Notice Regarding the Determination of Matters Concerning the Acquisition of Treasury Stock Supplementary Explanation Material

Purpose of Treasury Stock Acquisition

TIS Inc. is comprehensively promoting its business and financial strategies aiming to achieve key management indicators in its ongoing Medium-Term Management Plan (2024-2026). The treasury stock acquisition is recognized as contributing to achieving “ROE over 16%” and “EPS growth CAGR over 10%,” and the company has decided to proceed with it. In light of the rapid evolution and spread of generative AI in recent years, the Group is promoting a growth strategy that incorporates the penetration of generative AI, aiming for sustainable growth and enhancement of corporate value.

Overview of Medium-Term Management Plan and Growth Strategy

The Medium-Term Management Plan “Frontiers 2026” is based on the fundamental policy of pioneering frontiers, aiming for sustainable growth accompanied by added value. Key management indicators include PH operating income exceeding 350 million yen, an operating income margin of 13.1%, ROIC/ROE exceeding 13%/16%, net sales of 620 billion yen, and EPS CAGR exceeding 10%. By promoting growth strategies leveraging generative AI, the company plans to achieve core system renewals, operational efficiency improvements, and expansion of customer value, accelerating management that regards the AI industrial revolution as a growth opportunity.