May 31st 2022

Year ending 31 March 2022

Financial results & Medium-termManagement plan Explanatory Material

Contents
Company Profile

New medium-term management plan 2022-2024（SUN Group excluding Cellebrite）

Company Profile

04

Management Philosophy

05

History

06

Management Policy

07

Business Overview

08

Summary of financial results for theyear ended 31 March 2022
Financial Highlights（Consolidated）

13

Income Statement（Consolidated)

14

Segmental Overview（Consolidated）

15

Balance Sheet（Consolidated）

16

Cash Flow （Consolidated）

17

Medium-term management plan and growth picture（SUN Group excluding Cellebrite）

19

External environment awareness（SUN Group excluding Cellebrite）

20

Business strategies and measure（SUN Group excluding Cellebrite）

21

Organizational strategies for product value creation（SUN Group excluding Cellebrite）

23

Investment Strategy（SUN Group excluding Cellebrite）

24

Shareholder Returns (Non-Consolidate）

25

2©SUNCORPORATION All rights reserved.

Company Profile

3©SUNCORPORATION All rights reserved.

Company Profile

Company NameSUNCORPORATION

Headquarters

Nagoya Headquarters
GLOBAL GATE 20F,
4-60-12, Hiraikecho, Nakamura-ku Nagoya-shi, Aichi 453-6120 Japan

Establishment

April 16, 1971

Representative

Ryusuke Utsumi, CEOBusiness
Segments

Mobile Data Solutions, Entertainment Business
IT Business (M2M), Others (Game Content)

Features

Mobile Data Solutions, which provides a digital intelligence platform mainly in the
US and worldwide; Entertainment, which is involved in the planning, development
and sales of amusement machines and games; and New IT, which develops DX
solutions based on the "Rooster series" network equipment, which has the top
market share in Japan. Developing original products and services for a wide rangeof markets, including related businesses.

Capital2,086 million yen as of March 31, 2022

4

©SUNCORPORATION All rights reserved.

Management Philosophy

Drea ms, Ch a llen ges a n d Crea ti on s
SUNCORPORATION have been creating fresh and innovative products based on our
accumulated technological capabilities and the ideas of our outstanding engineers.
We will continue to shine a bright light on the future by meeting the diverse needs ofsociety with our ability to create "fun" and "convenience" that can only be realized throughour "desire to take on challenges" and our technological prowess.

DreamsChallenges

Creations

Living up to
expectations

Taking on
challenges
courageously

New value
creation

Basic Philosophy

Making people happy through telecommunication & entertainment
5©SUNCORPORATION All rights reserved.

History
SUNCORPORATION’s DNA

2020
The release of “AceReal for docomo”,
a remote operation support solution
using 5G and AR SmartGlass

Dreams, Challenges, Creations

2010
The development andrelease of the mobilerouter the “Rooster
Series”
M2M’s full scale entry
to the market

2007
The acquisition of
Cellebrite’s shares

1985
1985
1971
The establishmentof
SUNCORPORATION

The development of software
for Nintendo consoles
The release of the “SUNSOFT”
seriesFounded with an aim to
manufacture and market
electronics-related
equipment

Sales

The development andrelease of
SUNCORPORATION’s
brand modem “My
Looper 300”

Main office built in Konan City,
Aichi prefecture
Business structure wasestablished and moved on to
expansion

SUNCORPORATION’s brandwas established
The development and sales ofan industry-first system
Nation-wide sales locations
6

Listed on JASDAQ
Acquired 100% ownership ofCellebrite and accelerated its
global expansion

Marking the 50 th
anniversary of its founding
as a global corporation©SUNCORPORATION All rights reserved.

Management Policy「Challenging Spirit」
1

Concentration on telecommunications and entertainment
Provide society with the technology, enjoyment and enrichment that make it safe and secure2

3

Improving the value of the enterprise
Aim to grow into a world-class company by integrating the management resources we haveaccumulated through challenges in various fields

Acting on their own initiative with a venture spirit
Value the spirit of challenge, innovative thinking and the drive for growth of the next generation

7©SUNCORPORATION All rights reserved.

Business Overview

With technology at the core
Operating in 3 business segments
Mobile data solutions(Digital Intelligence) Development and sale of mobile
forensic equipment

 Sales of mobile data backup solutions
for mobile handset retailers

Entertainment

New IT（Amusement・Game）（M2M/IoT）

Amusement Planning, development andmanufacture of amusement machines Development of video content foramusement machines
Game Development, manufacture and sale ofindustrial communication equipment andIoT solutions
 Development and sales of B2B businesssupport solutions using smart glasses

 Development and sale of game content©KK/AMW/P-I ©KK/AMW/P-I Ⅱ©KK/AMW/P-I M ©KK/K/P-IⅢ©JFJ CO., LTD. ALL RIGHTS RESERVED.

©2020 ustwo games ltd All rights reserved©PID Games ©SUNSOFT

8©SUNCORPORATION All rights reserved.

Business Overview (Mobile Data Solution)
Business activities.
Data extraction and analysis of mobile devices

Business activities: for mobile device
retailers / Mobile data backup

Develops and markets mobile forensic tools for criminal investigation agencies formany devices including mobile phones worldwide, as well as smartphones, portable
GPS terminals, tablets, etc.

Solutions for shops to migrate data suchas phonebooks and photos, backup andre-write data, etc. for mobile phones
and mobile devices worldwide.

Cellebrite UFED for criminal investigation agencies

Competitive Advantages

A global standard software program for
digital crime investigations thatextracts and analyzes data from mobile
and smart phones.

Next generation solutions using advanced accesstechnologies, a new remote mobile collection system
for the private sector, the development of SaaS-based
evidence management solutions, etc. These maintainthe company’s superiority in n ew techn ologi es,
productivity and efficiency,mainclients

 Commercial relationships with consolidated
subsidiaries and dominance in the country

Cellebrite
SUNCORPORATION

Product provision(hardware)

Development department
Customising software for the domestic
market, using technology and know-how
to match the hardware.
Sales department
Sales activities are focused on law enforcement
agencies and major corporations utilizing the
products’ advantages

National Police Agency,
Prefectural Police,.
Public Prosecutor's Office,Ministry of Health, Labour andWelfare.
FSA, Ministry of Defence.
Other law enforcement agencies.

Used by police agencies
throughout the country.
Standard tools[Main functions]••[Main functions]••••

Recommended👆•“Mobilogy NOW” for mobile device retailers

Digital evidence datavisualisation tools.
Easy preparation of
investigation documents forprosecution.
Extraction of evidential
transport card usage history.
9•

Copying mobile phone data
data backup
Mobile terminal fault
diagnosis
Support for the purchaseof used mobile phones
data deletionmainclients

Communication carrier shops
wholesale shops selling household
electrical appliances
Used mobile phone distribution
companies©SUNCORPORATION All rights reserved.

Business Overview (New IT) M2M/IoT
Business activities

Competitive advantages/features of the business

Provides services such as remote monitoring, control, analysis
and maintenance for IoT in a wide range of fields including
manufacturing facilities, vending machines and infrastructure
equipment.
sensorTelecommunicationequipment

network

Related to migration from 3G lines to LTE (4G) lines.
Patented and maintained technological competitive advantage

Release of multiple simultaneous connection version of Assist,
specialising in remote assistance for multiple smart glass devices,with support for smart glasses from other manufacturers.
Support for other manufacturers' smart glasses sequentially.

cloud service(Data collection and storage)

line service
device management

Facilities andequipment

customerequipment

smartglasses

Comissioned
development
Various maintenanceservices
Kitting service

Okudake cloudSIM

Remotemonitoring/control
Remote maintenance

SunDMS
Insight.

Main customers.

platform

Application.

(i) NTT Docomo, KDDI, Softbank, NTT Communications(ii) Panasonic(iii) Major beverage vending machine manufacturers.
(iv) Osaka Gas

History support

Commissioned
developments
xR Content.

Recommended👆

3 features of Sun DMSSUNCORPORATION's Rooster series routers
installed in multiple locations in the cloud.
The service enables centralised management
remotely, such as monitoring Rooster's
dead/active status, acquiring status information, Rooster series forstandard features
updating firmware, and changing settings.

highsecurity

Stimulation of on-site communication.
A remote support solution dedicatedto smart glasses.
Real-time sharing of video, audio
and AR images between on-site
workers and remote technicians andskilled workers via the network toprovide smooth and accurate work
support.

high quality
high reliability

10

Field operations and remote support

customer
smart glasses

Smartphones andtablets

Remote monitoring and control

sensor©SUNCORPORATION All rights reserved.

B u s i n e s s O v e r v i e w (Entertainment).

SunSoft

Amusement

Business activities

Business activities

Develop and distribute games for various platforms, including
smartphones and VR.

Planning, development and manufacture of a wide range of products, from
hardware to software for LCD display units and various control boards foramusement machines, making full use of accumulated digital technology
and graphic expression skills.
Main customers
Amusement industry(including pachinko andgaming industry)

Main customers

Competitive advantages/features ofthe business

Smartphone games market

Maintains a system that realises theaccumulation of expressive and technicalskills in the amusement field, thedevelopment of contents with highproduct appeal and the development ofhigh-quality control boards.

marketConsumer and PC games

Competitive advantages/features of thebusiness
It retains the popular 'Shanghai' brand of IP
and is able to create mobile games fromdevelopment to operation in-house, enabling it
to maintain revenues cost-effectively over thelong term. Also owns many IPs in the 'retro
game' genre, which is experiencing aresurgence in popularity, particularly in the US
and European markets.

Recommended👆

Recommended👆

Professional group for the development of
Amusement machines

Through the medium of games, Sunsoft introduces high-quality foreign video gameproductions to Japan which include stories set in tradition, culture and nature.

Development of high quality machines that combine
the know-how and technical skills developed overmany years in the development of pachinko andpachislot machines with the video production skills
acquired in the development of video games.
Specialists engage in the development of a series ofzmachines, from planning, design, video production,
sound production, software development, hardware
development and control board production, enabling a
one-stop supply.
Recently, the company has also developed andmarketed an real machine simulation application for
pachinko/pachislot machines, which is highly regarded
for its high reproducibility of actual machines.

Alba: A Wildlife Adventure
Experiential games that make you feel thefascination of nature, such as rescuing
dolphins on land and making a picture bookof the island's wildlife by photographing themwith your smartphone.

©KK/AMW/P-I ©KK/AMW/P-I II©KKK/AMW/P-I M ©KK/K/P-I III©JFJ CO., LTD. all rights reserved.

©2020 ustwo games ltd All rights reserved©PID Games ©SUNSOFT

11

Skábma - Snowfall
3D adventure game set in the world of theSami, the northernmost indigenous people ofEurope.

z©2022 Red StageEntertainment ©PID
Games ©SUNSOFT©SUNCORPORATION All rights reserved.

Summary of financial results for the year ended
31 March 2022

12

©SUNCORPORATION All rights reserved.

Financial Highlights ( C o n s o l i d a t e d )• Increased revenues were achieved as a result of steady orders in the mobile data solutions business.
• Selection and concentration of businesses, including the sale of businesses and the liquidation of
unprofitable divisions and product groups, and a change to a more profit-oriented organisational
structure.
• The company's five consecutive terms of non-consolidated deficits ended and it has become profitable
for the full year in FY2022.

Consolidated sales(Million Yen)

37,20540,00030,000(Million Yen)

26,220Changes in consolidated operating profit

3,000

1,360

26,662687

1,000
20,0002020/32021/32022/3△ 1,000

10,00002020/32021/3△ 2,2522022/3△ 3,000

13©SUNCORPORATION All rights reserved.

Income Statement ( C o n s o l i d a t e d )Improvement in ordinary profit/loss was mainly due to foreign exchange gains of JPY 3,435 million and gains on

valuation of derivatives of JPY 4,730 million.
2021/3(Unit: million yen)Sales

2022/3

Actual results

Actual results

Year-on-year variance(%)

26,662

37,205

39.5

7,837

10,86838.6

Gross profit

18,82526,337

39.9

Selling, general and administrative
expenses

18,137

24,976

37.7

Operating profit

687

1,360

98.0

Ordinary profit

881

9,673

998.0

47

2,822

5904.2

cost of goods soldNet profit for the year attributable toshareholders of the parent company
14©SUNCORPORATION All rights reserved.

Segmental Overview (Consolidated).
Mobile data solutions(Digital Intelligence)

29,323 million

Sales

New IT-related

Entertainment related

Composition ratio 78.8%(Amusement and gaming)(M2M/IoT)

Sales

5,669 million

Sales2,239 million.

Composition ratio

15.2%

Composition ratio

6.0%

OutlineOutlineOutline

Net sales increased due to a steady increase inorders for mobile forensic equipment and related
services, and a significant increase in sales of digitalforensic products compared to the previous fiscal
year period.

Both sales and profits increased due to strong salesof control boards for pachinko/pachislot machines
and steady orders for contracted development ofpachinko/pachislot machines.
In the game business, both sales and income
increased as a result of focusing on "Shanghai,"
which has a large number of users, to improve
profitability.

As for sales, both sales and profits increased due tostrong sales of M2M communication equipment suchas those for vending machines and increased salesof equipment for the migration from 3G to LTE (4G).

(Million Yen)

Sales by segment

Profit by segment

40,000(Million Yen)
4,000

29,32320,00019,018(Million Yen)
8,000

6,000

Sales by segment

5,698

Profit by segment

5,669

1,547

2,000

916

4,000

2,000

0

0

2020/32021/32022/3(Million Yen)

3,000

3,000

2,239
1,746

0

0

2020/32021/3

2,000

1,523

1,200

1,000

1,000

400

154

Profit by segment

1,600

800

542

913

2,000

Sales by segment(Million Yen)

2,000

4,523

20,413(Million Yen)

98

183

2021/32022/3002020/32022/3△ 343△ 1,000△ 1,058△ 20,000△ 1,000△ 2,000

15©SUNCORPORATION All rights reserved.

Balance Sheet (Consolidated)
Current assets increased by 28,816 million yen from the previous year due to the sale of Cellebrite shares held by
SUNCORPORATION.
Intangible assets increased by 1,891 million yen in goodwill and 646 million yen in other technologies, etc., due to the acquisitionof Digital Clues, while derivative liabilities of 14,388 million yen were generated due to the listing of the company's shares inCellebrite as a result of the merger.
2021/3(million yen)2022/3

Actual results

Actual results

Year-on-yearchange (%)

Investments and other assets

32,534
11,114
3,237
1,661
1,237

31,67940,785
3,468
4,197
1,957

▲2.6
267.0
7.1
152.6
58.1

Total assets

49,78582,08864.9

Current liabilities

27,885
1,079
28,964
14,811
▲419
2,051
4,377
20,82049,78538,961
16,08655,04723,865512
2,662
27,04082,08839.7
1390.6
90.1
61.1
29.8
29.9
64.9

Cash on hand and in banks
Other current assets
Tangible fixed assets
Intangible fixed assets

Fixed liabilities

Total liabilities
Shareholder’s equity
Accumulated other comprehensive income
Share warrant
Non-controlling interests

Total net assets
Total liabilities and net assets
16©SUNCORPORATION All rights reserved.

Cash Flow (C o n s o l i d a t e d )Net income 9,678 million yen, income taxes paid 1,119 million yen,increase in trade receivables 204 million yen.
2021/3(In millions)

Cash flows from sales activities

Cash flows from investing
activities
Cash flows from financial
activities

Actualbalance2022/3
Actualbalance

6,110

3,632

▲ 910

4,020

Year-onyear variance
(%)

▲40.5

-

3,598

▲3,036▲184.3

Cash and cash equivalents at the
beginning of year

12,674

21,113

66.5

Cash and cash equivalents at endof year21,11327,438

29.9

5,200

7,652

47.1

Free cash flow

17

Comments
Income taxes paid 1,119 million.
Increase in research and development
costs of approx. 1,136 million yen
8,432 million yen decrease in term
deposits
2,279 million yen for businessacquisitions, and 1,195 million yen for theacquisition of investment securities.
2,646 million yen in repayment of shortterm borrowings
3,323 million yen in dividends paid.

©SUNCORPORATION All rights reserved.

New medium-term management plan 2022-2024(SUN Group excluding Cellebrite)• As Cellebrite was listed on NASDAQ in the US in August 2021, SUNCORPORATION's medium-term management
plan does not include Cellebrite's management plan.
• For management information on Cellebrite, please see the company’s website. (https://cellebrite.com)

18©SUNCORPORATION All rights reserved.

Medium-term management plan and growth picture （SUN Group excluding Cellebrite)
New medium-term management plan focuses on new growth for SUNCORPORATION,
aiming for non-consolidated sales of 20 billion yen.
New medium-term management plan 2022-2024(M&A not taken into
account)(In millions)

2023/3 Plan.

Sales

2024/3 Plan.

2025/3 Plan.

9,200

10,80013,300Operating profit

140

560

1,680

Operating profit
margin (%)

1.5%

5.2%

12.6%

Sales

20 billion yen■M&A■SUNCORPORATION Group

2022/3
ActualMain implementation
themes2023/3
Plan

2024/3Plan

2025/3
Plan

Strengthening the Group's
management base andAchieving sustainable growth

Expansion of new business areas
Improvement of the profit structure
19©SUNCORPORATION All rights reserved.

External environment awareness (SUN Group excluding Cellebrite)
External Environment
The digital forensics market where the digital intelligence business for criminal
investigation agencies belongs

Mobile data solutions
business

In addition to the global trend toward digitization in law enforcement operations, theestablishment of the Cyber Police Bureau in Japan's National Police Agency has further
stimulated the development of forensic solutions for digital crimes.
M2M

New IT
IoT

Amusement

EntertainmentGames

The migration from 3G to LTE (4G) will be implemented on a full scale as each
communication carrier (NTT Docomo, KDDI, and Softbank) will shut down their 3G lines inphases by March 2026.
While demand for systems that remotely access and monitor/control industrial equipment isincreasing, many companies are entering the market, so while the market itself is expanding,the competitive environment remains severe.

Although the future is uncertain due to supply difficulties caused by the ongoing global
shortage of semiconductors, soaring costs, and a decrease in the number of pachinko
parlors, the introduction of new game machines (smart pachinko and smart pachislot)
scheduled for 2022 is expected to revitalize the market and increase hardware demand.
GlobalThe expansion trend continues as the network environment improves and new gamehardware is introduced.
In the smartphone game market, games that embody the core of fun in a short development
period, called hyper-casual games, have expanded over the past few years.
Domestic
While home video games are booming, the Smartphone market has leveled off since 2015
due to intense competition.

20©SUNCORPORATION All rights reserved.

Business strategies and measures （ SUN Group excluding Cellebrite ）Business measures will be developedin view of the market environment in each segment
Mobile Data Solution（SUN's business in Japan）

Key measures for Revenue Structure Transformation
Challenges/opportunities

Direction of solutions/measures

Realization of asafe/secure social
environment

Demand in the information
security market is growing
along with the expansionof DX

Proposal for new security solutions
Provides countermeasures against cyber threats,
which are becoming more sophisticated with thedevelopment of information technology

For criminal
investigation
agencies

Trust from law
enforcement accounts
developed through existingtransactions

Effective use of accounts

For mobile device
retailersBusiness opportunities areapparent in the market

Business policy (goals) and social values① Realization of a safe/secure social environment② Increase the social utility of mobile device data
Business activities① Realization of a safe/secure social environment
Proposed security solutions
Collaboration with companies involved in security products

Propose solutions for services required incriminal investigations, such as video image
recognition/analysis② For criminal investigation agencies
Mobile forensic equipment
Develop and promote mobile solutions③ For mobile device retailers

Proposals for mobile device retailers
Propose and target the introduction of solutions
for constantly used at mobile device retailers

Mobilogy brand for the domestic market

21©SUNCORPORATION All rights reserved.

Business strategies and measures（ SUN Group excluding Cellebrite ）Key measures for Revenue Structure Transformation
Challenges/opportunities

New IT

M2M

IoT

Identifying next-generation technologies and building an
ecosystem of purpose-built solutions from existing productsales-based businesses

Strengthening solutions

Business expansion towards
solutions businessBusiness policy (goals) and social values

M2M

Provide services and market value to society in accordancewith new needs.

Expand the solutions business by leveraging the competitive
advantage of technology

Full-scale development of theplatform business.
Expand business by widening
opportunities from the current
service of only in-house products
to other companies' products

Business activities
Remote monitoring, control, analysis and maintenance for IoT

Direction of solutions/measures

Stock business in maintenance services
Enhancing the functionality of the device management'SunDMS' to add value and expand the stock business.

Exploring new territories
Accelerated movement towards
DX through the use of IoT

IoT

Entertainment

By developing synergies with mobile communication devices
cultivated in the M2M business, we aim to
Expanding the perspective of remote support and aiming toprovide new solutions to all companies promoting DX basedon AR and AI technologies in the future.

Key measures for Revenue Structure Transformation
Challenges/opportunities

Business policy (goals) and social values
Amusement

Game

Pursue enhanced entertainment and provide new
enjoyment and stimulation to more people
Stabilization of existing businesses through IP assets
and the challenge of new possibilities through hypercasual games

Amusement

Supply difficulties andrising costs due toshortage ofsemiconductors

Game

Maintains a certain
customer base throughexisting IP

Direction of solutions/measures
Expanding into new areas while implementing cost
reductions
Maintain and continue the current business (commercial products) byreducing costs while improving product strength and quality. In
addition, develop new commercial products that utilize
pachinko/pachislot machine development technology, such as actualmachine simulation applications for smartphones.

Business activities
Planning, development and manufacture of a wide range of hardware andsoftware for LCD display units and various control boards for amusement
machines.

Utilization of IP
Secure stable revenues by bringing remakes to the market that utilize
the existing flagship IP Shanghai and a number of retro game IPs heldby the company

Develop and distribute games for various platforms
22©SUNCORPORATION All rights reserved.

Organizational strategies for product value creation（ SUN Group excluding Cellebrite ）Establishment of a cross-functional department (Marketing Department) to create
new SUN products and provide new value to customers and society

Mobile Solution

New ITEntertainment

Initiative

Marketing Department
1
Review of current
products and service

2
3
Improved sales methods
Planning
current products and service new products and service

4
M&A development ofpriority growth businesses

New technology
Further study of underlying hardware and technology techniquesdevelopment

23©SUNCORPORATION All rights reserved.

Investment Strategy（ SUN Group excluding Cellebrite ）Maximize the corporate value of the entire Sun Groupby strategically promoting capital allocation
Basic
Policy Actively develop priority growth businesses. Optimal allocation of CF for sustainable growth businesses.
 Maximize the use of a cash-rich balance sheet, strengthen human resources and R&D functions, andachieve sustainable growth.
 Contribute to stakeholder value creation by returning profits (including share buy-backs)
Strategic investments ofapproximately 20-40 billion yen
are planned over three years

Retained earnings/
Interest-bearing liabilities

R&D/Capital Investment

Cash Flow

Human Resource
Development

IP Registration

Sustained
GrowthRe-Investment

M&A
Business Partnership

Strategic
Investment

Shareholder Return

Alliance building

Dividend
Share Buyback

24©SUNCORPORATION All rights reserved.

Shareholder Returns（Non-Consolidate）

PolicyWhile taking into account the medium- and long-term business earnings baseWe will actively and flexibly pay out profit dividends in line with our performance.

2021/3

Dividend

2022/3（Annual)

10.00 JPY

40.00 JPY

（End of Term)

10.00 JPY

20.00 JPY-

20.00 JPY

481.4%

33.9%

（Q2）

Dividend payout ratio (Consolidated)

25©SUNCORPORATION All rights reserved.

Disclaimer

The purpose of this document is to provide information on the Company's business, management strategy and performance.
It is not intended as a solicitation to invest in securities issued by the Company.
In addition, this material has been prepared based on data as of 20 May 2022 for financial and company data.
The opinions and forecasts expressed in this material are based on the company's judgment at the time the material was prepared.
The accuracy and completeness of the information is not guaranteed or promised and is subject to change in the future without
notice.
Contact：SUNCORPORATION IR
E-mail : ir@sun-denshi.co.jp