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.

February 2, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 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:
February 7, 2023
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 nine months ended December 31, 2022 (from April 1, 2022 to
December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

December 31, 2022

54,334

15.5

7,013

10.1

7,185

16.3

4,908

17.9

December 31, 2021

47,039

6.0

6,371

10.4

6,179

6.3

4,164

6.8

Note: Comprehensive income

For the nine months ended December 31, 2022:
For the nine months ended December 31, 2021:

Basic earnings
per share
Nine months ended¥4,877 million¥4,216 million[15.7%][9.4%]

Diluted earnings
per share
Yen

Yen

December 31, 2022

12.67

–

December 31, 2021

10.75

–

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

December 31, 2022

44,93432,188

70.6

81.88

March 31, 2022

43,47730,173

68.5

76.83

Reference:%

Yen

EquityAs of December 31, 2022:¥31,723 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

–

10.00

–

–

4.00

–

Fiscal year-end

Total

Yen

Fiscal year ending
March 31, 2023
(Forecast)

Yen

3.50

–

4.00

8.00

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 pershare 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 the stock
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 to March
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 the change
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 December 31, 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 December 31, 2022

63,439,188 shares

As of March 31, 2022

63,483,788 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2022

387,415,970 shares

Nine months ended December 31, 2021

387,383,550 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 “Trustfor Granting Shares to Directors” and the “Trust for Granting Shares to Executive Officers.” The number of treasury shares
held by the Trust Account included in the number of treasury shares at the end of the period ended December 31, 2022 andMarch 31, 2022 were 1,567,700 shares and 1,612,300 shares, respectively, and the number of treasury shares held by theTrust Account excluded from the calculation of the average number of shares outstanding during the nine months ended
December 31, 2022 and nine months ended December 31, 2021 is as follows: the average number of treasury shares ofcommon shares held by the Trust Account for the nine months ended December 31, 2022 and nine months ended
December 31, 2021 were 1,592,542 shares and 1,629,134 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) Forward-looking
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 of comprehensive
income ............................................................................................................................................................ 9
Quarterly consolidated statement of income (cumulative) ....................................................................... 9
Quarterly consolidated statement of comprehensive income (cumulative) ........................................... 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 third quarter of the fiscal year under review (April 1, 2022 to December 31, 2022), the Japanese
economy was on a gradual recovery trend, particularly individual consumption, as the impact of the COVID-19
pandemic has eased and economic and social activities returned to normal. However, uncertainty in the global
economy is increasing as inflationary pressures due to high resource and raw material prices persist, and there
are concerns about a global recession as central banks in various countries are raising interest rates sharply.
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 can be
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 to actively
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.
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 the businessapplication 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 strives to further strengthen its recurring revenue businesses, centered on the subscription business andsystem development and support.
In the Cloud Business, which is responsible for promoting the subscription business model, the Group
released new functionality of its in-house products Canbus.1 and Cloudstep1 and actively promoted sales
through web marketing.
As a result of the above, consolidated results for the third quarter of the fiscal year under review were net
sales of ¥54,334 million (up 15.5% year on year), operating profit of ¥7,013 million (up 10.1% year on year),ordinary profit of ¥7,185 million (up 16.3% year on year), and profit attributable to owners of parent of ¥4,908
million (up 17.9% year on year).
1.

Canbus. and Cloudstep are Systena’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 ¥16,588 million (up 9.6%
year on year), and operating profit was ¥2,765 million (down 4.6% year on year).

(In-Vehicle)
In the in-vehicle category, which primarily involves the development of elements related to mobility as aservice (MaaS), autonomous driving, in-vehicle infotainment, telematics,2 and electronic control units(ECUs), in addition to the steady performance in the in-vehicle infotainment business, in which the Group
excels, including receiving orders for large-scale projects, the Group also won orders for MaaS-related
services thanks to differentiation from competitors owing to technological capabilities that leverage theGroup’s experience in the telecommunications business. Demand related to MaaS is expected to expandin the future, and through its participation in the MONET Consortium,3 the Group aims to further enhance
its business value in the mobility field.

-2-

2.
3.

Telematics is a term created from the combination of “telecommunication” and “informatics.” It isa 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, andmore, and enriches people’s lives, the Group won smart-city related orders by leveraging its experience
with MaaS acquired in the in-vehicle field. The Group will also continue to focus on 5G-related 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 quality verification services related to the utilization of data.
Furthermore, orders received for IT consulting and IT services remained positive, and the Group will
focus on its strengths in total solutions.
(Products)
In fields related to product development, including smartphones, home appliances, robotics, PCs,
payment terminals, and factory automation equipment, we have received recognition for our ability toprovide one-stop support throughout the product lifecycle, including not only product development andquality verification, but also environment construction and support that takes advantage of our strengths
in AI, IoT, cloud computing, and mobile devices, and orders are expanding. The Group will continue toexpand orders received while striving to differentiate itself from its competitors.
(DX Services)
In the DX Services field, as the lifecycle of core systems in companies is changing, we are receiving moreorders by understanding the lifecycle of these systems and offering solutions to the emergent and latentissues of our customers. There has also been an increase in inquiries for IT consulting and PMO projects
due to human resource shortages, due in part to the impact from the spread of COVID-19. In addition, theGroup will continue to actively promote the development of its in-house services, such as Remo-oTe,
which utilizes the Group’s business experience and total solution strengths cultivated in various fields,
TimeTapps, a cloud attendance management system, and Palette.Link, a groupware that enhances thequality of relationships, as they have been receiving many inquiries.
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 for system development projects.
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 work inareas such as contract management systems and accounts systems, the Group achieved greater sales by
expanding its scope of services to include DX projects such as cloud migration for core systems and hostmigration.
In the public sector, orders were received for new projects, primarily related to central government
ministries and agencies. The areas of system development, infrastructure construction, and operation andmaintenance remained firm. Going forward, the Group will continue to actively introduce this into
government cloud projects and other types of projects and further grow them into new business pillars.
In addition, for general corporate clients, the Group is winning commissioned development projects andis moving forward with proposals for business improvement projects using DX solutions. The Group’s-3-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 ¥4,485 million (up 20.6% year on year) and operating
profit was ¥933 million (up 29.2% year on year).
(iii) IT Service BusinessIn this business, which mainly operates a variety of IT-related outsourcing services, including system
operation and maintenance, helpdesk and user support services, and quality evaluation, to respond to IT
outsourcing demand from companies that are creating new business models and working on work stylereform, in addition to the existing IT business services providing helpdesk and IT asset management
support, the Group began focusing on provision of PMO services to provide project management support
for implementing a variety of tools and improving business processes.
In the software testing services business, the Group worked to increase orders and improve profitability
by building up a record of service in each process, from upstream quality control process consulting todownstream debugging, not only for customers who provide consumers with web content, apps, andmobile games but also customers who provide business systems to companies.
In addition, the engagement of persons with disabilities was enhanced by better grasping thecharacteristics of each individual, developing skills through training and placing the right person in theright job, leading to orders for a wide range of service projects, primarily in business process outsourcing(BPO).
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 ¥13,225 million (up 15.5% year on year) andoperating profit was ¥1,891 million (up 23.1% 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 eighth wave of COVID-19, delays in delivery of products on account of semiconductor
shortages, and high prices of resources and commodities. Even so, the number of projects related to newwork style reforms to implement a “with corona virus” mindset, and the use of DX to increase
productivity, reduce costs, and increase 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.
Furthermore, the Group received many inquiries relating to security diagnosis and category-specificsecurity services released this period, and the number of orders received is also gradually increasing.
As a result, net sales in this business amounted to ¥18,826 million (up 19.9% year on year) andoperating profit was ¥1,187 million (up 18.4% year on year).
(v) Cloud BusinessIn this business, where the Group provides cloud solutions and original services to companies and otherentities, and which is responsible for promoting the subscription business model, 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 only sold licenses tocompanies 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 the release of new functions and theremote 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.
In addition, inquiries for the Cloudstep groupware, integrated with Google Workspace and Microsoft
365, have been increasing for rebuilding groupware architecture suited to today’s work styles. At thesame time, system integration, an area of strength for the Group, differentiates the Group from its
competitors and results in orders.
As a result, net sales in this business amounted to ¥1,347 million (up 10.6% year on year) and operating
profit was ¥259 million (up 4.7% year on year).
MINGAL, which was established on June 1, 2022, is included in the Cloud Business reporting segment.

-4-

(vi) Overseas Business
At present, large-scale layoffs in technology-related industries are a problem in the U.S. However, theCompany’s U.S. subsidiary enjoys a high level of trust in the quality of engineering in its ongoingprojects, and orders received for system development and verification services from manufacturingindustry, particularly automotive industry-related, have remained stable. The subsidiary has also received
repeat orders from Japanese-affiliated firms located in Silicon Valley for proof of concept development
and verification services, which checks the effectiveness of elemental technologies of Silicon Valley startup companies. In addition, to increase operational efficiency, more and more U.S. companies are
introducing Canbus., which has an extensive track record of implementation in Japan.
Furthermore, ONE Tech, Inc., a U.S. company the subsidiary has invested in, focused on sales of its
proprietary AI MicroAITM, and orders from manufacturing industry around the world remained steady.
StrongKey, Inc., another U.S.-based company the subsidiary has invested in, is rolling out its security
support services based on data encryption and FIDO authentication to major companies around the world
and released Public Key Infrastructure (PKI) service for secure internet communications that iscompatible with the “Matter” communication standard for smart homes newly established by theConnectivity Standards Alliance (CSA). As a result, there was a rapid increase in inquiries from smart
home IoT device companies and other related companies.
In this business, which is still in the investment stage, net sales amounted to ¥103 million (down 22.5%
year on year), and the operating loss was ¥21 million (versus operating loss of ¥2 million in the same
period of the previous fiscal year).
(vii) Investment & Incubation Business
GaYa Co., Ltd., operates social games developed in-house and designs and develops business applications
for smartphones and tablets. In the third quarter of the fiscal year under review, the Group focused onrunning and stable operation of in-game events for Keiba Densetsu PRIDE, a smartphone gameapplication released at the end of June. Furthermore, there is firm commissioned development fromexisting customers, and the Group will continue to move forward with stabilizing the business.
As a result, net sales in this business amounted to ¥258 million (up 92.4% year on year) and theoperating loss was ¥2 million (versus operating loss of ¥35 million in the same period of the previous
fiscal year).
(2) Financial position(Assets)
Total assets at the end of the third quarter of the fiscal year under review amounted to ¥44,934 million (versus¥43,477 million at the end of the previous fiscal year), an increase of ¥1,457 million from the end of theprevious fiscal year. Current assets amounted to ¥38,725 million (versus ¥38,002 million at the end of theprevious fiscal year), an increase of ¥723 million from the end of the previous fiscal year. This was mainly
due to a ¥572 million increase in merchandise, a ¥295 million increase in cash and deposits, and a ¥182
million decline in notes and accounts receivable - trade, and contract assets. Non-current assets amounted to¥6,209 million (versus ¥5,475 million at the end of the previous fiscal year), an increase of ¥734 million fromthe end of the previous fiscal year. Property, plant and equipment amounted to ¥1,568 million (versus ¥1,058
million at the end of the previous fiscal year), an increase of ¥510 million from the end of the previous fiscal
year. Intangible assets amounted to ¥330 million (versus ¥278 million at the end of the previous fiscal year),an increase of ¥51 million from the end of the previous fiscal year. Investments and other assets amounted to¥4,310 million (versus ¥4,138 million at the end of the previous fiscal year), an increase of ¥172 million fromthe end of the previous fiscal year. This was mainly due to a ¥366 million increase in investment securities
and a ¥210 million decrease in deferred tax assets.
(Liabilities)
Total liabilities amounted to ¥12,746 million (versus ¥13,303 million at the end of the previous fiscal year), a
decline of ¥556 million from the end of the previous fiscal year. This was mainly due to a ¥737 million
decline in income taxes payable, a ¥604 million decline in provision for bonuses, and a ¥658 million increasein accounts payable - other, and accrued expenses.
(Net assets)
Net assets amounted to ¥32,188 million (versus ¥30,173 million at the end of the previous fiscal year), an
increase of ¥2,014 million from the end of the previous fiscal year. This was mainly due to profit attributableto owners of parent of ¥4,908 million and dividends of surplus of ¥2,917 million. As a result, the equity-toasset ratio increased 2.1 percentage points from the end of the previous fiscal year to 70.6%.

-5-

(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 released on
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
assetsMerchandiseWork in process
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 December 31, 2022

21,657

21,952

14,32314,141

1,151
–
880
(11)
38,002

1,724
1
907
(2)
38,725

398
489
97
–
72
1,058

665
569
97
196
39
1,568

270
5
2
278

326
2
2
330

1,775

2,142

575

561

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

1,530
607
29
(561)
4,310
6,209
44,934

(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 December 31, 2022

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

5,536
1,550
2,735
787
743
1,259
12,6119730
12813,303105
29
135
12,7461,513
6,025
27,309(5,042)29,8061,513
6,023
29,299(5,022)
31,814

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

(122)
32
(90)
464
32,18844,934

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 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
Share of profit of entities accounted for using equity
methodCommission income
Subsidy income
Gain on investments in investment partnerships
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
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-9-

Nine months ended
December 31, 2022

47,03935,482
11,557
5,185
6,371

54,33440,941
13,392
6,379
7,013

11
15
–

16
5
94

–

23

1
20
63
13
125

1
22
–
39
202

5
84

5
–

98

–

114
–
13
317
6,179
6,179
1,785
218
2,003
4,176
11
4,164

–
15
9
30
7,185
7,185
2,007
253
2,260
4,924
16
4,908

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 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 -

Nine months ended
December 31, 2022

4,176

4,924

2
41

(97)
66

(3)

(15)

39
4,216

(46)
4,877

4,204

4,861

11

16

(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 with transitional measuresprovided for in paragraph 27-2 of the Fair Value Measurement Accounting Standard Implementation
Guidance. This had no impact on the quarterly consolidated financial statement.
(Segment information, etc.)
Segment information
I Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

15,103

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,214

74

70

–

47,039

31

5

59

63

(462)

–

15,699

1,219

133

134

(462)

47,039IT Service
Business

Business
Solution
Business

Cloud
Business

3,720

11,187

15,66838–

265

15,142

3,720

11,452

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total

Segment profit
2,900
722
1,536
1,002
247
(2)
(35)
–
(loss)(Note)
Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

6,371

2. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.
II Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

16,529Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,313

55

237

–

54,334

25

34

47

21

(501)

–

13,225

18,826

1,347

103

258

(501)

54,334

1,891

1,187

259

(21)

(2)

–

7,013

IT Service
Business

Business
Solution
Business

Cloud
Business

4,485

12,91118,80158–

314

16,588

4,485

2,765

933

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total
Segment profit(loss)- 11 -

(Note)Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

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 nine months ended December 31, 2022 are as follows.
Business segment

Production (Millions of yen)

Year-on-year change (%)

Solution Design Business

11,161

109.5

Framework Design Business

3,132

120.2

IT Service Business

9,348

112.8

925

157.8

24,568

113.4

Business Solution Business
Total(Notes)

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

(2) Order results
Order results per segment for the nine months ended December 31, 2022 are as follows.
Order value
Year-on-year
Backlog of orders
Business segment(Millions of yen)change (%)(Millions of yen)

Year-on-yearchange (%)

Solution Design Business

15,886

113.3

6,736

120.4

Framework Design Business

4,734

115.8

2,701

108.7

IT Service Business

13,091

115.7

6,162

112.9

Business Solution Business

1,141

124.4

473

121.4

34,853114.9

16,074

115.4

Total
(Note)

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

(3) Sales results
Sales results per business segment for the nine months ended December 31, 2022 are as follows.
Business segment

Net sales (Millions of yen)

Year-on-year change (%)

Solution Design Business

16,529109.4

Framework Design Business

4,485

120.6

IT Service Business

12,911

115.4

Business Solution Business

18,801

120.0

Cloud Business

1,313

108.2

Overseas Business

55

74.7

Investment & Incubation Business

237

336.8

54,334

115.5

Total
(Note)

Inter-segment transactions are offset and eliminated.

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