Fiscal Year Ended March 2022 (46th Business Year)

Financial Results Presentation

May 24, 2022

Focus Systems Corporation(Securities Code: 4662)© 2022 Focus Systems Corporation

Table of Contents

Financial Results for the Fiscal Year Ended March2022 (46th Business Year) p.3
Projections for the Fiscal Year Ending March 2023
(47th Business Year) p.18
Supplementary Information: Current Topics p.21
Supplementary Information: Company Outline p.26

2
© 2022 Focus Systems Corporation

Financial Results for the Fiscal Year
Ended March 2022
(46th Business Year)3© 2022 Focus Systems Corporation

Overview
Both net sales and profits exceeded the previous year results and projections❙ New projects increased profit margins❙ Large deals drove growth❙ Well-undertaken project management minimized risk and supported overall growth(Unit: Million yen)

FY2021Results

FY2022Plan

FY2022
Results

Changes from theprevious fiscal year

Changes from thePlan

AmountChangeRatio

AmountChangeRatio

Net sales

23,48524,50026,278

2,792

11.9%

1,778

7.3%

Operatingincome

1,450

1,480

1,640

190

13.1%

160

10.8%

Ordinary
income

1,469

1,500

1,600

131

9.0%

100

6.7%

Net
income

1,025

1,030

1,066

41

4.0%

36

3.65%
4

© 2022 Focus Systems Corporation

Changes in Net Sales

250

200

Sales have increased for the 11th
straight year

30

25

Net sales: Approx. 2.3-foldincrease

20

15

150

10

100

5

50

0

(5)

0

FY2011

FY20225© 2022 Focus Systems Corporation

Changes in Profits

Profits have increased for the fifth straight year
(Unit: Million yen)

Operating income (Unit: Million yen) Ordinary income
1.64

1,800

billion yen(Unit: Million yen)

1.6

1,800

billion yen

billion yen

1,600

1,400

1,400

1,200

1,200

1,000

1,000

800

800

600

600

400

400 140200 million yen

200

200

180
million yen

1,000
800
600

0

0

1.06

1,200

1,600

400

Net income

80
million yen

0

Approx. 9-fold increase

Approx. 11-fold increase

Approx. 12-fold increase(compared to FY2011)(compared to FY2011)(compared to FY2011)6© 2022 Focus Systems Corporation

Segment Information Summary

Sales: +2,792 million yen (YoY) Profit: +382 million yen (YoY)
Segment composition: Both sales and profits rose 1 point in Enterprise and 2 points in Innovation

COMPOSITION RATIO OF SALES BY SEGMENT
FY2021

FY2022

32%

24%

-3Pt

+1Pt

29%

19%

25%

(Unit: Million yen)

23,485

+2Pt

25%

19%

27%

26,278COMPOSITION RATIO OF INCOME BY SEGMENT
FY2021

FY2022

42%

22%

-3Pt

+1Pt

39%

23%

18%

18%

3,122
+2Pt

18%

20%

Public sector businessEnterprise business

Wide-ranging solutions

Innovative businesses

3,504

7
© 2022 Focus Systems Corporation

Segment Overview (1)Public sector

From the design and manufacture of social infrastructure-related systems, whose end users aremainly government offices and local governments, through to post-system operation
management and maintenance<Increase in sales and profits>
Factors such as new project acquisitions absorbed the reactionary decline inlarge projects and became a growth trend in the fourth quarter.
(Unit: Million yen)

Net sales

8,000

7,609

7,669

(Unit: Million yen)Segment income

6,000Year-on-yearchange4,000

Year-on-yearchange

0.8％

2,000

3.8％

1,500

1,325

1,374

1,000

500

0

0
FY2021

FY2022

FY2021

FY2022❙ Steady progress of existing projects contributed to support segment performance.
Examples: Electronic tax report system, Individual Number Card-related system, vehicle registration system, tradeand distribution system, government accounting system
8© 2022 Focus Systems Corporation

Segment Overview (2)Enterprise business

Mainly corporate company core business systems/online system development,
network/infrastructure design/construction, RPA solutions, related operation/maintenance, andICT consulting<Increase in sales and profits>
Accelerating growth of new and existing businesses with network infrastructure
and mission-critical business systems.
(Unit: Million yen)

Net sales

8,000
6,000

Year-on-yearchange18.5％(Unit: Million yen)

5,560

6,587

Segment income

1000
800

Year-on-yearchange

4,000

18.3％

2,000
0

679

803

600
400
200
0

FY2021

FY2022

FY2021

FY2022❙ There is a market shift to cloud computing and increased demand for cloud services. Increased
opportunities for orders through inter-division collaboration.
❙ RPA and the introduction of new security solutions also contributed to business expansion.
9© 2022 Focus Systems Corporation

Segment Overview (3)Wide-ranging solutions

Communication control system development, embedded system development, systemdevelopment for private companies and government agencies, AI solutions, related
operation/maintenance, and ICT consulting, mainly in the Tokyo, Nagoya, and Osaka
areas.

<Increase in sales and profits>
In existing sectors, project management business maintained stable growth.
Successful new projects acquisition.
(Unit: Million yen)

Net sales

8,000
6,000

Year-on-yearchange10.5％(Unit: Million yen)Segment income

4,500

1000
800

4,970

4,000

Year-on-yearchange

2,000

10.8％

600

562

622

400
200
0

0
FY2021

FY2022

FY2021

FY2022❙ New projects won primarily in Tokyo and Osaka contributed to performance.
❙ Projects including low-code development projects were actively incorporated in the overall businesssegment to expand business opportunities.
10© 2022 Focus Systems Corporation

Segment Overview (4)Innovation

Mainly infrastructure design/construction, mainframe construction, system development,
related operation/maintenance, in-house product manufacturing, provision of IoT solutions<Increase in sales and profits>
Infrastructure design and construction supported maintaining steady growth.
New large-scale projects also helped accelerate growth.
(Unit: Million yen)

Net sales

8,000
6,000

Year-on-yearchange21.2％(Unit: Million yen)

7,050

Segment income

5,814

1000

702

800
Year-on-yearchange

4,000

26.6％

2,000

600

555

400
200
0

0
FY2021

FY2022

FY2021

FY2022❙ Focus on maximizing business opportunities and further strengthening the business foundation by adapting
to customers' corporate spin-offs.
❙ Strong sales of in-house encryption products and other information security-related products contributed to
growth.
11© 2022 Focus Systems Corporation

Balance Sheets (B/S)(Unit: Million yen)Previous Fiscal Year

Fiscal Year Ended
March 2022

AssetsYear-on-year increase of 5,564 million yen

Current assets

9,812

10,869Non-current assets

7,995

12,503

Property, plant, andequipment

3,505

3,510

Intangible assets

145

155

Investments and otherassets

4,344

8,836

Total assets

17,80823,372Current liabilities

4,571

5,277

Non-current liabilities

2,172

3,330

Total liabilities

6,744

8,608

Shareholders’ equity

9,225

9,869

Capital

2,905

2,905

Capital surplus

2,148

2,158

Retained earnings

4,527

5,156

Treasury shares

△354

△350

Valuation difference on
available-for-sale securities

1,837

4,894

Total net assets

11,063

14,764

Total liabilities and net
assets17,80823,372

Liabilities

Net assets© 2022 Focus Systems Corporation

Main reasons for increase:・Increase in investment securities 4,439 million yen
・Increase in accounts receivable and contract assets
613 million yen

Year-on-year increase of 1,863 million yen
Main reasons for increase:・Increase in deferred tax liabilities 1,298 million yen
・332 million yen increase in accounts payable - trade
・Increase in long-term debt 219 million yen
Main reasons for decrease:・Decrease in corporate bonds 360 million yen
・Decrease in current portion of corporate bonds 150
million yen
Year-on-year increase of 3,700 million yen
Main reasons for increase:・Increase in valuation difference on available-for-salesecurities 3,056 million yen
・Increase in retained earnings brought forward 629
million yen
12Net Income Increase/Decrease Analysis

Ordinary income and net income were also up 9% and 4% YoY, respectively(Unit: Million yen)・Increase in commissions paid, etc.

+385
Increase ingross margin▲195
Increase in
selling,
general andadministrative
expenses▲59▲19

Changes in nonoperating
income/expenditure

Changes inextraordinary
income and losses▲71
Increasedby 41

Increase/decrease
in income taxes

1,025

1,066

Net income inprevious fiscal year

Net income in fiscal year
ended March 2022
13

© 2022 Focus Systems Corporation

Cash Flow (C/F)

Continued stable management with steady progress in sales activities,
capital investment, and repayment
・Increase in net income
・Increase in trade payable+1,249・Acquisition of property,
plant and equipment
・Repayments of long-termborrowings
・Repayments of bonds

▲277
▲591

(Unit: Million yen)

Increasedby 381

3,971
Cash and cash
equivalents at the
beginning of the period© 2022 Focus Systems Corporation

4,352
Sales
C/F

Investment
C/F

Financial
C/F

Cash and cash
equivalents at theend of the period

14

Shareholder Composition and Number of Shares Owned❙ Total number of shareholders on March 31, 2022: 8,465 (up 486 from March 31, 2021)❙ While the number of shares held by financial institutions and securities firms decreased,
the number of shares held by individuals and foreign investors increased.
Two-for-one stock
split(Number of shares)

Listing changed
to Tokyo Stock
Exchange, First
Section

16,000,000
14,000,000

Introduced ashareholder
benefitprogram

Exercise ofshareacquisitionrights(Number of persons)

9,000
8,000
7,000

12,000,000

6,000

10,000,000

Listing changed toTokyo Stock
Exchange, Second
Section8,000,000

5,000
4,000

6,000,000

3,000

4,000,000

2,000

2,000,000

1,000

0

0
'13/3

'14/3

'15/3

'16/3

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3

Individuals & others

Financial institutions

Other domestic corporations

Foreign corporations & individuals

Securities firms

Central government & local governments

Number of shareholders

15© 2022 Focus Systems Corporation

Composition Ratio of Net Sales by Major Customer Group✓ Positive partnerships with IBM Japan and Kyndryl Japan continued after the spin-off of IBM Japan✓ Growth trends in both new and existing clients continued despite changes in sales order

NTT DATA Group

Others33.72%

36.28%

Total

26,278Customers

FY2022
Net sales(Millions of yen)

NTT DATA Group8,860

IBM Japan Group

3,278

Related to Kyndryl Japan

2,678(million yen)
Oki ElectricIndustry Group

3.60%
IBM Japan Group

12.48%TIS INTEC Group

3.73%

TIS INTEC Group981

Oki Electric Industry Group

945

Others

9,533

Total

26,278

Kyndryl Japan10.19%

16© 2022 Focus Systems Corporation

Changes in the Number of Employees & Turnover Rate
❙ Strengthen measures to increase awareness of the Company's draws, including improved
information disclosure to both new graduates and mid-career job seekers❙ Reduction of post-employment placement mismatches has led to a steady decline in turnover(%)(Number of persons)

1,400

Turnover
rate

20

1,300

5.4％

18
16

1,200

14

1,100

12

1,000

10
900

8

800

6

700

4

600

2

500

0
2010

2011

2012

2013

2014

Number of employees

2015

2016

Company turnover

2017

2018

2019

2020

2021

Industry-wide turnover*The industry turnover rate has been excerpted from the "Survey on Employment Trends" (Ministry of Health, Labour and Welfare).
*Our turnover rate is based on the fiscal year, while the industry turnover rate is based on the calendar year.

17© 2022 Focus Systems Corporation

Projections for the Fiscal Year Ending March 2023
(47th Business Year)© 2022 Focus Systems Corporation18

Projections — Fiscal Year Ending March 2023 (47th Business Year)❙ Continued record high sales and profits.
❙ Plans to increase dividends by ¥3 and pay dividends of ¥30.00/share in FY2023.
FY2022 results

FY2023 projections

Year-on-yearchange(million yen)(million yen)

Net sales

26,27827,500

4.6

Operating income

1,640

1,800

9.7

Ordinary income

1,600

1,820

13.7

Net income

1,066

1,220

14.4

FY2022 results(%)

FY2023 projections
70.76

80.91

Dividend per share (yen)27.00(Breakdown) Interim dividend 5.00
Ordinary dividend 20.00
Special dividend 2.00

30.00
(Breakdown) Interim dividend
5.00
Year-end dividend 25.00

Dividend payout ratio (%)

38.2

37.1

Net income per share (yen)19© 2022 Focus Systems Corporation

Focus Systems sincerely
requests the continued guidanceand support of all stakeholders.

This document is based on information available as of May 13, 2022, and on assumptions as of thesame date concerning uncertain factors affecting future financial results.
Actual financial results may materially differ from projections due to various factors in the future.
Consequently, Focus Systems Corporation does not guarantee any certainty.
20© 2022 Focus Systems Corporation

Supplementary Information:
Current Topics© 2022 Focus Systems Corporation

21

Topics (1)Shareholder
Information

Products &Services

Notice of revision to dividend forecast for the fiscal year ended March 31, 2022
(46th business year) (commemorative dividend for transfer to Prime Market)
Rare synergy of “evolutionary cognitive science, acoustic environmental analysis & technology" tocontribute to biodiversity conservation
Development begins on "Dormi-Tori," a bird communication measurement and analysis system

Products &Services

Human Holdings adopts cloud offering "RISE with SAP"

Shareholder
Information

Notice regarding joining the JPX's "Electronic Voting Platform"

Products &Services

WARP Partnership Agreement with WingArc1st
Now offering SVF, SPA, Dr. Sum, and Motion Board— Strengthening support for DX promotion and compliance with the Electronic Books Preservation Act,
both indispensable for companies —Products &Services

Facilitating data utilization with "ASTERIA Warp," a data collaboration tool with top market sharein Japan— Bringing together independent in-house data for big data utilization —Products &Services

Focus Systems becomes an educational supporter of Tokyo Women's College of Physical
Education Rhythmic Gymnastics Team
Supporting the activities of the Tokyo Women's College of Physical Education Rhythmic
Gymnastics Team through their own media© 2022 Focus Systems Corporation

22

Topics (2)Products &Services

Hylable, Focus Systems and Leave a Nest collaboratively launch "Project Dolittle"— A step toward transforming communication with diverse animals —Products &Services

Supporting small and medium-sized forwarders with structural IT reform in the trade & logistics industry
Our trade SaaS product developed in-house "Beyond TheBook" is officially now on sale
— A cloud-based case management service that connects forwarders and shippers —Our products

Products &Services

Expanded security in the new normal to meet the changing business landscape
Focus Systems signed a partnership agreement with Palo Alto Networks— Beginning on the path to becoming a value-added reseller offering a wide range of products —Products &Services

Development of a new AI-based nuclear medicine method for brain examinations— Reducing radiation exposure and creating a safe and highly accurate medical environment —Products &Services

Focus Systems Corporation aims to enhance the value of all Japan university women's football through sponsorshipTransforming the JUWFA's official media through IT support— Encompassing the fostering of business creativity and the ability to get things done, developing students' own selfsupport cycles —Products &Services

Borderless communication with the hearing impaired— UniTalker, an application developed to visualize conversations and support the hearing impaired —23© 2022 Focus Systems Corporation

Topics (3)Products &Services

Developing X-ray care units for the initial diagnosis of Covid-19 positive patients outside medical
facilities— Setting up infection-protection spaces and online treatment facilities —Products &Services

Moving forward with research development of “tertiary batteries” for the future of "battery-free IoT devices"— A patent application and verification tests of a next-generation power supply bringing us closer to a carbonneutral society —Products &Services

Focus Systems Corporation has signed a distribution agreement with Terilogy Works Co., Ltd., asubsidiary of Terilogy Co., Ltd., for the threat hunting product “ThreatSonar”— Solving business challenges and covering the shortage of high-level security personnel —Products &Services"Directional receivers" that enable more accurate positioning enter the market— Uses phased array antenna and even supports Bluetooth 4.x —Our products

Products &Services

Operational achievements resulted in expanded sales even amid the pandemic. Focus Systems
received "intra-mart Award 2021" for sales performance!

Shareholder
Information

Notice of Metis. Co. Ltd. becoming an affiliate through the equity method

Products &Services

Focus Systems signs business partnership agreement with Osaka Prefecture— Participates in the Osaka Prefecture DX Promotion Partners program supporting the digitaltransformation of small and medium-sized businesses —24© 2022 Focus Systems Corporation

Topics (4)"Initiatives for the Future"
Showcasing our efforts to engage with broader fields through technology on our website

Medicaltreatment

Joint research with the Department of Plastic and Reconstructive Surgery, Tottori
University Hospital

AI for Determining the Progression of Decubitus Ulcers(Bedsores)
AI-based system that helps anyone to easily determine the progression of decubitus
ulcers in patients

Medicaltreatment

Joint research with Chiba University Hospital

Remote Mentoring System Using HoloLens2
Utilizing HoloLens2® (MR equipment) to enable real-time, on-site information sharing.
Remote mentoring system for angiography25© 2022 Focus Systems Corporation

Supplementary Information:
Company Outline© 2022 Focus Systems Corporation

26

Corporate Data
Line of business

System consulting
Contracted development, maintenance and operation, and technical support information
Development and sales of security related technologies and products

Head office

2-7-8 Higashi Gotanda, Focus Gotanda Bldg., Shinagawa-ku, Tokyo

Business offices

Tokyo, Osaka, Nagoya

Capital

2.9 billion yen

Exchange listings

Tokyo Stock Exchange Prime Market (Securities Code: 4662)

Employees

1,265 (as of March 31, 2022)

1977

Focus Systems Corporation established for the purpose of software development

1978

Starts doing business with Oki Electric Industry Co., Ltd., and initiates software development work onelectronic switchboards

1988

Starts doing business with Nippon Telegraph and Telephone Corporation (now NTT DATA Corporation)and begins providing services for the development of systems for government and other public agencies

1996

OTC share registration with the Japan Securities Dealers Association

1997

Commences business with IBM Japan, Ltd. and begins system operation/maintenance and infrastructuretechnology support business

1999

Starts information security business

2004

Starts selling products for digital forensics, a new field of information security

2015

Listing changed to Tokyo Stock Exchange, Second Section

2016

Listing designation changed to Tokyo Stock Exchange, First Section

2022

Listing on Tokyo Stock Exchange Prime Market
27© 2022 Focus Systems Corporation

Business Fields

28© 2022 Focus Systems Corporation

Operations

Triple FOCUS

1st FOCUS

2nd FOCUS

3rd FOCUS

System Integration

IT Services

Information Security

When implementing
information systems, Focus
Systems carries out
everything from planning anddevelopment to operationaccording to the businesspurposes of the client.

Focus Systems designs
and builds infrastructure
and provides technicaland operational support
to enhance system
availability and reliability.

Focus Systems provides
customers with information
risk control throughinformation security
technologies such as
encryption, and digitalwatermarks.

29© 2022 Focus Systems Corporation

Positioning of the Company (1)❙ Focus Systems is an independent system integrator (SI)❙ Possesses consulting service capabilities required in the upstream processes as well as
technological capabilities required in the downstream processes

Secondarycontracts

Third and fourth-tiercontracts30© 2022 Focus Systems Corporation

Positioning of the Company (2)System integrator that has
no parent company

System integrator whoseparent company doesn’tmanufacture computers

System integrator whoseparent company
manufactures computers- Subsidiary company that

OutlineManagement and capitaldevelops information systems - Computer company

independence- Former systems department- Hardware company

of a trading/finance company

Strengths- Broad and free business fields- Cultivating their own assets- Utilization of their parent
company’s know-how- Stable business foundation- Utilization of their parent
company’s hardware- Solution proposals- Stable business foundation- All self-supporting management- Development of customers & BPs

Weaknesses - Accumulation of intellectual property- Strengthening of management base &- Limited areas of expertise- Narrow business domain

Bound by their parent company

finance31© 2022 Focus Systems Corporation

Transaction Flow

Customers (government agencies, local governments, private sector companies)
New business start-up

Major SI firms
Long term
Robust cooperative
frameworks

Development

Selection and mastery of
new technologies
Profit margin improvements
through direct contracting

Stable baseBusiness partners
32© 2022 Focus Systems Corporation

Health Management

We were selected by the Ministry of Economy, Trade and Industry and the Japan HealthCouncil as a company with good health management in their "Corporations with
Exceeding Health Management 2022 (large-scale corporate division)" certificate.
Support for club activities ･･･ We support the participation in club activities in order to promote employee
health. Currently around 150 employees are enrolled in 9 types of club
activities.

Health maintenance seminars ･･･ Thematic seminars such as mindfulness training for physical and mental
conditioning, and seminars on improving eating habits and preventing stiffshoulders and back pain.
Efforts to promote the understanding of
the "health risks of smoking" andmeasures to improve "mental health"have also been undertaken.

33© 2022 Focus Systems Corporation

Work Style Reform (1)Work–Life Balance

Systems for shortened working ･･･ Systems for helping employees balance work duties with childcare or eldercare.
days or reduced working hours
Employees can choose shortened working days (3 days a week) or reduced
working hours (choice of 5 hours or 6 hours per day).
*Employees are eligible for the systems until their children reach the third gradein elementary school or until they no longer are required to do nursing care.
*A combination of these systems and the flextime system is also possible.
Kurumin (child-rearing support) certified

Usage percentage of shortened
working days/reduced working hours
after childcare leave

Percentage of employees who
return to work after child care leave

100%
66.6％
33% (includingmen)* As of March 31, 2022

"Job Return" system･･･ Re-employment is possible within 10 years of resignation due to a life
(re-employment system)
event (marriage, childbirth, or child-rearing) or for career advancement(overseas study or change of employer).
Flextime system ･･･ This system helps employees work based on their lifestyles.
34© 2022 Focus Systems Corporation

Work Style Reform (2)Diversity
Occupational field creation･･･ In 2015, we began producing vegetables through hydroponics, aiming at creating
new fields of employment for persons with disabilities.
Currently, we are also promoting the development of clerical work areas. (Refer tothe next page for "Changes in Responses to the Employment Rate System for
Persons with Disabilities")
These initiatives are posted on our blog "Public Relations for Persons with
Disabilities (Focus NAVI)."
Focus NAVI
Public Relations for
Persons with
Disabilities

https://magazine.focus-s.com/category/news/pwd_pr/

Information exchange
for female employees･･･ Addressing young women, this meeting serves to communicate information on
work methods and support for career advancement.
Eruboshi (Female employee career promotion)
We are certified as an "Eruboshi" company for being an
outstanding company based on the Act on Promotion of
Women's Participation and Advancement in the Workplace.
35© 2022 Focus Systems Corporation

Changes in Responses to the Employment Rate System for
Persons with Disabilities❙ We created new fields of agricultural and office work, and improved work environments sothat a large number of persons with disabilities could find sustained work.
❙ We provided employees with internal training programs that help deepen their understandingof working with persons with disabilities, and strengthened systems that embrace them.
(Number of persons)(Number counted based on rules)

1,400

35

1,300
1,200

Meets the legallyrequired number

Above the legallyrequired number

30

1,100
25

1,000
900

20

800
700

15

600
10

500
'18/3
Number of employees

'19/3

'20/3

Legally required number based on rules

'21/3

'22/3

Actual number based on rules36© 2022 Focus Systems Corporation

Company Mascot
Mascot Character"Fukue-san"In order to feel closer to the Focus Systems and the worldof information systems, we use Fukue-san to send out
information about our business, employees and the future.

37© 2022 Focus Systems Corporation