Bit isle : Notice of Mid-Term Management Plan

Translation

This material is translation and summary form Japanese version announcing on same date. If there is difference in this material and Japanese version, please refer to Japanese versions.

September 9, 2014

Company Name	Bit-isle Inc.
(Code No: 3811, TSE 1st Section)
Representative	President & CEO	Kohei Terada
Contact	General Manager, Management Planning Division	Tomoyuki Wada
Telephone	[phone]

Notice of Mid-Term Management Plan

Tokyo, Sept. 9, 2014--To improve the three-year mid-term plan (from the fiscal year ended July 2014 to the fiscal year ending July 2016) published on September 10, 2013, the Bit-isle Group hereby announces that we have established a new three-year mid-term plan (from the fiscal year ending July
2015 to the fiscal year ending July 2017), as presented below.
1. Overview
Bit-isle Inc. faced harsh data center market conditions in the Tokyo Metropolitan Area due to worsened supply and demand arising from new data center openings in the peak period of 2012-2013.
However, from 2014 it is expected that new data center openings will decrease due to the effects of the sharp rise in construction costs, and the supply and demand situation will improve.
Despite factors that may cause temporary fluctuations in supply and demand, the data center market is expected to continue to expand owing to IT outsourcing needs to realize the concentration of management resources and cost reductions, advance in communication technology, the evolution and diversification of
devices and cloud computing, and other needs related to data centers.

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Translation

This material is translation and summary form Japanese version announcing on same date. If there is difference in this material and Japanese version, please refer to Japanese versions.

In addition, we expect that there will be greater willingness to invest in the dispatch of system engineers, system development and other IT-related businesses, coupled with an improvement in domestic business confidence.
On the other hand, the substantial rise in the unit prices of electricity in recent years has imposed a heavy burden on data centers, which require vast amounts of electricity. However, the Bit-isle Group considers the measures for the spread of renewable energy facilities, the electricity system reform and the other initiatives being promoted by the government as business opportunities, and actively engages in the energy business toward a future system for the supply of affordable electricity.
Based on the circumstances above, we will perform the following actions.
i. Approach new customer groups through the opening of and sales by the 5th Data Center with high competitiveness
ii. Propose an IT infrastructure environment that is optimal for customers through cooperation with cloud service providers and the promotion of an increase in client companies
iii. Strengthen the sales system, particularly by increasing the number of sales staff
iv. Continue to develop and expand the businesses of the individual companies of the Bit-isle
Group and promote contribution to profits
v. Develop and resale mega solar facility aggressive
vi. Implement the energy business toward the firm establishment of a system for the supply of affordable electricity
Based on the above list, the Bit-isle Group will unite as one and aim to become a comprehensive IT
outsourcing company that is able to provide greater than ever added value.

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Translation

This material is translation and summary form Japanese version announcing on same date. If there is difference in this material and Japanese version, please refer to Japanese versions.

2. Plan figures (unit: million yen)

FY2014/7 (Results)	FY2015/7 (Plan)	FY2016/7 (Plan)	FY2017/7 (Plan)
N e t S a l e s	17,601	23,700	26,000	29,000
Operating Inco me	2,705	2,600	3,200	4,500
O r d i n a r y I n c o m e	2,431	2,350	2,900	4,200

Reference: Other management plan (unit: million yen, rack, %)

FY2014/7 (Results)	FY2015/7 (Plan)	FY2016/7 (Plan)	FY2017/7 (Plan)
Number of racks in o p e r a t i o n	4,282	4,552	4,992	5,442
Number of racks in i n s t a l l e d	6,073	7,513	7,513	7,513
U t i l i z e r a t e	71%	61%	66%	72%

(Note on data handling)

The matters regarding the sales forecasts mentioned in this article, particularly the passages regarding references were written based on the information available up to the day this article was published. Due to various factors, the actual conditions may differ from those presented in the article.

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