Sios Corp · TSE:3744
Sios — SIOS Technology — H1 2017 Earnings Presentation
28 slides from Sios's earnings presentation, Jul 31, 2017
Slide 1: Financial Results for the 6 Months Ended June 30, 2017
Financial Results for the 6 Months Ended June 30, 2017 July 31, 2017 SIOS Technology, Inc. (Stock Code: 3744 on the Second Section of Tokyo Stock Exchange) © SIOS Technology, Inc. All rights Reserved. 1
Slide 2: Table of Contents
Table of Contents Ⅰ Summary of Business Results for the 6 Months Ended June 30, 2017 Ⅱ Initiatives to Achieve Sustained Growth Ⅲ Medium-Term Sales and Profit Plan and Business Forecasts for Fiscal Year Ending December 31, 2017 © SIOS Technology, Inc. All rights Reserved. 2
Slide 3: Summary of Business Results for the 6 Months Ended June 30, 2017
Ⅰ Summary of Business Results for the 6 Months Ended June 30, 2017 © SIOS Technology, Inc. All rights Reserved. 3
Slide 4: Consolidated Financial Results for the 6 Months Ended June 30, 2017
Consolidated Financial Results for the 6 Months Ended June 30, 2017 In millions of yen Results for the Results for the 6 months ended 6 months ended Change ％ Change June 30, 2016 June 30, 2017 Net sales 6,238 6,226 (11) (0.2％) Gross profit 2,268 2,162 (106) (4.7％) Operating income 330 173 (156) (47.
Slide 5: Consolidated Net Sales in First Halves of the Past 5 Fiscal Years
Consolidated Net Sales in First Halves of the Past 5 Fiscal Years Net sales for the first 6 months of FY 2017 were slightly down from the same period the year before, during In millions of yen which we achieved substantial year-on-year growth. 7,000 6,238 6,226 6,000 5,000 4,392 4,000 3,626 3,225 3,
Slide 6: Analysis of Consolidated Net Sales
Analysis of Consolidated Net Sales Net sales for the 6 months ended June 30, 2017, were slightly down from the same period the year before, with a sales increase in the open system infrastructure business offset by a comparable decrease in the application business due to a projected shift of sales t
Slide 7: Consolidated Operating Income and R&D Spending in First Halves
Consolidated Operating Income and R&D Spending in First Halves of the Past 5 Fiscal Years Operating income for the first half of FY 2017 down by 156 million yen from the same period the year before R&D spending on a general upward trend 400 In millions of yen 営業利益 Operatin 研究開発費 R&D 305 330 264
Slide 8: Analysis of Consolidated Operating Income
Analysis of Consolidated Operating Income Operating income for the 6 months ended June 30, 2017, was down from the same period the year before, with an increase in segment income in the open system infrastructure business more than offset by a larger decrease in the application business. In millions
Slide 9: Consolidated EBITDA in First Halves of the Past 5 Fiscal Years
Consolidated EBITDA in First Halves of the Past 5 Fiscal Years In millions of yen EBITDA in the first half of FY 2017 down by 156 450 million yen from the same period the year before 400 350 417 300 260 250 200 161 150 100 76 50 0 -50 (21) 1H2013/2Q FY 2013 1H2014/2Q FY 2014 1H2015/2Q FY 2015 1H2016
Slide 10: Consolidated Balance Sheets
Consolidated Balance Sheets As of December 31, 2016 As of June 30, 2017 In millions of yen Current assets Current assets Total liabilities Total liabilities 3,615 3,977 3,817 3,608 Tangible fixed Tangible fixed assets 193 assets 182 Intangible fixed assets Total net assets Intangible fixed Total net
Slide 11: Analysis of Consolidated Cash Flows
Analysis of Consolidated Cash Flows In millions of yen 2,114 (11) 469 (93) (44) 1,793 Cash and cash Effect of Cash and cash Cash flows from Cash flows from Cash flows from equivalents as exchange rate equivalents as operating investing financing of December change on of June 30, activities activitie
Slide 12: Open System Infrastructure Business
Open System Infrastructure Business Net sales 3,424 million yen, up 6.9％ year on year Segment income 107 million yen, up 32.7％ year on year In millions of yen Net sales Net sales 3,424 Increased sales of LifeKeeper*, one of our core 3,203 products Up 6.9％ Increased sales of OSS* support services
Slide 13: Application Business
Application Business Net sales 2,801 million yen, down 7.7％ year on year Segment income 65 million yen, down 73.6％ year on year In millions of yen Net sales Net sales 3,034 Increased sales of software applications for Down 7.7％ 2,801 MFPs* Sales of software applications for financial institution
Slide 14: Initiatives for Sustainable Growth
Ⅱ Initiatives for Sustainable Growth - Beyond the 20th Anniversary of SIOS - © SIOS Technology, Inc. All rights Reserved. 14
Slide 15: Beyond the 20th Anniversary of SIOS
Beyond the 20th Anniversary of SIOS 2017 marks the 20th anniversary of SIOS Technology, Inc., which was originally founded under the trade name Ten Art-ni Corporation in 1997. At the time, Microsoft Windows, UNIX, and mainframe OSs* were the mainstream OSs, and Linux was considered a variant for hob
Slide 16: Mission Statement of the SIOS Group
Mission Statement of the SIOS Group Making the impossible possible for the people of the world IMPOSSIBLE The SIOS Group pursues innovative solutions to resolve issues affecting people and to contribute to a better society. © SIOS Technology, Inc. All rights Reserved. 16
Slide 17: The Better Society That SIOS Helps Build
The Better Society That SIOS Helps Build SIOS contributes to a better society through its business growth Creative Environment Sustainable & Fulfilling Connected Life Society © SIOS Technology, Inc. All rights Reserved. 17
Slide 18: The Better Society That SIOS Pursues
The Better Society That SIOS Pursues Creative People focus on creative work while leaving Environment mundane and repetitive tasks to machines. Predict system problems Identify causes of problems and assist in solving them SIOS iQ* Enable people to leave mundane and repetitive tasks to AI and use in
Slide 19: The Better Society That SIOS Pursues
The Better Society That SIOS Pursues Everyone has the opportunity to develop their skills and Fulfilling Life reach their full potential in a comfortable and supportive workplace that promotes their physical and mental health. Gluegent cloud services* Provide secure, easy-to-use cloud-based services
Slide 20: The Better Society That SIOS Pursues
The Better Society That SIOS Pursues Sustainable & Enable people to live in a safe and secure environment. Make efficient and responsible use of natural resources. Connected Society Create dynamic and thriving communities. Quickly store scanned Speedoc* Scan documents in documents designated folders
Slide 21: Driving Forces Behind Our Mission
Driving Forces Behind Our Mission 3 driving forces behind SIOS’s mission to pursue a better society Driving Technology forces SIOS continues to refine and upgrade its proprietary technologies to venture into new Creative territories. Environment Culture Technology People Our Mission Making the SIOS
Slide 22: Medium-Term Sales and Profit Plan and Business Forecasts for FY Ending December 31, 2017
Ⅲ Medium-Term Sales and Profit Plan and Business Forecasts for Fiscal Year Ending December 31, 2017 © SIOS Technology, Inc. All rights Reserved. 22
Slide 23: Medium-Term Sales and Profit Plan
Medium-Term Sales and Profit Plan Continue to invest in R&D and improve effectiveness in marketing and sales so as to achieve net sales of 16 billion yen and EBITDA of 1 billion yen in FY 2019 16.0 14.0 12.6 Net 12.0 In billions of yen sales 9.3 1,000 6.5 7.3 5.9 650 670 770 In millions of yen 230 2
Slide 24: Consolidated Business Forecasts for Fiscal Year Ending December 31, 2017
Consolidated Business Forecasts for Fiscal Year Ending December 31, 2017 Results for the Forecasts for fiscal 6 months ended year ending Percentage of June 30, 2017 December 31, 2017 achievement (in millions of yen) (in millions of yen) Net sales 6,226 12,600 49.4％ Operating income 173 500 34.6％ Ord
Slide 25: Payment of Dividends for Fiscal Year Ending December 31, 2017
Payment of Dividends for Fiscal Year Ending December 31, 2017 Annual dividends for We chose, instead of paying dividends, to invest in research and fiscal year ended December 31, 2016 development in FY 2016 and increase our efforts to implement the (Declared) medium-term business plan. Annual divide
Slide 26: Glossary
Glossary Page Term Description A failover software product that automatically switches a failed primary 12 LifeKeeper server to a backup server. Software whose source code, which is the fundamental component of the 12 Open-source software (OSS) program, is made available for free and can be used, mo
Slide 27: Cautionary Statement
Cautionary Statement Forward-looking statements about the Company’s business outlook contained in this document reflect management’s assumptions and judgments made on the basis of available information, and may include risks and uncertainties. We caution that significant risks and uncertainties coul
Slide 28: STOS
STOS