Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Cybozu, Inc.
Business Overview and Financial Results Briefing
for the Fiscal Year Ended December 2023
Tuesday, Feb. 27, 2024

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Company Overview
Cybozu, Inc.
Business Description

Develop, sell, and operate groupware platforms/Methods Consulting
Business

Representative
Director andPresident

Yoshihisa Aono

Established

August 1997

Head Office

Tokyo Nihombashi Tower, 2-7-1 Nihombashi, Chuo-ku, Tokyo

Office locations

Japan: Tokyo, Osaka, Matsuyama, Nagoya, Fukuoka, Sendai, Sapporo,
Hiroshima, Yokohama, Omiya, Shanghai, Shenzhen, Taipei, Ho Chi Minh,San Francisco, Sydney, Bangkok, Kuala Lumpur, etc.

Capital StockJPY 613 million

Listed Exchange
Employee HeadcountTokyo Stock Exchange, Prime Section (Securities Code 4776)
Consolidated: 1,276 employees; Non-consolidated: 1,003 employees* As at end of December 2023
* Open-ended contract (permanent) employees only (executives not included)2

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Company Vision
Our Reason for
Existing

Purpose
CultureCulture* Will be submitted to the 27th Annual Shareholders Meeting on March 30, 2024

Build a society brimming with teamwork
1. Share a common vision
Create a common vision that resonates with all members and guides theiractions

2. Embrace individuality
Embrace individual differences and tap into eachother’s strengths

3. Be transparent
Build a foundation for open trust

4. Be self-driven &autonomous (provisionaltranslation)
Eachpersonshouldtaketheinitiativeasanindividualandbeinvolvedinbuildingabetterteam

5. Engage in dialog and discussion(provisional translation)
Strive to understand the basis for each other's thinking, discuss, and reach a decision3

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Information Sharing and Teamwork
Organization where
information is siloed
Data, information, and communication is separated byteam, making it impossible to share information
across the organization.

Information becomes more siloed, capabilities of thepeople on the frontline can’t be leveraged to innovate

Organization where informationis shared openly on one platform
Information is shared openly on one platform.
The people on the frontline are taking the initiative anddriving business improvements.

Information sharing boosts teamwork and helps
the entire organization to evolve4

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Cybozu’s Cloud Services
Groupware

As at end of December 2023

Business app development platform

Groupware for SMEs
Platform for implementing no-code/lowcode business solutions

Installed customer base:78,600 companies
Cloud service customers
YoY

Cloud service customers /＋6.9%

24,700 companies

YoY

32,800 companies ＋19.3%

Mail-sharing softwareGroupware for Eps(mid-sized and large enterprises)

Installed customer base:Installed customer base:7,400 companies
Cloud service customers

Centralized management of team email
correspondence

14,400 companies
YoY＋13.0%

2,600 companies

Cloud service customers /8,300 companies

YoY＋10.7%* The above are the numbers of customer companies in Japan.
* Kintone is exclusively sold as a Cloud service.
* Installed customer base for Cybozu Office, Garoon, and Mailwise: The total number of domestic companies who have deployed product on-premises or in the cloud.

5Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Achieving an Insourced Digital Transformation (DX)with No-code and the Power of a Supportive Ecosystem

Plug-ins

No-codeSuccessfully
insourced DX

Integration with thirdparty services

Reskilling
Companion-runner partners

Education andinsourcing support

Deployment
consultation

User communities
Know-how sharing

User interaction

6

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Company-wide Slogan for 2023-2025

25BT“2025 and go Beyond with Trust”
We will focus on reaching our next big milestone in 2025,
and work on long-term initiatives that look to the future
beyond 2025 while placing great value on trust.
7

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

FY2023 Financial Results

8

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Consolidated Sales and Operating Profit
30,000
Sales(Million JPY)

25,000Operating
4,000profit(Million JPY)

Fiscal year ended December 31, 2023

25,432 million +15.2%
Consolidated operating income: JPY 3,394 million +454.9%

Consolidated sales: JPY

20,000

3,500

YoY

3,000
YoY

2,500
2,000

15,00010,0005,000

Non-consolidated sales
Group sales
Consolidated operating profit

1,500
1,000
500
0

- 500
-500
0

- 1,000-1,0009Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Consolidated Financial Results
Consolidated Financials(Unit: Million JPY)

FY2022(Actuals)

FY2023(Actuals)

FY2024(Projection)

22,06725,432

28,730Operating profit

611

3,394

3,097

Ordinary profit

987

3,579

3,142

Current net profit

66

2,488

2,028

Net profit per share

JPY 1.45

JPY 52.29

JPY 42.57

Dividend per share

JPY 13.00

JPY 14.00

JPY 15.00

Sales

10

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Detailed Consolidated Financial Results
Consolidated
PL

FY2022(Actuals)

FY2023(Actuals)(Unit: Million JPY)

Sales

22,06725,432

Cost of sales

1,951

2,364

Labor costs

7,854

8,828

Advertisingexpenses

6,452

4,313

R&D expenses

270

889

Other

4,927

5,643

Operating profit

611

3,394

Consolidated sales+ JPY 3,364 million YoY＋15.2%
YoY＋228.4%
YoY

Stimulating long-term
R&D activities to create
new businesses in global fields

Consolidated operating＋454.9%profitYoY+ JPY 2,782 million YoY
11

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Results of Advertising Investment
Shift from the Increasing Product Awareness phase to the Deepening Product Understanding phase

Trends in Advertising Expenses, Kintone Awareness, and Percentage of Sales that
Advertising Expenses Account for
Thanks to the stepped up advertising to increaseawareness focusing on Kintone in the past three years,
Kintone awareness* has increased by 12 pts since 2020.

Advertising expenses(consolidated)
Advertisingexpenses(Million JPY)

Kintone awareness(consolidated)
Advertising
Expenses as a Percentage of Sales
Kintoneawareness

8,000

Since 2023, we have stepped up our focus on
deepening product understanding in parallel with ourcontinued efforts to increase Kintone awareness.

The tagline for the Kintone commercial is now
Build business apps without coding.

29%
31%

27%
6,000

17%

19%
4,000

17%

20%

28%

22%

10%

2,000
2,673

4,907

6,452

4,313

0

We plan to invest in advertising to instill widespread
understanding of product value and increase sales in
2024.

30%

0%
2020

2021
Stepped up advertising
to increase awareness

2022

2023
Next phase+ Deepening productunderstanding* Kintone awareness: Based on the awareness survey conducted by Cybozu

12Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Financials
Consolidated BS(Unit: Million JPY)

FY2022(Actuals)

FY202(Actuals)

YoY

15,907

19,248

3,340

5,124

6,492

1,367

11,277

7,995-3,282

4,680

ー-4,680

4,630

11,253

6,623- Treasury stock-1,800-1,346454

Shareholder equity
ratio

29.1%

58.5%

29.4%

Net assets per share

100.93236.33135.40Assets- Cash & deposits

Liabilities- Borrowings

Net assets

Borrowings repaid infull from proceeds ofdisposal of treasury
stock in January 2023

13

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Business Details andFuture Challenges

14

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Consolidated Sales by ProductKintone Sales Break the JPY 13 Billion Mark(Million JPY)

14,00012,00010,0008,000
6,000

Kintone consolidated sales in 2023

JPY 13,012 million+24.9% YoY

4,000
2,000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
* Kintone is exclusively sold as a Cloud service.
15

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Our Users
As at end of December 2023

User companies

Customer breakdown by sector

32,800companies
Annual average no. ofcompanies deploying Kintone

650

companies/month

Accommodation,
restaurant
Publicsector
Education, learning
support services

Kintone deployment by companies

listed in TSE Prime section

Installed at 1in every 3 companies

Other (incl.
unanswered)

Wholesale,retailDepartments stakeholders driving
Kintone deployment belong to
93% of users in charge of
deploying Kintone are NOTfrom the IT department

Manufacturing

Services

Daily life-services,
entertainment
Financial services,
insurance

Transportation,
postal services
Healthcare,welfareReal estate, goods leasing*The above figures are for Cloud service users only.

Academic research, professional andtechnical services

Non-IT Dept.

IT Dept.

16

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Consolidated Sales by Product(Million JPY)

■CloudCloud■On-premises, etc.

6,000
FY20235,000

JPY 5,312 million

4,000

＋4.4%
YoY
(Million JPY)

3,000

■Cloud■On-premises, etc.

800

2,000
1,000

600

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
(Million JPY)

■Cloud■On-premises, etc.

6,000
5,000

FY20234,000

JPY 5,006 million

＋9.7%
YoY

FY2023

JPY 787 million＋16.0%
YoY

400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

3,000
2,000
1,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

17

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Consolidated Sales (Cloud/On-premises)
Solid Growth in Cloud Sales
30,000■Cloud ■On-premises, etc.

(Million JPY)
25,00020,0002023 consolidated Cloud sales:

JPY

22,283 million+19.5% YoY

15,000

Cloud sales as a percentage of total sales:
10,000

87.6%

5,000

0

* Figures are non-consolidated until 2010 and consolidated from 2011. * Six month-fiscal period in 1999, 11-month fiscal period in 2012.

18

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

1st Ever Disclosure of SaaS Stats

SaaS Management Indicators
ARR (1)(Million JPY)

ARR (2)Growth Rate(YoY)

As at end of December 2023

MRR (3)(Million JPY)

Subscription sales
percentage (4)Consolidated
sales

24,018＋17.5%

2,001

88.3%

Non-consolidated
sales

22,882＋17.4%

1,906

88.7%

ARR and ARR Growth Rate (Consolidated)(Million JPY)

ARR growth rate(consolidated)

ARR (consolidated)

30,00025,000+17.5%+31.1%+25.8% +27.0%

20,000+22.9%

30.0%+24.3%

15,00020.0%

10,000

5,000

40.0%

8,371

10,53013,377

16,62920,44024,01810.0%

0While Cloud consolidated sales hit arecord high, AAR growth rate is trending
downward*This data is for Cloud services only
(1) ARR: 12 months of MRR (Annual Recurring Revenue)(2) ARR Growth Rate: YoY growth rate of ARR(3) MRR: Monthly Recurring Revenue(4) Subscription sales percentage: Percentage of MRR divided by monthly sales for all 12months including package sales

0.0%
2018

2019

2020

2021

2022

2023
19

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

1st Ever Disclosure of SaaS Stats

SaaS Management Indicators｜Non-Consolidated Sales by ProductAs at end of December 2023

ARR (1)(Million JPY)

ARR(2)
Growth Rate
(YoY)

MRR(3)(Million
JPY)

Subscription Gross Revenue
sales
Churn Rate (5)(4)
percentage
Cancellation rate

Net Revenue
Retention (6)ARPA(7) (JPY)
Average sales per
subdomain

Kintone13,310＋21.6%

1,109

100.0%

1.28%

107.0%

34,100

Cybozu Office

4,742

＋7.4%

395

86.8%

0.91%

96.2%

16,600Garoon3,471＋16.6%

289

68.2%

0.39%

103.1%

116,700

Mailwise786＋15.8%

65

95.0%

1.17%

102.1%

7,200

While the unit price of Garoon, which is designed to be an enterprise-wide platform, is high, the unit priceof Kintone, which drives our product sales, is the challenge.
* This data is for Cloud services only
(1) ARR: 12 months of MRR (Annual Recurring Revenue)(2) ARR Growth Rate: YoY growth rate of ARR(3) MRR: Monthly Recurring Revenue(4) Subscription sales percentage: Percentage of MRR divided by monthly sales for all 12 months including package sales(5) Gross Revenue Churn Rate: Churn rate calculated by dividing the current month's loss in subdomain units due to churn and subscriber attrition by the previous month's revenue (12-month moving average).
(6) Net Revenue Retention: Annual net revenue retention rate calculated by dividing the current month’s revenue of the subdomains subscribed to as of one year ago by the monthly revenue of one year ago (12-month moving
average).
(7) ARPA: Average Revenue per Account (ARPA) per subdomain. * Excluding team support licenses, school & parents’ licenses, and Kintone guest users. A single company may subscribe to multiple subdomains.

20Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Striving to create a Platform that Allows More
Diverse Customers to Handle Diverse Information
Digitization of specificdepartments

Information sharing
throughout the organization

Data is fragmented by department,
limiting the effectiveness of
information sharing

Enabling swifter decision making andefficient business processes

Easy-to-use low-code/no-code tools for everyone
Frontline-driven improvements without requiring IT expertise21

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Private Company

User DX Case Study｜TAIYO NIPPON SANSO Corporation
The company started deploying Kintone in 2017. Now their Kintone platform has grown to span
53 group companies with approx. 8,000 employees who are working with around 600 Kintone apps.

Unable to work outside
the office□ Before introducing Kintone,
faced challenges in working in a
mobile environment and working
from home
Development dependent
on key persons□ Tools that require expertise madedevelopment dependent on somepersonnel, raising costs

Diversification of workplaces

On the□ Able to work in external
environments, e.g. on the road, athome, or on a smartphoneHome

Kintone dojos (training camps)
to accelerate internal
deployment

Avoid key-person dependency
and achieve cost reduction□ Departments other than the
dedicated IT Department candevelop apps
□ Achieved cost reduction using
contract management app

Smartphoneroad

IT Dept.
StudysessionPeople on thefrontline

Members who pass the course
are granted app development
authority. Non-IT people on thefrontline develop apps suitablefor use in the field.

Up to approx. 4 million yen/yearof cost reduction achieved by Contract
Management App
Calculated by multiplying the labor and mailingcosts per case of approx.1,000 yen by anassumed 4,000 cases per year.

Focus on achieving insourced DX across the entire group, aiming for a strong organization responsive to change.
22

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

PrivateCompany

User DX Case Study｜Marubeni-Itochu Steel Inc.
Using Kintone as its organization-wide information sharing platform for more than 1,500
people, across 100 group companies in Japan and overseas

Digitization lagged

Improved operational efficiency using digital technologies□ Inefficient operations due to non-automatedhandling of data aggregation and analysis

Challenges in information sharing□ Communication tended to be mostly one-way fromthe head office to the group companies□ Achieved annual reductions of approx. 800 work hours thanks to customer
management and sales negotiations management apps
□ Able to survey approx. 100 domestic and overseas companies in multiple
languages□ Improved operational efficiency thanks to automated data aggregation and analysis

Information can be shared across the entire group□ Achieved all round communication between the head office and group companies.
Reflect opinions of people in the field into system improvements

Group B
Group C
HQGroup AGroup AGroup CGroup B

HQ

23

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

PublicSectorUser DX Case Study
Kitakyushu City, Fukuoka Prefecture

Measures to install Kintone
throughout the entire organization

All 8,000 staff members use Kintone and are working to digitalize the entire city office
Further accelerate improvement of citizens’ services targeting the reduction of 100,000 work hours/year by 2025

Short staffed due to hugely paper-based
operations□Reduced system costs equivalent to 2.2 billion
yen in 1.5 years after deployment□ Reduced approx. 36,000hours/year of staff
work hours

Mishima City Board of Education, Shizuoka Prefecture
Provided Kintone accounts to all teachers at 21 public elementary and junior highschools in the city
Promoted digitization of school administration and reduced paperwork by 10,000 sheets per year

□ Had to enter data written on paper into thesystem and store the hardcopies

Complete local government DX allin-one box

Costs reduced through digitization□ Required a huge number of staff and amount of timeto open and process mailings, and manage paper
documents

Administered questionnaire
documents in hardcopy

All Staff Kintone Deployment
Introductory Price Campaign

Reduced paperwork and work hours□ Eliminated approximately 10,000 pieces of paper per year
□ Reduced a total of approx. 450 hours of staff work time
across schools in the cityetc.

Number of municipalities
using Kintone
300

Approx. 290 local
governments in 2023

250
200

No. of installations
throughout entire
organizations
increased 12-fold YoY

150
100
50
0
2019

2020

2021

2022

2023

* Definition of installation throughout the entire organization: Deployment for the number of users for the same as or more users as the total number of general administrative staff(general administration and social services) disclosed in the Survey Results of the Capacity Management of Local Governments published by the Ministry of Internal Affairs andCommunications.

24Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Striving to create a Platform that Allows More Diverse Customers to
Handle Diverse Information
Expand the range of operations andinformation that can be handled

Eliminate barriers between departments
and organizations□ Product development□ Pricing/Services

Cybozu NEXT

Kintone Company-wide Deployment
License25

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Striving to Create a Platform that Allows More Diverse
Customers to Handle Diverse Information□ Product development

Kintone Mail Sharing Option
First release is scheduled in 2024

Cybozu NEXT
Expand the range of operations andinformation that can be handled26

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Striving to create a Platform that Allows More Diverse
Customers to Handle Diverse Information□ Pricing/Services
Kintone Company-wide
Deployment License
Eliminate barriers between
departments and organizations

Scheduled to go on sale in summer 2024

Kintone Company-wide
Deployment License

License dedicatedfor company-wide rollout
Raise the upper limitof the number of apps

Dedicatedplug-in27

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Ecosystem Expansion

28

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Expansive Cybozu Ecosystem
Cybozu has expansive ecosystems centered around official partners
Regional
financial
institutions
Support regional
ICT initiatives

New ecosystem expansion 2

rs

official pa
u
rtn
oz
b
e
Cy
Integration

Consulting/development

Semi-custom
solutionsUsercommunities
DX savvy people
development
institution

New ecosystem expansion 1

OEM Partner

Increasing official partners

Extensions

Sales

Active communication in user
communities

SaaS
tie-upsUsers

29

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Increasing official partners

Expanding the Partner Business
Partner sales
Partner sales account for 62.9％ of Cloudsales in 2023

No. of partners

450

About
companies

25,000

Direct/indirect Cloud sales in Japan(Million JPY)
20,00015,0002023
Indirect Cloud sales in Japan:

JPY 13,410
million+21.9% YoY

10,000■ Indirect sales■ Direct sales
5,000

No. of integrated
services

Over 350
services

As at end of December 2023
Registered companies: more than 650
No. of companies preparing to register as official partners

Increasing number of AI-integrated
services
Various AI-integrated services with Kintone were released in 2023.
Cybozu is thoroughly bolstering the platform.

kintone Teamwork Fund was establishedA corporate venture capital fund was established in July 2023 to invest
in companies taking up the challenge in new technology fields such as
generative AI and companies offering semi-custom solutions, etc.

Initiatives to strengthen partner business
Held two events in Sendai, Miyagi Prefecture
The same events are scheduled to be held in Osaka in 2024

Real Cy-Musubi in Sendai in September 2023
Exchange event between local consulting partners and SaaS
product partners

0

Cybozu Cloud Garden in Sendai in December 2023
First Real Cy-Musubi in Sendai in September 2023
An event utilizing our regional partner network, featuring
exhibits and presentations on Cloud services including Kintone

30

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Stream of AI-integrations
ComingOn LineA series of AI-integrated
services available with Kintone have been released since 2023
Kore.ai

KinchaboWorks ID Co.,Ltd.

NDI Solutions, Ltd.

Alntone+

Associate AIHub for kintone

Systems Nakashima Co.,Ltd(provisional name) Showcase Inc.

Front Agent

AI utilization support feature (β) for RICOH
kintone plus

Umee Technologies Inc.

Ricoh Company, Ltd.

mojula for kintone

Smart at AI

BIRDS Systems ResearchInstitute, Inc.

M-SOLUTIONSand more

31

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Support regional ICT initiatives

No. of Partnerships/Results Achieved Rose in 6th Year
Since Partnerships with Regional Banks Started

As at end of December 2023

Helping regional SMEs achieve DX by combining regionalbanks’ management know-how and Cybozu's ICT support

No. of regional bank partnerships

The abundant business management support know-how and relationships of trustwith customers that regional banks have cultivated, and Cybozu's Cloud services
and strong partner network combine to assist regional SMEs to achieve DX.

throughout Japan

20 banks
Regional banks’ consulting results▼Business model for tie-ups with regional banks
Provision of business improvement tools
Interview
ICT pitch
Consulting

Customer

Regionalbank
Local bank branchsales staff

Businessissuesinterview sheet

CybozuOfficial Partner

Business matching

Consultation

ICT consulting group

CybozuIntegrate
information
Backup & support
Host study sessions
for bank employees

Host joint seminars

About 600 companies
deployed Cybozu
products
Kintone Training Camp
Cybozu runs a user community
for banks to share andimprove Kintone consulting
and pitching skills

32Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

New ecosystem expansion 1

Users Have Become Partners through Joint Development, DX Savvy People Development

Semi-custom solutions
A wide variety of industries and business types, not just SIer companies and IT consulting firms,
provide customers with unique services built on Kintone by combining Kintone utilization know-how
and their exclusive business knowledge.
Japanese Customer Stories: NICE Sales Story on Kintone by Systems Nakashima Co.,Ltd, Growth
Cloud by Funai Consulting Incorporated, and others

DX personnel
development institutions

Joint Development Case
Study
Jointly developed Cloud-based, HR-related apps
with Pasona Inc.

Kintone HR Powered by PASONA

Technical schools and universities providing Kintone courses

Kintone courses are offered at 23 technical schools and universities
across Japan. Approximately 900 students took Kintone courses in
FY2023. Continue working to make Kintone a fundamental businessskill.

Hokkaido Computer School, Nihon Kogakuin College, and ECC College of Computerand Multimedia, Professional training college HAL,
Kawaijuku Gakuen Trident Computer College, Aso Business Computer Collage,
Musashino University, Tokyo Online University, Osaka Sangyo University, etc.

As at end of December 2023

A new trend: users becoming official partners
Examples of user companies who have created a DX business by combining their Kintone utilization know-how accumulated internally and theknowledge of their main business to generate new value. Because Kintone is a no-code/low-code tool, non-IT companies can roll out their DX
knowledge horizontally across their industry.
Japanese Customer Stories: HAPPO-EN inc., en Japan Inc., Yanai Petroleum Ltd., and others

33

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

New ecosystem expansion 2

OEM Partnership with Ricoh Co., Ltd.
Accelerating Kintone deployment through new
methods of service provision and sales

RICOH kintone plus
Installed customer base hit 1,000 companies markin approx. 1 year from the October 2022 launch▼Advertising in TV commercials, etc.

Features of RICOH Kintone Plus
- Standard integration with Ricoh's
multifunction devices- Exclusive plug-ins- Ricoh original App store, etc.
Received faxes, scanned
documents, and scattered
files are stored directly in
RICOH kintone plus forcentralized management.

* This information is based on Ricoh Co., Ltd.'s FY2023 ads.
This information was only valid only while the ads were on air (FY2023).

34

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Active communication in user communities

Enhancing DX Quality Thru User Communities
Kintone user community for enterprises

Kintone Enterprise Circle(Kintone EPC)
Promoting the use of Kintone within theparticipating companies

How to develop DX savvy people using no-code tools
Presented along with case studies from large companies

Released in August 2023
Released the DX Savvy People Development
Guidelines
Free accessMutual exchange of feedback, useful information and know-how, based on
output-focused interactions between users about their company’s issues andinitiatives
Foster user-level teamwork across organizational and corporate boundaries

https://topics.cybozu.co.jp/news/2023/08/28-18547.html* No. of participating companies: about 25 companies(JATCO Ltd., Rohto Pharmaceutical Co., Ltd., and others)

Possible to achieve DX
without requiring IT expertise

As at end of December 2023
35

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Global Expansion
＋6.2%
YoY

As at end of December 2023

Sales grew mainly to Japanese companies
after COVID restrictions were lifted.
Number of contracts in Taiwan jumped by
30% YoY. 70% of the contracts are withlocal Taiwanese companies.

＋1.2%

Greater China

1,380
Deployment in local companies is increasing
especially in Thailand, followed by Singapore, andMalaysia.
Continue enhancing cooperation with business
partners such as FUJIFILM Business Innovation Corp.

companies

YoY

US
RICOH Kintone plus, a Cloud-based business app
tool was released in February 2023.
While focusing on cooperation with Ricoh Co.,
Ltd., we are also strengthening our efforts toacquire customer leads.

860
companies

Expanding the overseas partner business
＋8.3%
YoY

Southeast Asia

1,180
companies

Our aim is to enhance cooperation with our business partners in Japanand overseas by increasing customer touch points through partner channels
and letting partners take part in Kintone system development.
Kintone is also available in Spanish. We continue focusing on global
development going forward, leveraging the release of Ricoh Kintone plus for
Latin America in January 2024 in collaboration with Ricoh Co., Ltd.

* Total number of companies in Greater China and SEA; number of subdomains signed up in the U.S.
36

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Other Activities

37

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Efforts to Improve the Quality of Cloud Infrastructure
Granular accountmanagement functionality✓ Account integration✓ Unauthorized access prevention feature✓ Activity log checking✓ Access permissions control✓ Highly reliable in-housedevelopment✓ Infrastructure operations✓ Robust infrastructure✓ Failure response✓ Service Level Objectives (SLO)✓ Uptime percentages

In-housedevelopment

Security protection initiatives✓ Established the Cy-SIRT* team dedicated tosecurity incident response✓ Security audits by third-party organizations✓ Cooperation with external parties*Cy-SIRT:
Cybozu – Computer Security Incident Response TeamIn-house
operations

Cloud
infrastructure
Since the start of our Cloud business in 2011, we have continued to develop and operate our own cloudinfrastructure.

The transition to NECO, an in-house developed, next-gen Cloud infrastructure with reliability enhanced
by state-of-the-art technologies, by around 2025 is underway.
38

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Security Assessments by Third-party Organizations
NEW Received SOC2 Type1 Security Report
We received a SOC2 Type1 Report in December 2023 for Kintone as Cloud service provided to overseas customers. External
auditors evaluated our internal controls related to security and other aspects of the Trust Services Criteria established by the American
Institute of Certified Public Accountants (AICPA).

Registered as compliant with security evaluation standard for government information systems (ISMAP)The Cloud service infrastructure cybozu.com as well as Garoon and Kintone (both hosted on cybozu.com) havebeen registered and renewed in the ISMAP-certified Cloud service directory since September 2021.

Acquired Certifications for Information Security Management Systems (ISMS)⚫

ISO/IEC 27001:2013*Scheduled to be compliant with ISO/IEC 27001:2022 in 2024

Certification scope: Design, configuration, and maintenance of infrastructure for our in-house developed Cloud services/Design, configuration,
operation, and maintenance of our internal IT systems/Development of our Cloud-based services, on-premises products, and our in-house systems
Certification number: IS 577142⚫

ISO/IEC 27017

Certification scope: ISMS Cloud security management system for system operation and maintenance as a Cloud services provider ofcybozu.com, Garoon, Kintone, Cybozu Office, and Mailwise
Certification number: CLOUD 715091
39

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Third-party Commendations(Customer Support/User Experience)
HDI Rating Benchmarks

Nikkei Computer, March 7, 2024 edition
Partner Satisfaction Survey 2024

Per response record/monitoring evaluation(telephone)

Cloud Information System Services
category

Received the highest rating of 3 stars

1st placefor the 2nd straight years

Nikkei Computer, March 7, 2024 edition
Partner Satisfaction Survey 2024

Software/Services that Improve Business
Efficiency and Support Insourcing category

1st place
Nikkei BP Government Technology, Autumn 2023
editionMunicipal Government IT System Satisfaction
Survey 2023-2024

Groupware/Business Chat category

1st place

Cybozu Connect.C was founded in June 2023
to enhance customer support for Cybozu products
40

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Human Resources and Organization Updates
Headcount and turnover rate

A NEW website opened in late February 2024
Human Capital Management of Cybozu

1100人
14%

1000人
900人
800人
700人

Headcount at end of
FY (non-consolidated):
No. of people

12%
10%

Staff turnover rate

600人

8%

500人

6%

400人

300人

4%

200人

Data disclosed for the first time https://cybozu.co.jp/human-capital/
Percentage of women in management positions, the percentage ofannual leave taken, the attendance rate at office locations, the gender
pay gap, the number of people participating in communication initiatives,
and the number of employees by office.

Cybozu Behind-the-Scenes, owned media thatdelivers information on how Cybozu is
tracking as an organization

2%

Our owned media that discloses "behind-the-scenes"
information that is not usually seen, such as the birth0%story of the HR system that supports "100 Workstyles
for 100 People" and its use cases.

100人
0人

Our owned media that delivers information suchas Cybozu's current situation and outcomes of
our HR policies through human resource data.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

As at end of December 2023

Went live in June 2022 https://cybozu.backstage.cybozu.co.jp/41Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Corporate Governance Update
Maintaining proper governance by selecting candidates for the Board of Directors from inside andoutside of the company

Board Composition (Candidates for FY2024)
Outside Directors
Ms. Watanabe will be reappointed for FY2024. Ms. Kumahira will
be appointed as a new Outside Director. She is active in a wide
range of areas, including promoting educational reform, nurturing ofsocial entrepreneurs, and reducing educational inequality.

Other Directors
Current Representative Director and the top three nominees selected in
an internal ballot were selected as candidates, in accordance withstatutory and administrative considerations.

Yoshihisa Aono
Mika Kumahira
Dean, Showa Women's University Career College
Representative Director, 21st Century Learning
Institute, Inc.

Representative
Director andPresident
Reappointment

Riku Okada
Human Resources(HR) Division
New appointment

New appointment

Yuko Watanabe

Takakazu
Morioka

HSW Japan, Partner and Co-founder 888
NY Consulting, LLC, Founder and Owner

Organization
Strategy Office

Reappointment

Reappointment

Tomoya Taoka
Corporate Affairs
Division
New appointment

42

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Locations in 10 Cities in Japan and 9 Cities Overseas
Offices that opened, relocated, or where the floor space was expanded in 2023 or later

Offices in Japan

Overseas offices
SapporoSendai(relocated in January
2020)(opened in April 2021)

Shanghai
Shenzhen
San Francisco

ChengduOmiya (opened in March 2022)

Tokyo (partially renovated in

Hiroshima(integrated and established in July 2023)

August 2022)

Yokohama

Fukuoka(relocated andexpandedin May 2021)

As at end of December 2023

BangkokOsaka(opened in October 2020)

Matsuyama(founded in Matsuyama City,
Ehime Prefecture in August 1997)

Taipei

SydneyHo Chi Minh City
Nagoya(relocated in February 2024)

Kuala Lumpur(opened in March 2022)

43

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Our IT Support for Disasters in Japan and Overseas
Provide free licenses and IT support for disaster recovery

Published training textbook fordisaster volunteer centers

Support disaster affected areas and on-site support teams using Cybozu's IT
services that can improve business operations from the perspective ofpeople in the field.

Licenses for disastersupportOffer all Cybozu Cloud services free-ofcharge for 6 months

Disaster Support TeamIn 2020, the Disaster IT Support Team wasformed by voluntary applicants.

Disaster Support
Partners

Use cases

Strengthened collaboration with local
governments, social welfare councils,
and our partners✓Consolidating, organizing, and disseminating information in the□event of a disaster✓Connecting disaster-affected areas with the support needed□□✓Improving efficiency of support activities, etc.

The book covers deployment
thru to usage tips

44

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Future Plans

45

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Company-wide Slogan for 2023-2025

25BT“2025 and go Beyond with Trust”
We will focus on reaching our next big milestone in 2025,
and work on long-term initiatives that look to the future
beyond 2025 while placing great value on trust.
46

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Striving to create a Platform that Allows More
Diverse Customers to Handle Diverse Information
Digitization of specificdepartments

Information sharing
throughout the organization

Data is fragmented by department,
limiting the effectiveness of
information sharing

Enabling swifter decision making andefficient business processes

Easy-to-use low-code/no-code tools for everyone
Frontline-driven improvements without requiring IT expertise47

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Aggressive Investment to Further Expand
Cloud Business
Consolidated Sales and Operating Income

Sales(Million JPY)

Operating profit(Million JPY)

30,000

3,500
3,000

25,0002,500

Consolidated salesNon-20,0002,000

Consolidated operating profit
consolidated…

1,500

15,0001,000
10,000

500
0

5,000
- 500
-500
- 1,000-1,000

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024
(Projection)48

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Build a society brimming with teamwork

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

Appendix
By Product (non-consolidated)- Cloud services user companies- Gross Revenue Churn Rate
- Net Revenue Retention Rate
- ARPA: (Average Revenue per Account)/per subdomain

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

* As of the end of
December of each year

SaaS Management Indicators：(firms)No. of Cloud Services User Companies

40,00032,80030,00020,00010,90014,30018,60023,00027,500

2.00%
1.27%

1.28%

1.24%

1.28%

1.02%

1.00%
0.50%

2018 | 2019 | 2020 | 2021 | 2022 | 2023
End Dec. End Dec. End Dec. End Dec. End Dec. End Dec.
2018

2019

2020

2021

2022

0.00%

Dec
2 0201818|

2 2019
0Dec
19

|

Dec
22020
020

Dec
22021
021

|

108.2%

110.0%

108.9%

2Dec
023
2023

ARPA (Average Revenue per Account)/per subdomain

40,000110.4%

|

(3)

(JPY)

Net Revenue Retention
112.3%

Dec
22022
022

|

2023

(2)

115.0%

(1)

1.67%

1.50%

10,0000Gross Revenue Churn Rate

109.9%

30,00024,20025,900Dec
2 02018
18 |

Dec
20
19 |
2019

30,90028,90033,50034,100

Dec
22022
022

Dec
| 2023
2023

107.0%
20,000105.0%
10,000100.0%
2 2018年
018 |

22019年
019 |

2020年
2
0 2 0 | 2021年
2021| 2022年
2022| 2023年
2023

0

Dec
2 2020
020

|

Dec
22021
021

|

*The above data is for Kintone (non-consolidated)(1) Gross Revenue Churn Rate: Churn rate calculated by dividing the current month's loss in subdomain units due to churn and subscriber attrition by the previous month's revenue (12-month moving average).
(2) Net Revenue Retention: Annual net revenue retention rate calculated by dividing the current month’s revenue of the subdomains subscribed to as of one year ago by the monthly revenue of one year ago (12-monthmoving average).
(3) ARPA: Average Revenue per Account (ARPA) per subdomain. * Excluding team support licenses, school & parents’ licenses, and Kintone guest users.
A single company may subscribe to multiple subdomains.

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

* As of the end of
December of each year

SaaS Management Indicators：(1)(firms)No. of Cloud Services User Companies

30,00025,00020,000Gross Revenue Churn Rate

19,10020,80024,70023,10022,000

1.20%
1.00%

15,8000.60%

10,000

0.40%

5,000

0.20%
2End
0 1Dec.
8 |
2018

2End
0 1Dec.
9 |
2019

2End
0 2Dec.
0 |
2020

2End
0 2Dec.
1 |
2021

2End
0 2Dec.
2 |
2022

2End
0 2Dec.
3
2023

(2)

Net Revenue Retention
102.0%

101.1%

0.82%

0.94%

0.91%

0.81%

0.80%

15,000

0

1.00%

0.92%

0.00%

Dec
2 02018
18(JPY)

ARPA (Average Revenue per Account)/per subdomain|

2 20190Dec
19Dec
2 2020
020

|

Dec
22021
021

|

|

98.6%

97.6%

15,60016,000

98.0%

96.2%

2Dec
023
2023

16,60016,200

99.8%
98.5%

|

(3)

17,000100.0%

Dec
22022
022

15,20015,00014,800Dec
2 0201818 |2 20190Dec
1915,00096.0%
14,000

94.0%
92.0%

2 0Dec18 |2018

2 0Dec19 |2019

2 0Dec
20
2020

|

2 Dec
021
2021

|

2Dec
022
2022

|

2Dec
023
2023

13,000

|

Dec
22020
020

|

Dec
22021
021

|

Dec
22022
022

|

*The above data is for the Cybozu Office Cloud business (non-consolidated).
(1) Gross Revenue Churn Rate: Churn rate calculated by dividing the current month's loss in subdomain units due to churn and subscriber attrition by the previous month's revenue (12month moving average).
(2) Net Revenue Retention: Annual net revenue retention rate calculated by dividing the current month’s revenue of the subdomains subscribed to as of one year ago by the monthly revenueof one year ago (12-month moving average).
(3) ARPA: Average Revenue per Account (ARPA) per subdomain. * Excluding team support licenses, school & parents’ licenses, and Kintone guest users.
A single company may subscribe to multiple subdomains.

2Dec
023
2023

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

SaaS Management Indicators：(firms)
3,000
2,000
1,300

2,000

1,800

1,500

2,300

2,600

0.55%

0.52%

0.51%

0.48%
0.39%

0.20%
End
Dec.
2
0 1Dec.
8 | End
2 201901
9 | End
2 20200 Dec.
2 0 | End22021
0 Dec.
2 1 | End
22022
0 Dec.
2 2 | End
22023
0Dec.
23
2018
(2)

Net Revenue Retention
103.0%

103.1%

102.2%

0.00%

Dec
2 0 2018
18 |

(JPY)

ARPA (Average Revenue per Account)/per subdomain

100.6%

|

Dec
20
20
2020

|

Dec
2 2021
021

|

Dec
22022
022

|

2Dec
023
2023

150,000
96,00099,400101,800Dec
2 02018
18 |Dec
2 02019
19 |Dec
2 2020020

107,100

112,100

116,700

Dec
22021
021

| 2022
2Dec
022

Dec
| 20232023

100,000

99.5%

100.0%

Dec
2 0201919(3)

101.6%

102.0%

50,000

98.0%
96.0%

0.66%

0.40%

500

104.0%

0.80%
0.60%

1,000
0

(1)

Gross Revenue Churn Rate

No. of Cloud Services User Companies

2,500
1,500

* As of the end of
December of each yearDec
2 0201818 |2 2019
0Dec
19

|

Dec
22020
020

|

Dec
22021
021

|

Dec
2
022
2022

Dec
| 2023
2023

0|*The above data is for the Cloud business of "Garoon" (non-consolidated).
(1) Gross Revenue Churn Rate: Churn rate calculated by dividing the current month's loss in subdomain units due to churn and subscriber attrition by the previous month's revenue (12-month moving average).
(2) Net Revenue Retention: Annual net revenue retention rate calculated by dividing the current month’s revenue of the subdomains subscribed to as of one year ago by the monthly revenue of one year ago (12-monthmoving average).
(3) ARPA: Average Revenue per Account (ARPA) per subdomain. * Excluding team support licenses, school & parents’ licenses, and Kintone guest users.
A single company may subscribe to multiple subdomains.

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023

SaaS Management Indicators：(firms)10,000(1)

Gross Revenue Churn Rate

No. of Cloud Services User Companies

8,000

6,000

* As of the end of
December of each year

4,300

5,000

6,000

8,300

7,500

6,900

1.50%

1.35%

1.28%

1.20%

1.17%

1.17%

1.06%

1.00%

4,000
0.50%

2,000
0

2End
0 1 Dec.
8 |
2018

2End
0 1Dec.
9 |
2019

End
2
0 2Dec.
0 | End2 0 Dec.
2 1 | End
2 0Dec.
22
2020
2021
2022

| End
2 0Dec.
23
2023

(2)

Net Revenue Retention
105.0%

0.00%

2 2018
0Dec
18

(JPY)

ARPA (Average Revenue per Account)/per subdomain

Dec
22019
019

|

Dec
22020
020

|

Dec
| 2023
2023

5,800

6,900

6,300

6,000

5,800

7,200

6,000

99.7%

99.3%

100.0%

102.1%

101.6%

100.7%

Dec| 2022
2
022

(3)

8,000

104.5%

Dec
2
021
2021

|

4,000
2,000

95.0%

Dec
2 02018
18 |Dec
2 0201919 |2 2020
0Dec
20

|

Dec
2 2021
021

|

Dec
22022
022

|

Dec
22023
023

0

Dec
22018
018

|

Dec
22019
019

|

Dec
22020
020

|

Dec
22021
021

|

Dec
22022
022

|

*The above data is for the "Mailwise" Cloud business (non-consolidated).
(1) Gross Revenue Churn Rate: Churn rate calculated by dividing the current month's loss in subdomain units due to churn and subscriber attrition by the previous month's revenue (12month moving average).
(2) Net Revenue Retention: Annual net revenue retention rate calculated by dividing the current month’s revenue of the subdomains subscribed to as of one year ago by the monthly revenueof one year ago (12-month moving average).
(3) ARPA: Average Revenue per Account (ARPA) per subdomain. * Excluding team support licenses, school & parents’ licenses, and Kintone guest users.
A single company may subscribe to multiple subdomains.

Dec
2
023
2023

Business Overview and Financial Results Briefing for the Fiscal Year Ended December 2023