Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended September 30, 2022
(Based on Japanese GAAP)
November 9, 2022
Company name:
System Support Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

4396
URL https://www.sts-inc.co.jp
Representative Director
Ryoji Koshimizu

Inquiries:

General Manager of Management
Headquarters

Naoyuki Morita

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 10, 2022–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNo076-265-5151(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended September 30, 2022 (from July 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended September 30, 2022
4,404
18.4
304
26.4
309
24.3
205
26.8
Three months ended September 30, 2021
3,721
13.5
241
19.3
248
21.8
162
19.4
Earnings per share

Diluted earnings per share

Yen
19.89
15.69

Three months ended September 30, 2022
Three months ended September 30, 2021

Yen
19.85
15.65

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
7,569
7,815

As of September 30, 2022As of June 30, 2022

Equity ratio

Millions of yen
3,496
3,421%
46.2
43.8

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
12.00

Yen–

Yen
13.00

Yen
25.00

15.00

–

15.00

30.00

Year ended June 30, 2022
Year ending June 30, 2023
Year ending June 30, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)
Net sales
Millions of yen
Six months ending
December 31, 2022
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

8,765

12.5

722

22.9

721

21.7

487

24.2

47.12

18,093

11.7

1,456

21.7

1,452

22.0

982

25.1

94.88

1

4. Notes(1) Changes in significant subsidiaries during the three months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 202210,380,000 shares As of June 30, 2022

10,380,000 shares

Number of treasury shares at the end of the period
As of September 30, 2022

22,891 shares As of June 30, 2022

22,123 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended September 30,
2022

10,357,636 shares

2

Three months ended September 30,
2021

10,351,336 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

3,254,220
2,700,261

2,848,783
2,792,474

Merchandise and finished goods
Work in process

41,24826,60960,52437,482

Supplies
Other

2,807
278,733

2,874
280,210

Allowance for doubtful accounts–(1,057)

6,303,881

6,021,292

307,195

355,629

Goodwill
Other

199,800
180,182

192,490
170,081

Total intangible assets

379,983

362,571

Investments and other assets

824,244

830,143

1,511,422

1,548,344

7,815,303

7,569,637

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Thousands of yen)
As of June 30, 2022

As of September 30, 2022

Liabilities
Current liabilities
Accounts payable - trade

520,771572,592

Short-term borrowings
Current portion of long-term borrowings

825,000
78,2091,100,000
69,067

Lease liabilities
Income taxes payable

20,063332,826

19,545
121,3299,543
103

274,684
863

Reserve for quality assurance
Other

7,585
1,892,307

7,801
1,218,792

Total current liabilities

3,686,410

3,384,676

Non-current liabilities
Long-term borrowings

245,800

232,488

40,60135,897233,137

239,522

182,533

175,829

5,320

4,877

Provision for bonuses
Provision for loss on orders received

Lease liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities

707,393688,615

4,393,803

4,073,291

Share capital
Capital surplus

723,323549,837

723,323549,837

Retained earnings
Treasury shares

2,203,584(18,655)

2,274,931(18,747)

Total shareholders' equity

3,458,091

3,529,345

Accumulated other comprehensive income
Foreign currency translation adjustment

6,255

8,152

Remeasurements of defined benefit plans(42,846)(41,153)

Total accumulated other comprehensive income(36,591)(33,000)

3,421,500

3,496,345

7,815,303

7,569,637

Total liabilities
Net assets
Shareholders' equity

Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

3,721,112
2,752,650

4,404,175
3,218,787

Gross profit

968,462

1,185,387

Selling, general and administrative expenses

727,283

880,610

Operating profit

241,178

304,777

9
194

15
5,010

10,070
1,480

2,152
972

Other

1,986

1,075

Total non-operating income

13,741

9,226

3,714
2,466

4,416
132

1254

Non-operating income
Interest income
Commission income
Subsidy income
Dividend income of insurance

Non-operating expenses
Interest expensesForeign exchange losses
Other

6,182

4,802

Ordinary profit

Total non-operating expenses

248,738

309,200

Profit before income taxes

248,738

309,200

Income taxes

86,294103,201

Profit162,443

205,999

Profit attributable to owners of parent

162,443

205,9995

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Three months ended

Three months ended

September 30, 2021

September 30, 2022

162,443

205,999

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(751)
562

1,897
1,693

Total other comprehensive income

(189)

3,591

162,254

209,590

162,254

209,590

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6