Updated: May 12, 2023

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)May 12, 2023
Listed company name:

Systemsoft Corporation

Listing

Tokyo Stock Exchange

Code number

7527

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: May 12, 2023
Scheduled start date to commence dividend payments: －Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings: Yes

1.

(Yen amounts are rounded down to millions, unless otherwise noted.)
Consolidated Financial Results for the six months ended March 31, 2023
(From October 1, 2022 to March 31, 2023)(1) Consolidated financial results (cumulative)(% is Year-on-year rate of increase / decrease)
Net Sales

Operating Income

Quarterly net income
attributable to owners ofparentOrdinary income

Six months ended

million yen%

million yen%

million yen%

million yen%

March 31, 2023

1,629

-26.5

-57

―

-109

―

-127

―

2,217

-9.4

-26

―

-23

―

-54

―

March 31, 2022
Note: Comprehensive income

For the six months ended, March 31, 2023
For the six months ended, March 31, 2022
Quarterly
Net earnings per share¥ -93 million yen (―%)
¥ -73 million yen (―%)

Quarterly
Diluted net earnings per
share

Six months ended

yen

Yen

March 31, 2023

-1.51

―

March 31, 2022

-0.64

―

(2)Consolidated financial condition
Total Assets
Six months ended

March 31, 2023

Net Assets

Shareholders’ equity ratio

million yen

million yen

%

6,665

5,602

83.5

5,865

80.7

Fiscal year ended

September 30, 2022

7,224

Reference: Equity capital As of March 31, 2023
As of September 30, 2022

¥5,568 million¥5,833 million

1/10Updated: May 12, 2023

2. Cash dividends
Annual dividends
First quarter-end Second quarter-end
Fiscal year ended

September 30, 2022

Third quarter-end

Fiscal year-end

Total

yen

yen

yen

yen

yen

―

0.00

―

2.00

2.00

―

0.00
―

―

―

Fiscal year ending

September 30, 2023

Fiscal year ending

September 30, 2023
(Forecast)

Note: Revision to the forecast of cash dividends most recently announced: None
The year-end dividend for the fiscal year ending September 30, 2023 is undecided at this time.

3. Forecast of consolidated financial results for the fiscal year ending September 30, 2023 (October 1, 2022 – September
30, 2023)

Net sales

Full-year

Operating income

million yen%

million yen

%

3,800

-19.2

310

-19.0

Note: Revisions to the most recently announced earnings forecasts:(% increase or decrease from the previous year)
Net income
Ordinary income
attributable toEarnings per shareowners of parent
million yen%

million yen%

yen

220 -41.7

110

-45.3

1.31

Yes

* Notes(1) Changes in significant subsidiaries during the quarterly consolidated financial statements period: None
(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: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Retrospective restatement: None
(Note) For details, please refer to "1. Quarterly consolidated financial statements and key notes (4) Notes on quarterly consolidated
financial statements (Change in accounting policy)" on page 9 of the attached materials.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

84,834,140 shares

As of September 30, 2022

84,834,140 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

32,067 shares

As of September 30, 2022

31,987 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2023

84,802,102 shares

Six months ended March 31, 2022

84,614,347 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.
2/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

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 income statements······· 6(3) Consolidated statements of cash flows ·································································································· 8(4) Notes on quarterly consolidated financial statements················································································ 9(Notes on going concern assumptions) ................................................................................................................. 9(Notes on significant changes in the amount of shareholders' equity) .................................................................... 9(Change in accounting policy) ............................................................................................................................... 9(Information by segment) ...................................................................................................................................... 9
2. Other10

3/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

1. Quarterly consolidated financial statements and key notes(1) Quarterly consolidated balance sheet(Unit: thousand yen)Previous consolidated fiscal year
(September 30, 2022)

Six months ended March 31, 2023
(March 31, 2023)

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable and contract
assetsWork in progress
Raw materials and stored products

1,949,892

1,465,170

1,547,341

1,441,014

35,04971,849

39

30

Other

492,404

464,631

Allowance for doubtful accounts-30,084-30,084

Total current assets

3,994,644

3,412,612

Fixed assets
Tangible fixed assets
Building and structures (net)32,97633,316

Tools, furnitures and fixtures (net)

14,15913,665

Total tangible fixed assets

47,13546,982

Goodwill

2,069,524

2,002,281

Other intangible fixed assets

341,718

310,212

Total intangible assets

2,411,242

2,312,493

Intangible fixed assets

Investments and other assets

771,782

893,718

Total fixed assets

3,230,160

3,253,194

7,224,804

6,665,806

181,058

172,840

Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable
Income taxes payable

84,827

28,830Other509,963

392,908

Total current liabilities

775,849594,578

Corporate bond

280,000

230,000

Fixed liabilities
Long-term debt

170,000

110,000

Asset retirement obligations

10,176

10,192

Other

123,114

118,961

Total fixed liabilities
Total liabilities

4/10

583,290

469,153

1,359,140

1,063,732

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

(Unit: thousand yen)Previous consolidated fiscal year
(September 30, 2022)

Current six months ended March 31,
2023(March 31, 2023)

EquityShareholders' equity
Capital1,706,476

1,706,476

Capital surplus
Retained earnings

3,712,343
522,094

3,542,739
394,124

Treasury stock-8,078-8,086

5,932,836

5,635,253

1,675

4,852

-101,032-71,287-99,357-66,434

24,51924,519

7,665

8,735

Total net assets

5,865,664

5,602,074

Total liabilities and net assets

7,224,804

6,665,806

Total shareholders' equity
Accumulated other comprehensive income(loss)
Valuation difference on available-for-salesecurities
Exchange conversion adjustment accountTotal accumulated other comprehensive
income (loss)
Stock acquisition rights
Non-controlling interests

5/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

(2) Quarterly consolidated statements of income and quarterly consolidated comprehensive income
statements
Quarterly Consolidated statement of income(Six months ended March 31, 2023)(Unit: Thousand yen)Previous six months ended
March 31, 2022
(October 1, 2021 to March 31, 2022)

Current six months ended
March 31, 2023
(October 1, 2022 to March 31, 2023)

2,217,842
1,771,063

1,629,984
1,273,146

Gross profit

446,779

356,837

Selling, general and administrative expenses

473,674

413,852

Operating income (loss)-26,894-57,014

274
275

5
299

Foreign exchange gains
Subsidy income

28,271
3,203

―
6,036

Consulting revenue
Other

1,250
496

―
953

Total non-operating income

33,7707,294Interest expenses
Payment Fees

7,938
12,0296,522
14,781

Foreign exchange loss
Other―
10,55931,117
7,398

Total non-operating expenses

30,527

59,820Ordinary income or ordinary loss

-23,651-109,540

3,414

399

3,414

399

Loss on retirement of fixed assets
Loss on sales of investment securities

―
3,063

68
3,226

Loss on valuation of investment securities
Loss on store closing

2,068
13,037――

Total extraordinary loss

18,168

3,295-38,405-112,436

15,961

14,463

Sales
Cost of sales

Non-operating income
Interest income
Dividend received

Non-operating expenses

Extraordinary gains
Gain on sales of investment securities
Total extraordinary gains
Extraordinary loss

Quarterly net Income before taxes or net loss
before adjustments to taxes, etc
Corporate tax, municipal tax and business taxes
Total corporate taxes, etc.

15,961

14,463

Quarterly net income or quarterly net loss

-54,366-126,899

-157

1,070

-54,209-127,970

Quarterly net loss attributable to non-controllingshareholders
Net income attributable to owners of parent or
net loss attributable to owners of parent

6/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

Consolidated quarterly statements of comprehensive income(Cumulative period for consolidated second quarter, six months ended March 31, 2023)(Unit: Thousand yen)Previous six months ended March
31, 2022(October 1, 2021 to March 31, 2022)

Current six months ended March 31,2023(October 1, 2022 to March 31, 2023)-54,366-126,899

7,802

3,177

-27,149

29,745

Quarterly net income or loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Exchange conversion adjustment accountTotal other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders

7/10-19,346

32,922-73,713-93,977-73,555-95,047

-157

1,070

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

(3) Consolidated statements of cash flows
Previous six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)

Cash flows from operating activities
Quarterly net income before tax adjustments(Unit: Thousand yen)
Current six months ended
March 31, 2023
(October 1, 2022 toMarch 31, 2023)-38,405-112,436

Depreciation and amortization
Amortization of goodwill

75,243
63,34946,777
67,242

Interest and dividend income
Interest expense

-550
7,938

-304
6,522

でLoss on retirement of fixed assets
Loss on sales of securities (- is gain)

―
-351

68
2,827

Net unrealized losses on securities (- is gain)
Loss on store closures
Change in trade receivables and contract assets(- is increase)
Increase (Decrease) in inventories (-is increase)
Increase (Decrease) in notes and accounts payabletrade (- is decrease)
Increase (Decrease) in accrued liabilities(- is decrease)
Increase (decrease) in accrued consumption taxes(- is decrease)
Foreign exchange losses (- is gain)

2,068
13,037―-469,633

106,327-63,126-36,790

11,635-8,21813,052-6,711-61,439-43,435-28,271

31,117

Other-88,781-34,509

Subtotal-564,234

18,477

10,429-6,9042,334-6,567

Income taxes paid or refunded (- is payment)-87,849-67,107

Cash flows from operating activities-648,558-52,862

Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment-5,731―-5,097
76

Payments for acquisition of intangible assets
Payments for purchase of investment securities-13,454-5,000-9,532-157,500

Proceeds from sales of investment securities
Proceeds from collection of loans receivable

62,534384

19,627180

Cash flows from investing activities

38,732-152,246

Repayment of short-term loans payable
Repayment of long-term loans payable-100,000――-60,000

Payments for purchase of treasury stock
Payments for redemption of bonds-6-50,000-8-50,000-168,208-169,604

73,977―-244,238-279,612Interest and dividends received
Interest payments

Cash flows from investing activities

Cash flows from financing activities

Dividends paid
Proceeds from issuance of shares upon exercise ofstock acquisition rights
Cash flows from financing activities
Net increase in cash and cash equivalents(- is decrease)
Cash and cash equivalents at beginning of year

-854,064-484,721

2,081,361

1,949,892

Cash and cash equivalents at end of period

1,227,297

1,465,170

8/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

(4) 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 accounting policy)(Application of accounting standard for revenue recognition)
The new accounting policy prescribed by the "Guidance on Accounting Standard for Measurement of Fair Value"(ASBJ Guidance No. 31, June 17, 2021) is applied from the beginning of the first quarter of the current fiscal year,
and the new accounting policy prescribed by the Guidance is applied prospectively in accordance with thetransitional treatment prescribed in Section 27-2 of the Guidance on Accounting Standard for Measurement of Fair
Value. There is no impact on the quarterly consolidated financial statements.

(Information by segment)
Segment Information
I. Previous six months ended, from October 1, 2021 to March 31, 2022, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
Open
Innovation
Business

Technology
business

Sales

Subtotal

Other(Note)

Total

Sales to external customers

1,666,798

551,0442,217,842―

2,217,842

Sales or transfers inside or
between segments

112

18,07018,182―

18,182

1,666,911

569,1142,236,025―

2,236,025

85,436-21,839

63,596-242

63,354

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

63,596

Profit in "Other" segment-242

Company expenses (Note)-90,249

Operating income in quarterly consolidated statements
of income-26,894

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

9/10

Consolidated financial results for the six months ended March 31,2023(Under Japanese GAAP)
Updated: May 12, 2023

II. Current six months ended, from October 1, 2022 to March 31, 2023, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
Technology
business

Open Innovation
Business

Other(Note)

Subtotal

Total

Sales
Sales to external customers

1,190,678

439,305

1,629,984―

1,629,984

Sales or transfers inside or
between segments

―

318

318

―

318

1,190,678

439,623

1,630,302―

1,630,302

55,472-50,620

4,852

-165

4,686

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)
Sales

Amount1,630,302

Total of reportable segments―

Sales in "Other" segment
Elimination of inter-segment transactions-318
1,629,984

Sales in quarterly consolidated statements of income(Unit: Thousand yen)
ProfitAmountTotal of reportable segments

4,852

Profit in "Other" segment-165

Company expenses (Note)-61,701

Operating income on quarterly consolidated statement ofincome-57,014

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

2. Other
Nothing applicable.

10/10