Serverworks : FY 2021 Financial Summary

FY02/21 Financial Summary

2020.3.1 - 2021.2.28

Serverworks Co., Ltd. (Securities code: 4434)

Our Countermeasures against COVID-19

Initiatives to prevent infection of COVID-19

・Continuously paying the remotework allowance to all employees ・Recommend employees to work from home even after the lifting of

the state of emergency on March 21

Impact on business continuity and performance

・The impact on business execution is insignificant since remotework has been maintained and

actively promoted.

・The impact of the state of emergency declared in January 2021 on the financial results for

fiscal year ending February 2021 is insignificant.

2

Topics

FY2021 Q4 Topics

Listed market changes to the First Section of the Tokyo Stock Exchange

Re-listed on the First Section of the Tokyo Stock Exchange from Mothers, aiming to

expand/progress as a comprehensive cloud company on January 15, 2021.

Rated among "Best Workplaces JAPAN 2021" continuously for 4 years

Wins the "Best Workplaces JAPAN 2021" by Great Place to Work® Institute Japan for 4

consecutive years

Capital and Business Partnership with WingArc1st Inc.

In March 2021, we entered into a capital and business partnership with WingArc1st, which

develops and distributes products for Business Form Infrastructure Solutions as well as the

Data Empowerment Business with BI tools. As a result of this capital alliance, and through collaboration between us, the companies will make use of their respective strengths and further

accelerate the growth and expansion of Digital Transformation.

4

Financial Results

（Unit: million yen）

Earnings Forecast for FY02/21

Revised earnings forecast on October 9, 2020. Extraordinary income based on sales of the investment securities, which was not included in the original plan, and various expenses related to MS warrants and market changes are included.

	FY02/20	Composition	FY02/21	Composition	% of year-earlier level
	results	(%)	forecasts	(%)
Net Sales	6,811	100.0	8,003	100.0	117.5
Gross profit	1,086	15.9	1,190	14.9	109.6
Operating profit	417	6.1	392	4.9	94.0
Ordinary profit	421	6.2	377	4.7	89.5
Profit	333	4.9	448	5.6	134.5

※There is no change in the full-year earnings forecast from the "Notice concerning recording of extraordinary income (Gain on sale of investment securities) and revision of full year forecast for the fiscal year
ending February 2021", announced on October 9th, 2020.	6
。

Earnings Results for Full-Year FY 02/21

Overachieved in all segments of full-year-forecast.
Compared to the previous year, items other than ordinary profit increased, and growth was
maintained even under the COVID-19 situation.			（Unit: million yen）
	FY02/20	Composition		FY02/21	Composition	% of year-earlier
	results	(%)		results	(%)	level
Net Sales	6,811	100.0		8,029	100.0	117.9
Gross profit	1,086	15.9		1,224	15.3	112.8
Operating	417	6.1		419	5.2	100.5
profit
Ordinary profit	421	6.2		410	5.1	97.5
Profit	333	4.9		482	6.0	144.7
EBITDA	489			484

7

Net Sales

Record 117.9％ growth year on year. We achieved 100.3% compared to FY02/21 earnings forecasts.

（million yen）
10,500		Cloud Integration		Resale		MSP		Others

6,811

7,000

784

4,477

3,066579

3,500	5,390

425

3,230

2,202

Difference with full-year target

Results：8,029

Forecast：8,003

（% of year-earlier level：

117.9％）

961

6,626

0	372	610	577		425
	2018年2月期	2019年2月期	2020年2月期	2021年2月期

8

Profit Margins

Business activities have been recovering from the impacts of the COVID-19 situation.

Both profits and profit margins maintain above the planned level.

Gross profit/Gross profit margin

Gross profit		Gross profit margin

	400	20.6%
(Million yen)	18.1%	19.0%	19.1%	16.9%	16.6%	17.1%					16.8%
	13.8%	12.7%	15.2%	16.1%
	200								376
											321
				278	243	272	284	285	244	282
		208	209
	163
	0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2		Q3	Q4
		FY02/19			FY02/20				FY02/21
Operating profit/Operating profit margin	Operating profit	Operating profit margin

200	7.8%		8.9%
	7.2%		7.0%	6.1%	6.7%					6.7%
5.2%				5.1%		4.8%	5.4%
						3.6%
100
			130			112	105				157
	78	79	100	100		89	103
47		69
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4

(margin)

30.0%

20.0%

10.0%

0.0%

(margin)

10.0%

5.0%

0.0%

FY02/19

FY02/20

FY02/21

9

FY02/21 Net Sales by Product/Service(*) Segment

					（Unit: million yen）
	FY02/20	Composition	FY02/21	Composition	% of year-
	results	(%)	results	(%)	earlier level
Cloud Integration	577	8.5	425	5.3	73.7
Resale	5,390	79.1	6,626	82.5	122.9
MSP	784	11.5	961	12.0	122.6
（Managed Service Provider）
Other	59	0.9	16	0.2	26.8
Total	6,811	100.0	8,029	100.0	117.9

※ The explanation of each services is described in detail at page 37

10

Quarterly Net Sales

The Cloud Integration services which had been affected by the COVID-19 situation increased its net sales by 35% compared to the 3rd quarter. MSP and Resale experienced good performance, and net sales of all the segments

surpassed those of the same quarter of the previous year.

（million yen）
2,500								Cloud Integration			Resale			MSP			Others
																						2
2,000																			15	8		1	253
																		216	3
																				226
													14	16		233	247
1,500										13	13	191	204
										162	170
				15	15	14	14										1,713				1,942
1,000				139	145										1,580		1,553
	17	17	16	124	132			1,100	1,084	1,282	1,309		1,549
	111
500	92	96	667	623	721	784
	491	514	529
0	79	77	96	118	131	137	157	183	171	145	136	124	106	68	106	143
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1			Q2			Q3	Q4	Q1	Q2	Q3	Q4
		FY02/18					FY02/19						FY02/20			FY02/21

* Due to the nature of AWS Resale transactions, total usage fees are recorded as net sales.

11

(Reference) Resale: Exchange rate trend

Although the continued strong yen affects Japanese yen based revenue, the strong yen is working positive for customers and the cloud usage is steadily and surely increasing. (next slide)

There is no impact on profits since purchase price will decrease as well.

(yen)

114

111.87

112 111.01

Q1		Q2		Q3		Q4

110	109.37			108.87	109.56	109.55	109.07	109.45
		108.64			108.83
			107.96
		107.75					107.53	107.74
108
			106.47				106.88
											106.24
										105.81
106										105.39
								104.61		104.6		104.48
										103.89
												103.52
104

102

100

98

03/19 04/19 05/19 06/19 07/19 08/19 09/19 10/19 11/19 12/1901/20 02/20 03/20 04/20 05/2006/20 07/20 08/20 09/2010/20 11/20 12/20 01/21 02/21

FY02/20

FY02/21

※ Mizuho Bank official market price : End of month TTM rate

12

Resale: AWS Usage Fees, Reserved Instances, Saving Plans(*)

Normal AWS usage fees grow organically without falling. Purchases of Reserved Instances and Saving Plans were same as years earlier.

(Unit: thousands of dollars)

Total AWS usage fees

Total for Reserved Instances (RI) and Savings Plans (SP)

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Normal AWS usage fees grow organically

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	FY02/19					FY02/20				FY02/21

* AWS service under which substantial discounts are offered to customers who pay a fixed reservation fee and commit to AWS usage for a certain period

13

Resale: Number of AWS Accounts, ARPU

(Unit: # of accounts)	No. of AWS accounts
1,500		1,424
	1,343
		1,273
1,250		1,184
		1,140

		1,058
		1,002
1,000		902
		807
750		701 726
	593	640
500	468 499 534

（Unit: USD）	ARPU*	* Obtained by dividing AWS usage fees,
including Reserved
		Instances, by number of customers.

16,000

14,000

12,000

10,000

8,000

6,000

4,000

250

2,000

0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY02/18

FY02/19

FY02/20

FY02/21

FY02/19

FY02/20

FY02/21

14

Cloud Integration: The trend of each index

The number of projects and customers were increased compared to the 3rd quarter.

They were also increased even compared to the cumulative period (Q1-Q4) and the same period (Q4) of previous fiscal year. Project unit price keeps one-million-yen level.

# of customers (companies) / # of projects

					# of
		Project unit price				# of projects
					customers

Project unit price (thousands of yen)

250

200

150

100

				145								2,500
											139
										131
						1,968
								119
				115	115						2,000
106	104	107	104		1,710	108	104		99
		93
					1,365	100	1,343	1,308		88	1,500
				1,191
			1,135					1,042		1,071
									1,029
		897		903
								809	773	1,000
745	740

50	63	62			82						62	68	77			79	500
60	60		61	58	56		53			59
		48			50
0																	0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
		FY02/18					FY02/19				FY02/20				FY02/21

15

MSP: SRE(*) Portion of MSP

The SRE, the dedicated team that handles everything from system construction to operation to support customer specific needs, portion of business has increased.

SRE

MSP MSP(SRE)

(Unit: thousands of yen)

CI	MSP	496,992		Approx.	464,203
	51%

*SRE: Site Reliability Engineering. The details are described at page 38, 39.

16

Stock Business(*)

(million yen)				One-time revenue		Recurring-revenue		Share of recurring-revenue businesses			(share)
2,500				businesses		businesses										98%
													96%
												93%	94%		94%	94%	96%
																94%
2,000
									90%	91%						92%
																	90%
1,500								87%
86%	87%		86%				87%									88%
	85%		85%
			84%											86%
				84%
1,000
																	84%
																	82%
500																	80%
																	78%
0																	76%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3	Q4
	FY02/18			FY02/19					FY02/20			FY02/21

• One-timesales from Cloud Integration, where sales are recorded at the time of customer acceptance, positioned as one-time revenue, is specified as "Flow Business" . Recurring sales from AWS monthly usage fees, monthly charges for proprietary services such as Cloud Automator, licensing fees for continued use of third-party software services, and MSP usage fees and maintenance fees for AWS server monitoring and backup services (all of which entail continued

AWS usage by companies) are specified as "Stock Business".

17

Life Time Value

The existing customers, who had been contracted with us, have a trend to increase our net sales (total of CI, Resale, MSP)

over the years.

(million yen)

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2018

FY2019

FY2017

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

FY2013

FY2014

FY2016

FY2017

FY2019

FY2011

FY2012

FY2015

FY2018

* The sales revenue before FY2017 is an estimated value based on re-calculated AWS resale revenue using recent results

18

Number of Employee Trend

Achieved original hiring plan of 22 people for this year (29 people were hired).

(Unit: employees)

200

				Sales, Marketing,			Manufacturing
	Director
			Admin staff			staff

157

150

141

			94	103		92
100
				90
	71		60
			52
50	40			43	57
			35	35
	25
0	6	7	8	8	8
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21

※The number of employees includes the number of temporary employees (part-time employee)	19

Analysis of Factors Affecting Operating Profit in FY02/21

The purchase cost has increased due to the increase in Resale services and the labor cost and personnel expenses have increased resulting from the active hiring. The operating profit increased 0.5% YoY.

Net sales increase: +1,217

FY02/20

Operating

profit

417

Resale

＋1,236

MSP＋177

Others -43

Cloud Integration

-152

Labor

expenses

＋ 170Manufacturing expenses -119

Work in process, etc…: -30	Cost of
Outsourcing expenses: -62
sales
Travel expenses: -20
＋1,079
Recruitment expenses: -12
Depreciation expenses: -8
Rent expenses on land and buildings: +10
Communication expenses: +8
Others: -4

Cost of sales

(Unit: million yen)

Increased purchasing due to higher sales in Resale services

Personnel expenses：+100 Tax and dues：+32 Communication expenses：+11 Advertising expenses：+10 Hiring expenses：+8

Rent expenses on land and buildings ：+5 Travel Expenses：- 17 Entertainment expenses：- 12

Provision of allowance for doubtful accounts：- 4 Others：+3

	Selling, general			FY02/21
	and administrative
	expenses ＋136			Operating
				profit
				419
	Selling, General and
Administrative expenses

Operating profit +2 million yen (+ 0.5% YoY.)

20

FY02/21 Financial Condition: Balance Sheet (Summary)

In addition to the increase in "current assets" and "total equity" based on the issuance and exercise of stock acquisition rights, the increase in "fixed assets" and "fixed liabilities" due to the increase in the valuation of investment securities. Retained earnings are also steadily accumulating.

			(Unit: million yen)
	FY02/20	FY02/21	Change
Current assets	3,004	8,999	5,994
Non-current assets	1,467	1,718	250
Property, plant and equipment	69	72	3
Intangible assets	100	112	12
Investments and other assets	1,297	1,532	234
Total assets	4,472	10,717	6,245
Total liabilities	1,437	1,862	425
Current liabilities	1,148	1,519	371
Non-current liabilities	288	342	54
Total net assets	3,035	8,855	5,820
Total liabilities and net assets	4,472	10,717	6,245

21

Current Ratio

Based on the increase in cash by exercising the stock acquisition rights, the current ratio exceeded 592% and liquidity on hand is in a good shape.

(million yen)

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

		Current				Current			Current ratio
		assets				liabilities

592%

262%8,999

166%

1,963		3,004
1,182	1,148	1,519
FY02/19	FY02/20	FY02/21

(ratio)

700%

600%

500%

400%

300%

200%

100%

0%

22

FY02/22 Earnings Forecasts

Although much anticipated, it would take same more time until the infection of the Covid-19 could be contained. Our business forecasts for the fiscal year ending February 2022 are also conservatively planned under this situation.

					（Unit: million yen）
	FY02/21	Composition	FY02/22	Composition	% of year-earlier
	results	(%)	forecasts	(%)	level
Net Sales	8,029	100.0	9,300	100.0	115.8
Gross profit	1,224	15.3	1,543	16.6	126.0
Operating	419	5.2	446	4.8	106.4
profit
Ordinary profit	410	5.1	471	5.1	114.8
Profit	482	6.0	326	3.5	67.7

* Since our business is a single segment of the cloud business, we do not disclose the earnings forecast for each segment.
For the forecast figures of AWS Resale as percentage of net sales, we have adopted the standard scenario of the fiscal 2021 dollar-yen exchange rate forecast report published by financial institutions,
which is 103 yen per dollar.	23

Company Profile

Company Profile *as of 2/28/2021

Company Name		Serverworks Co., Ltd.
Business Domain		System Planning/Development/Operation utlizing Cloud Computing
Founded		February, 2000
Capital		3,201,973,059 yen
Headquater		Agebacho 1-21,Shinjuku-ku, Tokyo, Japan
Office		Tokyo office ANNEX, Osaka, Fukuoka, Sendai
Number of Employees	149
Management		Ryo Oishi	CEO
		Takashi Hashiba	Senior Vice President
		Hiroyuki Oshio	Senior Vice Presidnet & CAO
		Ichiro Terajima	Outside Director
		Mikiya Inoue	Audit & Supervisory Board member
		Tsutomu Toyao	Audit & Supervisory Board member
		Akihito Mochizuki	Audit & Supervisory Board member
		Shigetoshi Heiho	Audit & Supervisory Board member
Affiliated company		Sky365 Co., Ltd.
Major Shareholders		Board Members, TerraSky Inc., NTT Communications Corporation, NTT Data Corporation
Certification		APN Premier Consulting Partner
		AWS Migration Competency Partner

AWS Digital Workplace Competency

AWS Managed Service Provider Program

AWS Well-Architected Partner Program

ISO /IEC 27001 (JIS Q 27001)

25

Management Introduction

President & CEO

Ryo Oishi

Oishi graduated from Tohoku University, majored in Economics, and joined Marubeni Corporation, which is one of the biggest "Sogo-Shosha". He engaged in establishing communication network related subsidiary as well as planning internet related business and sales. In Feburary 2000, he founded the company. After he started AWS business in 2009, Oishi became one of the first Cloud Evangelists in Japan and continue to evangelize Japanese market to use Cloud.

Senior VP

Takashi Hashiba

Hashiba graduated from Tokyo University of Agriculture, majored in Agriculture, and joined wholesale process food company, experiencing sales role. After joining our company in April 2006, he became head of sales and technical department and engaged in a large number of system installations. After starting AWS business, he continued engaging in numerous projects as well and provide huge contribute to expand our business. He became Senior VP in October 2013.

Senior VP & CAO

Hiroyuki Oshio

Oshio graduated from Kobe University, majored in Economics, and joined Marubeni Corporation. He engaged in planning and installation of Internet enabled systems. Then, he joined software venture company and became SVP at subsidiary company in abroad as well as General Manager of Marketing. After joined our company in October 2013, he served as a head of Business Development as well as back office team. Oshio became Senior VP in August 2014.

Outside Director

Ichiro Terajima

Terajima graduated from Tokyo University, majored in Engineering, and joined Sekisui Chemical Co., Ltd. He also studied at MIT and established AI venture company inside of the company, experienced wide variety of business roles. He became General Manager of Information Systems Dept. and served as a Chief of Information system group. He Joined TERRANET as a company representative. Terajima joined our company as Outside Director in November 2017.

26

About Amazon Web Services(AWS)

Market environment：About Public Cloud

A method of using software/Database/Server storage and other functions as a service via internet

On-premise

Public Cloud

Company

Individual Internet Company

In-house equipment (Data center)

Server procurement,Pay only for what you use operation and maintenance costs

28

Market environment：Public Cloud Classification

SaaS : Software as a Service	Example
Salesforce, Kaonavi,
Provide software package via internet
TeamSpirit, sansan etc…

IaaS : Infrastructure as a Service	Example
Provide hardware and ICT infrastructure via internet	AWS, Microsoft Azure

29

Market Environment: AWS Continues to Lead

Selected as a "Leader", the world's most visionary and excellent execution ability company, for

10th consecutive year at Gartner's Magic Quadrant for Cloud Infrastructure and Platform Services

A leader in the cloud computing world with largest market share. Based on the customers feedback, the company continues to provide new services and functional improvements one after another.

	Source:https://www.slideshare.net/AmazonWebServices/awsome-day-2019-keynote
Source:https://aws.amazon.com/jp/blogs/news/aws-named-as-a-cloud-leader-for-the-10th-
consecutive-year-in-gartners-infrastructure-platform-services-magic-quadrant/?nc1=b_rp

30

Market Environment: AWS Market Share

AWS still maintains its leadership position in the global cloud market share in 2020.

Source: https://www.gartner.com/en/newsroom/press-releases/2020-08-10-gartner-says-worldwide-iaas-	Source: https://www.srgresearch.com/articles/quarterly-cloud-spending-blows-past-30b-incremental-
public-cloud-services-market-grew-37-point-3-percent-in-2019	growth-continues-rise

31

Market Environment: AWS Market Share

AWS continues to grow sustainably. Operating profit rose to about 59% of

Amazon's total operating profit.

(million dollars)	Net Sales					AWS		North America				International
100,000
80,000
60,000
40,000
20,000
	5,442	6,105	6,679	7,430	7,696		8,381	8,995	9,954	10,219	10,808	11,601	12,742
0
	Q1	Q2	Q3	Q4	Q1				Q2				Q3	Q4	Q1	Q2	Q3	Q4
			FY12/18										FY12/19			FY12/20
(million dollars)	Operating Profit							AWS				International				North America
8,000
7,000
6,000
5,000
4,000
3,000
2,000
			2,077	2,177	2,223	2,121	2,261	2,596	3,075	3,357	3,535	3,564
1,000		1,400	1,642
0
	Q1	Q2	Q3	Q4	Q1				Q2				Q3	Q4	Q1	Q2	Q3	Q4
(1,000)
(2,000)

Source:https://ir.aboutamazon.com/quarterly-results	32

Market Environment: Size of Japanese Cloud Service Market

The Japanese cloud service market was valued at 2.4 trillion yen (+21.4% YoY) in FY2019, with the public cloud market accounting for 812.1 billion yen (+34.1% YoY).

The growth momentum is projected to continue in FY2020 and beyond,

and the public cloud market is projected to expand to roughly 2.4 trillion by FY2024 (CAGR of 24.4%).

100 million yen

Public cloud (Saas, Faas, Paas, Iaas)

Private cloud (community cloud, dedicated cloud, on-premisesprivate cloud)

FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024

Source:https://www.m2ri.jp/release/detail.html?id=434

33

Market Environment: Size of Japanese Cloud Service Market

The three leading cloud companies (AWS, Microsoft Azure, and GCP) continue to see growth in service usage. AWS remains the leader in the PaaS and IaaS markets.

In the IaaS market, which offers solutions often used by companies migrating from an on-premises environment, AWS leads with a usage rate of 51.9% (+4.8% YoY), and over half of the Japanese companies adopting

an IaaS solution opt for AWS.

[Configuration policy for new systems]	[Service usage rates for AWS, Microsoft Azure, and GCP]

Usage rate	PaaS usage rate

Over 1,000 people (n=1,502)

100-999 people (n=1,482)

1-99 people (n=2,915)

Usage rate		IaaS usage rate

										2019		2020		2019		2020
						Mainly on-premises cloud
Mainly public cloud		Mainly private cloud		Mainly hybrid cloud		Mainly non-cloud environment

Source:https://www.m2ri.jp/release/detail.html?id=434

34

Our Business Model

Business Model

Provide complete services for cloud journey, from Cloud strategy consultation to actual deployment and

migration as well as post-migration operating services.

Customer

Assessment

Establishing	Cloud Infrastructure
implementation	Design & deployment
plan

Cloud Operation

Provide complete service toward all cloud journey phases

Our service

Resale

Cloud Integration

MSP・SRE*

"Flow" business

"Stock" business

*SRE: Site Reliability Engineering. A concept advocated by Google Inc. in 2003 to operate an expanding large-scale IT system. The mission is to improve performance, availability, elasticity, security, etc. in order to secure the reliability of the IT system and build a system that can be continuously improved by introducing various tools and strengthening collaboration with customers.

36

Core Service Overview

Providing variety of services around AWS.

Cloud Integration

Providing service to create Cloud migration strategy for migrating the system, which has been managed in on-premise environment, to cloud environment, as well as Infrastructure design, Establishment/deployment support services. We provide optimum design for customers from setting business objectives using Cloud, to actual migration, operation planning after cloud implementation.

Re-sale

We are reselling AWS centered cloud services to our customers as a solution which we add our unique values.

Especially, we develop and provide our unique application, "Cloud Automator", a service that automates AWS operations, to our customers. By combining these solutions with AWS, we maximize the benefit of AWS to our customers.

MSP（Managed Service Provider）

We provide 24x7 operation services, such as system performance monitoring, failure monitoring, recovery operation in the event of a failure, back-up operation for quick recovery from the failure, and security patches application for AWS infrastructure to middleware level.

37

Difference between SRE and Conventional MSP

For specific large customers, we set up a dedicated team to support customer needs which cannot be handled by the

standard MSP service and provide service from system construction to operation and maintenance.

Cloud Integration

• Mainly provide support for migrating from on-premise environments to the Cloud, regardless of new/existing customers.
• After completing the cloud migration, our MSP will take after the customer, when customer ask us to provide operation/maintenance services.

SRE

CI MSP

MSP

The standard operation service specialized for the Cloud environment, which we have been providing to customers.

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Cloud Migration Lifetime

In the process from initial implementation(migration) to stable operation, the importance of SRE, which supports customers unique needs, is increasing.

Implementation

CI

Growth period

Large-scale customer who needs individual support

SRE

Small to mid scale customer using standard operation service

Maturity / stable operation

MSP

Standardized operation service

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Business Model Diagram

Amazon Web Services, Inc.

AWS purchase

		Resale
Cloud Integration	AWS	Cloud Automator
	Resale

AWS Implementation support		AWS value-add resale

(Affiliated company)

Sky365 Co., Ltd.

Subcontracting

MSP・SRE

(Managed Service)

Maintenance/support service

Enterprise customers

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Our Strength

Unique Strengths :1

Advanced

Select

Registered

AWS Certified Top Tier Partner

What is a Premier Consulting Partner?

• Top-tierpartnercertified among tens of thousands of AWS partners
• 126 partners worldwide, only 10 companiescertified in Japan
• Serverworks has retained certification

consistently since 2014

• Iret, Inc. , ITOCHU Techno-Solutions Corporation, SCSK Corporation, NTT Data Corporation, Classmethod, Inc. , Serverworks Co., Ltd., TIS Inc. , NEC Corporation, Nomura Research Institute, Ltd. , Fuji Soft Inc.

* As of June, 2020

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Unique Strengths 2	Advanced Technical Capabilities	* As of March 31, 2021

Employing many highly skilled engineers with advanced expertise backed by AWS certifications

(people)		(people)
50	- Solution Architect Professional	34	- Security Specialty
29	- DevOps Engineer Professional	13	- Big Data Specialty
84	- Solution Architect Associate	23	- Advanced Networking Specialty
51	- DeveloperAssociate	8	- Machine Learning Specialty
59	- SysOps Associate	20	- Alexa Skill Builder Specialty
		13	- Database Specialty
		7	- Data Analytics Specialty

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Unique Strengths 2 Advanced Technical Capabilities

Receive various certifications from AWS for our high technical skills and our achievement in specific fields.

AWS Managed Service (MSP) Partner

The partner who can provide total AWS cloud services from planning/designing to actual building/migrating as well as operation and optimization as a business solution to customers. Since we have received MSP partner certification in 2014 as a 1st partner in Japan, we have been continuously receiving the certification, meeting strict auditing standards released in 2019.

AWS Migration Delivery Partner

The partner who can assist customers at each stage of migrating existing applications to AWS and provide staff, tools and education as part of professional services.

AWS Digital Workplace Competency

A technical certification program for AWS partners with proficient technology and a proven track record of leading customers successful in specialized solution areas. Awarded to partners who have expertise in AWS desktop and application streaming solution projects and have a track record of providing those solutions to customers. We are the 1st partner in Japan to achieve completion of the program.

AWS Well-Architected Partner Program

The partner who can appropriately evaluate customer's AWS
architecture by actively using AWS Well-Architected framework
backed by in-depth knowledge related to AWS implementation
support as well as numerous actual project experiences.	44

Unique Strengths 3 Solid Track Record

Track record of over 10,100 projects for over 890 companies*, mainly medium-sized and large companies.

*As of March 31, 2021

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continuously improving

Unique Strengths 4 Front Runner advantage

Maintaining and expanding the growth cycle of increasing stock businesses by leveraging our name recognition in the AWS industry as a leading company.

A virtuous cycle has been created in which our business growth is further accelerated by cooperation with AWS.

As AWS, led by a powerful Amazon brand, has grown by

40+% compared to last year, our company recognition

as the highest ranked AWS partner has been as well. This situation leads to create pull-lead(*) for receiving AWS implementation support

project orders and leading to grow our stock businesses.

We publish more than 10 of these cases annually and this creates virtuous cycle that further raises AWS visibility in the enterprise market.

Improve

AWS brand recognition

Publish	Improve
customer	our company
case studies	recognition

Increase in	New
business
Stock
creation from
business
pull-lead

* The situation that customers are coming to us, instead of aggressively reaching out to customers from us

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Unique Strengths 5 Our Original Service "Cloud Automator"

Based on our depth knowledge in AWS constructions and operations, we develop original AWS operation automation service and provide it to our customers.

Contribute to both low-cost & high-quality operations and increase in Cloud Integration project orders.

								Feature 2
		Feature 1
	(Job Automation feature)				(Configuration review featur	e)
						Automatic AWS Config check
Automate AWS Operation
								Periodically review
		Automate AWS
		essential operations				AWS resources to
		such as back-up,				check whether it is
		Instance start/stop,				configured based on
		etc…				designated rules

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Unique Strengths 5 Our Original Service "Cloud Automator"

Examples:

We have a track record		To improve IT governance,
of evolving services and	Implement Cloud	we decided for full	Optimizes costs by
specifications in	Automator for addressing	adoption of AWS	automatically switching
response to changes in	automation,	By combination of using	to the DR site by
AWS as well as user	standardization,	Cloud Automator, it	automatically launches
demands. We transfer	simplification, efficiency,	enables to achieve both	instances, only when
our know-how and	and risk elimination of	operation automation and	needed, by using Cloud
experiences to internal	AWS operations	operation efficiency at the	Automator
resources		same time

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Growth Strategy

Growth Strategy: Winning Large Migration Projects

In Japanese market, more than half of the companies still do not use Cloud. We will continue to accelerate growth by acquiring large-scale cloud migration projects that have not yet been cultivated.

An advisor who has a track record of implementing AWS in the financial field will identify the issues and clarify the items and while providing practical cooperation as necessary, advisor will support the customers to make sure to enjoy the benefits, such as speeding up the businesses as well as mitigation of IT system operation load, based on implementing public cloud.

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Growth Strategy: Support to Establish New Normal Work Style

Leverage Amazon WorkSpaces, build company-wide telework environment in just 3 weeks

Implement more than 1,000 Amazon WorkSpaces for expanding telework environment

Application

Storage

NTT Smile Energy Inc. Has built a company-wide telework environment in just three weeks by utilizing AWS Client VPN and Amazon WorkSpaces. In addition, the company implemented Amazon Connect to improve call center operations and transformed it to cloud based call center. Operators involved in telephone support operations can now work telework basis.

To expand the telework environment at Yokogawa Electric Corporation, we supported to build 1,400 Amazon WorkSpaces environment. Detailed design started in mid-March 2020, and 1,000 units were built by beginning of April, which was less than a month. After that, gradually built and supported the implementation and 1,400 Amazon WorkSpaces environment were established by mid-May.

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Growth Strategy: Provide New Services Using Cloud

Build an automatic telephone order dialing system using IVR (Interactive voice response) provided by Amazon Connect

A trial is in progress to automate SHINSEI BANK existing outbound call operations

with Amazon Connect

Amazon Connect starts a call automatically

Only when a customer answers the phone, connected to the operator

Built an automatic telephone order dialing system utilizing Amazon Connect for Pal System Co-op Federation. It greatly contributed to automate the response to support sudden increase of the order calls due to the request to refrain from going out caused by COVID-19 spread.

A trial of Amazon Connect is in progress to improve number of outbound calls and dialogs.

Enabled to reduce the routine burden on operators and create a follow-up system for customers.

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Caution for forward-looking statements

The materials and information provided in this announcement include so-called"forward-looking statements". These are based on current expectations, projections and risky assumptions, and include uncertainties that could result in different result from these statements.

These risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations.

In the future, even if there is a new information and/or a future event, we are not obligated to update or modify the "forecast information" including in this announcement.

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