TIS (3626) Corporate presentation summary

Market opportunity and modernization strategy

• Legacy system end-of-support, rising maintenance costs and IT engineer shortages increase technical debt and constrain technology adoption and business growth.

• Modernization has two steps: remove technical debt to sustain operations, then optimize systems for DX, agility, flexibility and future business growth.

• Japan’s FY2024 modernization market is estimated at ¥1 trillion; legacy and open-legacy Java migration is ¥500 billion or more, with the direct Xenlon rewriting market at ¥110 billion or more.

• The strategy positions modernization as a growth driver for Financial IT and Industrial IT, with market CAGR above 20%.

Xenlon capabilities and track record

• Xenlon converts COBOL and other languages to Java, with high conversion rates, accuracy, performance and maintainability; six patents cover performance and maintainability.

• Rewriting is presented as reducing cost and project duration to half versus rebuilding, while minimizing risk.

• Launched in 2014, the service has been adopted by more than 10 companies; its first large-scale project migrated over 10 million COBOL steps and continued into maintenance and operations after cutover.

• The approach combines a proprietary migration tool with system-integration expertise, large-project management and support extending from project planning through post-cutover maintenance and development.

Business expansion and targets

• Industrial IT expansion adds service-oriented modernization support with JFE Steel, including operational guidance, feasibility assessment, testing and project execution support.

• Financial IT offerings expand to assembler modernization and Pega Infinity, pairing Xenlon-based back-end modernization with a flexible, low-code front end.

• Medium- to long-term business target is ¥100 billion to ¥130 billion in net sales, with aggregate net sales of ¥20 billion over three years and FY2024 net sales of ¥4.8 billion.

• Plans include expanding the modernization menu, securing recurring maintenance and operations work, and building strategic partnership business after system implementation.