Updated: February 2,2024

Consolidated Financial Results for the Three Months Ended December 31,2023(Under Japanese GAAP)
January 31, 2024
Listed company name:

Systemsoft CorporationListing

Tokyo Stock Exchange

Code number7527

URL:

https://www.systemsoft.co.jp/

Representative

President and Representative Director:

Contact person

General Manager, Administration Division: Yasunori Tomita, (TEL) +81 (0)92-732-1515

Haruki Yoshio

Scheduled date to file quarterly securities report: February 9, 2024
Scheduled start date to commence dividend payments: Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings: None

1.

(Yen amounts are rounded down to millions, unless otherwise noted.)
Consolidated Financial Results for the Three Months ended December 31, 2023
(from October 1, 2023 to December 31, 2023)(1). Consolidated financial results (cumulative)
Net Sales(% is Year-on-year rate of increase / decrease)
Operating Income

Three Months ended

million yen

Note: Comprehensive income

For the Three Months ended, December 31, 2023
For the Three Months ended, December 31, 2022

December 31, 2023
December 31, 2022%

623
833

-25.3
-22.8

Yen

December 31, 2023
December 31, 2022%-49-34-

million yen

-72
-77

Quarterly Net Income
attributable to owners ofparent%
million yen%

--87
-83

-- 85 million yen (-%)
- 64 million yen (-%)

Quarterly
Diluted Net Earnings
Per Share

Quarterly
Net Earnings Per ShareThree Months ended

million yen

Ordinary Income

Yen

-1.03
-0.99

-

(2). Consolidated financial condition
Total Assets
Three Months ended

December 31, 2023

Fiscal year ended

September 30, 2023

Net Assets

million yen

million yen

6,565
6,742

Reference: Equity capital As of December 31, 2023
As of September 30, 2023

2.

Shareholders’Equity Ratio%

5,689

86.3

5,782

85.3

5,662 million yen
5,748 million yen

Cash dividends
Annual dividends
First Quarter-end

Fiscal year ended

September 30, 2023

Second Quarter-end Third Quarter-end

Yen-

Fiscal Year-end

Total

Yen

Yen-

0.00

0.00

----

0.00

Yen

Yen

Fiscal year ended

September 30, 2024-

Fiscal year ended

September 30, 2024 (Forecast)

Note: Revision to the forecast of cash dividends most recently announced: None
The year-end dividend for the fiscal year ending September 30, 2024 is undecided at this time.

1Updated: February 2,2024

3.

Forecast of consolidated financial results for the fiscal year ending September 30, 2024
(October 1, 2023 – September 30, 2024)
Net Sales

Full-year

million yen

3,000(% increase or decrease from the previous year)

Operating Income%-11.5

million yen

130

Ordinary Income%-16.2

Note: Revisions to the most recently announced earnings forecasts:

million yen

110%

-18.6

Profit attributable toowners of parent
million yen%

65Earnings
Per Shareyen

-30.6

0.76

None

* Notes(1) Changes in significant subsidiaries during the quarterly consolidated financial statements period: None
(Note) Although not a specified subsidiary of the Company, S2i inc. was excluded from the scope of consolidation
following its liquidation on November 30, 2023.
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and re-display of amendments(i)

Changes in accounting policies due to revisions to accounting standards: None(ii)Changes in accounting policies due to other reasons: None(iii)

Changes in accounting estimates: None(iv) Retrospective restatement: None
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

84,834,140 shares

As of September 30, 2023

84,834,140 shares

Number of treasury shares at the end of the period
As of December 31, 2023

32,067 shares

As of September 30, 2023

32,067 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three Months ended December 31, 2023

84,802,073 shares

Three Months ended December 31, 2022

84,802,130 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
*Proper use of earnings forecasts, and other special matters
Forward-looking statements, such as each business outlook, described in this document are based on information currently
obtained by the Company and certain assumptions that it deems reasonable, and are not to the effect that the Company
promises to achieve such results. Actual results may differ materially due to various factors.

2Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

Table of Contents
1. Quarterly Consolidated Financial Statements and Key Notes .........................................................................4(1) Quarterly Consolidated Balance Sheet ........................................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive IncomeStatements ........................................................................................................................................................6(3) Notes on quarterly consolidated financial statements .................................................................................8(Notes on going concern assumptions) .........................................................................................................8(Notes on significant changes in the amount of shareholders' equity) ..........................................................8(Change in scope of consolidation or application of equity method) .............................................................8(Information by Segment) ...............................................................................................................................82. Other .................................................................................................................................................................93

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

1. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)
Fiscal Year ended
September 30, 2023

Three Months ended
December 31, 2023

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable and contract
assetsWork in progress

1,762,904

2,102,632

1,288,811

862,124

23,36235,123

27
565,467183
568,334-30,084-30,084

3,610,489

3,538,313

Tangible fixed assets
Property, plant and equipment (net)32,68027,314Tools, equipments and fixtures (net)

11,677

11,317

Total tangible fixed assets

44,35838,632

Goodwill
Other

1,935,038
269,006

1,901,417
246,596

Total intangible assets

2,204,045

2,148,013

Raw materials and stored products
Other
Allowance for doubtful accounts
Total current assets
Fixed assets

Intangible fixed assets

Investments and other assets

883,390840,070

3,131,793

3,026,716

6,742,282

6,565,030

142,624

151,154

Income taxes payable
Other

18,729438,099

1,314
428,471

Total current liabilities

599,454580,940

180,000

160,000

Long-term debtAsset retirement obligations

60,000
10,20730,000
2,517

Other

110,162

102,172

Total fixed liabilities

360,370

294,690959,824875,631

Total fixed assets
Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable

Fixed liabilities
Corporate bondTotal liabilities

4

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024
(Unit: thousand yen)
Fiscal Year ended
September 30, 2023

Three Months ended
December 31, 2023

EquityShareholders' equity
Capital stockCapital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income (loss)
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total accumulated
income (loss)
Stock acquisition rights

othercomprehensive

Non-controlling interests
Total net assets
Total liabilities and net assets

5

1,706,476

1,706,476

3,542,739
615,690

3,542,739
528,552-8,086-8,086

5,856,819

5,769,681

5,684-14,076-113,622-92,774-107,937-106,850

23,94823,9489,6272,619

5,782,458

5,689,399

6,742,282

6,565,030

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements

Quarterly Consolidated Statement of Income(Three Months ended December 31, 2023)(Unit: thousand yen)Three Months ended
December 31, 2022

Three Months ended
December 31, 2023

(October 1,2022 to December 31,2022) (October 1,2023 to December 31,2023)

SalesCost of sales

833,839
652,183

623,058
475,331

Gross profit

181,655

147,726

Selling, general and administrative expenses

216,544

196,907

Operating income (loss)
Non-operating income
Interest income-34,889-49,18100

Dividend received
Foreign exchange gains

299
4,827

8,437
2,060

Other
Total non-operating income

141

876

5,267

11,374

3,142
6,812

1,877
5,109

Foreign exchange loss
Other
Total non-operating expenses

33,3194,399

22,201
5,316

47,67434,505

Ordinary income or ordinary loss

-77,296-72,312

399

598

399

598-4,465

3,226-

1,087

Non-operating expenses
Interest expenses
Payment fees

Extraordinary gains
Gain on sales of investment securities
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on store closing
Total extraordinary loss
Net Income before taxes or net loss before
adjustments to taxes, etc.
Corporate tax, municipal tax and business taxes
Total income taxes
Quarterly net income or quarterly net loss
Quarterly net loss attributable to non-controllingshareholders
Net income attributable to owners of parent or net
loss attributable to owners of parent

6-

6,211

3,226

11,763-80,124-83,477

2,833

3,482

2,833

3,482

-82,957-86,959

575

178-83,533-87,137

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

Quarterly Consolidated Statement of Income(Three Months ended December 31, 2023)(Unit: thousand yen)Three Months ended
December 31, 2022

Three Months endedDecember 31, 2023

(October 1,2022 to December 31,2022) (October 1,2023 to December 31,2023)

Quarterly net income or loss
Other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Exchange conversion adjustment accountTotal other comprehensive income-82,957-86,959-13,171-19,761

31,962

20,847

18,7901,086

Quarterly comprehensive income-64,166-85,873(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders-64,742-86,051

575

178

7

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumptions)
Nothing applicable.

(Notes on significant changes in the amount of shareholders' equity)
Nothing applicable.

(Change in scope of consolidation or application of equity method)
As of November 30, 2023, S2i Inc. was liquidated, and as a result,the company was excluded from the scope of the Three Months ended December 31, 2023.

(Information by Segment)
I. Three Months ended, from October 1, 2022 to December 31, 2022, consolidated period
1.

Information on net sales, profit or loss by reportable segment(Unit: thousand yen)
Reporting Segment
Other*

Total

Technology
business

Open
Innovation
Business

608,518

225,321833,839-

833,839

-

159

159

-

159

608,518

225,480

833,998-

833,998

27,479-25,256

2,223

-

2,223

Subtotal

Sales
Sales to external customers
Sales or transfers inside or between segments
Subtotal
Segment profit or Loss

Note: *"Other" refers to business segments not included as reporting segments.

2.

Difference between the total reported segment amount and the amount recorded in the quarterly consolidated
income statement, and the main elements of the difference (related to the adjustment)(Unit: thousand yen)

ProfitAmountTotal of reportable segments

2,223

Profit in "Other" segment-Company expenses (Note)-37,113

Operating income in quarterly consolidated statements ofincome-34,889

Note: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

8

Systemsoft Corporation (7527) Consolidated Financial Results for the Three Months ended December 31,2023(Under Japanese GAAP)
Updated: February 2, 2024

II. Three Months ended, from October 1, 2023 to December 31, 2023, consolidated period
1.

Information on net sales, profit or loss by reportable segment(Unit: thousand yen)
Reporting Segment
Other*

Total

Technology
business

Open
Innovation
Business

438,711

184,347

623,058-

623,058-----

438,711

184,347

623,058-

623,058

6,009-13,502-7,493--7,493

Subtotal

Sales
Sales to external customers
Sales or transfers inside or between segments
SubtotalSegment profit or Loss

Note: *"Other" refers to business segments not included as reporting segments.

2.

Difference between the total reported segment amount and the amount recorded in the quarterly consolidated
income statement, and the main elements of the difference (related to the adjustment)(Unit: thousand yen)

ProfitAmountTotal of reportable segments-7,493

Profit in "Other" segment-Company expenses (Note)-41,687

Operating income in quarterly consolidated statementsof income-49,181Note: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

2. Other
Nothing applicable.

9