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Satoshi Kikuchi,President & CEO

I would like to begin by thanking our valued stakeholders for their continued support.

FY2017 was the final year of our three-year medium-term management plan that ran from 2015 to 2017. In terms of revenue, all profit items and order backlog, we managed to post the highest figures since ITOCHU Techno Science Corporation and CRC Solutions Corporation integrated their management structures.
Meanwhile, to fulfill our responsibility as a leading company in driving the advancement of the IT industry, in keeping with our mission of "leveraging IT's potential to change the future for the Global Good," we crafted a new medium-term management plan that will run from 2018 to 2020 under the banner "Opening New Horizons."

The global economy is currently in a growth phase. In the IT sector, the use of new technologies associated with digital transformation and workstyle reforms, combined with the functional expansion of network infrastructure driven by 5G adoption, hold the promise of increased investment, even in Japan. The ASEAN region is also maintaining its high rate of growth. In this environment, we need to further extend the advantages we have already established while making forays into new areas of activity to radically change the shape of the Group. The word "Horizons" reflects those aspirations.
As we head toward FY2020, we will strive to achieve Group-wide growth along four such horizons: Go Upwards! (Challenge Business Transformation), Go Forwards! (Sharpen our Advantages), Go Outwards! (New Coverage, New Region in Globe) and Consolidate Footholds! (Stabilize Management Infrastructure).

New Horizons

To "Go Upwards," we will forge partnerships for growth with customers by enhancing our application development capabilities in new ways.

To "Go Forwards," we will further extend the Group's advantages in IT infrastructure, cloud computing and other areas in an effort to expand and stabilize earnings. We aim to maintain our status is the number-one cloud-computing integrator, with the goal of establishing CTC's presence as being synonymous with "cloud" in the domestic market. We will also further reinforce our earning strength in the infrastructure and network fields while accelerating the expansion of recurring business which holds the promise of stable ongoing revenue as we have done in the areas of cloud computing and mission-critical system operating services.

To "Go Outwards," we will venture into new regions and businesses and establish businesses that will contribute to expanded future revenue. In our overseas business, we will turn our attention beyond the United States and ASEAN region to Europe and China, expanding our IT services globally with the upgrading and expansion of service and R&D bases. At the same time, we will kick-start endeavors aimed at open innovation-style business development by utilizing venture funds and expanding collaborative structures with other industries.

To "Consolidate Footholds," we will further promote initiatives aimed at human resource development and workstyle reforms, strengthening Group management and governance, and enhancing quality and customer satisfaction levels, and establish a solid management infrastructure providing the basis for all of our activities.

By pursuing these four horizons, by FY2020 we aim to achieve a number of quantitative targets: 30 billion yen in net profit attributable to CTC's shareholders, 60 billion yen in revenue from the Cloud and IT Outsourcing business, 60 billion yen in revenue from the global business, and at least 12% ROE, the indicator of capital efficiency.

quantitative targets(2020)

To meet the expectations of our shareholders and investors, we will make every effort to achieve the goals of our medium-term management plan and realize sustained growth in corporate value.
I appreciate the continued support of our shareholders and investors as we pursue this vision

June 2018
Satoshi Kikuchi
President and Chief Executive Officer

All company, product and service names indicated herein are trademarks or registered trademarks of ITOCHU Techno-Solutions Corporation or their respective owners.

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