Updated: August 2, 2024

Consolidated financial results for the nine months ended June 30, 2024
(Under Japanese GAAP)

August 2, 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 start date to commence dividend payments:
Preparation of supplementary materials on financial results:
Yes
Holding of financial results briefings:
None(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated Financial Results for the nine months ended June 30, 2024(From October 1, 2023 to June 30, 2024)(1). Consolidated financial results (cumulative)
Net sales
Nine months ended

June 30, 2024
June 30, 2023

Operating Income

million yen

%

1,897
-23.3
2,474
-25.4
Note: Comprehensive income

Nine months ended(% is Year-on-year rate of increase / decrease)million yen

Ordinary Income%

million yen

Quarterly Net Income
attributable to owners ofparent%%million yen

-124
-92
-128
39
278.4
9
-74.9
2
For the nine months ended, June 30, 2024 ¥ -143 million yen (-%)
For the nine months ended, June 30, 2023 ¥ -12 million yen (-%)

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

June 30, 2024
June 30, 2023

yen

-1.51
0.03

-

(2). Consolidated financial condition
Total Assets
Nine months ended

June 30, 2024

Fiscal year ended

Net Assets

million yen

6,272

million yen

5,632

September 30, 2023
6,742
5,782
Reference: Equity capital
As of June 30, 2024
As of September 30, 2023

2.

Shareholders’Equity Ratio

%

89.3
85.3
¥5,601 million¥5,748 million

Cash dividends
Annual dividends

Fiscal year ended

September 30, 2023

Fiscal year ended

September 30, 2024

Fiscal year ended

First quarter-end

Second quarter-end

Third quarter-end

yen

-

yen

0.00

yen

Fiscal year-end

-

0.00

-

-

yen

0.00

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―

Total
yen

0.00

-

Updated: August 2, 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%

million yen

Ordinary Income%

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
million yen

0.76* Notes(1)

Significant changes in the scope of consolidation during the period under review:

None

New: - (company name), Excluded: - (company name)(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)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

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 June 30, 2024

32,069 shares

As of September 30, 2023

32,067 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended, June 30, 2024

84,802,073 shares

Nine months ended, June 30, 2023

84,802,092 shares* Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing
firm:

None

* Proper use of earnings forecasts, and other special matters
Forward-looking statements, such as segment outlook, described in this document are based on information currently
available to the Company and various assumptions, and do not imply that the Company promised to achieve such results.
Actual results may differ materially due to various factors.

―2―

Updated: August 2, 2024

Table of Contents
1.

Overview of Business Results ......................................................................... 4(1) Summary of Business Results for the nine months ended June 30, 2024 ...................................... 4(2) Overview of Financial Position for the nine months ended June 30, 2024 ...................................... 5

2.

Quarterly Consolidated Financial Statements and Key Notes .............................................. 6(1) Quarterly Consolidated Balance Sheet.................................................................... 6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income Statements .... 8(3) Notes on quarterly consolidated financial statements ...................................................... 10(Notes to Information by Segment) ....................................................................... 10(Notes in the event of significant changes in shareholders' equity) ............................................ 12(Notes on premise of a going concern).................................................................... 12(Change in scope of consolidation or application of equity method) ........................................... 12(Notes to Statements of Cash Flows) ..................................................................... 12(Significant subsequent events) .......................................................................... 13―3―

Updated: August 2, 2024

1.

Overview of Business Results(1) Summary of Business Results for the nine months ended June 30, 2024
During the nine months ended June 30, 2024 (October 1, 2023 to June 30, 2024), Japan's economy showed signs ofa moderate recovery due to progress toward normalization of economic activities by easing restrictions, plus the positiveeffects of inbound tourism consumption. On the other hand, the outlook remains uncertain due to global monetary
tightening, depreciation of the yen, and rising consumer prices, in addition to the impact of repeated consumer pricehikes and exchange rate fluctuations triggered by prolonged high resource and energy costs.
In the information service industry where our group operates, the demand for investment in IT and DX-related
technology continues to grow with the need to improve corporate productivity and competitiveness in all industries.
There are also further demands for technical support and services underpinning the "new-normal" era with drasticchange in social framework. In addition, the chronic shortage of human resources has become more serious, with majordifficulties such as securing and training on-site engineers and field workers. The labor market environment remains
challenging due to soaring costs related to these issues.
In this environment, we are focusing to proactively hire and train skilled engineers, provide SaaS products, and improvethe value of our services in the overall system development field.
Furthermore, we aim to create new value and increase corporate value by adding consulting services in the DX area,
RPA solutions, open innovation offerings, alliance services, and FA (financial advisory).
As a result, net sales decreased 577 million yen (23.3%) year on year to 1,897 million yen, operating loss amounted
to 124 million yen (vs. operating income of 39 million yen year on year), and the year on year ordinary loss amounted
to 92 million yen (vs. ordinary income of 9 million yen).
Net loss attributable to owners of the parent amounted to 128 million yen (compared with net income attributable toowners of the parent of 2 million yen in the same period of the previous year).
Segment results are as follows(i) Technology business
The company has long provided system development and solution services to our clients in the real estate, informationand telecommunications, life and non-life insurance, and education fields, with our strength in system development
based on web technology. We have also focused on providing RPA solution services and SS Cloud Series.
In the nine months ended June 30, 2024, existing projects progressed steady, however, sales and profits decreased
due to the downsizing of certain projects in the real estate field as a result of the structure change, and the delay inorders from the initial schedule due to the limited number of staff.
As a result, sales in the technology business decreased 489 million yen (26.7%) year on year to 1,344 million yen, andsegment income decreased 163 million yen (85.8%) year on year to 27 million yen.
(ii) Open Innovation BusinessWe provide consulting services for start-up companies for their business launch and operate a shared-office space tooffer a place for innovation, using technologies and ideas from wide range of industries /fields.
In the nine months ended June 30, 2024, sales decreased due to the closure of offices under the review of businesslocations, however, the Company is generally progressing as planned. We will continue our cost reduction efforts.
As a result, sales in the open innovation business decreased 88 million yen (13.8%) year on year to 552 million yen,with a segment loss of 27 million yen (segment loss of 56 million yen year on year).
(iii) Other Business
The Company is engaged in the business of providing IoT-related products and services. S2i Inc., a consolidated
subsidiary of the Company, was liquidated on November 30, 2023, and was excluded from the scope of consolidation.

―4―

Updated: August 2, 2024

(2) Overview of Financial Position for the nine months ended June 30, 2024
(i) Assets, Liabilities and Net Assets
Current assets decreased 319 million yen to 3,291 million yen at the nine months ended June 30, 2024 from the fiscal
year ending September 30, 2023 on consolidated basis. This was mainly due to a 455 million yen decrease in notes,
accounts receivable-trade and contract assets, and a 51 million yen increase in work in process.
Fixed assets decreased 150 million yen from the fiscal year ending September 30, 2023 to 2,981 million yen. This was
mainly due to a decrease of 30 million yen in goodwill with the value of intellectual property in consideration and adecrease of 100 million yen in goodwill.
As a result, total assets decreased 470 million yen from the fiscal year ending September 30, 2023 to 6,272 million
yen.
Current liabilities decreased 165 million yen to 433 million yen. This was mainly due to a decrease of 109 million yen
in accounts payable-other and a decrease of 8 million yen in income taxes payable.
Noncurrent liabilities decreased 154 million yen to 206 million yen. This was mainly due to a decrease of 70 million
yen in corporate debenture and a decrease of 60 million yen in long-term debts.
Hence, total liabilities decreased 319 million yen from the fiscal year ending September 30, 2023 to 640 million yen on
consolidated basis.
Total net assets decreased 150 million yen from the fiscal year ending September 30, 2023 to 5,632 million yen. Thiswas mainly due to the net loss attributable to the parent company shareholders for the period under review.

―5―Updated: August 2, 2024

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)
Fiscal Year ended
September 30, 2023
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable and contract
assetsWork in progress
Raw materials and assorted inventory
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Building and structures (net)
Tools, equipment and fixtures (net)Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total fixed assets
Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable
Income taxes payable
Other
Total current liabilities
Fixed liabilities
Corporate debentureLong-term debt
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities―6―

Nine months ended
June 30, 2024

1,762,904

2,052,139

1,288,811

832,90923,362
27
565,467-30,084

75,180230
336,126-5,3973,610,489

3,291,188

32,68011,67730,603
13,43344,35844,037

1,935,038
269,006

1,834,174
213,388

2,204,045

2,047,562

883,390

889,479

3,131,793

2,981,080

6,742,282

6,272,269

142,624
18,729438,099

152,720
10,270270,960

599,454433,950

180,000
60,000
10,207110,162

110,000
2,533
93,651

360,370

206,185

959,824

640,135

Updated: August 2, 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 otherincome (loss)
Stock acquisition rights
Non-controlling interests

comprehensive

Total net assets
Total liabilities and net assets―7―

Nine months ended
June 30, 2024

1,706,476
3,542,739
615,690-8,086

1,706,476
3,542,739
487,527-8,086

5,856,819

5,728,656

5,684

17,353-113,622-144,679-107,937-127,325

23,948
9,627

23,9486,853

5,782,458

5,632,133

6,742,282

6,272,269

Updated: August 2, 2024

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements
Quarterly Consolidated Statement of Income (Nine months ended June 30, 2024)
Nine months ended
June 30, 2023

(Unit: thousand yen)
Nine months ended
June 30, 2024

(October 1,2022 to June 30,2023) (October 1,2023 to June 30,2024)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends
Foreign exchange gains
Subsidy income
Recoveries of written-off claims
Other
Total non-operating income
Non-operating expenses
Interest expenses
Payment fees
Other
Total non-operating expenses

2,474,241
1,814,097

1,897,007
1,441,421

660,143455,586

620,491

579,903

39,652-124,316

5
624
587
7,760
966

6
8,788
31,986
3,921
5,319
5,274

9,944

55,296

9,948
15,177
14,488

5,092
10,8907,253

39,61423,236

9,981-92,257

Gain on sales of investment securities
Gain on reversal of stock acquisition rights

19,709570

598-

Total extraordinary gains

20,280

598

680
4,129
-

4,659
1,087
6,199

4,809

11,94625,452-103,604

21,021

20,146

Ordinary income or ordinary loss
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―8―

21,021

20,146

4,430-123,750

1,530

4,411

2,899

-128,162

Updated: August 2, 2024

Quarterly Consolidated Statement of Income (Nine months ended June 30, 2024)(Unit: thousand yen)
Nine months ended
June 30, 2024

Nine months ended
June 30, 2023

(October 1,2022 to June 30,2023) (October 1,2023 to June 30,2024)

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 the parent
Quarterly comprehensive income fornon-controlling shareholders

―9―

4,430

-123,750-16,136

11,668-475-31,056-16,611-19,387-12,181-143,138-13,712-147,550

1,530

4,411

Updated: August 2, 2024

(3) Notes on quarterly consolidated financial statements(Notes to Information by Segment)
I.

Nine months ended from October 1, 2022 to June 30,2023, consolidated period
1.

Information on net sales, profit or loss by reportable segment(Unit: thousand yen)
Reporting Segment
Open
Innovation
Business

Technology
business

Other*

Subtotal

Total

Net sales
External customers

1,833,989

640,251

2,474,241-

2,474,241

Inter-segments

-

318

318

-

318

Subtotal

1,833,989

640,569

2,474,559-

2,474,559

190,316-56,875

133,441-170

133,270

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)
Net Sales

AmountTotal of reportable segments

2,474,559

Profit in "Other" segment-

Elimination of intersegment transactions-318

Net sales in quarterly consolidated statements ofincome2,474,241(Unit: thousand yen)

ProfitAmountTotal of reportable segments

133,441

Profit in "Other" segment-170

Company expenses (Note)-93,618

Operating income in quarterly consolidated statements
39,652of incomeNote: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

―10―

Updated: August 2, 2024

II.

Nine months ended from October 1, 2023 to June 30,2024, 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

Net sales
External customers

1,344,715

552,292

1,897,007-

1,897,007Inter-segments

-

-

-

-

-

Subtotal

1,344,715

552,292

1,897,007-

1,897,007

Segment profit or Loss

27,109-27,693

-584

-

-584

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)
Net sales

AmountTotal of reportable segments

1,897,007Profit in "Other" segment-

Elimination of intersegment transactions-

Net sales in quarterly consolidated statements ofincome1,897,007(Unit: thousand yen)

ProfitAmountTotal of reportable segments-584

Profit in "Other" segment-

Company expenses (Note)-123,732

Operating income in quarterly consolidated statements-124,316
of incomeNote: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

―11―

Updated: August 2, 2024

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

(Notes on premise of a going concern)
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 beginning in the first quarter of the fiscal year.

(Notes to Statements of Cash Flows)
Quarterly consolidated statements of cash flows have not been prepared for the nine months ended June 30, 2024.
Depreciation and amortization (including amortization related to intangible assets excluding goodwill) andamortization of goodwill for the nine months ended June 30, 2024 are as follows.
Nine months ended
June 30, 2023

Nine months ended
June 30, 2024

(October 1,2022 to June 30,2023)(October 1,2023 to June 30,2024)

Depreciation and amortization

70,312thousand yen

66,344thousand yen

Amortization of goodwill

100,864thousand yen

100,864 thousand yen―12―Updated: August 2, 2024

(Significant subsequent events)(Company Split-off and Transfer of Subsidiary Shares)
At the Board of Directors' meeting held on June 3, 2024, the Company resolved that the rights and obligations of
the its solution business conducted by East Japan System Solutions Department and DX Service Promotion
Department (hereinafter referred to as the "Business") to be transferred to SS Service Corporation, a wholly owned
subsidiary of the Company, (hereinafter referred to as the "absorption-type company split"). In addition, all shares of
SS Service Corporation were transferred (hereinafter referred to as the "Main Transaction") to AGENTSMITH
HOLDINGS CORPORATION (hereinafter referred to as "ASH").
1.

Reasons for the Main Transaction

With the main purpose to focus on the concentration strategy in the SES business and AI-based acceleration
programs (support programs for start-up and second-stage companies to achieve rapid growth in a short period oftime), the Company decided to transfer the solutions business conducted by the East Japan System Solutions
Department and the DX Service Promotion Department of the Company to ASH through a split-off and transfer to its
subsidiary SS Service. For business continuity, we have determined that the divestiture was optimal in conducting
this transfer for each stakeholder: transferee, our shareholders, business partners, and employees.
2.

Outline of the Absorption-type Split(1) Summary of the Absorption-type Split
I.

Schedule of the Absorption-type Split and Share Transfer

Date of Board of Directors' resolution approval ofJune 3, 2024

absorption-type company split
Date of execution of share transfer

June 3, 2024

Effective date of absorption-type split

July 8, 2024

Date of share transfer

July 8, 2024

(Note) This absorption-type company split was conducted without obtaining approval at the general meetings ofshareholders of the Company and the successor company with the following reasons: this absorption-typedemerger falls under the simplified absorption-type company split as stipulated under Article 784, Paragraph 2 of
the Companies Act for the Company, the divesting company, and also SS Service Corporation as the succeedingcompany falls under the simplified absorption-type company split under Article 796, Paragraph 1 of the Companies
Act.
II.

Method of the Absorption-type Split

An absorption-type split (simplified demerger) in which the Company will be the predecessor company and SS
Service Corporation will be the successor company.
III.

Allotment of shares in connection with the Company Split
No cash or other consideration will be paid in connection with the absorption-type split.

IV.

Treatment of stock acquisition rights and bonds with stock acquisition rights in connection with the company
split
There will no change in the treatment of stock acquisition rights issued by the Company as a result of theAbsorption-type Split.

V.

Increase or Decrease in Capital Due to the Company Split
There will be no increase or decrease in the Company's capital as a result of the Absorption-type Split.

VI.

Rights and obligations to be assumed by the successor company, SS Service Co.
SS Service Corporation, the successor company, will assume the assets, liabilities, contractual status, andother rights and obligations associated with this business as of the effective date, as stipulated in theabsorption-type split agreement dated June 3, 2024.

―13―

Updated: August 2, 2024

VII. Prospect of fulfillment of obligations
The Company is confident that there will be no issues with the certainty of fulfillment of the obligations by theCompany and SS Service Corporation, the successor company, after this absorption-type split.

―14―

Updated: August 2, 2024

(2) Outline of the Companies Involved in the Absorption-type Split(1) Name

Systemsoft Corporation(the Company) (As of March 31, 2024)

SS Service Co.
(As of March 11, 2024)(2) Location

1-8-1 Marunouchi, Chiyoda-ku, Tokyo

1-12-1 Tenjin, Chuo-ku, Fukuoka City,
Fukuoka(3) Representative

Haruki Yoshio, Representative Director

Haruki Yoshio, Representative Director(4) Business description

System development,
Provision of system services

System development,
Provision of system services(5) Capital

1,706 million yen

35 million yen(6) Date of establishment

September 28, 1979

June 11, 2020

(7) Number of shares issued

84,834,140 shares

1,200 shares(8) Fiscal year end

September

September(9) Major shareholders andshareholding ratio

Apaman Network Co., Ltd. 13.97%
APAMAN Co., Ltd. 10.25%
TheMasterTrust Bank of Japan,Ltd. 8.60%
Trust Bank K.K. (Trust Account)
Michio Maruyama 2.94%
SBI SECURITIES Co., Ltd. 2.32%

Systemsoft Corporation 100%-

Our company owns 100% of theshares. The director of our company isserving as a director (representative)of the company, but this will bedissolved after the transfer.

(10) Relationship between
the listed company and therelevant company(3) Operating results and financial position after the most recent fiscal year

(Unit: thousand yen)

Operating results and financial position of Systemsoft Corporation for the past three years
Fiscal Year

FY09/2021

FY09/2022

FY09/2023

Consolidated Net Assets

5,838,523

5,865,664

5,782,458

Consolidated total assets
Consolidated net assets
per share
Consolidated net sales
Consolidated operating
incomeConsolidated ordinary
incomeConsolidated net income
Consolidated net income
per share
Dividend per share

7,467,478

7,224,804

6,742,282

68.90

68.79

67.79

4,920,126

4,704,404

3,390,566

377,793382,736

155,151

342,682

377,113135,214483,312201,017

93,595

6.15

2.37

1.10

2.00yen

2.00yen(Unit: thousand yen)

Operating results and financial position of SS Service K.K. for the past three years
Fiscal Year

FY09/2021

FY09/2022

FY09/2023

Net Assets

8,744

8,305

7,999

Total assets

9,130

8,691

8,070

Net assets per share

43.72

41.52

39.99

-

-

-

Operating income

-483

-367

-234

Ordinary income

-483

-367

-234

Net sales

Net income

-554

-438

-305

Net income per share

-2.77

-2.19

-1.52

-

-

-

Dividend per share―15―

Updated: August 2, 2024

(4) Outline of Business to be Spun Off
I.
Description of business to be split
Solution business conducted by East Japan System Solution Dept. and DX Service Promotion Dept.
II.

Operating results of the business to be split off or taken over (September 30, 2023)

Net sales
III.

Target Businesses

Company (Consolidated)

712,545 thousand yen

3,390,566 thousand yen

Ratio
21.0%

Reportable segment that included the business to be split off

Technology Business(5) Items and amounts of assets and liabilities to be split (April 30, 2024)(Unit: thousand yen)
Assets and Liabilities
Item

Book value

Current assets

138,404

Fixed assets

306

Total assets

138,711

Current liabilities

26,319Fixed liabilities

57,035

Total liabilities

83,354

Net assets (total assets - total liabilities)

55,356(Note) The above amounts are as of April 30, 2024 and differ from the actual amounts to be split.
3.

Outline of the Transfer(1) Outline of the company to be transferred
SS Service Corporation" in "2. (2) Outline of the Companies Involved in the Absorption-type Split" above.
(2) Outline of the counterparty(1) Name

AGENTSMITH HOLDINGS, Inc.

(2) Location

1-3-1 Azabudai, Minato-ku, Tokyo(3) Title and name of representative(5) CapitalToshihiko Yamasuge, Representative Director
Management of operating companies, supervision of groupwide sales, supervision of back-office operations, etc.
10 million yen(6) Date of establishment

January 11, 2022

(4) Business(7) Major shareholders and shareholding ratio Toshihiko Yamasuge 80%
Capital relationship(8) Relationship between the listed company
Personnel relationshipand the company
Business relationship

There are no matters to be stated.
There are no matters to be stated.
There are no matters to be stated.

(3) Number of shares transferred, transfer price and status of shares held before and after transfer(1) Number of shares held before the change

Common stock

1,200 shares

Number of voting rights

1,200

Percentage of voting rights held

100%(2) Number of shares transferredCommon stock 1,200 shares(3) Transfer price

1,050 million yen
0 shares(4) Number of shares held after transfer―16―

Number of voting rights

0Percentage of voting rights held0%

Updated: August 2, 2024

4.

Outline of Accounting for this Transaction

This absorption-type split will be treated as a transaction under common control in accordance with the "AccountingStandard for Business Combinations" (ASBJ Statement No. 21, January 16, 2019) and the "Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance No. 10,
January 16, 2019).
This share transfer will be processed in accordance with the "Accounting Standard for Business Divestitures" (ASBJ
Statement No. 7, September 13, 2013) and the "Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures" (ASBJ Guidance No. 10, January 16, 2019).
5.

Projected Extraordinary Income

An extraordinary profit of 1,012 million yen is expected in the fourth quarter of the fiscal year ending September 30,
2024 as a result of the stock transfer.
6.

Outlook for the future

The impact of the divestiture and the transfer on business performance will be separately calculated and announced
immediately once it becomes available.

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