Sios Corp · TSE:3744
Sios — H1 2019 Earnings Presentation
28 slides from Sios's earnings presentation, Jul 31, 2019
Slide 1: Financial Results for the 6 Months Ended June 30, 2019
Financial Results for the 6 Months Ended June 30,2019 July31,2019 SIOS ,Corp. （Stock Code: 3744 on the Second Section of Tokyo Stock Exchange） © SIOS Corporation All rights Reserved.
Slide 2: Summary of Business Results for the 6 Months Ended June 30, 2019
Summary of Business Results for the 6 Months Ended June 30 ,2019 © SIOS Corporation All rights Reserved. 2
Slide 3: Consolidated Financial Results for the 6 Months Ended June 30, 2019
Consolidated Financial Results for the 6 Months Ended June 30,2019 Results for the Results for the (In millions of yen) 6 months ended 6 months ended Change %Change June 30,2018 June30,2019 Net Sales 6,270 6,914 +643 +10.3% Gross profit 2,056 2,124 +68 +3.3% Operating income 127 38 △89 △70.0% Ordina
Slide 4: Achieved record net sales in H1 2019
Consolidated Net Sales in First Halves of the Past 5 Fiscal Years Achieved record net sales in H1 2019 (In millions of yen) 8,000 6,914 7,000 6,238 6,226 6,270 6,000 5,000 4,392 4,000 3,000 2,000 1,000 0 1H FY 2015 1H FY 2016 1H FY 2017 1H FY 2018 1H FY 2019 © SIOS Corporation All rights Reserved. 4
Slide 5: Consolidated Operating Profit, EBITDA, and R&D Spending
Consolidated Operating Profit, EBITDA, and R&D Spending in First Halves of the Past 5 Fiscal Years Operating profit for H1 2019 declined by 89 million yen year-on-year R&D spending has remained at a consistent level. (Millions of yen) 417 400 305 330 286 285 300 264 282 260 200 173 166 127 100 8
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets （In millions of yen） Current assets Total liabilities Current assets Total liabilities 4,383 3,970 4,451 4,053 (including (including (including (including cash and interest-bearing cash and deposits of interest-bearing debts of deposits of debts of 2,138) 2,472) 751) 684)
Slide 7: Analysis of Consolidated Cash Flows
Analysis of Consolidated Cash Flows (In millions of yen) △45 △60 △10 2,008 2,343 450 Effect of Cash and cash Cash and cash Cash flows from Cash flows from exchange rate equivalents as Cash flows from equivalents as operating financing change on cash of December investing activities of June 30, 2019
Slide 8: YoY Changes in Cash Flows
YoY Changes in Cash Flows (Millions of yen) Cash flows from Cash flows from Cash flows from Other operating activities investing activities financing activities Amount of YoY changes Increase of 450 Decrease of 45 Decrease of 60 Decrease of 10 Breakdown Increases • 76 resulting from a • 6 resulting
Slide 9: Cash Flows from Operating Activities and Advances Received
Cash Flows from Operating Activities and Advances Received Cash flows from operating activities sustained by ample advances received (In millions of yen) 636 469 450 357 260 296 255 216 110 69 1H FY 2015 1H FY 2016 1H FY 2017 1H FY 2018 1H FY 2019 CF from Operating activities Increase in advances re
Slide 10: Free Cash Flows
Free Cash Flows R&D projects and investing activities sustained by a stable level of cash flows (In millions of yen) 1000 800 600 400 200 0 △ 200 △ 400 1H FY 2013 1H FY 2014 1H FY 2015 1H FY 2016 1H FY 2017 1H FY 2018 1H FY 2019 CF from operations – R&D spending R&D spending CF from investing activi
Slide 11: Open System Infrastructure Business
Open System Infrastructure Business Net sales 3,893 million yen, up 9.9％ YoY Segment income 46 million yen, up 128.2% YoY Net sales (Millions of yen) Net sales 3,543 3,893 3,203 3,424 2,712 Japan Sales of LifeKeeper*, one of our core products, achieved a solid increase. Sales of software product
Slide 12: Application Business
Application Business Net sales 3,021 million yen, up 10.8% YoY Loss of 7 million yen, compared with an income Segment income of 107 million yen the year before Net sales (Millions of yen) 3,034 3,021 Net sales 2,801 2,727 Revenues from the provision of support for system development 1,679 and impl
Slide 13: Improve Performance on Key Management Metrics
Improve Performance on Key Management Metrics © SIOS Corporation All rights Reserved. 13
Slide 14: Primary Objective and Management Metrics in Medium-Term Business Plan FY 2019-2021
Primary Objective and Management Metrics Established in Medium-Term Business Plan for FY 2019-2021 Primary Management Objective Under the mission of making the impossible possible for the people of the world, the SIOS Group works toward achieving its primary management objective of pursuing innovati
Slide 15: Basis for Achieving the SIOS Group Mission
Basis for Achieving the SIOS Group Mission Make the business foundation more solid Make the business foundation more solid Raise the level of Carry out M&A customer Increase sales and gross profit satisfaction while optimizing SG&A expenses Reduce the cash conversion Release new cycle products and s
Slide 16: Updates on Business-Continuity Solutions
Enhance existing products and services Updates on Business-Continuity Solutions Operating Profit from Sales of Business-Continuity Solutions in The addition of products offered Japan by ThirdWare Inc., which the Company acquired in December 2018, bolstered the sales and profit in this category. Life
Slide 17: Updates on Software Applications for MFPs
Enhance existing products and services Updates on Software Applications for MFPs Sales of Software Applications for MFPs After having struggled in the previous year, sales of software applications for MFPs picked up in this period, helped by closer collaboration with our distribution partners. H1 20
Slide 18: AI-enabled Service Solution That Recognizes Confidentiality Designations
Enhance existing SIOS to Release on September 30, 2019, AI-enabled products and services Service Solution That Recognizes Confidentiality Designations on Documents Enhance existing service * offerings by adding a AI-enabled service solution Log Capture that recognizes confidentiality new service sol
Slide 19: Beta Version of SIOS bilink Released
Release new products and services Beta Version of SIOS bilink Released SIOS bilink provides a platform that supports companies operating under subscription business models.* Consumers ①Business rules engines* and other basic functions ③Log management analytics platform Providers of subscription- bas
Slide 20: Cash Dividends for FY 2019
Cash Dividends for FY 2019 Based on the latest business forecasts for FY 2019, the Company plans to pay a year-end dividend of 5.00 yen per share for FY 2019, to be funded by projected profit for the year and dividends received from subsidiaries. 22nd term 23rd term Fiscal year ended Fiscal year end
Slide 21: Business Forecasts for Fiscal Year Ending December 31, 2019
Business Forecasts for Fiscal Year Ending December 31, 2019 © SIOS Corporation All rights Reserved. 21
Slide 22: Consolidated Business Forecasts for FY 2019
Consolidated Business Forecasts for FY 2019 Remain unchanged as announced on February 5, 2019 Bolster profit in struggling business in the second half of FY 2019 Provision of support for system development and implementation to financial institutions Reason for reduced profit in H1 2019 Actions take
Slide 23: Consolidated Business Forecast for Fiscal Year Ending December 31, 2019
Consolidated Business Forecast for Fiscal Year Ending December 31, Results for the Forecast for fiscal Percentage of 6 months ended year ending (In millions of yen) June30,2019 December 31, 2019 achievement Net sales 6,914 13,200 52.4% Operating income 38 200 19.0% Ordinary income 70 210 33.3% Profi
Slide 24: Appendix
Appendix © SIOS Corporation All rights Reserved. 24
Slide 25: About SIOS Corporation
About SIOS Corporation SIOS is Innovative Open Solutions Listed on the Second Section of the Tokyo Stock Exchange, SIOS Corporation is a holding company that manages subsidiaries having a wealth of expertise and assets in open source software, including Linux, AI and cloud technologies, and Fintech.
Slide 26: Glossary
Glossary Page Term Description A failover software product that automatically switches a failed primary 11 LifeKeeper server to a backup server. Software products sourced Open-source software products developed by Red Hat, Inc., a 11 from Red Hat, Inc. provider of open-source solutions. A multifunct
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