Explanatory material of Financial Results
for the Fiscal Year Ended March 2021

May, 2021（TSE JASDAQ：6736）
https://www.sun-denshi.co.jp
1

０. Agenda
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY・vs Forecast）･･････････････････････････4

２

Consolidated performance
forecast･･････････････････････････14

３

Measures of Suncorp group･･････････････････････････16

Copyright© SUNCORPORATION Ltd. All rights reserved.

2

１. Outline of financial results
Table of Contents

１

Outline of Financial ResultsHighlight
Outline（YoY・vs Forecast）･･････････････････････････4

２

Consolidated performance
forecast･･････････････････････････14

３

Measures of Suncorp group･･････････････････････････16

Copyright© SUNCORPORATION Ltd. All rights reserved.

3１. Outline of financial results
Highlight of FY Q4 March 2021

Net Sales(Mobile data, New IT business) were steadily in Q4.
Operating profit was ¥677million.
Quarterly Operatingprofit

Quarterly Net Sales

Description

million yen
million yen

7,698
6,529

6,915

6778055,521
235

1Q

2Q

3Q

4Q

-1,031
1Q

Mobile Data
New ITTotal

Entertainment
Others2Q
Mobile Data
New ITCorporate

3Q

4Q
Entertainment
OthersTotal

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 4Q Summary

・Mobile Data Solutions
Sales increased significantly to
7,698 million yen due toincreased sales of digital forensic
products. Segment profit was
523 million yen due to adecrease in expenses related to athird-party allocation of newshares.
・Entertainment-related
Sales of control boards andcontract development werestrong, with sales of 1,431
million yen. Segment profit was
311 million yen due to improved
operational efficiency.
・New IT-related
Sales of M2M communicationequipment were strong, withsales of 510 million yen andsegment profit of 23 million yen.
4１. Outline of financial results
Highlight by Business Segment for FY March 2021
Net
Sales
Mobile Data
SolutionsEntertainmentRelated

New IT Business
Related

OthersCorporate ex.
Total

Operating
Profit20,413

4,313

1,746

913

507

98

（Unit Million yen）

Ratio（％）

Description

4.5

Sales and orders for mobile forensic equipment and related
services rose steadily, resulting in a 7.3% year-on-yearincrease in revenue.
Segment profit increased due to strong sales and lower
one-off costs related to the third-party allocation of newshares by consolidated subsidiary Cellebrite.

11.8

Net sales decreased significantly due to the transfer of theSUNTAC Corporation business, although sales of control
boards and contract development were strong. On theother hand, profit increased due to improved operational
efficiency and a review of expenses.

5.6[M2M] sales rose on the back of strong sales of M2M
communications equipment and a turnaround in profit as aresult of cost efficiencies.
[AR] Losses narrowed due to lower costs as the business
shifted to a solutions focus.
[Game Contents]
Sales fell sharply despite the expansion of overseas sales.
However, a review of costs and other measures to improve
efficiency resulted in lower costs and a return to profit.

181

35

19.3

―-868

―

―

26,662687――

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5１. Outline of financial results
Consolidated PL for FY March ended 2021 (YoY)
FY March 2020
Net Sales
COGSGross profit
SGAinclude R&DR&D

Operating Profit

Ordinary Profit
Net loss
attributable toSuncorp

FY March 2021

（Unit Million yen）

Change（％）

26,22026,662

1.7

8,443

7,837

-7.2

32.2％
17,776
67.8％
20,028
76.4％
6,608
25.2％
-2,252-8.6％-1,875-7.2％-3,440-13.1％

29.4％
18,825
70.6％
18,137
68.0％
6,639

―

+5.9

Sales of mobile solutions and ITrelated products grew and gross profit+2.8Ｐ improved.

-9.4

Lower overhead costs related to thethird-party allocation of new shares to-8.4Ｐ subsidiaries in the previous year.

+0.4-0.3Ｐ

687―

881

Slight increase due to strong
performance of Mobile Solutions.

-2.8Ｐ

24.9％
2.6％

Description―

Profitable due to lower overheads
following the third-party allocation
new shares to subsidiaries and the＋11.2Ｐ of
implementation of structural reforms

―

3.3％

＋10.5Ｐ

47

―

0.2％

+13.3Ｐ

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

FY March 2020
Mobile datasolutions

Entertainmentrelated

New IT businessrelated

OthersTotalChange(%)

Net Sales

19,01820,413+7.3

Operating Profit-1,058

913―Ratio(%)―4.5―PNet Sales

5,410

4,313-20.3

Operating Profit

255507

98.8

Ratio(%)

4.7

11.8

7.1P

Net Sales

1,523

1,746+14.6

Operating Profit

-343

98

―

Ratio(%)―

5.6―PNet Sales

288

181

-37.2

Operating Profit

-101

35―

―

19.3

―P

Operating Profit-1,004-868―

Net Sales

26,22026,662

1.7

Operating Profit-2,252

687

―

―

2.6

―PRatio(%)
Corporate Expenses

FY March 2021

Ratio(%)

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7１. Outline of financial results
Consolidated results for FY March ended 2021 (vs Forecast)FY March 2021
H1 ActualNet Sales

Operating Profit

Ordinary Profit

Net loss
attributable toSuncorp

FY March 2021
Annual Forecast(Revised)（Unit Million yen）

FY March 2021
Annual Actual

Achievement（％）

26,662102.5～
98.7

687

114.5～
98.1△733

850~950881

103.6～
92.7△744△20~047―

12,04926,000~27,000△599600~700

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8

１. Outline of financial results
Consolidated Net Sales by business segments(vs Forecast)FY March 2021
H1 ActualFY March 2021
Annual Forecast(Revised)（Unit Million yen）

FY March 2021
Annual Actual

12,04926,000～27,000

26,662

Mobile DataSolutions

9,214

19,500～20,500

20,413EntertainmentRelated

1,993

4,300

4,313

New IT BusinessRelated

742

1,750

1,746

Others

107

180

181

Total

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Achievement（％）

9１. Outline of financial results
Consolidated Operating Profit by business segments(vs Forecast)FY March 2021
H1 ActualFY March 2021
Annual Forecast(Revised)（Unit Million yen）

FY March 2021
Annual Actual

Achievement（％）

Total-795600~700687―

Mobile Data
Solutions

-525

850
～950

913

―

EntertainmentRelated

136

500

507

New IT BusinessRelated

31100

98―

Others273535―

-464

-870

-868

―

Corporate Expenses

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―10１. Outline of financial results
Consolidated B/S ( YoY )The end of March,
2020

Total Assets
Current Assets
Cash andDeposits
Inventory

Fix Assets
Current Liabilities

Fix Liabilities
Net Assets

The end of March,
2021

Change（％）

41,63649,785

19.6

35,422

43,64823.2

85.1％
26,390
63.4％
1,317
3.1％
6,214
14.9％
22,14887.7％
32,534
65.4％
1,125
2.3％
6,136
12.3％
28,100（Unit Million yen）

Description―

Mainly due to an increase in
cash and deposits and notes
2.6Ｐ and accounts receivable

23.3
+2.0Ｐ
-17.1
-0.8Ｐ

―
―

-1.3

Mainly due to an increase in-2.6Ｐ deferred tax assets

26.9

53.2％

56.4％

Mainly due to increase in
short-term borrowings and+3.2Ｐ unearned revenue

882

863

-2.2

2.1％

1.7％

-0.4Ｐ

18,605
44.7％

20,820
41.8％

―

11.9

Mainly due to an increase incapital stock and capital-2.9Ｐ surplusCopyright© SUNCORPORATION Ltd. All rights reserved.

11１. Outline of financial results
Consolidated statement of Cash flow (YoY)
FY March 2020

FY March 2021

（Unit Million yen）

ChangeDescription

Cash flow fromoperating activities

-46

6,110

＋6,156

Increase in unearned income+6,156

Cash flow frominvesting activities-5,096-893+4,203

Payment for acquisition ofshares in subsidiaries -1,585

Free Cash Flow

-5,143

5,217＋10,360

Cash flow fromfinancial activities

11,236

3,662-7,574

Exchange rate changes
on cash and cash
equivalents

-280

-359

-79―

Net increase ordecrease in cash andcash equivalents

5,812

8,519

+2,707―

Cash and cash
equivalents at
beginning of year

6,887

12,593＋5,706―

12,70021,113＋8,413―

Cash and cash
equivalents at end ofyear―
Proceeds from exercise of stock
options 2,013

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12２. Consolidated performance forecast
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY・vs Forecast）･･････････････････････････4

２

Consolidated performanceforecast･･････････････････････････14３Measures of Suncorp group･･････････････････････････16

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13

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

Sales forecast:
Operating profit forecast:Ordinary income forecast:Undecided
Undecided
Undecided

Financial forecast
The forecast of consolidated results for the year ending March 31, 2022 has not
yet been decided due to the fact that the procedures for the listing on the NASDAQ
Global Market of the merger of our Israeli subsidiary Cellebrite DI Ltd. and thespecial purpose company TWC Tech Holdings II Corp. Ltd. and TWC Tech Holdings IICorp., a special-purpose company for the acquisition of TWC Tech Holdings II Corp.
have not been completed, and it is difficult to reasonably calculate the impact of thenew coronavirus infection on the Company‘s business performance at this time.
However, we will closely monitor business trends and, if there is a significant
impact on our business performance, we will examine the details and, if timely
disclosure is required, we will promptly make an announcement.
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14

３. Measures of Suncorp group
Table of Contents

１

Outline of Financial Results
Highlight
Outline（YoY・vs Forecast）･･････････････････････････4

２

Consolidated performance
forecast･･････････････････････････14

３

Measures of Suncorp group･･････････････････････････16

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15

３. Measures of Suncorp group
Listing on the NASDAQ market following the merger of Cellebrite and TWC, aspecial purpose vehicle

Assumptions•••

the prospect of restructuring the Company's business
The proceeds from Cellebrite's listing will be used to further enhance the Group'scorporate value
The high valuation of Cellebrite on the SPAC market of NASDAQ in the US andthe speed with which the listing can be completed

Objective••

To ensure the continued and sustainable growth of the Group's businesses
To expand existing products and services, and to make strategic investments
and business expansion

Timing of the Transaction•Planned end of June 2021

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16

３. Measures of Suncorp group
Listing on the NASDAQ market following the merger of Cellebrite and TWC, aspecial purpose vehicle①Cellebrite, its wholly owned subsidiary and TWC agree to merge
The Merger

On 26 March, Cellebrite set up a wholly owned subsidiary, Merger SubCopyright© SUNCORPORATION Ltd. All rights reserved.

17

３. Measures of Suncorp group
Cellebrite to list on NASDAQ following merger with special purpose vehicle
TWC②Inverse triangle merger makes TWC a wholly owned subsidiaryof Cellebrite
After the Merger

Reverse triangular merger makes TWC a whollyowned subsidiary of CellebriteCopyright© SUNCORPORATION Ltd. All rights reserved.

18

３. Measures of Suncorp group
Cellebrite to be listed on NASDAQ following merger with TWC③TWC to be delisted and Cellebrite to be listed on NASDAQ
After the Share Transfer

Cellebrite to be listed on the NASDAQ
under the ticker symbol "CLBT to belisted on the US NASDAQ

TWC delisted after share transfer
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19

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

Return to profitability as a result ofbusiness selection and concentration
ResultsMeasures

 Expansion of services with the acquisition ofBlackBag
 Growth in EMEA and APAC

 Explore M&A opportunities to become No.1 in digital intelligence Conducting PMI at Blackbag
 Responding to the new business environment with Covid-19

 More efficient operations and lower costs
 Narrowing down of the product range
 Transfer of the hall systems business Improving efficiency and productivity in development and other activities Reduction of costs and promotion of a highly profitable structure Expansion of market share

New IT Marketing of Haccp compatible products forsensors SunDMS pay-as-you-go service
 Restructuring of the AR business model

Corporate Start of executive structure with newmanagement team Implementation of business restructuring Raising capital Merger with special acquisitions company
TWC underway in preparation for Cellebrite'slisting on Nasdaq

 Strengthening our security business Explore M&A opportunities for new businesses Ongoing restructuring of the business

Mobile datasolutions

Entertainment-related

M2M
AceReal[M2M] Development of the main router[M2M] Strengthening the development of customised applications[M2M] Cloud services for a fee[AR] Expanding the range of industries to which remote support can beapplied and extending the range of services

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20

３. Measures of Suncorp group
Mobile Data Solution

Make a difference with digital intelligence Covid-19 makes the workforce remote and requires a reassessment of security risks.
 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 to create a safer world

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21

３. Measures of Suncorp group
M2M business

Using IoT/M2M to deliver safety and security "easily".
We offer the added value of "remote monitoring/control" to customers who need toimprove their operations, efficiency and innovation through IoT/M2M.
Differentiation of Routers andGateways「Strengthening the functions of"SunDMS" to expand the stock business

Migration to LTE (4G) for
beverage vending machines

There are approximately 2.3 million
beverage vending machines in Japan.
Most of them use 3G connection forinventory control.
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22

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

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

Features of AceReal AsssitSupport for multiple smart glasses
Optimum call quality according to thecommunication environment
Uses a web application

Compatible smart glasses
AceReal One（Suncorp）

HMT-1、HMT-1Z1（RealWear）

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Everysight Smartglasses（Everysight）

23

Explanatory material of Financial Results
for the Fiscal Year Ended March 2021
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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