Aplix IP Holdings Press Release
TRANSLATION FOR REFERENCE ONLYFebruary 23, 2017
(This English translation was released on March 2, 2017)

Aplix IP Holdings Corporation(Code: 3727 TSE Mothers)

Aplix IP Holdings Forecasts
Profitability Driven by IoT Business
Aplix IP Holdings Corporation (headquartered in Shinjuku-ku, Tokyo, Representative Director Kengo
Nagahashi, hereinafter “the company”) announced its profits forecast for the full business year closing inDecember 2017.
To improve profitability in the IoT-related business, the company has been bolstering IoT-relatedbusinesses and IoT solutions, the new business model of the IoT era, with a central focus on the initiativesof Kunihiro Ishiguro who, after being appointed as CTO (Chief Technology Officer) in 2015, was named aboard director in 2016. As with the previous announcement, these developments are coming to fruition,
including developing applications and a cloud system for Nestlé Japan and developing IoT and applications
for air purifiers of U.S.-based Guardian Technologies LLC. We are further advancing our initiatives to boost
profitability in our businesses.
Furthermore, we merged with Aplix Corporation, our consolidated subsidiary, to manage our businessmore efficiently and reduce costs. Our system has also shifted from a holding company to a businesscorporation. Also we agreed in today’s board meeting to change our registered company name to Aplix
Corporation, and to supplement the lack of earned surplus, on condition that these measures will beapproved in the 32nd annual stockholders meeting. Under the new management structure, we will
endeavor to achieve the consolidated performance forecast for December 2017 announced today, andpainstakingly implement the policies announced today to invest all our group’s management resources into
the new Aplix for a robust, profitable structure and finances, and greater profitability.
As for our publishing business—which was the only remaining business after we consolidated ourintegrated entertainment-related businesses—we improved its profitability structure to a point where it
could be profitable on its own, and though it was not our core business it was contributing to our overallprofitability. However, on February 23, 2017, to establish a structure focusing on our IoT solution business,
we decided to transfer all its shares of Aplix IP Publishing Corporation, Flex Comics Inc., and Holp
Shuppan Publishing (subsidiaries in the publishing business of Aplix Publishing Holdings, our consolidated
subsidiary).
On February 23, 2017, our founder, representative director and CEO Ryu Koriyama returned his
representative rights for a swift transfer of management decisions, as the consolidation of our pastentertainment businesses has become viable and future profitability of our current IoT solution business
now looks set. Until the end of his term as a board director at the 32nd regular shareholders meetingscheduled for March 28, 2017, he will focus on a seamless transfer of management as a president without
representative rights. After his term as a board director, he will assume an external unpaid position to
support our business as necessary.

Aplix IP Holdings Press Release■About the Aplix IP Holdings GroupThe mission of Aplix IP Holdings is to use the power of software to bring happiness to everyone in the world. Following the successof JBlend, which opened a new frontier for Java on mobile phones, we are currently developing the field of IoT (Internet of Things)．
By supplying IoT solutions from IoT modules (beacons), smartphone apps to cloud services, we aim to advance the transition ofhousehold appliances and other products to being IoT-equipped devices and in doing so, realize our concept of “enriching people’s
lives with notifications from things.”
Aplix IP Holdings website (Investor Relations):

http://www.aplix-ip.com/en/

Aplix website (Technology Business): http://www.aplix.co.jp/en/■Inquiries:
Aplix IP Holdings Public Relations: http://www.aplix-ip.com/en/contact_en/* The names of companies and products included in this press release are trademarks or registered trademarks of their respectivecompanies.

Disclaimer: This English translation is for reference purposes only. In the event of any discrepancy between the Japanese original and thisEnglish translation, the Japanese original shall prevail. We assume no responsibility for this translation or for direct, indirect or any other formof damage arising from the translation.