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 Six Months Ended December 31, 2021
(Based on Japanese GAAP)
February 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:

February 10, 2022
March 15, 2022

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

076-265-5151(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended December 31, 2021 (from July 1, 2021 to December 31, 2021)(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%
Six months ended December 31, 2021
7,790
12.6
587
15.6
592
14.5
393
14.2
Six months ended December 31, 2020
6,917
5.2
508
25.1
517
38.4
344
43.6
Earnings per share

Diluted earnings per share

Yen
37.97
33.49

Six months ended December 31, 2021
Six months ended December 31, 2020

Yen
37.86
33.15(2) Consolidated financial position
Total assets

Net assets

Millions of yen
7,013
6,662

As of December 31, 2021
As of June 30, 2021

Equity ratio

Millions of yen
3,184
2,993%
45.4
44.9

2. Cash dividends
Annual dividends per share

Year ended June 30, 2021
Year ending June 30, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
12.00

Yen–

Yen
21.00

Yen
21.00

–

12.00

24.00

Year ending June 30, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending June 30, 2022 (from July 1, 2021 to June 30, 2022)
Net sales
Full year

Millions of yen
15,962

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
10.6
1,080
16.0
1,066
11.7
745
10.5
71.98

1

4. Notes(1) Changes in significant subsidiaries during the six months ended December 31, 2021
(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 December 31, 2021

10,370,000 shares As of June 30, 2021

10,370,000 shares

Number of treasury shares at the end of the period
As of December 31, 2021

19,723 shares As of June 30, 2021

18,123 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended December 31, 2021

10,350,982 shares Six months ended December 31, 20202

10,276,606 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,697,455
2,205,577

2,841,071–

Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods–
34,8992,584,002
34,793Work in process
Supplies

123,068
4,041

22,156
3,433

Other
Total current assets

254,284

261,987

5,319,326

5,747,444

323,867
213,044287,202210,459

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets

3806,027

768,206

1,342,940

1,265,868

6,662,266

7,013,313

(Thousands of yen)
As of June 30, 2021

As of December 31, 2021

Liabilities
Current liabilities
Accounts payable - trade544,966

562,782

Short-term borrowings
Current portion of long-term borrowings

695,000
87,2391,235,000
75,314

Lease obligations
Income taxes payable

19,826
209,716

14,334228,163

8,716
4,144

28,626
149

Reserve for quality assurance
Other

5,752
1,548,293

11,903
1,156,017

Total current liabilities

3,123,656

3,312,290

Non-current liabilities
Long-term borrowings

170,707

133,590

30,20023,890207,704

220,316

134,003

136,141

2,941

2,263

Provision for bonuses
Provision for loss on order received

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

545,558

516,201

3,669,214

3,828,492

Share capital
Capital surplus

723,122549,639

723,122549,639

Retained earnings
Treasury shares

1,745,671(18,655)

1,935,990(18,655)

Total shareholders' equity

2,999,778

3,190,096

Accumulated other comprehensive income
Foreign currency translation adjustment(2,326)(2,002)Remeasurements of defined benefit plans(4,399)(3,273)

Total accumulated other comprehensive income(6,725)(5,275)2,993,052

3,184,821

6,662,266

7,013,313

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)Six months ended

Six months ended

December 31, 2020

December 31, 2021

Net salesCost of sales

6,917,937
5,103,890

7,790,042
5,740,454

Gross profit

1,814,046

2,049,588

Selling, general and administrative expenses

1,305,557

1,461,693

508,488587,894

42544

12316

20,1891,305

10,624
1,480

Operating profit
Non-operating income
Interest income
Commission income
Subsidy income
Dividend income of insurance
Other
Total non-operating income

387

2,408

22,468

14,842

8,150
5,374

7,163
3,018

6

1

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

13,531

10,183

Ordinary profit

Total non-operating expenses

517,424592,554

Profit before income taxes

517,424592,554

Income taxes

173,273

199,529

Profit344,151

393,024

Profit attributable to owners of parent

344,151

393,0245

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

ProfitOther comprehensive income

Six months ended

Six months ended

December 31, 2020

December 31, 2021

344,151

393,024

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(497)
859

324
1,125

Total other comprehensive income

362

1,449

344,513394,474

344,513394,474

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on order received
Increase (decrease) in reserves for quality assurance
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued expenses
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Other, net

Six months ended

Six months ended

December 31, 2020

December 31, 2021

517,424
81,206
2,037
26,247(88)592,554
87,327
2,037
23,275–9,414

12,611

5,060
18,528
7,160
(895)
(42)
8,150
(263,789)
6,300
7,073
(420,197)(14,803)(106,088)(8,448)3,759
19,782(3,994)
6,150
(12)
7,163
(377,919)
101,625
17,741(420,441)(23,419)(58,160)
120,387

Subtotal(125,749)

110,469

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

42(8,280)(155,887)451

12(7,114)(181,410)–

Net cash provided by (used in) operating activities(289,424)(78,043)(37,400)
48,500(5,625)(40,488)(75,210)(9,000)181(1,800)(39,900)
54,700(6,348)(7,352)(37,977)–393–

Net cash provided by (used in) investing activities(120,844)(36,484)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Dividends paid
Proceeds from exercise of employee share options

495,000
40,000(65,621)(11,940)(100,113)
10,720540,000–(49,042)(11,802)(216,387)–

Net cash provided by (used in) financing activities

368,045

262,768(582)573Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of insurance funds
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Payments for asset retirement obligations

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(42,805)

148,813

Cash and cash equivalents at beginning of period

1,929,392

2,199,873

Cash and cash equivalents at end of period

1,886,587

2,348,686

7