TRANSLATION FOR REFERENCE ONLYFY2017Q3Consolidated Financial Results
Aplix Corporation
10th November 2017

Disclaimer: This English translation is for reference purposes only. In theevent of any discrepancy between the Japanese original and this English
translation, the Japanese original shall prevail. We assume noresponsibility for this translation or for direct, indirect or any other form ofdamage arising from the translation.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

1

FY2017Q3 P/L Statement（Consolidated）
Revenues

OperatingProfit

RecurringProfit

Net income
attributableto parentcompanyshareholders

FY16Q3
Actual (A)1,138-793-809-843

FY17Q3
Actual (B)518-278-292-804

Change（B－A）-620+515+517+39

Change（％）-54.5－－－(Million Yen)

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

2

FY2017Q3 Revenues by Segment
600

Mil. Yen（Million Yen）

500
400

FY16FY17Q3Q3

Change300

Technology

169

84-50.3%

200

Publishing229

0―39884-78.9%

100(Total Revenues)

0Q1

Q2

Q3

Q4Q1Q2

2016
Technology

Publishing2017493Q3

 Technology Division sales was broadly flat (vs. Q2FY17)
Radical sales improvement measure lead by new management resulted in major increase in revenue
vs. Q1FY17.
* Publishing business related Stock of Aplix IP Publishing, Flex Comix and HOLPSHUPPAN, Publishing has been all transferred on 31st Mar 2017.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

3

FY2017Q3 Operating Cost by Segment
Mil. Yen（Million Yen）

800
600
400
2000
Q1

Q2Technology
Q3

Q4
Publishing

Q1Q2

Q3

FY16

FY17Q3Q3ChangeTechnology267

98-63.3%

Publishing2330―Company

10162-38.6%(Total Cost)

601

161-73.2%

Company

Drastic operation cost reduction due to stock transfer of 3 publishing companies in Q2FY17.
Further cost reduction such as office rent space reduction and fixed cost reduction has also
executed.
Result: Operating Cost result YoY -73.2%.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

4

FY17Q3 Received Orders and Orders Backlog
300

Mil. Yen（Million Yen）

250
200
150
100
50

FY16FY17Q3Q3Change

Received Orders

211

258

22.3%Orders Backlog

2273231.8％

02016Q3Received Orders
2017Q3Orders Backlog

Increase in sales and backlog reflects successful closing of major software development projects
with corporates and SMEʼs.

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5

FY2017 Revised Down Part1（Million Yen)

Revenues

Operating
Profit

FY2017
Before Revised(A)

1,054

12

FY2017After Revised(B)602-390

Change (B－A)-452-402-42.9%－Change (％)＜Revised Down＞
 Delay in establishing new product development process.
 Delay in launching period of new products due to change and performance upgrade
requests from customers.
 Delay in disposing of underperforming businesses lead to delay in recreating effectiveorganization and processes.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

6

FY2017 Revised Down Part 21000Original Revs. Plan

Revised Down

Mil. Yen＋12-100-390-200-300-494-400-500+39+53
Technology Revs.

Human Cost

Other Cost

 Breakdown in Technology Revs.
•••

Domestic Corporate Customer: -199 Mil. Yen
Domestic SMEʼs: -162 Mil. Yen
Oversea Customer: -133 Mil. Yen

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

7Company VisionCopyright
Copyright©©20172017 Aplix
Aplixand/orand/orits
itsaffiliates.
affiliates.All
Allrights
rightsreserved.
reserved.

8

New Company Vision

CONNECTING THE UNCONNECTEDCompany Mission: To contribute CONNECTING (TSE 3727)
New business challenge to CONNECTING

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9

Next Target
3 strategies to archive new vision
1.
2.
3.

Service & App

Expanding our original service
Expanding sales channel
Expanding communication solution

1. Expanding original service

HARPS

2. Expanding sales channel

ConsumerIndustrial
3. Expanding communicationsolution

ArchitectureCopyright © 2017 Aplix and/or its affiliates. All rights reserved.

10Packaging our original service

HARPS Aqua :Water filter monitoring service.
Service launching in FY2018.

Gumwheel :IoT security scanner.
Enable status monitoring of office and home
network for IoT devices.

IoTIZR : Our original
device to connect waterflow meter and transfer via
Wifi

HARPS Toolkit : Monitoring
IoTIZR status

Aplix ConstantBridge IoT Platform :IoT platform which enables controlling of devices using
PUSH notification by smartphone.

Aquatech Amsterdam 2017

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

11Extending Sales Channel
 Joint Venture with HIKARI TSUSHIN,INC.
••

Combining HIKARI TSUSHINʼs sales channel and Aplixʼs IoT solutions, new Joint Venture company
will expand sales for IoT solutions beacon products.
Company will focus in selling “MyBeacon” product line up and solutions along with Mobile Phone
and SIM card sales to corporation.

Company Name

Aplix Marketing (tentative)

Head Quarter

2-20-9, Nishiwaseda, Shinjuku-ku, Tokyo 169-0051, JapanPaid Capital

10 mil. Yen

Owned Shares

Aplix：51％、HIKARI TSUSHIN：49％

Date of Start

4 th Jan. 2018

Business

IoT solution business
MVNO SIM business

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

12Extending communication device
 IoT enables various service opportunities to various business segment.
Communication technology is constantly improving with new method ofcommunication and new regulations.
 In order to extend our support to our customers, we will develop and support next
generation communication such as Low Power Wide Area (LPWA) and 5G along withour current BLE and Wi-Fi solution.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

13

BLE module shipment
Accumulated 420 thousands BLE modules shipment in June 2017(Unit)
50000045000040000035000030000025000020000015000010000050000
201709201707

201705201703

201701

201611

201609201607

201605

201603

201601

201511

201509201507

201505201503

201501

201411

201409201407

201405201403

201401

201311

201309201307

201305201303

2013010

Source: Company Data
BLE modules include JM Series MyBeacon Series and Others.
Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

14

Appendix

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15

Corporate Overview
Company NameAplix Corporation

MarketTokyo Stock Exchange Mothers

Headquarter Address
2-20-9, Nishi-waseda, Shinjuku-ku, Tokyo
169-0051, Japan

Code
JP:3727

FoundedBusiness Services

February 22, 1986
Capital1,861 million yen (as of March 31, 2017）

IoT Solution(Security, Hardware, Software, Cloud)Group Company
Aplix Corporation of America

Revenue
1,526 million yen (Consolidated, As of Dec. 31,2016)
Number of Employees
33 (Consolidated, as of September 30, 2017）

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

16Corporate Overview
Management Team- Representative Director

Kengo Nagahashi- Director of the Board

Kunihiro Ishiguro- Outside Director of the Board

Kozo Hiramatsu- Audit & Supervisory Board Member

Shinobu Nemoto- Outside Audit & Supervisory Board Member

Yoshio Nitta- Outside Audit & Supervisory Board Member

Masato Yamada- Corporate Officer

Kengo Nagahashi- Corporate Officer

Kunihiro Ishiguro- Corporate Officer

Ken Takagi- Corporate Officer

Takahiro Shirakawa- Corporate Officer

Nobushige Yamada

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17

Management Team
Kengo Nagahashi (Representative Director)
Received BA and MS from Keio University and Ph.D in Computer Science from theUniversity of Tokyo. He experienced Visiting Researcher at Computer Laboratory in
University of Cambridge UK and joined Nikko Citigroup as a sell side analyst covering
IT service software in 2006. After leaving Citigoup, he launched Future Bridge
Partners Corporation and became Director CFO of Aplix from Mar. 2015 andRepresentative Director from Feb. 2017 of Aplix.

Kunihiro Ishiguro (Director, CTO)
After graduating from Hokkaido University's Faculty of Agriculture, after going
through SRA Corporation by development of UNIX software, operation of Internet
routing control, realizing route control by open source ware GNU Developed "Zebra".
In October 1999, he founded IP Infusion in the US in order to develop and sell
"ZebOS" which is commercial software based on "Zebra". "ZebOS" is adopted byrouters and switch makers all over the world. After working as CTO Director ofACCESS Co., Ltd., he became CTO of Aplix from Apr. 2015 and Director from Mar.
2016.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.

18Aplix Corporation
http://www.aplix.co.jp/Note: The materials are provided to share information about Aplix business activities, and it is not intended tosolicit investment in Aplix shares. While the materials may describe information such as forecasts related tofuture business performance, this information has been created based on the judgment of Aplix at the time thematerials were created.
As a result, Aplix offers no guarantee that the conditions described will come to pass, and any of theinformation described is subject to change without notice in the future.

Copyright © 2017 Aplix and/or its affiliates. All rights reserved.