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

Summary of Consolidated Financial Results
for the Year Ended June 30, 2022
(Based on Japanese GAAP)
August 10, 2022
Company name:

System Support Inc.

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

URL

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

Representative Director
General Manager of Management

Ryoji Koshimizu
Naoyuki Morita

Headquarters
Scheduled date of ordinary general meeting of shareholders:TEL

076-265-5151

September 27, 2022

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

September 28, 2022
September 28, 2022

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

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)(1) Consolidated operating results
Net salesYear ended June 30, 2022
Year ended June 30, 2021

Operating profit

Millions of yen
16,19814,431%
12.2
7.9

Millions of yen
1,196
931

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
%
%%
75.70
24.5
16.4
7.4
64.97
25.0
15.1
6.5

Yen
75.91
65.45

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

%
28.5
23.3

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
1,190
24.7
785
16.5
954
34.1
674
49.9

(2) Consolidated financial position
Total assets
As of June 30, 2022
As of June 30, 2021

Net assets

Equity ratio

Millions of yen
7,815
6,662

Millions of yen
3,421
2,993

Cash flows fromoperating activities
Millions of yen
1,007
709

Cash flows frominvesting activities
Millions of yen
(274)
(276)

Net assets per share%
43.8
44.9

Yen
330.33289.13(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen
(240)
2,702
(165)
2,199

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

Year ended June 30, 2021
Year ended June 30, 2022
Year ending June 30, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

0.00
12.00

––

21.00
13.00

21.00
25.00

217258

32.1
32.9

7.9
8.1

–15.00–15.00

30.00

131.6

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

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

8,765

12.5

722

22.9

721

21.7

487

24.2

47.11

18,093

11.7

1,456

21.7

1,452

22.0

982

25.1

94.87

4. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

10,380,000 shares As of June 30, 2021

10,370,000 shares

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

22,123 shares As of June 30, 2021

18,123 shares

Average number of shares during the period
Year ended June 30, 2022

10,350,384 shares Year ended June 30, 2021

210,305,538 shares

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

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,697,455
2,205,577

3,254,220–––

64,8002,149,041

Contract assets
Merchandise and finished goods–
34,899486,419
41,248Work in process
Supplies

123,068
4,041

26,609
2,807

Other

254,284

278,733

5,319,326

6,303,881

Property, plant and equipment
Buildings and structures

260,396

271,942

Accumulated depreciation(132,816)(149,820)

Buildings and structures, net

127,579

122,122

Notes receivable - trade
Accounts receivable - trade

Total current assets
Non-current assets

VehiclesAccumulated depreciation
Vehicles, net

5,936

4,301(5,028)(3,901)

908

400

Tools, furniture and fixtures

299,791

303,828

Accumulated depreciation(169,071)(209,087)

Tools, furniture and fixtures, net

130,719

94,740Land

31,40021,632

Leased assets
Accumulated depreciation

83,496(50,237)

78,832(30,532)

33,25948,299Leased assets, net
Construction in progress–

20,000323,867

307,195

Software
Goodwill

194,967
3,734

169,980
199,800

Leased assets
Other

12,089
2,253

7,948
2,253

Total intangible assets

213,044

379,983

Investments and other assets
Leasehold deposits

Total property, plant and equipment
Intangible assets

316,567

320,654

Deferred tax assets
Other326,627
162,831

389,183
114,406

Total investments and other assets

806,027824,244

1,342,940

1,511,422

6,662,266

7,815,303

Total non-current assets
Total assets3

(Thousands of yen)
As of June 30, 2021

As of June 30, 2022

Liabilities
Current liabilities
Accounts payable - trade544,966

520,771

Short-term borrowings
Current portion of long-term borrowings

695,000
87,239825,000
78,209Lease liabilities
Accounts payable - other

19,826244,803

20,063
337,768

Accrued expenses
Income taxes payable

793,812
209,716

980,689
332,826

8,716
4,144

9,543
103

5,752
509,677

7,585
573,850

Total current liabilities

3,123,656

3,686,410

Non-current liabilities
Long-term borrowings

170,707245,800

Lease liabilities
Deferred tax liabilities

30,200–40,601
345

Provision for retirement benefits for directors (and otherofficers)

207,704

233,137

Retirement benefit liability
Other134,003
2,941

182,533
4,974

Total non-current liabilities

545,558

707,3933,669,214

4,393,803

Shareholders' equity
Share capital

723,122723,323

Capital surplus
Retained earnings

549,639
1,745,671

549,837
2,203,584

Treasury shares(18,655)(18,655)

2,999,778

3,458,091

Foreign currency translation adjustment
Remeasurements of defined benefit plans(2,326)(4,399)6,255(42,846)

Total accumulated other comprehensive income(6,725)(36,591)

2,993,052

3,421,500

6,662,266

7,815,303

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

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2021

Fiscal year ended
June 30, 2022

Net sales

14,431,360

16,198,337

Cost of sales

10,688,889

11,861,570

Gross profit

3,742,470

4,336,767

Selling, general and administrative expenses

2,811,4273,140,176

931,043

1,196,591

Operating profit
Non-operating income
Interest income

7550

Commission income
Subsidy income

854
35,227

3,461
10,924

Dividend income of insurance
Gain on forgiveness of debts

1,305
8,738

1,480–

Other

1,223

3,073

Total non-operating income

47,42518,991

15,2308,178

14,522
9,340

83

1,157

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets

23,491

25,021

954,976

1,190,561–116

Impairment losses

24,447

14,054

Total extraordinary losses

24,447

14,170

Profit before income taxes

930,529

1,176,390

Income taxes - current

295,004

442,245

Income taxes - deferred(38,971)(51,542)

Total income taxes

256,032

390,702

Profit674,496785,688

Profit attributable to owners of parent

674,496785,6885

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022
674,496785,6882,309(3,066)

8,581(38,446)(757)(29,865)

673,739755,822673,739755,822

Comprehensive income attributable toComprehensive income attributable to owners of parent

6

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

717,085

Capital surplus

Retained earnings

543,676

1,171,734

Total shareholders'equity

Treasury shares(18,655)

Cumulative effects ofchanges in accounting
policies
Restated balance

2,413,841–
717,085543,676

6,037

5,962

1,171,734(18,655)

2,413,841

Changes during period
Issuance of new shares exercise of shareacquisition rights

12,000

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

Profit attributable toowners of parent

674,496

674,496

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

6,037

5,962

573,936–585,936

723,122549,639

1,745,671(18,655)

2,999,778

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income(4,635)(1,332)(5,968)Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

2,407,872–(4,635)(1,332)(5,968)2,407,872

Changes during period
Issuance of new shares exercise of shareacquisition rights

12,000

Dividends of surplus(100,559)

Profit attributable toowners of parent

674,496

Net changes in items otherthan shareholders' equity

2,309(3,066)

(757)

(757)

Total changes during period

2,309(3,066)(757)

585,179

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

7

Fiscal year ended June 30, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

723,122

Retained earnings

549,639

1,745,671

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equityTreasury shares(18,655)

13,818723,122549,639201

198

1,759,489

2,999,778

13,818(18,655)

3,013,596

Changes during period
Issuance of new shares exercise of shareacquisition rights

400

Dividends of surplus(341,592)(341,592)

Profit attributable toowners of parent

785,688785,688

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

201

198

444,095–

444,495

723,323549,837

2,203,584(18,655)

3,458,091

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income(2,326)(4,399)(6,725)

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

2,993,052

13,818(2,326)(4,399)(6,725)3,006,870

Changes during period
Issuance of new shares exercise of shareacquisition rights

400

Dividends of surplus(341,592)

Profit attributable toowners of parent

785,688

Net changes in items otherthan shareholders' equity

8,581(38,446)(29,865)(29,865)

Total changes during period

8,581(38,446)(29,865)414,629

Balance at end of period

6,255(42,846)(36,591)

3,421,500

8

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022
930,529

1,176,390

Depreciation
Amortization of goodwill

174,652
4,074

177,403
8,607

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

50,482(88)

45,836–

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

18,86325,432

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

2,452
1,351

(7,045)
826

Increase (decrease) in provision for loss on orders received
Increase (decrease) in reserves for quality assurance(1,281)(3,680)(4,041)
1,832Interest and dividend income
Interest expenses(83)
15,230(79)
14,522

Impairment losses
Loss on retirement of non-current assets

24,447–

14,054116

Decrease (increase) in trade receivables
Decrease (increase) in inventories(371,800)
38,687(476,489)
91,343

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

178,235(34,332)(29,708)
178,034

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

39,402(46,713)77,604(3,931)Other, net(24,756)

69,598Subtotal

995,673

1,360,310

Interest and dividends received

83

79

Interest paid
Income taxes paid

(15,245)(271,286)(14,478)(338,443)

Net cash provided by (used in) operating activities

709,225

1,007,468(85,800)(88,800)

Proceeds from withdrawal of time deposits
Purchase of insurance funds

48,500(11,974)

54,700(12,696)

Purchase of property, plant and equipment
Purchase of intangible assets(114,314)(106,747)(33,357)(60,528)

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits(9,078)4,674(9,413)494

Payments for asset retirement obligations
Payments for investments in capital(1,800)(10)–––(125,102)(276,550)(274,704)

Cash flows from investing activities
Payments into time deposits

Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Net cash provided by (used in) investing activities

9(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022
15,000130,000

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

90,800(159,946)

100,000(109,028)

Repayments of lease liabilities
Dividends paid

(23,378)(100,188)(21,672)(340,322)

Proceeds from exercise of employee share options

12,000400

Net cash provided by (used in) financing activities(165,713)(240,623)

Effect of exchange rate change on cash and cash equivalents

3,518

10,021

Net increase (decrease) in cash and cash equivalents

270,480

502,161

Cash and cash equivalents at beginning of period

1,929,392

2,199,873

Cash and cash equivalents at end of period

2,199,873

2,702,034

10