Alpha-Win Company Research Report
CUBE SYSTEM INC.
(2335 TSE First Section)

Issued: 11/18/2019

Research Dept., Alpha-Win Capital Inc.
http://www.awincap.com/● Summary◆ Independent, mid-tier system integrator with long-term, stable growth・CUBE SYSTEM INC. (hereinafter, the “Company”) is an independent, mid-tier system integrator (SI) listed on
the First Section of the TSE. Its main customers include Nomura Research Institute (NRI) and Fujitsu Group. It
provides services and develops systems mainly for the finance, distribution, and telecommunications industries.
Its strengths are its excellent customer base, extensive experience, strong trust from its customers, and the skill
and know-how that it has built up over the years. Founded in 1972, it has 47 years of history.
・With the exception of one fiscal year, the Company has been continuously increasing sales YoY for the past 18
years. During this period, its annual sales growth rate (simple average of the rate of increase in sales) was +6.4%
and its annual recurring profit growth rate (simple average) was +6.0%; the Company has been steadily expanding
its business and keeping its business in the black over many years. The recurring margin has been stable at around
7% and the increase in sales has been contributing directly to increases in profit, dividend, and market capitalization.

◆ This fiscal year’s Q2 results: sales grew by 3.2% and O.P. rose by 9.4% YoY; recordhigh H1 sales; recovering from the profit decline in Q1.
・Results for the second quarter of FY 2020 (Apr. to Sept. 2019; hereinafter, the “first half” or “H1”) (note that all
fiscal years in this report are March-ending; e.g. FY 2020 ends in March 2020) were as follows: sales were Y7,071
million (+3.2% YoY), operating profit was Y392 million (+9.4% YoY), recurring profit was Y397 million (+5.6%
YoY), and profit for the period attributable to owners of the parent (hereinafter, “net profit”) was Y241 million(+7.3% YoY) (Figures 1-3). Sales were strong, hitting a record high. Concerning profit, some of the projects’
profitability worsened, leading to an increase in cost (by Y42 million YoY). Still, an overall increase in profit wasachieved owing to the rise in sales and the improvement of margins. While an all-time high could not be attainedfor profit during this H1, the profit was still at a high level compared to past results. However, sales, operating
profit, and net profit were Y366 million (4.9%), Y32 million (7.5%), and Y8 million (3.2%) lower than the
Company’s initial targets, respectively.
[Figure 1] Financial Results for This H1 (the period ending Sept. 2019)
Results
Unit: Y million

By Service Category

TotalCons. Sales
Sales

Gross Profit

Gross
Margin (%)

By Industry

Sales

Gross Profit

Gross
Margin (%)

Total

Name of Service/Industry

System Integration: SIS
System Outsourcing: SOS
Professional: ProS
System Integration: SIS
System Outsourcing: SOS
Professional: ProS
System Integration: SIS
System Outsourcing: SOS
Professional: ProS

Finance
Distribution
Telecommunications
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommunications
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommunications
Manufacturing (other)Government (other)
Other (other)

Gross Profit

Gross Margin (%)
SG&A Exp.

SG&A Exp. Ratio (%)
O.P.

O.P. Margin (%)
R.P.

R.P. Margin (%)
N.P.

N.P. Margin (%)

Q1 FY 2019
Apr-Jun 2018

3,082
2,164
556
361
344
93
58
15.9
16.7
16.1
856
695
472
297
220
539
131
128
70
48
36
79
15.4
18.5
14.9
16.4
16.6
14.8
496
16.1
386
12.5
109
3.6
133
4.3
76
2.5

Q1 FY 2020
Apr-Jun 2019

3,379
2,411
520
447
354
95
73
14.7
18.4
16.5
993
771
485
396
245
486
181
122
74
45
34
66
18.2
15.9
15.2
11.6
14.1
13.6
524
15.5
424
12.5
100
3.0
107
3.2
50
1.5

Q2 FY 2019
Jul-Sep 2018

3,771
2,587
564
620
403
96
136
15.6
17.0
21.9
1,092
738
700
482
237
522
159
133
136
77
38
93
14.6
18.0
19.4
16.0
16.0
17.8
636
16.9
387
10.3
249
6.6
244
6.5
149
4.0

Q2 FY 2020
Jul-Sep 2019

3,692
2,532
691
469
470
130
84
18.6
18.8
17.9
1,125
916
432
417
209
593
228
165
66
62
34
127
20.3
18.0
15.3
14.9
16.3
21.4
684
18.5
392
10.6
292
7.9
291
7.9
192
5.2

H1 FY 2019
Apr-Sep 2018

6,853
4,751
1,120
981
747
189
194
15.7
16.9
19.8
1,948
1,433
1,172
779
457
1,061
290
261
206
125
74
172
14.9
18.3
17.6
16.1
16.3
16.3
1,131
16.5
773
11.3
358
5.2
377
5.5
225
3.3

H1 FY 2020
Apr-Sep 2019

7,071
4,943
1,211
916
824
225
157
16.7
18.7
17.2
2,118
1,687
917
813
454
1,079
409
287
140
107
68
193
19.3
17.1
15.4
13.3
15.0
17.9
1,208
17.1
816
11.5
392
5.5
398
5.6
242
3.4

H1: % Change
YoY: %

Difference
YoY: Y mill / %

3.2
4.0
8.1
-6.6
10.3
19.2
18.9

218
192
91
-65
77
36
-37
1.0
1.8
-2.6
170
254
-255
34
-3
18
119
26
-66
-18
-6
21
4.4
-1.2
-2.2
-2.8
-1.3
1.6
77
0.6
43
0.3
34
0.3
21
0.1
16
0.1

8.7
17.7
-21.8
4.4
-0.6
1.7
41.1
9.9
-31.9
-13.9
-8.5
12.2

6.8
5.5
9.4
5.6
7.3

Share of Diff.
%

Share of Total FY 2020 Full-Year Company Target % Change%
Apr 2019 - Mar 2020
YoY: %

100.0
87.9
41.6
-29.7
100.0
46.8
-48.1

100.0
69.9
17.1
13.0
68.2
18.6
13.0

15,500

8.2

77.8
116.3
-116.7
15.6
-1.4
8.2
155.4
33.9
-86.2
-23.5
-7.8
27.4

30.0
23.9
13.0
11.5
6.4
15.3
33.9
23.8
11.6
8.9
5.6
16.0

4,317
3,988
2,176

7.8
30.7
7.5

5,019

2.0

-

-

1,090
7.0
1,090
7.0
684
4.4

18.3
13.6
14.6

(Note) Prepared by Alpha-Win Res. Dept. based on the financial results summary and its supplemental reference materials. Due to various steps ofprocessing during calculations, there may be slight differences in the numbers (applies to the rest of this document).

Short Report

1/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 11/18/2019[Figure 2] Quarterly Change in Sales [Figure 3] Quarterly Change in O.P.

[Figure 4] Quarterly Change in O.P. Margin(Unit: Y million)(Unit: Y million)
4,500

450

4,000

400

3,500

350

3,000

10.0%
8.0%

300

2,500

(Unit: %)
12.0%

250

6.0%

2,000

200
1,500

4.0%
150

1,000

2.0%

100

500

50

0
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

0.0%
FY 20140
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Q1

Q2

Q3

Q4

FY

FY 2020

Q4(Note) In Figures 2-4, Q1 and Q2 of FY 2020 are actual results and full-year FY 2020 values are based on the Company’s estimates/forecasts.

・Overall, in H1, sales increased by Y218 million YoY and gross profit increased by Y76 million YoY.
・By service category (three categories), the sales of the System Integration Service (SIS) increased by Y192 million
YoY (+4.0% YoY), accounting for 88% of the total increase in sales. This increase was brought forth by the
expansion of system development projects for consumer co-ops in the distribution industry, credit card companies
in the finance industry, paper-processing manufacturers, and education companies. The gross margin of the SIS
increased from 15.7% in the previous H1 to 16.7% in the current H1, raising the gross profit by Y76 million(+10.3% YoY), which helped boost the total profit. Additionally, sales of the System Outsourcing Service (SOS)
increased by Y91 million (+8.1% YoY) thanks to the expansion of projects for hypermarkets. This category’s grossmargin also improved, resulting in a Y36 million increase in gross profit (+19.2% YoY). On the other hand, salesof the Professional Service (ProS) decreased by Y64 million (-6.6% YoY) and its profit decreased by Y36 million(-18.9% YoY) due to the completion of system development projects for telecom carriers.
・By industry (four industries), sales increased for three industry types, excluding the telecommunications industry
whose sales and profit declined for the reason described above (Figure 1). The finance industry was the growth
driver for the Company’s overall sales and profit (gross profit; the same applies below), as performance of businesswith this industry began to clearly improve due to the increase in system development projects for insurancecompanies as well as credit card companies. Additionally, business with the distribution industry also contributed
to the results with the expansion of projects concerning the consumption tax revision and new projects in growthfields (digitalization projects, etc.). Meanwhile, the gross margin of the “other industries” category decreased dueto the unprofitable projects and the changeover period of the profitable projects, but the category’s sales and profit
have stayed about the same.
・By customer group, excluding the Fujitsu Group (hereinafter, abbreviated as “G”) whose sales toward telecom
carriers dropped, sales for the other three Gs (NRI, Aeon, and Mizuho) increased. Sales for the main four Gs were
Y5,332 million, having increased by Y226 million YoY (+4.4%), exceeding the overall sales growth in amount aswell as rate.
・The gross margin increased from 16.5% in H1 of the previous year to 17.1% for this H1, and the operating margin
also improved from 5.2% to 5.5% in the same order (Figure 4). The factors that increased or decreased this H1’soperating profit (a Y34 million net increase) are shown in Figure 5. Profit increased thanks to the rise in sales of
the Enhancement business and the expanded businesses including those in new business domains, as well as the
improvement of profit margins from cost reduction and efficiency improvement. Regarding the unprofitableprojects, related expenses have already been booked and, at this point, no additional costs are expected to be
incurred in H2 and onward. As for the non-operating profit and loss, a loss of Y12 million was posted due to a
fallback from the one-time profit from the premium refund for cancelled insurance, etc., in the previous H1. There
was no extraordinary gain or loss, and net profit had increased.
・Due to the nature of the Company's business model, sales growth largely depends on the number of employees.
The number of domestic employees has been increasing from 617 in Sept. 2017 (at month-end) → 655 in Sept.
2018 (+38; +6.2%) → 664 in Sept. 2019 (+9; +1.4%). Although the number of employees is still somewhat short
Short Report

2/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 11/18/2019of the system development demand, the Company has been gradually improving the productivity of each person,
such as the sales and operating profit per person.
・There have been no large changes to the balance sheet as of the end of H1. The Company is essentially debt-lessand has ample liquidity at hand, with cash and deposits of Y3.2 billion. Its financial standing is also firm, with anequity ratio of 67.4%.
[Figure 5] Factors that Increased or Decreased Operating Profit in H1
Inc. in costs due tolower project
profitability
Quality- & managementimprovement strategies＋118(Unit: Y million)

Inc. in labor
cost
Staff reinforcementwith SEs and talents in
DX

- 42

Inc. in HR dev.
& R&D
investments
Inc. in otherexpenses

-8
- 25

392
-8

358
Rise in profit due to businessexpansion & improved
profitability of existing business
Next-level Enhancement strategy
Expansion of current business domains
Dev. of new growth domains

FY 2018:
The period
ending in
Sept.

Increased by Y33 million YoY

FY 2019:
The period
ending in
Sept.

(Note) Financial results supplemental reference materials◆ No change to the initial full-year forecast that sales will rise by 8.2%, profit will growat a double-digit rate, and dividend will be increased by Y2・The Company has not changed its initial forecast on the full-year sales, profits, and dividend announced at the
beginning of the fiscal year. Like the previous fiscal year, it plans to increase sales and profit during this fiscal year
and hit a record high in sales for consecutive fiscal years, as well as achieving record highs in profits. The Company
will also aim again to raise operating profit and recurring profit so that they exceed Y1 billion for the first time
(this challenge had been attempted but could not be achieved during last fiscal year).
・Progress during this H1 in terms of the full-year company forecast was 45.6% for sales and 36.0% for operating
profit. In comparison, the simple average of the H1 progress rates over the past ten years, including the previous
fiscal year, is 49.0% for sales and 44.8% for operating profit; this H1’s progress rate is below the average of recent
years. Also, when the H1 results are subtracted from the Company’s full-year forecast, we can see that in H2 theCompany plans for sales of Y8,429 million (+12.8% YoY) and an operating profit of Y698 million (+24.0% YoY)
– a double-digit growth in sales and profit – as well as an improvement in operating margin (from 7.5% in theprevious year’s H2 → 8.3% for this H2). However, the Company has been experiencing a quarterly variability
such that the fourth quarter (Q4: Jan. to Mar.) has been contributing the most to the full-year results. Therefore,
although the achievement of H2 targets may seem somewhat difficult at this point, there is a chance that theCompany may catch up to its plan as it approaches the end of the fiscal year. Compared to its competitors –HIMACS experienced a 7.6% rise in sales but a 28.7% decline in profit (due to unprofitable projects) and Toho
System Science recorded a 4.6% decline in sales and a 11.2% drop in profit (operating profit for both companies)in H1 (ending Sept. 2019) – the Company’s performance is strong, maintaining growth in sales and profit.
・We, at Alpha-Win Research Department, revised our full-year financial forecast in considering the H1 sales andprofit that were affected by the unprofitable projects (Alpha-Win Research Department’s initial→current forecast:for sales, Y15.4 billion → Y15.2 billion; for operating profit, Y1,080 million → Y1,070 million; no change torecurring profit and other items that follow). However, we are still keeping our previous analysis that “theShort Report

3/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 11/18/2019

Company’s sales and profits may both hit their record highs, although they may be somewhat below the Company’s
full-year targets.” Also, we have noted that the Company has been strengthening sales toward its main accounts(clients), expanding existing businesses, and developing business in new domains and areas, resulting in a steadyrise in the number of orders received during this H1 and the order backlog at the end of the same period by 2.8%
and 8.5% YoY, respectively. Therefore, we have not made large changes to the full-year forecast at this point.
While it was a surprise that some projects turned out to be unprofitable, since the Company has been reinforcing
project management in recent years, the effect of those projects has mostly diminished as of the end of H1 (theimpact on quarterly loss/profit in the order of last year’s Q4→ this year’s Q1 → Q2 in million yen: -52 → -15→ -27). Going forward, since the Company plans to strengthen customer communication, accumulate and utilizeknow-how, and conduct thorough quality control, we believe that the projects are unlikely to become a major
concern. In H2 and onward, their effect on the loss/profit and the effectiveness of the reoccurrence prevention
measures should be watched.
・Over the medium to long term, the users are expected to continue to increase their IT investments to develop new
business models, strengthen their competitive advantage, deal with the labor shortage, streamline and speed up
operation, and promote DX. Consequently, the Company’s growth potential is large. We expect that the Company’s
profit and sales will grow stably at a rate of 8-10% per year by expanding its Enhancement business, acquiring newcustomers, developing new and overseas businesses, and improving its productivity through various measures.

◆ Stock price and characteristics: market-average valuation, significantly outperforming
the TOPIX over many years as a domestic-demand-related, stable growth stock・Compared to the average of the First Section of the TSE (based on the closing price on 11/15/2019: P/E of 15.74,
P/B of 1.24, and simple-average dividend yield of 1.90%) and its competitors (HIMACS and Toho System Science;
Figure 6), the Company’s valuation is about average. Going forward, if the Company could continue to demonstrate
a stable, double-digit profit growth, then its stock price could potentially rise.
・The Company’s stock is a domestic-demand-related, defensive, stable growth stock that has little to do withinternational relations or fluctuations in forex. The stock is characterized as having a stock price that is relatively
low in volatility. Therefore, in situations where the entire stock market suddenly rises in price, the Company’s
stock may get a late start.
・In the past ten years or so, the stock price has increased by about four times and has been largely outperforming
the TOPIX. Regarding the stock price, short-term points of interest are the quarterly financial performance and thetrend in the orders received. Over the medium term, we should watch the change in profit margins and profit growth
rates in the next fiscal year (the final year of the current medium-term plan), contents of the next medium-termbusiness plan, development of and achievements in new technologies and businesses domains, and shareholder
return (dividend hike, shareholder benefit program enhancement, share buyback, stock split, etc.), as well as thefinancial performance and IT investment trends of the Company’s end users (Japanese companies).
[Figure 6] Comparison of Valuation Indicators with Competitors
Company Name
Code
Stock Price (at 11/15 closing)Market Cap (Y mil)P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)

CUBE SYSTEM(CS: consolidated)

HIMACS(HM: consolidated)Toho System Science(TS: non-consolidated)

2335

4299

4333

785
11,995
15.8
2.0
2.3
9.1
0.8

1,972
12,239
17.9
1.2
2.5
6.7
0.8

919
12,743
14.4
1.6
2.7
5.2
0.9

Market cap= (shares outstanding) x (market share price [at 11/15/2019 closing])
The companies' planned EPS and dividend values for FY 2020 were used in all P/E and dividend yield calculations.
Actual BPS values of H1 (ending Sept. 2019) were used in P/B calculations.
EV/EBITDA=(market cap + interest bearing debt - cash&deposits)/(O.P. + depreciation + intangible fixed asset amortization)*Values for interest-bearing debt and cash & deposits are actual values from H1.
P/S=market cap / sales [the companies' forecasts for FY 2020]

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4/6

This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 11/18/2019

 2335 CUBE SYSTEM Sector: Information & Communication Figure A
FY

3/20173/20183/20193/20203/20203/2021
3/20226/20186/20199/20189/20199/20189/20199/20193/20193/2020

CE
E
E
E
Q1
Q1
Q2
Q2
H1 (actual)H1 (actual)
H1 (initial CE)
H2 (actual)
H2 (CE)

Sales

YOY

O.P.

YOY

R.P.

YOY

N.P.

YOY

EPS

BPS

Dividend(Y mill)（%）(Y mill)（%）(Y mill)（%）(Y mill)

(%)

(Y)

(Y)

(Y)

12,89913,55914,325
15,50015,20016,50017,800
3,082
3,379
3,770
3,691
6,852
7,071
7,437
7,473
8,429

2.2
5.1
5.6
8.2
6.1
8.6
7.9
1.4
9.6
9.4
-2.1
5.6
3.2
8.5
5.7
12.8

-12.3
2.9
5.1
14.6
14.1
10.3
10.0
131.3
-34.2
1.0
28.2
24.8
7.3
10.9
-4.1
19.4

39.15
40.59
43.25
49.58
50.04
55.20
60.72
5.45
3.70
10.88
14.13
16.33
17.83
18.12
26.92
31.75

346.47372.23393.29426.38463.58506.29357.23379.63381.80397.59381.80397.59
-

781
855
921
1,090
1,070
1,200
1,320
109
100
248
291
358
392
424
563
698

-17.7
9.5
7.8
18.3
16.2
12.1
10.0
52.4
-8.8
6.4
17.3
17.3
9.4
18.3
2.4
24.0

811
892
959
1,090
1,080
1,200
1,320
132
107
243
290
376
397
424
583
693

-15.5
10.0
7.5
13.6
12.6
11.1
10.0
80.5
-19.0
4.8
19.3
23.0
5.6
12.5
-0.5
18.9

551
567
596
684
680
750
825
76
50
149
191
225
241
250
371
443

14.0
16.0
16.0
18.0
18.0
18.0
20.0
0.0
0.0
0.0
8.0
0.0
8.0
8.0
16.0
10.0

(Note) CE = the Company’s estimate/forecast. E = Alpha-Win Research Dept.’s estimate/forecast. Q1 is from April to June, Q2 is from July to
September, H1 (first half) is from April to September, and H2 (second half) is from October to March.

 Stock Price and Valuation Indicators: 2335 CUBE SYSTEM Figure B
as of 11/15/2019

 Item

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

785

Last FY (actual)

18.2

2.0

2.0%

37.0%

Shares Outstanding (thou.)

15,280This FY (est.)

15.7

1.8

2.3%

36.0%

Market Capitalization (Y mil)

11,995

Next FY (est.)

14.2

1.7

2.3%

32.6%

Stock Price (Y)Equity Ratio at This Q2-End

0

Dilutive Shares (thou.)

67.4% Last FY's ROE

11.4%(Note) Estimates/forecasts were made by Alpha-Win Research Dept.

 Stock Chart (end-of-week prices): 2335 CUBE SYSTEM  Figure C

(Y)
1.50
1.45
1.40
1.35
1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
0.90
0.85
0.80
0.75
0.70
0.65
0.60

Stock Price (left axis)

1,100

Price Relative to TOPIX (right axis)
1,000
900
800
700
600

9

9

/1
09

9

/1
06

8

/1
03

8

/1
12

8

/1
09

8

/1
06

7

/1
03

7

/1
12

7

/1
09

7

/1
06

6

/1
03

/1
12

09

/1

6

500

(Note) From the first week of September 2016 to the third week of November 2019

Short ReportPerformance
PeriodReturn vs. TOPIX
1 month-0.6%-2.4%
3 months
3.2%-8.1%
6 months-14.0%-23.4%
12 months
1.8%
0.1%

(Note) Reflects stock price and index
values up to the closing price on
11/15/2019. However, performance forthe most recent one-month period was
calculated based on the closing price atthe end of Oct. 2019.

(M
M
/Y
Y
)

1,200

5/6

This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE First Section)

Issued: 11/18/2019＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimers
This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-WinCapital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win
shall not be liable for any consequences including direct or indirect loss, lost profit, or damage
resulting from the use of or reliance on this Report. Investors who read this report must make theirown decisions on all investment matters and take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally
accessible public information and supplemental information including interview(s) by the analyst. AlphaWin, the writer, and/or other persons involved in the publication of this Report may already hold, or buy
and sell in the future, the stock of the company presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject tochange without notice. We do not warrant or represent that the information in this Report isaccurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility
or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied,cited, or translated without our consent.
For inquiries regarding this Report, please send us an e-mail to info@awincap.com. However, Alpha-Win
and the writer of this Report do not have any obligation to reply to inquiries.
PSV20191117-11

Short Report

6/6This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.