 +0.2%

Ordinary income 1,724 6.5% 1,710 6.4% -14 -0.8%

Net income

attributable to

owners of parent

1,028 3.9% 1,060 4.0% +31 +3.1%

Net income per

share(\)93.15 - 95.64 - +2.49 -

FY2018 FY2019

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This presentation material contains statements and information about future forecasts, including financial

projections, strategies and business plans of ID Holdings Corporation.

Such forward-looking statements and information were based on the data available when this presentation

was prepared.

These forward-looking statements and information also incorporate potential risks and uncertainties caused

by changing 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

statements and information contained herein, due to competition in the industry, market demand, exchange

rates, and other socioeconomic and political factors.

Disclaimer

Documents

IDホールディングス · Monthly Stock Prices and Trade Volume Chart 59.7％ Market capitalization ¥12,827 million (as of 2019/5/31) *1 We calculate the stock price for from