TRANSLATION FOR REFERENCE ONLYFY2016Q2Consolidated Financial Results
Aplix IP Holdings Corporation
12 th Aug 2016
Disclaimer: This English translation is for reference
purposes only. In the event of any discrepancy between
the Japanese original and this English translation, theJapanese original shall prevail. We assume noresponsibility for this translation or for direct, indirect orany other form of damage arising from the translation.

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

1

FY2016Q2 Consolidated Financial Results

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

2FY2016Q2 P/L Statement(Million Yen)

RevenuesFY15Q2Actual (A)Net income
attributable toparent company
shareholders

OPRP

757-1,252-1,253-1,240

FY16Q2Actual (B)739-590-608-618

Change (B－A)-18+662+645+622

Change (％)

-2.4%

－－－

 Due to cost cut effect Operating Loss was improved +662mil. Yen

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

3

FY2016Q2 Revenues by Segment
Mil. Yen
600500（Mil. Yen）

FY15FY16Q2Q2

Change400
347300200419351210

202

1000189686775

Q1Q2Q3142

115

82

Q4Q1Q2FY2015
TechnologyTechnology

6782+22.4%

Publishing

419351-16.2%（Total Revenues）

486

433-10.9%

FY2016
Publishing

Technology Business：Revenues growth of YoY+22.4% was moderate and will record Revenuesin 2H.
Publishing Business：
A book published by HOLP SHUPPAN, Publishing was selectedto National Wide Youth Book Report revenues in Q2 and contributed
revenues but Revenues declined due to decrease in new books (FY15Q231 books FY16Q2 21 books) to improve profitability.
Copyright © 2016 Aplix and/or affiliates. All rights reserved.

4FY2016Q2 Operating Cost by Segment
Mil. Yen
1,2001,000
800

205278189419600（Mil. Yen）

261

277242400
200400176

112

194302304239Q1

Q2314532463354

0
Q1

Q2

Q3

Q4

FY2015
TechnologyFY2016
Publishing

FY15

FY16

Q2

Q2

ChangeTechnology463

239-48.4%

Publishing419

302-27.9％

Company205

112-45.4%

1,088655-39.8%（Total Cost）

Company

Technology Business：
human cost reduction (YoY -48.4%)
Publishing Business：
Cost reduction by decreasing revenues (YoY -27.9%)
Company Cost：
human cost, rent reduction etc. (YoY -45.4%)
Copyright © 2016 Aplix and/or affiliates. All rights reserved.

5

FY16Q2 Received Orders and Orders Backlog
Mil. Yen
180.0

166.5

160.0

（Mil. Yen）

140.0
120.0

105.1

100.0

Received
OrdersBacklog
Orders

80.0
60.0
40.0

30.5

20.0

FY15

FY16Q2Q2Change

30.5

166.5

+445.9%

1.8

105.1

+5738.9％

1.80.0Received Orders

Backlog Orders
FY2015FY2016

Received Orders and Orders Backlog： Increased Received
Orders and Orders Backlog for IoT Solution

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

6

FY2016 Forecast(Million Yen)

RevenuesOP

FY2015

1,532-2,406

FY2016
Before Revised (A)2,306-696

FY2016After Revised (B)1,650-998

Change (B－A)

-656

-301

Change (％)-28.4%－

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7

FY2016 OP Forecast Breakdown
FY2016 OP Forecast Breakdown
Cost Improvement
IoT division

Mil. Yen200

101

0(200)

Original
Forecast

Others(68)

IoT

RevisedForecast

(334)

(400)

(600)

(800)

Patent(697)

Revenues
Decrease inPatent(1,000)(998)(1,200)

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8

Patent Division Aplix filed Sony Computer Entertainment Inc. and Sony
Computer Entertainment America LLC due to patent
infringement at Massachusetts Federal District Court on June2014
 SCE and SCEA insisted invalid of patents for PTAB at US Patentand Trademark Office and started Inter Partes Review.
 PTAB judged related Aplixʼs patents are invalid All expected royalty revenues of 375mil. Yen are excluded inrevised FY2016 forecast

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

9

Stock OptionsIssued Stock Options for Directors and Employees

Name

S-1 Stock Options

S-2 Stock Options

PaidFreeTargetIssuedStocks

PaidDirectors(4people)

225,000
stocksFree

Subsidiary
employeeandDirectors(91people)

100,000
stocksCopyright © 2016 Aplix and/or affiliates. All rights reserved.

Dilution

Exercise Period

1.57%

1st Sep 2016
~31st Aug 2026

0.70%

11st Aug 2018~
10th Aug 2021

10

Management Change
CTO of Ishiguro is in charge to IoT solution business to expand IoT service
Koriyama is still focusing on Publishing Businessin charge
Ishiguroin charge
NagahashiIoT Solution

SoC Business

Publishing Business

IoT Business

Semiconductor
for IoT

Comic Picture Bookin charge
Koriyama

IoT module
Analogue ChipTrial

Flex Comics

AppDigital Chip Trial
Cloud Service
Copyright © 2016 Aplix and/or affiliates. All rights reserved.

HOLP SHUPPAN,
Publishing11

BLE Module Shipment
Cumulative Shipments of BLE modules Exceed 300,000 units on July 2016
（Unit）
350,000
300,000
250,000
200,000
150,000
100,000
50,0000Source: Company Date
BLE modules include JM Series, MyBeacon Series and Others.
Copyright © 2016 Aplix and/or affiliates. All rights reserved.

12

Aappendix

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

13

Corporate Overview
Company Name
Aplix IP Holdings Corporation
FoundedFebruary 22, 1986
Capital13,882 million yen (as of June 30, 2016）
Representatives
Chief Executive Officer Ryu Koriyama
Headquarter Address
2-20-9, Nishi-waseda, Shinjuku-ku, Tokyo 169-0051,
Japan
Business Services
IoT Solution(Hardware, Software, Cloud)Publishing

Date of IPO
December 17, 2003
MarketTokyo Stock Exchange Mothers
Code
JP:3727
Accounting Auditor
Deloitte Touche TohmatsuGroup CompanyAplix Corporation
Aplix Corporation of America
Aplix Ireland Ltd.
Flex Comix Inc.
HOLP SHUPPAN, Publishing
Aplix IP Publishing Corporation

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

Products from Startup to IPO

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15

Products from Startup to IPO…2014
Copyright © 2016 Aplix and/or affiliates. All rights reserved.

16

IoT Startup（Yen Mil.）

Aplix is Reborn as an IoT Startup Company

12,000Contents Service

10,502

Software ServiceOP

10,0009,446

RPOP（omitting Goodwill amortization）
8,000
6,587
6,000

6,763

3,934

7,499
4,941

6,217
5,775

5,1955,028

4,000

AcquiringContents
Service Business(G-mode)

Spin off
Content GameBusiness

5,107
3,678

3,537

4,010
4,504

2,000

2,172
1,532

4,284

1,650

1,057
2,391

1,764

1,115

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1,179

1,086

353

563

2015

2016E(2,000)(4,000)Goodwill amortizationof iaSolution Inc.(AII）
Acquiring (2004-2006)※Red line OP indicateswithout Goodwill

Copyright © 2016 Aplix and/or affiliates. All rights reserved.

※Red line OP indicateswithout game andanimation businesstermination related costs

Drop in sales oflegacy softwareservice17

Aplix IP Holdings Corporation
http://www.aplix-ip.com/en/

Aplix Corporation
http://www.aplix.co.jp/

Note: The materials are provided to share information about Aplix business activities, and it is not intended to solicit
investment in Aplix shares. While the materials may describe information such as forecasts related to future businessperformance, this information has been created based on the judgment of Aplix at the time the materials were created.
As a result, Aplix offers no guarantee that the conditions described will come to pass, and any of the information described issubject to change without notice in the future.

Copyright © 2016 Aplix and/or affiliates. All rights reserved.