FUJISOFT will strive to strengthen its corporate
governance to achieve sustainable growth and enhance
corporate value over the medium to long term.

In FY2023, the Japanese economy recovered as the effects of the COVID-19 pandemic disappeared, economic activity normalized, and corporate earnings and consumer spending improved.On the other hand, the economic outlook remains uncertain due to the effects of inflation and monetary tightening in the U.S. and Europe, concerns about the outlook for the Chinese economy, and the impact on consumption in Japan of high raw material and energy prices and rising prices associated with the yen's depreciation.

The ICT services industry has a strong appetite for systems investment to expand business and strengthen competitiveness in many industries, and there is high demand for strategic systems investment to meet the trend toward "Digital transformation(DX)".
In addition, LLM such as ChatGPT is attracting attention, and tools that simplify and lower the cost of communication and information gathering are expected to emerge, leading to innovation in various fields.

Under these circumstances,The FUJISOFT Group is committed to achieving sustainable growth and value-added enhancement, and has achieved the management targets for operating profit, ROE, etc. in its medium-term management plan through the fiscal year ending December 31, 2024, one year ahead of schedule.
Following the previous year's results, we have discussed the path for future growth and formulated the "Mid-term Business Plan 2028" for the next five years.
In 2022, we also established a Corporate Value Committee to publicly announce our commitment to improving corporate value.

Main initiatives to Corporate Value
①Transformation of Listed Subsidiaries into Wholly Owned Subsidiaries
Pursuing synergy through Groupwide dynamic operation while maintaining and developing the strength of each company.

②Review of real estate business
Real estate business has been downsized. Process to liquidate real estate holdings is underway.

③Planning Capital Allocation
Planning allocation policies for the next five years with further growth investments and capital efficiency improvements.

④Establishment of Management Indicators
Aiming to improve capital efficiency, etc., by setting a non-consolidated target of "3 million yen in operating profit per capital(employee).

⑤Review of corporate governance structure
Strengthening Corporate Governance.

As we promote sustainable growth and enhance our corporate value, we have made it our important mission to contribute to the development of society through our various corporate activities.Our basic policy encompasses the concept of ESG (Environmental, Social, and Governance), and we are committed to further developing our business and fulfilling our social responsibilities.

As a result of these activities,For the fiscal year ended December 31, 2023, the SI business performed well, with net sales of 298,855 million yen (up 7.2% YoY). Selling, SG&A expenses amounted to 46,552 million yen (up 7.5% YoY), and operating profit was 20,684 million yen (up 13.2% YoY). Due to an increase in expenses related to the TOB of four listed subsidiaries and other factors, ordinary profit amounted to 19,675 million yen (up 2.4% YoY),and profit attributable to owners of the parent amounted to 11,849 million yen (up 4.1% YoY).
For the current fiscal year, an interim dividend of 68 yen per share was paid on September 8, 2023, and a year-end dividend of 34.5 yen per share (69 yen per share before stock split), for a total dividend of 137 yen per share before stock split.

We would like to ask for the continued support of our shareholders.

President & Representative Director
Satoyasu Sakashita