Updated: May 10, 2024

Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)May 10, 2024
Listed company name
Systemsoft Corporation
Listing
Tokyo Stock Exchange
Code number
7527
URL
https://www.systemsoft.co.jp/
Representative
President and Representative Director:
Haruki Yoshio
Contact person
General Manager, Administration Division: Yasunori Tomita, (TEL) +81 (0)92-732-1515
Scheduled date to file quarterly securities report:
May 10, 2024
Scheduled start date to commence dividend payments:
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings:
None(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated Financial Results for the six months ended March 31, 2024(From October 1, 2023 to March 31, 2024)(1) Consolidated financial results (cumulative)(% is Year-on-year rate of increase / decrease)

Net Sales
Six months ended

Operating Income

million yen

March 31, 2024
March 31, 2023

%

1,242
1,629

-23.8
-26.5

Note: Comprehensive income

Six months ended

million yen

Ordinary Income
%

-86
-57

-

million yen

-82
-109

Quarterly Net Income
attributable to owners ofparent%million yen
%

-

-100
-127

-

For the six months ended, March 31, 2024 ¥ -95 million yen (-%)
For the six months ended, March 31, 2023 ¥ -93 million yen (-%)

Quarterly
Quarterly
Diluted net earnings per
Net earnings per share
share
yen

March 31, 2024
March 31, 2023

yen

-1.19
-1.51

-

(2) Consolidated financial condition
Total Assets
Six months ended

March 31, 2024

Fiscal year ended

September 30, 2023

Net Assets

million yen

million yen

5,680

86.3

6,742

5,782

85.3

6,548

Reference: Equity capital

2.

Shareholders’Equity Ratio

As of March 31, 2024
As of September 30, 2023%

¥5,653 million¥5,748 million

Cash dividends
Annual dividends
First quarter-end

Fiscal year ended

September 30, 2023

Fiscal year ending

September 30, 2024

Second quarter-end Third quarter-end

yen

yen

-

0.00

-

0.00

Fiscal year-end

yen

-

yen

0.00

Total
yen

0.00

Fiscal year ending

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: May 10, 2024

3.

Forecast of consolidated financial results for the fiscal year ending September 30, 2024

(October 1, 2023 - September 30, 2024)
Net Sales
million yen%(% increase or decrease from the previous year)
Operating Income

Ordinary Income

million yen

million yen%%

Full-year
3,000 -11.5
130 -16.2
110 -18.6
Note: Revisions to the most recently announced earnings forecasts: None

Profit attributable toowners of parent
million yen
%

65

-30.6

Earnings
Per Share
yen

0.76

* Notes(1)

Changes in significant subsidiaries during the quarterly consolidated financial statements period: None

(Note) S2i inc. is excluded from the scope of consolidation following its liquidation on November 30, 2023, although
it is not a specified subsidiary of the Company.
(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)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024
As of September 30, 2023

(ii)

84,834,140 shares

Number of treasury shares at the end of the period
As of March 31, 2024
As of September 30, 2023

(iii)

84,834,140 shares

32,067 shares
32,067 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2024
84,802,073 shares
Six months ended March 31, 2023

84,802,102 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 six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 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 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 scope of consolidation or application of equity method) .............................................................9(Information by Segment) ...............................................................................................................................9
2. Other ...............................................................................................................................................................10―3―

Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

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

Six months ended
March 31, 2024

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

1,762,904

2,100,225

1,288,811

866,554

23,362
27

67,021
172

565,467-30,084

491,484-5,3973,610,489

3,520,059

Tools, equipment and fixtures (net)32,68011,677

27,238
10,539Total tangible fixed assets

44,35837,778Goodwill
Other

1,935,038
269,006

1,867,795
232,079

Total intangible assets

2,204,045

2,099,874

Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Building and structures (net)

Intangible fixed assets

Investments and other assets

883,390

891,060

3,131,793

3,028,712

6,742,282

6,548,772

Notes and accounts payable
Income taxes payable

142,624
18,729170,695
15,902

Other

438,099454,148

Total current liabilities

599,454

640,746

Corporate bondLong-term debt

180,000
60,000130,000-

Asset retirement obligations
Other

10,207110,162

2,525
95,304

Total fixed liabilities

360,370

227,830

959,824

868,577

Total fixed assets
Total assets
LIABILITIESCurrent liabilities

Fixed liabilities

Total liabilities―4―

Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

(Unit: thousand yen)
Fiscal Year ended
September 30, 2023
EquityShareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income (loss)
Valuation difference on available-for-salesecurities
Foreign exchange adjustments accountTotal accumulated
income (loss)
Stock acquisition rights

othercomprehensive

Non-controlling interests
Total net assets
Total liabilities and net assets―5―

Six months ended
March 31, 2024

1,706,476
3,542,739

1,706,476
3,542,739

615,690-8,086

515,067-8,086

5,856,819

5,756,197

5,684

15,480-113,622-118,511-107,937-103,031

23,94823,948

9,627

3,080

5,782,458

5,680,194

6,742,282

6,548,772

Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements
Quarterly Consolidated Statement of Income (Six months ended March 31, 2024)(Unit: thousand yen)Six months ended
March 31, 2024

Six months ended
March 31, 2023

(October 1,2022 to March 31,2023)(October 1,2023 to March 31,2024)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend received
Foreign exchange gains
Subsidy income
Recoveries of written-off claims
Other
Total non-operating income
Non-operating expenses
Interest expenses
Payment fees
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income or ordinary loss
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
Quarterly net Income before taxes or net loss before
adjustments to taxes, etc.
Corporate tax, municipal tax and business taxes
Total corporate taxes, etc.
Quarterly net income or quarterly net loss
Quarterly net loss attributable to non-controllingshareholders
Quarterly net income or net loss attributable toowners of parent―6―

1,629,984
1,273,146

1,242,403
946,555

356,837

295,848

413,852

382,694-57,014-86,846

5

6

299
-

8,437
4,612

6,036
-

2,060
5,319

953

2,595

7,294

23,031

6,522
14,781

3,663
8,939

31,117
7,398

6,068

59,82018,671-109,540-82,487

399

598

399

598

68

4,465

3,226
-

1,805

-

6,214

3,295

12,484-112,436-94,373

14,4635,610

14,463

5,610-126,899-99,983

1,070

638

-127,970-100,622

Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

Quarterly Consolidated Statement of Income (Six months ended March 31, 2024)
Six months ended
March 31, 2023

(Unit: thousand yen)Six months ended
March 31, 2024

(October 1,2022 to March 31,2023)(October 1,2023 to March 31,2024)

Quarterly net income or loss
Other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Exchange conversion adjustment account-126,899-99,983

3,177

9,795

29,745-4,88932,922

4,906

Quarterly comprehensive income-93,977-95,077(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders-95,047-95,716

1,070

638

Total other comprehensive income―7―Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

(3) Consolidated statements of cash flows(Unit: thousand yen)Six months ended
March 31, 2024

Six months ended
March 31, 2023

(October 1,2022 to March 31,2023)(October 1,2023 to March 31,2024)

Cash flows from operating activities
Quarterly net income before tax adjustments(loss)
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts (- is decrease)
Interest and dividend income-112,436-94,373

46,777
67,24245,446
67,242--24,686-304-8,443

Interest expense
Loss on retirement of fixed assets

6,522
68

3,663
4,465

Loss on sales of securities (- is gain)
Net unrealized losses on securities (- is gain)

2,827
-

-598
1,805

-

6,214

106,327

422,257-36,790-43,803-8,21828,071-6,711

20,964-43,435

5,231

31,117-34,509-4,61233,579Subtotal

18,477462,423

Interest and dividends received

2,334

27,838Interest payments
Income taxes paid or refunded (- is payment)-6,567-67,107-3,708
11,444

Cash flows from operating activities-52,862

497,998-5,097-1,76476-

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
payable-trade (- is decrease)
Increase (decrease) in accrued liabilities(- is decrease)
Increase (decrease) in accrued consumption
taxes (- is decrease)
Foreign exchange losses (- is gain)
Other

Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant andequipment
Payments for acquisition of intangible assets-9,532-3,916

Payments for purchase of investment securities
Proceeds from sales of investment securities-157,500
19,627-5,000-

Proceeds from collection of loans receivable
Proceeds from collection of guarantee deposits

180
-

180
17,000

Payments for liquidation of subsidiaries
Cash flows from investing activities--7,177-152,246-677-60,000-8-60,000--50,000-169,604-50,000---50,000-279,612-160,000

Cash flows from financing activities
Repayment of long-term loans payable
Payments for purchase of treasury stock
Payments for redemption of bonds
Dividends paid
Payments for acquisition of subsidiaries' stock
without change in scope of consolidation
Cash flows from financing activities
Net increase in cash and cash equivalents(- is decrease)
Cash and cash equivalents at beginning of year

-484,721

337,320

1,949,892

1,762,904

Cash and cash equivalents at end of period

1,465,170

2,100,225―8―

Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

(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 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 consolidation from the Three Months ended December 31, 2023.

(Information by Segment)
I. Six Months ended, from October 1, 2022 to March 31, 2023, consolidated period
1. Information on net sales, profit or loss by reportable segment(Unit: thousand yen)

Reporting Segment
Open
Innovation
Business

Technology
business

Other*

Total

Subtotal

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

AmountTotal of reportable segments

1,630,302

Profit in "Other" segment-

Elimination of intersegment transactions-318

Sales in quarterly consolidated statements of income

1,629,984(Unit: thousand yen)

ProfitAmountTotal of reportable segments

4,852

Profit in "Other" segment-165

Company expenses (Note)-61,701

Operating income in quarterly consolidated statements ofincome-57,014

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

―9―Systemsoft Corporation (7527) Consolidated financial results for the six months ended March 31,2024(Under Japanese GAAP)
Updated: May 10, 2024

II. Six Months ended, from October 1, 2023 to March 31, 2024, consolidated period
1. Information on net sales, profit or loss by reportable segment(Unit: thousand yen)

Reporting Segment
Other*

Open
Innovation
Business

Technology
business

Total

Subtotal

Sales
Sales to externalcustomers
Sales or transfers
inside or between
segments

875,044367,359

1,242,403-

1,242,403

-

-

-

-

-

Subtotal

875,044367,359

1,242,403-

1,242,403

Segment profit or Loss

17,516-23,653-6,136--6,136

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

AmountTotal of reportable segments

1,242,403

Profit in "Other" segment-

Elimination of intersegment transactions-

Sales in quarterly consolidated statements of income

1,242,403(Unit: thousand yen)

ProfitAmountTotal of reportable segments-6,136

Profit in "Other" segment-

Company expenses (Note)-80,709

Operating income in quarterly consolidated statements of-86,846
incomeNote: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

2. Other
Nothing applicable.

―10―