Financial Results Presentation for the Second
Quarter of the Fiscal Year Ending March 2021
(45th Business Year)

November 20, 2020

Focus Systems Corporation(Securities Code: 4662)© 2020 Focus Systems Corporation

Table of Contents

Financial Results for the Second Quarterof the Fiscal Year Ending March 2021 (45th Business Year)

P.3

Projections for the Fiscal Year Ending March 2021
(45th Business Year)

P.18

Supplementary Information: Current Topics

P.21

Supplementary Information: Company Outline

P.25

2© 2020 Focus Systems Corporation

Financial Results for the Second Quarterof the Fiscal Year Ending March 2021 (45th Business Year)© 2020 Focus Systems Corporation

3

Highlights
Financial Results
Outline❙ Sales and operating income exceeded those of the previous year while ordinary income and net income
remained around 99% the same as the same quarter of the previous year.
❙ In response to changes in market conditions, the impact on business performance was kept minor by curbing
SG&A expenses, etc.

Business Overview❙ The resilience of the public sector is driving overall performance due to steady progress in public medical
insurance-related business.
❙ Although there is a sense of market stagnation in the Nagoya area, some projects in the Tokyo metropolitan
and Osaka areas have been active. As we proceed with proposal-based sales to major customers, we can also
see the gradual recovery of civil projects.
❙ Looking ahead to the expansion of business opportunities, including utilizing advanced technologies such as
AI and the cloud. The development of joint research and entrusted projects will continue from the second halfof the year onward.
➢ “Started joint research into shortening examination times using AI for the first time in the field of brainrelated nuclear medicine”➢ "Entrusted with the development of a product safety support system that utilizes natural language
processing of AI"➢ "An industry first – Visualize group work discussions in real time –"❙ Our proposal-based sales capabilities were demonstrated in all businesses, and we have returned to a growthtrajectory.
4© 2020 Focus Systems Corporation

Overview(Unit: Million yen)

FY 03/2020

FY 03/2021

Year-on-yearchangeQ1
Results

Q2
Results

Q3
Results

Entirefinancial
year
Results

Net sales

5,298

10,951

16,402

22,703

5,407

11,234283

2.6%

Operatingincome

321

682

1,063

1,428

322

687

5

0.8%

Ordinary
income

336

707

1,088

1,467

328

699

(8)

(1.2%)Net
income

243

489

734

930

216

482

(7)

(1.3%)

Q1
Results

Q2
Results

AmountRatio❙ Amid the prolonged impact of COVID-19, sales increased year-on-year thanks largely to aspects such as our“proposal-based sales force that works with customers to meet their needs" – the source of our strong business foundation.
5© 2020 Focus Systems Corporation

Main indicators(Unit: Million yen)

Operating income

Net sales
Plan for Fiscal Year

5,827

22,800

11,234Progress rate

5,407

Q1

Q2

Progress rate

49.3% 102.6%

322

Q2 Total

Q1

940

Plan for Fiscal Year

Plan for Fiscal Year

687

365

Year-on-yearchangeNet income

1,430

Plan for Fiscal Year

Ordinary income

371

Year-on-yearchange328

Q2 Total

Q1

CHECK

699
Progress rate

48.1% 100.8%
Q2

1,430

Year-on-yearchange48.9% 98.8%
Q2

Q2 Total

Breaking through stagnant market conditions and returning overallbusiness performance to almost that of previous years. This term,“cultivating existing customers through proposals” drive growth.

❙ Amid the prolonged impact of COVID-19, sales increased dueto the good fight that was put up in Q2 following Q1.

482

266

Progress Rate

51.4% 98.7%

216

Q1

Year-on-year
ChangeQ2Q2 Total❙ While the public sector is driving a stable business foundation,
the market will be ready to switch from defensive to offensive
toward the second half of the year due to the gradual recovery ofmarket conditions and the acquisition of business negotiation
opportunities.
6© 2020 Focus Systems Corporation

Reportable segment summary(Unit: Million yen)

Reportable segments
Total
Public sectorbusiness

Enterprisebusiness

Wide-ranging
solutionsInnovative
businesses(Note 1)

Quarterly
incomestatement
amountAdjustment
amount(Note 2)

Net sales

3,822

2,519

2,085

2,807

11,234-

11,234

Segment
income

663

261

272

242

1,440

(753)

687

Note 1: The adjustment amount of － 753,000,000 yen applied to segment income represents, for the most part,
general administrative expenses (company overheads) that are not attributable to reportable segments.
Note 2: Segment incomes are adjusted to the operating income stated in the quarterly income statement.

Segment income composition ratio

Net sales composition ratio

Public sector business

25.0%

16.8%
34.0%

Enterprise business
Wide-ranging solutions

18.9%

46.1%

18.6%
22.4%

Innovative businesses

18.2%
7

© 2020 Focus Systems Corporation

1. Segment Overview

Public sector

From the design and manufacture of social infrastructure-related systems,
whose end users are mainly government offices and local governments,
to post-system operation management and maintenance(Unit: Million yen)

(Unit: Million yen)

Net sales

4,000

3,822
3,421

Segment income

3,000

800
600

Quarteron-quarter

2,000

Quarteron-quarter

11.7％

1,000

24.9％

0
For the six months
ended March 31,
2020

For the six months
ending March 31,
2021

663
531

400
200
0
For the six months
For the six months
ended March 31, 2020 ending March 31,
2021❙ Despite a wave of development and operation phases, large-scale public medical
insurance projects amid a general steady progress of projects contributed significantly
to business performance, resulting in higher sales and profits.
❙ Looking to the next fiscal year and beyond, strategic organizational structures, such as
personnel adjustment and management systems across business divisions are being
strengthened.
8© 2020 Focus Systems Corporation

2. Segment Overview

Enterprise business

Mainly corporate company core business systems/online system development,
network/infrastructure design/construction, RPA solutions, related operation/maintenance,and ICT consulting(Unit: Million yen)

(Unit: Million yen)

Net sales

3,000

2,500

Quarteron-quarter

5.6％

Segment income

2,386

2,519

400

Quarteron-quarter

2,000

25.0％

1,500

500

349
261

300
200
100
0

1,000
For the six months
ended March 31,
2020

For the six months
ending March 31,
2021

For the six months
ended March 31, 2020

For the six months
ending March 31,
2021❙ In order to make up for the stagnation of development projects during the COVID-19 pandemic,
we are striving to secure sales by strengthening information and the cooperation of teams.
However, while sales have increased, profits have decreased due to an increase in expenses
associated with finding new projects for the second half of the year.
❙ We will work to grasp customers' needs for the next fiscal year onward, in fields such as
cloud computing. Preparations for the response proceeding.
9© 2020 Focus Systems Corporation

3. Segment Overview

Wide-ranging solutions

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

(Unit: Million yen)

(Unit: Million yen)

Net sales

Segment income

3,000

400

2,500

2,117

Quarteron-quarter

2,000

1.5％

1,500

500

2,085

Quarteron-quarter

300

3.4％

200

282

272

100
1,000

For the six months For the six months
ended March 31, ending March 31,
2020
2021

0
For the six months
For the six months
ended March 31, 2020 ending March 31, 2021

❙ While there is a sense of market stagnation in the Nagoya area, sales and profits havedeclined only slightly across the entire segment due to the success of proposal-based
sales centered on existing customers.
❙ So as not to miss the increasing demand in recent years for things such as “low-code
development," which helps streamline development and improve productivity,
preparations for human resource development are being advanced.

10© 2020 Focus Systems Corporation

4. Segment Overview

Mainly infrastructure design/construction, mainframe construction, system development,
related operation/maintenance, in-house product manufacturing, provision of IoT solutions.

Innovation(Unit: Million yen)

(Unit: Million yen)

Net sales

4,000

Quarteron-quarter

3,000

Segment income

3,026

2,807

400

Quarteron-quarter

2,000

7.2％

25.1％
1,000

500

300

323
242

200
100
0

0
For the six months
ended March 31,
2020

For the six months
ending March 31,
2021

For the six months
For the six months
ended March 31, 2020 ending March 31,
2021❙ While IT service projects progressed generally as planned, competition in some areas ofthe security field intensified.
In response to this, business strategies were reviewed and cost control was implemented.
However, both sales and profits decreased.
❙ Progress in business expansion with IBM Japan, one of our main clients, was made.
Deepen end users' business understanding and improvement proposals, and move frommaintaining to expanding the customer base in the second half of the year.
11© 2020 Focus Systems Corporation

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

Second Quarter of the Current
Fiscal Year

AssetsCurrent assets

9,835

10,288Non-current assets

5.526

7,343

Year-on-year increase of 2,270 million yen

Property, plant, and equipment

3,596

3,589

50

90

1,878

3,663

15,361

17,631Main reason for increase:・Increase in investment securities
・Increase in cash and deposits
・Increase in work-in-progress
Main reason for decrease:
・Reduction in accounts receivable

Current liabilities

4,829

4,884

Non-current liabilities

1,646

2,370

Total liabilities

6,475

7,254

Shareholders’ equity

8,487

8,683

Capital

2,905

2,905

Capital surplus

2,138

2,148

Retained earnings

3,803

3,985

Treasury shares

(359)

(354)

398

1,693

8,885

10,377

15,361

17,631Intangible assets
Investments and other assets

Total assets

1,866 million yen
1,245 million yen
99 million yen
852 million yen

Liabilities

Net assets

Valuation difference on
available-for-sale securities

Total net assets
Total liabilities and net assets© 2020 Focus Systems Corporation

Year-on-year increase of 779 million yen
Main reason for increase:・Increase in deferred tax liabilities
・Increase in long-term borrowings
・Increase in short-term borrowings
Main reason for decrease:・Decrease in corporate bonds
・Decrease in accounts payable-Other
・Decrease in accounts payable-trade

499 million yen
486 million yen
404 million yen
265 million yen
243 million yen
123 million yen

Increase of 1,492 million yen year-on-year
Main reason for increase:・Increase in valuation difference
on available-for-sale securities
・Increase in retained earnings

1,295 million yen
182 million yen

12Net income increase/decrease analysis❙ Mainly striving to curb SG&A expenses, etc., the impact on net income was negligible.

(Unit: Million yen)

+51

▲7

+4
▲14
(Negative
factor)Gross profit
decrease

489▲46

Previous second quarter
net income(Positive factor)
Reduction ofsales andgeneraladministrative
expensesdecrease(Negative factor)
Non-operating
incomeandnon-operating
expenseincrease/decrease▲2(Negative factor) (Positive factor)
Extraordinary
Income tax
incomedecreaseandextraordinary loss
increase/decrease

482

Current second quarter
net income13© 2020 Focus Systems Corporation

Cash Flow (C/F)(Unit: Million yen)
Cumulative
first half ofthe previous
fiscal year

Cash flow from sales activities

488

Cumulative
first half ofthe current
fiscal year

931

Receipts of 931 million yen
Main income:・Decrease in trade receivables
・Quarterly profit before
income taxes Main payments:
・Income taxes paid
・Decrease in accounts payable- Other
・Decrease in trade receivables

876 million yen
727 million yen
298 million yen
223 million yen
123 million yen

Payments of 88 million yen

Cash flow from investing activities

(298)

(88)

Cash flow from financing activities

(175)

399

Net increase in cash and cash
equivalents

Main income:・Income from cancellation of
65 million yen
insurance reserve funds
Main payments:
・Expenditure on acquisitions
64 million yenof property, plant and equipment
・Expenditure on acquisition
58 million yen
of intangible assets

Receipts of 399 million yen

14

1,242

Cash and cash equivalents at
beginning of period

4,778

4,062

Cash and cash equivalents at theend of the period

4,792

5,304

Main income:・Proceeds from long-termborrowings
・Net increase in short-term
Borrowings Main payments:
・Redemption of bonds
・Dividends paid
・Repayments of long-termborrowings

900 million yen
404 million yen
345 million yen
299 million yen
260 million yen

Increase of 512 million yen year-on-year14© 2020 Focus Systems Corporation

Changes in share price and dividends
1,000 yen

800 yen

4/3
Lowestprice

9/25
Highestprice

615 yen

1,064 yen
600 yen(Closing price standard)

April

May

4/7 Release

IoT

June

July

7/30 ReleaseAI

5/25 Release

AugustSeptember
AI

First in the field of brain-related nuclear medicine

Concluded a partner programwith an IoT gateway manufacturer

Started developing AI analysis
software for coronary artery imaging▶ Strengthening marketing▶ Strengthening support systems▶ Expanding sales▶ AI image recognition▶ Examination of treatment policy▶ Help elucidate pathological mechanisms

FY 03/2019
Net income per share▶ Joint research with the Department of Radiology,
Yokohama City University School of Medicine▶ Aim for about one fifth the examination times▶ Reducing the burden on patients and improving
examination efficiency

Projections for FY
03/2021

FY 03/2020

58.11 yen

61.83 yen

20.00 yen(including a 5.00 yen dividend
for celebrating the new era)

20.00 yen

15.00 yen

20.00 yen

20.00 yen

34.4％

40.4％

32.0％

Results/Projections

Annualper-share
dividend- started joint research
into using AI to shorten examination times.

25.00 yen

62.43 yen

Initial plan

Payout ratio15© 2020 Focus Systems Corporation

Shareholder Composition and Number of Shares Owned❙ Total number of shareholders at the end of September 2020: 7,471 (up 226 from the end of March 2020)❙ The number of shares individual shareholders and foreign shareholders hold has decreased while thenumber of shares of securities companies and investment trusts has increased.

(Number of shares)

Two-for-one stock
split

16,000,000

Assigned to Tokyo
Stock Exchange,
First Section

Shareholder
benefitimplementation

Disposal oftreasury stock astransferrestricted stockcompensation

Share
acquisitionrightsissued(Number of
persons)

8,000

14,000,000

7,000

12,000,000

6,000
Assigned toTokyo Stock
Exchange,
Second Section

10,000,000
8,000,000

5,000
4,000

6,000,000

3,000

4,000,000

2,000

2,000,000

1,000

0

0
'11/3

'12/3

'13/3

'14/3

Individuals & others
Other domestic corporations
Securities firms
Number of shareholders© 2020 Focus Systems Corporation

'15/3

'16/3

'17/3

'18/3

'19/3

'20/3

'20/9

Financial institutions
Foreign corporations & individuals
Central government & local governments

16

Changes in the Number of Employees & Turnover Rate
❙ The number of employees increased steadily due to “strengthening recruitment” and being an“attractive of company.” While the mobility of IT human resources is increasing, a turnover rate thatis lower than the industry standard will be maintained by enhancing organizational management andsupport systems, and training systems.
(Number of persons)

(%)

1,300

20
18

1,200

16
1,100
14
1,000

12

900

10

8

800

6
700
4
600

2

500

0
2009

2010

2011
従業員数
Number of

employees

2012

2013

2014

2015

Turnover of the
当社離職率
Company

2016

2017

2018

2019

業界離職率
Industry-wide turnover*The industry turnover rate has been excerpted from the "Survey on Employment Trends" (Ministry of Health, Labor and Welfare)*Our turnover rate is based on the fiscal year, and the industry turnover rate is based on the year.
© 2020 Focus Systems Corporation17

Projections for the Fiscal Year Ending March 2021
(45th Business Year)© 2020 Focus Systems Corporation18

Projections — Fiscal Year Ending March 2021
(45th Business Year)❙ Given the prolonged impact of the COVID-19 pandemic,
we expect to achieve net sales and profits equivalent to those of the fiscal year ended March 2020.
❙ For dividends, we expect to maintain 20.00 yen per share on common stocks paid during the fiscal year ended March 2020.

Results of Fiscal
Year Ended March
2020

Projections for
Fiscal Year Ending
March 2021

Y-o-Y Change(%)(million yen)(million yen)

Net sales

22,70322,8000.4

Operating income

1,428

1,430

0.1

Ordinary income

1,467

1,430

(2.6)

930

940

1.0

Net income

Results of Fiscal Year Ended
March 2020

Projections for Fiscal YearEnding March 2021

61.83

62.43

Dividend per share (yen)

20.00+ Reiwa commemorative dividend 5.00
25.00

20.00

Dividend payout ratio (%)

40.4

32.0

Net income per share (yen)Ordinary dividend19© 2020 Focus Systems Corporation

Changes in Non-consolidated Financial Results(Full Year)
Fiscal year, ended March
Net sales (million yen)

FY 03/2016

FY 03/2017

FY 03/2018

FY 03/2019

FY 03/2020*2*2

16,482

17,846

19,32721,45322,703Operating income (million yen)

953

743

1,025

1,368

1,428

Ordinary income (million yen)

950

731

1,019

1,375

1,467

Net income (million yen)

738

551

719

874

930

2,905

2,905

2,905

2,905

2,905

16,292

16,292

16,292

16,292

16,292

Net assets (million yen)

7,415

7,258

9,201

9,106

8,885

Total assets (million yen)

14,936

14,567

16,82015,991

15,361

Net assets per share (yen) *1

535.58524.24611.34605.04590.56

Dividend per share (yen) *1

16.00

12.50

16.00

20.00

25.00

Net income per share (yen) *1

53.36

39.83

51.21

58.11

61.83

Equity ratio (%)

49.6

49.8

54.7

56.9

57.8

Return on equity (%)

10.4

7.5

8.7

9.6

10.3

Payout ratio (%)

30.0

31.4

31.2

34.4

40.4

Number of employees

1,024

1,073

1,116

1,161

1,203

Stock price – high (yen) *1

888

634

1,350

1,153

1,085

Stock price – low (yen) *1

340

412

503

774

583

Capital (million yen)
Total number of shares issued andoutstanding (thousand shares) *1

Note 1: Values calculated after the two-for-one common stock split instituted on October 1, 2015.
Note 2: "Total assets (in thousand yen)" and "Equity ratio (%)" have been restated to apply for the Partially Revised Tax Effect Accounting Standard(Business Accounting Standard No. 28 of February 16, 2018), etc.

20
© 2020 Focus Systems Corporation

Supplementary Information: Current Topics© 2020 Focus Systems Corporation

21

Topics (1)

2020
4/7

Join IoT Sensor and Device Partnership Program with IoT Gateway
Manufacturer Plat’Home✓ We have extensive experience in providing indoor location tracking systems for goods andpersonnel using our compact FCS1301 and timbe BLE beacons that have excellent portability.
✓ We aim to boost installation numbers of our BLE beacons by strengthening our marketing,sales and support systems.

2020
5/25

Development Work Launched on AI Analysis of Coronary Artery
Imaging for Ischemic Heart Disease✓ With Professor Shinke of Showa University School of Medicine's Division of Cardiology
and Micron, Inc., we began research on coronary artery imaging software that utilizes AI
image analysis to examine inside coronary arteries in cases of ischemic heart disease.
✓ Going forward, AI image analysis is expected to be adopted on a wider scale, not only forischemic heart disease but also for many other diseases.
✓ The goal is for the software to be put to use on-site in the medical field in 2021.
22© 2020 Focus Systems Corporation

Topics (2)

2020
7/30

Alongside Yokohama City University, we aim to cut examination
times to one-fifth by generating AI images for the first time in thefield of brain-related nuclear medicine.
✓ Scanning in radiation-based examinations, which normally takes 30 to 45 minutes,
takes 5 minutes. AI then generates an image with the same diagnostic accuracy as
usual.
✓ In addition to reducing the burden on patients, this is expected to have many benefits,
including improving the work and examination efficiency of medical staff, and making
more effective use of the expensive equipment.

2020
10/20

Entrusted with the development of a product safety support
system that utilizes natural language processing of AI✓ Reduce the burden on staff involved in the management and analysis of a huge amount ofaccident data at the National Institute of Technology and Evaluation's Product Safety Center,and streamline operations.

✓ Utilize the AI natural language processing know-how we have accumulated throughendeavors such as the "Research into Teacher Data Generation Systems (2019)" and"Introduction of Software Developed to Create Q&A Data From Inquiry Responses (2020)."23© 2020 Focus Systems Corporation

Topics (3)

2020
10/23

Revolutionizing Online Communication
An industry first –Visualize group work discussions in real time–✓ Begun joint research with Hylable Inc. "Hylable," the core system of our joint research, features astandard function that displays group work discussions via texts and graphs.
We will add functions that enable the state of group work to be grasped in real time through features such as"visualization of discussions, generation of subtitles, notifications, integrated display of aggregated data".
✓ Instructors in remote areas will be brought closer to online class participants, improving user
satisfaction and the quality of education and training programs.
✓ The core system took home the "Minister of Health, Labor and Welfare's Japan e-Learning Award," which hasprovided momentum for our joint research.
The intellectual property rights generated by the results of this research will be shared andused by Focus Systems and Hylable.

24© 2020 Focus Systems Corporation

Supplementary Information:
Company Outline© 2020 Focus Systems Corporation25

Corporate Data

Line of business

Computer system consulting and entrusted development
System maintenance/operation management, technical support
Development and sales of information security related technologies and products
Software package development and sales
Planning and production of web content, etc.
Other various computer-related businesses

Head office

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

Business offices

Tokyo, Osaka, Nagoya

Capital2,900 million yen

Exchange listings

Tokyo Stock Exchange, First Section (Securities Code: 4662)

Employees

1,203 (as of March 31, 2020)

Established 1977.

Focus Systems Corporation established for the purpose of software development

1978.

Commenced business with Oki Electric Industry Co., Ltd., and initiated software development work on electronic switchboard

1988.

Commenced business with Nippon Telegraph and Telephone Corporation (now NTT DATA Corporation) and began providing services for thedevelopment of systems for government and other public agencies

1996.

OTC share registration with the Japan Securities Dealers Association (now Tokyo Stock Exchange JASDAQ Standard)

1997.

Commenced business with IBM Japan, Ltd. and began system operation/maintenance and infrastructure technology support business

1999.

Commenced information security business

2004.

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

2015.

Exchange listing changed to Tokyo Stock Exchange, Second Section

2016.

Listing designation changed to Tokyo Stock Exchange, First Section

26© 2020 Focus Systems Corporation

Operations

Triple FOCUS

1st FOCUS

2nd FOCUS

3rd FOCUS

SystemIntegration

IT Services

Information Security

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

Focus Systems designs andbuilds infrastructure andprovides technical andoperational support toenhance system availability
and reliability.

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

27© 2020 Focus Systems Corporation

The Flow of Transactions

Customers(government agencies, local governments, private sector companies)
New business start up
Selection and mastery of new technologies
Profit margin improvements through direct contracting

Major SI firms

Development

Long term
Robust cooperative frameworks

Stable baseBusiness partners
28© 2020 Focus Systems Corporation

Business Fields

29© 2020 Focus Systems Corporation

Affiliated companies
Customers

Focus Systems Corporation

Inos Co. Ltd.
Head office: Kumamoto City, Kumamoto Prefecture
Business lines: Software development
1. Business applications
2. Web applications
3. Group ware
4. Industrial control
5. Software package products(Inos is in charge of C4 Backup/400
development.)

VRaiB Inc.
Head office: Tokyo, Chuo WardBusiness lines: Software development
1. VR and AI applications
2. Blockchain
3. Information security
4. Intellectual property rights

Affiliated company (as of September 2020)
Company nameSales
(thousand yen)

Equity (%)

Ordinary income(thousand yen)

Net income(thousand yen)

Inos Co. Ltd.

20.0

631,831

48,03337,328

VRaiB Inc.

20.0

6,206

(1,698)301
30© 2020 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 2020 (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･･･ To mitigate poor lifestyle habits and to prevent obesity, we sponsor
seminars dedicated to specific topics such as improving dietsand preventing and improving sleep apnea syndrome.
Includes initiatives such as "Start
Walking Today!"and "Lifestyle Improvement
Seminars."

31© 2020 Focus Systems Corporation

Work Style Reform (1)Work–Life Balance
Systems for shortened working days or reduced working hours･･･ Systems for helping employees balance work duties with childcare or eldercare. 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 grade in elementary school or until theyno longer are required to do nursing care. *A combination of these systems and the flextime system is also possible.
Usage percentage of shortened working days/reduced
working hours after childcare leave

Percentage of employees who return
to work after child care leave.

100％
100％

83.3％
66.7％(including men)

Kurumin (child-rearing support) certified*As of March 31, 2020

"Job Return" system (re-employment system)･･･ Re-employment is possible within 10 years of resignation due to a life event(marriage, childbirth, or child rearing) or for career advancement (overseas study or change of employer).
Flextime system･･･ helps employees work based on their lifestyles© 2020 Focus Systems Corporation

32

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 to the next page for "Transition of
actual response 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 forpeople withdisabilities

https://magazine.focus-s.com/category/news/pwd_pr /Information Exchange for Female Employees･ ･ ･ This initiative provides career planning support for young women bycommunicating work styles and the like.

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.
33© 2020 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 so that a large number of
persons with disabilities could find sustained work.
✓ We provided employees with internal training programs that help deepen their understanding of working with persons
with disabilities, and strengthened systems that embrace them.
(Number of persons)

1,300

Meets thelegallyrequirednumber1,200(Number counted
based on rules)

Above thelegallyrequirednumber

30
28

26
1,100
24
1,000

22

900

20
18

800

16
700
14
600

12

500

10
'17/3
Number of employees

'18/3

'19/3

Legally required number based on rules'20/3
Actual number based on rules34© 2020 Focus Systems Corporation

Company Mascot

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

35© 2020 Focus Systems Corporation

Focus Systems sincerely requests
the continued guidance and supportof all stakeholders.

This document is based on information available as of November 13, 2020, and on assumptions as ofthe same 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.

36© 2020 Focus Systems Corporation