Explanatory material of Financial Resultsfor Q1 of the Fiscal Year Ending March 2022

August, 2021

（TSE JASDAQ：6736）
https://www.sun-denshi.co.jp
1

０. Agenda
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY）･･････････････････････････3

２

Consolidated performance
forecast･･････････････････････････9３

Measures of Suncorp group･･････････････････････････11

Copyright© SUNCORPORATION Ltd. All rights reserved.

2

１. Outline of financial results
Table of Contents

１

Outline of Financial ResultsHighlightOutline（YoY）･･････････････････････････3

２

Consolidated performance
forecast･･････････････････････････9３

Measures of Suncorp group･･････････････････････････11

Copyright© SUNCORPORATION Ltd. All rights reserved.

3１. Outline of financial results
Highlight by Business Segment for Q1 of FY March 2022
Net
Sales
Mobile DataSolutions

EntertainmentRelated

Operating
Profit

5,939

820

437

147

Ratio（％）（Unit Million yen）

Description

7.3

Profits increased due to strong orders for mobile
forensic equipment and related services, and asignificant increase in sales of digital forensic
products compared to the previous year.

17.9

Although sales fell below the previous year's level
due to the sale of the hall systems business,
productivity improvements in control boards andcontract development turned the business into aprofit. In the games business, sales and profits
increased due to a focus on the ‘Shanghai Puzzle
Game’, which has a large number of users.

New IT Business
Related

481

39

8.1

【M2M】Sales of M2M communication devices, suchas those used in vending machines, were strong,resulting in an increase in sales, while efforts toimprove cost efficiency resulted in a return toprofitability.
【AR】Sales increased, mainly due to software-basedsales, but a loss was recorded due to higher
marketing and other costs.

Corporate ex.

△11△199―

―

7,229

425

5.8

―

Total

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4

１. Outline of financial results
Consolidated PL for Q1 of FY March ended 2022 (YoY)
FY March 2021
Q1Net Sales
COGSGross Profit
SGA ex.
Include R&D
R&D ex.
Operating profit
Ordinary profit
Net lossattributable toSuncorp

FY March 2022
Q1Change（％）

5,520

7,229

30.9

1,784

1,654

△7.3

32.3％
3,736
67.6％
4,766
86.3％
1,768
32.0％
△1,030△18.7％△1,064

22.8％
5,575
77.1％
5,150
71.2％
1,899
26.2％
425
5.8％
441

△19.3％

6.1％

△895

202

△16.2％

2.7％（Unit Million yen）

Description
Due to a significant increase insales of mobile data solutions
―

△9.5Ｐ
49.2―

+9.5Ｐ
8.0

The increase was due to mobileR&D activities and a focus on△15.1Ｐ improving the analysis system.

+7.4

There was an increase in mobile,
but a decrease in all other△5.8Ｐ segments.

―+24.5Ｐ

Mobile orders remained steady.

―+25.4Ｐ―+18.9Ｐ

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――5１. Outline of financial results
Business segments information（Unit Million yen）

FY March 2021
Q1

Mobile datasolutions

Entertainmentrelated

FY March 2022
Q1

Change（％）

Net Sales

4,245

5,939

+39.9

Operating Profit△723437―

Ratio(%)―

7.3―PNet Sales

937820△12.5

Operating Profit△27147―

Ratio(%)―

17.9―PNew IT businessrelatedNet Sales

339481+41.6

Operating Profit△2839――8.1―P

Corporate Expenses

Operating Profit△251△199―

Net Sales

5,520

7,229+30.9△1,030425――5.8―P

TotalRatio(%)

Operating Profit
Ratio(%)

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6１. Outline of financial results
Consolidated B/S ( YoY )The end of March, The end of June,
2021
2021
Total Assets
Current Assets

Cash and deposit

Inventory

Fix Assets

Current Liabilities

Fix Liabilities

Net Assets

Change（％）

49,78551,484+3.4

43,64844,737

+24.9

87.6％

32,53465.3％

1,125
2.2％

6,136
12.3％

27,885
56.0％

1,079
2.1％

20,820
41.8％

86.8％

33,853
65.7％

1,648
3.2％

6,747
13.1％

28,216
54.8％

1,153
2.2％

22,114
42.9％（Unit Million yen）

△0.8Ｐ

+4.0+0.4Ｐ

+46.4
+1.0Ｐ

+9.9
+0.8Ｐ

+1.1
△1.2Ｐ

+6.8
+0.1Ｐ

+6.2+1.1Ｐ

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Description―
Mainly due to the following
increase in cash and deposits
Increase in cash and cash
equivalents of 1,319 million yen―
Increase in deferred tax assets
and other in investments andother assets
The increase in contractual
liabilities and the decrease inunearned revenue and provision
for bonuses are the main reasons.
Other increased by 62 million yen.
The increase was mainly due toforeign currency translation
adjustments and non-controllinginterests.

7

２. Consolidated performance forecast
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY）･･････････････････････････3

２

Consolidated performance
forecast･･････････････････････････9３

Measures of Suncorp group･･････････････････････････11

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8

２. Consolidated performance forecast
Consolidated performance forecast for FY March 2022

We have not decided the consolidated performance forecast
for the fiscal year ending March 2022
Financial forecast
We have been unable to finalize our consolidated business forecast for the fiscal year
ending March 31, 2022 because the procedures for listing of our consolidated
subsidiary, Cellebrite DI Ltd. on the NASDAQ Capital Market in the U.S. as a result ofthe merger between Cellebrite DI Ltd. and TWC Tech Holdings II Corp. Ltd., a special
purpose acquisition company, has not been completed, and it is difficult to reasonably
assess the impact of the COVID-19 pandemic on our business performance at thistime. We will closely monitor the trends, and if there is a significant impact on ourperformance, we will examine the details and promptly make an announcement if
timely disclosure is required.

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9３. Measures of Suncorp group
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY）･･････････････････････････3

２

Consolidated performanceforecast･･････････････････････････9３

Measures of Suncorp group･･････････････････････････11

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10３. Measures of Suncorp group
Results of FY March 2021 and Measures of FY March 2022

Converted to profitability as a result of business selection andconcentration
ResultsMeasures Acquirement of Blackbag
 Business Growth in APAC, EMEA

 Consideration of M&A toward realizing Leading company inDigital intelligence market Post Merger Integration to BlackBag
 Response to the impact from Covid-19

 Increased efficiency and reduced
costs Reduce of goods and product Transfer of the hall systems business Improvement of Development process Reducing costs and promoting a highly profitable structure Increase market share

New IT
M2M
AceReal Reinforce marketing activities of“okudake sensor” for Haccp.
 Conversion of SunDMS into a paid
service Review of AR business activities

 【M2M】Development Major New Router 【M2M】 Focus on customised development for specificapplications 【M2M】 Cloud services for a fee 【AR】 Expansion of industries and services for remote supportCorporate Implementation of businessrestructuring Raising capital Merger of Cellebrite with TWC in
preparation for Nasdaq listing Consideration toward Launch new security business Consideration of M&A opportunities for new businesses Ongoing review of business structure innovation.

Mobile datasolutions

Entertainment-related

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11３. Measures of Suncorp group
Rebuild our business portfolio

Promoting selection and concentration
Building a business structure in a new business environment
Purpose The selection and concentration of business Improvement of Financial condition
 Response in new business environment(Covid-19 etc.)

Policy Maintain profitability of Major businesses(Mobile data, Entertainment related) Focus to investments of M2M business Review of business profitability（AR, Game contents）

Execution
 In preparation for the listing of the Company's consolidated subsidiary Cellebrite
Dl Ltd. on the NASDAQ stock exchange in the United States through its mergerwith TWC (De-SPAC), the Company filed a Form-F-4 under the US Securities Actwith the US Securities and Exchange Commission, which became effective on 6
August 2021 (US Eastern Time).
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12３. Measures of Suncorp group
Mobile data solutions business

Make a difference with digital intelligence

The impact of Covid-19 has led to a re-evaluation of security risks as theworkforce becomes more remote
Making a difference by providing seamless digital intelligence solutions
Launching the Connect Global Virtual Summit to create a forum for digital
investigation leaders, eDiscovery professionals and the DFIR community tocreate a safer world
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13

３. Measures of Suncorp group
M2M business

Making safety and security "easy" with IoT/M2M
Providing added value of "remote monitoring and control" to customers who need toimprove their business, efficiency and innovation through IoT/M2M.
Differentiation of Routersand Gateways
Strengthening the functions of"SunDMS" to expand the stockbusiness

Migration to LTE (4G) for beverage vending machines
Many of the approximately 2.3 million beverage vendingmachines in Japan still use 3G connections for inventory control,
so we have started to gradually introduce 4G.
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14

３. Measures of Suncorp group
XR Business (AR and VR)

Sales promotion of remote work support solutions
Launch of AceReal Assist in February 2021

AceReal Asssit FeaturesCompatible smart glasses
AceReal One (by SunCorporation)

Support for multiple smart glasses
Adjusts to the best call quality according to thecommunication environmentWeb-based application

HMT-1, HMT-1Z1 (by RealWear)

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Everysight Smartglasses (by Everysight)

15

Explanatory material of Financial Resultsfor Q1 of the Fiscal Year Ending March 2022
Projected performance and other values in this presentation are based on information available to us as of date ofpresentation.
Actual performance may vary greatly due to risks or uncertain factors relating to subsequent economic circumstances,market situation, or competition.
All values less than one million yen indicated are rounded down.

Contact information:
SUNCORPORATION
Corporate Strategy Division
Email : ir@sun-denshi.co.jp
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