Results Presentation February 3, 2020 (C) 2020 DTS CORPORATION - PowerPoint PPT Presentation

3Q FY March 2020 Results Presentation February 3, 2020 (C) 2020 DTS CORPORATION

Consolidated Results Net sales increased ¥6,990 million year on year, reflecting the increased income in the Finance and the Corporate Solutions segments, including the sales of newly consolidated Nelito and a change of the accounting period of Digital Technologies Corporation (“DTC”). Operating income rose ¥520 million year on year, mainly due to an increase in profit resulting from higher income, despite the strategic usage of SG&A expenses and a reactionary fall in sales due to the absence of special demand for the embedded system business that had existed in the previous year. The cumulative results in the nine months under review were the highest for both net sales and operating income. Compared to Results Ratio to sales (%) / YoY Year on year (Units: 100 million yen, %) initial forecast 698.0 +69.9 111.1% 74.7% ー Net sales <678.7> <+50.7> <108.1%> * 73.6% （ -0.8pt ） 136.1 19.5% +8.8 106.9% 74.2% Gross profit <-0.5pt> <134.2> <19.8%> <+6.8> <105.4%> （ -0.4pt ） 61.0 8.7% +3.5 106.2% 73.1% SG&A expenses <-0.4pt> <59.6> <8.8%> <+2.2> <103.9%> （ -0.4pt ） 75.1 10.8% +5.2 107.5% 75.2% Operating income <-0.2pt> <74.5> <11.0%> <+4.6> <106.6%> * 76.1% （ -0.3pt ） 76.7 11.0% +5.6 107.9% 75.6% Recurring income <-0.1pt> <76.0> <11.2%> <+4.9> <107.0%> （ -0.2pt ） Profit attributable to 52.4 7.5% +4.0 108.3% 76.0% <-0.0pt> owners of parent <52.0> <7.7%> <+3.5> <107.4%> The figures in the brackets (<>) are results after adjustment for the impact of the change of DTC’s accounting period. * The progress ratio excluding the impact from the new consolidation of Nelito. (C) 2020 DTS CORPORATION 2

(Reference) Factors for the Change in Net Sales Net sales rose ¥5,070 million (up 8.1%) year-on-year when the impact of the change of DTC’s accounting period is excluded. (100 million yen) +69.9 ・ Finance and society +17.0 ・ Corporate solutions +17.4 +50.7 698.0 +19.2 ・ Operation infrastructure BPO +1.1 ・ Regional, overseas, etc. +5.2 +9.9 Change of DTC’s accounting period 678.7 New consolidation of Nelito +40.8 628.0 3Q 3Q FY 19/3 FY 20/3 3 (C) 2020 DTS CORPORATION

Non-Consolidated Results Net sales increased ¥3800 million year on year due to the increased income in the Finance and the Corporate Solutions segments. Operating income rose ¥780 million year on year with an increase in the strategic usage of SG&A expenses offset by an increase in profit resulting from higher income and the reduction of unprofitable projects. Results Year on year Ratio to sales (%)/ YoY (Units: 100 million yen, %) +38.0 108.2% ー Net sales 499.7 <+61.9> <114.2%> （ +0.1pt ） +8.2 109.0% Gross profit 99.9 20.0% <+0.0pt> <+12.4> <114.3%> （ -0.5pt ） +0.3 101.0% SG&A expenses 37.0 7.4% <-0.4pt> <+2.7> <108.1%> （ +0.7pt ） +7.8 114.3% Operating income 62.8 12.6% <+0.4pt> <+9.6> <118.2%> （ +1.0pt ） +9.6 116.3% Recurring income 68.7 13.8% <+0.7pt> <+11.4> <120.0%> （ +0.5pt ） +6.0 114.2% Net income 48.6 9.7% <+0.3pt> <+7.2> <117.6%> * The year-on-year changes are figures after adjustment for the impact of the merger with DATALINKSCORPORATION conducted in 2018. The figures in the brackets (<>) are results before the adjustment. 4 (C) 2020 DTS CORPORATION

Changes in Net Sales [Non-Consolidated/Group Companies] Non-consolidated (DTS) net sales increased ¥3,800 million thanks to the positive results of the securities and housing-related segments. Net sales of the Group companies grew ¥270 million year-on-year (excluding the impact from the new consolidation of Nelito and the change in DTC’s accounting period) as a result of the strong performance of the regional business segment. Change of DTC’s Net sales of group companies Non-consolidated New consolidation of Nelito accounting period (including consolidated adjustments) net sales Consolidated (100 million yen) 698.0 Consolidated 19.2 Consolidated 628.0 9.9 605.7 169.1 166.3 Group companies 155.5 +1,070 million yen +270 million yen (106.9%YoY) (101.7% YoY) 499.7 461.7 450.1 +1,150 million yen Non-consolidated (102.6% YoY) +3,800 million yen (108.2% YoY) 3Q FY 18/3 3Q FY 19/3 3Q FY 20/3 The non-consolidated net sales for the fiscal year ended March 31, 2018, and the fiscal year ended March 31, 2019, are figures after adjustment for the impact of the merger with DATALINKS CORPORATION conducted in 2018. 5 (C) 2020 DTS CORPORATION

Change in Operating Income [Non-Consolidated/Group Companies] Non-consolidated (DTS) operating income increased ¥780 million thanks to a rise in profit resulting from an increase in sales. Operating income of the Group companies decreased ¥230 million yen due in part to a reactionary fall from special demand for the embedded business that existed in the previous year. Operating income of group companies Change of DTC’s accounting period Non-consolidated operating income (including consolidated adjustments) (100 million yen) Consolidated * Including newly consolidated Nelito’s operating loss of 0.8 75.1* Consolidated 0.6 69.9 12.5 Group companies Consolidated 14.8 -230 million yen 57.9 +890 million yen (84.3% YoY) 62.8 (249.5%YoY) 5.9 55.0 Non-consolidated 51.9 +300 million yen +780 million yen (105.9% YoY) (114.3% YoY) 3Q FY 18/3 3Q FY 19/3 3Q FY 20/3 The non-consolidated net sales for the fiscal year ended March 31, 2018, and the fiscal year ended March 31, 2019, are figures after adjustment for the impact of the merger with DATALINKS CORPORATION conducted in 2018. 6 (C) 2020 DTS CORPORATION

Net Sales by Segments • Net sales in the Finance and Society segment grew thanks to an increase in large securities projects, government -related financial institutions, etc. • Net sales in the Corporate Solutions segment increased thanks to strong results of housing -related and other projects. • Net sales in the Operational Infrastructure BPO segment remained unchanged year -on-year when the impact of the change of DTC’s accounting period is excluded. • Net sales in the Regional, Overseas, Etc. segment grew, which was mainly attributable to strong results of the regional segment and new consolidation of Nelito. (Units: 100 million yen, Progress for Results Year on year Ratio to sales (%)/ YoY %) initial forecast 698.0 +69.9 111.1% ー Net sales 74.7% <678.7> <+50.7> <108.1%> Finance and （ -1.0pt ） 33.1% 231.2 +17.0 107.9% 74.6% <-0.0pt> society <34.1%> Corporate （ -0.4pt ） 28.5% 198.9 +17.4 109.6% 72.9% solutions <+0.4pt> <29.3%> Operation （ +0.2pt ） 188.8 27.1% +20.3 112.1% infrastructure 73.2% <-1.8pt> <169.5> <25.0%> <+1.1> <100.7%> BPO Regional, （ +1.2pt ） 11.3% 79.0 +15.1 123.8% 84.1% overseas, etc <+1.5pt> <11.6%> * The results represent net sales outside the Group and the brackets (<>) are results after adjustment for the impact of the ch ange of DTC’s accounting period. (C) 2020 DTS CORPORATION 7

(Reference) Consolidated Sales by End User Industrial Classification of METI (100 million yen) Composition Amount Year on year ratio +22.3 Finance, Insurance 233.8 34.4% 110.6% (*) Information & +3.2 171.7 25.3% 101.9% Communications (*) Manufacturing 84.8 12.5% +7.8 110.3% Healthcare, Welfare, 52.6 7.8% +1.7 103.5% Public Sector Wholesale, Retail 44.6 6.6% +3.4 108.4% Transportation, Postal 26.4 3.9% +1.1 104.6% Education, Learning 9.8 1.5% +1.3 116.3% Support Scientific Research, Professional and 7.6 1.1% -1.1 87.4% Technology Service Other 47.1 6.9% +10.5 128.8% Total 678.7 100.0% +50.7 108.1% * Includes sales in newly consolidated Nelito: up 4.8 for Finance/Insurance, and up 3.9 for Information & Communications. * The impact of the change of DTC’s accounting period is excluded. 8 (C) 2020 DTS CORPORATION

Reason for an Increase in Consolidated Operating Income Operating income rose ¥520 million due to an increase in profit resulting from higher sales, offsetting an increase in the strategic usage of SG&A expenses and a reactionary fall in sales due to the absence of special demand for the embedded system business that had existed in the previous year. (100 million yen) 3) Impact from unprofitable segments and other causes -5.0 ・ DTS +1.3 +5.2 ・ Group companies +0.3 +4.6 +1.6 -2.2 +10.2 +0.6 5) DTC’s 75.1 4) Increase in 2) Impact of change in change of SG&A expenses cost ratio (10.8%) accounting (excl. impact of 3) 74.5 period ・ Embedded system-related 69.9 (11.0%) segment -3.7 ・ DTS and others -1.3 1) Growth in (11.1%) gross profit after an increase in net sales 3Q 3Q FY 19/3 FY 20/3 9 (C) 2020 DTS CORPORATION