Supplementary Materials for Financial
Results for the First Quarter of the Fiscal
Year Ending June 30, 2023
System Support Inc. (Security Code: 4396)
November 9, 2022

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

Company Profile
Company name

System Support Inc. (STS)

Location

9F Rifare, 1-5-2 Honmachi, Kanazawa-shi, Ishikawa Prefecture

Founding

January 1980

Listed market

Tokyo Stock Exchange Prime Market (security code: 4396)

Capital

723 million yen

Net sales

16,198 million yen (FY2022/6, consolidated)

Representative

Ryoji Koshimizu, Representative Director

Number of
employees

1,233 (as of June 30, 2022, consolidated)

OfficesTokyo, Nagoya, Osaka, and Kanazawa (headquarters)

Business outline■Cloud Integration BusinessTechnical support for migration and use of cloud services (ServiceNow,
Microsoft Azure, AWS, Google Cloud, etc.) and resale of licenses, etc.

■System Integration Business

Overseas (U.S. & Canada):
10
Hokuriku area:
249
Tokyo metropolitan
area: 643
Tokai area: 154
Kansai area: 177

84% of employees
are engineers

Number of employees by region(as of June 30, 2022, consolidated)

Technical support for the introduction and use of ERP packages, constructionof infrastructure such as Oracle database, and IT system consulting, design, development, operation, and maintenance■Outsourcing Business

Our Group’s private cloud and other data center services, data analysis and input, and near-shore system operation andmaintenance■Product Business

Development and sale of products (software) by Our Group, and customization according to user companies’
applications■Overseas Business© 2022 System Support Inc.

Overseas system integration, outsourcing of payroll and accounting services, recruitment services, and media
management

2Company Profile – Net Sales Trends and History(1 million yen)Entered a Celonis Partner Program Agreement with CELONIS K.K.
Entered a Subcontractor Agreement with Automation Anywhere, Inc.
Entered a Google Cloud & Google for Education Commercial Partner Program Agreement with Google Cloud Japan G.K.

18,00016,00014,000Received Microsoft Cloud Platform Gold Competency certification

12,000Received Microsoft Cloud Platform Silver Competency certification
Entered a PartnerNow Master Terms with ServiceNow Nederland B.V.

10,000Entered an APN Consulting Partner contract with Amazon Japan K.K.

8,000Entered a SAP Service Partner contract with SAP Japan Co., Ltd.

6,000
4,000

Entered an Oracle EBS Technical Partner contract with Oracle
Corporation Japan

2,000

1980/121982/12'80/12 '82/12 1984/6'84/6 1986/6'86/6 1988/6'88/6 1990/6'90/6 1992/6'92/6 1994/6'94/6 1996/6'96/6 1998/6'98/6 2000/6'00/6 2002/6'02/6 2004/6'04/6 2006/6'06/6 2008/6'08/6 2010/6'10/6 2012/6'12/6 2014/6'14/6 2016/6'16/6 2018/6'18/6 2020/6'20/6 2022/6'22/6●Established System Support Inc. in Kanazawa City, Ishikawa Prefecture●Listed on the Tokyo Stock Exchange
Mothers Index●eNet Solutions Co., Ltd. financed and founded●Nagoya Office opened●Tokyo Office opened●Osaka Office opened0●Listed on the First Section of theTokyo Stock Exchange●Moved to TSE Prime●Acquired shares of T4C Co., Ltd., andmade it a subsidiary●STS Medic Inc. financed and founded●Acquired shares of Across Solutions, Inc. and made it a subsidiary●STS Innovation, Inc. financed and founded in California, USA●STS Innovation Canada, Inc. financed andfounded in Vancouver, Canada© 2022 System Support Inc.

* Net sales are consolidated from FY2016/6, and unconsolidated before that.

3

Summary of Financial Results for 1Q of FY2023/6 and Earning
Forecast of FY2023/6
Contents
1. Financial highlights
2. Net sales and income (consolidated)
3. Forecast for full year earning of FY2023/6 (consolidated)
4. Changes of reportable segments
5. Net sales and income by segment (consolidated)© 2022 System Support Inc.

4

Financial Highlights for 1Q of FY2023/6 (Cumulative)
Unit: 1 million yen

1Q of FY2023/6(Cumulative)

Net sales

Difference(YoY change)

Percentage change(YoY change)

4,404

683

+18.4%

304

63+26.4%

Operating profit

 Net sales were strong in all businesses, led by the cloud
integration business.

 Profit ratio increased due to expansion of highly profitable cloud
integration business, etc.

© 2022 System Support Inc.

5

Consolidated Net Sales and Income of 1Q of FY2023/6 (Cumulative)
1Q of
FY2021/6

1Q of
FY2022/6

1Q of
FY2023/6(Cumulative)(Cumulative)(Cumulative)

Net sales

3,277

3,721

4,404

Gross profit849(25.9%)

968(26.0%)

1,185

Operatingprofit202(6.2%)

241(6.5%)

Current profit

204(6.2%)

248

Current net
profit136(4.2%)

162

Unit: 1 million
yen
Difference(YoY change)

Percentagechange(YoY change)

683+18.4%(26.9%)

216+22.4%

304(6.9%)

63+26.4%(6.7%)

309(7.0%)

60+24.3%(4.4%)

205(4.7%)

43+26.8%*Profit ratio in (■Composition of net sales by segment*1

Unit: 1 million yen
5.0%

100

73

80
60

4.0%

59

3.0%
2.0%

40
20
0

1.6%

1.7%

2022/6 1Q

2023/6 1Q

tive)

tive)

1.0%

（累計）
(Cumula(Cumula'22/6(Cumulative)
1Q（累計）'23/6(Cumulative)
1Q（累計）

0.0%

Recruitment採用関連費用
related expenses

Training expenses
研修費

Research and
研究開発費

Percentage of net
対売上高構成比sales

development
expenses■Composition of segment profit*2

0.7%
3.7%
10.2%
24.0%

3.5%
12.8%
16.5%

49.0%

18.2%

61.4%

クラウドインテグレーション
Cloud
integration
クラウドインテグレーション

システムインテグレーション
システムインテグレーション
Systemintegration

Cloud
integration
クラウドインテグレーション
クラウドインテグレーション

システムインテグレーション
Systemintegration
システムインテグレーション

アウトソーシング
アウトソーシング
Outsourcing

プロダクト
Product
プロダクト

アウトソーシング
Outsourcing
アウトソーシング

Product
プロダクト
プロダクト

海外
Overseas
海外© 2022 System Support Inc.

)

■Changes in investment-related expenses

海外
Overseas
海外*1 Net sales by segment are sales to external customers.

*2 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

6Forecast for Full Year Earning of FY2023/6 (Consolidated)
For FY2023/6, we plan net sales of 18,093 million yen, up 11.7% year on year, andoperating profit of 1,456 million yen, up 21.7% year on year.
Unit: 1 million yen(Forecast)(Period overperiod)14,431

16,19818,093+11.7%

Operatingprofit

931

1,196

1,456

+21.7%

Current
profit

954

1,190

1,452

+22.0%

Current net
profit

674

785

982

+25.1%

Annual dividends

Net salesInterimdividends

0 yen

12 yen15 yen-Year-end
dividends

21 yen13 yen15 yen-Total

21 yen25 yen30 yen-© 2022 System Support Inc.

■Net sales/operating profit (consolidated)
20,0002000

15,0001500

10,000

1000

5,000

500

0

2019/6'19/6

2020/6'20/62021/6'21/6

Net sales
売上高2022/6'22/62023/6'23/6(Forecast)(Forecast
)（予想）
（予想）
Operatingprofit
営業利益
営業利益■Dividends*
40

Unit: Yen

30

25

20

13

10
0

0.75
2018/6'18/6

0Operating profit (1 million yen)

FY2022/6

PercentagechangeNet sales (1 million yen)

FY2021/6

FY2023/6

1.5
2019/6'19/6
Interim10
2020/6
'20/6

中間配当金
中間配当金
dividends

21
2021/6
'21/6

30
15

12

15

2022/6'22/62023/6'23/6(Forecast)
（予想）
（予想）

Year-end
期末配当金
期末配当金
dividends* Our Company conducted a 2-for-1 stock split of shares of common stock on April 1, 2019, and June 1, 2020, and the figures for FY2019/6 and earlier in this graph have been retroactively adjusted.

7

Changes of Reportable Segments
From FY2023/6, the reportable segments will be changed with the primary objectiveof more clearly showing progress in the cloud integration field that we are focusing
on in the medium term.
Old segments

New segments*
Cloud Integration Business

Solution Business[Cloud integration]

Support for the introduction and use of cloud services such as ServiceNow,
Microsoft Azure, and AWS[System integration]

Technical support for migration and use of cloud services (ServiceNow,
Microsoft Azure, AWS, Google Cloud, etc.) and resale of licenses, etc.

System Integration BusinessSupport for the introduction and use of ERP packages, construction of
infrastructure such as Oracle database, and development of IT systems

Technical support for the introduction and use of ERP packages, constructionof infrastructure such as Oracle database, and IT system consulting, design,development, operation, and maintenanceOutsourcing BusinessOutsourcing Business

Product Business

Product Business

OthersOverseas BusinessPrivate cloud services, data analysis and input, operations and maintenancein our Group’s data center
Development, sales, and customization of products (software)

Development and sale of products (software) by Our Group, andcustomization according to user companies’ applications

Overseas information provision services, overseas media business, etc.

Net sales composition (FY2022/6, consolidated)
84.0%
ソリューション
ソリューション
Solution© 2022 System Support Inc.

アウトソーシング
アウトソーシング
Outsourcing

4.1%
11.7%

プロダクト
プロダクト
Product

その他
その他
OthersOur Group’s private cloud and other data center services, data analysis andinput, and near-shore system operation and maintenanceOverseas system integration, outsourcing of payroll and accounting services,
recruitment services, and media management

0.2%

4.1%
20.9%
Cloud
integration
クラウドインテグレーション

プロダクト
プロダクト
Product

64.8%
Systemintegration
システムインテグレーション
システムインテグレーション
海外
海外
Overseas*The arrows from the old segments to the new segments indicate the main ones. Net sales are sales to external customers.
The net sales composition in the new segment category is based on reclassified financial results for FY2022/6, and has not been reviewed by an auditing firm.

0.4%

9.7%
Outsourcing
アウトソーシング
アウトソーシング

8Net Sales and Income by Segment for 1Q of FY2023/6 (Consolidated)
10.2%

Cloud Integration Business
•
•

24.0%

ServiceNow and IT system-based cloud services received strong orders,with particularly strong growth in Google Cloud.
Improved profitability in the migration and utilization support phase
contributed to higher gross profit ratio.
■Net sales*1

57.0%
increase

1,000
800

34
120
130

672

22 6
93

600

335

237

400
200
0

1,055

434

312
1Q of FY2022/6'22/6期
1Q‘22/6 1Q
(cumulative)
(累計）
（累計）

1Q of FY2023/6'23/6期
1Q‘23/6 1Q
(cumulative)
(累計）
（累計）

Servicenow関連
ServiceNow
Servicenow関連

AWS
AWS関連
AWS関連

MicrosoftAzure
Azure関連
Microsoft
Microsoft
Azure関連

GoogleCloud
Cloud関連
GoogleCloud関連
Googleその他
Othersその他© 2022 System Support Inc.

Unit: 1 million yen
300

293

27.0%

27.8%

250

181

200
150

61.1%
increase

30.0%
25.0%

15.0%
10.0%

50

5.0%
1Q of FY2022/6(cumulative)'22/6期
1Q‘22/6 1Q
(累計）
（累計）
売上総利益
Gross
profit
売上総利益

1Q of FY2023/6'23/6期
1Q(cumulative)‘23/6 1Q
(累計）
（累計）

Technical support for migration
and use of cloud services(ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) andresale of licenses, etc.

61.4%

0.0%

Unit: 1 million yen
20.0%

200

153

150

14.6%

14.5%

20.0%

100

0

Composition of net sales bysegment(1Q of FY2023/6 cumulative)

Cloud Integration
Business■Operating profit/profit ratio(Segment profit/profit ratio*3)■Gross profit/profit ratio*2
Unit: 1 million yen

1,200

3.7%
0.7%

100

97

57.5%
increase

10.0%
5.0%

50

0

Gross
profit ratio
売上総利益率
売上総利益率*1 Net sales are sales to external customers.

*2 Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.
*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

15.0%

1Q of FY2022/6'22/6期
1Q‘22/6 1Q
(cumulative)
(累計）
（累計）
Segment
profitセグメント利益セグメント利益

1Q of FY2023/6'23/6期
1Q‘23/6 1Q
(cumulative)
(累計）
（累計）

0.0%

Segment
profit ratio
セグメント利益率
セグメント利益率

9

Cloud Integration Business Details (1) Support for the Introduction and Use of ServiceNow
Support for the introduction and use of ServiceNow*, a cloud service for businesses from the U.S.
*ServiceNow is a cloud service provided by ServiceNow, Inc. to standardize IT service management and other operations.

ServiceNow, Inc. is ranked No. 1 in FORTUNE Future 50 (2020), with a market capitalization of approximately US$75 billion in October 2022.

Net sales of ServiceNow
Unit: 1 million yen

1Q

2Q

3Q

4Q

• Our Company actively invests in the development of engineers to create a systemcapable of providing stable service, and captures demand as the number of companies
that have adopted ServiceNow in Japan increases.
• Our Company ranked second in terms of ServiceNow certified build certifications as ofthe end of July 2022*1.
• First domestic company certified as a Bronze Services Partner in 2017*2; currently thehighest ranking Elite Partner.

1,527

Number of our ServiceNow
certified build certifications

388

Unit: Case

(1 billion USD)

Net sales of ServiceNow, Inc.*3

7
6

416

5

Up 38.8%
YoY

409

144
434

312

2022/6'22/62023/6
'23/6

69
31

176

84

37

Dec.
30, Dec.
'19年
'20年
'20年
'21年
'22年
'22年
15, Jun.
30,‘1931, Jun.
‘20‘2031, Jun.
‘2130, Jan.
‘22
‘22
2019
2020 12月末
2020
2021
2022
2022
12月末
6月末
6月末
6月末
1月15日

4
3
2
1
0

12月末 6月末 12月末 6月末 1月15日 6月末’13/12
2013/12 ’14/12
2014/12 ’15/12
2015/12 ’16/12
2016/12 ’17/12
2017/12 ’18/12
2018/12 ’19/12
2019/12 ’20/12
2020/12’21/12
2021/12*1 From the ServiceNow Japan website (target: Certified Implementation Specialist/Certified Application Developer/Certified Application Specialist)© 2022 System Support Inc.

*2 From the ServiceNow partner program of ServiceNow, Inc. in the U.S.
*3 Prepared by Our Company from ServiceNow, Inc. financial results

10Cloud Integration Business Details (2) Cloud Platform Migration and Usage Support
Cloud platform migration (Microsoft Azure, AWS, Google Cloud) and usage support
Our strength is in the area of using databases and data analysis platforms in the cloud, thanks to ourtechnological expertise in the database field, which we have cultivated over many years.
Net sales for cloud platform
migration, usage support, etc.
1Q

2Q

3Q

Flow of cloud platform
migration and usage support

Unit: 1 million yen

4Q

Our main services

1,857

Before Proposal and design
cloud
migration ▼582

Migration and usage support(creation of cloud environment)

424

1,010
291

491

Total
合計

After
cloud
migration

216
287

359

For total up
72.9% YoY,
for resale up
55.1% YoY

621
333

214
Resale
リセール

2022/6

Total
合計

Resale
リセール▼(Delivery)
Operation and monitoring
ResaleReselling cloud accounts (payas-you-go or bulk purchases basedon data usage) from Our

Company to customers toensure stock revenue

History of major certification and awards inthis field

Microsoft Azure• Obtained Gold Cloud Platform competency certification
Recognized as a partner with an outstanding track record in
Microsoft Azure deployments
・Obtained Advanced Specialization*1
Obtained highly specialized partner certifications in specific solution
areas
・Won the MVP Award five times in a row
Received consecutive awards in the field of data platforms since
2017*2AWS・Obtained Oracle competency in the AWS competency

program*3

・Received APN partner award “Rising Star of the Year 2014”
Google Cloud・Obtained data analysis specialization with Partner Advantage
program
Oracle・Received 14 consecutive awards for Oracle Database*4
Received awards including Oracle Certification Award 2020 from
Oracle Japan

2023/6*1 Acquired in the “Migrating Windows Server and SQL Server to Microsoft Azure” field *2 Awarded by Our Company employees© 2022 System Support Inc. *3 Program to identify, validate, and recommend AWS Partner Network (APN) advanced and premium tier partners that have demonstrated technical expertise and customer success for AWS*4 Awards from 2007 to 202011

Net Sales and Income by Segment for 1Q of FY2023/6 (Consolidated)System Integration Business•••

Robust performance in ERP, Oracle database, and other infrastructure
construction.
Improved profitability in the infrastructure construction contributed to higher
gross profit ratio.
Factors behind the decrease in operating profit were strong hiring andincrease in recruiting-related expenses.
■Net sales*1■Gross profit/profit ratio*2
Unit: 1 million yen

Unit: 1 million yen

3,000
2,500
2,000

7.7% increase
2,509

1,379

2,703

600
1,442

1,500
1,000
500
0

448
681

700

500
759

500

10.4% increase
585
23.3%

646
23.9%

300

15.0%

200

10.0%

100

5.0%

0

*1Net sales are sales to external customers.

1Q of1Q'22/6期‘22/6 1Q
FY2022/6（累計）(累計）(cumulative)
売上総利益
Gross
profit
売上総利益

1Q of1Q'23/6期‘23/6 1Q
FY2023/6（累計）(累計）(cumulative)

0.0%

売上総利益率Grossprofit ratio
売上総利益率Composition of net sales
by segment(1Q of FY2023/6
cumulative)

Unit: 1 million yen
5.0%

100

20.9% decrease

72

50

0

2.9%

57
2.1%

0.0%

1Q of1Q'22/6期‘22/6 1Q
FY2022/6(累計）(cumulative)（累計）

1Q of1Q'23/6期‘23/6
1Q
FY2023/6(累計）(cumulative)（累計）

Segment profit
セグメント利益

Segment profit ratio
セグメント利益率*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

24.0%■Operating profit/profit ratio(Segment profit/profit ratio*3)

25.0%
20.0%

10.2%

3.7%
0.7%

61.4%

30.0%

400

1Q'22/6期
of FY2022/6
1Q '23/6期
of FY2023/6‘22/6 1Q
1Q
‘23/6 1Q
1Q
(cumulative)(cumulative)
(累計）
(累計）
（累計）
（累計）
IT system development
ERP関連
データベース関連
ITシステム開発
Database
ERP© 2022 System Support Inc.

35.0%

System Integration BusinessTechnical support for the introduction
and use of ERP packages, constructionof infrastructure such as Oracle
database, and IT system consulting,design, development, operation, andmaintenance

12

Net Sales and Income by Segment for 1Q of FY2023/6 (Consolidated)
Outsourcing Business
Our Group’s private cloud andother data center services,
data analysis and input, andnear-shore system operationand maintenanceOutsourcing Business•

Strong performance in data center operations including AI-related
services.

10.2%

3.7%
0.7%
24.0%

Composition of net sales
by segment(1Q of FY2023/6
cumulative)

61.4%■Net sales*1
500
400
300

18.2% increase379

Unit: 1 million yen

448

Unit: 1 million yen
150

19.0% increase

82

117

120

75

31.1%

140
31.3%

Unit: 1 million yen
40.0%

60

365

303
100

20.0%
60

Data center
データセンター関連© 2022 System Support Inc.

1Q
of FY2023/6'23/6期
1Q‘23/6 1Q
(cumulative)
(累計）
（累計）

Data analysis, input, near-shore,
データ分析・入力、ニアショア等

12.2%
30

20.0%

51

11.5%

10.0%

10.0%

30
1Q'22/6期
of FY2022/6
1Q
‘22/6
1Q
(cumulative)
(累計）
（累計）

11.8% increase
46

30.0%

90

200

0

■Operating profit/profit ratio(Segment profit/profit ratio*3)■Gross profit/profit ratio*20
1Q'22/6期
of FY2022/6
1Q‘22/6 1Q
(cumulative)
(累計）
（累計）

etc.

売上総利益
売上総利益
Gross
profit*1Net sales are sales to external customers.

1Q'23/6期
of FY2023/6
1Q‘23/6 1Q
(cumulative)
(累計）
（累計）

0.0%

0

売上総利益率
売上総利益率Grossprofit ratio

1Q'22/6期
of
FY2022/6
1Q
‘22/6
1Q
(cumulative)
(累計）
（累計）
Segment profit
セグメント利益

1Q'23/6期
of FY2023/6‘23/6 1Q
1Q
(cumulative)
(累計）
（累計）

Segment profit ratio
セグメント利益率*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

0.0%

13

Net Sales and Income by Segment for 1Q of FY2023/6 (Consolidated)
Product Business
Development and sale ofproducts (software) by Our
Group, and customizationaccording to user companies’
applications

Product Business••

Strong sales performance of Tateyakusha and SHIFTEE.
Improved profit margin on stock sales such as monthly subscription fees
and no significant increase in selling, general and administrative expenses
contributed to higher segment profit ratio.
■Net sales*1

200

20.5% increase

100.0%

Unit: 1 million yen

19

57.6%

69.8% increase
50.0%© 2022 System Support Inc.

24.3%

1Q'23/6期
of FY2023/6
1Q(cumulative)（累計）
Shugyoyakusha
就業役者

20.0%
10.0%

0

SHIFTEE

25.0%
15.0%

56

1Q'22/6期
of FY2022/6
1Q(cumulative)
（累計）
MOS

35.0%

17.2%

40

Tateyakusha
建て役者

40.0%
30.0%

23

53

0

45.0%

39

59.7%

50

52

50.0%

50

78

14

15
14
12

98

Composition of net sales
by segment(1Q of FY2023/6
cumulative)■Operating profit/profit ratio(Segment profit/profit ratio*3)

Unit: 1 million yen
10024.8% increase

22

136

100

164

24.0%

61.4%

■Gross profit/profit ratio*2
Unit: 1 million yen

10.2%

3.7%
0.7%

Others
その他*1Net sales are sales to external customers.

1Q of 1Q
'22/6期
FY2022/6(cumulative)
（累計）

売上総利益
Gross profit

1Q of1Q'23/6期
FY2023/6（累計）(cumulative)

0.0%

5.0%
0

売上総利益率Gross profit ratio

1Q of1Q'22/6期
FY2022/6（累計）(cumulative)

セグメント利益
Segment profit

1Q of1Q'23/6期
FY2023/6（累計）(cumulative)

セグメント利益率
Segment profit ratio*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

0.0%

14

Net Sales and Income by Segment for 1Q of FY2023/6 (Consolidated)
Overseas Business
Overseas system integration,
outsourcing of payroll andaccounting services, recruitment
services, and media management

Overseas Business••

Strong performance in outsourcing operations in North America.
Status of system integration projects affects gross profit ratio.

10.2%

3.7%
0.7%
24.0%

Composition of net sales
by segment(1Q of FY2023/6
cumulative)

61.4%■Gross profit/profit ratio*2■Net sales*1
Unit: 1 million yen

38.3% increase32

Unit: 1 million yen
20

23

14.6% increase
14

15

61.5%
10

1Q of
'23/6期‘23/6 1Q
1Q
FY2023/6(累計）(cumulative)
（累計）

0

1Q of
'22/6期‘22/6 1Q
1Q
FY2022/6(累計）（累計）(cumulative)*1Net sales are sales to external customers.

15

46.7%

16
60.0%

51.0%

1Q of
'23/6期‘23/61Q
1Q
FY2023/6(累計）（累計）(cumulative)

10

0.1% decrease

10

0.0%

10

60.0%

40.0%

33.8%

40.0%
20.0%

Gross profit
売上総利益© 2022 System Support Inc.

Unit: 1 million yen
80.0%

5

1Q of1Q'22/6期‘22/6
1Q
FY2022/6(累計）(cumulative)（累計）■Operating profit/profit ratio(Segment profit/profit ratio*3)

20.0%

5

0

売上総利益率Gross profit ratio

1Q1Q
of1Q
'22/6期‘22/6
FY2022/6(累計）（累計）(cumulative)
セグメント利益
Segment profit

1Q 1Q
of1Q
'23/6期‘23/6
FY2023/6(累計）（累計）(cumulative)

0.0%

セグメント利益率
Segment profit ratio*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

15

Reference Materials
Contents
1. Human resources strategy
2. Financial condition (consolidated)
3. Growth strategy by segment
4. Our Company topics© 2022 System Support Inc.

16

Human Resources Strategy
Our Group regards human resources as a source of business growth, and is actively
engaged in the expansion of its education system and recruitment activities.

Number of employees*

Number of employees (consolidated)
Unit: People

FY2020/6

FY2021/6

FY2022/6

FY2023/6(planned)

New graduate
recruitment

58

60

70

91

Mid-career
recruitment

97

89

83

93

Retirement
rate

7.7%

5.9%

4.9%

–

1,233

745
528

557

810

869

956
157

1,039
163

1,126

194

177

579

799

876

949

1,039

2013/6'13/6 2014/6'14/6 2015/6'15/6 2016/6'16/6 2017/6'17/6 2018/6'18/6 2019/6'19/6 2020/6'20/6 2021/6'21/6 2022/6'22/6■Engineers ■Sales, management, etc.

© 2022 System Support Inc.

* Non-consolidated for FY2013/6 through FY2015/6 and consolidated for FY2016/6 and thereafter17

Financial Condition for the 1Q of FY2023/6 (Consolidated)
Unit: 1 million yen
End of
FY2022/6

Difference

End of 1Q of
FY2023/6(From the previous
quarter)Current assets

6,303

6,021

-282

Non-current assets

1,511

1,548

36

Total assets

7,815

7,569

-245

3,686

3,384

-301

707

688

-18

Total liabilities

4,393

4,073

-320

Total net assets

3,421

3,496

74

Total liabilities andnet assets

7,815

7,569

-245

Capital-to-asset ratio

43.8%

46.2%

-

Current liabilities
Non-current liabilities© 2022 System Support Inc.

Main factors of change
Increase: Notes and accounts receivable - trade, andcontract assets+ 92
Property, plant and equipment+48
Decrease: cash and deposits-405

Increase: Short-term borrowings
Provision for bonuses
Decrease: other
Income taxes payable

+275
+265
-673
-211

Increase: Retained earnings

+71

18

Growth Strategy by Segment (Cloud Integration Business)
Business outline: Technical support for migration and use of cloud services (ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) and resale of licenses, etc.
1

Expansion of the corresponding area
Expanding investment to quickly develop new overseas cloud services in theJapanese market and expanding the range of supported services

2

Expansion of existing businesses
Focusing on AWS, Microsoft Azure, Google Cloud, and ServiceNow, which
are the mainstays of this business, Our Company will strengthen thedevelopment of proprietary services to further enhance customer
convenience and improve the productivity of Our Group, differentiating
itself from other cloud integrators. We are also considering value-added
features that will differentiate the resale of cloud accounts from othercompanies.

(100 million yen)

20,000Receives customer referrals
from global IT vendors andincreases orders

Expansionof orders

Cloud platform services (IaaS/PaaS) market
trends and forecasts*
CAGR of 23.1% for 2018–2024 (forecast)

15,00010,000
5,000

5,000
0

Developing cloud-related engineers expand orders andmaintain and improve a virtuous cycle of further growth of
Our Company business through market growth

6,900

8,500

10,50015,10017,40012,600Engineertraining andknow-how
accumulation

2018
2019
2020
2021
2022
2023
2024
2018年 2019年 2020年
2021年
2022年 (Forecast)
2023年 (Forecast)
2024年
2020年(Forecast)
2021年 (Forecast)
2022年
2023年

予測
予測

予測
予測

Strengthening
relationships
with global IT
vendors

予測
予測

Strengthens relationships with global IT
vendors by gaining technicalcertifications and recognition
Actively invests in training cloud-related engineers

予測

Note 1: Business operator's net sales base Note 2: Forecasts for 2021 and subsequent years
Note 3: Market size does not include Software as a Service (SaaS)© 2022 System Support Inc.

* Source: “Survey on the Cloud Platform (IaaS/PaaS) Services Market (2021),” by Yano Research Institute, Inc.,

announced on September 7, 2021

19

Growth Strategy by Segment (System Integration Business)
Business outline: Technical support for the introduction and use of ERP packages, construction of
infrastructure such as Oracle database, and IT system consulting, design, development,
operation, and maintenance

Growthstrategy
Expansion of existing
businesses

Strengthening project
management

Steadily recruit and train engineers
and secure orders for ERP-related,database-related, RPA-related, andother IT system development, which
are the mainstay of this business.

Continue project management fromthe perspective of quality, duration,
cost, and risk control to curb theoccurrence of unprofitable projects
and improve service quality© 2022 System Support Inc.

Strengthening relationshipwith customers

Our Company engineers work closely withcustomers such as user companies toexpand projects and continue receiving
orders from existing customers■Efforts to secure stable orders

User
company

SIer

Our Group

Percentage of directtransactions: 67.4%*1
Customer repeat rate: 74.4%*2

Build close relationships with user
companies to expand projects andcontinue receiving orders*1 Percentage of our net sales for FY2021/6. *2 Percentage of customers with sales recorded by Our Company in FY2020/6 who continued to record sales in FY2021/6

20

Growth Strategy by Segment (Outsourcing Business)
Business outline: Our Group’s private cloud and other data center services, data analysis and input, and nearshore system operation and maintenance■Features of Our Group’s data center•

Growthstrategy
Data center expansion

Target customers different from major
cloud users, and use AI-related and otherunique services as a hook tool to build up
customers and data usage.

Expansion of ERP nearshore

With the need for maintenance of ERP
products, centered on SAP ERP,
expected to increase toward 2027, Our
Company is strengthening its system
by training near-shore personnel in the
Kanazawa area.

Continuous data center
facility expansion

Gradually expand facilities according tooperating conditions to both improve quality
and ensure profitability.

••

Our Group’s data centers are located in Kanazawa and Tokyo, andcustomer companies use servers at the data centers.
The revenue structure is based on long-term continuous use, nottemporary use, and charges are based on the amount of data used,
so the more data is entrusted to us, the more stock-type sales willaccumulate.
It can also be used as a BCP measure by setting up a data centerin Kanazawa City, where earthquakes rarely occur*.

(1 million yen)

Data center monthly stock amount trend

110
100
90
80
70
60
50
40
‘19年
FY2019/6
6月期‘20年
FY2020/6
6月期

‘21年
‘21
FY2021/6
6月期
6月期

‘22年
‘22
FY2022/66月期
6月期* Sources: Japan Meteorological Agency seismic intensity database Number of earthquakes of intensity 1 or greater observed in 2021: 3 (maximum intensity 2)© 2022 System Support Inc.

21

Growth Strategy by Segment (Product Business)
Business outline: Development, sales, and customization of products (software) by Our Group
Mainly cloud-based products (monthly billing system); sales expansion throughdistributors in addition to direct sales
Number of companies with system installed(Company)

2000

Growthstrategy
Customer expansion

Maintaining andimproving highprofitability

Existing main products are almost
profitable, with segment profit ratio of
24.3% in 1Q of FY2023/6. Maintain astructure in which sales growth leads
to higher profits and secure highprofits.
* As of September 30, 2022 (cumulative)© 2022 System Support Inc.

In order to increase new customers, Our
Company will expand sales channels foragents and strengthen advertising andpublicity. In addition, Our Company will aim toincrease the number of users by expanding thenumber of divisions within existing customers.

1500
1000
500
0

31, Mar. 31, Jun. 30, Sep. 30,
Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Feb. 29, Mar. 31, Jun. 30, Sep. 30, Dec.
‘21
‘21
‘22
‘20
‘20 ’21年‘21 ’21年‘21 ’21年
’19年
’19年
’19年
’20年
’22年
’22年
’22年
‘22
‘19
‘19
‘19
‘20 ’20年‘20 ’20年
2020
2021
2021
2021 ’21年
2021
2022
2022
2019
2019
2019
2020 ’20年
2020
2020
2022
12月
9月末
3月
6月末
6月末 9月末 12月末 3月末 6月末 9月末 2月末 3月末 6月末
末 3月末
6月末 9月末 12月末 3月末 6月末 9月末 12月末 3月末 6月末 9月末 12月末
6月末
9月末
末
Tateyakusha
建て役者

MOS

Construction information management
system for the building industry

Shugyoyakusha
就業役者

SHIFTEE

Mobile order and supply system

Tateyakusha

Functional
enhancement

Continue to enhance existingproducts to reduce lead time until
introduction and improve
competitiveness against othercompanies’ products.

692 companies (including OEMs)*

640 companies*

Cloud-based shift management
systemAttendance and work management
system
Shugyoyakusha

106 companies*

143 companies*

22

Growth Strategy by Segment (Overseas Business)
Business overview: System integration overseas (in the U.S. and Canada), outsourcing of payroll andaccounting services, recruitment services, and media management

Growthstrategy

Our subsidiary
STS Innovation Canada(Vancouver, Canada)

Support forcompanies entering
North America
Expansion of
cutting-edge
services in Japan

Collecting cutting-edge IT
information to develop
promising businesses inJapan© 2022 System Support Inc.

Support for IT infrastructure,
recruitment, and marketing ofJapanese companies entering
North America

Strengthening
outsourcing services

Strengthen remote monitoring
services for Japanese companies
using the time difference between
Japan and North America andoutsourcing services for Japanesecompanies in the U.S.

Support for companies entering
North America and remotemonitoring service using timedifference★
★

Outsourcing
services forJapanesecompanies in
the U.S.
Our subsidiary
STS Innovation(Silicon Valley,
U.S.A.)

23

Our Company Topics for FY2023/6 (July 2022 to October 2022)
Date

Subject

July 8, 2022

Number of Google Cloud certifications held by our employees exceeds 120.
Focusing on training engineers in data analysis, a field in which Google Cloud excels.

July 8, 2022

Our employees have won the Microsoft MVP award (Data Platform) five times in a row.

July 12, 2022

System Support moved Microsoft Base Kanazawa in front of Kanazawa Station.
Started offering free DX education for the public, and set up co-working space with private booths.

July 25, 2022

Conducted an online seminar (Microsoft Base Kanazawa New Facility Opening Ceremony and Opening Memorial Webinar).

August 1, 2022

System Support assisted in the migration of the Nikkei ID platform from on-premise to AWS.
Succeeded in a secure migration of the Nikkei ID, which is used by 10 million members for web service logins, with short downtime andno complete shutdown.

August 30, 2022

Microsoft Base Kanazawa is certified as a subsidized facility for the “Project to Expand the Use of Private Facilities Utilizing Trees in
Ishikawa.”

September 20, 2022

Received Oracle Certification Award 2022.

October 3, 2022

System Support provides DX training at Microsoft Base Kanazawa for young employees of Ishikawa Prefectural Police.
They learned basic knowledge of DX and simple web application development.

October 4, 2022

System Support obtained data analysis specialization with Google Cloud Partner Advantage program.
Proved our proficiency and successful track record in data analysis.

October 6, 2022

System Support developed three solution packages that leverage Google Cloud services and launched them on October 6.
Google Cloud services are packaged and can be started in a short period of time.

October 21, 2022

System Support held “HoloWeen,” a Halloween event where visitors can experience cutting-edge MR (Mixed Reality) technology.
Microsoft HoloLens 2 utilized at Microsoft Base Kanazawa.

© 2022 System Support Inc.

24

Microsoft Base Kanazawa Initiatives
Microsoft Base Kanazawa started full-scale operations in August 2022 under
the concept of “Kanazawa-based IT urbanization in the Hokuriku area.”
Universities
andstudents

Enterprises
Community

Stakeholders••

Support for the promotion of DX by industry, academia, and the publicthrough the provision of free DX education, etc.
Expanding local businesses, revitalizing the economy, and creating new
business opportunities by providing co-working spaces and other businessspaces.

Implementation offree DX education© ©20222022 System
SupportInc. Inc.
System
Support

Provision of business space(co-working space)Interaction with IT
engineers and holding
events

Latest VR and
MR experiences
25
25

Disclaimer and Forward Looking Statements
This document has been prepared by System Support Inc. (hereinafter referred to as “Our

Company”) for the purpose of providing investors with an understanding of the current
status of Our Company.
The contents of this document are prepared based on economic, social, and otherconditions generally recognized as prevailing at the time this report was prepared, as wellas certain assumptions that we have judged to be reasonable, but may be subject to change
without notice due to changes in the business environment or other reasons.
The materials and information provided in this presentation include so-called “forward
looking statements.” These statements are based on current expectations, projections, andassumptions with risks and involve uncertainties that could cause results to differ materiallyfrom those in the statements.
Such risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions such as interest rate and currency
exchange rate fluctuations.
For further information, please contact:
Investor Relations, Administrative Planning Department, System Support Inc.
TEL: 076-265-5151 E-mail: ir@sts-inc.co.jp© 2022 System Support Inc.

26

Thank you