November 13, 2020
Company Name
RepresentativeInquiries
TelNIPPON SYSTEMWARE CO., LTD.
President and Representative Director
Shoji Tada
(Securities Code:9739）
Executive Corporate Officer and Memberof the Board
Yuzuru Suka+81-3-3770-1111(Correction / Numerical data correction) Revision of the “Summary of Consolidated Financial
Results for the Second Quarter of Fiscal Year Ending March 2021 [Japanese GAAP]” Due toSubsequent Event Requiring Adjustments
We are discussing with our customers to settle damages incurred in connection with the systemdevelopment services provided by us for such customers. We have determined to record areasonably estimated amount of damages as an extraordinary loss as follows and accordingly
revise the “Summary of Consolidated Financial Results for the Second Quarter of Fiscal YearEnding March 2021 [Japanese GAAP]” published on October 26, 2020. Revisions are underlined.
1. Details of Subsequent Event
We recorded the current estimated amount of 198 million yen as provision for loss oncompensation for damage and included in the extraordinary loss. The amount of damages is thecurrent estimated amount and may change in the future.
2. Summary of Financial Results to Be Revised“Summary of Consolidated Financial Results for the Second Quarter of Fiscal Year Ending
March 2021 [Japanese GAAP]” published on October 26, 2020
3. Earnings Forecast and Dividend Forecast
Our earnings forecast and dividend forecast for the fiscal year ending March 2021 remain thesame as those announced on July 27, 2020.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Six Months Ended September 30, 2020
[Japanese GAAP]
October 26, 2020
(Correction）November 13, 2020
Company name: NIPPON SYSTEMWARE CO., LTD.
Stock exchange listing: Tokyo
Code number: 9739
URL: https://www.nsw.co.jp/
Representative: Shoji Tada
President (Representative Director)
Contact: Yuzuru Suka
Executive Corporate Officer and Member of the Board
Phone: 03-3770-1111
Scheduled date of filing quarterly securities report: November 13, 2020
Scheduled date of commencing dividend payments: December 02, 2020
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2020 (April 01, 2020 to September 30, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%Six months ended
September 30, 2020
17,743(4.0)
1,745(6.9)
1,761
(6.8)
1,117(14.7)
September 30, 201918,485
10.3
1,873
32.9
1,888
31.4
1,309
37.3
(Note) Comprehensive income:Six months ended September 30, 2020:¥1,121 million [(14.4) %]Six months ended September 30, 2019:¥
1,309 million [37.4%]
Basic earnings
per share
Six months ended
September 30, 2020
September 30, 2019

Diluted earnings pershare
Yen

Yen

75.03
87.90

-(2) Consolidated Financial Position
Total assets
Million yen
As ofSeptember 30, 2020
30,726
March 31, 2020
30,516(Reference) Equity: As of September 30, 2020:
As of March 31, 2020:

Net assets

Capital adequacy ratio

Million yen¥¥

22,27021,372
22,270 million
21,372 million

%

72.5
70.0

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2020

-

15.00

-

15.00

30.00

Fiscal year ending March 31, 2021

-

20.00
-

20.00

40.00

Fiscal year ending March 31, 2021
(Forecast)Year-end

Total(Note) Revision to the forecast for dividends announced most recently:
No(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2021 :Commemorative dividend- yenSpecial dividend- yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021(April 01, 2020 to March 31, 2021)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share%

Million yen%

Million yen%

Yen

Full year
38,500
0.6
3,500
(9.3)
(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

3,540
No

(9.2)

2,400(10.1)

161.08* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2020(changes in specified subsidiaries resulting in changes in scope of consolidation):
No
New(Company name:
Exclusion:(Company name:(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2020:
14,900,000 shares
March 31, 2020:
14,900,000 shares2) Total number of treasury shares at the end of the period:
September 30, 2020:
437 shares
March 31, 2020:
395 shares
3) Average number of shares during the period:
Six months ended September 30, 2020:
Six months ended September 30, 2019:14,899,566 shares
14,899,618 shares※This Consolidated Financial Report is not subject to audit procedures by certified public accountants or auditing firm.
※The consolidated financial results forecasts are based on information currently available to The Company and on certain assumption
deemed to be reasonable. As a result of various facter that may arise in the future,actual results may deffer from the Company'sforecast.

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of March 31,2020

As of September 30,2020Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
MerchandiseWork in process
Supplies
Other
Total current assets

11,488
8,844

11,683
7,810

94

88

226

481

837
2

1,473
2

321

417

21,815

21,958

2,048

2,052

328
3,861

312
3,861

3

3

6,241

6,228

Non-current assets
Property, plant and equipment
Buildings and structures, net
Tools, furniture and fixtures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Software8167

Other3634

Total intangible assets117

101

Investment securities
Deferred tax assets

31
1,234

38
1,178

Other
Allowance for doubtful accounts

1,089
(12)

1,233
(12)

Total investments and other assets

2,341

2,437

Investments and other assets

Total non-current assets
Total assets

―1―

8,701

8,768

30,51630,726

(Million yen)
As of March 31,2020

As of September 30,2020

Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable

2,593
730

2,642
505

Accrued consumption taxes
Provision for bonuses

548
1,023

248
796

221-

827

1,671

198
1,630Total current liabilities
Non-current liabilities
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other

6,789

6,056

2

2

2,295
57

2,34551

Total non-current liabilities
Total liabilities

2,354
9,144

2,399
8,455

Share capital
Capital surplus

5,500
86

5,500
86

Retained earnings
Treasury shares

15,786(0)

16,680(0)21,372

22,266

38

Provision for loss on construction contracts
Provision for product warranties
Provision for loss on damage
OtherNet assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets―2―

97(12)
0(11)421,372
30,51622,27030,726

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Million yen)
For the six months
ended September 30,2019

For the six months
ended September 30,2020

Net sales
Cost of sales

18,485
14,902

17,743
14,385Gross profit

3,583

3,357

Selling, general and administrative expenses
Remuneration for directors (and other officers)

68

73

Corporate officer' compensations
Salaries and bonuses

79734

89730

Retirement benefit expenses
Welfare expenses

35140

32
138

Communication and transportation expenses
Outsourcing expenses

90
104

50
99

Rent expenses
Other

60
396

59
338

1,710

1,612

1,873

1,745

Dividend income of insurance
Other613

911

Total non-operating income

20

20

31

10

20

Total selling, general and administrative expenses
Operating profit
Non-operating income

Non-operating expenses
Foreign exchange losses
Loss on cancellation of insurance policies
Other
Total non-operating expenses

54

1,888

1,761

Gain on sales of non-current assets

1-

Total extraordinary income

1-

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

000198
198

Profit before income taxes
Income taxes - current

1,890
530

1,563
392

Income taxes - deferred
Total income taxes

50580

52445

1,309
1,309

1,117
1,117Provision for loss on damage
Total extraordinary losses

ProfitProfit attributable to owners of parent―3―

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended September 30,2019ProfitOther comprehensive income

For the six months
ended September 30,2020

1,309

1,117

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1(2)

4(2)

Remeasurements of defined benefit plans, net of tax

00

Total other comprehensive income

03

1,309

1,121

1,309

1,121Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent―4―

Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended September 30,2019
Cash flows from operating activities
Profit before income taxes

For the six months
ended September 30,2020

1,890

1,563

Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability

235(236)238(227)81(213)

(19)
47

27
50

Increase (decrease) in provision for loss on damage
Decrease (increase) in trade receivables

871

198
1,039

Decrease (increase) in inventories
Increase (decrease) in trade payables(545)
242(890)
59

Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes

(87)
(138)

30(300)

Other, net
Subtotal

(476)
1,863

(174)
1,402

Income taxes paid
Other, net(813)
0(607)
0

1,050

795

Purchase of property, plant and equipment
Purchase of intangible assets

(54)
(4)

(150)
(10)Payments of leasehold and guarantee deposits
Purchase of insurance funds

(28)
(13)

(155)
(11)

Proceeds from maturity of insurance funds
Other, net

3(67)

10(57)

(164)

(374)

(260)
(3)

(222)
(0)

(264)

(223)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

(2)

(2)

619
8,402

195
11,488Cash and cash equivalents at end of period

9,021

11,683―5―