Supplementary Materials for
Financial Results for the Fiscal
Year Ended June 30, 2024
System Support Inc. (Security Code: 4396)
August 7, 2024

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

22,029 million yen (FY2024/6, consolidated)

Representative

Ryoji Koshimizu, Representative Director

Number of
employees

1,484 (as of June 30, 2024, consolidated)

Group bases

Tokyo, Nagoya, Osaka, and Kanazawa (headquarters),
United States (Silicon Valley, LA), Canada (Vancouver)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.

The head office is located in Kanazawa City, and the center ofbusiness including employees and customers is Tokyo, Nagoya,
and Osaka.
85% of employees are engineers

Overseas (U.S. & Canada)
13
Kanazawa 288
Tokyo 771
Nagoya 194
Osaka 218

■System Integration Business

Number of employees by region(as of June 30, 2024, 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© 2024 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
We continue to experience high growth through astrategy of investing in training of cloud and otherengineers and actively expanding services of global IT
vendors in Japan(1 million yen)

25,000Entered a Celonis Partner Program Agreement with CELONIS K.K.
Entered a Subcontractor Agreement with Automation Anywhere, Inc

20,000Entered a Google Cloud & Google for Education Commercial Partner Program Agreement with Google Cloud Japan G.K.
Received Microsoft Cloud Platform Gold Competency certification

15,000Received 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.
Entered a SAP Service Partner contract with SAP Japan Co., Ltd.

5,000

Entered an Oracle EBS Technical Partner contract with Oracle Corporation Japan'80/12 '82/12 '84/6

'86/6

'88/6

'90/6

'92/6

'94/6

'96/6

●Established System Support Inc. in Kanazawa City, Ishikawa Prefecture

'98/6

'00/6

'02/6

'04/6

'06/6

'08/6

'10/6

'12/6

'14/6

'16/6

●eNet Solutions Co., Ltd. financed and founded●Nagoya Office opened●Tokyo Office opened

'18/6

'20/6

'22/6

'24/6

0

●Listed on TSE Mothers●Osaka Office opened●Listed on TSE First Section●STS Medic Inc. financed andfounded●Moved to TSE Prime●Acquired shares of T4C Co., Ltd., andmade it a subsidiary●STS Digital Inc.
financed and founded●Acquired shares of Across Solutions, Inc. and made it a subsidiary●STS Innovation, Inc. financed and founded in California, USA© 2024 System Support Inc.

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

●STS Innovation Canada, Inc. financed andfounded in Vancouver, Canada

3Summary of Financial Results of FY2024/6 and Earning Forecast of FY2025/6
Contents
1．Financial highlights
2．Forecast for full year earning of FY2025/6 (consolidated)
3．Business segments
4. Net sales and income by segment (consolidated)
5. Human resources strategy© 2024 System Support Inc.

4

Financial Highlights of FY2024/6
 Net sales grew steadily, exceeding the initial forecast.

In particular, the Cloud Integration Business is expected to remain in high demand and to continue to strongly drive overall sales and profits.

 Operating profit not reach the initial plan mainly due to a temporary increase in SG & A expenses.

Expenses related to two M & As (30 million yen) and bad debt losses and related provision of allowance for doubtful accounts (57 million yen) were incurredin the fourth quarter, and preparation expenses for transition to a holding company and travel and transportation expenses increased from the initial
forecast.

 Recruitment is generally progressing according to the plan.

Annual net increase in the number of employees was 136, 10.1% year on year, steadily reinforcing the service provision system.

 The impact of the Noto Peninsula earthquake that occurred on January 1, 2024 on our Group’s performance is minor.
Unit: 1 million yen

FY2022/6

FY2023/6

FY2024/6

22,0296,091+2,762+863+14.3%

101.1%+16.5%-(Period over period)

PercentagechangeNet sales

16,198Gross profit

4,336(26.8%)

5,227(27.1%)

Operatingprofit1,196（7.4%)

1,456（7.6%)

1,670 （7.6%)+214+14.7%

94.8%

Ordinary profit

1,190（7.3%)

1,465（7.6%)

1,743 （7.9%)+277+19.0%

99.3％

Profit attributable toowners of parent

785（4.9%)

1,009（5.2%)

1,224 （5.6%)+214+21.2%

104.9%© 2024 System Support Inc.

19,267(Period over period)

Progress rate
against full-year
forecast

Difference(27.7%)*Profit ratio in ()

5Forecast for Full Year Earning of FY2025/6 (Consolidated)
Unit: 1 million yen

Net sales
OperatingprofitOrdinary
profitAnnual dividends

Profitattributable toowners ofparentInterimdividends

PercentagechangeFY2023/6

FY2024/6

FY2025/6

19,26722,02926,087＋18.4%30,000

1,456

1,670

2,115

＋26.6%25,000

1,465

1,743

(Forecast)

2,106(Period overperiod)■ Net sales/operating profit

15円

1,224
18円

1,444
24円

22,02919,26720,000+20.8%

11,762

13,376+18.0%10,000-

Year-end
dividends

17円

22円

24円

-

Total

32円

40円

48円

-

© 2024 System Support Inc.

Unit: 1 million3000
yen

26,087

15,000

1,009(consolidated)

5,000
0

529

14,431754

16,198

1,456

2500

2,115

1,670

2000
1500

1,196
931

1000
500

FY2019/6 FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6 FY2025/6(Forecast)

Net sales

0Operating profit

6

Business segments
3,000
35,00030,000■Net sales(Consolidated)＊1

2,500

Cloud integration Business■Operating profit(Consolidated)*2

Unit: 1 million yen

Unit: 1 million yen

22,029

1,670

2,000

25,00019,26720,00016,198

1,456

1,500
1,196

15,0001,000

System integration Business
Steadily secure sales and profits as a stable business. In addition,
we will provide a diverse lineup of services in this business tocustomers in other businesses to support them to receive orders.
We will also encourage engineers to shift their skills to the cloud
sector, contributing to a high growth of the entire Group.

Outsourcing Business

10,000

Steadily expand sales and profit by accumulating stock-based
revenues, mainly in our own data center.

500

5,000
0

The most important business driving the Group’s growth. Taking
advantage of market growth, we will actively invest in expanding
new areas such as AI and promoting existing businesses, andsecure stock-based revenues through resale.

FY2022/6 FY2023/6 FY2024/6

0

Product Business
FY2022/6 FY2023/6 FY2024/6■ Cloud integration■ System integration■ Outsourcing ■ Product■ Overseas© 2024 System Support Inc.

*1 Net sales are sales to external customers.

Steadily build up stock-based revenues such as license fees andexpand a high-margin and stable earnings structure.

Overseas BusinessIn addition to research on the most advanced IT information in
North America, we have strengthened the system to ensure that
this business alone generates profits.

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

7

Consolidated Net Sales and Income by Segment of FY2024/6

Cloud Integration Business•••

Demand continues to be strong with DX as a tailwind, and we are steadilystrengthening our service provision system through hiring and in-house training,
so both sales and profits are progressing ahead of plan.
ServiceNow and AWS achieved high growth, due to steady orders from end users
and strengthened systems for ServiceNow, and due to steady accumulation ofresales for AWS.
Azure OpenAI, services related to Microsoft’s generative AI, and Oracle Cloud
Infrastructure have grown significantly, steadily expanding the scope of services.
■Net sales*1

8,000
7,000

2,000
1,000
0

7,217
777

5,319

5,000
3,000

2,500

3,388
71
228
409

1,150

487
564
662
1,748

1,527

1,857

FY2022/6

FY2023/6© 2024 System Support Inc.

2,471

OthersGoogle Cloud
Microsoft Azure
AWS

2,390

43.2％ increase

2,140

2,000

849
728

Unit: 1 million yen

ServiceNow

1,495

1,500
1,000
500
0

FY2024/6*1 Net sales are sales to external customers.

981
29.0%

28.1%

29.7%

FY2022/6

FY2023/6

FY2024/6

Gross Profit

Cloud Integration
Business

32.8%

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

Composition of net sales
by segment(FY2024/6)

53.5%■Operating profit/profit ratio(Segment profit/profit ratio*3)■ Gross profit/profit ratio*2

Unit: 1 million yen

35.7％ increase

6,000
4,000

9.3%

1.0%
3.5%

100.0%
90.0%
1,400
80.0%
1,200
70.0%

60.0%
1,000
50.0%
800
40.0%
600
30.0%
400
20.0%
200
10.0%
0.0% 0Gross Profit ratio*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.

Unit: 1 million yen

50.0%

43.8％ increase

1,168

40.0%
30.0%

812
554

20.0%

16.4%

15.3%

16.2%

FY2022/6

FY2023/6

FY2024/6

Segment Profit

10.0%
0.0%

Segment Profit ratio
8Cloud Integration Business Details (1) Cloud platform migration (Microsoft Azure, AWS, Google Cloud, Others )and usage support
 We provide cloud migration and usage support, leveraging ourCloud integration business
Sales composition ratio

strengths in the area of using cloud databases and data analysis
platforms.
 After migration, we secure stock-type revenue without requiring
human labor by reselling cloud accounts.
 Structure that supports high growth through steady
accumulation of resales■ Net sales for cloud platform
migration, usage support, etc.
5,000
4,500
4,000
3,5004Q
3,0003Q
2,500
2,0002Q
1,5001Q
1,000
500
0

Unit: 1 million yen

4,826
3,462
1,046
1,860

944

586
424
490
359
FY2022/6

850
*1

1,342
1,333
1,216

621

934

FY2023/6

FY2024/6+39.4％
Period overperiodCloud Platform Migrationand Usage Support（AWS, Microsoft Azure,
Google Cloud, Others ）ServiceNow■Flow of cloud platform migration and usage support
Our main services

Reselling cloud accounts (pay-as-you-go or bulk
purchases based on data usage) from Our Company
to customers to ensure stock revenue

Proposal and design■ Changes in resale net sales in net sales for
Before cloud ▼cloud platform migration, usage support, etc.
Migration and usage
migration
2,490 Unit: 1 million yen
2,500
support+51.0％(creation of cloud environment)▼

After cloud
migration(Delivery)▼
Operation andmonitoring
Resale

648

4Q
2,000

1,648

3Q
1,500
1,000
2Q
500
1Q
0

759
153
141
273
191

773
216
212
181
163

420

991
273
216
287
214

424
470
*2

333

Period overperiod

736
653
452

FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6© 2024 System Support Inc. *1 There have been minor revisions to the net sales figures for each quarter of the fiscal year ended June 30, 2022, compared with the figures shown in the supplementary materials for the 1Q trough 3Q of the fiscal year ended June 30, 2023.
*2 There have been minor revisions to the sales figures for each quarter of the fiscal year ended June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of the fiscal year ending June 30, 2023.

9

Cloud Integration Business Details (2) Support for the Introduction and Use of ServiceNow We have achieved high growth through a system that ranks 3rd in

Cloud integration business
Sales composition ratio

Japan in the number of ServiceNow certified build certificationsacquired*1 and the know-how accumulated over the approximately
10 years since the start of service provision within our group.
 First domestic company certified as a Bronze Services Partner in
2017*2; currently the Elite Partner.
 We maintain high profit margins because engineers are rare in thisfield.
■ Net sales of ServiceNow
2,500

Net Sales:+28.7％

0■Number of our ServiceNow certified build certifications *3

1,857
1,527

473

387

488

410
312
＊

FY2022/6

Eligible certifications arechanged since May 2023

620
581

461

416

Unit: Case

2,390

Period over period

2,000
1,500
4Q
1,000
3Q
2Q
500
1Q

Unit: 1 million yen

ServiceNow
Cloud Platform Migrationand Usage Support（AWS, Microsoft Azure,
Google Cloud, Others ）Gross profit ratio:
FY2023/6：44.5%
FY2024/6：45.0％

320

655

434

534

FY2023/6

FY2024/6*There have been minor revisions to the sales figures for each quarter of the fiscal year ended
June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of
the fiscal year ending June 30, 2023, but the full-year total figures remain unchanged.
© 2024 System Support Inc.

37
June 30,
2020

69

84

December31, 2020

June 30,2021

144
January 15,
2022

176
June 30,
2022

353

386

375

439

187
September May 2, 2023
30, 2022

July 31,2023

November 2, February 29, July 5, 2024
2023
2024

＊1 From the ServiceNow Japan website (As of July 5, 2024 Eligible certifications: CTA, CSA, CAD, CAS-PA, CIS, Developer Core Skills, Suite(Pro))＊2 From the ServiceNow partner program of ServiceNow, Inc. in the U.S.
＊3 Eligible certifications: CIS, CAD, CAS, CTA until the end of September 2022, CTA, CSA, CAD, CAS-PA, CIS, Developer Core Skills, Suite
10(Pro) from May 2023

Consolidated Net Sales and Income by Segment of FY2024/6

System Integration Business•

9.3%

Fields where our Group has strengths, such as ERP (SAP)-related fields,
are performing well.
Both sales and profit were lower than planned due to the increasing shiftof engineers from this business to the Cloud Integration Business.
The decrease in segment profit was mainly due to the effect of theallocation of SG & A expenses, and it was concluded that there was no
significant decrease in the profitability of the business.

••■Net sales*1
14,00012,00010,0008,000

10,498

5,673

11,315

6,315

11,777

6,792

6,000
4,000
2,000
0

1,929

1,804

2,895

3,195

FY2022/6

FY2023/6© 2024 System Support Inc.

3,500
3,400
3,300
3,200
3,100
3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800
1,700
IT system
1,600
development 1,500
1,400
1,300
1,200
1,100
1,000
Database
900
800
700
600
500
400
300
ERP
200
100
0

53.5%

Unit: 1 million yen

Unit: 1 million yen

1,683
3,301
FY2024/6*1Net sales are sales to external customers.

0.0％
2,456

2,695

2,694

50.0%
500

18.0%

40.0%
400
35.0%
25.0%

23.8%

22.9%

273
217

20.0%
200

(93.7％)4.0%

10.0%
100

FY2022/6 FY2023/6 FY2024/6

Gross Profit

0.0%
0Gross Profit ratio

Unit: 1 million yen
Segment profit(operating profit)
16.0%
decreased due to the effect of anincrease in14.0%
common SG & A
expenses such as Head Office
expenses,12.0%
which are prorated andallocated according to the incurred
cost of eachsegment, as well as
10.0%
an increase in cost of thebusiness. 8.0%

6.0%

15.0%
5.0%

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■Operating profit/profit
ratio
20.0%
(Segment profit/profit ratio*3 )

45.0%

30.0%
300
23.4%

32.8%

Composition of net sales
by segment(FY2024/6)■Gross profit/profit ratio*2
+4.1％

1.0%
3.5%

2.6%

1.9%

13

0.1%

FY2022/6 FY2023/6 FY2024/6

Segment Profit

0.0%

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.

2.0%

11

Consolidated Net Sales and Income by Segment of FY2024/6

Outsourcing Business•In the data center business, Net sales steadily increased due to theaccumulation of stock-type revenues such as monthly subscription fees
and the rise in user fees per company due to the expansion of customer
usage, and gross profit increased due to the introduction of high profit
margins.
Near-shore sales (SAP ERP maintenance, etc.) in Kanazawa expanded
due to system reinforcement.

•

2,500

Unit: 1 million yen+15.3％

2,000
1,500

1,000

■Net sales*1

1,772
1,541
256

402

500

600
500

analysis, input,■Datanear-shore, etc.

1,000
1,285

1,641

400
300

FY2022/6© 2024 System Support Inc.

FY2023/6+23.1％

688

559
482
33.7%
31.3% 31.5%

70.0%
300
60.0%
250
50.0%
200
40.0%
150
30.0%
10.0%50

FY2024/6*1Net sales are sales to external customers.

90.0%
Unit: 1 million yen

80.0%
350

100

Gross Profit
Gross Profit ratio■Changes in stock sales in net
sales of Outsourcing Business■Operating profit/profit ratio
400
90.0%
)
(Segment profit/profit ratio*3100.0%

100
20.0%

FY2022/6FY2023/6FY2024/6

Composition of net sales
by segment(FY2024/6)

53.5%

100.0%

200
00

Unit: 1 million yen

700■Data center
1,444

900
800

2,043

327

■Gross profit/profit ratio*2

1.0%
3.5%
9.3%
32.8%

Outsourcing Business
Our Group’s private cloudand other data center
services, data analysis andinput, and near-shore system
operation and maintenance

0.0%

0

+37.6％
188

12.2%

287

50.0%

14.1%

FY2022/6 FY2023/6 FY2024/6

Segment Profit
Segment Profit ratio

1Q

2Q

1,061

40.0%

274

30.0%

267

20.0%
10.0%
0.0%

1,157
302
293

261

283

258

278

4Q
1,294
338
326

+8.9%

Period over period

1,410
368
355

319

345

309

340

FY2021/6 FY2022/6 FY2023/6 FY2024/6*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.

3Q

70.0%
60.0%

209

11.8%

80.0%

Unit: 1 million yen

12Consolidated Net Sales and Income by Segment of FY2024/6

Product Business

Product Business
Development and saleof products (software)by Our Group, andcustomization according
to user companies’
applications•

Stock-type revenues such as license fees are steadily accumulating and are
expected to continue to increase in the future.
• SHIFTEE’s sales decreased due to a decrease in customization at the time of
introduction, but stock sales increased.
• Although gross profit increased due to the acquisition of new high-margin
installation projects and an increase in the ratio of stock sales,450
the operating profit
1,200 was affected by an increase in selling, general and administrative expenses due to400
exhibitions and sales activities.
800■Net sales*1

1,000+10.9％

800
670
600
400

Unit: 1 million yen

98
75
71
231

693
95
70
78
233

769
105
90
74
242

194

0

FY2022/6© 2024 System Support Inc.

215
FY2023/6

256

FY2024/6

90.0%

Composition of net sales
by segment(FY2024/6)

53.5%■Changes in stock sales in
net sales of Product Business*2■ Gross profit/profit ratio140.0%■Operating profit/profit80.0%
ratio
350
*3)
700
(Segment profit/profit ratio
Unit: 1 million yen
70.0%

600
Others 500
400
ShugyoYakusha300
SHIFTEE
200+20.3％
399

59.6%

120.0%
300

516

429

61.9%

200
80.0%
67.1%

0
Tate
Yakusha

181(2.8％)

60.0%

196

50.0%

190

150
60.0%
100
40.0%

27.0% 28.3%

24.8%

20.0%50
FY2022/6 FY2023/6 FY2024/6

Gross Profit
Gross Profit ratio*1Net sales are sales to external customers.

0.0%

0

Unit: 1 million yen+5.6%

Unit: 1 million yen

100.0%250

MOS 100

200

100.0%

1.0%
3.5%
9.3%
32.8%

1Q

40.0%

301

30.0%

77

20.0%

76

10.0%
FY2022/6 FY2023/6 FY2024/6

Period over period

0.0%

2Q
350
89
89

3Q

4Q
396
102
98

73

89

100

74

82

95

446
113
109
114
109

FY2021/6 FY2022/6 FY2023/6 FY2024/6

Segment Profit
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.

13

Consolidated Net Sales and Income by Segment of FY2024/6

Overseas Business•

System integration, recruitment services, and outsourcing of payroll andaccounting services in North America are performing well.
• System integration project status affects gross profit margin.
• We are steadily expanding a system that allows this business to generate
350 profits independently.
300 ■Net sales*1
250+33.1％

221

200

140

180.0%

120+11.6％
88

160.0%
99

60

98

40

50

20
0
FY2022/6© 2024 System Support Inc.

FY2023/6

FY2024/6*1Net sales are sales to external customers.

140.0%
120.0%

80150

0

Unit: 1 million
yen
200.0%

100

166

100

■Gross profit/profit ratio *2

Unit: 1 million yen

100.0%
80.0%

51
52.4%

FY2022/6

53.3%

FY2023/6

Gross Profit

44.7%

FY2024/6

1.0%

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

Composition of net sales
by segment(FY2024/6)

53.5%

160.0%

90

Unit: 1 million yen

80

140.0%(5.6％)

70

61

60

120.0%
58

50
40
30

40.0%

20

20.0%

10

0.0%

0

100.0%
80.0%

35

60.0%
40.0%

35.7%

37.1%

FY2022/6

FY2023/6

Segment Profit*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.

32.8%■Operating profit/profit ratio
100 (Segment profit/profit ratio *3)

60.0%

Gross Profit ratio

3.5%
9.3%

26.3%
FY2024/6

20.0%
0.0%

Segment Profit ratio

14

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 (consolidated)
Unit: People

Aiming to achieve both active recruitment and acomprehensive training system, we have continued
to systematically increase the number of employees
by just under 10% every year.
1400
1200
1000

800
600

956

876

11.8%

799

400

8.1%

0

157

200

1,039
9.6%

7.7%
163

1,126
949

1,233

Unit: People

1,348
1,134

1,484
1,254

1,039
11.9%

9.2%

5.9%
177

9.1%

4.9%
194

5.4%
214

6.4%
230

FY2019/6 FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6

20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

■ Engineers■ Sales, management, etc.
― Retirement rate--- Turnover rate in the information and communications industry*© 2024 System Support Inc.

* Source: Ministry of Health, Labor and Welfare, Turnover Rate by Industry of Employment Trend Survey

FY2022/6

FY2023/6

FY2024/6

FY2025/6（Planned）

New graduate
recruitment(consolidated)

70

85

106

133

Mid-career
recruitment(consolidated)

83

100

120

122

Retirement rate(consolidated)

4.9%

5.4%

6.4%

-

Average age(unconsolidated)

35.4
years old

35.1
years old

34.8
years old-15

Reference Materials
Contents
1．Growth strategy by segment
2. Growth Investment Policy
3. Shareholder Return Policy
4. Sustainability Policy
5. Our Company topics© 2024 System Support Inc.

16

Growth Strategy by Segment - Whole Picture* The size of circle is the amount of sales.

Growth potential
The most important business driving the Group’s
growth. Taking advantage of market growth, wewill actively invest in expanding new areas suchas AI and promoting existing businesses, andsecure stock-based revenues through resale.

Cloud Integration BusinessOutsourcing Business

Overseas Business

Product Business

Steadily expand sales and profit byaccumulating stock-based revenues,
mainly in our own data center.

System Integration Business© 2024 System Support Inc.

In addition to research on the mostadvanced IT information in North
America, we have strengthened
the system to ensure that thisbusiness alone generates profits.

Steadily secure sales and profits as a stable business. In addition,
we will provide a diverse lineup of services in this business tocustomers in other businesses to support them to receive orders.
We will also encourage engineers to shift their skills to the cloud
sector, contributing to a high growth of the entire Group.

Steadily build up stock-based
revenues such as license fees andexpand a high-margin and stableearnings structure.

Profitability
17

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. (Resale) In this business, a driving force of our Group, we will actively invest in expanding our scope ofbusiness and growing our existing businesses, while also expanding the virtuous cycle in which
training engineers leads to increased orders.

1 Expansion of the corresponding area

Expand the range of services by investing in AI-related services and new overseas services inorder to be the first to deploy such services in the Japanese market.

2 Expansion of existing businesses

Focusing on AWS, Microsoft Azure, Google Cloud, and ServiceNow, which are the mainstays ofthis business, we will promote the recruitment and training of engineers and further enhancecustomer convenience as well as strengthen the development of unique services to improve theproductivity of our Group, aiming to differentiate ourselves from other cloud integrators.

Training cloud-related
engineers will lead to anincrease in orders, andmarket growth will further
grow our business.

Expansionof orders■Net sales of Cloud Integration Business

Unit: 1 million yen

16,00080%

14,00012,00010,000
8,000
6,000
4,000

60%

31% 7,217
29% 5,319
35%
3,388

40%
20%

2,000
0

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)© 2024 System Support Inc.

0%

OthersGoogle Cloud
Microsoft Azure
AWS
ServiceNow
Ratio of stock (resale) sales

Engineertraining andknow-how
accumulation

Strengthening
relationships
with global IT
vendors

Strengthens relationships with
global IT vendors by gaining
technical certifications andrecognition

Actively invests in training cloud-related engineers18Growth Strategy by Segment (Cloud Integration Business)■Changes in number of customers
in this business

146 150 158

172

189 207 204

230

280
249 268

These certifications and awards
will strengthen relationships witheach vendor and lead to customer
introductions and orders.

Unit: Company■History of major certification and awards in this business

300
Compared to ‘23/6 4Q,
the number of customer
companies increases by 70.
Customer unit price is also
on the rise.

'22/6 '22/6 '22/6 '22/6 '23/6 '23/6 '23/6 '23/6 '24/6 '24/6 '24/6 '24/6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Expansion of the Cloud Market■ Cloud platform services (IaaS/PaaS) market trends and forecasts *1
FY2021 to FY2027 (Forecast)
CAGR

19.6%

13,0002021

16,1002022

19,4002023

23,10027,40032,30038,000(100 million yen)Oracle・Received 14 consecutive awards for Oracle Database*5
Received awards including Oracle Certification Award 2020 from Oracle Japan*1“Survey on the Cloud Platform (IaaS/PaaS) Services Market (2024),” by Yano Research Institute, Inc., announced on April 23, 2024
Acquired in the “Migrating Windows Server and SQL Server to Microsoft Azure” field*3
Awarded by Our Company employees*4
Program to identify, validate, and recommend AWS Partner Network (APN) advanced and premium tier partners
19that have demonstrated technical expertise and customer success for AWS*5
Awards from 2007 to 2020*2

© 2024 System Support Inc.

AWS・Obtained Oracle competency in the AWS competency program*4
・Received APN partner award “Rising Star of the Year 2014”
Google Cloud・Acquire Data Analytics Specialization and Application Development
Specialization by the Partner Advantage Program
・Attained Premier Partner badges for Google Cloud in the Sell & Service
Engagement Models

2024
2025
2026
2027
(Forecast) (Forecast) (Forecast) (Forecast)

Note 1: Business operator's net sales base Note 2: Forecasts for 2024 and subsequent years
Note 3: Market size does not include Software as a Service (SaaS)

Microsoft Azure• Obtained Gold Cloud Platform competency certification
Recognized as a partner with an outstanding track record in Microsoft Azure
deployments
・Obtained Advanced Specialization*2
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*3
・Received Microsoft Top Partner Engineer Award
Received the Award in Azure Field in 2023 *3

Growth Strategy by Segment
Business outline

SystemIntegration
Business

Technical support for
the introduction anduse of ERP packages,
construction of
infrastructure suchas Oracle database,and IT system
consulting, design,development,
operation, andmaintenance

Growth strategy■Expansion of existing businesses

Application development andother various technologies inthis business support orders in
the Cloud Integration Business.

Provide a variety of services such as application development
to customers in other businesses, including the Cloud
Integration Business.

■Strengthening project management

Continue project management from the perspective of quality,
duration, cost, and risk control to curb the occurrence of
unprofitable projects and improve service quality.

AI-related and other unique services as a hook tool to build
up the numbers of customers and subscription fees per
customer.

■Continuous data center facility expansion

We will gradually increase equipment at our Group’s data
centers in Kanazawa and Tokyo according to operating status,achieving both quality improvement and profitability.

■Expansion of ERP near-shore

With the need for maintenance of ERP products, centered on
SAP ERP, expected to increase toward 2027, Our Company isstrengthening its system by training near-shore personnel inthe Kanazawa area.
© 2024 System Support Inc.

Percentage of direct transactions: 67.1%*1
Customer repeat rate: 85.1%*2■Provide customers with a variety of options■Data center expansion
Outsourcing Our Group’s private
cloud and other data Target customers different from major cloud users, and use
Business
center services, data
analysis and input,
and near-shore
system operationand maintenance

Client Companies

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

SystemIntegration
Business Shift engineers’ skills

Cloud Integration
Businessto the cloud sector.

■ Net sales of Outsourcing Business and ratio of stock sales(annual and monthly data center fees) against net sales
Unit: 1 million yen

3,000
2,500
2,000
1,500
1,000

75% 73%

90%

69%

2,043
1,772
1,541

60%

30%

500
0

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)*1 Percentage of our net sales for FY2023/6. *2 Percentage of customers with sales recorded by Our Company in FY2021/6 who continued to record sales in FY2022/6

0%

Net sales

Ratio of
stock
sales

20

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)

Growth Strategy■Maintaining and improving stable highprofitability

By increasing non-customized sales, we will strengthen the
structure in which increased sales lead to higher profits. We
will accumulate stock-based sales such as monthly usage fees
to ensure stable high profit margins.

■Customer expansion

In order to increase new customers, Our Company will expand
sales channels for agents and strengthen advertising andpublicity.

■Functional enhancement

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

Overseas
Business

System integration
overseas (in the U.S.
and Canada),
outsourcing of payroll
and accounting
services, recruitment
services, and media
management■Net sales of Product Business and ratio of stock
sales (monthly usage fees, etc.) against net sales
Unit: 1 million yen

1,000
800
600
400

100%

670 693

769

80%
60%

57% 58%
52%

40%

200
0

20%
FY2022

FY2023

FY2024FY2025 FY2026 FY2027(Planned) (Planned) (Planned)

Net sales
Ratio of
stock
sales

0%

■Expansion of cutting-edge services in Japan

Collecting cutting-edge IT information to develop promisingbusinesses in Japan.

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

■Strengthening outsourcing services

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

The subsidiary in Canada
provides outsourcing services
to Japanese companies in the
United States.

★
★ ★

Support companies entering
North America and provide
remote monitoring service
using time difference★: Group bases© 2024 System Support Inc.

21

Growth Investment Policy
Accelerate growth by investing cash generated from business activities
for developing new areas and strengthening business foundations.
20~24 billion yen

Policies in each sector
 Investment in human resources

Positioning human resources as a source of business growth, we will invest mainly in“active recruitment and appointment of diverse human resources” and “humanresources development” (see page 14 for human resources strategy)

 R & D investment

Focus on considering the development and strengthening of services, especially AI
and cloud services.

1.28 billion yen

 M & A investment

Dynamic implementation of M & A to expand the service lineup and resources ingrowth areas.

■ Changes in investment-related expenses
Unit: 1 million yen

535

600
500

FY2022/6 to FY2024/6(cumulative)

FY2025/6 to FY2027/6(plan and cumulative)■ Investment in human resources (recruitment-related expenses)■ Investment in human resources (training expenses)■ Research and development (R & D) expenses ■ M & A-related expenses© 2024 System Support Inc.

400
300
200

340
2.1%

407
2.1%

2.4%

100
0

FY2022/6 FY2023/6 FY2024/6

8.0%
6.0%

■ M & A-related expenses■4.0%
Research and development expenses■ Training expenses■2.0%
Recruitment-related expenses― Percentage of net sales

0.0%

22

Shareholder Return Policy
Dividend policy
Our basic profit distribution policy is to continue to pay progressive dividends to shareholders
and increase the level of dividends in accordance with our performance and profit level, while
investing in future growth and strengthening our management structure.
Enhancement of shareholder
returns through sustainableprofit growth

Unit: Yen

■ Dividend trend ＊48
40

Shareholder returns
Progressive
dividends＋

Increasing the level ofdividends in line with
our performance andprofit levels

Growth investment
Sound financial base© 2024 System Support Inc.

32
25

24
22

17

13
21
1.5

FY2019/6

10FY2020/6

FY2021/6

Interim dividends

12
FY2022/6

15
FY2023/6

18
FY2024/6

24

FY2025/6（Forecast）

50
45
40
35
30
25
20
15
10
5
0

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

23

Sustainability Policy
Address social issues through sustainability management based on the management
philosophy.

Efforts to date
Environment

E

Advanced
Customer
Service

Contributing
to Society• The Sustainability Committee was establishedto plan and study sustainability measures.
• Implement CO2 emission reduction activities
using renewable energy.
• Start of information disclosure on sustainability

S• Promote health management, diversity
inclusion, and equity initiatives for theadvancement of diverse human resources.
• Expanding the activities of Microsoft BaseKanazawa with the aim of expanding local
businesses and revitalizing the economy
through development of DX human resources.

• Establishment of various committees andimprovement of systems to improve corporate
governance• The Board of Directors is composed tostrengthen corporate governance and ensure
diversity (Four independent outside directors
and three women out of nine directors).

• Aim to improve the response and quality of
the revised Corporate Governance Code.
• Continue to work to strengthen corporate
governance and ensure diversity in thecomposition of the Board of Directors.

Sharing Value
GovernanceG© 2024 System Support Inc.

• Set CO2 emission targets and implement
further reduction measures• Expand a disclosure system in line with the
TCFD, and respond to CDP and improvescore• Development of IT engineers• Realization of diverse human resources
employment and work styles• Contribution to local communities andlocal administration

Society

Management
philosophy

Efforts to strengthen

24Our Company Topics for FY2024/6 (July 2023 to June 2024)
Date

Subject

July 6, 2023

System Support announced the new price plan of Introduction Support Service for ChatGPT for Businesses using Azure OpenAI
Service
Support for corporate use of ChatGPT in a secure environment with 0 initial cost and 50,000 yen per month

July 20, 2023

Our employees received Microsoft Top Partner Engineer Award.

July 25, 2023

System Support started offering Smart Rabbit, a food inventory forecast system for restaurants.
Joint development with Bay Cruise to improve efficiency in ordering and reduce food loss and opportunity loss Ideal for restaurants
with a wide variety of menus without the need to disassemble recipes.

August 29, 2023

System Support introduced SHIFTEE, a cloud-based shift management system, to Suntory Publicity Service Limited.
Integral management of shift creation and attendance record by customizing and linking with Shugyo Yakusha, an attendance andwork management system

September 7, 2023

Certified as Select, a service partner of Snowflake
More than 20 staff who gained Snowflake SnowPro Core certification will offer consistent services from sales to building and data
migration support.

September 21, 2023

Received Oracle Certification Award 2023.

September 22, 2023

System Support introduced Dbvisit Standby, a solution for disaster recovery (disaster preparedness) for Oracle database, to Right
Co.,Ltd.

September 26, 2023

System Support started to train XR (Cross Reality) engineers using Kanazawa Institute of Technology’s KIT Cooperation Education
Program (academic–industry partnership education).
Aiming to revitalize local businesses, create opportunities for talented engineers, and promote their retention in local communities

October 24, 2023

System Support held a Halloween event “Futuristic Halloween 2023 -Another world when you wear glasses-” at Microsoft BaseKanazawa where visitors could experience cutting-edge MR (mixed reality) technology

October 25, 2023

“System Support presents FY2023 National Selected Elementary School Programming Ishikawa Prefecture Tournament” held

© 2024 System Support Inc.

25

Our Company Topics for FY2024/6 (July 2023 to June 2024)
Date

Subject

October 26, 2023

System Support launched a support service for introducing “Amazon Bedrock” that allows you to easily create generative AI
applications.
In addition to providing consistent support from consulting, development, and operation and maintenance for basic model utilization,
System Support also provides an AI assistant chat system compatible with Amazon Bedrock.

November 14, 2023

System Support released Azure OpenAI Service reference architecture “Smart Generative Chat,” certified as an Advanced Partner inthe reference architecture endorsement program.

November 16, 2023

System Support supported a transition of BIGLOBE’s core system to AWS, transiting from on-premises Oracle Database to Amazon
RDS for Oracle.

November 21, 2023

System Support introduced “Smart Generative Chat,” an in-house AI assistant chat system using Azure OpenAI Service, to Confex
Group company, supporting business utilization of interactive generative AI in a secure environment

December 5, 2023

System Support held a free Christmas Week event at Microsoft Base Kanazawa, offering a Christmas experience with MR (Mixed
Reality) and a social media usage seminar by a Hokuriku’s leading influencer.

December 20, 2023

Signed official partner agreement with professional soccer club “Zweigen Kanazawa”

December 22, 2023

Our employee was awarded “Google Cloud Partner Top Engineer 2024”

December 22, 2023

Our employee was awarded “Google Cloud Partner All-stars 2023”

January 5, 2024

B2B Mobile Order Reception System “MOS” marked 10th anniversary.

January 9, 2024

Launched "MOS Invoice," a cloud-based electronic invoice solution compliant with the invoice system and the Act concerning
Preservation of Electronic Books.

January 9, 2024

Launched "MOS Payment," a B2B online payment solution for accounts receivable and payable.

January 25, 2024

System Support earned the Application Development Specialization in the Google Cloud Partner Advantage program.
Proved our proficiency and successful track record in application development.

© 2024 System Support Inc.

26

Our Company Topics for FY2024/6 (July 2023 to June 2024)
Date

Subject

January 30, 2024

System Support launched two services utilizing Google Cloud AI technology: "Generative AI Deployment Support Service for Google
Cloud" and "Discovery AI Deployment Support Service for Google Cloud for Retailers."

January 31, 2024

Support for damage from the 2024 Noto Peninsula Earthquake

February 15, 2024

System Support Introduced Oracle Database SE RAC to JFE Galvanizing & Coating Co., Ltd.'s "unstoppable" production management
systems.
Achieved availability for systems operating 24 hours a day, 365 days a year.

February 16, 2024

System Support was recognized as Gold Partner by Celonis Japan, a pioneer and one of world’s largest process mining companies.

February 20, 2024

System Support attained Premier Partner badges for Google Cloud in the Sell & Service Engagement Models.

February 28, 2024

T4C signed a sales partner agreement with Techtouch.
ー Strong support for corporate DX promotion through advanced system utilization ー

March 11, 2024

System Support was honored with Creator Workflow Partner of the Year at the ServiceNow 2024 Partner Awards.

March 22, 2024

Presentation of the results of the training of XR engineers through the KIT Co-op Education Program, an industry–university cooperativeeducation program at Kanazawa Institute of Technology.
Presentation of MR content for Microsoft HoloLens 2 that students researched and developed during the program.

March 22, 2024

Signed a distributorship agreement with Snowflake.

March 26, 2024

System Support won first place in Snowflake's Partner Recognition Awards "The 1st SnowPro Award."

March 26, 2024

Organized “System Support presents ‘Toshiie-to-Matsu’ Kanazawa Castle Relay Marathon 2024 ー Haru-no-Jin ー”© 2024 System Support Inc.

27

Our Company Topics for FY2024/6 (July 2023 to June 2024)
Date

Subject

April 9, 2024

Sponsored the Gargantua Music Festival 2024.

April 19, 2024

Transitioned to a holding company structure through a company split and established a subsidiary (successor preparatory company).

April 19, 2024

STS Innovation, a consolidated subsidiary of the Company, acquired all businesses of MultiNet International Inc.

April 24, 2024

System Support supported San-in Godo Bank by introducing Microsoft Azure for its common cloud infrastructure, and Azure Data
Factory and Azure Synapse Analytics for its data analytics infrastructure.
Achieved significant improvement in business agility and data-driven management.

April 25, 2024

Smart Generative Chat, an in-house AI assistant chat system developed by System Support, responded to Anthropic Claude 3 ofAmazon Bedrock.

May 20, 2024

System Support started provision of Automation 360 Managed Service.
Automation 360, an RPA platform of Automation Anywhere is readily available for users who work together with RPA and a generative AI
to enable automated business processes.

May 27, 2024

Accredited as an “Ishikawa Health Management Declaration Company” certified by Ishikawa Prefecture and a “Healthy Company”
certified by Ishikawa Federation of the National Federation of Health Insurance Societies.

June 20, 2024

Acquired the shares of Communication Planning Corporation and made it a subsidiary.

© 2024 System Support Inc.

28

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© 2024 System Support Inc.

29

Thank you