Cybozu, Inc.
Financial Results Briefing for the Fiscal Year Ended December 2023
February 27, 2024

Event Summary
Company Name

Cybozu, Inc.

Company ID

4776-QCODE

Event Language

JPN

Event TypeEarnings Announcement

Event Name

Financial Results Briefing for the Fiscal Year Ended December 2023

Fiscal Period

FY2023 Annual

Date

February 27, 2024

Number of Pages

47

Time

13:00 – 14:26(Total: 86 minutes, Presentation: 48 minutes, Q&A: 38 minutes)

Venue

WebcastVenue Size
Participants
Number of Speakers

6
Yoshihisa Aono
Tadamasa Hayashi
Yumika Nakane

Keito Kuriyama

Teppei Sato
Ikki Tamada

Representative Director & President
Director, Executive Officer,
General Manager, Corporate Affairs Division
Executive Officer,
General Manager, Human Resources Division,
General Manager, Legal & Compliance Division
Executive Officer,
General Manager, Marketing Division,
General Manager, Business Strategy Office
Executive Officer,
General Manager, Development Division
Executive Officer, Sales Division

Presentation
MC: Thank you very much for taking time out of your busy schedule today to attend the Cybozu, Inc., financial
results briefing for the fiscal year ending December 2023. My name is Yoshimura from Public Relations at
Cybozu and I will be the MC today. Thank you for joining us.
Today's financial results briefing and business overview presentation is being simultaneously streamed live
via Zoom webinar and YouTube Live. After my housekeeping announcements, Representative Director &President, Mr. Aono, will commence his presentation.
You may take pictures of the slides during the presentation and post them on social media. However, someslides are marked with a DO NOT PHOTOGRAPH icon in the upper right corner. Please refrain from taking
photos of those slides. After the presentation, there will be time for questions.
Now, Mr. Yoshihisa Aono, Representative Director & President of Cybozu, will report on the financial results
and business performance for the fiscal year ended December 31, 2023.

Aono: Hello, everyone. This is Aono from Cybozu. I will now present our financial results and businessoverview for the year ended December 31, 2023.
Firstly, here is an overview of the Company. What has changed here in the past year is the number of
employees has increased. The number of open-ended contract (permanent) employees on a stand-alone basis
surpassed the 1,000 mark, and the number of employees on a consolidated basis has grown to nearly 1,300
people in total.

Here is our corporate vision, and what our employees are working on. We at Cybozu are very particular about
our corporate vision so I will explain it in detail. First of all, with all of the people we have gathered together,
we are trying to build a society brimming with teamwork. We believe that human beings are still not great at
teamwork and should be able to get better at teamwork, and this is our purpose and raison d'etre: To build asociety brimming with teamwork.
Specifically, below Purpose, you will see Culture, and the cultural elements stated here are how we will go
about building a society brimming with teamwork, so let me describe them and what kind of teams we wantto generate more of. For example, the first cultural element is Share a common vision. If you have a team but
the team members are not working toward the same vision, if they have goals but the goals are not reallyshared, then it’s not a very good team. Sharing a common vision is the cultural element we value the most,so that is why we put it top of the list.
Second, we place emphasis on embracing individuality. There are many different types of teams, and while
traditionally it was fine for Japanese companies to ignore individuality and have everyone be uniform, in
future eras I think it would be better to embrace diverse individuality.
Also, in the survival of the fittest business culture in US and Europe, only the strong survive and win as a team,which is not a bad thing. However, the ideal teamwork we want to create is one teamwork where various
people value their own and other’s individuality. We would much rather there be more 21st-century-styleteams that embrace individual differences and make the most of each other's strengths, so that is why wehave made Embrace individuality our second cultural element.
However, if we want to succeed in the art of teamwork that takes advantage of diverse personalities, we mustfirst be transparent, and we must share information openly and understand each other really well.
Furthermore, based on that information we must each then be willing to be self-reliant and motivated and to
take the initiative to drive improving teamwork together. That is why we have made Be transparent and Be
self-driven & autonomous (provisional translation), our third and fourth cultural elements.

However, when it comes to executing on these cultural elements, what we need is the final cultural element,a platform for a culture of engaging in dialogue and discussion with each other. These are what we envision
as the elements of good teamwork.
Right now, the fourth and fifth elements I have described are actually still combined together into a single
fourth element titled, Be yourself, take responsibility. However, the opinion was voiced within the company
that we should review our company vision, and after discussion, we have decided to try and split the fourthcultural element into these two parts, into a fourth element Be self-driven & autonomous (provisionaltranslation), and add a fifth element Engage in dialog & discussion (provisional translation), to create a newcompany vision.
At Cybozu, we value our company vision so much that we have made it an agenda item for resolution at theAnnual Shareholders Meeting, which will be held on March 30 this year.

If we want to increase the number of teams like these, the way we use tools must align with this. For example,
if we share information in an analog manner, it’s hard for everyone to share information with each othertransparently, and even if we digitize, if the organization is siloed like this, it will cause fragmentation of
teamwork and put up organizational barriers.
The worldview we are aiming to create is shown on the right. Our aim is to achieve the kind of teamwork
where more people can share more information on a single platform and can all have access to that
information as they take a self-driven approach to their work, and so we want to provide the tools in line withthis.

These are the four specific groupware services we offer: Cybozu Office, which makes it easy for small andmedium-sized companies to share various information; Garoon, which can also be used by large companies;
Kintone, which enables information sharing for a wide-range of business operations; and Mailwise, adedicated e-mail information sharing service.

Our mainstay product is Kintone. Kintone is an extremely versatile information sharing platform that allows
you to build all kinds of apps and share a diverse range of information.
That said, the hurdle is who is going to build what kinds of apps for this platform. And, to that end, we havedevised a variety of measures to overcome this hurdle.
First, we have made Kintone a no-code tool. You cannot share a whole bunch of different information if a lotof programming is required to build the system in the first place. So, we make it possible for people who know
nothing about programming to create apps without having to code.
Furthermore, since there are limits to what can be done with Kintone alone, we are working with our partners
to expand the scope of what this platform can do by extending its functionality with plug-ins and integrating
it with external services created by partners.
However, because it’s not always easy for the people on the frontline doing the day-to-day work to be acrossall of this, when you need assistance you can engage one of the companion-runner partners (partners who
provide hands-on deployment support) who we have developed as a resource to assist your non-IT people on
the frontline. We are also focusing efforts on our user communities where users connect with each other,exchange information, share know-how, as well as invigorate and further motivate each other.
By working hard in all of these areas, each person out in the field will be reskilled, and with that higher-levelof skill each person will grow to become a Digital Transformation (DX) human resource, thereby progressinguser companies’ ability to drive and insource DX themselves, which is the worldview we envision.
So this is something interesting about Cybozu. We are not just talking about creating SaaS services, what weare currently trying to do is to create this kind of worldview along with our products, to build a society
brimming with teamwork.

This is our company-wide slogan for the next three years, from 2023 to 2025. It’s called 25BT. The slogan for2021 and 2022 was more of a short-term plan to increase name recognition, raise awareness, and develop
customers. 25BT is a switch to conversely work on what we can do in the medium term, and to prepare to beable to engage in major work in the medium to long term in anticipation of the years 2025 and beyond.

From here, I would like to present the fiscal year results for the year just passed. First, sales and profits. In
fiscal 2023, consolidated net sales were JPY 25.4 billion and consolidated operating income was just over JPY
3.3 billion. In terms of numbers, this is a record high. In 2021 and 2022, we decided to go for short-term
recognition and invested aggressively in advertising and other expenses under the slogan BET!, which resulted

in a temporary decline in profits, but we have returned to a steady state, which means that sales and profits
have returned to their previous trends.

Here you can see the previous two fiscal years, and the forecast for the current fiscal year. Sales have been
increasing by approximately JPY 3 billion each year, and we expect that for the current fiscal year sales will
increase similarly to the previous fiscal year, while we also project operating income to come in at a little over
JPY 3 billion this fiscal year.

This is a breakdown of the FY2023 results. As I mentioned earlier, sales came in at JPY 25.4 billion, which is anincrease of a little over JPY 3.3 billion YoY. Advertising expenditure dropped by about JPY 2 billion, from JPY
6.4 billion in FY2022 to JPY 4.3 billion in FY2023, which had a major positive effect on profitability.
On the other hand, I would like to draw your attention to the fact that investments are now being redirected
to medium- and long-term development, and R&D expenses are increasing. We are now working hard on R&D
for growth in 25BT and beyond.
Operating profit was a little over JPY 3.3 billion last financial year.

As for advertising expenses, which are of interest, to give you some details, in 2021 and 2022, the namerecognition of Kintone was still low, so we invested aggressively in TV commercials and other advertising forthe purpose of gaining recognition.
Thanks to this, Kintone brand recognition has been continually increasing, as shown by the yellow line in thegraph. I think this is also due to the TV commercials. Since recognition has increased a lot, we decided to try
to return our advertising expenditure back down to a steady level for a while, and this time, as shown by the
red line in the graph, the percentage of advertising expenditure to sales previously rose from 17% to levels of
27% and 29%, but in the 2023 financial year, our advertising spend returned to 17% again. That is because wewere trying to bring advertising spend back down to a more constant level.
Thanks to the Kintone TV commercials recognition is becoming more widespread, and we have come to thepoint where, you can go to different places around Japan and find that people know the name Kintone, In fact,
it’s come to the stage where the product name Kintone is rather better known than the company name
Cybozu.
From this fiscal year onward, I would like to keep a bit of an eye on that balance and consider the advertising
spend. Although we considerably narrowed down our advertising last fiscal year, we will continue to focus onadvertising while keeping a close eye on the balance, as we do tend to gain a great deal from investing heavily
in advertising, particularly in TV commercials.

Continuing on, here is the balance sheet. There has been one major change and that is in the area ofborrowings. Borrowings, which were over JPY 4.6 billion as of the end of the 2022 fiscal year, had been
eliminated as of the end of the 2023 fiscal year.
This is partly because we became more profitable as a company, of course, but the biggest factor here is that
we sold some of our treasury stock, which allowed us to pay off all of our debt. To elaborate, Ricoh, withwhom we now have a business alliance, bought our treasury stock, which has enabled us to repay all of ourloans.

I will continue by discussing the details of the business and future challenges. First, our mainstay product,
Kintone, achieved sales of over JPY 13 billion in FY2023. In terms of the growth rate, this translates to positive
growth of 24.9%. Thanks to this, sales have increased considerably.

As of December 31, 2023, the number of signed-up Kintone user companies is 32,800 and roughly 650
companies are coming on board as new Kintone users every month. One-in-three companies listed in thePrime Section of the Tokyo Stock Exchange (TSE) is using Kintone in some departments in their organization.
Our user companies come from a wide variety of industries. There is not a skew towards one industry, butrather that Kintone's versatility has led to its adoption in a wide variety of industries. Another continuing
positive trend is the high level of support that Kintone enjoys from frontline staff, and the fact that Kintone
can be easily deployed by internal teams rather than it having to be deployed by the IT department.

The Cloud-based versions of our other products: Cybozu Office, Garoon, and Mailwise are also continuing togrow thanks to the support of our customers.

This graph shows the resulting percentage that Cloud sales currently make up out of total sales. Cloud sales
currently account for 87.6% of total sales, or JPY 22.2 billion out of JPY 25.4 billion. In the past, you might have
had the image of us being a packaged software company, but now that we have come this far, I think we cansafely say that we are a Cloud company.

Today we are publicly disclosing our performance against SaaS indicators for the first time. While I have only
told you good news so far, I’m now about to share some not so great figures with you. The Annual Recurring
Revenue (ARR) growth rate, the so-called Cloud sales per month multiplied by 12, has been declining.
The worrisome trend is that the cumulative Cloud sales growth rate has been contracting, from over 20% in
the past to 17.5% last fiscal year.

This is the break down by product. This is what the ARR growth rates look like for each of the four products
Kintone, Cybozu Office, Garoon, and Mailwise.
If we break this down further, to put it very simply, it is quantity multiplied by the unit price. That unit priceis known as Average Revenue Per Account (ARPA). If you look at ARPA, Garoon comes in top place. Garoon isgroupware that can be installed on a relatively large scale, so it has a reasonable ARPA of JPY 116,700, but
Kintone continues to have a low unit price of JPY 34,100.
To put it another way, many companies have deployed Kintone, but maybe only a few departments within
the organization are using it, say only 10 people or so.
For our part, since Kintone can be used to create a very broad range of apps, we hope to encourage companies
to roll out and make use of Kintone across their entire organization so that all of their people can use it tocreate all kinds of apps enabling everyone to work transparently and autonomously, as I mentioned at the
beginning of this presentation. At this stage, the actual situation remains that often only a few departments
within a company have adopted and are leveraging Kintone. That is what we are seeing being reflected in the
Kintone ARPA.

So, I think our challenge going forward, the biggest challenge we face, is that a few very specific departments
have been digitalized so how can we expand digitalization across the entire organization. I think the key
challenge for us is getting companies to expand the use of their Kintone platforms, which have only been
deployed in a few select departments, across the entire company.
So far, we have achieved success in encouraging adoption of Kintone by departments within manyorganizations. We have had some success in achieving broader platform take up within companies, but there
is still a great deal of work to be done in driving company-wide adoption. Without this, we cannot truly saythat we have a society brimming with teamwork, and this is what we would like to focus on from now on.

We have begun that activity and are gradually improving our performance. We would like to introduce a few
of our corporate users.
First is TAIYO NIPPON SANSO. After deploying Kintone in part of their company in 2017, this gas company has
steadily expanded the number of Kintone apps it uses, and now their Kintone platform has grown to span 53
group companies with approx. 8,000 employees who are working with around 600 Kintone apps, which I thinkis one of our success stories.
This will change the way we work. What I mean by this is now information sharing infrastructure hasdeveloped to such an extent that we are hearing about how remote work has become the norm. In the past,
only a few people in the IT department could create such systems, but what we are also hearing from our user
companies is that by expanding adoption of the Kintone platform throughout their organization, various
people in various departments can now create apps, and as a result their DX push is gaining traction andprogressing rapidly.
This is an example of how companies have achieved progress with their DX programs as a result of holding inhouse Kintone dojos thereby increasing the number of their DX capable people to further drive DX within theirorganization. We are very keen to continue to increase the number of such companies.

Another example is Marubeni-Itochu Steel. This corporate group also uses Kintone as its organization-wide
information sharing platform for more than 1,500 people, across 100 group companies in Japan and overseas.
Specifically, Marubeni-Itochu Steel has seen remarkable annual reductions of approximately 800 work hours
thanks to customer management and sales negotiations management apps alone.

Moreover, use of Kintone is expanding in the public sector as well. Here are some examples.
The first is the Kitakyushu City government in Fukuoka Prefecture. This customer also initially installed Kintone
on a small scale and has now reached the point where all 8,000 staff members are using Kintone. Work thecity government had been doing previously is now being increasingly digitally transformed, effectively
reducing the workload. Moving forward, Kitakyushu City is set to reap great rewards as it aims to save
approximately JPY 2.2 billion within 18 months of deploying Kintone.
The Mishima City Board of Education in Shizuoka Prefecture has also deployed Kintone, issuing Kintone user
accounts to teachers at 21 public elementary and junior high schools in the city and sharing information acrossschools. Sharing information across schools involves a lot of communication with the school board, and thisis an example of where a customer has been able to greatly reduce man-hours by making that part of theprocess paperless.
I believe that by expanding the scope of these small-scale system deployments to more widespread adoption,
we will be able to achieve even greater results.
In order to promote this, we are supporting installation of Kintone throughout the entire government, andwe are running the All Staff Kintone Deployment Introductory Price Campaign, in which we ask municipalities
to roll-out Kintone across their entire workforce, and offer the system at a lower price in order to encourageorganization-wide deployment. Through this campaign the number of municipalities installing Kintone andthe number of municipalities deploying Kintone across their entire organization have increased significantly.
In particular, the number of cases where Kintone has been deployed across an entire government agency has
increased twelve-fold YoY, steadily creating a trend of governments that had previously only deployed Kintone
in a few departments now expanding its use significantly.

But there are still things that need to be done. We have to work on improving products and sales.
So today, I would like to introduce two developments, one is called Cybozu NEXT and the other is the Kintone
Company-wide Deployment License.

First, Cybozu NEXT. If we want people to share more information with more people, we need a system that is
capable of handling a variety of information. If you say that only a certain type of information can be used,that might be fine for just the sales department, but by being able to share a variety of information, thatmeans we can create a movement that will make the information available to more people.
One of the concrete steps in this process is the creation of the Kintone mail sharing option. The idea is to shareemails that come in on Kintone.
Kintone has never had an incoming email feature, but we are developing and preparing to release an email
sharing option by the end of this year, which will be able to receive emails, integrate with other Kintone apps,
and share incoming emails throughout the Company. This development is called Cybozu NEXT.

The other development is the Kintone Company-wide Deployment License. When you want to deploy software
across the entire organization, it’s better to have one dedicated license for the roll out. The benefits are notjust price alone, for example, the current ceiling on the number of apps you can have is limited to 1,000 apps.
If the entire company is going to use Kintone, the customer’s expectation might be that 1,000 apps will not
be enough, so we are trying to raise the maximum number of apps if a company deploys Kintone companywide to meet those expectations.
Or there might be a certain feature that you want to have when you are deploying a system company-wide,so we are also developing a dedicated plug-in for company-wide deployment of Kintone and are putting
together a Kintone Company-wide Deployment License that will bundle Kintone together with such features.
This will be available for sale this summer, so please stay tuned.

Next, I would like to talk about the expansion of the ecosystem. Kintone operates on an ecosystem-based
business model, and this is really the most fundamental part of our strategy in the long run.
When you think of this kind of ecosystem, I think what immediately comes to mind is sales partners. Of course,
we are doing our best to cultivate our network of sales partners, but in the case of Kintone, we are also trying
to cultivate a network of all different types of partner companies right now.
For example, we have consulting and development partners, as well as partners who extend the functionality
around this area and integrate with third-party SaaS services. We are also working with financial institutions
and trying to cultivate partners who can create packaged services on Kintone, which we call semi-custom
solutions.
In addition, we are creating a variety of solutions with very diverse partners, including where user arecompanies connecting with each other, offering Kintone on an OEM basis, etc.

In terms of the overall picture of our partner business, partner companies now generate 62.9% of our Cloudsales in Japan.
In addition to the 450 official partners, there are 650 registered partners (which is the category of partner
prior to a company becoming an official partner), and I believe the range of partners has also expanded
considerably.
There are now over 350 services that integrate with Kintone, and in the area of AI, which is particularly a hot
topic of late, the number of AI-related integrations has increased significantly. We have also established afund called the Kintone Teamwork Fund to encourage partners to continue to actively create AI-based Kintone
integrations in future too.
Networking among partners is also very important, and when partners work together, the synergy is evengreater. We have an event called Cy-Musubi, which connects these partners, and an event called Cloud
Garden, which also includes customers. We also actively organizing events like this to connect partners.

These are the AI services that integrate with Kintone we have just introduced. This is a short list of just someof what was exhibited at last year's Cybozu Days event.
There are also various AI integrations around Kintone. For example, there is an AI service that builds data thatcomes into Kintone and imports data into Kintone. And there are integrations that use AI to make the data in
Kintone even better. There is also a mechanism for pulling out the data contained in the system in a chatbot
like form that responds in natural language as it extracts the data. Also, some of the Kintone apps themselves
are made with the help of generative AI.
A truly diverse range of AI integrations are being created around Kintone. We also intend to make use of thesewonderful technologies around Kintone.

Next, I would like to introduce our collaboration with regional banks. We have been partnering with regionalbanks for some six years now, and it has proven to be quite successful.
In regional areas, you will find that regional banks have a large network of small and medium-sized enterprises
as their customers, and regional banks need to be able to provide these customers with ICT consulting services,
but it is difficult for bank employees to immediately start delivering ICT consulting services. However, with
Kintone, there is no coding, so if bank employees can learn how to use Kintone, if they understand thecustomer’s business they will be able to pitch good proposals to them.
The latest figures show that we have partnered with more than 20 regional banks nationwide, and 600
companies have already gone ahead and deployed Cybozu products as a result of pitches by these regionalbanks.
We need bank employees to learn ICT skills, so we have set up a community for this purpose, which is called
the Kintone Training CAMP. By creating these types of study opportunities, we are working to help bankers
acquire skills in this area.

Continuing on, here is another initiative we are working on with our partners. We have recently starteddelivering semi-custom solutions. Kintone is convenient for creating a variety of apps, but sometimes it is noteasy to create an app from scratch, so we have put together some app templates to assist with that. Even sosome people find it difficult to create something complex using only templates. That is why we are currently
focusing on semi-custom solutions, which we believe can be rolled out horizontally.
For example, Systems Nakashima's NICE Sales Story on Kintone is a service that incorporates the sales force
automation (SFA) know-how that Systems Nakashima has developed to date. By deploying NICE Sales Storyon Kintone as a semi-custom solution, customers can quickly complete an SFA system.
Also, because it is a semi-custom system, you can leverage the advantages of Kintone; if and when you wantto fix something, you can. The benefits of this package are that it’s a semi-custom solution, its midway
between a package system and one that you have had to build yourself, so you can leverage the advantagesof having a semi-customized system on Kintone.
We have now co-developed a semi-custom solution with Pasona for HR-related apps offered under the
product name Kintone HR Powered by PASONA. This is the kind of development we are working on.
We are also collaborating with various educational institutions to create opportunities for people to formallylearn Kintone. Currently, Kintone courses are being offered at 23 vocational schools and universities acrossJapan, and 900 people are studying Kintone at those institutions to assist them with entering the workforce.
I believe that having students learn about Kintone can drive widespread take up of Kintone.
Finally, another interesting development is the increasing number of user companies who are becoming
partners. These are companies who have deployed Kintone and tried to drive their own DX, and in doing so,have developed a lot of DX-capable personnel within the company, and then started thinking about how they
can take this know-how and put it to use outside the company.
For example, Happoen operates wedding halls, etc., and they have a lot of know-how that they haveaccumulated on their own, and they want to do something about progressing DX across the bridal industry ingeneral. So, to our surprise, Happoen has launched a DX business and is now also exhibiting at our events andtrying to roll out DX horizontally across the industry. We would like to actively support these kinds of user
developments.

Continuing on, this is an OEM initiative, which we are pursuing together with Ricoh. Ricoh had been selling
Kintone through Ricoh's sales network, and said that they would like to offer Kintone as their own badged
product through their network. So Ricoh have produced an OEM version, which Ricoh have made into theircommercial product, called RICOH Kintone plus (or RicoKin as we refer to it internally within Cybozu) that they
are selling through their sales network.
RICOH Kintone plus includes features not found in regular Kintone, such as standard integration with Ricoh's
multifunction devices and its own plug-ins. Ricoh's original app store is also available. This is a really great
product for Ricoh's customers, and I would be delighted if many Ricoh customers come to know about RICOH
Kintone plus.

We would like to continue to see Kintone being adopted by large companies who then roll it out enterprise
wide. In order to do so, we need to create a mechanism for horizontal development of good customer use
cases, that is why we are now running a user group for large scale users, called Kintone Enterprise Circle. We
are managing the Kintone Enterprise Circle so that companies who have developed sophisticated use cases
can join the Kintone Enterprise Circle, share their know-how, thereby promoting smooth deployment of
Kintone in large companies.
Along with this, we have formulated the DX Savvy People Development Guidelines in an effort to compile thisknow-how into a set of guidelines. We have put together these guidelines on how to ramp up the number ofpeople in large companies with the DX skills to create apps and improve systems, rather than just having a
few people able to do so. (Note: these Japanese-language guidelines were co-written together with en JapanInc.)
The guidelines (Japanese only) are available for free download here; we hope you will find them useful.

I would like to continue by discussing our global expansion. Globally, we are managing to increase sales ineach of our markets now, although the situation is quite difficult due to changes in strategy and other factors.
Here are the specifics. In the US, Cybozu has been developing a customer base directly until now. However,since we have formed a tie-up with Ricoh, we have made a major shift in our strategy, using Ricoh's US sales
network to sell the US version of RICOH Kintone plus, and those activities have now begun. It may yet takesome time to see results, but if things go well, I anticipate it will lead to the kind of significant growth that wehave not been able to achieve thus far.
In Southeast Asia, we are working on a partnership with FUJIFILM Business Innovation. We don't have muchof a network in Asia either, so we are working on a partnership with FUJIFILM Business Innovation to sell more
Kintone through their sales network.
In this way, we are looking to expand our business worldwide, with an emphasis on a partner business model
overseas as well.
Additionally, a Spanish-language version of Kintone is now available. Supporting Spanish, allows us to start
selling Kintone in Latin America too, and we will also commence our sales drive in the Latin America market
with RICOH Kintone plus.

I would like to introduce several other initiatives we are engaged in.
First is our Cloud infrastructure. What we often get asked about in relation to our roll out of Cloud services is
if we are running our services on top of powerful global infrastructure companies such as Amazon Web
Services or Microsoft Azure, then doesn’t that mean the more Cybozu services sell, the more money thosecompanies make?
Cybozu has a very salient feature: all Cybozu Cloud services for Japan are developed and operated in-house.
So, we have the distinction of renting our own data centers, purchasing our own servers, and building andproviding Cloud services by ourselves. In that sense Cybozu is characterized by being a fully made-in Japan
Cloud service.
We have been doing our best to do it ourselves, and it is time to innovate with new technology, so we are
migrating to a new Cloud platform that we have developed in-house, which we call NECO.
By moving to this new Cloud infrastructure built on the latest technology, we can greatly increase reliability
again. For example, we are moving to a very reliable infrastructure that is resilient to failures, can be recovered
quickly in the event of a failure, easily handles scalability, lowers our operating costs, and is enhanced in termsof security.
We are actually in the process of migration now, and this year is the crucial stage of that process, which weare targeting to complete in around 2025 or 2026. So I wanted to share these kinds of behind-the-scenes
activities we are engaged in with you as well.

These are the security assessments performed by external organizations. In order, from the bottom up, we
have these fundamental ISMS certifications and continue to keep them up to date.
In addition, there is an evaluation system for Japanese government information systems called ISMAP, whichmakes it easier to tender for Japanese government procurement projects, and we are certified and registeredunder this system as well.
In addition, we have been working on SOC2, which is a type of global security certification. We have also beenworking to comply with global security standards such as SOC2 in order to expand the adoption of Kintone
globally in future.

Continuing on, I would also like to introduce some evaluations of our performance by external organizations.
This Partner Satisfaction Survey is from the March 7, 2024 issue of Nikkei Computer magazine, so it is the mostrecent. We took out first place in two categories of this Partner Satisfaction Survey: one in the Cloud
Information Services category and the second in the Software/Services that Improve Business Efficiency andSupport Insourcing category.
I think that this represents the high level of satisfaction our partners have with our services.
In addition, the local government IT systems satisfaction level is also high, meaning we are also providing thethriving local government IT market with services that enjoy a high degree of satisfaction.
In the call center space we have also received the highest possible rating of three stars, despite this rating not
being easy to obtain.
As our customer numbers continue to increase, the call centers have also been receiving more inquiries, so inorder to further enhance our call center system, we established a specialized company called Cybozu
Connect.C, in June last year, to provide logistical support for our call centers. Cybozu Connect.C, aims toensure even higher quality call center operations.
Additionally, Kintone has been positioned in Gartner's Magic Quadrant for Enterprise Low-Code Application
Platforms for seven consecutive years.

Changing the subject, I would now like to turn to human resources and organizational matters. As shown in
the graph, thanks to the growth of our business, the number of employees has continued to grow while thestaff turnover rate has been maintained at under 5%. We have been able to increase the number of employees
on a steady basis.
Cybozu is taking on a variety of challenges in the way the organization is run, including workstyle reform, andwe are publicly sharing our organizational know-how in the Cybozu on-demand media, Behind the Scenes at
Cybozu (Japanese only).
In addition, we have launched this new website to disseminate information through human resource data,
including the newly released Human Capital Index. This site also provides information that has not been madepublic until now, such as trends in the percentage of women in management positions at Cybozu, thepercentage of annual leave taken, the gender wage gap, and so on.
We manage our company with an emphasis on diverse individuality, and we would like to make ourmanagement of the company even stronger based on this kind of people-related information, so please takea look at this information we are disclosing and let us know your feedback.

I will now turn to corporate governance. Specifically, regarding the directors on the board. We are making
another major change in the system here.
We have been sharing information internally, so my approach is that we are all directors. We have been
operating corporate governance under this system with the idea that everyone should monitor and supervise
each other as if they were directors, but with such a large number of people, it has become difficult to haveeveryone on the board.
Specifically, for example, when an employee commits misconduct, it is not appropriate to share the details
throughout the Company, and so a limited number of people share the information, discuss the matter, anddecide how to handle the situation. That sort of situation makes it difficult for all of us to be directors.
So, for this reason, we are trying to change this role of director, so that directors will be appropriately involvedin these issues that can’t be shared with everyone and follow the proper process to check if anything unfair isbeing done by any one manager, and so directors will be responsible for asking questions on any new mattersthat are classified as private (not made public within the company). This is the kind of role we would like theboard members to take on, and we are now selecting people accordingly.
We are planning to add Mika Kumahira as an outside director, and in terms of internal directors we also havenew, young members running for the board of directors. We are trying to create this kind of board structureso that people can be involved in complex internal issues from a young age to raise their perspectives.

Next is the office situation. As the number of employees has increased, we have gradually expanded ouroffices. Looking at offices within Japan first, we recently opened a lovely new office in Hiroshima, near
Hiroshima station.
In February of this year, we renovated our Nagoya office and made it much larger. We are now in the newly
built Chunichi Building and have created a new office where we can expand our ecosystem radiating outward
from Nagoya.
Our overseas offices are gradually being expanded and upgraded as well. For an example, we now have a
Bangkok office which is relatively close by, and then there is our office in Kuala Lumpur in Malaysia. We are
steadily also expanding our bases for global sales.

Continuing on, since there was a natural disaster in Japan on New Year's Day, I would like to talk about natural
disasters. This kind of information sharing system is also very effective in times of disaster. Since the Great
East Japan Earthquake in 2011, our members have gone to various major disaster areas and have cooperated
with the people on the ground and promoted the use of Kintone in disaster management.
We have accumulated a lot of know-how. We put a Kintone user license system in place that can be used
immediately, formed an in-house support team called the Disaster Support Team to provide immediate
logistical support, and gathered partners to work with us in areas where we cannot do everything on our own.
In this way, we have worked hard to ensure a smooth response in the event of a disaster.
Let's talk about the earthquake that struck the Noto Peninsula on New Year's Day. The earthquake occurred
on January 1, and the Cabinet Office approached Cybozu directly shortly thereafter. They asked if we could
help them, and they told us that the situation in the area was serious and that the local government was
unfortunately not functioning as it had been damaged in the disaster. We partnered with the Self-Defense
Forces to create a system that allowed the Self-Defense Forces to visit evacuation centers in the Okunoto area
and input the information obtained at the evacuation centers into Kintone from smartphones or tablets, sothat the entire situation could be grasped by central command.
This system was created for the purpose of collecting information from many shelters specifically on what
was lacking, and how many of one thing was needed at one evacuation shelter and what was lacking at
another shelter and how many of that thing was needed, to enable efficient and direct support to be provided
from a central location. Also, as volunteers have been joining the program since late January, we have now
created a Kintone-based system for registering and processing volunteers from all over Japan. We also provide
this Kintone-based system for team management of volunteers that makes it possible to register volunteers
and let them know where the organization would like them to go to and what work they would like them todo.
When a disaster like this strikes and an IT system needs to be set up very quickly, and it needs to able to berebuilt and adapted over-and-over to suit the ever-changing situation, that is exactly where something like
Kintone can play a hugely helpful role. We want to put our business know-how to best use for this kind ofsocial infrastructure. One thing I would like to add is that we have been involved in volunteer centeroperations in the event of a disaster, so we have developed a model for this, which we have put into writing.
This is a collection of know-how on how to successfully operate a volunteer center in the event of a disaster,so please take a look at it.

I would like to conclude by talking once again about our future prospects. First, we are working under theslogan 25BT for the three years, 2023, 2024, and 2025, because we are investing in medium- to long-term
growth. We will do our best to achieve strong growth once again from 2025 and beyond.

And the biggest challenge is to drive the spread of our products that are being used in a particular department
be more horizontally rolled out throughout the entire organization. While our products are being used in quite
a few divisions within organizations, I think the biggest development for 2025 and beyond will be gettingorganizations to make our system their organization-wide DX infrastructure and information-sharing platform.
We will work hard toward this.

This is the forecast for the current fiscal year. We are forecasting sales of over JPY 28 billion and a profit ofover JPY 3 billion.
That is all I have to say about the financial results and the business. Thank you very much for your attention.

Questions & Answers

MC: We will now move on to the question-and-answer session.
Attendee [Q]: Thank you for your explanation. Please let me ask you about price revisions. Salesforce revised
its prices last year, and I believe we have been told that Microsoft is also planning a 20% price increase starting
this April. I think that revising prices would be effective in three respects at Cybozu as well, but I don't think
you are working on it at present, so I would like to ask why you are not working on it.
As for the specific benefits that can be obtained, the first is that I think your price is low compared to similar
services, so I believe convincing customers will be easy. The second is setting the right price will also makethings such as functional enhancements and higher wages for employees sustainable. The third is that byincreasing profit levels, given we are now entering the AI era, I believe you could investment more strongly,
such as in AI servers, so I think there would be significant advantages to following the lead of other companies
and revising your prices. Please give us your views.
MC: Thank you for your question. The General Manager of the Business Strategy Office will respond.
Kuriyama [A]: We have done a number of simulations of price revisions, and we have the simulations showing
at a certain revised price with a certain scenario, this is what would happen.
In conclusion, the reason we decided not to do this at this time is because we are aware that there are indeed
many other companies, including American companies, that are simply raising prices, but what we want to do
is come up with a new type of subscription plan. We are currently going through the process of creating a
subscription plan that increases the value we provide to our customers and are considering the new price to
put on it. Simply raising prices is not in the best interest of our customers so we are foregoing doing that.
Attendee [Q]: Regarding the point you just made, that you are preparing a new rate plan, if you don't mind
me asking, can you please elaborate on what kind of subscription plan you have in mind?
Kuriyama [A]: We are not currently disclosing any part of this outside the company. However, I would be
happy to tell you about it when we are ready to disclose the information. It is now right in the midst of planning.
Attendee [M]: Thank you.
MC: Thank you for your question. We will then move on to the questions in the Zoom webinar Q&A box. There
are two questions. I will read each out.
Attendee [Q]: Could you please elaborate on the factors behind the projected decrease in profits for the year
ending December 31, 2025? What are the most significant factors? Also, in which quarter of the current fiscal
year should we expect those factors to occur?
MC: First, we will answer your first question. The General Manager of the Corporate Affairs Division will
respond.
Hayashi [A]: This is Hayashi from the Corporate Affairs Division. First, I think the question is about the year
ending December 31, 2024, not 2025, so I will answer with that in mind. As for the most significant factors,
there are two major factors, so let me answer regarding both of them. The first factor is we have continued
to aggressively hire personnel over the past three years, and the increase in personnel costs due to this is oneof the major factors. The second factor, as Mr. Aono explained earlier in his financial results briefing andbusiness overview, we have made the decision to spend on another round of advertising this fiscal year, so
these two factors are major factors.
Attendee [Q]: What is the impact on the P&L this fiscal year and into the next in relation to the transition to
the new Cloud infrastructure in around 2025?
Hayashi [A]: As I think Mr. Aono explained earlier, we are now preparing for the transition to the new
infrastructure, which is called NECO. We are now anticipating a large purchase of equipment for this purpose,probably in April or May, and the P&L will subsequently be affected in the form of new depreciation expenses
being incurred.
Attendee [Q]: I would like to ask you about your overseas operations, such as in the US. Based on the
difference between the consolidated results of the entire company, including the overseas operations, andthe non-consolidated domestic results, we estimate that the overseas operations have accumulated a deficitof about JPY 8 billion over the past seven years. In contrast, sales for the previous fiscal year were only JPY
800 million, so frankly speaking, I think we can say that the JPY 8 billion investment was a failure.
I believe that you are planning another JPY 1 billion loss this fiscal year, and I would like you to explain how
these losses will contribute to increasing corporate value. Also, when do you expect the US business to turn aprofit?
Aono [A]: Regarding the JPY 8 billion investment for a JPY 800 million profit, if you ask me if it was a failure,then I will say it was a failure. However, when I think about how big of a return we will get if this business also
succeeds, for example, if we are to become one of the leaders in Cloud services in the US, and how much
Cybozu’s corporate value would increase then, I don’t think I can say that on the whole it’s been a failure, we
can’t win if we don’t try, right?
If it’s a small return, I think it’s fine to withdraw from it altogether, but I think this is like winning the lottery,which is a big deal if you win. So, in my opinion, we must do what we can to continue to challenge ourselves
appropriately. Therefore, I want to continue to take on this challenge, even though it is about JPY 1 billion in
the red every year.
If, on the other hand, we start to get results that really look like the business is taking off, then that could
exceed JPY 1 billion. In which case, we will raise funds more boldly and accelerate full throttle. As you may
know, American Cloud computing companies are increasing their sales while incurring losses of JPY 10 billion
to JPY 20 billion every year, and this is how they do business. I would like you to understand that it’s possible
we may also shift to that kind of business if things go well.
Our company vision is to build a society brimming with teamwork, and we will continue to take on challenges
with a global perspective.
Attendee [Q]: From what you just said, I got the impression that the deficit of about JPY 1 billion will continue
for the next few years. I am aware that by collaborating with Ricoh, you are now able to do marketing andother activities using the resources of a large company rather than your own resources, so I was wondering if
you could also reduce your deficit. Why do you need to have a deficit of about JPY 1 billion?
Company Representative [A]: There are basically two types of costs: labor and advertising. With regard tolabor costs, I mean Sales staff and SEs, and then there are other staff, but it’s mainly Sales staff and SEs. Mostof these personnel are now working on assisting and supporting the collaboration with Ricoh; we have a goodnumber of people assisting with the US plus South America. When the partner business is up and running, thenumber of employees will be small relative to the size of the business, but during start-up, the partner
business needs to have more people than the size of the business.

Regarding what we are spending our advertising budget on, there are two things. One is advertising expenses
for direct sales, as we would like to continue direct sales until the partner business is fully up-and-running.
The other is the cost of improving the value of Kintone, or branding, which is what we are spending money on
now, including personnel and advertising costs.
In contrast, sales are small, resulting in a deficit of JPY 1 billion. However, we recognize that the expenses
themselves are not expenses that will increase with an increase in sales, so if sales increase, this deficit will
inevitably shrink.
However, as Mr. Aono mentioned earlier, we believe that we will need to spend quite a lot of money, not of
the current proportions, when we really go all out to win, so we consider that will be a separate cost when
we go all out to win, separate from the current fixed costs, and also a separate line item. If we continue as is,
I think the volume of expenses will shrink as sales grow, since expenses will not increase simultaneously.
Attendee [Q]: I would like to ask you to explain when you expect to turn a profit.
Aono [A]: To answer your question from my point of view, we are not on track to turn a profit, nor have weeven set a timetable for turning a profit. If we had started aiming to turn a profit, we would have given up on
the US market. In order to win in the US, we are aiming for success on a completely different scale than inJapan, so we do not have a clear vision for becoming profitable in the short or medium term that we can see
right now.
Attendee [Q]: Is it correct to understand it this way, that the deficit will only shrink as sales grow, that you
are not oriented toward turning a profit, but rather toward increasing sales?
Aono [A]: You are right. Increasing the top line is the challenge in the US.
Attendee [M]: Thank you for your explanation.
Attendee [Q]: Regarding the percentage of sales generated by partners, in 2022 the figure was 61.6%, whilein 2023 it was 62.9%. This could be seen as sluggish or it could be seen as growing steadily. How does Cybozu
view these figures? What are your plans for expansion from here?
MC: This will be answered by the General Manager of the Sales Division.
Tamada [A]: I am Tamada from the Sales Division. As you have just mentioned, I think the number is relatively
close to that of the previous financial year. As shown in the graph in the financial results materials, direct sales
are growing in direct proportion, while indirect sales are growing quadratically in some areas. We do not havecontrol over the figures achieved in this part of the business, but I think that the partner business will
inevitably scale up, so I think it is possible that this percentage will increase.
At the moment we are not controlling this area of business and so its natural growth. However, we estimatethat the indirect sales business expansion phase will be fast.
Attendee [Q]: Let me ask in relation to the earlier question. Which quarter of this this current financial year
will advertising expenditure tend to congregate in? This is a question regarding advertising expenses.
Aono [M]: I think you are asking if they will be unevenly distributed.
Kuriyama [A]: I am also the General Manager of the Marketing Division, so I will answer. The greatest amountof expenses will probably be recorded in Q4. I would like to spend evenly this year, however, we will hold a
lot of events in Q4, so I think they will be greatest in Q4.

Attendee [Q]: I would like to ask about AI-related investment. In the previous fiscal year, you spent about JPY
900 million on research and development and JPY 4.3 billion on advertising. This makes me feel that you are
underinvesting a bit in AI-related projects. Do you have any intention of enhancing development of AI
functionality, for example by providing or adding AI functionality to Kintone itself, rather than advertising?
MC: Thank you for your question. This will be answered by the General Manager of the Development Division.
Sato [A]: To answer your question just now about AI, as we presented a little about at last year's Cybozu Days,
we are currently at the research and development stage within the Company. Naturally, how the data storedin Kintone can be used for AI is an area we would like to come up with moving forward.
In terms of the amount of investment, I think that in many cases, the cost of building servers or training themodel is probably the most significant part of the investment in AI. At the moment, we are not investing muchin building the model itself, but rather mainly in how to utilize AI, so the amount of money spent is not thatlarge.
In terms of what will happen in future, we will continue our research and development as we keep an eye on
the emerging trends, and we hope to be able to announce products that incorporate such features.
MC: Thank you for your question. We will now move on to questions from our YouTube Live viewers. I will
now read them out in order.
Attendee [Q]: I would like to ask a question about the sales forecast for the current fiscal year. You are
forecasting a 13% increase in sales over the previous year. If you stopped spending billions of yen on
advertising, what would the projected growth rate be? My concern is whether it’s necessary to spend so muchon advertising for this level of increase in revenue.
Kuriyama [A]: If you ask me if it is necessary in the short-term, I don't think that if we stop spending this year,
the growth rate for this year will suddenly fall. Looking at the breakdown of advertising expenses, there areshort-term expenses, medium- to long-term expenses to raise Kintone brand awareness and increase
recognition, overseas investments, and expenses to improve the branding of Cybozu, not Kintone, and various
other expenses. It’s a mix of various different expenses.
I understand that your question is about the short-term part of this. So, in the short-term sales will notsuddenly drop this year because we stopped investing in advertising this year. However, and this is where themedium- to long-term part comes in, it will be effective over the medium to long term, so we continue toinvest in this area because we believe it is necessary.
Attendee [Q]: It seems that foreign investors are also starting to buy Japanese stocks. How is your company
doing in terms of the number of one-on-ones and small meetings?
Hayashi [A]: I would like to answer about our holding one-on-ones and small meetings. Until last year, we
held these on a very limited basis, with Mr. Aono handling these. This year we would like to hold more ofthese than last year, with me handling these. In fact, we have received several inquiries.
However, if we are going to agree to hold such meetings, we would like to make sure that other institutional
investors and shareholders understand the situation. Therefore, we still intend to have a policy whereby wewill agree to interviews with those people who agree, if possible, for the content of the interview to be madepublic.
Attendee [Q]: I’m a shareholder. There is no other stock in my holdings that I do not understand the point of
it being listed on the stock exchange as much as your company’s stock. Once again, what is the point of itbeing listed? Also, do you have any plans to strengthen the IR aspect of your management of the company
with respect to being conscious of the stock price and the cost of capital?
Hayashi [A]: First of all, in terms of being listed on the stock exchange, we think there is tremendous value inbringing together shareholders who understand Cybozu's business and vision through the broader market.
We also believe that being listed is of great value in terms of business credibility and branding in terms ofrecruitment.
In relation to stock price and cost of capital conscious management, as we have said previously, Cybozu
believes that sustainable business growth is the way to maximize returns for shareholders. Although we dotabulate the figures re cost-of-capital indicators such as WACC and ROIC, we are not currently making businessdecisions that place undue emphasis on them.
On the other hand, we are aware that the Tokyo Stock Exchange (TSE) and others have requested thatcompanies focus on such matters, or should I say focus on IR, and we will consider this matter, including how
to disclose information in the future.
Attendee [Q]: I would appreciate it if you could tell me how you work with, and what the relationship is with,the company Toyokumo.
Tamada [A]: Our relationship with Toyokumo is that we are collaborating with them as partners in thecurrently offered integration services. We have many opportunities to work together with them on many
projects, and we will continue to strengthen that in terms of product integrations.
I understand that a company called Toyokumo Cloud Connect has been formed and that it handles large-scale
projects. We will continue to exchange information on this issue, and since the other party is planning toconduct business that will allow customers to use our products with greater peace-of-mind, we will provide
them with the necessary information to continue to improve our cooperative relationship.
Attendee [Q]: Is DreamArts a competitor in the no-code tool space? DreamArts apparently has a large numberof high unit-price clients, which was written in their disclosure document.
Tamada [A]: As you mentioned, there are cases in which we compete with DreamArts, so I would say thatthey are a competitor. With some customers we will be in competition and with others we will not, so I think
this is a case-by-case situation here, but as you mentioned, there may be cases where we compete for large
accounts, etc.
Attendee [Q]: It seems that not much progress has been made since a year ago regarding your tie-up with
Ricoh, etc. Will you continue to work in conjunction with large companies in the future? Are you considering
different policies and strategies, such as in-house initiatives or M&As?
Kuriyama [A]: I am in charge of that tie-up, and I will answer. We have made a lot of progress since a year ago,
and in terms of our efforts in Japan, as mentioned earlier, we worked with them on over 1,000 companies in
one year. We are also planning a series of overseas releases, the release has already occurred in the US, andare preparing for releases in South America and Asia.
We have not seen results yet, so we can only explain about the process, but we have made progress withstudy sessions, etc., and have increased the number of people who can pitch Kintone in various locations, etc.
My perception is that we may not be able to say that we have made progress until we have succeeded inincreasing sales in the future, but in terms of the process, we have made a lot of progress in this collaboration
over the past year. We have already seen results in Japan, so we would like to hurry up and expand this toother countries.

Attendee [Q]: What do you perceive as the problem as to why services are not expanding overseas as
expected?
Kuriyama [A]: The situation is quite difficult compared to Japan. In terms of the situation in the US the year
before last, there were times in a good month when, working in cooperation with our team members in theUS, we were able to find a way to get more than 30 customers to buy Kintone in one month. While analyzing
those deals with the US team, we also recognized that Kintone itself is not uncompetitive as a product in the
US market, and that Kintone can adequately compete.
However, the way we won those 30 deals was quite expensive, making it difficult to continue with that method,
and we had to think of a different approach, and it is in this context that we are collaborating with Ricoh.
However, the lack of know-how and insufficient approach to generating new deals is where we are fighting
the toughest battle right now. When we actually get to the phase where we have a potential deal and pitch
to the customer, the closing rate is quite high, and this is what we have found from our past statistics.
The challenge now is not in closing deals, but in the step before that, in generating potential deals. We areconfident that we can win with Kintone if we can prepare various measures this year and win as many deals
as possible. So the answer to your question is that finding potential deals is the challenge.
Attendee [Q]: You have tried many things in terms of governance, but can you tell us if young employees canadequately serve as board directors and how the people around them provide support?
Aono [A]: We will first combine young people and experienced people. To avoid the young people becoming
isolated, we intend to include veteran employees as well as outside directors on the board to provide support.
In addition to that, we would also like to have back-up support from the Corporate Affairs Division and the
Human Resources Division, and we will definitely support the younger directors so that they can learn.
Attendee [Q]: You are aiming to spread information sharing not just within divisions but throughout the entire
organization, what other measures are you considering besides a company-wide deployment license? Whatsort of expanded take up are you envisaging?
Tamada [A]: Currently in many cases our products are deployed within a department and so are now working
to create a dedicated organization to approach customers in such cases. We have such an organization within
our sales function, and there is also a team called Customer Success, which looks after existing customers.
So, we would like to increase the number of such organizations engaged in these efforts, and at the sametime, we are engaged in providing a variety of information to organizations that are working on expanding
take up on a company-wide scale, and activities designed to broaden deployment, which we hope will lead tocompany-wide adoption of our platform.
Attendee [Q]: Do you have any plans to expand into India?
Kuriyama [A]: No plans at this time. If there was an interesting deal on the cards, we may consider it, but at
this point we do not have any plans.
Attendee [Q]: If you want people to look at the stock price and corporate value improving over the long term,
and if you want people who will take a long-term view to become shareholders, that doesn’t stack up unless
you issue a medium-term management plan, so do you have any plans to do so?
Aono [A]: There seems to be some misunderstanding, so I would like to talk about that while explaining.
Rather than wanting people who will take a long-term view to become shareholders, by far the highest priority
is that we want people who share our company vision to become shareholders.

Our primary desire is build a society brimming with teamwork, and we want people who hope to see moreteams like this in the world to become shareholders. I believe that our activities will be further invigorated if
these types of people become shareholders, so that is the most important point.
Secondly, our policy is focused on paying dividends rather than on the share price. While it is difficult for us
to control the share price, we can increase dividends through our business operations, so I would like to talkabout dividends rather than share price as one indicator of financial return.
I was not able to show you this today, but we have so far managed to keep increasing our dividends, ourdividends continue to grow each year. I think that this is unusual amongst our peer companies in Japan. That
is what we would like people to look at.
In this context, whether it is a short-term or medium-term relationship, the first thing is to have a relationshipwith people who share our company vision and who would like to receive a financial return in the form of
dividends and want us to increase dividends more. I would also like to receive that kind of feedback.
Also, in this context, on the subject of a medium-term management plan, although we do not refer to it as amanagement plan within the Company, we are operating the business with a medium-term outlook. I willtake that on board as a future task to work out how we provide information in this area. So, we would verymuch like to ensure that we can communicate with all of you, including on the medium- to long-term outlook.
MC: Thank you for your question. The next question will be the last one.
Attendee [Q]: I would like the financial results briefing materials to be released at the same time as theearnings announcement and the summary of the financial results, is this not possible?
Hayashi [A]: Regarding the question of whether we can release the materials at the same time, we wanted toprovide materials for today's financial results briefing that contain the latest possible information, so we are
not currently considering releasing them at the same time. On the other hand, we can bring forward releaseof the SaaS indicators figures that we disclosed today, so we would like to consider enhancing the information
we disclose in the summary of the financial results in the future.
MC: Thank you very much. This concludes the question-and-answer session.
This also concludes Cybozu’s financial results briefing for the fiscal year ended December 2023. Thank youvery much for joining us today.
[END]______________
Document Notes
1.
2.

Portions of the document where the audio is unclear are marked with [Inaudible].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides
an answer from the Company, or [M] neither asks nor answers a question.