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President Message

About Management Policy

As an advanced IT service provider, our corporate philosophies are to help create an affluent society, to respond to the expectations of our affiliates including customers and shareholders, and to commit to the creation of new values for achieving constant growth. In addition, we regard our approach to social responsibility to be the basis of our management, and shall continue to actively promote this stance.
In our business deployment, our slogan is 'Your Success is Our Pride'. With a user-oriented mind, we believe it is always our mission to assist our customers to utilize IT. It is our aim to grow together with our customer.

Photo

President and CEO:
Makoto Iwahashi

About Our Profit-Sharing Policy

We belong to an IT service industry where technological and market needs are rapidly progressing. To stay competitive for the future and to increase corporate profits, an aggressive prior investment in areas such as business, technology, and product development are required.
Accordingly, profit-sharing will be determined based on our medium-and long-term business plan, whilst bearing in mind to reserve internal funds for reinvestment and to deliver stable dividends, and in comprehensive view of, such as, the company's financial status, profitability and payout ratio.
In accordance with this policy, a year-end dividend of 2,800 yen per share will be put forward for a vote at the general meeting of shareholders. There was no mid-term dividend for the present term; therefore annual dividend per share will be 2,800 yen as well.

About Policy and Guidelines for Minimum Number of Units Required for Share Acquisition

A five-for-one split on common share was performed on February 22, 2002, and the current minimum number of units required to purchase shares are considered to be adequate; therefore no further reduction of the minimum number of units is planned for now.


Medium-and long-term business strategy and forthcoming issues

1. Understanding the situation and our features:
Information systems are essential in strengthening corporate competitiveness and in acting as the infrastructure that enhances improved services and efficiency from statutory boards. As our economy makes a recovery, IT investment is likely to expand further. However, a greater expectation on the benefits of returns in investment and a stronger demand by customers for more competitive prices are predicted, thereby triggering further intense competition among service providers.
We are a SI company known to be one of the few listed service providers whose main focus in business is in the manufacturing field. With the technological skills we have cultivated through the systems that have been established for the steel-making industry, we will tackle further challenging demands from our customers and in effect, will attempt to expand our business.

2. Business strategy policy:
In recognition of the points made above, we will commit to the following guidelines.

(1) Increasing orders from the manufacturing and distribution industries:
Mainly targeting the manufacturing and distribution industries, which are our areas of expertise, we will aim to increase our orders and to expand our business by offering our unique technology solutions and services.

(2) Improving competitiveness for higher profitability:
We aim to boost our profitability by offering high value-added proposals to our customers that will offer them more advantages in IT investment, and by assisting them to strengthen cost competitiveness.

(3) Enhancing IT system support that corresponds to the business innovation of JFE group:
As a core company to contribute to the JFE group, by offering IT services, we will support the group's expansion in terms of IT, and will provide proposals of new IT systems and assist to enhance technological skills.

3. Forthcoming issues:
The following measures will be performed according to the policy of our business strategy.

(1) To 'Increase orders from the manufacturing and distribution industries':
To respond quickly to the needs of customers and to further strengthen our unrivalled advantages and expertise, we aim to shift our service/product-based business to a customer/specific industry-based business. (Our organization has been renewed on April 1, 2005)
Through closer coordination with our company partners, we will aim to receive more orders from our targeted industries of manufacturing and distribution, to complement the technologies/expertise, which our company requires.

(2) To 'Improve competitiveness for higher profitability':
We will study our own unique tools and methods, such as the higher productivity development methods and packages, and will develop high value-added IT systems in a short period of time and at a low cost.

Through closer coordination with partners, we will try to be flexible in our responses to development plans and to yield higher efficiency in building our systems. With improved project management, we will endeavor to prevent the existence of unprofitable businesses.

(3) To 'Enhance IT system support which corresponds to the business innovation of JFE group':
To maximize the integration process for JFE Steel Corporation, we will ask for suggestions after the integration process, in relation to what will benefit their newly built infrastructure.
We will expand IT system support for JFE group, and include system replacement and expansion of outsourcing demand.

Extracted from the short report of consolidated financial settlement of March 2005.


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