Cybozu, Inc.
Business Overview and Financial Results Briefing
for the Fiscal Year Ended December 2022
February 22, 2023
Cybozu, Inc.

About Cybozu
Cybozu, Inc.
Business
Representative
Director andPresident

Develop, sell, and operate groupware platforms/Methods consulting
business
Yoshihisa Aono

Established

August 1997

Head Office

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

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

Capital Stock
Listed Exchange
Employee
Headcount

JPY 613 million
Tokyo Stock Exchange, Prime Section (Securities Code 4776)
Consolidated: 1,115 employees, Non-consolidated: 870 employees* As at end of December 2022
* Open-ended contract (permanent) employees only (executives not included)

Corporate Vision(As per resolution passed at the 24th Annual Shareholders Meeting on March 28, 2021)

PurposeBuilding a society brimming with teamwork
Culturel Share a common vision
Create a common vision that resonateswith all members and guides their actionsl Embrace individuality
Embrace individual diﬀerences and tap
into each otherʼs strengths

l Be transparent
Build a foundation for open trustl Be yourself, takeresponsibility
Cultivate independence and generate
progress through discussion

Information Sharing and Teamwork
Data, information, and communication isseparated by team, making it impossible toshare information across organizations.

Information is siloed, cutting theworkplace off from the data itneeds to innovate

Information shared openly on one platform.
Workplace-driven business improvement.

Information sharing boosts
teamwork and helps the entire
organization to evolve

Cybozuʼs Cloud Services
Business app development platform
Groupware

27,500 companies
signed up

Installed customer base:75,000 companies
Easy and simple
groupware for SMEs

Platform for implementing
no-code/low-codebusiness solutions

Mail-sharing application
Installed customer base:Installed customer base:6,800 companies
Groupware for large
and mid-sizedorganizations

13,000 companies

Centralized managementof team email
correspondence* As at end of December 2022
* Kintone: Number of domestic companies signed up to Kintone (cloud-only, no on-premises version available)* Other products: Total number of domestic companies who have deployed product on-premises or in the cloudAchieving a Digital Transformation (DX) In-housewith No-code and the Power of Hands-on Support

Plug-ins

No-code“Companion-runner partners”(partners that provide hands-on deployment
support)

Education andinsourcing support

Deployment
consultation

Successful
insourced DX

Integration withthird-party
services

Reskilling

User
communities

Know-how sharing

User interactionCompany Slogan for 2021-2022

BET!
Keeping pace with the DX wave - Aggressive investment
taking advantage of the favorable business environment

Consolidated Sales and Operating Profit
Sales

Operating profit(Million JPY)

(Million JPY)

25,000

FY2022

22,067million +19.4%
Consolidated operating income: JPY 611 million -57.5%
Consolidated sales: JPY

20,000

(

2,500

YoY )

(

2,000
YoY)

1,500
15,000Non-consolidated sales
Group sales

10,0001,000

Consolidated operating profit
500

5,000

0

0

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Consolidated Financial Results
Consolidated financials( U n i t :m i l l i o n

J P Y )FY2021(Actuals)

FY2022(Actuals)

FY2023(Projection)s

18,48922,06725,497

Operatingprofit

1,441

611

2,376

Ordinary

profit

1,468

987

2,450

Current net profit

551

66

1,541

Net profit per share

JPY 12.03

JPY 1.45

JPY 33.59

Dividend per share

JPY 12.00

JPY 13.00

JPY 14.00

S

a

l

e

Detailed Results FY2022
Consolidated PL(Unit:

millionJPY)

FY2021
Actuals

FY2022
Actualss

18,48922,067

Cost of sales

1,339

1,951

Labor

costs

6,315

7,854

Advertisingexpenses

4,907

6,452

O

r

4,486

5,198

Operating profit

1,441

611

S

a

t

l

h

e

e

Consolidated sales+ JPY 3,578 million YoY( +19.4%)

Aggressive investment,
mainly in Kintone TVcommercials
Consolidated operating
profit- JPY 829 million YoY(-57.5%)

Results of Advertising Investment
Stepped up advertising to increase product awareness in response to growth
in cloud segment

Changes in actual advertising expenditure(Million JPY)l Ramped up advertising in the last two years, mainly
TV commercials for Kintone

6,452
4,907
2,673

l Advertising spend was approx. JPY 4.9 billion in
2021, and JPY 6.4 billion in 2022
2020

2021

2022

Improved awareness due to stepped up advertisingl Awareness of Kintone up by 9 points
l Greater Kintone brand name recognition byattendees at tradeshows, seminars, and other events

Kintone awareness2020

19% → 2022 28%* Awareness survey conducted by Cybozu

Financials
Consolidated BS(Unit: million JPY)

FY2021

FY2022

YoY

14,037

15,907

1,870- Cash & deposits

4,805

5,124

319

Liabilities

7,665

11,277

3,611

2,200

4,680

2,480

Net assets

6,371

4,630

-1,741- Treasury stock-1,800-1,800-0

Shareholder equity
ratio

45.4%

29.1%

-16.3%

Assets- Borrowings

Net assets per share

JPY 138.88 JPY 100.93 JPY -37.95

Aggressive
investment
ﬁnanced throughborrowings.
JPY 4.18 billion
repaid fromproceeds ofdisposal of treasury
stock in January2023

Solid Growth in Cloud Sales(Million JPY)

Consolidated sales (cloud/on-premises)

25,000Share of 2022 sales from cloud-related sales
20,000l Cloud sales: JPY 18,649million(+23.8% YoY)

15,000l Percentage of total sales: 84.5%
10,000On-premises and other

5,000

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

First-ever release of key sales ﬁgures

Kintone Sales Break the JPY 10 Billion Mark(Million JPY)

Kintone consolidated sales

12,00010,000

Kintone consolidated sales in 2022

8,000

JPY 10.414 billion+32.4%YoY

6,000

4,000

2,000

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

First-ever release of key sales figures

Consolidated Sales by ProductOn-premises(Million JPY)

Cloud

Increasingly used concurrently with Kintone
GaroonFY20224,500

JPY 4,562 billion

Concurrently
with Kintone+13.1% YoY

3,000* As at end of December 2022

About 47%

1,500

Mailwise
Concurrently
with Kintone
About 25%

0
2012

2013

2014

2015

2016

(Million JPY)

2017

2018

2019

2020

On-premises

2021

2022
Cloud

6,000

Cloud

FY2022

FY2022
4,000

On-premises(Million JPY)750

JPY 5.088 million

500+16.2% YoY+5.3% YoY
2,000

250

0

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

JPY 678 million

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Initiatives to Boost Security Trust
Delivering safe and secure products thanks to robust security
measures and stable operational infrastructure
Granular account management functionality

Integration with other companies' services

ü Account integration
ü Prevent unauthorized accessü Activity log checking
ü Access permission controlü Account management and single sign-on
ü VPN connections
ü LGWANü Mail Servers

Highly reliable infrastructure operations
ü Infrastructureü Failure responseü Service Level Objectives (SLO)ü Uptime percentages

Security protection initiatives
ü Dedicated security incident response team
ü Security audits by third-party organizations
ü Security policies
ü Cooperation with external parties

Assessments by Third-party Organizations(Security)
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) have been registered in the ISMAP-certified cloud service directory since 2021.

Acquired Certifications for Information Security Management Systems(ISMS)l ISO/IEC 27001
Certiﬁcation scope: Design, conﬁguration, and maintenance of infrastructure for our in-house developed cloudservices/Design, conﬁguration, operation, and maintenance of our internal IT systems/Development of our cloudbased services, on-premises products, and our in-house systems
Certiﬁcation number: IS 577142
l ISO/IEC 27017
Certiﬁcation scope: ISMS cloud security management system for system operation and maintenance as a cloudservices provider of Garoon, Kintone, Cybozu Oﬃce, Mailwise, and cybozu.com
Certiﬁcation number: CLOUD 715091

Third-party Commendations(Customer-support/user-experience)
HDI Rating Benchmark
Per response record/monitoring
evaluation (telephone)
Received the highest rating of 3 stars

Nikkei Computer, Sept. 1, 2022 edition
Customer Satisfaction Survey 2022-23
First place in the cloud infrastructureservice (PaaS) category

First-ever release of key sales figures

Expanding the Partner BusinessNo. of integrated
services

Partner sales
Partner sales accounted for 61.6% ofcloud sales in Japan in 2022

18,000

Direct cloud sales in Japan in 2022:

15,000

JPY 11,003 million

12,0003,000

Indirect sales

0
2012

2013

servicescompanies* As at end of December 2022

* As at end of December 2022

New Cybozu-event inaugurated in September 2022
Cybozu Cloud Garden in Nagoya

Direct sales

2011

400

third-party integrated services ecosystem.

9,000
6,000

About

Boost awareness of solutions
combining Kintone with other SaaS
products
Enhance business allianceactivities to expand ourCloud sales (Direct sales/Indirect sales)(Million JPY)

Over 370

No. of partners

2014

2015

2016

2017

2018

2019

2020

2021

2022

* Japan sales only

New event held in Nagoya for the
first time utilizing our regional
partner network, featuring exhibits
and presentations on various
SaaS products, including Kintone.

Partnership case studies

How Japanese Regional Banks are Pitching Cybozu Products
to Local Companies to Drive DX
Business model for tie-ups with regional banks

No. of regional bank partnerships

17 banks
throughout Japan* As at end of December 2022

* Just some of the banks we started working with in FY2022

Kintone Training Camp
Cybozu manages a community for banks to
improve and share their Kintone consulting andpitching skills.

Regional bank consulting - TrackrecordCybozu products deployed inapprox.

400 companies* As at end of December 2022

Partnership case studies

Supporting Reskilling in Collaboration with Pasona Inc.
Reskilling registered temp staff so they can be dispatched to client premises towork as DX-capable talent by teaching them Kintone skills
l Kintone Certification Course forexpert staff who have registeredwith Pasonaʼs talent dispatch
service, jointly launched by Pasona
Inc. and Cybozu
l Proactive, hands-on support andfollow up provided by Pasona andCybozu to aid reskilling
l The goal is to develop 2,000 expert
staff to be DX-capable talent trainedin working with KintoneDeployment Statistics
Number of companies
signed up to Kintone:

27,500 companies

Customer breakdownby sector* As at end of December 2022

93% of stakeholders

deploying Kintone in theirorganizations are not in the
IT department
Departments stakeholders
driving
Kintone deployment in theirorganization belong to

Average no. of companies
installing Kintone

550 companies/month(Scope: Customers active as at endof December 2022)* 2022 average

Installed at 1 in every 3companies trading on the
TSE Prime Section* As at end of December 2022

* As at end of December 2022

Enhancing DX Quality with User Communities
Kintone user community for enterprises

Kintone Enterprise Circle(Kintone EPC)•

No. of participating companies: around 20

Following feedback from Kintone EPC calling for theestablishment of IT governance, and based on
discussions with user companies and external advisors:

We published the Kintone Governance
Guidelines in July 2022

*As at December 2022

(Including corporations such as En Japan Inc., and Japan
Airlines)

Free access•Mutual exchange of feedback, useful informationand know-how, based on output-focusedinteractions between users about theircompanyʼs issues and initiatives➡ Promote the use of Kintone within theparticipating companies•

Foster user-level teamwork across organizationaland corporate boundaries

https://kintone.cybozu.co.jp/jp/governance̲guideline/

Drive successful insourced
DXs with flexible and effective governanceUser case stories

Alpen Group

Used Kintone to rapidly start managing the majorityof retail store systems in-housel

Leveraged retail experience to build business appsl

65 *business apps built using Kintone

New structure for efficient operation of business systems inaround 400 retail stores* As at January 2023l•

Built customer records with information about
customer purchase history, previous interactions,and more•

Built a manufacturing management system for
rackets and other sporting equipment in two
weeks

•

Built a system for the buyback of secondhand
gear in two months•

Built an order management system in twomonths•Build a part-time employment system

Significant cost reductions and speed improvements
https://kintone-sol.cybozu.co.jp/cases/alpen.html

Achieving successful insourced DXs made possible by empowering employees familiar with field operations
to build the business solutions themselves

Driving DX by Japanese Local Governmentswith Kintone
Kintone one-year free campaign
l Cybozu-campaign providing extensive support to Japanese municipalities to aid with
their DX-effortsl Municipalities participating in the campaign receive hands-on guidance on how to utilize
Kintonel Over 90% of participating municipalities intend to officially deploy Kintone in the next
fiscal year. Of these, more than 20% are considering global deployment across all of
their agencies
Free use of Kintone for one year
June 2022
June 2023Transition to
Operational
DX support by
full-scale
Provide app
support todedicated Cybozu
deployment
templates
encourage
representative
organization-wide
deployment

of Kintone

Number ofmunicipalities using
Kintone2002022

About 190
municipalities
150

100

All-staff Kintone deployment license
50

l New licensing structure launched in April 2022, available for municipal Kintone
deployments that cover all staff in the organizationl Up to 60% reduction in license fees if the deployment covers all agencies in themunicipality

0
2019

2020

2021

2022

Expanding Kintone to National Ministries
Driving DX in Japanʼs national ministries with Kintonel The goal is to facilitate DX in civil service operations and enable
more efficient information sharing by deploying Kintone in national
ministries as well as local municipalities
l The hectic schedule of civil servants makes it difficult to find time towork on internal DX→ Working to expand our partner-based, hands-on support model

Case study: Ministry A
Over 90% reduction in costs after
deploying Kintone through a“companion runner partner” (partnerthat provides hands-on deployment
support)Case study: Ministry B
Kintone deployed as aplatform for informationsharing with every
municipality nationwide

Cybozu to host secondments of officials from national ministries starting April 2023l Host secondments of ministry staﬀ toboost our organizational capability to
expand Kintoneʼs deployment in thegovernment sector.
l Since 2020, Cybozu has also accepted
temporary staﬀ assignments from local
municipalities. This helps grow the numberof DX-promoters within the public sector,
which ultimately delivers signiﬁcant social
value.

National
ministries(3) Utilize knowledge gainedat Cybozu tofacilitate DX in operations(1) Secondment at Cybozu

Staff(2) Learn the following at Cybozu:• How to improve operations with
Kintone• Cybozuʼs organizational
management methodology, andmoreExpanding Our Organizational Reform Methods
Consulting Services Thru Hands-on Support
Transitioning from lectures to training
and consulting
Actuals for 2022

125

Seminars:
Training and consulting
assignments:

159

YoY

+64%

320
240

Seminarsl Until 2020 we mainly provided workstyle reformrelated seminars, but since 2021-2022, ourportfolio of hands-on support services has grownsignificantly (training, consulting, advisory
services, etc.).

Hosting interns from PanasonicTraining/consulting

l Four employees from Panasonic Automotive
Systems Co., Ltd. interned at Cybozu for two
weeks.

160
80
0
2018

2019

2020

2021

2022

l Incorporate insights about information-sharing
gained at Cybozu in their own workplace after
the internshipHuman Resources and Organization Updates
Headcount and turnover rate
1,000⼈30%
Headcount at end of FY (non-900⼈

consolidated): No. of people
Turnover rate: %

800⼈
700⼈

25%

20%

600⼈
500⼈

15%

400⼈
10%

300⼈
200⼈

5%

100⼈
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August 2022
Tokyo Office partial renovation
The Tokyo Officeʼs
workspace area waspartially renovated toaccommodate more
employees andevolving workstyles
Establishment of global employee shareownership plan encompassing overseas
locations
Special one-time inﬂation relief allowance paidout to all direct employees, including those
based overseas

Establishment of the New Business
DivisionCorporate Governance Update
Maintaining proper governance by ensuring equal representation of candidates from threedifferent governance perspectives for this yearʼs appointments to the Board

Board Composition (Candidates for Board of Directors for FY2023)
Two Outside Director candidates

Two Internal Director candidates

Two Internal Director candidates

recruited externallyselected by internal vote within
executive teamselected by internal company ballot
among all employees

Current Representative Director and one of
the current Executive Officers selected as
candidates, in accordance with statutory
and administrative considerations.

Two candidates selected, representing
the top two nominees in an internalballot in which all employees were
eligible to vote.

Outside Director positions were added to
the Board in FY2022, in accordance withnew requirements in the revisedCompanies Act, effective from March 1,
2021.

Yasutomi Kitahara
President and Representative Directorof K.K. Nature
Graduate School of Management,
Nagoya University of Commerce &Business MBA
Professor, Ph.D

Yoshihisa Aono

Takakazu Morioka

Representative Director andPresident

Teamwork Research Institute(TRI)

Yuko Watanabe

Tadamasa Hayashi

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

Executive Oﬃcer, General
Manager of the Corporate
Aﬀairs Division

Yuko Kanzaki
Development Division

Global expansion
YoY

＋9.2%
Increasing number of newsign-ups by local companies,
especially in Thailand.
Expanding activities in SEA
through our new Malaysiansubsidiary, established in
March 2022 as our first SEA
sales base.

Greater China＋16%

Twofold increase in new sign
ups in Taiwan, of which 80%
are Taiwanese local companies

YoY

＋25%

US

1,300
companies

Southeast Asia
YoY

Sales growth in China despite
impact of restrictions due to thezero-COVID policy.

1,090
companies

Laying the groundwork for fullscale collaboration with Ricohby focusing on strengthening
the organization and expanding
customer lead acquisition

850 SDs

Expand presence in US market
via our partnership with Ricoh
Company, Ltd.
Expand Kintoneʼs global presence, especially in
the U.S., through Ricoh's strong channels andsupport network capabilities: Overseas oﬃces* As of December 2022 (Total number of companies in Greater China and SEA; number of subdomains signed up in the U.S.)Company-wide Slogan for 2023-2025

25BT“2025 and go Beyond with Trust”
Focus on reaching our next big milestone three years fromnow (FY2025), while simultaneously developing trustcentered initiatives that look to the future beyond 2025.

Aim for Continued Cloud Growth
Consolidated sales

Sales

Operating profit(Million JPY)

(Million JPY)

30,0003,000
Sales (consolidated)
2,500

25,0002,000

20,0001,500
15,0001,000
10,000

500

5,000

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Build a Rich and Robust Ecosystem toPower User-driven DX

Plug-ins

No-code“Companion-runner partners”(partners that provide hands-on deployment
support)

Education andinsourcing support

Deployment
consultation

Successful
insourced DX

Integration withthird-party
services

Reskilling

User
communities

Know-how sharing

User interaction

Triggering a Cascade of Transformations
with No-code
Cultivationof digitaltalentNo-code empowers team members on the ground to takethe initiative and digitize field operations for themselves

Organizationwide DX

Bigger pool of in-house talent capable of improving
operations with digital tools increases momentum fororganization-wide DX

OrganizationalchangeCultivating innovative talent gives rise to people who can take theinitiative and are motivated to drive change, while digitizing operations
simplifies information-sharing and enhances teamwork. The end-result
is an organization that is more adaptable to change.

Building a Society Brimmingwith Teamwork