LTS : Q1 FY2022 Financial Results(Presentation Material)

Open

Q1 FY2022

Financial Results

(Securities code 6560)

5/2022

LTS, Inc.

Open Copyright ©2022 LTS Inc. All rights reserved.

1

Table of Contents

1. Business Overview
2. Overview of Q1 FY2022 Financial Results
3. Medium-TermBusiness Plan (2021-2024)
4. Forecast for FY2022
5. Reference Material

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2

Services

Service(s)

Mission

Synergy of services	Customers	Profit model

Professional	Strategy establishment
services	/ digital utilization
Business process
business	management
Consulting
	/engineering
Platform	Consultant Job
business	Assign Navi

CS Clip

Improvement of

corporate customer

capabilities to utilize digital technology and adapt to change

DX project

implementation/ maximization of value

IT industry innovation

• Establishment of business strategy and business model
• Data analysis and utilization of AI

Creation of new

projects

• Development, management, and improvement of management/business foundation (business processes)
• Planning of reform projects

Creation of DX

projects

• Comprehensive DX project support
• Development/operation of corporate customer DX platform
• Training of reform/DX human resources

Provision of

human resources

• Support for activities of independent consultants
• Matching of projects, professionals, and IT companies
• Matching of operating companies and DX companies
• Growth support for DX companies

companies) group (and corporations Major
	SMEs/communities/public services

IT service industry/c ompanies

Project-based contracts

(high gross profit)

Long-termsupport-based

contracts for corporate

customer reform/DX

Project-based contracts

(high gross profit)

Long-term contracts for

development/operation of digital

platforms

Membership dues + service fee-based

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3

Making Reform Routine

(Background behind Favorable Performance of Professional Services)

In these times, companies work on various reform, whether large, medium, or small, on a daily basis, and it is necessary not only to promote individual projects but to acquire the ability to respond to change

Before

[Accuracy over speed]

Accurate predictions and steady implementation

One-in-a- decade large- scale reform

Hierarchical organization

From now on

[Fast course correction]

Organizational ability to adapt

quickly to changes

Making reform routine

Increase ability to respond to change through daily changes

	Network-based organization
	•	Teams actively implement
		tasks
Implementation	•	Teams coordinate proactively

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4

Characteristic 1 of Professional Services Business

LTS supports the promotion of individual projects and the acquisition of the ability to respond to change

Conventional consulting/IT services

Growth support does not equal support for

success of large-scale projects

LTS professional services

Growth support equals acquiring the ability

to respond to change and support for promoting high ROI project planning

Corporate customer

Establishment of medium-

to long-term strategy

Large-scale project

• Large-scaleM&A
• Backbone system upgrade
• Group reorganization, etc.

Major IT/consulting company

Establishment of medium- to long-term plan requiring large-scale budget

Form large-scale project spanning several years to sell solutions Generate profits by increasing project size and sending large numbers of consultants

Expand sales by delaying/enlarging the project

Corporate customer

Support for coming up with a

business model

Business process/

reform program

management

IT system	Business process	AI imple-
introduction	mentation
	development
Data		Training of
analysis/utilization	Operational	reform human
	resources
	reform

LTS

Support for new business planning and process development

Support development, management, and improvement of customer's management/business foundation Plan high ROI reform projects

Form and continually execute appropriate projects according to challenges

• Large scale of measures makes them easily affected by sudden environmental changes, delaying response
• Withdraws at the end of the project and looks for a new customer with a large project
• Solves customer challenges that conform to its own solutions

• Can quickly respond to environmental changes with reform planning
• Medium- to long-term relationship with a customer that does not end with individual projects
• Launch various projects according to customer challenges and respond with a system that includes platform service members (freelancers and IT/DX companies)

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