Aplix IP Holdings Press Release
TRANSLATION FOR REFERENCE ONLYFebruary 12, 2016
Aplix IP Holdings Corporation(Code: 3727 TSE Mothers)

Aplix IP Holdings Announces Consolidated Results for the Fiscal Year Ended December
31, 2015 and Forecast for Fiscal 2016
- Aplix has completed the sale of businesses that it had previously operated and achieved
improved results thanks to increased orders for IoT projects and continuous efforts toreduce costs –Aplix IP Holdings Corporation (headquartered in Shinjuku-ku, Tokyo; Ryu Koriyama, CEO & Representative
Director; hereinafter “Aplix”) announced its consolidated results for the fiscal year ended December 31, 2015
(hereinafter the “current fiscal year”) and the consolidated forecast for the fiscal year ending December 31,
2016 (hereinafter the “next fiscal year”). In disclosing these results, Aplix has announced that going forward
the Company is on course to improve revenue, thanks to completing the sale of businesses that it had been
operating and facilitating significant cost reductions, as well as increased orders for IoT projects.
In regards to the consolidated results for the current fiscal year, Aplix implemented cost reductions throughinitiatives such as reducing its workforce and curtailing personnel costs by completing the sale of its oldgame and animation business, studio equipment, and related assets, by closing down its software
infrastructure technology business, and by improving its operational efficiency. In addition, the Company
accelerated employment for its IoT solution business. As a result, compared to the fourth quarter of theprevious fiscal year (October to December 2014), net sales and operating income for the fourth quarter of thecurrent fiscal year (October to December 2015) increased 21.8% and 71.4%, respectively.
In regards to the consolidated forecast for the next fiscal year, going forward Aplix will intensively invest its
management resources in IoT businesses because this market is expected to further expand globally, while
continuing to implement cost reductions. In doing so, the Company plans to maintain the recovery trend of
net sales and significantly reduce the deficit level.
As the trend towards IoT gains momentum around the world, Aplix is focusing its efforts on providing totalsolutions required for IoT, including modules, applications, and cloud services that support big data. Theseefforts have helped increase the number of companies both in Japan and abroad that use the Company’s IoT
solution, including the world’s largest kitchen sink manufacturer and a major pet goods maker in North
America, as well as water filter producers.
On the other hand, the Company anticipates recording sales in its IoT business as a result of providing
applications and services, as well as modules. However, the sales of applications and services are posted
several months to approximately one year after products that use the Company’s IoT solution are releasedon the market. Therefore, the Company needs to secure working capital to deal with the sharp increase inorders from clients.
In this situation, Aplix has accepted a proposal from Macquarie Capital Securities, a Japanese company
related to Macquarie Bank Ltd. Macquarie Capital Securities was one of the first to express interest in theCompany’s IoT business, and has since then provided active support to investor relations activities as theCompany pushes forward with its structural reforms to make the IoT business a core business. Aplix has

Aplix IP Holdings Press Release
decided to issue the M-1 series stock acquisition rights through a third-party allotment with conditions for theadjustment of exercised prices (hereinafter the “Stock Acquisition Rights”) in favor of Macquarie Bank, Ltd.
as a recipient of allotment. The bank, which is headquartered in Sydney, is one of the largest investmentbanks in Australia, and boasts a strong track record and a high degree of reliability. It has informed theCompany that it expects to sell most of the rights directly to institutional investors based on the results of its
market analysis. In addition, the number of the Company’s common shares subject to the Stock Acquisition
Rights is fixed, and the maximum number of allocation of shares is limited. Therefore, the Company believes
that the degree of dilution which occurs will not exceed its outlook due to future trends in share prices, even if
the exercise price is adjusted, and that the impact on the share prices is limited and can be offset.
Aplix has already moved forward with development and production towards the creation of IoT-based
products with many domestic and overseas manufacturers of products such as consumer electronics,
household articles, and pet goods. With a number of the manufacturers’ products starting to be displayed inlarge-scale exhibitions or other events, it is believed that next year a wide variety of IoT products
incorporating the Company’s IoT solution will be available from clients in both domestic and overseas
markets. The Company will seek to expand its business base and increase revenue through efforts tocapture demand that is expanding rapidly in both Japan and other countries.
■ About the Aplix IP Holdings GroupThe Aplix IP Holdings Group operates its business in pursuit of its mission to enable people all over the world to enjoy more fulfilling
lives through software technologies. Its technology business offers two different kinds of beacons developed by Aplix – location
beacons and notification beacons. Provided as a location beacon, the “MyBeacon® Series” constantly transmits radio signals and isincreasingly used in many different business sectors, including food and drink services, apparel and fashion, distribution, real estate,leisure and entertainment, logistics and transport and tourism, as well as in public works and by local governments as a positional
information solution. As a notification beacon, the “OSHIRASE Beacon®”, which is embedded in equipment, sends out radio signals
only when it detects a predetermined status. It can be combined with all kinds of appliances, especially light electrical products, suchas water purifiers, humidifiers, electric fans and coffeemakers. In the publishing business, the Group has created numerous
well-received titles. One example is the “Broken Blade series”, which has sold a cumulative total of more than 3.2 million copies inbook form. Offering books and picture books for children in this business segment, HOLP SHUPPAN Publishing has released
popular books including the “Don’t Spill the Milk!”
Aplix IP Holdings website (Investor Relations): http://www.aplix-ip.com/
Aplix website (Technology Business): http://www.aplix.co.jp/■ Contact:
Aplix Corporation

M2M Product GroupE-mail： m2m-group@aplix.co.jp

TEL：

050-3786-1702■Inquiries:
Aplix IP Holdings Public Relations:E-mail： ir-info@aplix.co.jp* The names of companies and products included in this press release are trademarks or registered trademarks of their respectivecompanies.
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