Supplementary Material for Q2 FY09/2024
43rd Fiscal Year

Systemsoft Corporation
TYO: 7527

May 10, 2024

CONTENTS•

FY09/2024 Second Quarter Financial Results Summary•FY09/2024 Second Quarter Financial Results
Reporting by Segment•

FY09/2024 Earnings Forecast

Copyright©Systemsoft Corporation

1

FY09/2024 Second Quarter Financial Results

Financial Results Summary

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Summary of consolidated financial results for Q2 FY09/2024
Q2 FY09/2023

Q2 FY09/2024

YoY

Amount%Amount%

Net sales

1,629

100%

1,242

100%

76.2%

Gross profit

356

21.9%

29523.8%

82.9%

SG&A expenses

413

25.4%

382

30.8%

92.5%

Operating income-57－-86－－-127－-100－－(Millions of yen)

Net income

attributable toshareholders of theparent company
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Summary of Consolidated Financial Results for Q2 2024
(Millions of yen)

Net sales

Operating income

Net income

1,242 million yen-86 million yen-100 million yen

YoY 76.2%

YoY -％

YoY -％Net sales

Operating income

Net income

3,390
155
2,474

93392

1,629
1,242833

Q1-34-49-57623

Q2

Q3

FY09/2023

Q4Q1Q2

FY09/2024

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Q1

Q2

Q3

FY09/2023

Q4

Q1-86-83

Q2

Q1

FY09/2024

-127

Q2

Q3

FY09/2023

Q4-87-100

Q1

Q2

FY09/2024
4

Quarterly Trends (4-year comparison)(Millions of yen)

Change in the structure of some projects in the technology business,
Sales and income down YoY due to closure of open innovation business upon review

Net sales

3,556

4,920

4,704

2,448

2,217

1,148
Q1

1,080
Q2

Q3

Q4

Q1

Operating income

328

354833
Q2

Q3

Q4

Q1

FY09/2022

FY09/2021

265

3,3903,314377

Projects
concentrated in Q4

1,629623
Q2

Q1

Q2

Q3

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Q4-44-26

Q1

Q2

Q3

Q3

Q4382

Reorganization ina part of projects inthe real estate field

Q1

1,242

Q2

FY09/2024

FY09/2023

155

Full-year
plan is onschedule

39

10
Large-scale systemmodification project
Operating income increased
due to new orders

2,474

Q4-34-57

Q1

Q2-49

Q3

Q4

Q1-86
Q2

5

Balance Sheet(Millions of yen)

Q4
FY09/2023

Q4
FY09/2024

Increase/Decrease

Current assets

3,610

3,520-90

Fixed assets

3,1313,028-103

Current liabilities

599

640

41

Fixed liabilities

360

227-133

5,782

5,680-102

Capital stock

1,706

1,706

0

Capital surplus andothers

4,150

4,049

-101

6,742

6,548-194

Net assets

Total assets

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FY09/2024 Second Quarter Financial Results

Financial Results by Segment

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7

About the Segment

Two pillars of business:
technology business and open innovation businessTechnologyOpen innovation

 fabbit (DX linkage) consulting

Net sales

1,242

million yen*Q2 FY09/2024

 SaaS specialized inreal estate System Developmentand Solutions

Focus on creating ecosystems throughinter-company collaboration, regional
development, and knowledge sharing

Responsible for developing the SS Cloud
series for real estate operators and systems
for major companies and the public sector.

Composition

Composition

29.6%

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70.4%

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About system development and businesstechnology

Provide comprehensive services from development to maintenance and operation
to meet needs of users in wide range of industries
Requirement
Definition

One-stop service x consulting
High quality product development to achieve
higher customer satisfaction is enabled byadding strength of consulting service, which isderived from years of experience, know-how,and knowledge in general process of systemdevelopment,

Maintenance/Operation

Test

DesignBusiness
consultant

Develop-mentCase studies

Banks

Property insurance

Retail & Sales

Manufacturer

Educational institutions

RMSERPEC Site Building System

Business Support Systems

Academic Support Systems

Digitize large volume ofregulations and manuals
used internallyContribute to improve
operational efficiency andcost reduction.

Core business systemcentered on host system.
Building advancedsystems that requirestability and accuracy.

A package that allows for
project and productadditions, inventory
management and even
effectivenessmeasurement throughaccess analysis.

A system that can beused to manage sales
activity and its
performance, and todevelop more effective
sales and management
strategies.

A portal system thatallows students to accessschool's homepage, as
well as notifications ofcredit acquisition status
and information on school
closures and make-up
classes.

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9

About SS Cloud Series

technology

Promoting "LehTech," a combination of real estate and technology
Real estate-specific SaaS streamlines rental management and brokerage operations

Application Cloud

Automated service from application to screening
outside business hours

contract

Reduce mailing costs by digitizing contract-related
documents

E-Sign Cloud

Electronic signatures and seals on contract
documents

Moving indeparture

Automatic Customer Tracking Cloud
AI automatically sends customers information onproperties that match their criteria

Selkey Cloud

One-time key issuance, centralized PC management,
locks open with a smartphone

Travelling Cloud

Enables automatic generation of patrol routes
and reports. Staff behavior management isalso possible.

Indoor Check Cloud

Service that allows tenants to check and register
their rooms by themselves

Contract Cloudhousehunting
preview

Repair Check Cloud

Automatic report generation for construction
companies. Status check before and after construction
is possible.

Vacancy List Cloud

Real-time registration and inquiry of room availability

Home Viewing Cloud

Automatically accepts reservations for previews
24 hours a day, 365 days a year. No need toarrange a key with smart locks.

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SS Cloud Series Usage (Cumulative)

technology

Achieved one of the largest* installations in Japan throughaggressive sales activities
Q2 FY09/2023
Q2 FY09/2024+1.14x70,562+1.17x61,78544,53952,109

累計利用企業数
Cumulative
number of companies

Cumulative numberof locations used
累計利用拠点The "Total number of locations used" is simply the sum of the number of locations used by the mediator and management company for each cloud. (For management companies,head offices, branch offices, sales offices, and stores are counted among those that applied.)
Cumulative number of companies using the service is simply the sum of the number of companies using the service of the brokerage and management company for each cloud.
*According to our own research.

Copyright©Systemsoft Corporation11

SS Payment Series Introduction Status​

technology

In cooperation with SS Cloud Series​
developing services to further improve operational efficiency​
Money transfer service​

Account transfer service​

Credit card payment
service​

Total number of cases

Total number of cases

Total settlement amount​

454,015cases​

129,751

cases​

about​

16bn

102,596+27,245

19.8 bn JPY

426,770+27,155

9.9bn

51,666

approx.

+3.8 bn yen

318,174

FY09/2022

FY09/2023

FY09/2024Q2

No installation fee, no monthly fee, ​no need to open an account​
Significant reduction in remittance​ transfer fee​

FY09/2022

FY09/2024Q2

No need to confirm errors in signing or stamping​Dramatically reduced account transfer fees​*This product is a service to introduce customers to the management company.​

Copyright©Systemsoft Corporation

FY09/2023

FY09/2022

FY09/2023

FY09/2024Q2

Real estate leasing related transaction including
security deposit, key money, etc.​
Settlement services for utilizing credit card topay lump-sum deposit.​​12

SS Payment Series Introduction Statustechnology

Develop other low-cost/profit-enhancing services*As of March 2024

Lifeline Intermediary
Service:Secure Phone 24:

Sales of simple
digestion tools:

cumulative total companies
implemented 413

cumulative total companies
implemented 466

cumulative sales: 1,212

Floor Plan Preparation
Agency Services:

Rent Guarantee
Service:

BunChin PAY:

cumulative total companies
178

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cumulative total companies
implemented 13

cumulative total companies
implemented 8913

About fabbit Business

open innovation

Supporting startups and small and medium enterprises in their second businessincubation. Developing facilities and operations to facilitate business matching.

Cumulative number of fabbit members
approx. 20,000
21 domestic and overseas locations,mainly in major cities*As of March 2024

Office Types
Rental Office

CoworkingSpace

Virtual OfficeRental space formeeting & event

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FY09/2024

Earnings Forecast

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Forecasts for the fiscal year ending September 30, 2024​
Reduction in development scale due to some changes in contract forms insystem development business​
SaaS business timing and scope of monetization considered carefully​
FY09/2023​

FY09/2024

Net sales

3,390

3,000

Operating income​

155130Ordinary income​

1351109365(Millions of yen)​Net income​Attributable to Shareholdersof the parent company

Copyright©Systemsoft CorporationActual​

Forecast16

FY09/2024 Key policy
In FY09/2024, promote internal development and reinforcement as aperiod of reinforcement for mid- to long-term growth.
Investment in
human resources

Reinforcement ofbusiness structure Systems Development
1: Expansion of projects in the development field whereour strengths lies.
2: Improvement of contract certainty by making contracts
more flexible
3: Improvement of profit margins through operational
efficiency and cost control

× Expansion of recruitment
Promoting and securing of human resources to meetrobust demand for system development
1: Expansion of the recruiting base with a focus on young
engineers
2: Strengthen the organization of the recruitment team(already implemented)
3: Updating the recruitment website (completed) SaaS for Real Estate Agents

 Enhanced skill development

Careful consideration for realization of fee-based service

Expansion of training system including reskilling of hired
personnel, and enhancement of continuing employee educationand training system, etc.

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Investment in human resources*Target: Business units in the open innovation area are not included.
*The percentage results for engineers in 2022 and 2023 are calculated based on the departments they belonged to (availability) as of the end of the fiscal year.

New Graduate
14

Recruitment Trends
Mid-career hiring

13

12

Percentage of engineers enrolled
80%

12

10

98

880.0%

76.3%

77.5%

79.0%
78.0%

877.0%

74.3%

76.0%

64220

FY09/2022(Actual)

FY09/2023(Actual)

81.0%

75.0%

Recruitment
target for FY30 to 40
FY09/2024(Q2Actual)

74.0%
73.0%
72.0%
FY09/2025(Estimate)

71.0%

Initiatives for FY09/2024
prior period

Q1

Q2

Strengthening of recruitment front office(already implemented)
Updating recruitment website(already implemented)

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Q3

Q4

Reinforcement of new employee
on-boarding system (already implemented)

Review of training system

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This document was created by the Company for the purpose of understanding the current state of Systemsoft Corporation (hereinafter referred to as the "Company"). In
addition, the plans and forecasts described in this document are determined and predicted by the Company based on the information at the time of creation. Plans andprospects may change significantly due to changes in the business environment in the future. In that event, we are not obligated to update or amend the contents of thisannouncement. Based on the above, investors are requested to invest at their own risk. ​Copyright©Systemsoft Corporation19