Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

July 28, 2022

Consolidated Financial Results
for the Three Months Ended June 30, 2022
(Under Japanese GAAP)
Company name:
Systena Corporation
Listing:
Tokyo Stock Exchange
Securities code:
2317
URL:
https://www.systena.co.jp/
Representative:
Kenji Miura, Representative Director and President
Inquiries:
Hiroshi Kotani, Director
Telephone:+81-3-6367-3840
Scheduled date to file quarterly securities report:
August 9, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2022

17,627

15.0

1,821

3.8

1,879

10.4

1,285

12.3

June 30, 2021

15,331

3.2

1,755

(0.6)

1,702

(7.0)

1,144

(8.2)

Note: Comprehensive income

For the three months ended June 30, 2022:
For the three months ended June 30, 2021:

Basic earnings
per share
Three months ended¥1,348 million¥1,152 million[17.0%][(5.6)%]

Diluted earnings
per share
Yen

Yen

June 30, 2022

3.32

–

June 30, 2021

2.95

–

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Basic earnings per share has
been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

June 30, 2022

41,78130,194

71.2

76.81

March 31, 2022

43,47730,173

68.5

76.83

Reference:%

Yen

EquityAs of June 30, 2022:¥29,755 million
As of March 31, 2022:¥29,762 million
Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Net assets per share has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023–

Fiscal year-end

Total

Yen

Yen

10.00

–

3.50

–

4.00

–

4.00

8.00

–

Fiscal year ending
March 31, 2023
(Forecast)

Notes: Revisions to the forecast of cash dividends most recently announced: None
The Company implemented a four-for-one common stock split effective December 1, 2021. The stated year-end dividend
per share for the fiscal year ended March 31, 2022 takes the said stock split into account. The total annual dividend for the
fiscal year ended March 31, 2022 is not shown because a simple total cannot be calculated due to the implementation of thestock split. The annual dividend per share for the fiscal year ended March 31, 2022 that does not take the stock split into
account is ¥24 (the interim dividend of ¥10 per share and year-end dividend of ¥14 per share).

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)
Net sales
Millionsof yenFiscal year ending

Operating profit%

Millionsof yen%(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Ordinary profit
owners of parent
per share
Millionsof yen71,4509.5
10,28012.9
10,280March 31, 2023
Note: Revisions to the earnings forecasts most recently announced: None%

Millionsof yen

%

Yen

19.8

7,000

16.8

18.07

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

450,880,000 shares

As of March 31, 2022

450,880,000 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2022

63,483,788 shares

As of March 31, 2022

63,483,788 shares(iii) Average number of shares outstanding during the period
Three months ended June 30, 2022

387,396,212 shares

Three months ended June 30, 2021

387,374,644 shares

Notes: 1. The Company has introduced a stock compensation plan, and in calculating the number of treasury shares of commonshares at the end of the period and the average number of shares outstanding during the period, the number of treasury
shares includes shares of the Company held by Japan Custody Bank, Ltd. (the Trust Account) as trust assets for the“Trust for Granting Shares to Directors” and the “Trust for Granting Shares to Executive Officers.” The number oftreasury shares held by the Trust Account included in the number of treasury shares at the end of the period ended June30, 2022 and March 31, 2022 was 1,612,300 shares, respectively, and the number of treasury shares held by the Trust
Account excluded from the calculation of the average number of shares outstanding during the three months ended June30, 2022 and three months ended June 30, 2021 is as follows: the average number of common treasury shares held by
the Trust Account for the three months ended June 30, 2022 and three months ended June 30, 2021 were 1,622,086
shares and 1,634,000 shares, respectively.
2. The Company implemented a four-for-one common stock split effective December 1, 2021. Number of shares has been
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

* Quarterly financial results reports are exempt from quarterly review by certified public accountants or an
audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements in this material, including earnings forecasts, are based on information currently
available to the Company and on certain assumptions deemed reasonable. Actual results may differ
significantly due to various factors. For assumptions underlying the forecast and cautions regarding the use of
earnings forecasts, please refer to “1. Qualitative information on quarterly financial results, (3) Forwardlooking forecasts, such as consolidated earnings forecasts” on page 6 of the Attached Materials.

Attached Materials Table of Contents
1. Qualitative information on quarterly financial results................................................................................ 2(1) Operating results for the period under review ...................................................................................... 2(2) Financial position ..................................................................................................................................... 5(3) Forward-looking forecasts, such as consolidated earnings forecasts .................................................. 6
2. Quarterly consolidated financial statements ................................................................................................ 7(1) Quarterly consolidated balance sheet .................................................................................................... 7(2) Quarterly consolidated statement of income and quarterly consolidated statement ofcomprehensive income ............................................................................................................................. 9
Quarterly consolidated statement of income.......................................................................................... 9
Quarterly consolidated statement of comprehensive income ............................................................. 10(3) Notes to the quarterly consolidated financial statements ................................................................... 11(Notes on premise of going concern) ....................................................................................................... 11(Notes on substantial changes in amount of shareholder’s equity) .......................................................... 11(Changes in accounting policies).............................................................................................................. 11(Segment information, etc.) ...................................................................................................................... 11
3. Supplementary information ......................................................................................................................... 13(1) Production results .................................................................................................................................. 13(2) Order results........................................................................................................................................... 13(3) Sales results ............................................................................................................................................ 13-1-

1. Qualitative information on quarterly financial results
Matters discussed here that are not historical fact reflect judgments made as of the end of the quarter of the
fiscal year under review.
(1) Operating results for the period under review
During the first quarter of the fiscal year under review (April 1, 2022 to June 30, 2022), the Japanese economy
was on a gradual recovery trend, particularly individual consumption, as restrictions on movement due to the
COVID-19 pandemic were loosened and economic and social activities returned to normal. However, theeconomic outlook remains uncertain as inflationary pressure has grown due to the rapid weakening of the yen
and increase in resource and raw material prices accompanying Russia’s invasion of Ukraine.
At the same time, the Group further accelerated its business “scrap and build” activities, management’s corepolicy, and even in growth fields, the Group quickly introduced management resources into markets that canbe won by leveraging its strengthens.
Furthermore, efforts were made to aggressively move forward with not only reinforcing its own sales
capabilities but also alliances formed with sales-capable partners and to strengthen sales of its own products
and services. The Group made investments to expand the size of its businesses, including continuing toactively recruit new college graduates and increasing office floor space.
In the Solution Design Business, the Group continued to focus on expansion in the in-vehicle, Internet
business, IoT, robotics/AI, and digital transformation (DX) fields, where significant growth is expected. Here,the Group worked to further increase orders and improve profitability by making greater use of near-shoredevelopment at regional bases and off-shore development in Vietnam.
In the Framework Design Business, the Group deployed its system development expertise from the financial
sector to customers in the public and distribution/services sectors, and worked to increase orders in thebusiness application development and infrastructure (cloud) architecture operations.
In the IT Service Business, the Group grew its customer pool and sales volumes by further strengthening
alliances with Group companies and partner companies, as well as by promoting the development of IT service
products through the use of inbound sales.
In the Business Solution Business, the Group focused on service businesses, not product-oriented businesses,
and further strengthen its recurring revenue businesses, centered on the subscription business and systemdevelopment and support.
In the Cloud Business, which is responsible for promoting the subscription business model, the Group
expanded the functionality of its in-house products Canbus.1 and Cloudstep1 and actively promoted sales
through web marketing. The Group also founded MINGAL, a joint venture with MJE Inc., which has beencollaborating on biz-us Cloud powered by Canbus. since last year, and launched efforts to promote DX forlicensed professionals by melding the Company’s development skills and experience providing cloud services
with MJE’s sale capabilities.
As a result of the above, consolidated results for the first quarter of the fiscal year under review were net
sales of ¥17,627 million (up 15.0% year on year), operating profit of ¥1,821 million (up 3.8% year on year),ordinary profit of ¥1,879 million (up 10.4% year on year), and profit attributable to owners of parent of ¥1,285
million (up 12.3% year on year).
1.

Canbus. and Cloudstep are Sytena’s original services.

The following describes performance by segment. Note that net sales for each segment include inter-segment
net sales or transfers.
(i)Solution Design Business
The Solution Design Business is divided into five categories: in-vehicle, social infrastructure, internet
business, products, and DX services. Net sales in this business amounted to ¥5,325 million (up 12.0%
year on year), and operating profit was ¥689 million (down 0.9%).

(In-Vehicle)
In the in-vehicle category, which primarily involves the development of elements related to mobility asa service (MaaS), autonomous driving, in-vehicle infotainment, telematics,2 and electronic control units(ECUs), the Group won orders for MaaS-related services thanks to differentiation from competitors
owing to technological capabilities that leverage the Group’s experience in the telecommunications
business. Demand for MaaS is expected to grow stronger and stronger. Furthermore, the Group has-2-

positioned these areas as long-term
priority focus areas, and through its participation in the MONET Consortium,3 the Group aims to further
enhance its business value in the mobility field.
2.
3.

Telematics is a term created from the combination of “telecommunication” and “informatics.” It
is a generic term for the provision of services using mobile communication systems, such as
mobile phones, to automobiles and other mobile objects.
MONET Consortium is a consortium established by MONET Technologies Inc., a joint venture
between SoftBank Corp. and Toyota Motor Corporation, to promote next-generation mobility
services, solve social issues in mobility, and create new value.

(Social Infrastructure)
In the social infrastructure category, which supports the mechanisms of society, including
telecommunications infrastructure, payment infrastructure, transportation infrastructure, power grids,
and more, and enriches people’s lives, the Group won smart-city related orders be leveraging its
experience with MaaS acquired in the in-vehicle field. The Group will also continue to focus on 5Grelated projects because there were numerous inquiries regarding service development that makes use of
5G infrastructure.
(Internet Business)
In fields related to the Internet business, such as Internet services and e-commerce, the Group madestrong progress with the development of services for 5G Internet services, cashless payments in ecommerce and system, and development and verification related to the utilization of personal data.
Having received numerous inquiries from companies trying to further strengthen their services
considering recent social conditions, the Group will focus on strengthening total solutions that can extend
from planning to development, verification, and customer support.
(Products)
In fields related to product development, including smartphones, home appliances, and robotics, theGroup received numerous inquiries related to the keywords “AI” and “IoT,” strengths of the Group. In
addition to product development and quality verification, the Group’s ability to provide one-stop support
throughout the product lifecycle, including environment construction and support, also differentiates theGroup from its competitors and has helped it steadily develop new fields, such as robots.
(DX Service)
In the DX service field, the Group has received many inquiries from companies forced to implement
system responses to sudden changes in work styles, including telework, as demand increases forundertaking DX (the concept of improving all aspects of life and business through permeation of
information technologies). Furthermore, there was an increase in the number of inquiries regarding ourservice Remo-oTe, which leverages our business experience and total solution strengths acquired invarious fields. The Group will continue to actively develop its services.
Regarding the status of the Group’s response to COVID-19 and its impact on activities within thisbusiness, the Group has been able to successfully mitigate risks so as to ensure the continuation ofbusiness by shifting to telecommuting in numerous business areas. The Group will continue to promotebusiness by taking rigorous infection control measures.
(ii) Framework Design BusinessIn this business, the Group harnessed its track record in application development in the financial sector
to expand the scope of its offerings to customers in the public sector, distribution/services, and in social
infrastructure, leading to an increase in orders.
In the financial sector, the Group provides core system development services for customers in thebanking industry and life and non-life insurance industries. In addition to long-term development workin areas such as contract management systems and accounts systems, the Group achieved greater sales
by expanding its scope of services to include Internet banking and DX-related systems such as theconstruction of data utilization infrastructures.

-3-

In the public sector, projects related to taxpayer identification numbers (My Number) and education
were firm. New projects are being won in the areas of system development, infrastructure construction,and operation and maintenance. Going forward, the Group will continue to actively introduce this into
several government cloud projects and other types of projects and further grow them into new businesspillars.
In addition, for general corporate clients, the Group won commissioned development projects andmoved forward with proposals for business improvement projects using DX solutions. The Group’s total
system support proposals, from proof of concept support in the system planning stages to operations after
system development, have led to an increase in orders.
As a result, net sales in this business amounted to ¥1,422 million (up 25.2% year on year) and operating
profit was ¥238 million (up 55.2% year on year).
(iii) IT Service BusinessAs more and more companies, regardless of industry, are promoting DX and reforming work styles, there
is movement to restructure and optimize IT environments, leading to greater demand for IT outsourcing
from companies that are creating new business models.
Under these circumstances, the Group expanded its core businesses—contract IT support and PMO
services, including assessment and consulting—conducted sales of IT products, including IT training
and security services, and focused on providing services more directly linked to customers’ rapidbusiness growth.
In the software testing services business, the Group worked to increase orders and improve profitability
by offering testing services across all processes, from upstream quality control process consulting todownstream debugging, to not only customers in the entertainment field who provide consumers with
web content, apps, and mobile games but also customers in the enterprise field who provide businesssystems and information systems to companies.
In terms of promoting engagement of persons with disabilities, the Group focused on capturing a broad
range of service projects, mainly BPO ones, in order to further create an environment in which theirindividual abilities and individuality are understood and they can engage in work that provides greater
value added.
With regard to measures against COVID-19 within this business, the Group continues to not only shift
from a full-time, on-site work style to telecommuting and remote service provision but also undertake
sales activities based on inbound sales.
As a result, net sales in this business amounted to ¥4,316 million (up 18.4% year on year) and operating
profit was ¥526 million (up 17.3% year on year).
(iv) Business Solution Business
For this business, where the Group is mainly engaged in B2B sales of IT-related products and system
integration services mainly for foreign-affiliated and medium-sized companies, the outlook is uncertain
because of the war in Ukraine, price increases due to the weak yen, and delays in delivery of products
on account of semiconductor shortages. Even so, some companies have started to move as quasi-state of
emergency measures are lifted, and the number of projects related to new work style reforms to
implement a “with corona virus” mindset, and the use of DX to increase productivity, reduce costs, andincrease competitiveness are gradually trending upward.
Specifically, the system integration business was able to win a number of orders for various services
including lift and shift, which is a type of cloud migration, and server relocations.
In addition, the Group successfully won orders for not only system development but also maintenanceand operation projects to digitalize corporations’ businesses by making use of RPA and data linkage tools.
Since the Group is seeing Windows 10 replacement demand pick up among client businesses, theGroup will continue to move forward with leading proposals while taking into consideration higher
product prices and delays in delivery.
As a result, net sales in this business amounted to ¥6,267 million (up 14.0% year on year) and operating
profit was ¥358 million (down 11.3% year on year).
(v) Cloud businessIn this business, where the Group provides cloud solutions and original services to companies and otherentities, the Group received many inquiries regarding its Canbus. DX platform from companies urgently
seeking to implement telecommuting and other types of work style reforms. In particular, the Group not-4-

only sold licenses to companies seeking to shift to data-driven operations, but also received many orders
for integration projects, including operational system replacement and system integration. Taking this
into consideration, the Group offered an easy system integration service that combines new functions
and the remote outsourcing service Remo-oTe so that even more companies can undertake digitaltransformations, and this resulted in an increase in inquiries. Going forward, the Group will continue topromote aggressive investment and sales reinforcement in this priority offering area.
Turning to Cloudstep groupware, which is integrated with Google Workspace and Microsoft 365, there
has been an increase in inquiries regarding rebuilding the groupware architecture which is suited tocurrent work styles as Google Workplace is rebranded. At the same time, system integration, an area ofstrength for the Group, differentiates the Group from its competitors and results in orders.
As a result, net sales in this business amounted to ¥392 million (up 4.5% year on year) and operating
profit was ¥63 million (down 6.5% year on year).
MINGAL, which was established on June 1, 2022, is included in the Cloud Business reporting segment.
(vi) Overseas Business
The Company’s U.S. subsidiary received repeat orders from Japanese-affiliated firms located in Silicon
Valley for proof of concept development and verification, which checks the effectiveness of elemental
technologies of Silicon Valley start-up companies. In addition, for subscription services, there were a
growing number of cases involving smart factories that employ AI and IoT, and more and morecompanies are introducing Canbus., a DX solution with a track record in Japan.
While there is strong movement to restore economic activity following the COVID-19 pandemic, somecompanies are choosing to introduce hybrid work while others are selecting to have all employees returnto the office, and the Group will continue to undertake proactive sales activities that are either face toface or web based depending on the customer.
Furthermore, ONE Tech, Inc., a U.S. company that the subsidiary has invested in, has entered into a
partnership agreement with Renesas Electronics Corporation and others to provide its proprietary AI
MicroAI™, and has formed alliances with several microcontroller unit (MCU) manufacturers and isactively engaged in joint sales.
StrongKey Inc., another U.S.-based company the subsidiary has invested in, is moving forward withsales activities related to Tellaro, its enterprise security product, and is focusing on attracting new
inquiries and winning ongoing orders from client companies based on its capabilities in data encryption
and strong FIDO authentication.
In this business, which is still in the investment stage, net sales amounted to ¥33 million (down 17.4%
year on year), and the operating loss was ¥10 million (versus operating loss of ¥3 million in the previous
fiscal year).
(vii) Investment & Incubation Business
GaYa Co., Ltd., operates social games developed in-house and designs and develops businessapplications for smartphones and tablets. In the first quarter of the fiscal year under review, the company
worked on the development of the new horse racing game application Keiba Densetsu PRIDE, andreleased it at the end of June as scheduled after incorporating feedback obtained in the closed β test into
the game. The release entailed advertising expenses, and focus will now turn to holding various types of
in-game events and undertaking additional development and operation. Furthermore, there is firm
commissioned development from existing customers, and the Group will continue to move forward withstabilizing the business.
As a result, net sales in this business amounted to ¥33 million (down 18.4% year on year) and theoperating loss was ¥45 million (versus operating loss of ¥12 million in the previous fiscal year).
(2) Financial position(Assets)
Total assets at the end of the first quarter of the fiscal year under review amounted to ¥41,781 million (versus¥43,477 million at the end of the previous fiscal year), a decrease of ¥1,695 million from the end of theprevious fiscal year. Current assets amounted to ¥36,343 million (versus ¥38,002 million at the end of theprevious fiscal year), a decrease of ¥1,658 million from the end of the previous fiscal year. This was mainly
due to a ¥1,681 million decline in notes and accounts receivable - trade, and contract assets. Non-current
assets amounted to ¥5,437 million (versus ¥5,475 million at the end of the previous fiscal year), a decreaseof ¥37 million from the end of the previous fiscal year. Property, plant and equipment amounted to ¥1,144-5-

million (versus ¥1,058 million at the end of the previous fiscal year), an increase of ¥85 million from the endof the previous fiscal year. Intangible assets amounted to ¥311 million (versus ¥278 million at the end of theprevious fiscal year), an increase of ¥33 million from the end of the previous fiscal year. Investments andother assets amounted to ¥3,981 million (versus ¥4,138 million at the end of the previous fiscal year), a
decrease of ¥156 million from the end of the previous fiscal year. This was mainly due to a ¥263 million
decrease in deferred tax assets and a ¥86 million increase in investment securities.
(Liabilities)
Total liabilities amounted to ¥11,587 million (versus ¥13,303 million at the end of the previous fiscal year),a decline of ¥1,716 million from the end of the previous fiscal year. This was mainly due to a ¥1,107 million
decline in income taxes payable, a ¥994 million decline in accounts payable - trade, a ¥594 million decline
in provision for bonuses, and a ¥507 million increase in accounts payable - other, and accrued expenses.
(Net assets)
Net assets amounted to ¥30,194 million (versus ¥30,173 million at the end of the previous fiscal year), an
increase of ¥20 million from the end of the previous fiscal year. This was mainly due to profit attributable toowners of parent of ¥1,285 million, an increase in foreign currency translation adjustment of ¥70 million, an
increase in non-controlling interests of ¥27 million, and dividends of surplus of ¥1,361 million. As a result,the equity-to-asset ratio increased 2.7 percentage points from the end of the previous fiscal year to 71.2%.
(3) Forward-looking forecasts, such as consolidated earnings forecasts
There have been no changes to the earnings forecasts for the full-fiscal year ending March 31, 2023 releasedon May 11, 2022.
If there are revisions in the future, notification will be promptly made.

-6-

2. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable from subsidiaries andassociates
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

As of June 30, 2022

21,657

21,685

14,323

12,642

1,151
880
(11)
38,002

803
1,223
(11)
36,343

398
489
97
–
72
1,058

442
472
97
82
48
1,144

270
5
2
278

248
61
2
311

1,775

1,862

575

613

1,513
817
30
(575)
4,138
5,475
43,477

1,533
554
31
(613)
3,981
5,437
41,781

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - other, and accrued expenses
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for share-based compensation
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-8-

As of June 30, 2022

5,696
1,550
2,076
1,525
1,348
977
13,175

4,702
1,550
2,584
418
753
1,439
11,4489730
128
13,30310730
138
11,5871,513
6,025
27,309(5,042)29,8061,513
6,023
27,232(5,042)
29,727

(25)
(18)
(43)
411
30,17343,477

(24)
52
28
439
30,194
41,781

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income(Millions of yen)Three months ended
June 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of investment securities
Gain on investments in investment partnerships
Share of profit of entities accounted for using equity
methodSubsidy income
Commission income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of investment securities
Share of loss of entities accounted for using equity
methodProvision of allowance for doubtful accounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-9-

Three months ended
June 30, 2022

15,331
11,624
3,707
1,952
1,755

17,627
13,400
4,226
2,405
1,821

2
7
–
48

5
0
14
–

–

13

6
0
10
76

3
0
22
61

1
74

1
–

16

–

34
0
0
128
1,702
1,702
295
265
560
1,142
(1)
1,144

–
–
1
3
1,879
1,879
340
262
603
1,276
(8)
1,285

Quarterly consolidated statement of comprehensive income(Millions of yen)Three months ended
June 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Three months ended
June 30, 2022

1,142

1,276

12
(1)

0
92

(0)

(21)

9
1,152

71
1,348

1,154

1,356

(1)

(8)

(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
No items to report.
(Notes on substantial changes in amount of shareholder’s equity)
No items to report.
(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) (hereinafter, “Fair Value Measurement
Accounting Standard Implementation Guidance”) from the beginning of the first quarter of the fiscal
year under review, and it will apply new accounting policies provided for by the Fair Value
Measurement Accounting Standard Implementation Guidance prospectively in accordance withtransitional measures provided for in paragraph 27-2 of the Fair Value Measurement AccountingStandard Implementation Guidance. This had no impact on the quarterly consolidated financial
statement.
(Segment information, etc.)
Segment information
I First quarter of previous fiscal year (from April 1, 2021 to June 30, 2021)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

374

19

19

–

15,331

10

0

21

21

(157)

–

3,646

5,495

375

40

40

(157)

15,331

448

404

67

(3)

(12)

0

1,755

IT Service
Business

Business
Solution
BusinessCloudbusiness

1,136

3,556

5,485

13

–

90

4,753

1,136

695

153

Solution
DesignBusiness

Framework
DesignBusiness

4,740

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total
Segment profit(loss)(Note)For segment profit (loss), adjustments are made against operating profit on the consolidated statement ofincome.

2. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.

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II First quarter of fiscal year under review (from April 1, 2022 to June 30, 2022)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

5,309

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

392

15

24

–

17,627

5

0

18

9

(163)

–

4,316

6,267

392

33

33

(163)

17,627

526

358

63

(10)

(45)

–

1,821

IT Service
Business

Business
Solution
BusinessCloudbusiness

1,422

4,202

6,261

15

–

114

5,325

1,422

689

238

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total
Segment profit(loss)(Note)For segment profit (loss), adjustments are made against operating profit on the consolidated statement ofincome.

2. Matters related to changes in reportable segments
MINGAL, which was established on June 1, 2022, is included in the Cloud Business reporting
segment.
3. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.

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3. Supplementary information
Production, order, and sales
MINGAL, which was established on June 1, 2022, is included in the Cloud Business reporting segment.
(1) Production results
Production results per business segment for the first quarter of the fiscal year under review are as follows.
Business segment
Production (Millions of yen)
Year-on-year change (%)
Solution Design Business

3,509

110.4

Framework Design Business

1,011

124.3

IT Service Business

3,126

117.1

274

145.5

7,921

115.6

Business Solution Business
Total(Notes)

1. Within the Group, only segments that involve made-to-order activities are shown due to thenature of services.
2. The above amounts are stated at production cost.

(2) Order results
Order results per segment for the first quarter of the fiscal year under review are as follows.
Year-on-year
Backlog of orders
Year-on-year
Order value
Business segment(Millions of yen)
(Millions of yen)change (%)
change (%)
Solution Design Business
6,068
136.0
8,323
130.0
Framework Design Business

1,622

124.1

2,654

115.9

IT Service Business

4,249

119.9

6,029

113.3

331

149.4

475

160.8

12,272

128.7

17,483

122.2

Business Solution Business
Total(Note)

Within the Group, only segments that involve made-to-order activities are shown due to the natureof services.

(3) Sales results
Sales results per business segment for the first quarter of the fiscal year under review are as follows.
Business segment
Net sales (Millions of yen)
Year-on-year change (%)
Solution Design Business

5,309

112.0

Framework Design Business

1,422

125.2

IT Service Business

4,202

118.2

Business Solution Business

6,261

114.1

Cloud business

392

104.7

Overseas Business

15

78.1

Investment & Incubation Business

24

126.5

17,627

115.0

Total
(Note)

Inter-segment transactions are offset and eliminated.

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