Financial Results Presentation
for the Second Quarter of the Fiscal Year Ending March2022 (46th Business Year)

November 19, 2021

Focus Systems Corporation(Securities Code: 4662)© 2021 Focus Systems Corporation

Table of Contents

Financial Results for the Second Quarter of the Fiscal
Year Ending March 2022 (46th Business Year)

P. 3

Projections for the Fiscal Year Ending March 2022
(46th Business Year)

P. 15

Supplementary Information: Current Topics

P. 19

Supplementary Information: Company Outline

P. 22

2
© 2021 Focus Systems Corporation

Financial Results for the Second Quarter of the
Fiscal Year Ending March 2022 (46th Business Year)3© 2021 Focus Systems Corporation

Overview

Net sales and income both reached record highs in the first half of the fiscal year
Operating profit margin improved to 6.6% (up 0.5 percentage points from the same quarter of theprevious year)(Unit: Million yen)

FY 03/2021

FY 03/2022

Year-on-yearchangeQ1
Results

Q2
Results

Q3
Results

Entirefinancial
year
Results

Net sales

5,407

11,234

17,14923,485

6,031

12,489

1,254

11.2%

Operatingincome

322

687

1,126

1,450

302

821

133

19.4%

Ordinary
income

328

699

1,139

1,469

306

770

71

10.2%

216

482

774

1,025

204

522

39

8.1%

Q1
Results

Q2
Results

AmountRatio

Current quarter

Net
income© 2021 Focus Systems Corporation

4

Main indicators

All indicators are exceeding 50% against the planfor fiscal year

(Unit: Million yen)

Net sales
Plan for Fiscal Year

24,5006,458

12,489❙ In the second quarter, business progressed steadily despite thefifth wave of the COVID-19 pandemic.
❙ The company as a whole was able to turn around the decline inprofit in the first quarter by aggressively developing new business.

Q1

Operating income
Plan for Fiscal Year

519

Q2

Plan for Fiscal Year

821
Progress rate

302

Q1

1,480

Ordinary income

55.5%

Q2 Total

464

Q2

51.4%

Q2 Total

Q2

Q2 Total

Net income
Plan for Fiscal Year

770
Progress rate

306

Q1

1,500

51.0%

Progress rate

6,031

318

522
Progress rate

204

Q1

1,030

Q2

50.7%

Q2 Total

5© 2021 Focus Systems Corporation

Segment Overview (1)Public sector

From the design and manufacture of social infrastructure-related systems, whose end users are mainly
government offices and local governments, through to post-system operation management andmaintenance

Both sales and profits decreased mainly due to the absence of large-scale
projects that boosted results in the same quarter of the previous year
(Unit: Million yen)

Net sales

4,000

3,822

3,632

(Unit: Million yen)Segment income

3,000Year-on-yearchange

5.0%

600

2,000
1,000
0

800

For the six
For the six
months ended months ending
March 31,
March 31,
2021
2022

Year-on-yearchange

400

12.3%

200
0

663

582

For the six
For the six
months ended months ending
March 31, 2021 March 31, 2022

❙ Business results for the first half of the current fiscal year generally progressed as planned. (A declining reboundhas been factored in.)❙ To turn things around in the second half of the year, we will continue to focus on acquiring new projects andexpanding existing projects.
© 2021 Focus Systems Corporation

6

Segment Overview (2)Enterprise business

Mainly corporate company core business systems/online system development,
network/infrastructure design/construction, RPA solutions, related operation/maintenance,and ICT consulting

Sales and profits saw growth by capturing strong system investment demand
from the private sector and local governments steadily(Unit: Million yen)

(Unit: Million yen)

Net sales

4,000
3,000

Year-on-yearchange

22.4%

2,519

3,083

2,000

Year-on-yearchange1,000
0Segment income

For the six
For the six
months ended months ending
March 31,
March 31,
2022
2021

31.7%

400
300

261

345

200
100
0

For the six
For the six
months ended months ending
March 31, 2021 March 31, 2022

❙ Strategic development of new projects in the midst of the COVID-19 pandemic has been successful. The company
has bounced back from the impact of the pandemic and is on a growth trajectory.
❙ Further enhancement of product lineups, including network security and cloud services, has aided us in capitalizingon the demand of the "new normal" as life continues with COVID-19.
7© 2021 Focus Systems Corporation

Segment Overview (3)Wide-ranging solutions

Communication control system development, embedded system development,
system development for private companies and government agencies, AI solutions,related operation/maintenance, and ICT consulting, mainly in the Tokyo, Nagoya, andOsaka areas

Both sales and profits increased due to the success of focused sales
activities targeting growth industries in the pandemic(Unit: Million yen)

(Unit: Million yen)

Net sales

3,000
2,500

Year-on-yearchange

2,000

13.4%

1,500
1,000

2,085

2,364

Segment income
Year-on-yearchange9.3%
For the six
For the six
months ended months ending
March 31, 2021 March 31, 2022

500
400
300

272

297

200
100
0

For the six
For the six
months ended months ending
March 31, 2021 March 31, 2022

❙ Across the board, the company is making steady progress with existing projects while also focusing on acquiring
new projects and steadily building results.
❙ Business opportunities are being expanded by aggressively pursuing low-code development projects.
© 2021 Focus Systems Corporation

8

Segment Overview (4)Innovation

Mainly infrastructure design/construction, mainframe construction, system development,
related operation/maintenance, in-house product manufacturing, provision of IoT solutions

Driven by stable business foundation and sales expansion of securityrelated products, both sales and profits increased(Unit: Million yen)

(Unit: Million yen)

Net sales
Year-on-yearchange

21.4%

4,000
3,000

2,807

3,409

2,000

Year-on-yearchange1,000
0Segment income

80.5%
For the six
For the six
months ended months ending
March 31,
March 31,
2021
2022

500

438

400
300

242

200
100
0

For the six
For the six
months ended months ending
March 31, 2021 March 31, 2022

❙ The business base is being further strengthened by responding to customers' issues and essential needs andexpanding development projects.
❙ Among the company's products, security-related products and solutions were the main drivers of growth in Q2.
© 2021 Focus Systems Corporation

9

Balance Sheets (B/S) (1)Substantial increase in valuation of investment securities, mainly for cross-share holdings
Main reasons for changes
Current assets: Increase in cash and deposits
Non-current assets: Increase in valuation of investment securities
Net assets: Gain on valuation of investment securities and retained earnings(Unit: Million yen)

Up 3,975

4,765[Legend]Current
assetsNoncurrent
assetsCurrent liabilities
Non-current
liabilities

Net
assets

4,572
9,813

10,333

3,335

2,173

11,063

11,45017,80821,783

13,683

7,995

17,808End of previous Fiscal Year© 2021 Focus Systems Corporation

21,783End of current second quarter10Balance Sheets (B/S) (2)Achieved a sustainable "cycle of financial strength""Securing sufficient investment capacity for business seeds" and "ensuring business sustainability"(Unit: One hundred million yen)

60

Significant improvement

Converted to practically debt free50

40

Capital surplus

1.9 billion yen

Over-borrowing

4.2 billion yen

30

20

10

COVID-19 infections

Great East Japan Earthquake'05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 '20/3 '21/3 '21/9
Interest-bearing debt

Cash and deposits
11© 2021 Focus Systems Corporation

Cash Flow (C/F)

Continued stable management with steady progress in sales activities, capital
investment, and repayment
Main reasons for changes
・Sales C/F: Net income, etc.
・Investment C/F: Capital expenditure (investment in information systems and other intangible assets), etc.
・Financial C/F: Redemption of bonds, dividends, etc.
(Unit: Million yen)

+863

▲23

▲19

4,791

3,971
Cash and cash
equivalents at the
beginning of the period

Sales
C/F

Investment
C/F

Financial
C/F

Cash and cash
equivalents at the end of
the second quarter12© 2021 Focus Systems Corporation

Changes in share price

Share price reached its highest level on June 16, 2021.
Since then the share price average has increased by 9.3% on average
6/16
Highest
price
1,350
yen

5/17
Lowes
t price
865
yen

4月
April

Average stock price

5月
May

6月
June

※終値基準
*Based on closing
price

7月
July

8月
August9月
September

Average stock price

1,010 yen (6/17-9/30)

924 yen (4/1-6/15)

Moving forward with research development of “tertiary batteries” for the future of "battery-free IoT devices"— A patent application and verification tests of a next-generation power supply bringing us closer to acarbon-neutral society —13© 2021 Focus Systems Corporation

Changes in the Number of Employees & Turnover Rate

The number of employees increased steadily due to "strengthening recruitment
activities" and "making the company more attractive to job seekers."(Unit: %)(Unit: Number of persons)

20

1,300

18

1,200

16

1,100

14

1,000

12
10

900

8

800

6

700

4

600
500

2
2009

2010

2011

2012

2013

Number of employees

2014

2015

Company turnover

2016

2017

2018

2020

Industry-wide turnover*The industry turnover rate has been excerpted from the "Survey on Employment Trends" (Ministry of Health, Labor and Welfare)*Our turnover rate is based on the fiscal year, and the industry turnover rate is based on the year.
© 2021 Focus Systems Corporation

2019

0

14

Projections for the Fiscal Year Ending March 2022
(46th Business Year)15© 2021 Focus Systems Corporation

Projections — Fiscal Year Ending March 2022 (46th Business Year)❙ Earnings forecasts for record-high sales and profits are left unchanged.
❙ For the current fiscal year, an interim dividend was paid. The annual dividend per share is expected
to be 25.00 yen.
Results of Fiscal Year
Ended March 2021

(million yen)

Projections for Fiscal YearEnding March 2022

Year-on-year change(%)(million yen)

Net sales

23,48524,500

4.3

Operating income

1,450

1,480

2.1

Ordinary income

1,469

1,500

2.1

Net income

1,025

1,030

0.5

Net income per share (yen)Dividend per share (yen)Dividend payout ratio (%)

Results of Fiscal Year Ended March 2021

Projections for Fiscal Year Ending March 2022

68.08

68.37

24.00
(Breakdown) Ordinary dividend 20.00
Special dividend
4.00

25.00
5.00
20.00

35.3

(Breakdown) Interim dividend
Year-end dividend

36.6
16

© 2021 Focus Systems Corporation

Focus Systems sincerely requests the continued
guidance and support of all stakeholders.

This document is based on information available as of November 12, 2021, and on assumptions as of thesame date concerning uncertain factors affecting future financial results.
Actual financial results may materially differ from projections due to various factors in the future.
Consequently, Focus Systems Corporation does not guarantee any certainty.
17© 2021 Focus Systems Corporation

Supplementary Information:
Current Topics

18© 2021 Focus Systems Corporation

Topics (1)Products &Services

Focus Systems has signed business partnership agreement with Osaka Prefecture— Participates in the Osaka Prefecture DX Promotion Partners program supporting the digitaltransformation of small and medium-sized businesses —Products &Services

Notice of Metis. Co. Ltd. becoming an affiliate through the equity method

Products &Services

Operational achievements even amid the pandemic resulted in expanded sales. Focus Systems
received intra-mart Award 2021 for sales performance!

Products &Services"Directional receivers" that enable more accurate positioning to enter the market— Uses phased array antenna and even supports Bluetooth 4.x —Products &Services

Focus Systems Corporation signed a distribution agreement with Terilogy Works Co., Ltd., a subsidiaryof Terilogy Co., Ltd., for the threat hunting product “ThreatSonar”— Solving business challenges and covering the shortage of high-level security personnel —Products &Services

Moving forward with research development of “tertiary batteries” for the future of "battery-free IoT
devices"— A patent application and verification tests of a next-generation power supply bringing us closer to acarbon-neutral society —Products &Services

Developing X-ray care units for the initial diagnosis of Covid-19 positive patients outside medical
facilities— Setting up infection-protection spaces and online treatment facilities —© 2021 Focus Systems Corporation

19

Topics (2)Shareholder
Information

Notice concerning application for selection of "Prime Market" as a new market segment

Products &Services

Borderless communication with the hearing impaired— UniTalker, an application developed to visualize conversations and support the hearing impaired —Products &Services

Focus Systems Corporation aims to enhance the value of all Japan university women's football
through sponsorshipTransforming the JUWFA's official media through IT support— Encompassing the fostering of business creativity and the ability to get things done, developing
students' own self-support cycles —Products &Services

Development of a new AI-based nuclear medicine method for brain examinations— Reducing radiation exposure and creating a safe and highly accurate medical environment —Products &Services

Expanded security in the new normal to meet the changing business landscape
Focus Systems signed a partnership agreement with Palo Alto Networks— Beginning on the path to becoming a value-added reseller offering a wide range of products —Products &Services

Supporting small and medium-sized forwarders with structural IT reform in the trade & logistics industry
Our trade SaaS product developed in-house "Beyond TheBook" is officially now on sale
— A cloud-based case management service that connects forwarders and shippers —20© 2021 Focus Systems Corporation

Supplementary Information:
Company Outline

21© 2021 Focus Systems Corporation

Corporate Data
Line of business

Software development and IT services
Security product development, sales, and service provision

Head office

2-7-8 Higashi Gotanda, Focus Gotanda Bldg., Shinagawa-ku, Tokyo

Business offices

Tokyo, Osaka, Nagoya

Capital2,900 million yen

Exchange listings

Tokyo Stock Exchange, First Section (Securities Code: 4662)

Employees

1,238 (as of March 31, 2021)

1977

Focus Systems Corporation established for the purpose of software development

1978

Starts doing business with Oki Electric Industry Co., Ltd., and initiates software development work onelectronic switchboards

1988

Starts doing business with Nippon Telegraph and Telephone Corporation (now NTT DATA Corporation) andbegins providing services for the development of systems for government and other public agencies

1996

OTC share registration with the Japan Securities Dealers Association (now Tokyo Stock Exchange JASDAQ
Standard)

1997

Commences business with IBM Japan, Ltd. and begins system operation/maintenance and infrastructuretechnology support business

1999

Starts information security business

2004

Starts selling products for digital forensics, a new field of information security

2015

Exchange listing changed to Tokyo Stock Exchange, Second Section

2016

Listing designation changed to Tokyo Stock Exchange, First Section© 2021 Focus Systems Corporation

22

Business Fields

23© 2021 Focus Systems Corporation

Operations

Triple FOCUS

1st FOCUS

2nd FOCUS

3rd FOCUS

System Integration

IT Services

Information Security

When implementing
information systems, Focus
Systems carries out
everything from planning anddevelopment to operationaccording to the businesspurposes of the client.

Focus Systems designs
and builds infrastructure
and provides technicaland operational support
to enhance system
availability and reliability.

Focus Systems provides
customers withinformation risk control
through information
security technologies
such as encryption, anddigital watermarks.

24© 2021 Focus Systems Corporation

The Company’s Position in the System Integration Industry
Focus Systems is an independent system integrator (SI)
Processes range from upstream to downstream and projects from small to large(including operation and maintenance after system start-up)

Upstreamprocesses
Downstream
processes© 2021 Focus Systems Corporation

We have both consulting service

Primary
contracts
Primary andsecondarycontracts
Secondarycontracts
Tertiary
contractsand management capabilities
required in the upstream processes

as well as thetechnological capabilities
required in the downstream
processes

25

The Flow of Transactions

Customers (government agencies, local governments, private sector companies)
New business start-up

Major SI firms
Long term
Robust cooperative
frameworks

Selection and mastery ofDevelopment new technologies

Profit margin improvements
through direct contracting

Stable baseBusiness partners
26© 2021 Focus Systems Corporation

Health Management
We were selected by the Ministry of Economy, Trade and Industry and the Japan Health Council
as a company with good health management in their "Corporations with Exceeding HealthManagement 2021 (large-scale corporate division)" certificate.

Support for club activities ･･･ We support the participation in club activities in order to promote employee health.
Currently around 150 employees are enrolled in 9 types of club activities.

Health maintenance seminars ･･･ To mitigate poor lifestyle habits and to prevent obesity, we sponsor seminars
dedicated to specific topics such as improving diets and preventing and improving
sleep apnea syndrome.
Includes initiatives such as "Start
Walking Today!" and "Lifestyle
Improvement Seminars"

27© 2021 Focus Systems Corporation

Work Style Reform (1)Work–Life Balance
Systems for shortened working ･･･ Systems for helping employees balance work duties with childcare or eldercare.
days or reduced working hours Employees can choose shortened working days (3 days a week) or reduced working
hours (choice of 5 hours or 6 hours per day).
*Employees are eligible for the systems until their children reach the third grade inelementary school or until they no longer are required to do nursing care.
*A combination of these systems and the flextime system is also possible.
Kurumin (child-rearing support)
certified

Usage percentage of shortened
working days/reduced working hours
after childcare leave

Percentage of employees who
return to work after child care leave

100%

43% (including men)100%

* As of March 31, 2021･･･ Re-employment is possible within 10 years of resignation due to a life event"Job Return" system(re-employment system) (marriage, childbirth, or child-rearing) or for career advancement (overseas study orchange of employer).
Flextime system ･･･ This system helps employees work based on their lifestyles.
28© 2021 Focus Systems Corporation

Work Style Reform (2)Diversity
Occupational field creation ･･･ In 2015, we began producing vegetables through hydroponics, aiming at creating new fields of
employment for persons with disabilities.
Currently, we are also promoting the development of clerical work areas. (Refer to the next page for"Changes in Responses to the Employment Rate System for Persons with Disabilities")
These initiatives are posted on our blog "Public Relations for Persons with
Disabilities (Focus NAVI)."
Focus NAVI
Public Relations for
Persons with
Disabilities

https://magazine.focus-s.com/category/news/pwd_pr/

Information exchange for ･ ･ ･ This initiative provides career planning support for young women by communicating work
female employees
styles and the like.
Eruboshi (Female employee career promotion)
We are certified as an "Eruboshi" company for being an outstanding
company based on the Act on Promotion of Women's Participation andAdvancement in the Workplace.
29© 2021 Focus Systems Corporation

Changes in Responses to the Employment Rate System for
Persons with Disabilities❙ We created new fields of agricultural and office work, and improved work environments so that a large
number of persons with disabilities could find sustained work.
❙ We provided employees with internal training programs that help deepen their understanding of working
with persons with disabilities, and strengthened systems that embrace them.
(Unit: Number counted based on rules)(Unit: Number of persons)
Above the legallyrequired number

1,300

30

Meets the legallyrequired number

1,200

28
26

1,100

24

1,000

22

900

20
18

800

16

700

14

600
500

12
'17/3
Number of employees© 2021 Focus Systems Corporation

'18/3

'19/3

Legally required number based on rules

'20/3

'21/3

Actual number based on rules

1030Company Mascot
Mascot Character"Fukue-san"In order to feel closer to the Focus Systems and the world of
information systems, we use Fukue-san to send out information about
our business, employees and the future.

31© 2021 Focus Systems Corporation