Updated: August 14, 2023

Consolidated Financial Results for the Nine Months Ended June 30, 2023

(Under Japanese GAAP)
August 10, 2023
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: August 10, 2023
Scheduled start date to commence dividend payments: －Preparation of supplementary materials on quarterly financial results: YesHolding of quarterly financial results briefings: No(Yen amounts are rounded down to millions, unless otherwise noted.)
Consolidated Financial Results for the nine months ended June 30, 2023
(From October 1, 2022 to June 30, 2023)

1.

(1) Consolidated financial results (cumulative)(% is Year-on-year rate of increase / decrease)
Net Sales
Nine months ended

Operating Income

Quarterly net income
attributable to owners of parent

Ordinary income

million yen%million yen%million yen%million yen%

2,474-25.4

39278.4

9-74.92―

June 30, 2022

3,314

-6.8

10-97.039-87.8-21―

Note: Comprehensive income

For the nine months ended, June 30, 2023
For the nine months ended, June 30, 2022

June 30, 2023

¥ -12 million yen (―%)
¥ -91 million yen (―%)

Quarterly
Net earnings per share

Quarterly
Diluted net earnings per share

Nine months ended

yenyenJune 30, 2023

0.03

―

June 30, 2022

-0.26

―

(2)

Consolidated financial condition
Total Assets

Nine months ended

June 30, 2023

Net Assets

Shareholders’ equity ratio

million yen

million yen%

6,651

5,683

84.9

5,865

80.7

Fiscal year ended

September 30, 2022
Reference: Equity capital

7,224
As of June 30, 2023
As of September 30, 2022

¥5,650 million¥5,833 million

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2. Cash dividends
Annual dividends
First quarter-end Second quarter-end

Third quarter-end

Fiscal year-end

Total

Fiscal year ended

yen

yen

yenyenyen

September 30, 2022

―

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 – September30, 2023)

Net Sales

Operating income(% increase or decrease from the previous year)
Net income
Ordinary income
attributable toEarnings per shareowners of parent

million yen%

million yen%million yen%million yen%

yen

3,800-19.2

310-19.0

220-41.7

110-45.31.31

Full-year

Note: Revisions to the most recently announced earnings forecasts:None* 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 (3) Notes on quarterly consolidated
financial statements (Change in accounting policy)" on page 8 of the attached materials.

(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 June 30, 2023

84,834,140 shares

As of September 30, 2022

84,834,140 shares

Number of treasury shares at the end of the period
As of June 30, 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)
Nine months ended June 30, 2023

84,802,092 shares

Nine months ended June 30, 2022

84,676,970 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an auditcorporation.
*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 theCompany promises to achieve such results. Actual results may differ materially due to various factors
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(Under Japanese GAAP)
Updated: August 14, 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) 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 accounting policy)................................................................................................................................... 8(Information by segment) .......................................................................................................................................... 8
2. Other ··············································································································································· 9

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(Under Japanese GAAP)
Updated: August 14, 2023

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

Nine months ended June 30, 2023
(June 30, 2023)

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable and contractassets
Work in progress

1,949,892

1,703,521

1,547,341

1,202,687

35,04959,238

39

19

Other

492,404

527,078

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

3,994,644

3,462,461

Raw materials and stored products

Total current assets
Fixed assets
Tangible fixed assets
Building and structures (net)32,97632,759Tools, furniture and fixtures (net)

14,15912,460Total tangible fixed assets

47,13545,220Goodwill

2,069,524

1,968,659

Other intangible fixed assets

341,718

289,384

Total intangible assets

2,411,242

2,258,044

Investments and other assets

771,782

885,725

Total fixed assets

3,230,160

3,188,990

7,224,804

6,651,452

Notes and accounts payable

181,058

140,152

Income taxes payable

84,827705

Other509,963416,590

Total current liabilities

775,849

557,448

Corporate bond

280,000

210,000

Long-term debt

170,000

80,000Asset retirement obligations

10,176

10,200Intangible fixed assets

Total assets
LIABILITIESCurrent liabilities

Fixed liabilities

Other

123,114

110,503

Total fixed liabilities

583,290

410,703

1,359,140

968,152

Total liabilities

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(Under Japanese GAAP)
Updated: August 14, 2023

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

Current nine months ended June 30,2023(June 30, 2023)

EquityShareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock

1,706,476

1,706,476

3,712,343
522,094

3,542,739
524,994-8,078-8,086

5,932,836

5,766,123

1,675-14,461-101,032-101,507-99,357-115,969

24,5197,665

23,948
9,196

Total net assets

5,865,664

5,683,299

Total liabilities and net assets

7,224,804

6,651,452

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

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(Under Japanese GAAP)
Updated: August 14, 2023

(2) Quarterly consolidated statements of income and quarterly consolidated comprehensive income
statements
Quarterly Consolidated statement of income
Cumulative period for consolidated third quarter, nine months ended June 30, 2023
(Unit: Thousand yen)Previous nine months ended
June 30, 2022
(October 1, 2021 to June 30, 2022)

Current nine months ended
June 30, 2023
(October 1, 2022 to June 30, 2023)

Sales

3,314,973

2,474,241

Cost of sales

2,584,990

1,814,097

Gross profit

729,982

660,143

Selling, general and administrative expenses

719,503

620,491

Operating income (loss)

10,47839,652Non-operating income
Interest income

274

5

Dividend received
Foreign exchange gains

548
67,738624587

Subsidy income
Consulting revenue

3,203
1,250

7,760―

Other716

966

73,731

9,944

Total non-operating income
Non-operating expenses
Interest expenses

11,494

9,948

Payment Fees
Other

14,924
17,954

15,177
14,488

Total non-operating expenses

44,37339,614

Ordinary income or ordinary loss

39,836

9,981

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

4,464
―

19,709570

Total extraordinary gains

4,464

20,280Extraordinary gains

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

6,191

680Loss on valuation of investment securities
Loss on store closing

3,063
2,068

4,129
―

25,357―

Total extraordinary loss

36,680

4,809

7,620

25,452

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

29,69421,021

Total corporate taxes, etc.

29,69421,021

Quarterly net income or quarterly net loss

-22,074

4,430

-181

1,530

-21,892

2,899

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

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(Under Japanese GAAP)
Updated: August 14, 2023

Quarterly Consolidated statement of income
Cumulative period for consolidated third quarter, nine months ended June 30, 2023
(Unit: Thousand yen)Previous nine months ended June30, 2022
(October 1, 2021 to June 30, 2022)

Current nine months ended June 30,2023(October 1, 2022 to June 30, 2023)

Quarterly net income or loss

-22,074

4,430

Other comprehensive income
Valuation difference on available-for-salesecurities
Exchange conversion adjustment account-5,137-16,136-64,213-475

Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders

7/9-69,350-16,611-91,424-12,181-91,243-13,712

-181

1,530

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(Under Japanese GAAP)
Updated: August 14, 2023

(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 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 nine months ended, from October 1, 2021 to June 30, 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

2,416,637

898,335

3,314,973―

3,314,973

Sales or transfers inside orbetween segments

169

27,91728,086―28,0862,416,807

926,252

3,343,059―

3,343,059

116,957

17,487

134,445-247

134,198

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

134,445

Profit in "Other" segment-247

Company-wide expenses (Note)-123,719

Operating income in quarterly consolidated statementsof income

10,478

Note: Company-wide expenses are general and administrative expenses that are not primarily attributable to the reporting segment.

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(Under Japanese GAAP)
Updated: August 14, 2023

II. Current nine months ended, from October 1, 2022 to June 30, 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

1,833,989

640,251

2,474,241―

2,474,241

Sales or transfers inside or
between segments

―

318

318

―

318

1,833,989

640,569

2,474,559―

2,474,559

190,316-56,875

133,441-170

133,270

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

Amount2,474,559

Total of reportable segments―

Sales in "Other" segment
Elimination of inter-segment transactions-318
2,474,241

Sales in quarterly consolidated statements of income(Unit: Thousand yen)
ProfitAmount133,441

Total of reportable segments
Profit in "Other" segment-170

Company-wide expenses (Note)-93,618

Operating income on quarterly consolidated statement ofincome39,652

Note: Company-wide expenses are general and administrative expenses that are not primarily attributable to the reporting segment.

2. Other
Nothing applicable.

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