Alpha-Win Company Research Report
CUBE SYSTEM INC.
(2335 TSE Prime)● SummaryIssued: 8/15/2023

Alpha-Win Capital Inc. Research Department
https://www.awincap.com/◆ Independent, mid-tier system integrator with long-term, stable growth・CUBE SYSTEM INC. (hereinafter, the “Company”) is an independent, mid-tier system integrator listed on the
TSE Prime Market. Its main customers include the Nomura Research Institute (hereinafter, “NRI”) and the FujitsuGroup. It develops systems and provides services mainly for the financial, distribution, transportation,
telecommunication, and manufacturing industries.
・Its strengths are its excellent customer base, extensive experience, high credibility, and the technology andexpertise that it has cultivated over the years. Founded in 1972, it has 51 years of history.
・With the exception of one fiscal year, the Company has been continuously increasing sales YoY for the past 25
years. During this period, the annual sales growth rate (simple average of the rate of increase in sales) was +5.9%
and the annual recurring profit growth rate (simple average) was +7.1%; it has been steadily expanding its businessover the long term and has always maintained a profit. Its recurring margin has stably been around 7% (simple
average of 7.3%) and the increase in sales has been contributing directly to increases in profit, dividend, and market
capitalization. In FY2023 (note that the Company’s fiscal year is March-ending, i.e., FY2023 ended in March
2023), it achieved record-high sales and profits. It also increased dividend for the fourth year in a row.
・In April 2022, it moved from the TSE First Section to the newly established Prime Market.

・In December 2022, the Company formed a capital and business alliance with NRI, a top-level and major bluechip company of the industry. NRI became the Company’s largest shareholder (categorized as “other associatedcompany”), holding 20.2% of the Company’s voting rights. The NRI Group is also the Company’s largest customer,
accounting for 49.7% of its consolidated sales in FY2023.
・Adding its own cash on hand to the capital raised through the capital alliance with NRI, the Company plans toinvest a total of 2.2 billion yen over the four-year period from FY2023 to FY2026. It plans to invest in strengthening
and enhancing its development sites and production system to achieve further growth and solve its bottleneck ofhuman resources.

◆ Results for the first quarter of this fiscal year: Sales increased by 12.4% YoY and operating
profit increased significantly by 35.9% YoY. The SI Business contributed to results thanks toactive IT investments by companies. Profitability also improved due to the consolidation of
resources and the streamlining of operations.
Q1: Summary
・In the first quarter of FY2024 (April to June 2023; hereinafter, “Q1”), sales were 4,376 million yen (+12.4% yearon-year or YoY), operating profit was 369 million yen (+35.9% YoY), recurring profit was 371 million yen(+37.0% YoY), and net profit attributable to owners of the parent (hereinafter, “net profit”) was 232 million yen(+34.2% YoY) (Figure 1 on page 2).
・The Company recorded its highest quarterly sales to date. Profits were also the second highest for the first quarter,
following the record highs in FY2022. Although the Company’s Q1 plan is not disclosed, both sales and profits
were presumably somewhat above its expectations.
・Orders have been increasing since companies have been actively investing in IT, such as DX and the cloud, due
to their strong corporate earnings. The Company was able to achieve significant growths in sales and profit bystrengthening its production system, working on people development, and optimizing resources.
・Gross margin increased by 1.2 percentage points from 20.2% in the Q1 of the previous fiscal year to 21.4% in the
Q1 of this fiscal year (the same order applies hereinafter). Meanwhile, SG&A expenses increased by 10.7% from
513 million yen to 568 million yen. However, this increase was less than the rate of sales growth, so the SG&A
expense ratio declined by 0.2 percentage point from 13.2% to 13.0%. As a result, operating margin increased by
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1/11

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 Prime)

Issued: 8/15/2023

1.5 percentage points from 7.0% to 8.5%. These improvements of profit margins were brought by greater added
value, improved efficiency, and greater streamlining.
【Figure 1】Summary of Q1 Results
Q1 Results

Consolidated
Category

Unit: million yen or %Consolidated Sales
Sales

1. By Service
Category

Operating Profit

Operating Margin (%)

Sales

2. By Industry

Operating Profit

Operating Margin (%)

Sales

3. By Business Model

Operating Profit

Operating Margin (%)
Consolidated

Service/Category Name

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
Telecommunication & Transportation
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommunication & Transportation
Manufacturing (other)Government (other)
Other (other)
Finance
Distribution
Telecommunication & Transportation
Manufacturing (other)Government (other)
Other (other)
Digital Business
SI Business
Enhancement Business
Digital Business
SI Business
Enhancement Business
Digital Business
SI Business
Enhancement Business

Gross Profit

Gross Margin (%)
SG&A Expenses

SG&A Expense Ratio (%)
New RevenueRecognition
Standard

Operating Profit

Operating Margin (%)
Recurring Profit

Recurring Margin (%)
Net Profit

Net Margin (%)

Q1 FY2022
April-June 2021

3,987
2,985
493
508
311
37
30
10.4
7.5
6.1
934
815
1,062
318
244
610
75
84
148
20
24
24
8.1
10.4
14.0
6.5
10.2
4.0
64
1,082
2,840
0
125
253
0.0
11.6
8.9
863
21.6
483
12.1
379
9.5
390
9.8
264
6.6

Q1 FY2023
April-June 2022

3,892
2,821
440
631
172
34
64
6.1
7.9
10.3
1,128
785
826
344
206
601
101
49
70
5
11
34
9.0
6.3
8.5
1.7
5.4
5.7
102
854
2,936
-4
34
242
-3.9
4.0
8.2
785
20.2
513
13.2
272
7.0
271
7.0
173
4.5

Q1 FY2024
April-June 2023

% Change
YoY: %

Change in Amount or Diff.
YoY: million yen or %

4,376
12.4
3,315
17.5
467
6.2
594
-5.9
296
72.1
40
14.6
33
-48.7
8.9
8.6
5.6
1,397
23.9
956
21.7
644
-22.1
401
16.6
264
28.0
713
18.6
126
24.1
87
77.9
40
-42.6
37
545.9
32
192.8
46
35.7
9.0
9.1
6.3
9.2
12.3
6.5
126
23.6
1,558
82.5
2,692
-8.3
4 To profit
155
352.2
210
-13.3
3.2
9.9
7.8
938
19.4
21.4
568
10.7
13.0
369
35.9
8.5
371
37.0
8.5
232
34.2
5.3

484
493
27
-37
124
5
-31
2.8
0.7
-4.7
269
170
-182
57
58
112
24
38
-29
32
21
12
0.0
2.8
-2.2
7.5
6.9
0.8
24
704
-244
9
120
-32
7.1
6.0
-0.4
153
1.2
55
-0.2
97
1.5
100
1.5
59
0.8

% of Total Amount of Change%% of Total%

FY2024 Full-Year Company Plan
April 2023 - March 2024

% Change Progress in
Q1
YoY: %

100.0
524.5
28.7
-39.4
127.8
5.2
-32.0

100.0
75.8
10.7
13.6
80.2
10.8
8.9

18,000

10.3

24.3%

55.6
35.1
-37.6
11.8
12.0
23.1
24.7
39.2
-29.9
33.0
21.6
12.4

31.9
21.8
14.7
9.2
6.0
16.3
34.1
23.6
10.8
10.0
8.7
12.5

5,501
3,931
2,575

13.2
10.6
-10.7

25.4%
24.3%
25.0%

5,993

19.1

23.0%

5.0
145.5
-50.4
9.3
123.7
-33.0

2.9
35.6
61.5
1.1
42.0
56.9

920
5,850
11,230

52.8
39.8
-2.7

13.7%
26.6%
24.0%

-

-

1,620
9.0
1,635
9.1
1,080
6.0

11.5

22.8%

10.4

22.7%

9.1

21.5%

(Note) Actual results are shown for Q1, while the Company’s forecasts are shown for the full fiscal year (FY2024). Prepared by Alpha-Win Research Dept. based on thefinancial results summary and the financial results briefing supplemental materials. The percent of total amount of change is the proportion of the absolute amount ofchange. Note that throughout this report, due to processing of data during calculations, values for the same item may slightly differ.

Q1: Results by Segment
・Overall, sales increased by 484 million yen YoY and operating profit grew by 97 million yen YoY (see Figure 1
for the description below).

1. Results by Service Category (three categories)
・The System Integration Services (SIS), its core business, accounted for about 80% of total sales and total operating
profit (both for this Q1’s results; the same applies hereinafter). This category’s sales increased by 493 million yen(+17.5% YoY) to 3,315 million yen. System building projects for regional banks, online banks, and a megabankin the financial industry and system building projects for the central government had expanded. Operating marginrose from 6.1% in the previous fiscal year’s Q1 to 8.9%. Operating profit in this fiscal year’s Q1 was 296 million
yen, having increased significantly by 124 million yen (+72.1% YoY).
・The System Outsourcing Services (SOS) accounted for about 10% of total sales and total operating profit. Theirsales also increased by 27 million yen (+6.2% YoY) to 467 million yen and operating profit slightly increased by
5 million yen (+14.6% YoY) to 40 million yen due to the expansion of projects for a component manufacturer.
・As for the Professional Services (ProS), which accounted for about 10% of total sales and total operating profit
like the SOS, sales declined by 37 million yen (-48.7% YoY) to 594 million yen and operating profit was halved
from 64 million yen in the Q1 of the previous fiscal year to 33 million yen (-48.7% YOY) due to the scaling downof system building projects for a telecommunication company in the telecommunication industry.

Short Report

2/11This 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 Prime)

Issued: 8/15/2023

2. Results by Industry (four categories / six categories)
・Sales and profits increased significantly for the three industries excluding the transportation & telecommunicationindustries. Regarding the financial industry, which accounted for 32% of total sales and 34% of total operating
profit (the largest proportion by industry for both), sales increased by 269 million yen (+23.9% YoY) to 1,397
million yen due to the expansion of system building projects for banks as mentioned earlier. Operating margin in
the Q1 of the current fiscal year was 9.0%, which is the same as the previous fiscal year’s Q1. However, operating
profit rose by 24 million yen (+24.1% YoY) to 126 million yen due to the increase in sales.
・Regarding the distribution industry, which accounted for 22% of total sales and 24% of total operating profit, sales
increased by 170 million yen (+21.7% YoY) to 956 million yen due to the expansion of system building projects
for an apparel company, a wholesaler, a cooperative, and a home improvement center. Operating margin also rose
sharply from 6.3% to 9.1%, and operating profit rose by 38 million yen (+77.9% YoY) to 87 million yen.
・Regarding the “other industries” category, which accounted for 31% of total sales and 31% of total operating
profit (the second largest proportions following the financial industry), the businesses with manufacturing
companies, the central government, and other companies all posted profit growth due to increased sales andimproved profit margins. Sales increased by 226 million yen (+19.7% YoY) to 1,378 million yen and operating
profit doubled from 51 million yen to 115 million yen (+64 million yen or +127.3% YoY), contributing the mostto the overall profit growth.
・Regarding the transportation & telecommunication industries, which accounted for 15% of total sales and 11% of
total operating profit (the smallest proportions), sales fell by 182 million yen (-22.1% YoY) to 644 million yen due
to the scaling down of system building projects for a telecommunication company and a shipping company, as
mentioned earlier. Operating profit was also nearly halved from 70 million yen to 40 million yen (-29 million yen
or -42.6% YoY).
3. Results by Business Model (three models)・The Enhancement Business accounted for 62% of total sales and 57% of total operating profit. Its sales declined
by 244 million yen (-8.3% YoY) from the previous fiscal year’s Q1 to 2,692 million yen due to the scaling downof projects for a telecommunication company, a general merchandise store, and a credit card company. Its operating
profit decreased by 32 million yen (-13.3% YoY) to 210 million yen, and its operating margin declined from 8.2%
to 7.8%.
・The SI Business (Lift & Shift: migration from the legacy environment to the cloud environment in “Lift” andstepwise system restructuring while optimizing for the cloud environment in “Shift”) accounted for 36% of total
sales and 42% of total operating profit. Due to the expansion of system building projects for regional banks, online
banks, the central government, an education company, and an apparel company, its sales increased by 704 million
yen (+82.5% YoY) to 1,558 million yen and its operating profit rose sharply by 120 million yen (+352.2% YoY)
to 155 million yen. Operating margin jumped from 4.0% to 9.9%.
・The Digital Business remained small in scale, accounting for 3% of total sales and 1% of total operating profit.
However, due to the expansion of DX projects for end users in the distribution and energy industries, sales were
126 million yen, having increased by 24 million yen (+23.6% YoY). An operating profit of 4 million yen was
posted for this fiscal year’s Q1 in a turnaround from the operating loss of 4 million yen posted in the Q1 of theprevious year (profit improved by +9 million yen YoY).
Q1: Factors that Contributed to An Increase or Decrease in Profit
・The factors that increased or decreased operating profit in the Q1 of the current fiscal year are as shown in Figure
2 on page 4.
・Due to the expansion and enhancement of the production system (strengthening recruitment and expanding sites)(caused profit to decline by -31 million yen YoY) and the development of the management foundation (similarly,-24 million yen YoY), the costs had increased (similarly, a total of -55 million yen YoY). However, since theincrease in the orders received helped to significantly increase profit (similarly, +34 million yen YoY) and theconsolidation of resources to the SI Business’ projects also largely improved profit (similarly, +119 million yen
YoY), operating profit resulted in an increase of 97 million yen YoY (+35.9% YoY).
・The Company’s profits were strong since some of the large orders received in the previous fiscal year were booked
as sales of this fiscal year’s Q1. Additionally, orders have been strong especially in the SI Business, and there wereno major unprofitable projects. Investments in development sites and production expansion seem to have been
conducted as planned, without delays or leftover budget.
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3/11This 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 Prime)

Issued: 8/15/2023【Figure 2】Factors that Increased/Decreased Operating Profit in Q1 (Unit: million yen, YoY)
(Factor that Increased Profit / Factor that Decreased Profit)
450

119

Increase in profit
due to anincrease in theorders received

400

-31

350

34

300

369

-24

Expansion and enhancement of
the production system(strenthening recruitment andexpanding/enhancing sites)

272

250

Consolidation of
resources to the SI
Business' projects(Lift & Shift)

200
150

Building the managementfoundation (people
development and IT
investment)

100
50
0

As of June 2022
(Q1 FY2023)

As of June 2023
(Q1 FY2024)(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing supplemental materials.

Q1: Progress and Seasonality of Quarterly Results
・Progress in Q1 in terms of achieving the Company’s full-year forecast was 24.3% for sales (23.8% in the Q1 ofthe previous fiscal year) and 22.8% for operating profit (17.8% in the Q1 of the previous fiscal year). As reference,the simple average of the progress in Q1 over the past 10 years, including the previous fiscal year, was 22.9% forsales and 16.3% for operating profit. The progress in this fiscal year’s Q1 exceeds these averages for both sales
and profit.
・One of the characteristics of the Company is that its business performance and profit margins tend to fluctuate ona quarterly basis. The fourth quarter (Q4 or Jan-Mar) tends to contribute the most to the full-year results (past ten
years’ average: 27.6% of full-year sales and 33.6% of full-year operating profit). The next largest is the second
quarter (Q2 or Jul-Sep; average of 25.8% and 26.8%, respectively), followed by the third quarter (Q3 or Oct-Dec;
average of 23.7% and 23.2%, respectively). Q1 has generally been the smallest in contribution (Figures 3-5).
【Figure 3】Quarterly Change in Sales(Unit: million yen)

【Figure 4】Quarterly Change in Operating Profit(Unit: million yen)

5,000

600

4,500

500

4,000
3,500

400

3,000
2,500

300

2,000

200

1,500
1,000

100

500
0
FY2014FY2015FY2016FY2017FY2018Q1

FY2019Q2Q3

FY2020Q4

FY2021

FY2022

FY2023

FY20240
FY2014FY2015FY2016FY2017FY2018Q1

FY2019Q2Q3

FY2020

FY2021

FY2022

FY2023

Q4(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. (Note) Q2 FY2024 was calculated based on the Company’s forecast.

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4/11

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.

FY2024

Alpha-Win Company Research Report
CUBE SYSTEM INC. (2335 TSE Prime)【Figure 5】Quarterly Change in Operating Margin(Unit: %)Issued: 8/15/2023【Figure 6】Changes in Q1 Sales, Order Backlog, and Orders
Received (Unit: million yen)

14.0%

5,000

12.0%

4,500

10.0%

4,000
3,500

8.0%

3,000

6.0%

2,500

4.0%

2,000
1,500

0.0%

1,000

FY
20
14
FY
20
15
FY
20
16
FY
20
17
FY
20
18
FY
20
19
FY
20
20
FY
20
21
FY
20
22
FY
20
23
FY
20
24

2.0%

Q1

Q2

Q3

Q4

FY

(Ref) Figures 5 and 6 were prepared by Alpha-Win Research Dept. based on
the financial results briefing supplemental materials. (Note) Q2 FY2024
was calculated based on the Company’s forecast.

5000FY2018FY2019FY2020Orders Received

Sales

FY2021

FY2022

FY2023

Order Backlog

Orders Received
・The overall amount of orders received increased steadily from 3,751 million yen in the same period of the previous
fiscal year to 4,633 million yen (+881 million yen or +23.5% YoY). Similarly, the order backlog steadily increased
from 4,135 million yen to 4,828 million yen (+692 million yen or +16.8% YoY) (Figure 6).
Orders Received: By Industry (four categories)
・Regarding both the orders received in Q1 from each industry and the order backlog, the decline in the businesswith the transportation & telecommunication industries has been offset mainly by the strong performance of thebusiness with the financial industry, similar to sales.
Orders Received: By Business Model (three models)・The decline in the orders received and the order backlog in the Enhancement Business (-147 million yen or -5.4%
YoY and -66 million yen or -2.2% YoY, respectively) has been offset by their significant increase in the SI
Business (Lift & Shift) (+975 million yen or +101.6% YoY and +748 million yen or +75.0% YoY, respectively).
Number of Employees and Productivity
・In the Company’s business model, sales growth is generally directly correlated with the number of employees.
The total number of employees in Japan and overseas has been steadily increasing from 707 in June 2017 (end ofmonth) → 745 in June 2018 (+38 or +5.4%) → 766 in June 2019 (+21 or +2.8%) → 799 in June 2020 (+33 or+4.3%) → 829 in June 2021 (+30 or +3.8%) → 882 in June 2022 (+53 or +6.4%) → 904 in June 2023 (+22or +2.5%). Its capacity in terms of human resources has been increasing. However, although it has been improving
conditions for employees and enhancing recruitment by incorporating web interviews, the demand for systemdevelopment has continued to increase and the Company is still somewhat short of talents.
・The Company has been focusing on improving productivity. Looking at its major management indicators, thequarterly sales per employee in Japan has been improving in the order of Q1 FY2021 → Q1 FY2022 → Q1
FY2023 → Q1 FY2024 from 4,737 thousand yen / person → 5,402 thousand yen / person → 5,082 thousand
yen / person → 5,744 thousand yen / person. Similarly, the quarterly operating profit per employee in Japan has
been improving from 339 thousand yen / person → 513 thousand yen / person → 355 thousand yen / person →485 thousand yen / person.
Balance Sheet
・There has been no significant change in the balance sheet as of the end of Q1. The Company has ample liquidity
on hand, with cash & deposits of Y6.4 billion (4.3 months’ worth of the average monthly sales forecasted for thisfiscal year; essentially debtless). With also a current ratio of 452.5% and an equity ratio of 76.5%, its financial
standing is firm. Going forward, the key points will continue to be the enhancement of shareholder return and theeffective utilization of its excess capital for future growth, such as M&As, business alliances, investments, andfinancing.
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5/11This 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 Prime)

Issued: 8/15/2023◆No change to the first-half or full-year forecast since the beginning of the fiscal year
・The Company has not changed its forecasts for the first half or the full year since their announcement at the
beginning of the fiscal year.
First Half: Company Forecast
・In the first half, the Company plans to achieve sales of 8,577 million yen (+685 million yen or +8.7% YoY),
operating profit of 700 million yen (+102 million yen or +17.0% YoY), and net profit of 457 million yen (+69
million yen or +17.7% YoY). It plans to increase both sales and profit and expects to achieve record high first-halfsales for the consecutive year. Regarding profit, it expects each profit to reach the second highest levels following
the results of the first half of FY2022.
Full Year: Company Forecast
・The Company has maintained its initial full-year forecasts that were announced at the beginning of the fiscal year:
18,000 million yen in sales (+10.3% YoY), 1,620 million yen in operating profit (+11.5% YoY), and 1,080 million
yen in net profit (+9.1% YoY). It expects to achieve sales and profit growths in the current fiscal year, as it did in
the previous fiscal year, as well as achieving record-high sales and profits for the consecutive year.
・The Company plans to pay an annual dividend of 30 yen per share (15 yen for the first half and 15 yen for the endof the fiscal year). In the previous fiscal year, the Company also paid a commemorative dividend for the celebrationof its 50th anniversary (total of 24 yen/share), so the annual dividend totaled 50 yen per share (ordinary dividend
was 26 yen/share). This fiscal year, there will be no commemorative dividend, but the annual dividend will
essentially be increased by 4 yen per share in terms of the ordinary dividend.

・ The Company has been working on increasing sales activities while taking measures against COVID-19(combination of decentralized/non-face-to-face sales activities using digital technologies and in-person sales) andstrengthening its prioritized approach toward customers who are actively conducting strategic IT investments(strengthening its sales activities toward its major customers, expanding the existing businesses, and developing
new domains or areas of business). Through these efforts, it plans to continue increasing its earning power andenhancing shareholder return.
・The Company has announced its policy to raise the targeted consolidated dividend payout ratio from 35% to 40%
starting in FY2024.
This Fiscal Year: Alpha-Win Research Department’s Forecast
Full Year・We maintained our previous forecasts for the current fiscal year, forecasting sales of 17,800 million yen, operating
profit of 1,600 million yen, and net profit of 1,065 million yen. These are slightly lower than the Company’s planfor this fiscal year by 200 million yen for sales, by 20 million yen for operating profit, and by 15 million yen fornet profit. We have estimated the operating margin to be 9%, which is the same level as the Company’s plan.
・The received amount of orders and the order backlog have been increasing and firm thanks to its customers’
enthusiasm in strategic IT investments (Figure 6 on page 5). The Q1 results have presumably somewhat exceeded
its expectations, and the Q2 forecasts seem conservative too. Therefore, we believe that if the Company conducts
appropriate cost control in Q2 and the second half, the full-year profit forecasts will be within an achievable range.

・However, considering the estimated sales growth rate for the second half of this fiscal year (+11.7% YoY), theCompany’s plan (for the second half) seems somewhat ambitious. Therefore, taking into account the risks to acertain extent, such as the rise in subcontracting cost, personnel expenses, and various other costs, we have madea somewhat cautious forecast for this fiscal year compared to the Company’s plan (see our previous report issued
on June 9, 2023).
・With the inflation, the rise in domestic interest rates, and the global uncertainty, customers in Japan are generally
becoming polarized regarding their IT investments. Some of the Company’s customers (companies) withdeteriorating business performance seem to be starting to hold down their IT investments.
・Concerning the Company, there is currently generally no sign of slowdown in negotiations or in receiving orders.
The Company has been receiving orders for strategic or derivative projects from industries with strong businessperformance, while also shifting to high-profit projects and improving its resource efficiency. The impact of theworsening environment is therefore expected to be relatively limited.
Short Report

6/11

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 Prime)

Issued: 8/15/2023

First Half
・The Company has a large order backlog of 4,828 million yen as of the end of Q1. IT investments by companies
have been strong and the supply-demand balance is tight. Also, the Company will likely continue to receive orders
for system building projects from the financial and manufacturing industries with strong business performance andorders for the expanding DX investment projects. Additionally, the Company’s business is centered on a stable,
contract-based business model. Therefore, regarding the first half of this fiscal year, we believe that the downside
risks of sales and profits will both be limited and the Company may also be able to revise its profits upward by
about 10%.
・Subtracting the Q1 results from the Company’s first-half forecasts, the forecasts for Q2 (Jul-Sep) come out to be
4,201 million yen for sales (+201 million yen or +5.0% YoY), 331 million yen for operating profit (+5 million yenor +1.5% YoY), and 225 million yen for net profit (+10 million yen or +4.7% YoY). In the Q2 of this fiscal year,
the Company expects a slight YoY increase in sales and profits, a decline in the momentum compared to Q1 (YoY
growth rates of sales and profits), and a decline in the operating margin (the margin was 7.0% in the previous fiscal
year’s Q1 and 8.2% in the previous fiscal year’s Q2 ⇒ 8.5% in this fiscal year’s Q1 and expected to be 7.9% inthis fiscal year’s Q2). These forecasts seem somewhat conservative, though (Figure 7).
Second Half
・The Company’s plan for the second half (i.e., full-year forecast minus first-half forecast) is as follows: sales of
9,423 million yen (+989 million yen or +11.7% YoY), operating profit of 920 million yen (+66 million yen or+7.7% YoY), and net profit of 623 million yen (+21 million yen or +3.7% YoY). Operating margin was 10.1% in
the previous fiscal year’s second half but is planned to be 9.8% in this fiscal year’s second half. Compared to thesecond half of the previous fiscal year, the Company expects a double-digit sales growth, a single-digit profit
growth, and a slight decline in the profit margin. Comparing the second-half and the first-half forecasts for thisfiscal year shows that the Company expects an increase in sales by 847 million yen (+9.9%), an increase inoperating profit by 220 million yen (+31.4%), and an increase in operating margin (from 8.2% to 9.8%). In past
years, there has been a seasonal cycle in which the effect of increasing employees usually begins to be fully seenin the second half as new employees begin their actual work. Project delivery deadlines also tend to be concentrated
in Q4. Therefore, the Company’s plan for sales and profit growth in the second half seems mostly reasonable,
although the plan for sales is somewhat high.
・Future increases in costs, such as investment in human resources, business investment to expand development
sites, investment in its own DX (improvement of operational productivity), investment in the development of its
own products, and the increase in personnel expenses, seem to have been factored into the financial forecast to
some extent. Therefore, there seems to be some room to accommodate for changes and cost control.
【Figure 7】This Fiscal Year’s Financial Forecasts (First Half, Second Half, Q1, and Q2)
Unit: million yen
Sales

Last Fiscal Year's
Results
FY2023This Fiscal Year's
Company Forecasts
FY2024

16,32518,000

FY2023First-Half Results

FY2024First-Half Plan

7,892

8,577

YoY
Change(%)

FY2023
Second-Half Results

FY2024
Second-Half Plan

8,433

9,423

8.7%

YoY
Change(%)
11.7%

FY2023
FY2023
Q1 Results Q2 Results
3,892

4,000

FY2024
Q1 Results
4,376

Gross Profit

3,570

1,651

1,919

785

866

938

Gross Margin

21.9%

20.9%

22.8%

20.2%

21.6%

21.4%

1,053

1,065

FY2024FY2024 FY2024
Q2 Forecasts Q1: YoY Q2: YoY
4,201

12.4

5.0

SG&A Expenses

2,118

513

539

568

SG&A Expense Ratio

13.0%

13.2%

13.5%

13.0%

Operating Profit

1,452

1,620

598

700

17.0%

854

920

7.7%

272

326

369

331

35.9

1.5

Operating Margin

8.9%

9.0%

7.6%

8.2%

0.6%

10.1%

9.8%

-0.4%

7.0%

8.2%

8.3%

7.9%

1.3%

-0.3%

Recurring Profit

1,480

1,635

594

700

17.8%

886

935

5.5%

271

323

371

329

37.0

1.9

Net Profit

989

1,080

388

457

17.7%

601

623

3.7%

173

215

232

225

34.2

4.7

13.3%

12.6%

(Ref) Prepared by Alpha-Win Research Dept. based on the Company’s forecasts.

Medium Term: Alpha-Win Research Department’s Forecast
・We have not changed our medium-term forecasts of the Company’s financial performance (our financial forecasts
for the next fiscal year onward have been maintained; Figure 8 on page 8).
・IT investments by the Company’s users (companies) are expected to keep increasing as they develop new businessmodels, strengthen their competitive edge, work on solving employee shortages, streamline and speed up
operations, work on DX, and shift to the cloud. Therefore, the Company’s growth potential is large.
・With strong IT demand from companies, the Company expects to achieve top-line growth by utilizing its abundant
cash on hand to increase employees and expand its development sites. We forecast that through the expansion of
the Digital and the SI businesses, the effect of the alliance with NRI, the development of new customers and newareas of business, and various measures to improve productivity, the Company will be able to maintain a stablesales and profit growth trend of around 6-10% per year over the medium term.
Short Report

7/11

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 Prime)

Issued: 8/15/2023【Figure 8】Medium-Term Financial Forecasts
Unit: million yen or %Sales
Digital Business
SI Business
Enhancement Business
Gross Profit
Gross Margin
SG&A Expenses(Ratio to sales)

Operating Profit(Ratio to sales)

Recurring Profit(Ratio to sales)

Net Profit(Ratio to sales)

Sales (% YoY growth)Gross Margin (% YoY diff.)
SG&A Expenses (% YoY growth)

Operating Profit (% YoY growth)
Recurring Profit (% YoY growth)
Net Profit (% YoY growth)

FY2023 Results FY2024 Medium-Term Plan CE
16,32519,000
602
1,000
4,183
5,700
11,53912,300
3,570
21.9%
2,118
13.0%
1,452
1,710
8.9%
9.0%
1,480
9.1%
989
6.1%
1.4%
0.4%
4.2%
2.4%
3.3%
4.8%

FY2024 CE

18,000920
5,850
11,230

1,620
9.0%
1,635
9.1%
1,080
6.0%

16.4%

10.3%

17.7%

11.5%
10.4%
9.2%

FY2024 E
17,800900
5,800
11,100
3,900
21.9%
2,300
12.9%
1,600
9.0%
1,615
9.1%
1,065
6.0%

FY2025 E
19,0001,200
6,200
11,600
4,150
21.8%
2,425
12.8%
1,725
9.1%
1,755
9.2%
1,155
6.1%

FY2026 E
20,5001,700
6,800
12,000
4,500
22.0%
2,650
12.9%
1,850
9.0%
1,870
9.1%
1,235
6.0%

9.0%
0.0%
8.6%
10.2%
9.1%
7.7%

6.7%
-0.1%
5.4%
7.8%
8.7%
8.5%

7.9%
0.1%
9.3%
7.2%
6.6%
6.9%

(Ref) Prepared by Alpha-Win Research Dept. (Note) CE: the Company’s forecast/estimate. E: Alpha-Win Research Dept.’s forecast/estimate.

◆ Stock price and characteristics: Significantly outperforming the TOPIX over the longterm as a stable growth stock centered on domestic demand. The current level of valuation
is about average.
Performance・Over the past approximately 14 years, the Company’s stock price has increased by about 6.1x thanks to its solid
financial performance, significantly outperforming the TOPIX (by about +340%).
・The recent stock market has been impacted by the weak yen, economic recovery, and rising interest rates, andinbound-related stocks and large-cap stocks have been strong. Although the Company is a defensive, domesticdemand-oriented, and small-cap stock, it has only slightly underperformed the TOPIX over the past 12 months(Figure C on page 11).
・Concerning its two competitors listed on the TSE Prime Market (HIMACS with securities code 4299 and Toho
System Science with securities code 4333), upon their announcement of Q1 results, HIMACS announced an
upward revision of its full-year financial results and Toho System Science announced an essential increase individend. Consequently, in the short term, the Company’s stock has been slightly underperforming both companies
in comparison.
Valuation
・Currently, the average valuation of all companies listed on the TSE Prime is as follows: forecasted P/E of 15.4,
P/B of 1.3, and forecasted dividend yield (simple average) of 2.2% (based on the closing price of August 7, 2023).
・Compared to these, the Company’s valuation is close to average (in terms of the P/E and dividend yield).
Considering this fiscal year’s strong financial performance and its growth potential over the medium term, its
valuation does not seem expensive.
・The current stock price seems to reflect the relatively low volatility seen from its past financial results, the provenstable growth in profit, and positive expectations for the future.
・Compared to its two competitors mentioned above (HIMACS and Toho System Science), its valuation is in the
middle range (second highest among the three companies) in terms of the major valuation measures excluding
dividend yield (which is the lowest) (Figure 9 on page 9).

Short Report

8/11

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 Prime)

Issued: 8/15/2023【Figure 9】Comparison of Valuation with Competitors
Company Name
Code
Stock Price (closing price on 8/7)
Market Cap (million yen)
P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)
Q1 FY2024: Sales (million yen)
Q1 FY2024: Operating Profit (million yen)
Q1 FY2024: YoY Sales Growth Rate (%)
Q1 FY2024: YoY Operating Profit Growth Rate (%)
Q1 FY2024: Operating Margin (%)
Q1 FY2024: Progress with Sales (%)
Q1 FY2024: Progress with Operating Profit (%)
FY2024 Full-Year Company Forecast: Sales (million yen)
FY2024 Full-Year Company Forecast: Operating Profit (million yen)
FY2024 Full-Year Company Forecast: YoY Sales Growth Rate (%)
FY2024 Full-Year Company Forecast: YoY Operating Profit Growth Rate (%)
FY2024 Full-Year Company Forecast: Operating Margin (%)

CUBE SYSTEM(CS: consolidated)

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

2335

4299

4333

1,173
18,504
16.47
1.88
2.56
7.37
1.03
4,376
369
12.4
35.9
8.5
24.3
22.8
18,000
1,620
10.3
11.5
9.0

1,412
17,527
14.31
1.60
3.05
5.41
0.97
4,335
285
-2.3
-29.1
6.6
23.9
17.0
18,150
1,680
4.7
-8.3
9.3

1,727
23,947
29.69
2.37
3.47
9.18
1.45
3,944
328
8.0
-1.5
8.3
23.9
21.2
16,500
1,550
6.8
2.3
9.4

(Ref) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary and stock price data.
(Note)・Market cap = number of shares outstanding x stock price (closing price on 8/7/2023).
・EPS values used in P/E calculations are based on each company’s forecast for FY2024.
・BPS values used in P/B calculations reflect this fiscal year’s Q1 results.
・EV/EBITDA = (market cap + interest-bearing debt – cash & deposits) / (operating profit + depreciation + intangible fixed assets amortization,etc.). Interest-bearing debt and cash & deposits are based on this fiscal year’s Q1 results. Operating profit is based on each company’s fullyear forecast for this fiscal year. Depreciation and intangible fixed assets amortization, etc., are based on the previous fiscal year’s results.
・P/S = market cap ÷ sales (each company’s forecast for FY2024).
・Q1: results from April to June.
・HIMACS: reflects its upward revision of results announced on July 28, 2023. Plans to move from the Prime Market to the Standard Market
on October 20, 2023.
・Toho System Science: reflects the revision that essentially increases its dividend. However, the values to not reflect the 1.5-for-1 stock split
that is planned to be conducted on September 1, 2023.

Stock Price Outlook
・Going forward, the Company’s stock price will likely be impacted by the progress with its business performance(first-half and full-year profit levels and order trends) and changes in stock returns (whether there will be dividend
hikes, share buybacks, and stock splits).
・In the medium term, the key points will be changes in the top line (sales growth rate, recruitment and retaining of
employees, and the effect of the alliance with NRI) and changes in the profit margins (gross margin, operating
margin, and SG&A expense ratio). Another key point is the contribution of the SI Business and the Digital Businessto profit, as well as the business performance and IT investment trends of Japanese companies that are its end users(the environment surrounding the Company’s reception of orders; changes in the volume of orders received andthe price per contract).
・We believe that if the Company can maintain a nearly double-digit, stable profit growth rate, its stock price may
rise further to adjust for the level of P/E and the increase in EPS.
・From a medium- to long-term perspective, the Company may be considered a candidate for investment as adefensive, stable growth stock centered on domestic demand.

Short Report

9/11

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 Prime)【 2335 CUBE SYSTEM

Sector: Information & Communication 】

FY

2020
2021
2022
2023
2024
2024
2024

Issued: 8/15/2023
Figure A

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

YoY

EPS

BPS

Dividend(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

(%)

(Y)

(Y)

(Y)

Revised Medium-Term Plan CECEE

14,70814,78816,09916,32519,00018,00017,800

2025

E

2026

E

2018

2.7
0.5
8.9
1.4

4.1
22.5
20.7
2.4

976
1,295
1,432
1,480

1.7
32.7
10.6
3.3

525
844
944
989

-11.9
60.7
11.9
4.8

38.69
62.11
69.82
70.35

411.96476.52531.14634.29

18.0
20.0
23.0
50.0

10.3
9.0

959
1,174
1,417
1,452
1,710
1,620
1,600

11.5
10.2

1,635
1,615

10.4
9.1

1,080
1,065

9.1
7.7

71.23
70.25

Not Disclosed
657.0230.0
30.0

19,000

6.7

1,725

7.8

1,755

8.7

1,155

8.5

76.18

703.2032.0

20,500

7.9

1,850

7.2

1,870

6.6

1,235

6.9

81.46

752.66

34.0

Q1

3,082

1.4

109

52.4

132

80.5

76

131.3

5.45

393.29

0.0

2019

Q1

3,379

9.6

100

-8.8

107

-19.0

50

-34.2

3.70

379.63

0.0

2020

Q1

3,373

-0.2

242

141.3

248

130.8

165

229.3

12.17

418.69

0.0

2021

Q1

3,987

18.2

378

56.5

390

57.1

262

59.0

19.35

487.51

0.0

2022

Q1

3,892

-2.4

272

-28.1

271

-30.5

173

-34.0

12.84

543.58

0.0

2023

Q1

4,376

12.4

369

35.9

371

37.0

232

34.2

15.36

622.93

0.0

2021

Q2

4,073

9.8

368

18.7

362

2.0

239

1.7

17.65

8.0

2022

Q2

4,000

-1.8

326

-11.4

323

-10.8

215

-10.0

15.89

23.0

2023

Q2 CE

4,201

5.0

331

1.5

329

1.9

225

4.7

14.78

15.0

2021

H1

8,060

13.8

746

35.1

752

24.6

501

25.3

37.00

8.0

2022

H1

7,892

-2.1

598

-19.9

594

-21.0

388

-22.6

28.73

23.0

2023

H1 CE

8,577

8.7

700

17.0

700

17.7

457

17.7

30.14

15.0

2022

H2

8,039

4.3

671

7.9

680

-1.7

443

-0.2

32.82

15.0

2023

H2

8,433

4.9

854

27.3

886

30.3

601

35.7

41.62

27.0

2024

H2 CE

9,423

11.7

920

7.7

935

5.5

623

3.7

41.09

2022

Q2-Q4

12,112

6.1

1,039

11.5

1,042

-0.5

682

0.4

50.47

-

23.0

2023

Q2-Q4

12,433

2.7

1,180

13.6

1,209

16.0

816

19.6

57.51

-

50.0

2024

Q2-Q4 CE

13,624

9.6

1,251

6.0

1,264

4.5

848

3.9

55.87

15.0

30.0

(Note) CE: the Company’s forecast/estimate. E: Alpha-Win Research Dept.’s forecast/estimate. “Revised Medium-Term Plan CE” isthe Company’s forecast announced on May 11, 2022. Q1: April to June. Q2: July to September. H1 (first half): April to
September. H2 (second half): October to March. Q2-Q4: July to March.

【 Stock Price and Valuation Indicators: 2335 CUBE SYSTEM 】

Figure B

Item

8/7/2023

Item

Stock Price (Y)1,173Last FY (actual)

16.7

1.8

4.3%

71.1%

Shares Outstanding (thou.)

15,750This FY (est.)

16.7

1.8

2.6%

42.7%

Market Capitalizatoin (million yen)

18,475

Next FY (est.)

15.4

1.7

2.7%

42.0%

Equity Ratio at the End of This FY's Q1

76.5%

Last FY's ROE

11.8%

Dilutive Shares (thou.)

0

P/E

P/B

Dividend Yield

Dividend Payout Ratio(Note) Estimates for the current and the next fiscal year were made by Alpha-Win Research Dept.

Short Report

10/11This 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 Prime)

Issued: 8/15/2023【 Stock Chart (end-of-week prices): 2335 CUBE SYSTEM 】 Figure C
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400

Stock Price (left axis)
Price Relative to TOPIX (right axis)

2.00
1.90
1.80
1.70
1.60
1.50
1.40
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60

09
/1
6
01
/1
7
05
/1
7
09
/1
7
01
/1
8
05
/1
8
09
/1
8
01
/1
9
05
/1
9
09
/1
9
01
/2
0
05
/2
0
09
/2
0
01
/2
1
05
/2
1
09
/2
1
01
/2
2
05
/2
2
09
/2
2
01
/2
3
05
/2
3
(M
M
/Y
Y)

(Y)

(Note) From the first week of September 2016 to August 7, 2023

【Performance】
PeriodReturn vs. TOPIX
1 month-3.0%-1.3%
3 months
1.9%-5.3%
6 months
1.7%-12.8%
12 months
12.4%
-4.0%
(Note)
・Reflects stock and index prices through theclosing price on 8/7/2023.
・“Vs. TOPIX” is the relative value after
subtracting the TOPIX’s performance from theperformance of the Company’s stock.
・Performance for the 1-month period is thecomparison between the closing price on the last
day of July and the closing price on 8/7 (the same
applies to the other periods).

＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimer
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 this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor 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.
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. Alpha-Win, the writer,
and/or other persons involved in the publication of this Report may already hold, or buy and sell in the future, thestock of the company presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject to change
without notice. For the latest (updated) report, please see our website (https://www.awincap.com/). We also
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.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied, cited, ortranslated 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.
SV2023-0814-1700

Short Report

11/11

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.