(Ticker code: 4662)

Put Our Heart into Technologies

Fiscal 2015
(Year ended March 2015)

Financial Results Presentation
Focus Systems Corporation
Tuesday June 2, 2015
This document uses information available as of March 31, 2015, and contains forward-looking statements that represent
management’s expectations or beliefs relating to future events. Actual results could differ materially from those stated or implied inthese forward-looking statements. The Focus Systems Group does not guarantee the information’s accuracy.
http://www.focus-s.com
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Contents

I. Financial results for fiscal 2015 ended March 31, 2015

P 3 㹼 P 13

II. Management strategies and projections for Fiscal 2016P14 㹼 P15

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I. Financial Results for Fiscal 2015
Ended March 31, 2015

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Topics for fiscal 2015

(1) Changed listing market from JASDAQ to the Second Sectionof the Tokyo Stock Exchange(May 25, 2015)(2) Posted new record highs for net sales and net income(3) Increased cash dividend per share to 25 yen annually(4) Number of employees surpassed the threshold of 1,000 people(as of April 1, 2015)

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Overview of Financial Results(¥ million)

Net salesYear ended
March 2014

Year ended
March 2015

Year ended
March 2015

Results㻌

PlansResults㻌Year-on-year change

Changes comparedwith plan㻌AmountAmountRatioRatio

14,146

14,50015,081

935

6.6%

581

4.0%

㻌 㻌 Public Sector

4,668

5,016

5,372

703

15.1%

356

7.1%

㻌 㻌 Private Sector

8,440

8,535

8,633

193

2.3%

98

1.1%

Security
Equipment

1,037

949

1,075

38

3.7%

126

13.3%

Operating income

887

900

940

52

5.9%

40

4.4%

Ordinary income

849

850

897

47

5.6%

475.5%Net income

455

500

592

137

30.1%

9218.4%

㻌㻌• Achieved results surpassing plans in all of the private sector, public sector and security
equipment businesses• Cash dividend per share (planned): 25 yen (including 15 yen as special dividend)㻌 (Note) The Company made a modification on March 23, 2015 to its cash dividend forecast, increasing from the previous 20 yen per share to 25 yen per share.

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Segment Information(¥ million)
Net sales FY2012

4,717

FY2013

FY2014

4,311

4,668

FY2015

5,372

Public sector

Orders received in the social
security (pension) and medical
insurance areas remained strong.
Preparations for the introductionof the national identification
number (“My Number”) system
also started to take place.

6,695

7,461

8,440

8,633
Despite demand, the lack inengineers became a bottleneck.

Private sector

Sales performance remained
strong in the Nagoya area.

496

580

1,037

Securityequipment

1,075

Following the previous year, sales
continued to be strong for anticybercrime offerings.
Strong sales were also recorded
for encryption engines inaccordance with preparations
made by companies for the “MyNumber” system.

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Sales to Key Customers
By customer group

Public sector-related
business continued to show
a recovery trend

6000
5000

NTT DATA related
IBM Japan related
CTC related
OKI related
SoftBank related
Product sales

4000
3000
2000
1000
0

FY2013

FY2014FY2015

Demand was solid for anticybercrime products
Orders received from NTT
Data, a major customer ofpublic sector-related
business, grew strongly

By key customer
3000
2500

IBM Japan

2000

NTT DATANTT DATA i

1500

CTC

1000

SoftBank Mobile

500
0

FY2013

FY2014FY20157Good sales achievements
were made in the Nagoya
area

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Nonconsolidated Balance Sheets(¥ million)
As of Mar. 31,
2013

As of Mar. 31,
2014

As of Mar. 31,
2015

Noncurrent Assets

5,559
5,636

6,428
5,408

6,897
7,443

Property, Plant and Equipment

3,746

3,741

3,747

38

60

188

1,851
11,195

1,606
11,837

3,507
14,340Current Liabilities

3,769

4,102

4,141

Noncurrent Liabilities

2,556

2,705

3,429

Total Liabilities

6,3266,807

7,571

Capital stock

2,905

2,905

2,905

Capital surplus

1,468367

1,468
719

1,468
1,173

(706)

(706)

(706)

Total Net Assets

833
4,868

642
5,029

1,928
6,769

Total Liabilities and Net Assets

11,195

11,837

14,340Item(ASSETS)
Current Assets

Intangible Assets
㻌 Investments and Other Assets
Total Assets

Total assets were up ¥2,503 million from a year earlier,largely because of increase of ¥1,851 million in investment
securities, ¥246 million in cash and deposit and ¥244
million in accounts receivable – trade.

(LIABILITIES)

Total liabilities were up ¥764 million from a year earlier,principally because of increases of ¥641 million in bonds
payable and 566 million in deferred tax liabilities, against adecrease of ¥496 million in long-term loans payable.

(NET ASSETS)

Retained earnings
Treasury stock
Valuation difference on availablefor-sale securities

8Net assets were up ¥1,739 million from a year earlier,mainly due to an increase of ¥1,285 million in thevaluation difference on available-for-sale securities and¥454 million in retained earnings brought forward.

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Nonconsolidated Income Statements(¥ million)
FY2013(ended Mar. 31,2013㻕㻌

FY2014(ended Mar. 31,2014㻕㻌

FY2015(ended Mar. 31,2015㻕㻌

Net Sales

12,35314,14615,081

Cost of Sales

10,796

12,181

12,976Gross Profit

1,557

1,965

2,104

SG & A Expenses

1,118

1,077

1,164

Operating Income

439

887

940

Non-operating Income

64

5449

Non-operating Expenses

879292

Ordinary Income

416

849

897

Extraordinary Income532

㸫

22

Extraordinary Loss

727

3

10

Income before Income Taxes

221

846

908

Income Taxes

(19)

390

316

Net Income

241

455

592

Item

9Net sales climbed ¥935 million from the previous
fiscal year.
Sales grew for all segments, with increases of ¥703
million for the public sector business, ¥193 million
for the private sector business and ¥38 million forthe security equipment business.
Cost of sales increased ¥795 million, with grossprofit rising by ¥139 million.

In association with the increase in net sales,
operating income increased ¥52 million from theprevious fiscal year.

The extraordinary income generated in the fiscalyear before the previous fiscal year had been
primarily due to gain on sales of investment
securities and insurance premiums refundedcancellation. The extraordinary loss generated in thefiscal year before the previous fiscal year had been
mainly due to directors’ retirement benefits.

The Company thus posted a net income of ¥592
million, up ¥137 million from the previous fiscal year.
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Gross Profit

Net Sales

2,104
15,081

16,00014,14615,00014,0002,000

12,3531,800

13,0001,600

12,0001,400

11,000

1,200

10,000

1,000
FY201

1,965

2,200

FY2014FY2013

FY2015
Operating income

1,557

Ordinary income
887

897

849
592

800
600

FY2015

Net income
940

1000

FY2014439455

416

400

241

200
0

FY2013

FY2014
10FY2015
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Statements of Changes in Shareholders’ equity(¥ million)
Valuation andtranslation
adjustmentsShareholders’ equity
Retained earnings

Capital surplus
Capital stock

Balance as of March 31,
2014

2,905

Other retained
earnings
Legal capital Other capital Total capitalsurplus㻌
surplussurplusRetained earnings
brought forward

749

718

1,468

719

Treasury
stock

Total
shareholders’equityValuationdifference on
available-forsale securities

(706)

4,386

642

Total
net assets

5,029

Changes of items during theperiodDividends from surplus

(138)

(138)

(138)

Net income592

592

592

(0)

(0)

Purchase of treasury
stock

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
the period

Balance as of March 31,
2015

1,285

1,285

䠉

䠉

䠉

䠉

454(0)

454

1,285

1,739

2,905

749

718

1,468

1,173(706)

4,841

1,928

6,769

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Nonconsolidated Statements of Cash Flows(¥ million)

FY2013(ended Mar. 31,
2013㻕㻌

FY2014(ended Mar. 31,
2014㻕㻌

FY2015(ended Mar. 31,2015㻕㻌

Ϩ㻌 Cash Flows from Operating Activities(1,020)667567

ϩ㻌 Cash Flows from Investing Activities

875

(119)

(334)

Ϫ㻌 Cash Flows from Financing Activities

56(32)(36)

IV㻌 Net Increase (Decrease) in Cash and Cash Equivalents

(89)

514

196

V Cash and Cash Equivalents at Beginning of Period

2,484

2,395

2,910

VI㻌 Cash and Cash Equivalents at End of Period

2,395

2,910

3,106

Item

Ϩ Cash Flows from Operating Activitiesϩ Cash Flows from Investing Activities

Ϫ Cash Flows from Financing Activities

Net cash provided by operating activitieswas ¥567 million. The main factors were¥908 million of income before incometaxes, which offset ¥526 million of income
tax paid.

Net cash used in investing activities was¥334 million. The main factors were ¥160
million in purchase of intangible assets,¥79 million in purchase of property, plantand equipment and ¥49 million increase intime deposits.

Net cash used in financing activities was¥36 million. The main factors included¥1,425 million in repayment of long-termloans payable and ¥144 million inredemption of bonds, which offset ¥982
million in proceeds from issuance of bondsand ¥750 million in proceeds from longterm loans payable.ϭ Cash and Cash Equivalents at End of Period

As a result, cash and cash equivalents at year-end increased ¥196 million from beginning of period to ¥3,106 million.
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Management Target: Improvement Cash Flows
Interest-bearing debt

Balance of cash and deposit(¥ billion)

7.0
6.0
5.0
4.2 billion

4.0

3.4 billion
1.5 billion

3.1 billion

3.0

0.9 billion

1.0 billion

2.0 billion
2.2 billion

1.0 billion1.6 billion 1.2 billion

2.0
1.00.0Mar. 2005 Mar. 2006 Mar. 2007 Mar. 2008 Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015

Improved ¥3.3 billion in ten years
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II. Management strategies andprojections for Fiscal 201614

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Fiscal 2016 Projections
Year ended March(¥ million )2015Results㻌
Net SalesYear ending
March 2016
ProjectionsYear-on-yearchange15,081

15,300219

Operating Income

940

950

10

Ordinary Income

89792023Net Income

5926008In order to further secure anticipated business opportunities, the Company plans to make investments in hiring and enhancing
capabilities of engineers, etc., with an eye on business expansions in the next few years.
㻌 (1) Infrastructure-related business that commands ample demand → Enhance engineer capabilities㻌 (2) Operations support business that leads to accumulation of know-how → Expand market share㻌 (3) Business applications㻌 → Expand covered domains by endeavoring on technological expertise(4) Support for business bases → Expand businesses in the Nagoya area through coordination of engineers in Osaka and Nagoya

Year ended March2015(¥)Results㻌
Cash Dividends per Share

25.00

Year endingMarch 2016
Projections

Payout
Ratio

25.00

28.8%

Cash dividend for fiscal year ended March 2015 (planned): ¥25 per share (¥10 for ordinary dividend and ¥15 for special dividend)
Cash dividend for fiscal year ended March 2016 (forecast): ¥25 per share
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