Slide 1: Financial Results for the 6 Months Ended June 30, 2023
Financial Results for the 6 Months Ended June 30,2023 August 9,2023 SIOS ,Corp. （Stock Code: 3744 on Standard Market of Tokyo Stock Exchange） © SIOS Corp. All rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Summary of Consolidated Business Results for the Six Months Ended June 30, 2023 2. Key Initiatives Undertaken and Planned 3. Appendix © SIOS Corp. All rights Reserved.
Slide 3: 1. Summary of Consolidated Business Results for the Six Months Ended June 30, 2023
1. Summary of Consolidated Business Results for the Six Months Ended June 30, 2023 © SIOS Corp. All rights Reserved.
Slide 4: Consolidated Financial Results for the 6 Months Ended June 30, 2023
Consolidated Financial Results for the 6 Months Ended June 30,2023 Results for the Results for the （In millions of yen） 6 months 6 months ended Change %Change ended June June 30,2023 30,2022 Net Sales 7,256 8,066 ＋809 ＋11.2% Gross profit 2,298 2,665 ＋367 ＋16.0％ Operating income -225 -106 ＋119 － Ordi
Slide 5: Consolidated Net Sales
Consolidated Net Sales （In millions of yen） 8,066 7,256 Up 11.2% YoY 2022年度 2023年度 1H FY2022 1H FY2023 Q2累計 Q2累計 © SIOS Corp. All rights Reserved. 5
Slide 6: Consolidated Operating Profit, EBITDA, and R&D Spending
Consolidated Operating Profit, EBITDA, and R&D Spending （In millions of yen） 472 353 ⚫ R&D expenses △106 ‐106 ‐60 △60 increased by ¥118M △157 -157 -225 △225 YoY. 2022年度 2023年度 1H FY2022 1H FY2023 ⚫ EBITDA increased Q2累計 Q2累計 by ¥97M YoY. ■Operating Profit ■EBITDA R&D Spending 営業利益 EBITDA 研究開発費 © SIO
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （In millions of yen） Total Current liabilities Total assets 4,778 Current liabilities 5,195 (including assets 5,081 (including interest- 5,331 (including cash and bearing (including interest- deposits of debts of cash and bearing 2,505) 222) deposits of debts of 2,717) 17
Slide 8: Analysis of Consolidated Cash Flows
Analysis of Consolidated Cash Flows （In millions of yen） 117 259 -139 -24 2,717 2,505 Cash and cash Effect of Cash and cash Cash flows from Cash flows from Cash flows from equivalents as of exchange rate equivalents as of operating investing financing December change on cash June 30, 2023 activities
Slide 9: Cash Flow Analysis
Cash Flow Analysis Cash flows from Cash flows from Cash flows from operating activities investing activities financing activities Net cash provided or used ¥259M net cash provided ¥117M net cash provided ¥139M net cash used • Depreciation: ¥45M • Proceeds from refund of guarantee deposits: ¥47M • In
Slide 10: Open System Infrastructure Business: Net Sales
Open System Infrastructure Business Net sales 4,999 million yen, Up 16.2% YoY （In millions of yen） 4,999 Sales of our products and services for on- premise application picked up, as chip shortages 4,303 were resolved and the supply of hardware products started to clear a backlog of orders. As a resu
Slide 11: Open System Infrastructure Business: Segment Income
Open System Infrastructure Business Segment income 56 million yen, Up 270.2% YoY 56 Segment income was up YoY in 15 the Open System Infrastructure Business, driven by robust sales. 2022年度 2023年度 1H FY2022 1H FY2023 Q2累計 Q2累計 © SIOS Corp. All rights Reserved. 11
Slide 12: Application Business: Net Sales
Application Business Net sales 3,060 million yen, Up 3.8％ YoY 3,060 ⚫ Revenues from the provision of support for 2,947 system development and implementation were up, especially from the support provided for API* projects and business management systems of stock brokerage firms. ⚫ Revenues from the G
Slide 13: Application Business: Segment Income
Application Business Loss of 169 million yen, compared with Segment income on loss of 246 million yen the year before （In millions of yen） ⚫ Segment loss decreased in the Application Business due to robust sales. ⚫ Posted a segment loss due to rising personnel expenses and △169 -169 more aggressive
Slide 14: 2. Key Initiatives Undertaken and Planned
2. Key Initiatives Undertaken and Planned © SIOS Corp. All rights Reserved.
Slide 15: Key Initiatives Undertaken in the First Half of FY 2023
Key Initiatives Undertaken in the First Half of FY 2023 We took a series of actions to give a further boost to our cloud-based business. 1. Continued to invest in our SaaS business. ⚫ Gluegent series ⚫ Med tech solutions ⚫ YourDesk system 2. Bolstered sales of the cloud- and subscription-based versi
Slide 16: Gluegent Series
Gluegent Series Both achieved consistent growth in revenue, as a result of our stepped-up efforts at product development and marketing. 【ARR*of the Gluegent Series】 （In millions of yen） 690 624 574 471 381 333 2018.6 2019.6 2020.6 2021.6 2022.6 2023.6 1. ARR: Annual Recurring Revenue, obtained by mu
Slide 17: Actions to Drive ARR
Actions to Drive ARR To drive ARR, we must increase A while stemming B. Formula for ARR ARR = MRR × 12 months A B MRR = MRR for the previous month + New + Upgrade - (Downgrade + Churn) New: Revenue increase from new clients Upgrade: Revenue increase from clients who upgraded to a higher- tiered subs
Slide 18: Gluegent Series
Gluegent Series Developed new features and upgraded customer- success services to drive ARR. A. Increase revenue from new and upgrading clients ⚫ Made the Gluegent series work better with groupware. ➢ Added an automatic export function to Excel Online to make it work better with Microsoft 365. ⚫ Mad
Slide 19: Gluegent Series
Gluegent Series Received a BOXIL SaaS Award for its highly rated Gluegent Flow performance. BOXIL ⚫ Gluegent Flow received a Good Service Award in Ease of initial setting the workflow system category for the third No. 1 BOXIL Summer 2023 BOXIL consecutive year in BOXIL SaaS Award Summer Ease of use
Slide 20: Gluegent Series
Gluegent Series Glugent Gate We are developing a versatile integrated ID management system. Personal IDaaS identification IT infrastructure A. Increase revenue from new and upgrading clients Login authentication (Multi-factor Device authentication) Access We are developing a capability to be authent
Slide 21: Med Tech
Med Tech Added new features and upgraded existing ones in preparation for its full-scale commercial launch. ⚫ Product development ➢ Updated user-interface designs. ➢ Added new features and upgraded existing ones. ⚫ Marketing At the International Modern Hospital Show 2023 in Tokyo, we showcased INDIG
Slide 22: YourDesk
YourDesk Upgrading features and revamping sales teams helped bolster the sales. 【Sales of YourDesk】 Up 650.6% YoY Sales for the first half of FY 2023 soared from the same period the previous year. 2022年度 2023年度 1H Q2累計 FY2022 1H FY2023 Q2累計 © SIOS Corp. All rights Reserved. 22
Slide 23: YourDesk
Example of upgraded feature YourDesk Made it work better with Microsoft 365 and released YourDesk iPhone and Android apps. All the great features of the standalone YourDesk are now available on smartphones. Menu bar Click to view Select from a the floor variety of seating layout features on the menu
Slide 24: LifeKeeper
LifeKeeper Global sales of LifeKeeper for cloud application have been growing. 【Global Sales of the Cloud-based Version of LifeKeeper to First-time Clients 】 Up 14.8% YoY Sales of the cloud-based version of LifeKeeper have been growing globally to first-time clients who have switched their enterpris
Slide 25: LifeKeeper
LifeKeeper We have been pushing subscription-based sales of LifeKeeper LifeKeeper in Japan, which have already gained momentum outside Japan. 【Sales of Subscription-based LifeKeeper Outside Japan】 ⚫ Sales of subscription-based CAGR 67.3% LifeKeeper have been gaining momentum outside Japan, where Up
Slide 26: API Support Services
API Support Services We have been upgrading our API-related technologies since we started offering API support services in 2017. ⚫ SIOS launched API support services in 2017 in anticipation of the emergence of APIs that connect many systems to make them work with each other. ⚫ Since then, we have be
Slide 27: API Support Services
API Support Services An API economy has been gaining momentum in scope and scale. An API enables communications and data exchange among different services. A company can launch a new service by sharing data with other companies via APIs. A company uses APIs of A company makes other companies its API
Slide 28: API Support Services
API Support Services SIOS provides end-to-end assistance to corporate clients planning to launch new services in an API economy. SIOS leverages its wealth of experience and expertise in building a system in an API economy to provide corporate clients with end-to-end assistance in designing, developi
Slide 29: API Support Services
API Support Services Our revenue from API support services has been soaring after expanding the scope of our services to meet increasingly diverse corporate needs. Revenue from Our API Support Services CAGR 48.2% Up 46.0% YoY 1H FY2019 1H FY2020 1H FY2021 1H FY2022 1H FY2023 © SIOS Corp. All rights
Slide 30: Business Forecasts for FY 2023 and Medium-Term Business Plan
Business Forecasts for FY 2023 and Medium-Term Business Plan As stated in the Consolidated Financial Result for the fiscal year ended December 31, 2022, announced on February 2, 2023, the Group has been restructuring its business operations and bolstering its cloud-based business in order to make it
Slide 31: 3. Appendix
3. Appendix © SIOS Corp. All rights Reserved.
Slide 32: About SIOS Corporation
About SIOS Corporation SIOS is Innovative Open Solutions SIOS Corporation started as a system integrator that provided solutions based on Linux and other varieties of open source software. Today, the company serves as a holding company of the SIOS Group, which includes technology firms specializing
Slide 33: Glossary
Glossary Page Term Description Software products sourcedOpen-source software products developed by Red Hat, Inc., a provider of open- 10 from Red Hat, Inc. source solutions. A failover software product that automatically switches a failed primary server to 10 LifeKeeper a backup server. A mechanism
Slide 34: Cautionary Statement
Cautionary Statement Forward-looking statements about the Company’s business outlook contained in this document reflect management’s assumptions and judgments made on the basis of available information, and may include risks and uncertainties. Significant risks and uncertainties that might affect ou
Slide 35: SIOS
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