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 Year Ended June 30, 2021
(Based on Japanese GAAP)
August 10, 2021
Company name:

System Support Inc.

Stock exchange listing: Tokyo
Stock code:
4396
Representative:
Inquiries:

URL

https://www.sts-inc.co.jp

Representative Director
General Manager of Management

Ryoji Koshimizu
Naoyuki Morita

Headquarters
Scheduled date of ordinary general meeting of shareholders:TEL

076-265-5151

September 28, 2021

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

September 29, 2021
September 29, 2021

Preparation of supplementary material on financial results:
Holding of financial results meeting:Yes
No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2021 (from July 1, 2020 to June 30, 2021)(1) Consolidated operating results
Net salesYear ended June 30, 2021
Year ended June 30, 2020

Operating profit

Millions of yen
14,431
13,376%
7.9
13.7

Millions of yen
931
754

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%
%%
64.97
25.0
15.1
6.5
43.44
20.5
12.6
5.6

Yen
65.45
44.82

Year ended June 30, 2021
Year ended June 30, 2020

%
23.3
42.5

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
954
34.1
674
49.9
712
41.3
45030.4(2) Consolidated financial position
Total assets
As of June 30, 2021
As of June 30, 2020

Net assets

Equity ratio

Millions of yen
6,662
5,947

Millions of yen
2,993
2,407

Cash flows fromoperating activities
Millions of yen
709
1,059

Cash flows frominvesting activities
Millions of yen
(276)
(308)

Net assets per share%
44.9
40.5

Yen
289.13239.45(3) Consolidated cash flows

Year ended June 30, 2021
Year ended June 30, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(165)
2,199(316)1,929

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended June 30, 2020
Year ended June 30, 2021
Year ending June 30, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

–
–

0.00
0.00

––

10.00
21.00

10.00
21.00

100217

22.3
32.1

3.2
7.9

–

12.00

–

12.00

24.00

133.3

3. Forecast of consolidated financial results for the year ending June 30, 2022 (from July 1, 2021 to June 30, 2022)
Net sales
Millions of yen
Six months ending
December 31, 2021
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

7,742

11.9

582

14.6

575

11.2

386

12.2

37.30

15,962

10.6

1,080

16.0

1,066

11.7

745

10.5

71.97

4. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2021

10,370,000 shares As of June 30, 2020

10,070,000 shares

Number of treasury shares at the end of the period
As of June 30, 2021

18,123 shares As of June 30, 2020

14,023 shares

Average number of shares during the period
Year ended June 30, 2021

10,305,538 shares Year ended June 30, 2020

210,041,202 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2020

As of June 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,387,2581,833,608

2,697,455
2,205,577

Merchandise and finished goods
Work in process

41,257
157,685

34,899123,068

Supplies
Other

1,753
210,353

4,041
254,284

Allowance for doubtful accounts

(383)

–

4,631,532

5,319,326

Property, plant and equipment
Buildings and structures

258,404

260,396

Accumulated depreciation(120,303)(132,816)

Buildings and structures, net

138,100

127,579

Total current assets
Non-current assets

VehiclesAccumulated depreciation
Vehicles, net

5,936

5,936

(4,342)(5,028)

1,593

908

Tools, furniture and fixtures

207,167

299,791

Accumulated depreciation(132,773)(169,071)

74,394

130,719Land

31,40031,400

Leased assets
Accumulated depreciation

101,481(50,262)

83,496(50,237)

51,21833,259296,707323,867

200,446
7,808

194,967
3,734

8,836
2,253

12,0892,253

Total intangible assets

219,344

213,044

Investments and other assets
Leasehold deposits

318,404

316,567

286,408
195,552

326,627
162,831

Tools, furniture and fixtures, net

Leased assets, net
Total property, plant and equipment
Intangible assets
Software
GoodwillLeased assets
Other

Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

3800,365

806,027

1,316,417

1,342,940

5,947,950

6,662,266

(Thousands of yen)
As of June 30, 2020

As of June 30, 2021

Liabilities
Current liabilities
Accounts payable - trade366,644544,966

Short-term borrowings
Current portion of long-term borrowings

680,000
127,250

695,000
87,239Lease obligations
Accounts payable - other

23,138217,631

19,826244,803

Accrued expenses
Income taxes payable

826,887181,972

793,812
209,716

7,365
5,425

8,716
4,144

9,433
522,1635,752
509,677

Total current liabilities

2,967,910

3,123,656

Non-current liabilities
Long-term borrowings

208,676

170,70742,49230,200188,841

207,704

127,237

134,003

4,919

2,941

Provision for bonuses
Provision for loss on order received
Reserve for quality assurance
Other

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

572,167

545,558

3,540,078

3,669,214Share capital
Capital surplus

717,085543,676

723,122549,639

Retained earnings
Treasury shares

1,171,734(18,655)

1,745,671(18,655)

Total shareholders' equity

2,413,841

2,999,778

Accumulated other comprehensive income
Foreign currency translation adjustment(4,635)(2,326)

Remeasurements of defined benefit plans(1,332)(4,399)Total accumulated other comprehensive income(5,968)(6,725)2,407,872

2,993,052

5,947,950

6,662,266

Total liabilities
Net assets
Shareholders' equity

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2020

Fiscal year ended
June 30, 2021

Net sales

13,376,016

14,431,360

Cost of sales

9,983,834

10,688,889

Gross profit

3,392,182

3,742,470

Selling, general and administrative expenses

2,637,376

2,811,427

754,805

931,043

Operating profit
Non-operating income
Interest income

5875

Commission income
Subsidy income

890
642

854
35,227

1,171–

1,305
8,738Dividend income of insurance
Gain on forgiveness of debts
Other

427

1,223

3,191

47,425Interest expenses
Foreign exchange losses

18,886
9,136

15,2308,178

Listing expenses
Other

17,257330–
83

Total non-operating expenses

45,611

23,491

712,385

954,976

Gain on sale of non-current assets

45–

Total extraordinary income

45–

18,04436,560–24,447

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on sale of investment securities

116–

54,72024,447

Profit before income taxes

657,710930,529

Income taxes - current

255,303

295,004

Total extraordinary losses

Income taxes - deferred(47,689)(38,971)

Total income taxes

207,614

256,032

Profit450,096

674,496

Profit attributable to owners of parent

450,096

674,4965

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

June 30, 2020

June 30, 2021
450,096

674,496

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(481)(7,827)2,309(3,066)

Total other comprehensive income(8,309)(757)

441,786

673,739441,786

673,739

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

6

Consolidated statements of changes in equity
Fiscal year ended June 30, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

717,085

Retained earnings

521,535

736,742

Treasury shares(238)

Total shareholders'equity
1,975,124

Changes during periodDividends of surplus(15,104)(15,104)

Profit attributable toowners of parent

450,096

450,096

Purchase of treasury shares
Disposal of treasury shares

22,141(136,858)(136,858)

118,442

140,584

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

22,141

434,991(18,416)

438,716

717,085543,676

1,171,734(18,655)

2,413,841

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income(4,154)

6,495

2,341

Total net assets

1,977,465

Changes during period
Dividends of surplus(15,104)

Profit attributable toowners of parent

450,096

Purchase of treasury shares(136,858)

Disposal of treasury shares

140,584

Net changes in items otherthan shareholders' equity(481)(7,827)(8,309)(8,309)Total changes during period(481)(7,827)(8,309)430,406(4,635)(1,332)(5,968)2,407,872

Balance at end of period

7Fiscal year ended June 30, 2021
(Thousands of yen)Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

717,085543,676

6,037

5,962

1,171,734

Total shareholders'equity

Treasury shares(18,655)

2,413,841

Changes during period
Issuance of new shares exercise of shareacquisition rights

12,000

Dividends of surplus(100,559)(100,559)

Profit attributable toowners of parent

674,496

674,496

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

6,037

5,962

573,936–585,936

723,122549,6391,745,671(18,655)

2,999,778

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income(4,635)(1,332)(5,968)

Total net assets

2,407,872

Changes during period
Issuance of new shares exercise of shareacquisition rights

12,000

Dividends of surplus(100,559)

Profit attributable toowners of parent

674,496

Net changes in items otherthan shareholders' equity

2,309(3,066)

Total changes during period

2,309(3,066)(757)

585,179

Balance at end of period(2,326)(4,399)(6,725)2,993,052

8(757)(757)

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2020

June 30, 2021
657,710930,529

167,177
4,074

174,652
4,074

Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts

5,872
(21)

50,482(88)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)17,672

18,863

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses

4,078(260)

2,452
1,351

Increase (decrease) in provision for loss on order received
Increase (decrease) in reserves for quality assurance

2,575(5,304)(1,281)(3,680)Interest and dividend income
Interest expenses(66)
18,886(83)
15,230

116
(45)

––

Loss on retirement of non-current assets
Impairment losses

18,04436,560–24,447

Decrease (increase) in trade receivables
Decrease (increase) in inventories

59,679105,034(371,800)
38,687

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses(3,322)
114,138

178,235(34,332)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes(28,471)
144,966

39,402(46,713)

Depreciation
Amortization of goodwill

Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets

Other, net(3,320)(24,756)

Subtotal

1,315,772

995,673

Interest and dividends received

66

83

Interest paid
Income taxes paid

(19,012)(236,841)(15,245)(271,286)

Net cash provided by (used in) operating activities

1,059,985

709,225

Cash flows from investing activities
Payments into time deposits(110,912)(85,800)

Proceeds from withdrawal of time deposits
Purchase of insurance funds

33,800(11,251)

48,500(11,974)

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(118,318)45(114,314)–

Purchase of intangible assets
Payments of leasehold and guarantee deposits(47,713)(56,857)(106,747)(9,078)19–

4,674(1,800)

–
2,762

(10)
–

(308,427)(276,550)

Proceeds from refund of leasehold and guarantee deposits
Payments for asset retirement obligations
Payments for investments in capital
Proceeds from sale of investment securities
Net cash provided by (used in) investing activities

9(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

June 30, 2020

June 30, 2021
(50,000)

15,000

Proceeds from long-term borrowings
Repayments of long-term borrowings

58,867(138,121)

90,800(159,946)

Repayments of lease obligations
Purchase of treasury shares(34,959)(136,858)(23,378)–Dividends paid
Proceeds from exercise of employee share options(15,031)–(100,188)
12,000Net cash provided by (used in) financing activities(316,102)(165,713)

(784)

3,518

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

434,670

270,480

Cash and cash equivalents at beginning of period

1,494,721

1,929,392

Cash and cash equivalents at end of period

1,929,392

2,199,873

10