20250807financial-results-presentation-English.pdf

© SIOS Corp. All rights Reserved.
Financial Results
for the 6 Months Ended
June 30,2025
August 7,2025
SIOS ,Corp.
（Stock Code: 3744 on Standard Market of Tokyo Stock Exchange）

Table of Contents
1.Consolidated Financial Results
for H1 FY2025
2.Business Performance for H1 FY2025
by Segment
3.Updated Financial Guidance
4.Appendix

１．Consolidated Financial Results for H1 FY2025

© SIOS Corp. All rights Reserved. 4
H1 FY2024
results
H1 FY2025
results
Change %Change
Net Sales 11,804 9,486 -2,318 -19.6%
Gross profit 2,667 2,581 -86 -3.2%
Operating income -18 179 +198 －
Ordinary income 57 221 +164 288.2%
Profit attributable
to owners of
parent
23 119 +95 407.0%
EBITDA 6 194 +187 2,748.2%
ROIC
(annualized) -1.9% 14.3% －－
Consolidated Financial Results for H1 FY2025
（In millions of yen）
*EBITDA: Operating profit + Depreciation + Amortization of goodwill
*ROIC: Operating profit after tax / (Shareholders’ equity + Interest-bearing debts)

Consolidated Net Sales
1H FY2023 1H FY2024
Down
19.6% YoY

Consolidated Operating Profit
Increased by
¥198M YoY
1H FY2023 1H FY2024
-18

Consolidated Balance Sheets
Total
liabilities
6,547
（including
interest-
bearing
debts of
102）
Current
assets 7,175
（including
cash and
deposits of
3,677）
Non-current 172
Investments and
other assets 737
Total net
assets
1,537
Total assets
8,085
Total liabilities
and net assets
8,085
Total
liabilities
5,914
（including
interest-
bearing
debts of
54）
Current
assets 6,532
（including
cash and
deposits of
3,342）
Non-current 295
Investments and
other assets 714
Total net
assets
1,626
Total assets
7,541
Total liabilities
and net assets
7,541
● The decrease in assets reflected a decrease of 335 million yen in cash and deposits.
● The decrease in liabilities reflected a decrease of 229 million yen in contract liabilities.
As of December 31, 2024 As of June 30, 2025

Analysis of Consolidated Cash Flows
3,342
-118
-44
-135
-36
3,677
Cash and cash
equivalents as of
December
31,2024
Cash flows from
operating
activities
Cash flows from
investing
activities
Cash flows from
financing
activities
Effect of
exchange rate
change on cash
and cash
equivalents
Cash and cash
equivalents as of
June 30, 2025

Cash Flow Analysis for H1 FY2025
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
financing activities
Net cash provided or used ¥118M net cash used ¥135M net cash used ¥44M net cash used
Breakdown
Amount of
cash provided
• Profit before income
taxes: ¥221M
Amount of
cash used
• Income taxes paid:
¥236M
• Decrease in contract
assets: ¥144M
• Investments in
internal IT systems:
¥132M
• Repayments of
borrowings:
¥33M

2. Business Performance for H1 FY2025
by Segment
2-1. Products & Services
2-2. Consulting & Integration
2-3. Software Sales & Solution
2-4. Financial Results for H1 FY2025 by
Segment

２-1．Products & Services

Our Core Products
Offered in the Products & Services Segment
We continually upgrade our in-house software and SaaS* offerings and
leverage generative AI* solutions to support corporate clients in addressing
their operational challenges and provide innovative value propositions.
Optimizing system resilience and
availability without introducing
additional complexities
LifeKeeper is designed for high-availability
(HA) clusters*, monitoring system
operations and seamlessly switching over
to a standby system in the unfortunate
occurrence of a system failure. This
approach minimizes business disruptions
and ensures uninterrupted operations.
Streamlining office workflows to
enhance productivity
Gluegent Flow uses AI to facilitate electronic
workflows for submissions and approvals of
requests in the office environment. This
streamlined process minimizes the time and
effort associated with a traditional paper-
based approval process.
Streamlining document
management on MFPs
QuickScan and Speedoc are document
scanning apps designed for MFPs,
streamlining the conversion of paper
documents into digital formats. The
addition of an AI-OCR* mode enhances the
versatility of electronic document
management.
Note: See the Glossary on page 29 for descriptions of terms with an asterisk.

Products & Services:
Business Performance for H1 FY2025
• Net sales were down 9.1% YoY, as a result of the divestiture of the management support
systems business for financial institutions.
• Segment profit was up 40.7%, driven by strong sales of SaaS products.
Major achievements
● LifeKeeper and DataKeeper (disaster-recovery protection
software)
Worked more closely with AMIYA Corporation to meet corporate clients' increased
needs for secure system operations and greater regulatory compliance, by providing
a safer and more dependable IT infrastructure.
● Gluegent Flow (cloud*-based workflow solution)
The inclusion of generative-AI-powered user assistance was met with positive
feedback from corporate clients, leading to a surge in its sales and profitability.
Received prestigious industry awards, including BOXIL SaaS Award and an ITreview
Grid Award.
● Gluegent Gate (cloud-based integrated ID management
solution)
Released Gluegent Gate Medical, an IDaaS* solution designed exclusively for
the medical industry, to meet hospitals' requirements for multi-factor
authentication.
● Quickscan and Speedoc (document management apps)
Incorporated AI-OCR capabilities into the both apps. Gained broader awareness
among prospective corporate clients through on-site scanning demonstrations.
1H FY2023 1H FY2024
■Net Sales ■Segment income

Sales Performance of
Gluegent Flow and Gluegent Gate
The ARR of these two SaaS products has been following a consistent upward trend.
• Gluegent Flow: The inclusion of generative-AI capabilities has enhanced its value propositions.
• Gluegent Gate: The release of a variant designed exclusively for medical institutions has expanded
its customer base.
【Combined ARR of Gluegent Flow and Gluegent Gate】
Combined ARR for FY 2025 was
Up 15.0％ YoY
Up 29.6％ Up 8.3％
1. ARR: Annual Recurring Revenue, obtained by multiplying MRR (monthly recurring revenue, which is a predictable revenue that a business counts on
receiving every month from subscriptions) by 12

２-2．Consulting & Integration

Our Core Services
Offered in the Consulting & Integration Segment
Leveraging our industry-leading expertise in open-source system development and
product planning and development, we support corporate clients in addressing
intricate information system challenges and transforming their business operations.
Supporting universities in
developing and implementing IT
systems (Has provided support to
more than 100 universities to date)
The integration of a single sign-on* capability and
advanced ID management fortifies universities’ information
security and governance frameworks without impeding
accessibility.
Supporting financial institutions in
developing and implementing
enterprise systems
Leveraging our extensive knowledge of the financial
services industry and our engineering prowess, we design
and implement enterprise systems that cater to the
business and service requirements of financial institutions.
Providing a one-stop service for
designing an API ecosystem*
Our comprehensive service offers consulting, licensing support, and
integration to help establish a robust API* ecosystem.

Consulting & Integration:
• Net sales were up 14.9% YoY: Up in business with universities and API solutions business.
Down in business with financial institutions.
• Segment profit was up 19.9%: Up in business with financial institutions and universities.
Major achievements
● Business with the financial services industry (providing
system development and maintenance to securities firms,
banks, and cryptocurrency exchanges)
Won more projects and increased profit.
● Business with universities (providing integrated
authentication solutions)
Revenue from our legacy services remained strong. Offered following new
services that leverage generative AI, RAG*, and container* solutions:
・Startup service for integrating an AI chatbot with a client‘s internal
knowledge base
・Small startup package for deploying a container environment
● API solutions business (providing consulting and
development support for API ecosystems)
Collaborated with technology partners, including Akamai Technologies GK,
Scalar, Inc., JFrog Japan Ltd., and Boomi, LP., to expand our service
offerings and expedite service development.
1H FY2023 1H FY2024

２-3．Software Sales & Solution

Our Core Products
Offered in the Software Sales & Solution Segment
We offer cutting-edge software products sourced from technology companies in and
outside Japan and provide comprehensive technical support for them to enhance the
robustness and versatility of corporate clients’ IT infrastructure.
We maintain a longstanding partnership
with Red Hat, Inc., spanning over two
decades.
The SIOS Group is the largest distributor of Red Hat software
products in the Asia-Pacific region. We use software sourced
from Red Hat to build a high-performance, dependable
enterprise-level IT infrastructure system for our corporate
clients.
We are the first Japanese distributor for
Elasticsearch B.V.
We integrate the Elastic Search AI Platform into RAG solutions to
facilitate the wider adoption of generative AI in a Japanese
corporate environment.

Software Sales & Solution:
• Net sales were down 31.4% from the same period previous year, when segment sales were bolstered by major project
orders.
• Segment profit was up 31.7%. We achieved a higher gross profit margin. The partnership with Elasticsearch bolstered
our profitability.
Major achievements
● Partnership with Red Hat, Inc.
We achieved a higher gross profit margin.
● Partnership with Elasticsearch K.K.
We entered into partnership with Elasticsearch in
FY2024, which generated additional sales for us in
FY2025.
1H FY2023 1H FY2024

２-4．Financial Results for H1 FY2025 by Segment

（単位：百万円）
• Products & Services: Achieved increased profitability from reduced sales volume, which was a consequence of the divestiture of a
service line.
• Consulting & Integration: Achieved robust sales and profit in business with financial institutions and universities by catering to their
needs for aggressive IT investments.
• Software Sales & Solution: Sales were down from the previous year, when segment sales were bolstered by major project orders.
Segment profit was up due to a higher gross profit margin.
H1 FY2024
results
H1 FY2025
results
%Change
Products & Services
Net Sales 3,056 2,777 -９.1%
Operating income 184 259 +40.7%
Consulting & Integration
Net Sales 1,526 1,755 +14.9%
Software Sales &
Solution
Net Sales 7,227 4,959 -31.4%
Adjustments, including
corporate expenses*
Net Sales -5 -6 ー
Operating income -455 -391 ー
Total
Net Sales 11,804 9,486 -19.6%
Operating income -18 179 ー
*Expenses associated with the Company’s back-office departments, not attributable to
reportable segments 22

３．Updated Financial Guidance

Initial guidance
(announced in February
2025)
FY2025
Updated guidance
Change
Net Sales 19,000 19,000 ー
Operating income 70 220 +150
Ordinary income 160 290 +130
Profit attributable
to owners of
parent
100 200 +100
Operating income 122 272 +150
ROIC 2.8% 8.9% ー
Dividend rate ーー
Updated Financial Guidance for FY2025
• Results for H1 FY2025: Achieved better performance than the initial guidance, as a result of robust business growth and better control of
SG&A expenses.
• Guidance for H2 FY2025: We stay with the initial guidance for H2 to be conservative in light of uncertainties over the economic and
business outlook.
• Annual guidance for FY2025: Updated to reflect positive developments achieved in the first half.
*EBITDA: Operating profit + Depreciation + Amortization of goodwill
*ROIC: Operating profit after tax / (Shareholders’ equity + Interest-bearing debts)

20250807financial-results-presentation-English.pdf

4.Appendix

Mission Statement of the SIOS Group
Making the impossible
for the people of the world
The SIOS Group pursues innovative software
solutions to resolve issues affecting people
and to contribute to a better society.

Three Driving Forces behind Our Mission
テクノロジー
ピープル
Culture
We leverage cutting-edge
technologies to drive
innovation.
We are a dynamic team of
specialists capable of driving a
societal transformation.
We refuse to go with the flow but
choose to undertake an
unexplored endeavor.
People
Technology

Glossary
Page Term Description
12 SaaS Software as a Serviceの略。ソフトウェアをクラウドサービスとして提供すること
12 Generative AI
Generative artificial intelligence. An AI system capable of generating new data and
content from learned data.
12 HA cluster
High-availability cluster. A group of servers working together as a unified system to
ensure continuous operations, even when one or more components fail.
12 OCR
Optical character recognition. A technology to convert text images and handwritten
text into digital data.
13 Cloud
A system that enables access to computers and data from anywhere via the
internet.
13 IDaaS
Identity as a service. An identity and access management solution delivered in the
form of a cloud-based service.
16
Single sign-on
(SSO)
An authentication method that enables users to access multiple applications and
services with a single login and a single set of credentials.
16 API
Application programming interface. A set of protocols that enables different
software programs and applications to share information and functions.
16 API ecosystem
A dynamic network of interconnected API-based software applications and services
that work together to create greater value.

Glossary
Page Term Description
17 RAG
Retrieval-augmented generation. An architecture for optimizing the performance of
an AI model by connecting it with an enterprise-specific knowledge base.
17 Container
A method to package and isolate a software application and its dependencies into a
single portable unit to enable it to run consistently across different computing
environments.

SIOS is Innovative Open Solutions
31
About SIOS Corporation
Headquarters SIOS Building, 2-12-3 Minami Azabu Minato-ku, Tokyo, Japan
Capital 1,481 million yen
Established May 23, 1997
Stock listed on TSE Standard Market (stock code: 3744)
No. of employees 481 on a consolidated basis (as of December 31, 2024)
Main consolidated subsidiaries
Japan:
SIOS Technology, Inc.
U.S.A.:
SIOS Technology Corp.
SIOS Corporation started as a system integrator that provided solutions based on Linux and other varieties of open
source software. Today, the company serves as a holding company of the SIOS Group, which includes technology
firms specializing in software products and SaaS solutions.
Under the mission of making the impossible possible for the people of the world, the SIOS Group is committed to
pursuing innovative solutions that resolve issues affecting people and contributing to a better society.
Visit https://www.sios.com/en to learn more about us.

Call the IR Section of SIOS Corporation on 03-6401-5111
(+81-3-6401-5111 from outside Japan)
For inquiries about this document
or fill in and send an online inquiry form available at:
https://mk.sios.com/SIOS_Inquiry_english.html
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. Significant risks and uncertainties that might affect
our performance include, but are not limited to, the economic environment
and market conditions in which we operate.
Cautionary Statement
32

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