Sios Corp · TSE:3744

Sios — H1 2024 Earnings Presentation

38 slides from Sios's earnings presentation, Aug 8, 2024

  1. Slide 1: Financial Results for the 6 Months Ended June 30, 2024

    Financial Results for the 6 Months Ended June 30,2024 August 8,2024 SIOS ,Corp. （Stock Code: 3744 on Standard Market of Tokyo Stock Exchange） © SIOS Corp. All rights Reserved.

  2. Slide 2: Table of Contents

    Table of Contents 1. Summary of Business Results for the Six Months Ended June 30, 2024 2. Consolidated Financial Guidance for FY2024 3. Progress of Growth Strategy for FY2024 4. Appendix © SIOS Corp. All rights Reserved.

  3. Slide 3: 1. Summary of Business Results for the Six Months Ended June 30, 2024

    1. Summary of Business Results for the Six Months Ended June 30, 2024 © SIOS Corp. All rights Reserved.

  4. Slide 4: Consolidated Financial Results for the 6 Months Ended June 30, 2024

    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 30,2024 30,2023 Net Sales 8,066 11,804 ＋3,738 ＋46.3% Gross profit 2,665 2,667 ＋1 ＋0.1％ Operating income -106 -18 ＋87 － Ordina

  5. Slide 5: Consolidated Net Sales

    Consolidated Net Sales （In millions of yen） 11,804 8,066 Up 46.3% YoY 2023年度 2024年度 1H FY2023 1H FY2024 Q2累計 Q2累計 © SIOS Corp. All rights Reserved. 5

  6. Slide 6: Consolidated Operating Profit, EBITDA, and R&D Spending

    Consolidated Operating Profit, EBITDA, and R&D Spending （In millions of yen） 472 320  R&D expenses 6 increased by ¥152M YoY. -18 △18 △60 -60 △106 -106 2023年度 2024年度  EBITDA decreased 1H FY2023 1H FY2024 Q2累計 Q2累計 by ¥67M YoY. ■Operating 営業利益 Profit ■EBITDA EBITDA R&D Spending 研究開発費 © SIOS Corp. Al

  7. Slide 7: Consolidated Balance Sheets

    Consolidated Balance Sheets （In millions of yen） Total Current liabilities Total assets 7,298 Current liabilities 7,497 (including assets 5,741 5,518 (including interest- (including (including cash and bearing cash and interest- deposits of deposits of debts of bearing 3,063) 2,604) 143) debts of 18

  8. Slide 8: Analysis of Consolidated Cash Flows

    Analysis of Consolidated Cash Flows （In millions of yen） 491 55 △8 3,063 △79 2,604 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, 2024 activities ac

  9. 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 ¥491M net cash provided ¥8M net cash used ¥79M net cash used • Increase in profit • Proceeds from sale of before income taxes: investment securi

  10. Slide 10: Open System Infrastructure Business

    Open System Infrastructure Business Net sales 8,798 million yen, Up 76.0% YoY （In millions of yen） 8,798  Sales of software products sourced from Red Hat, Inc.*, jumped substantially to fulfill major project orders.  Sales of LifeKeeper* were up YoY, due to 4,999 strong perpetual license sales in

  11. Slide 11: Open System Infrastructure Business

    Open System Infrastructure Business Segment income 94 million yen, Up 66.6% YoY （In millions of yen）  Sales of software products sourced from Red Hat, Inc., were bolstered by major 94 project orders, but had little impact on the Group’s profitability as those were low- 56 margin projects.  Robust

  12. Slide 12: Application Business

    Application Business Net sales 3,005 million yen, Down 1.8％ YoY （In millions of yen）  Revenue in the API* Solutions Business achieved solid growth, as our engineering strengths in the field of API economy met 3,060 3,005 surging business needs.  Revenue from the Gluegent series* achieved steady gr

  13. Slide 13: Application Business

    Application Business Loss of 114 million yen, compared with Segment income on loss of 169 million yen the year before （In millions of yen）  This segment posted a loss due to decreased revenue from the provision of support for system development and implementation to financial institutions and unive

  14. Slide 14: 2. Consolidated Financial Guidance for FY2024

    2. Consolidated Financial Guidance for FY2024 © SIOS Corp. All rights Reserved.

  15. Slide 15: Update Business Forecasts for FY2024

    Update Business Forecasts for FY2024 Earlier Forecasts （In millions of yen） Update (announced Forecasts % Change February 8,2024) Net Sales 16,600 20,000 +3,400 Gross profit 250 250 － Operating income 330 330 － Ordinary income 220 220 － Profit attributable to owners of parent 310 310 － EBITDA 11.6%

  16. Slide 16: Cash Dividends for FY 2024

    Cash Dividends for FY 2024 27th term 28th term Fiscal year ended Fiscal year ended December 31, 2024 December 31, 2023 (Forecast) Annual cash dividend per ¥５ ¥10 share (unchanged) We intend to provide a steady level of dividends to our shareholders, while taking into Our dividend consideration the G

  17. Slide 17: 3. Progress of Growth Strategy for FY2024

    3. Progress of Growth Strategy for FY2024 © SIOS Corp. All rights Reserved.

  18. Slide 18: Growth Strategies for FY 2024

    Growth Strategies for FY 2024 We will continue to focus on our SaaS* and subscription-based* businesses while developing new businesses into growth drivers. 1 Continue to invest in our SaaS and subscription-based businesses 2 Expand our API solutions business Maximize the benefits of generative AI*

  19. Slide 19: Gluegent Series

    Gluegent Series Standardizes workflows and helps achieve greater enterprise productivity.  Enables the submission, (1) Submit a draft contract (2) Manabers to consult and (3) Decision- maker to approve review, and approval of for review and approval review it and authorize it requests anytime, anyw

  20. Slide 20: Gluegent Series

    Gluegent Series IDaaS* solution for single sign-on (SSO)*, multi- factor authentication, and integrated ID management Personal IT infrastructure identification Login authentication Device (Multi-factor Cloud-based services authentication authentication) Access （SaaS） Access control Access points API

  21. Slide 21: Revenue from the Gluegent Series

    Revenue from the Gluegent Series Enhanced product development and user support have been keeping the ARR of the series on a solid growth path. 【Combined ARR of Gluegent Flow and Gluegent Gate】 （In millions of yen） 624 529 460 Combined ARR for FY 2023 was 404 Up 18.0％ YoY 326 249 Gluegent Flow Gluege

  22. Slide 22: Actions to Drive ARR

    Actions to Drive ARR Action: Work more closely with partner resellers and upgrade feature sets New Revenue increase from new clients Increase Revenue increase from clients who upgraded to a Upgrade higher-tiered subscription plan Revenue decline from clients who downgraded to a Downgrade lower-tiere

  23. Slide 23: Awards and Recognition Accorded to the Gluegent Series

    Awards and Recognition Accorded to the Gluegent Series Received many awards for providing an exceptionally high level of customer satisfaction.  In the BOXIL SaaS AWARD 2024¹, Gluegent Flow was top rated in the Case Studies category for small and medium-sized businesses².  Gluegent Flow was also r

  24. Slide 24: LifeKeeper

    LifeKeeper High-availability cluster software for preventing a system failure from impeding business operations  LifeKeeper monitors system operations, and when it detects a failure of a Primary system Backup system primary system, it automatically switches to a backup system to keep the Automatic

  25. Slide 25: Global sales of LifeKeeper for cloud application have been growing

    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 20.9% YoY Sales of the cloud-based version of LifeKeeper have been growing globally to first-time clients who have switched their enterprise

  26. Slide 26: Subscription revenue of LifeKeeper has been following a growth path outside Japan

    LifeKeeper Subscription revenue of LifeKeeper has been following a growth path outside Japan. 【Subscription Revenue of LifeKeeper Outside Japan】 Revenue for FY 2023: Up 8.5％ YoY CAGR: Up 43.4％ Sales of subscription-based LifeKeeper on the flat-rate and pay- per-use bases have continued to grow outsi

  27. Slide 27: API Solutions Business

    API Solutions Business API stands for application programming interface, which is a set of protocols that enables different software programs and applications to share functions. Example of How APIs Work in Business  A company can launch a new API service by sharing data with Map app other companie

  28. Slide 28: API Solutions Business

    API Solutions Business Our dedicated API infrastructure team uses their wealth of professional business and API knowledge to assist corporate clients in designing, developing, operating, and supporting API solutions. One-Stop API Solutions STEP 1 STEP 2 STEP 3 STEP 4 Assisting in Assisting in Assist

  29. Slide 29: API Solutions Business

    API Solutions Business Our sales growth has been driven by stepped-up sales efforts and the expansion of service offerings. Step up sales  Worked more closely with system developers and consulting firms to efforts attract new corporate clients.  Won large projects from automakers and financial ins

  30. Slide 30: Revenue in Our API Solutions Business

    API Solutions Business 【Revenue in Our API Solutions Business】 Revenue for 2023: Up 39.1％ YoY CAGR: Up 55.0％ YoY The actions discussed on the previous page have helped us grow our API Solutions Business in a robust market. 2020年度 1H FY2020 2021年度 1H FY2021 2022年度 1H FY2022 2023年度 1H FY2023 2024年度 1H

  31. Slide 31: Generative AI Support Business

    Generative AI Support Business Started offering an end-to-end solution service for generative AI, in collaboration with U.S.-based Elastic NV. SIOS has become Elastic's first distributor in Japan and started offering a solution service based on the Elastic Search AI Platform to assist corporate clie

  32. Slide 32: Generative AI Support Business

    Generative AI Support Business Use RAG technology to make generative AI more relevant to business Retrieval augmented generation (RAG) is a technique to make generative AI provide a more relevant response to a query by using searchable unpublished internal data as context. Ask Search documents gener

  33. Slide 33: Generative AI Support Business

    Generative AI Support Business Use Elastic's technology to assist corporate clients in implementing RAG successfully We provide corporate clients with an end-to-end consulting service for RAG implementation based on the Elastic Search AI Platform. Our consulting service comprises the following three

  34. Slide 34: 4. Appendix

    4. Appendix © SIOS Corp. All rights Reserved.

  35. Slide 35: 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

  36. Slide 36: Glossary

    Glossary page Term Description Software products sourced 10 Open-source software products developed by Red Hat, Inc., a provider of open-source solutions from Red Hat, Inc. 10 LifeKeeper A failover software product that automatically switches a failed primary server to a backup server A set of proto

  37. Slide 37: 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

  38. Slide 38: SIOS

    e® SIOS

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