Financial Results Presentation

For the Fiscal Year Ended March
2020 (44th Business Year)

May 26, 2020
Focus Systems Corporation(Securities Code: 4662)

Table of Contents

Financial Results for the Fiscal Year Ended
March 2020 (44th Business Year)

P. 3

Top Message and Projections for the Fiscal YearEnding March 2021 (45th Business Year)

P. 20

Supplementary Information: Current Topics

P. 23

Supplementary Information: Company Outline

P. 29

2

Financial Results for the Fiscal Year
Ended March 2020(44th Business Year)3

Highlights

Financial Results✓

Reached a record high in both sales and profits.

✓

Paid the first interim dividends (celebrating the new reign) since the Company’s founding.
Annual dividend changed from 20 yen to 25 yen per share of common stock, and the payout
ratio increased from 34.4% to 40.4%.

Operations✓

The Company's current businesses have expanded steadily.
・Expansion of the public sector business・IoT (new trial of location tracking system using our beacons)・Business applications (addition of solutions that support the automation of sales activities)✓

Some seeds of initiatives are in bud.
・AI (medical diagnostic imaging, the automation of teaching data creation,
the demonstration of a show using AI and AR)・Energy (“tertiary battery” joint research)4

Summary✓

The Company achieved increases in both sales and profits by making capital investment and human capital investment;
steadily winning projects and increasing the number of projects won; and strengthening its management system.

✓

The impact of the spread of the COVID-19 virus on the Company's performance for the fiscal year ended March 2020 was
marginal.
(Millions of yen)

Results of
Fiscal Year
Ended
March 2019

Plan forFiscal Year
Ended
March 2020

Results of
Fiscal Year
Ended
March 2020

Net sales

21,45321,80022,703

1,250

Operatingprofit

1,368

1,420

1,428

Ordinary
profit

1,375

1,420

874

930

ProfitYOY Change

Achievement
Against Plan
Amount

Raito

5.8%

903

4.1%

60

4.4%

8

0.6%

1,467

92

6.7%

47

3.4%

930

56

6.4%

0

0%

AmountRaito

5

Changes in Net Sales(Millions of yen)

23,00021,000

Sales have increased for the ninth straight year

19,00017,00015,00013,00011,000
9,000
7,000
5,000
FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY20206Changes in Profit

Profit has increased for the third straight year
Operating profit(Millions of yen)

Ordinary profit(Millions of yen)

Profit(Millions of yen)

1,600

1,600

1,000

1,400

1,400

900

1,200

1,200

1,000

1,000

600

800

800

500

600

600

400

400

400

200

200

100

0

0

0

800
700

300
200

FY2017 FY2018 FY2019 FY2020

FY2017 FY2018 FY2019 FY2020

FY2017 FY2018 FY2019 FY2020

Approx. Two-fold increase

Approx. Two-fold increase

Approx. 1.7-fold increase7

Summary of Segment Information(Millions of yen)

Reportable segments
Public sectorbusiness

Privatesectorbusiness

Securityequipment
business

Total

Adjustment

Amountshown on theStatement of
Income(Note 1)

(Note 2)

Net sales

7,300

14,0881,314

22,703―22,703Composition
ratio

32.2%

62.0%

5.8%

100%

―

―

Segment
profit

1,221

1,643

240

3,105

(1,676)

1,428

Composition
ratio

39.3%

52.9%

7.8%

100%

―

―

Notes: 1. The adjustment to segment profit (1,676 million yen) mainly consists of company-wide general and administrative
expenses, which are not attributed to reportable segments.
for the most part, general administrative expenses (company overheads) that are not attributable to reportablesegments.
2: Segment profit is adjusted to operating profit shown on the Statement of Income.
8

Overview by Segment (1/3)

Public Sector

End users are government agencies and local governments.
Operations span the range from making propositions, designing, manufacturing, and testing tomanaging operations and maintenance after implementing.
This segment supports society in various aspects such as financial systems, trading systems,
air traffic control systems, welfare and nursing care systems, and social insurance systems.

(Millions of yen)

Net sales

8,000(Millions of yen)Segment profit

7,000

YOY
change

5.9%

6,000
5,000
4,000
3,000

1,400
1,200

YOY
change

7.0%

1,000
800
600
400

✓

This segment continued to grow as a result of cooperation among divisions andby making its structure more profitable.

✓

It achieved an increase in profits without any major issue as it ensured project management.

9

Overview by Segment (2/3)

Private Sector
Net sales

End users are mostly companies in the private sector.
In partnership with IBM Japan, Oki Electric Industry, Softbank, TIS INTEC, and others, operations
span the range from system development and platform building to operations and maintenance fora variety of private sector businesses.
This segment engages in various types of systems such as business applications, communication
control systems, IoT systems, and systems using AI.

(Millions of yen)

15000

(Millions of yen)Segment profit

1500

13000

YOY
change

5.9%

11000
9000
7000

1700

YOY
change

6.7%

5000

1300
1100
900
700
500

✓

This segment made human capital investment (mastered new skills) andmade capital investment (set project rooms).

✓

It made strategic investments to expand its business domains. It continued to achieve increases
in both sales and profits as it secured new projects, broaden the scope of existing projects,
and won more prime contracts and subcontracts.
10Overview by Segment (3/3)

Security Equipment

This segment caters to a broad customer base across the public and private sectors.
Offerings address a diversity of customer needs spanning the range from security breachprevention measures (encryption technology and digital watermarking) to ex-post measures(digital forensics and cyber security).
The security equipment business collaborates with numerous overseas partners and focuses on
the mastery of new technologies and the development of specialists.
(Millions of yen)

(Millions of yen)

Net sales

1500

Segment profit

1300

YOY
change

4.3%

1100

400
300

900

YOY
change

200

700

24.0%

100

500

0

✓

This segment continued to achieve an increase in sales owing to strong sales of both security products
and digital forensics.

✓

It showed a decrease in profits because it prioritized increasing market share over profits due tointensified competition mainly in the digital forensic domain, and secured large-scale projects
accordingly.
11Balance Sheet(Thousands of yen)
Fiscal Year
Ended March 2019

Fiscal Year
Ended March 2020

AssetsYear-on-year decrease of 630 million yen

Current assets

9,789,684

9,835,703

Non-current assets

6,202,308

5,526,174

Property, plant andequipment

3,492,654

3,596,338

96,39050,9072,613,262

1,878,927

15,991,992

15,361,878

Intangible assets
Investments and other assets
Total assets
Liabilities

Main reason for increase:・778 million yen increase in accounts
receivable - trade
Main reasons for decrease:・961 million yen decrease in investment
securities
・719 million yen decrease in cash anddeposits

Year-on-year decrease of 409 million yen

Current liabilities

4,434,914

4,829,780

Non-current liabilities

2,450,538

1,646,197

6,885,453

6,475,977

Share capital

2,905,422

2,905,422

Capital surplus

2,138,968

2,138,968

Year-on-year decrease of 220 million yen

Retained earnings

3,249,051

3,803,203

Treasury shares(359,961)(359,961)

Valuation and translation
adjustments

1,170,358

398,267

Share acquisition rights

2,700

－

Main reason for increase:・554 million yen increase in retained earnings
brought forward
Main reason for decrease:・772 million yen decrease in valuationdifference on available-for-sale securities

9,106,539

8,885,900

15,991,992

15,361,878

Total liabilities
Net assets

Main reason for increase:・250 million yen increase in accounts payable- tradeMain reason for decrease:・445 million yen decrease in long-termborrowings

Shareholders’ equity

Total net assets
Total liabilities and net assets

12Statement of Income(Thousands of yen)

Fiscal Year Ended
March 2019

Fiscal Year Ended
March 2020

Net sales

21,453,829

22,703,906

Cost of sales

18,455,261

19,598,693

Gross profit

2,998,567

3,105,213

Selling, general and administrative
expenses

1,630,282

1,676,770

Operating profit

1,368,284

1,428,442

Non-operating income

48,18370,332Non-operating expenses

40,904

31,176

1,375,563

1,467,598

Extraordinary income－

30,840Extraordinary losses

73,98868,356

1,301,574

1,430,082

Income taxes

427,292

499,766

Profit874,282

930,316

Ordinary profit

Profit before income taxes

13Analysis of Changes in Profit(Millions of yen)・Increase in provision for shareholder
benefit program due to an increasein the number of shareholders
・Increase in taxes and dues
・Increase in education and training
expenses

Increase in income taxes
due to a rise in profits

36
107

(46)
31

Increase ingross profit

Increase in
SG&A
expenses

Changes in nonoperating income
and expenses

Changes inextraordinary
income andlosses(72)

Increasein incometaxes

Increaseof 56

Profit in fiscal
year ended
March 2019

Profit in fiscal
year ended
March 2020

874

930

14

Cash Flows
Receipts of 745 million yen(Thousands of yen)

Cash flows from operating activities

Fiscal Year
Ended
March 2019

Fiscal Year
Ended
March 2020

1,322,763

745,907

Main receipts:
・Profit before income taxes of 1,430 million yen
・250 million yen increase in trade payables
・Depreciation of 167 million yen
Main payments:
・804 million yen increase in trade receivables
・ Income taxes of 481 million yen

Payments of 587 million yen

Cash flows from investing activities(395,181)(587,629)

Cash flows from financing activities(832,644)(874,162)

Main payments:
・Purchase of property, plant and equipment
amounting to 232 million yen
・Purchase of 210 million yen of securities
・Payments of guarantee deposits of 92 million yen
Payments of 874 million yen

Net increase (decrease) in cash and cash
equivalents

94,937(715,884)

Cash and cash equivalents at beginning of
period

4,683,200

4,778,137

Cash and cash equivalents at end of period

4,778,137

4,062,253

Main proceeds:
・Proceeds from issuance of bonds of 591 million
yen・Proceeds from long-term borrowings of 200
million yen
Main payments:
・Redemption of 690 million yen of bonds
・Repayments of long-term borrowings of 582
million yen
・Dividends of 374 million yen paid
Year-on-year decrease of 715 million yen

15Changes in Share Price and Dividend(Currency: yen)

1,400
1,200

October 1, 2015
Two-for-one stock split

1,000
800
600
400
200
'14/4

'15/4

'16/4

'17/4

FY2017
Earnings per share'18/4

FY2018'19/4
FY2019FY2020

39.83

51.21

58.11

12.50

16.00

20.00

-

Plan at beginning:
12.50

Plan at beginning:
16.00

Plan at beginning:
20.00

31.4%

31.2%

34.4%

40.4%

Dividend per share

Payout ratio

'20/4

61.83
25.00
(Including interim dividend of
5.00)

16

Shareholder Composition and Number of Shares Held by Each Shareholder✓

Total number of shareholders at the end of March 2020: 7,245 (up 378 from the end of March 2019)✓

While the number of shares held by foreign shareholders and securities firms decreased, the number ofshares held by investment trusts and business corporations increased.
Two-for-one
stock split(Number of shares)

16,000,000

Reassigned
to TSE's 1st
Section

14,000,000

Introducedashareholder
benefitprogram

Exercise ofshareacquisitionrights(Number of shareholders)

8,000
7,000
6,000

12,000,000
10,000,000

5,000

Listingchanged to
TSE's 2nd
Section8,000,000

4,000

6,000,000

3,000

4,000,000

2,000

2,000,000

1,000
0

0
'11/3

'12/3

'13/3

'14/3

Individuals & others
Other domestic corporations
Securities firms
Number of shareholders

'15/3

'16/3

'17/3

'18/3

'19/3

'19/9

Financial institutions
Foreign corporations & individuals
Central government & local governments

17Composition Ratio of Net Sales by Major Customer Group
OthersNTT DATA

31.94%

Group

37.05%

Customers

Fiscal Year Ended
March 2020
Net sales (Millionsof yen)NTT DATA Group8,411

IBM Japan Group4,384

Oki Electric Industry Group

1,110

Total:

22,703
million yen

Softbank Group

2.87%

TIS INTEC Group

3.94%

Oki Electric Industry
Group 4.89%

IBM JapanGroup

TIS INTEC Group895

Softbank Group650

Others

7,251

Total

22,70319.31%✓

Increase in sales from NTT DATA Group, IBM Japan Group, and Oki Electric Industry Group✓

Significant increase in the number of orders placed by Oki Electric Industry Group
This customer group was the 5th largest group in net sales of the Company in FY2019, but became the 3rd largest in FY2020.

18

Changes in Number of Employees and Turnover✓As the mobility of IT human resources increased, the Company's turnover became high.

✓As the Company strove to strengthen its recruiting activities and to communicate its attractiveness to job-seekers, thenumber of employees increased steadily, and the Company maintained its turnover below the industry-wide turnover.

(Number of employees)

(%)

20

1,300

18

1,200

16

1,100

14

1,000

12
10

900

8

800

6

700

4

600

2

500

0
2009

2010

2011

Number of employees

2012

2013

2014

2015

Turnover of the Company

2016

2017

2018

2019

Industry-wide turnover• The turnover of the IT industry is based on the summary report on “Survey on Employment Trends” announced by the Ministry of
Health, Labour and Welfare. Such report on turnover in 2019 is not available.

19Top Message and Projections for the Fiscal YearEnding March 2021 (45th Business Year)20

Top Message

Giving back added value generated
through our corporate activities to society
As a company that provides IT technologies,
we have continued to grow while staying close to society over many years.
For our future growth, we will strive to keep improving andenhancing our operations.

過去最高
売上・利益

In the meantime, we believe that it is important to challenge new things
unflinchingly without being afraid of taking risks to create new businesses.
Challenges

We would like to keep contributing to society by giving back added value
generated through such efforts to all of our stakeholders.
The company is built on the accumulated achievements ofdelivering success stories in the past.
We would like to keep delivering success stories in to make all of our
stakeholders more excited.

Excitement

Profits

Results

President, Keiichi Mori

21

Projections✓

Given the impact of the COVID-19 pandemic, we expect to achieve net sales and profits equivalent to thosefor the fiscal year ended March 2020.

✓

For dividends, we expect to maintain 20.00 yen per share of common stock paid
during the fiscal year ended March 2020.
Results of Fiscal Year
Ended March 2020

Projections for Fiscal YearEnding 2021

YOY Change(%)(Millions of yen)

(Millions of yen)

Net sales

22,70322,8000.4

Operating profit

1,428

1,430

0.1

Ordinary profit

1,467

1,430

(2.6)

930

940

1.0

ProfitResults of Fiscal Year
Ended March 2020
Annual dividend per share (yen)Payout ratio (%)

25.00(including a 5.00 yen dividend
for celebrating the new reign)

40.4

Projections for Fiscal
Year Ending 2021
20.00

32.0

22

Supplementary Information: Current Topics

23Topics (1/5)

April 2,
2019

Joint Research with Tsukuba University of Technology on
Real Time Text Display of Conversations with Multiple Persons
for Hearing Loss Sufferers✓

This joint research aims to develop a UI which in real time converts large amounts of auditory
information, that is, who said what during the conversation, into a visual format to help hearing
loss sufferers acquire information Developing a user interface that helps the hearing impaired
to acquire information.
✓ It aims to expand the workplace and improve the environment of hearing-loss sufferers

July
17,
2019

Collaboration with Micron to Develop Systems for Implementation of
AI in Diagnostic Imaging in Clinical Trials✓

System development aimed at solving issues on diagnostic imaging in clinical trials on
medical sites. (Issues are costs involved in diagnosis, lack of diagnostic consistency, time
taken for diagnosis, etc.)✓ In the future, the system will find application in daily medical care, and will strive to alleviatesocial issues such as the shortage of trained physicians and the failure to detect pathologicalchanges.

24Topics (2/5)

Sep 2,
2019

Demonstration of Fashion Show Production Featuring AI "AI
Recognizes People’s Faces on Video to Create Digitally AlteredSpecial Effects Video in Real Time"✓We introduced an AI special effects system developed together with VRaiB Inc.
(an associated company of Focus Systems) on stage as a demonstration of concept.
✓ “AI Effects LIVE!” is a solution that recognizes not only the face of a moving subject, but also
the subject’s entire body, automatically tracking it and adding in special effects in real time.

Began Offering Sales Force Automation and Customer
Relationship Management Solution “intra-mart DPS for Sales”

Oct 18,2019✓✓This solution is designed to help visualize in real time any changes in daily business activities.
It offers companies the support most appropriate to the changing situation.
We were the first company to introduce the solution. Capitalizing on this position as a user andcustomer of the solution, we will promote and sell it.

25

Topics (3/5)

Oct 29,2019

Launch Collaborative Initiative with Osaka Institute of Technology
to Create AI Teaching Data More Efficiently—Aiming for theAutomation of Teaching Data Creation—✓

The burden of creating teaching data prevents customers from swiftly introducing AI
systems. By helping to resolve this issue, we strive to expand its AI business.
✓ We are planning to create AI teaching data for call center work, with the aim of putting thisonto the market in 2020, as part of our commitment to the generation of new solutions.

Dec
25,
2019

New Trial of Factory Logistics Solution Featuring LPWA Networkwith BLE Beacons for Wide-area Location Tracking✓✓

Using our FCS1301 or timbe BLE beacons and tracking location information very
accurately in wide-area factories enable customers to create a real-time projection ofcurrent inventory processes.
This helps reduce transit times as much as possible and streamline logistics operations tosolve issues such as a shortage of workers and to embrace more efficient working
arrangements.

26

Topics (4/5)

Feb 6,
2020

Tertiary Batteries Successfully Achieve Higher Voltage with Universityof Tsukuba and National Institute of Technology, Gunma College
Toward Realizing Power Supplies Charged by Temperature Changes✓✓

Apr 7,
2020

We succeeded in increasing electromotive force by utilizing phase change material.
Since a tertiary battery can be charged by ambient heat near room temperature, there is no needto replace or manage batteries.
The tertiary battery is considered to be one of the key technologies to realize Society 5.0,
a future society proposed by the Cabinet Office.

Join IoT Sensor and Device Partnership Program with IoT Gateway
Manufacturer Plat’Home✓

We have extensive experience in providing indoor location tracking systems for goods andpersonnel using our compact FCS1301 or timbe BLE beacons that are easily attached toclothing or carried in a pocket.
✓ We aim to boost installation numbers of our BLE beacons by strengthening our marketing,sales and support systems.

27

Topics (5/5)

May
25,
2020

Development Work Launched on AI Analysis of Coronary Artery
Imaging for Ischemic Heart Disease
✓
✓
✓

Pick
UP

With Prof. Shinke of Showa University School of Medicine's Division of Cardiology and Micron,Inc., we began research into coronary artery imaging software that utilizes AI image analysis
to examine the inside of coronary arteries in cases of coronary heart disease.
Going forward, AI image analysis is expected to be adopted on a wider scale, not only forischemic heart disease but also for many other diseases.
The goal is for the software to be put to use on-site in the medical field in 2021.

Proposal Placed on the Agenda for the 44th Ordinary General
Meeting of Shareholders to be Held on June 29, 2020, Concerning
the Abolition of Retirement Benefit Plan for Directors and theIntroduction of Restricted Stock Compensation Plan✓

As part of the review of its compensation plan for directors, the Company will provide
incentives to its directors to encourage them to enhance its corporate values consistently.
✓ The Company will further share values with its shareholders.

28Supplementary Information: Company Outline

29

Corporate Data
Line of business

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

Head office

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

Business offices

Tokyo, Osaka, Nagoya

Capital2,900 million yen

Exchange listings

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

Number of employees

1,203 (as of March 31, 2020)

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)and begins 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 andinfrastructure technology 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 Section30

Business Fields

31

Operations

Triple FOCUSES

1st FOCUS

2nd FOCUS

3rd FOCUS

System Integration

IT Services

Information Security

The Company designs andbuilds infrastructure andprovides technical andoperational support toenhance system availability
and reliability.

The Company provides
customers with information risk
controls through information
security technologies such as
digital forensics, encryption,and digital water marks.

The Company provides
comprehensive system integration
at the introduction of information
systems, spanning the range frominformation system planning anddevelopment consistent withcustomers' business purposes tosystem operations.

32

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 operations and maintenance after system implementation)

We have both theUpstreamprocesses

Primary contracts

consulting service
and management capabilities
required in the upstream processes, andPrimary and secondary
contracts
Downstream
processes

Secondary contracts
Tertiary contracts

technological capabilities
required in the downstream
processes

33

Transaction Flow

Customers(government agencies, local governments, private sector companies)

New business creation

Major SI firms

Development

Selection and mastery of newtechnologies
Profit margin increase throughdirect contracting

Long term
Robust cooperative frameworks

Stable baseBusiness partners
34

Strengths by Segment

Stable business base of the Company
Public sectorbusiness

・Participation in diverse systems that span long periods of time・Periodic lifecycle (responses to legal changes, system renewals)
・In-depth expert knowledge and ample track record accumulated over many years

Business development and expansion
Private sectorbusiness・Wide-ranging business fields(smartphones, automotive, cloud, AI, RPA, business applications, and more)・Trend toward ICT-driven productivity enhancement in times of negative
population growth keeps markets expanding

Value-added technologies
Securityequipment
business・Ownership of rare "digital forensics" technology
・Ownership of encryption and digital watermarking technologies
・Such technologies have been introduced to many entities including the Ministryof Defense, National Police Agency, Financial Services Agency, and central
government ministries and agencies

35

Status of Group Companies

Customers

Focus Systems Corporation

Inos Co. Ltd.
Head office: Kumamoto City, Kumamoto Prefecture
Business line: Software development
1. Business applications
2. Web applications
3. Group ware
4. Industrial control
5. Software package products(Inos is in charge of C4 Backup/400 development.)

VRaiB Inc.
Head office: Chuo Ward, Tokyo
Business line: Software development
1. VR and AI applications
2. Blockchain
3. Information Security
4. Intellectual property rights

Affiliated companies (as of March 2020)
Company name

Equity (%)

Net sales(thousands of yen)

Ordinary profit(thousands of yen)

Profit(thousands of yen)

Inos Co. Ltd.

20.0

1,209,307

88,98051,208

VRaiB Inc.

20.0

40,520

125

(835)
36

Work-style Reforms (1/2)

Work-life Balance
Systems for shortened
working days or
reduced working hours･･･ help employees juggle work and child raising/nursing care.
Employees can choose shortened working days (3 days a week) or reduced
working hours (5 or 6 hours per day).
* Employees are eligible for the systems until their children become 3rd grade students
in elementary school or until they no longer need to do nursing care.
* A combination of the systems and the flex time system is allowed.
Kurumin (child rearing support)
recognition

Usage rate of systems for shortened
working days or reduced working
hours after maternity leave

Reinstatement rate of employees
after child rearing leave

83.3%

100%

66.7% (including men)

* As of March 31, 2020

Job return system(Re-employment
system)･･･ Re-employment is possible within 10 years of resignation due to a life event(marriage, childbirth, or child rearing) or for career advancement(overseas study or change of employer).

Flex time system･･･ helps employees work based on their lifestyles

37

Work-style Reforms (2/2)

Diversity
Job creation･･･ In 2015, the Company started growing vegetables hydroponically, aiming to create
new fields of employment for persons with disabilities. The Company regularly issues a PR paper
about the employment of persons with disabilities.
The Company currently promotes creating new fields of office jobs for them.

Networking amongfemale employees
exchange forfemale employees･･･ This networking targeted at young female employees serves to communicate information
on various ways of working and helps them make career plans.

L-Star (Female employee career promotion)
We are certified as an "Eruboshi" company, an outstanding company based on
the Act on Promotion of Women's Participation and Advancement in the
Workplace.

38Changes in Responses to the Employment Rate System for Persons with
Disabilities✓

We created new fields of agricultural and office jobs, and improved the environment to enable
many persons with disabilities to work for many years.

✓

We provided employees with internal training programs that help deepen their understanding ofworking with persons with disabilities, and strengthened the system that embraces them.

(Number of persons)

1,300
Meet the legallyrequired number
based on rules

1,200

Exceed the legallyrequired number
based on rules(Number counted based on rules)

30
28
26

1,100
24
1,000

22
20

900

18

800

16
700
14
600

12
10

500
'17/3
Number of employees

'18/3

'19/3

Legally required number based on rules'20/3
Actual number based on rules

39

Health Management
Support for club
activities･･･ To promote the health of employees, the Company supports club activities.
Currently around 150 employees are enrolled in 9 types of club activities.

Health maintenanceseminars･･･ To mitigate lifestyle habits and prevent obesity, the Company provides seminars by specific topic,
such as dietary improvements and the prevention and improvement of sleep apnea syndrome.

Online programs for
smoking cessation･･･ The Company introduced a quit-smoking program that combines online hospital visits and smoking
cessation prescriptions. Medical consultation is available via PC, smartphone or tablet.
The Company supports employees making efforts to quit smoking.

40Company Mascot

Mascot Character "Fukue-san"To promote a sense of familiarity with Focus
Systems and the world of information systems,
Fukue-san serves as the conduit for various kinds ofinformation dissemination revolving aroundbusiness, company performance, and employees.

The Company's original
manga "Forensic Detective"
The content serves to help a wide range ofstakeholders gain a deeper understanding of
the field of digital forensics, which accounts
for a growing share of the sales of theCompany.

All episodes are available in the web magazine.

41

Changes in Non-consolidated Financial Results (Full Year)
Fiscal Year Ended March

2016

2017

Net sales (thousands of yen)

16,482,792

17,846,896

19,327,344

21,453,829

22,703,906

Operating profit (thousands ofyen)

953,356

743,538

1,025,541

1,368,284

1,428,442

Ordinary profit (thousands ofyen)

950,301

731,3311,019,522

1,375,563

1,467,598

Profit (thousands of yen)

738,841

551,571

719,243874,282

930,316

2,905,422

2,905,422

2,905,422

2,905,422

2,905,422

16,292

16,292

16,292

16,292

16,292

Net assets (thousands of yen)

7,415,953

7,258,918

9,201,228

9,106,539

8,885,900

Total assets (thousands of yen)

14,936,873

14,567,320

16,820,805

15,991,992

15,361,878

Net assets per share (yen)535.58524.24611.34605.04590.56

Dividend per share (yen)

16.00

12.50

16.00

20.00

25.00

Earnings per share (yen)

53.36

39.83

51.21

58.11

61.83

Equity ratio (%)

49.6

49.8

54.7

56.9

57.8

Return on equity (%)

10.4

7.5

8.7

9.6

10.3

Payout ratio (%)

30.0

31.4

31.2

34.4

40.4

Number of employees

1,024

1,073

1,116

1,161

1,203

Stock price - high (yen)

888

634

1,350

1,153

1,085

Stock price - low (yen)

340

412

503

774

583

Share capital (thousands of yen)
Total number of shares issued(thousands of shares)

2018*

2019*

2020*

Note: Figures in "Total assets (thousands of yen)" and "Equity ratio (%)" from FY2018 to FY2020 are those after the application of "Partial Amendments to AccountingStandard for Tax Effect Accounting" (Accounting Standards Board of Japan Statement No. 28, February 16, 2018) and other accounting standards.

42

Focus Systems sincerely requests
the continued guidance andsupport of all stakeholders.

This document is based on information available as of March 31, 2020, and on assumptions as ofthe same date concerning uncertain factors affecting future financial results.
Actual financial results may materially differ from projections due to various factors in the future.
Consequently, the Company offers no warranty for the certainty of the Group’s business projections.

43