Table of Contents

■ Cast

■ Opening Greetings

■ Company Overview

■ Q&A Session

■ Closing Greetings

■ Cast

Mr. Ben Sasaki, Representative Director, President & CEO of AI Cube Systems Co., Ltd.

Prominent investor Haschan

Fisco Corporation Market Reporter Hiroe Takai (MC)

■Opening Greetings

▲Fisco Takai

Hello, everyone. I am Hiroe Takai, the market reporter of Fisco. This time, we have the honor of having Mr. Tsutomu Sasaki, Representative Director, Executive Officer, President, and CEO of iCube Systems <4495>, as well as a question from the prominent investor VTuber Haschan based on the theoretical stock price chart. Mr. Sasaki, in the first half, will provide an explanation about iCube Systems, and in the second half, will address the questions from Haschan. Now, let me introduce Mr. Sasaki and Haschan, who will be speaking today. First, we have Mr. Tsutomu Sasaki, Representative Director, Executive Officer, President, and CEO. Thank you.

■iCube Systems Sasaki

Thank you.

▲Fisco Takai

Mr. Sasaki joined a software company in Fukuoka city, then after resigning, he established Ai Cube Systems in September 2001. The company's name is inspired by the idea of cubing the initial letter I of innovation, and it provides development and offering of MDM service CLOMO. It offers functions necessary for managing and utilizing mobile devices such as smartphones and tablets used within organizations like companies and schools, supporting business digital transformation (DX). Next is the prominent investor and Vtuber, Hasshan. Thank you.

■ Hasshan

I am Hasshan. Nice to meet you.

▲ Fisco Takai

Hasshan, as an IT engineer and part-time investor, has achieved 100 million yen with a style of long-term investment in undervalued growth stocks. Currently, he has started his own business, supervising the development of the stock introduction site, KabuBiz, which can be used without specialized financial knowledge. As an investor Vtuber providing unique investment content such as theoretical stock prices and monthly information, he is active in financial magazines, investment media, and social media, with total sales of his business books exceeding 0.1 million copies. Mr. Sasaki, Hasshan, nice to meet you again.

■ Hasshan

Nice to meet you.

▲ Fisco Takai

First, Mr. Sasaki will give a brief company overview. If you have any points of interest, please feel free to share them. Thank you.

■ Hattshan

Yes. I am a beginner, but I want to ask about anything I don't understand. Please teach me. Nice to meet you.

■ Company Overview

■ iCube Systems Sasaki

Now, based on this document, let me explain. Today's content, starting with a brief overview of our company for those who are new to us, then an overview of our core business CLOMO business, and finally, discussing performance outlook and shareholder return policy, I would like to conclude today's presentation.

Once again, our company name is iCube Systems Co., Ltd. We have headquarters in Fukuoka and Tokyo, with five other sales offices. Established in 2001, we were listed on the Tokyo Stock Exchange Mothers market in 2020. Our core business involves providing SaaS using the cloud, focusing on software development. I heard that Hattshan is also an engineer, and I myself have been an engineer from the beginning, so I have been looking forward to meeting you today.

■ Hattshan

Thank you.

■ Sasaki, iCube Systems

As our brand slogan, we raise the words 'Let's enjoy the challenge,' embodying the passion for challenges and the culture of valuing them in our corporate brand. By shaping new ideas with the power of design and engineering, we aim to improve the business of our customers and the lives of everyone.

As an organization, we consist of 130 employees as of the end of March this year, with a total of 157 employees in the group. The gender ratio is 6:4, and the average age is about 36 years old. Among IT companies in the same industry, I think our female ratio is relatively high. In addition, in recent years, we have been actively working on new graduate recruitment, so the average age has decreased slightly, and the number of younger members is gradually increasing.

Foreign employees account for less than 10% of our company and over 20% including group companies, aiming to create a diverse organization regardless of gender or nationality. We promote these initiatives. The average monthly overtime hours are short at 4.5 hours, and both male and female employees have a 100% take-up rate for childcare leave, aiming to create a comfortable working environment. Due to the increasing difficulty in acquiring engineering talents each year, we are actively working on creating a comfortable working environment to attract and retain excellent engineers. We have been certified as a company with 'outstanding working conditions' for four consecutive years.

■ Hasshan

It is truly a company with a fulfilling work environment, and I deeply empathize with the fact that in the midst of challenges such as a declining birthrate and aging population, it is becoming increasingly difficult to secure talented individuals. Coming from the IT industry myself, I understand the struggles you face. You mentioned having 20% of foreign employees in the group, and I imagine that language barriers may arise. Are there any specific measures in place within the company to address this, like setting a common language?

■ Sasaki, iCube Systems

Although we aim to use English as a common language in the future, currently our operations are primarily conducted in Japanese. We are gradually moving towards a system where both Japanese and English can be used, with members who are proficient in Japanese and the existence of a subsidiary in Vietnam, where there are staff members capable of bridging communication and providing interpretation services, allowing a transition towards conducting operations in English.

Thank you for your comments.

Thank you. I now understand one of your strengths in talent acquisition.

IQube Systems - Sasaki

Thank you. Moving on, I would like to touch on our previous business structure. Initially focused on system development outsourcing after our establishment, an eye-opening experience during a visit to Silicon Valley in 2006 led us to transition into a product company from 2007 onwards, offering various software development services.

As outlined in the document, through continuous trial and error, we successfully launched CLOMO and MDM in 2010, the product with the logo in the upper right corner. This product managed to gain momentum and has since become our flagship product, demonstrating consistent growth since 2015 as shown in the graph.

Following these developments, our current business structure consists of two main segments: the CLOMO business and the investment business. The CLOMO business centers around our core products, CLOMO and MDM, provided through cloud-based software on a subscription revenue model. 95% of our revenue comes from this CLOMO business, establishing a stable income structure. The investment business focuses mainly on investing in startups. Today, I will provide further details on the CLOMO business.

Renowned investor "Hayasahhn" questions President Sasaki based on theoretical stock prices! Stay tuned for Vol. 2.