P.34 Special Feature: Digital & AI Strategy (DAIS)

34 01. Value Creation Stories for the Future

Special Feature: Digital & AI Strategy (DAIS)

Q2. Investor and analyst perspectives

In terms of SCSKʼs growth, I understand that strengthening the offering-based model and expanding its full-stack capabilities through the integration of SI and NI will be key themes for SCSKʼs growth. Could you share the current sales mix of the offering-based model and full-stack business, the target mix for 2030, and how their current profitability compares?

Answer

Building on the strong customer relationships it has cultivated through its system integration business, SCSK has established full-stack capabilities that integrate system integration (SI) and network integration (NI) through its acquisition of Net One Systems. By addressing increasingly sophisticated customer needs, SCSK has earned recognition for its strength in designing and operating the entire system as a unified whole. It is also building systems to turn its accumulated expertise into offerings, thereby enhancing value-added services and profitability. Although we cannot disclose the sales mix, our growth strategy will be centered on two key axes: Expanding our full-stack business (FY2030: doubling profits compared with FY2025) and increasing earnings through offerings (FY2030: operating profit margin of 15% or higher).

Changing customer needs

• Accelerate digital adoption across business units
• Expect to drive transformation from management and business conception to execution and adoption

Changing competitive environment

• Emergence of competitors leveraging digital and AI technologies to lead transformation

Technological advances

• Adoption of generative AI and AI agents
• Advances in security
• Increasing network complexity

Pillar 1

New Medium-Term Management Plan “A corporate group that leads the resolution of social issues and develops a portfolio of businesses with an overwhelming presence and influence” Next Dimension 2030 Evolving into a next-generation IT company

Sumitomo Corporationʼs resources

• Business frontlines and data from around 900 consolidated operating companies across diverse industries Utilization of domain knowledge and data gained through business frontlines
• Global reach spanning 62 countries and regions Global offices and operating companies
• Digital/AI capabilities Collaboration with digital and AI group companies SC Digital Insight Edge
• CVC* network spanning five global regions Access to cutting-edge technologies and tech companies in Japan and overseas
• Global customer base of around 100,000 companies Global customer network across wide-ranging industries * CVC: Corporate venture capital

Growth of SCSK

Operating profit CAGR: 13% 14 consecutive years of sales and profit growth Operating profit Operating profit margin Operating profit margin: 15% or higher Double profit (vs. FY2025) FY2025 FY2026 FY2030 (results) (forecasts) (image)

Three measures under SCSKʼs new

medium-term management plan

1 AI-driven self-

transformation and business expansion Improve productivity and create high-value-added businesses using AI as a foundation for all business operations Major initiatives

• Productivity improvement through AI
• Business expansion in AI domains

2 Transformation into an

offering-based model Shift to an offering-based model that leverages in-house intellectual property to address customer challenges and improve profitability

• Strengthening upstream functions (consulting)
• Creation, accumulation, and standardization of intellectual property

3 Thorough utilization of

competitive advantages and strengths Leverage the strengths of Net One Systems and the Sumitomo Corporation Group to establish a competitive advantage

• Evolution of the SI & NI full-stack model
• Collaboration with Sumitomo Corporation