Slide 1: Financial Results for Fiscal Year Ended December 31, 2022
Financial Results for Fiscal Year Ended December 31, 2022 February 2,2023 SIOS ,Corp. （Stock Code: 3744 on the Second Section of Tokyo Stock Exchange） © SIOS Corp. All rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Highlights of Business Results for the Fiscal Year Ended December 31, 2022 (FY 2022), and Key Strategies for the Fiscal Year Ending December 31, 2023 (FY 2023) 2. Review of Business Results for FY 2022 3. Appendix © SIOS Corp. All rights Reserved.
Slide 3: Highlights of Business Results for FY2022 and Key Strategies for FY2023
1. Highlights of Business Results for the Fiscal Year Ended December 31, 2022 (FY 2022), and Key Strategies for the Fiscal Year Ending December 31, 2023 (FY 2023) © SIOS Corp. All rights Reserved.
Slide 4: Highlights of Consolidated Business Results
Highlights of Consolidated Business Results (In millions of yen) FY2021 FY2022 Change %Change Results Results Net Sales 15,725 14,420 △1,305 △8.3% Operating income 358 △572 △931 － EBITDA 448 △469 △918 － ROIC 10.0% △25.1% － － Sales of our products and services for on-premise environments fell sharply
Slide 5: Key Strategies for FY 2023
Key Strategies for FY 2023 Accelerate the growth of our cloud-based business to reduce our dependence on sales of products and services for on-premise environments 1. Continue to invest in our SaaS business Expand the scope and scale of our SaaS business, which provides subscription-based services,
Slide 6: Continue to invest in our SaaS business
Continue to invest in our SaaS business © SIOS Corp. All rights Reserved.
Slide 7: SaaS Business 1: Gluegent Series
SaaS Business 1: Gluegent Series Both have achieved consistent growth in revenue, driven by our stepped-up efforts for product development and marketing. 【ARR*of the Gluegent Series (In millions of yen) 】 650 577 542 436 359 313 2017.12 2018.12 2019.12 2020.12 2021.12 2022.12 ARR: Annual Recurring R
Slide 8: SaaS Business 1: Gluegent Series
SaaS Business 1: Gluegent Series An ideal access-management system intended for zero-trust environments* Gluegent Gate IDaaS* provides a high level of security and usability, which is essential for zero-trust environments. Zero-trust environment How Gluegent Gate works Authentication and authorizati
Slide 9: SaaS Business 1: Gluegent Series
SaaS Business 1: Gluegent Series Upgraded to an end-to-end cloud-based workflow Case study in product system for contracts that covers the process from development drafting to reviewing to signing ⚫ Works with third-party e-contract services to save users the time and risks associated with contract
Slide 10: SaaS Business 1: Gluegent Series
SaaS Business 1: Gluegent Series Step up product development and marketing efforts Key initiatives for FY 2023 ⚫ Make it work better with third- ⚫ Make it work better with cloud- party services and incorporate based network, threat-detection, Product updated features to help business and device-mana
Slide 11: SaaS Business 2: Med Tech
SaaS Business 2: Med Tech An entirely cloud-based e-medical records service that assists psychiatric hospitals in implementing DX* solutions ⚫ Compliant with the next-generation standards for exchanging healthcare information between different systems ➢ Responding to the government's and healthcare
Slide 12: SaaS Business 2: Med Tech
SaaS Business 2: Med Tech Offers a wide range of features to meet every operational need mental hospitals may have. Category Feature menu of INDIGO NOTE Patient information Patient directory (inpatients and outpatients), reception, reservation, consultation management Examination SOAP notes entry, s
Slide 13: SaaS Business 2: Med Tech
SaaS Business 2: Med Tech Offers each function as a separate service to make it easy to add or update features. Its microservice architecture, under which to develop and operate services broken into smaller modules with specialized functions, makes it easy to add or update features. New features can
Slide 14: SaaS Business 2: Med Tech
SaaS Business 2: Med Tech Continue to develop and offer new and upgraded features and services, and expand the customer base Key initiatives for FY 2023 ⚫ Product development ➢ Continue to develop new and upgraded features ➢ Make it work better with third-party systems via APIs ⚫ Marketing ➢ Expand
Slide 15: SaaS Business 3: HR Tech
SaaS Business 3: HR Tech Provide end-to-end solutions for analyzing and improving employee engagement.* Cycle of achieving greater employee engagement Analyze to ⚫ It is a free-address seating identify management system. issues ⚫ Visualizes employees' attendance ⚫ It is a service to analyze levels o
Slide 16: SaaS Business 3: HR Tech
SaaS Business 3: HR Tech Increase awareness of the services among business users by improving usability and stepping up marketing efforts Key initiatives for FY 2023 ⚫ Incorporate customer feedback to Product improve its usability ⚫ Make it work better with third- ⚫ Improve its usability development
Slide 17: Bolster sales of cloud- and subscription-based versions of LifeKeeper
Bolster sales of the cloud- and subscription-based versions of LifeKeeper © SIOS Corp. All rights Reserved.
Slide 18: LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments
LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments Sales of the cloud-based version of LifeKeeper have been growing in Japan. Sales of the cloud-based version of LifeKeeper in Japan Up 19.8% YoY ⚫ Sales of LifeKeeper for cloud environments have continued to rise, while those
Slide 19: LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments
LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments The percentage of sales of the subscription-based version of LifeKeeper has been rising sharply outside Japan. Percentage of sales of the subscription-based version of LifeKeeper outside Japan ⚫ The subscription-based version
Slide 20: LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments
LifeKeeper Assists Enterprises in Making Greater Use of Cloud Environments Bolster sales of the cloud-based version of LifeKeeper both in Japan and overseas Key initiatives for FY 2023 ⚫ Product development ➢ Develop features deemed useful in cloud environments in order to provide the same level of
Slide 21: Restructuring of Business Operations/Business Forecasts for FY 2023 and Medium-Term Business Plan
Restructuring of Business Operations/Business Forecasts for FY 2023 and Medium-Term Business Plan © SIOS Corp. All rights Reserved.
Slide 22: Business Forecasts for FY 2023 and Medium-Term Business Plan
Business Forecasts for FY 2023 and Medium-Term Business Plan As the Group's revenue comes largely from the sales of products and services intended for on-premise environments, its business performance tends to be significantly affected by external factors beyond its control, such as corporate custom
Slide 23: Cash Dividends for FY2022
Cash Dividends for FY2022 24th term 25th term Fiscal Year Ended Fiscal Year Ended December 31,2021 December 31,2022 ¥15 Annual dividend rate (Ordinary dividend: ¥10) ¥10 (Commemorative dividend: ¥5) Year-end Cash Dividend (for fiscal year ended Pay an ordinary dividend of ¥10 per share December 31,2
Slide 24: Review of Business Results for FY 2022
2. Review of Business Results for FY 2022 © SIOS Corp. All rights Reserved.
Slide 25: Consolidated Financial Results for FY 2022
Consolidated Financial Results for FY 2022 (In millions of yen) FY2021 FY2022 Change %Change Results Results Net Sales 15,725 14,420 △1,305 △8.3% Gross profit 4,884 4,666 △217 △4.5％ Operating income 358 △572 △931 － Ordinary income 400 △499 △899 － Profit (loss) attributable to 367 △639 △1,007 － owner
Slide 26: Consolidated Net Sales
Consolidated Net Sales （In millions of yen） 15,725 14,420 Down 8.3% YoY FY2021 FY2022 © SIOS Corp. All rights Reserved. 26
Slide 27: Consolidated Operating Profit, EBITDA, and R&D Spending
Consolidated Operating Profit, EBITDA, and R&D Spending （In millions of yen） 838 638 ⚫ R&D expenses increased by 358 448 ¥199M YoY. ⚫ EBITDA decreased by ¥918M YoY. △469 △572 FY2021 FY2022 Operating Profit EBITDA R&D Spending © SIOS Corp. All rights Reserved. 27
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets （In millions of yen） As of December 31, 2021 As of December 31, 2022 Total liabilities 4,752 Total Current Current liabilities (including assets 5,774 assets 5,195 4,778 interest- (including (including (including bearing cash and cash and interest- debts of deposits of de
Slide 29: Analysis of Consolidated Cash Flows
Analysis of Consolidated Cash Flows （単位：百万円） 3,148 △370 80 △107 2,505 △245 Cash and cash Cash flows from Effect of exchange Cash and cash Cash flows from Cash flows from equivalents as of operating rate change on cash equivalents as of investing activities financing activities December 31,2021 activ
Slide 30: Year-on-Year Changes in Cash Flows
Year-on-Year Changes in Cash Flows （In millions of yen） Cash flows from operating Cash flows from investing Cash flows from financing activities activities activities Net amount of cash generated or ¥587M net cash generated ¥58M net cash generated ¥267M net cash used used Amount of cash Proceeds fro
Slide 31: Open System Infrastructure Business
Open System Infrastructure Business Net sales 8,716 million yen, Down 9.1％ YoY） （In millions of yen） ⚫ While perpetual license sales of LifeKeeper declined in Japan, sales were strong in the Americas, Asia, and 9,588 Oceania. ⚫ Sales of software products sourced from 8,716 Red Hat, Inc.* declined, a
Slide 32: Open System Infrastructure Business
Open System Infrastructure Business -13 million yen, compared with a profit Segment income of 352 million yen the year before （In millions of yen） 352 Segment profit was down YoY, due to decreased sales and increased personnel expenses. △ 13 FY2021 FY2022 © SIOS Corp. All rights Reserved. 32
Slide 33: Application Business
Application Business Net sales 5,691 million yen, Down 7.2％ YoY） （In millions of yen） ⚫ Revenue from the sales of the Gluegent series and software applications for MFPs* 6,136 was up YoY. 5,691 ⚫ Sales of the management support system were slow to financial institutions because of delays and reasses
Slide 34: Application Business
Application Business -570 million yen, compared with a profit Segment income of 4 million yen the year before （In millions of yen） 4 Posted a segment loss, due to decreased sales, increased personnel expenses, and increased investments in new products and services. △ 570 FY2021 FY2022 © SIOS Corp. A
Slide 35: Appendix
3. Appendix © SIOS Corp. All rights Reserved.
Slide 36: 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 is listed in the Standard Market of the Tokyo Stock Exchange, and serves as a holding compan
Slide 37: Glossary
Glossary Page Term Description A business model that charges customers a recurring monthly or annual fee to access a 5 Subscription business model software product or service. A failover software product that automatically switches a failed primary server to a backup 5 LifeKeeper server. Service pro
Slide 38: Glossary
Glossary Page Term Description Software products sourced from Open-source software products developed by Red Hat, Inc., a provider of open-source 31 Red Hat, Inc. solutions. A multifunction printer (MFP) is a piece of office equipment that incorporates print, scan, Software applications for 33 copy,
Slide 39: Cautionary Statement and inquiries
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. We caution that significant risks and uncertainties coul
Slide 40: SIOS
e® SIOS