Supplementary Materials for the First Quarterof the Fiscal Year Ending March 2025
(49th business year)

August 9, 2024

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

Table of Contents

Summarized Results for the Three
Months Ended June 30, 2024

P. 3〜

Segment Overview

P. 5〜

Financial status, etc.

P. 9〜

Earnings and Dividend forecast
Fiscal Year Ending March 2025
(49th Business Year)

P. 11©Focus Systems Corporation2

Summarized Results ①
Kicked off the fiscal year with increased revenue and profits
Rebound from unprofitable projects in the previous year and progress of ongoing projects as planned,absorbing increased costs (including personnel expenses, outsourcing expenses, and upfront（単位：百万円）
investments) associated with business expansion and reform.
(Unit: Million yen)

Ｑ１ Results
FY2024FY2025

AmountChangeYear-on-yearchangeNet sales

7,310

7,998

688

9.4%

Operating income

236

323

8636.7%

Ordinary income

217

335

118

54.3%

Current quarter

148

229

80

54.3%

Net income

3©Focus Systems Corporation

Summarized Results ② Progress on main indicators
 Main progress to date• Net sales: approximately 25% Income: 15-16% Progressing roughly asplanned.
• Increased personnel expenses: owing to net increase in employees andsalary raise.
• Increased outsourcing costs: owing to measures to ensure and enhancequality, as well as to strengthen project performance.
 Prospect of achieving the full-year forecast• Current order environment is robust. Expecting profitability improvement,and progress of business reform.

(Unit: Million yen)

Net sales
32,500Plan for Fiscal Year

7,998
Progress rate

24.6%

Q1

Operating income
2,100

Plan for Fiscal Year323
Progress rate
Q1

©Focus Systems Corporation

15.4%

Ordinary income
2,100

Plan for Fiscal Year

335
Progress rate
Q1

16.0%

Current net income
1,430

Plan for Fiscal Year229
Progress rate

16.0%

Q1

4

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 and maintenance

Existing businesses generally expanding steadily, but increased outsourcing
expenses in certain development projects.
(Unit: Million yen)

Net sales

2,500

2,251

2,548

(Unit: Million yen)Segment income13.2％

445

407

400

2,000
Year-on-yearchange500

Year-on-yearchange

1,500
1,000

8.7％

500

300
200
10000
FY2024 Q1

FY2025 Q1

FY2024 Q1

FY2025 Q1

 Projects related to electronic tax report systems and Individual Number continued to contribute to revenue growth.
 In some agile development projects, external personnel were brought in to ensure quality, resulting in increased
outsourcing costs.

©Focus Systems Corporation5

Segment Overview ②Enterprisebusiness

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

Despite the Infrastructure business driving business expansion, was unable to fully
absorb cost increases in some contracted projects.
(Unit: Million yen)

Net sales

2,500
2,000

Year-on-yearchange

4.9％

1,991

(Unit: Million yen)

2,088

Segment income

200

160

150

1,500
1,000
500
0

Year-on-yearchange

100

33.7％

50

1060
FY2024 Q1

FY2025 Q1

FY2024 Q1

FY2025 Q1

 Overall infrastructure-related business drove expansion of business scale and contributed to increased profit.
 Expanding business operations in anticipation of future growth due to favorable ERP-related market conditions,but challenges remain in improving short-term profit margins.

©Focus Systems Corporation6

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, andICT consulting, mainly in the Tokyo, Nagoya, and Osaka areas.

Both net sales and profits recovered, rebounding from the previous year's unprofitablesituation.
(Unit: Million yen)

Net sales

1,500

1,283

(Unit: Million yen)

1,323Segment income

1,200Year-on-yearchange3.2％

Improved by900600
300

12011660

214million yen0

from the same
Quarter last year-60

▲97-1200
FY2024 Q1

FY2025 Q1

FY2024 Q1

FY2025 Q1

 Focusing on project monitoring. Business scale continuing to expand, centered on a wide range of existing corebusinesses.
 Expansion of revenue opportunities in AI-related fields is expected.
©Focus Systems Corporation7

Segment Overview ④

Innovation

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

Infrastructure-related business driving growth. Maintaining growth trend while also
making upfront investments.
(Unit: Million yen)

Net sales

2,500
2,000

Year-on-yearchange

14.2％

1,784

(Unit: Million yen)

2,037

1,500
1,000

Segment income

300

Year-on-yearchange

200

1.3％

100

264

268

FY2024 Q1

FY2025 Q1

500
00
FY2024 Q1

FY2025 Q1

 Mainly infrastructure-related business driving stable growth. Managed to secure profits despite the repercussion
in sales from the previous year.
 Expanding the business foundation through enhancement of development projects, and promoting planning ofown products and sales expansion of existing own products.
©Focus Systems Corporation

8

Financial status, etc. ①

Balance Sheet (B/S)(Unit: Million yen)Previous Fiscal YearFirst Quarter of theCurrent Fiscal Year

AssetsCurrent assets

13,08912,981

Non-current assets

7,900

7,669

Property, plant, and equipment

3,548

3,538

120

107

4,232

4,024

20,98920,651Intangible assets
Investments and other assets

Total assets
Liabilities

Main reason for increase:・Increase in cash and deposits
Main reason for decrease:・Decrease in accounts receivableand contract assets
・Decrease in investment securities

6,150

6,461

Non-current liabilities

1,422

1,171

7,572

7,632

Net assets

865 million yen
208 million yen

Main reason for increase:・Increase in provision for bonuses
・Increase in short-term borrowings

509 million yen
297 million yen

Main reason for decrease:・Decrease in income taxes payable
・Decrease in accrued consumption taxes

370 million yen
279 million yen

Shareholders’ equity

11,744

11,490Capital

2,905

2,905

Capital surplus

2,177

2,177

Decrease of 398 million yen year-on-year

Retained earnings

7,003

6,749

Treasury shares

△342

△342

Valuation difference on
available-for-sale securities

1,672

1,528

Total net assets

13,416

13,018Main reason for decrease:・Decrease in retained earnings
brought forward
・Decrease in valuation difference
on available-for-sale securities

Total liabilities and net assets

20,98920,651©Focus Systems Corporation

743 million yen

Increase of 59 million yen year-on-year

Current liabilities

Total liabilities

Decrease of 338 million yen year-on-year254 million yen
143 million yen

9Financial status, etc. ②

Net income increase/decrease analysis

Increase in personnel expenses (for new employees)
Increase in system license fees
Decrease in provision of allowancefor doubtful accounts+125▲38+31▲37

Increase in selling,

Changes inextraordinary
incomeand losses

Increase inincome taxes,etc.

(Unit: Million yen)

Increase ingross margin

general andadministrative
expenses

+81

148

229

Previous first quarter
net income

Current first quarter
net income©Focus Systems Corporation

10Earnings and Dividend forecast- Fiscal Year Ending March 2025 (49th Business Year)❙ Achieved record highs in sales and profits.
❙ Annual dividend per share of 38.00 yen(interim dividend of 6.00 yen + year-end dividend of 32.00 yen).
FY2024 results

FY2025 projections

Year-on-yearchangeNet sales（million yen）

31,50932,500

3.1％

Operating income（million yen）

1,974

2,100

6.4％

Ordinary income（million yen）

1,971

2,100

6.5％

Net income（million yen）

1,406

1,430

1.7％

FY2024 results
Net income per share
Dividend per share
Dividend payout ratio©Focus Systems CorporationFY2025 projections

（yen）

93.13

94.66

（yen）

38.00
(Breakdown) Interim dividend 6.00
Year-end dividend 32.00

38.00(Breakdown) Interim dividend 6.00
Year-end dividend 32.00

（％）

40.8

40.1
11Focus Systems sincerely requests the continued guidance and support of all stakeholders.

In this presentation, numbers are rounded down to the nearest whole number, and percentage figures rounded up
or down to two decimal places. This document was prepared based on information available as of August 9, 2024,
and assumptions yet to occur as of the same date. Consequently, actual financial results may materially differ fromprojections due to various factors. Focus Systems Corporation does not guarantee the certainty of the contents ofthis presentation.
©Focus Systems Corporation12