Corporate Profile · Mainly software products for electronics implement design.(PCB). Start penetration for Providing wire harness design solution 【JASDAQ listed】－ Kozo Keikaku

Corporate PhilosophyWe will contribute to the advancement of our customers and society by

providing solutions that generate high satisfaction through enhanced value-added and high-quality services.

Corporate Profile

Contents

© 2019 CYBERNET SYSTEMS CO.,LTD. All Rights Reserved.

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Ⅰ. About CAE P3〜8

Ⅱ. About Cybernet P9〜22

Ⅲ. New solutions P23〜25

Ⅳ. Our dividend policy P26〜27

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Ⅰ. About CAE


4

What is “CAE” ?

The tool for predicting functionality and reliability for developing products byvirtual experimenting the model designed in computer(CAD*)*Computer Aided Design

Abbreviation of「Computer Aided Engineering」

資料提供:Dyson Ltd.社様


CAE use case in automotive industry

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*Vehicle collision Analysis

Reproduce phenomenonin computer, which is hardto reproduce with actual

*Analyze air flow whilecruising

Reproduce invisible airflow in computer

Powered by EnSight


CAE use case②

6

Visualize water resistancewhile swimming

Image courtesy of Speedo

（Swimwear Speedo Fastskin３racing system）

*Analyze water resistance

Visualize aerodynamic flow ofwind between building when thewind lows from specific direction

*Analyze buildingaerodynamic flow of wind


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Why CAE is necessary ?

CAE brings innovation for R&D, design, production,maintenance process and is the trump to respond various,

diversified and sophisticated demands!

Using CAE・・・

1. Enable to confirm the motion of products before prototyping2. Enable to increase quality by solving problem at the early stage of designing

CAE is environmentally friendly！Enabling early market introduction of new products

Enabling significant reduction of number of prototypingand experiment cost

Enable to address hard-to prototype products

Enabling prior quality validation for high-level productdesign

Enabling experiment for safer product development


CAE employment case

Utilize CAE analysis for production proposals for in-house plastics development, identify productscharacteristics data to enhance proposals

Source：Nikkan Jidosha Shimbun 2018/9/19 P3 （Kuralay）

Modelize, numerize all car, control occupants, and environment to aim design without actual vehicle

Source：Nikkan Kogyo shinbun 2018/3/20 P7 （MAZDA）

Use CAE for product development for fiber products to reduce the number of prototype to 3 timesfrom several dozen

Source：Nikkei Sangyo Shimbun 2018/1/9 P7 （Asahi-Kasei）

Develop the model enable to reproduce all phenomenon of engine to mitigate development burdenSource：Nikkan Jidosha Shimbun 2017/8/24 P1 （AICE）

Enhance Model-based development to reduce development time and cost for production vehicle

Source: Nihon Keizai Shinbun 2016/9/24 P1 （HONDA）

Shortening simulation analysis speed for air resistance to accelerate aircraft development

Source：Nikkei Sangyo Shimbun 2016/9/23 P7 （JAXA）

Utilizing thermal fluid analysis software, contribute shortening of design and development for highperformance tire

Source：Nikkan Jidosha Shimbun 2016/6/22 P5 （EXA Japan, THE YOKOHAMA RUBBER CO., LTD.）

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About Cybernet


Company Name CYBERNET SYSTEMS Co., Ltd. (Stock code: 4312, the First Section of Tokyo Stock Exchange)

Head Office Fuji Soft Bldg., 3, Kanda Neribei-cho, Chiyoda-ku, Tokyo 101-0022

Branch Offices Nishi-Nihon Branch Office in Osaka and Chubu Branch Office in Nagoya

Founding date April 17, 1985

Capital 995 million yen

Representative Directors Reiko Yasue, Representative Director, President, Managing Officer, Chief Executive Officer

Number of Employees Consolidated / 593, Non-Consolidated / 366 (as of December 31, 2018)

Business Providing CAE solutions and IT solutions（Product sales, contract analysis, consulting, software development）

Partners(Software Vendors)

Over 20 software companies mostly in the U.S., including ANSYS, Inc., Synopsys, Inc., Symantec Corporation and others

Consolidated subsidiaries【Developing subsidiaries】

• Sigmetrix,LLC（US）Headcount: 24

• Maplesoft（Canada）Headcount: 100

• Noesis Solutions NV（Belgium）Headcount: 23

【Reseller Subsidiaries】

• 莎益博工程系統開発(上海)有限公司（China）Headcount: 34 ＊Cybernet China

• 思渤科技股份有限公司（Taiwan）Headcount: 34 ＊Cybernet Taiwan

• CYFEM（Korea）Headcount: 12

• CYBERNET SYSTEMS MALAYSIA SDN.BHD. (Malaysia)

Number of Employees: As of December 31, 2018

Corporate Overview

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11

Historical Overview

2010

2000

1990

1980

1970

1960

1971 Control Data Japan is open

1980 Starts CYBERNET Services

1985 CYBERNET SYSTEMS Co., Ltd., takes over CYBERNET businessfrom Control Data Japan and launches operation

2001 Lists on the JASDAQ market.

2003 Lists on the Second Section of the Tokyo Stock Exchange.2004 Lists on the First Section of the Tokyo Stock Exchange.

2006 Establishes subsidiary CCA ENGINEERING SIMULATION SOFTWARE(Shanghai)CO.,LTD.

CYBERNET Servicesby CYBER176

2008 Establishes subsidiary CYBERNET SYSTEMS TAIWAN CO., LTD.

2009 Makes Sigmetrix, L.L.C. a wholly-owned subsidiary.

Makes Maplesoft a wholly-owned subsidiary.2010 Makes Noesis SolutionNV a wholly-owned subsidiary.

CCA ENGINEERING SIMULATION SOFTWARE(Shanghai)CO., LTD. is merged intoCYBERNET CAE SYSTEMS(Shanghai) CO., LTD

1967 Control Data Far East Tokyo branch is open

1990

1999 FUJISOFT ABC, Inc. acquires the entire stock of CYBERNET SYSTEMS.

1989 Kobe Steel Ltd. acquires the entire stock of CYBERNET SYSTEMS.

2017 Establishes subsidiary CYFEM Inc.

2020


0

200

400

600

800

1,000

1,200

1,400

1,600

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2014 2015 2016 2017 2018 2019(Plan)

Net sales Operating Income

12

Corporate Growth and Cybernet’s Employees

In million yenNumber of Employees

47.3%

45.9%

40.2%

40.0%

12.6%

14.2%

0% 20% 40% 60% 80% 100%

Non-consolidated

Consolidated

TechnicalEngineer Sales& Marketing Administration

Cybernet’s Employees

Number of Employees


563575

594

620

593

520540560580600620640

2014 2015 2016 2017 2018

● CAE Development Subsidiaries

● Sales Subsidiaries

Cybernet Group’s Global Network

13


[Consolidated] Net sales by region

14

79.6

78.5

78.8

10.0

10.3

6.9

5.5

6.5

9.8

4.5

4.4

4.3

0% 20% 40% 60% 80% 100%

FY2016

FY2017

FY2018

Japan NA Asia Europe Others

January to December, 2017




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Business Model

Customers

Cybernet Group

US, Europe, Domestic DevelopersOver 20 developers with 50 products and more

Users: 2,000 companies, 500 research institutions and universities

Usersrequirements

Service BusinessOriginal Products

Feedback User’s Needs

Reseller

Share localizing andtechnical know-how

Provide Vendor/Provide Vendor/

Developer’s

products

Unique Know

-how Tech

support

Technical supportConsultation with introduction

and use support

developed products

Provide in-house

developed products

Introduction,Introduction,

Operation

support

Engineering

Service

CAE

Engineers

Education


Overall Business view

Mechanical CAEStructural Analysis

/ Thermal Analysis

Contract Analysis

Customize service

Operation, Introduction consulting

Multi-domain Consulting

Contract Analysis

Customize service

Operation, Introduction consulting

Multi-domain Consulting

Deploy business with Software License sales and many added value services

IT solution

IT SecurityEnd Point SecurityIT asset managementCYBERNET Cloud

Big dataInnovations supportVisualization／AR・VR

Engineering Service

CAE solution

Cybernet Group’sCybernet Group’s

Products

16


Optical CAEOptics design/ Illumination design

Electron CAECircuit design/ PCB

Controlling CAEModel-based Development

/ Formula manipulation

Optimization

Tolerance Analysis

[Consolidated]Overview of Results by Segment

17


13,166

14,910

16,345

3,004

3,262

3,874

0 5,000 10,000 15,000 20,000 25,000

FY2016

FY2017

FY2018

CAE IT

2,252

2,732

2,687

361

324

396

0 500 1,000 1,500 2,000 2,500 3,000 3,500

FY2016

FY2017

FY2018

CAE IT

Net sales

Operating income

In million yen

In million yen

(Note) Net sales and Operating income exclude consolidate adjustment.

31.9%

32.2%

29.8%

16.2%

15.6%

15.4%

13.7%

14.2%

14.6%

12.5%

12.4%

12.8%

8.6%

8.5%

8.6%

6.5%

5.4%

5.6%

10.6%

11.7%

13.3%

0% 20% 40% 60% 80% 100%

FY2016

FY2017

FY2018

Electrical equipment Machinery & Precision MachineryTransportation equipment Other manufacturing industryEducation & Research institution Telecommunication industryOthers

18

Domestic Net Sales by Category of Industry





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Our Customers

Key customers by industry

Education and research

Telecommunication

Electric products

Transport machine

Precision equipment

Universities

Independentadministrative

agencies

The University of Tokyo, Kyoto University, Osaka University, Hokkaido University, Tohoku University,Chiba University, Tokyo Institute of Technology, Waseda University and others

Japan Aerospace Exploration Agency (JAXA) RIKEN, Japan Atomic Energy Agency (JAEA),National Institute of Information and Communications Technology (NICT),National Institute of Advanced Industrial Science and Technology (AIST) and others


Cybernet solution for electrize, electronize of automotive

Sensor Controller

TelecommunicationsStructure-function

design

Cybernet continues to propose solutions in various technology domain.

Thermal, fluid

ElectronicCircuit・PCB

Control design・Model-based development

PIDO tool

PIDO tool

Acoustic（Noise, Vibration）

Lens Optical

IlluminationdesignPIDO tool

AutomotiveLighting design

・Head light

auto adjust・HUD・V to V radar

・Electric noise・Vibration noise

Aerodynamic noise・Weight Reduction

・Auto-cruise assist・Engine control・Transmission Control・Battery Control

（Future）・Security

＜Engineering Service＞

Fuel Efficiency

Structure

ECU Electromagnetic Field


Strength of Cybernet

Extensive specialty and global partner networkMore than 20 worlds’ top class software more than 50 kinds

Business not susceptible to external factors such as economiccycles

Target as R&D department which is inevitable to growth of manufacturers

Various user layers which is less effected by specific customersperformance

97 % of manufacturing company as customers, and are in various types of

industries thus less dependent to specific customers

Sophisticated know-how backed up by experienceOver 30 years of business experience as CAE specialized company

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CAE Participants

Domestic listed company which has CAE as one of their business【TSE 1st section listed】

－ INFORMATION SERVICES INTERNATIONAL-DENTSU, LTD. （ Information and

communication industry：4812 ）

Internal system for parent company Dentsu and development support for manufacturers and financial firm

Main CAE domain「Control design, model based development」

－ ARGO GRAPHICS INC. （ Information and communication industry ：7595）

CAD system sales, Mainly maintenance service. ½ automotive. CAE emerging

－ ZUKEN INC.（ Electronics：6947）

Mainly software products for electronics implement design.(PCB).

Start penetration for Providing wire harness design solution

【JASDAQ listed】

－ Kozo Keikaku Engineering Inc. （ Information and communication industry：4748 ）

Construction, disaster prevention, communication mobile, production logistics, product design solutions, etc.

Main CAE domain 「Construction structural analysis」, 「Thermal fluid analysis」

Among those participants, Cybernet is the only company which specialized to CAE andcan provide all domains (Structural/Thermal fluid analysis, control design, model based

development, circuit design, visualization) customers need.22


23

Ⅲ. New solutions


New MarketCAE Technologies to contribute IoT (Internet of Things)

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Reproduce physical event into digital field and Predict and analyzecause of accident and problem in advance.Digital Twin

Products

Development/Design pleteManufacturing/Com

plete

Conventional Maintenance

New Maintenance

Variousinformationfrom sensor

Enable to provide failure prediction,time for maintenance information

timely

・Judge・Diagnose

“Connected” 〜Real time situation awareness〜Cause of accident, problem, analysis for effectiveness, etc.

VibrationThermalFatigue

Etc.

Big DataBig Data

windmill


Aircraft(Engine)

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Provide Cybernets’ Unique Value


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Ⅳ. Our dividend policy


Our dividend policy


Index

Cybernet Systems further weighs healthy expansion of profit

and returning profits to shareholders, as well as promoting improvement for ROE.

Payout ratio 50%Net assets（Capitalization）dividend ratio3.0%

※ Set reference index for dividend amount whichever higher

Dividend Ratio：The ratio of dividend payout amount against net profit(after tax) of the term＊Payout ratio is greater than net assets dividend ratio, and 「increase profit」makes 「increase payout」.

Net assets（Capitalization）dividend ratio： The ratio of payout for net assets(Capitalization)＊Cybernet System has nearly 70% of net assets dividend ratio, as lower the effects from temporary

decreasing of profits to dividend as possible to realize stable dividend.

・Dividend record and forecast

2015 2016 2017 20182019

（Forecast)

Dividend per share JPY13.80 JPY13.00 JPY15.05 JPY16.52 JPY15.38

Payout ratio 92.8％ 87.7% 50.0% - 50.0％

Net assets（Capitalization）

dividend ratio3.1％ 3.0% 3.4% 3.8％ 3.7％

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Our Corporate Message


Documents

Corporate Profile · Mainly software products for electronics implement design.(PCB). Start penetration for Providing wire harness design solution 【JASDAQ listed】 － Kozo Keikaku

Corporate Profile · Mainly software products for electronics implement design.(PCB). Start penetration for Providing wire harness design solution 【JASDAQ listed】－ Kozo Keikaku