Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
July 26, 2024
Company name: SYSTEM RESEARCH CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3771
URL: https://www.sr-net.co.jp/
Representative: Hiroshi Hirayama, Representative Director and President
Contact: Yoshinobu Ohta, Operating Officer, General Manager, Public Relations Office
Phone: +81-52-413-6820
Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Not available
Holding of financial results briefing: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2024
6,190
11.4
474
0.2
489
0.8352(4.2)
June 30, 2023
5,555
8.3
472
9.7
485
12.4
367
766.1
(Note) Comprehensive income: Three months ended June 30, 2024: ¥352 million [(4.6)%]
Three months ended June 30, 2023: ¥369 million [ - %]Basic earnings per
share

Diluted earnings per
share

Three months ended
YenYenJune 30, 2024
21.18
June 30, 2023
22.01
(Note) A two-for-one common share split was issued on April 1, 2024. Basic earnings per share is calculated on theassumption that the share split was conducted at the beginning of the previous consolidated fiscal year.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

14,888
As of June 30, 2024
16,145
As of March 31, 2024
(Reference) Equity: As of June 30, 2024: ¥9,969 million
As of March 31, 2024: ¥10,508 million

Million yen

9,985
10,524Equity ratio
%

66.9
65.0

2. Dividends
Annual dividends

1stquarter-endYen

2ndquarter-end

Yen

3rd
quarter-end

Fiscal year-end

Yen

Total

Yen

Yen

Fiscal year ended
0.00
80.00
80.00
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025
0.00
40.00
40.00
(Forecast)
Notes: 1. Revisions to the forecast of cash dividends most recently announced: No
2. A two-for-one common share split was issued on April 1, 2024. For the fiscal year ended March 31, 2024,
the actual dividend amount before the share split is shown.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March31, 2025)(% indicates changes from the previous corresponding period.)
Net sales

Six months
endingSeptember 30,2024
Full year

Operating profit

Million yen%

12,386

9.5

Million yen%

1,045 (11.8)

Ordinary profit
Million yen

Profit attributable toowners of parent% Million yen%

Basic earnings
per shareYen

1,076 (10.9)778(13.4)

46.54

26,718 14.5
3,084 14.0
3,114 12.4
Note: Revisions to the financial result forecast most recently announced: No2,198

11.6

131.53* Notes:(1) Significant changes in the scope of consolidation during the period : No
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: No(ii) Changes in accounting policies due to other reasons: No(iii) Changes in accounting estimates: No(iv) Restatement: No(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2024: 16,720,000 shares
As of March 31, 2024: 16,720,000 shares(ii) Number of treasury shares at the end of the period:
As of June 30, 2024: 154,224 shares
As of March 31, 2024: 4,224 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear):Three months ended June 30, 2024: 16,640,776 shares
Three months ended June 30, 2023: 16,715,950 shares

(Note) A two-for-one common share split was issued on April 1, 2024. Total number of issued shares (commonshares) is calculated based on the assumption that the share split was conducted at the beginning of theprevious consolidated fiscal year.
* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or audit firms: No* Explanation of the proper use of financial results forecast and other notes(Notes on forward-looking statements, etc.)
The financial results forecast and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions that the Company deems reasonable, and the Company does
not intend to guarantee that they will be achieved. In addition, actual results may differ significantly from these
forecasts due to a wide range of factors. For the conditions assumed for the financial results forecast, precautions
for the use of the financial results forecast, etc., please refer to “(3) Explanation of Consolidated Financial Results
Forecasts and Other Forward-looking Information” on page 2 of the attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ................................................................................ 2(1) Explanation of Operating Results ............................................................................................................... 2(2) Explanation of Financial Position .............................................................................................................. 2(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information ......... 22. Quarterly Consolidated Financial Statements and Principal Notes ................................................................ 3(1) Quarterly Consolidated Balance Sheets ..................................................................................................... 3(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 5Quarterly Consolidated Statements of Income .......................................................................................... 5
Quarterly Consolidated Statements of Comprehensive Income ................................................................ 6(3) Notes to the Quarterly Consolidated Financial Statements ........................................................................ 7(Notes on going concern assumption) .............................................................................................................. 7(Notes in the case of significant changes in shareholders’ equity) .................................................................. 7(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) .... 7(Notes to segment information, etc.) ................................................................................................................ 7(Notes to statements of cash flows) ................................................................................................................. 7
3. Other ............................................................................................................................................................... 8
Status of Production, Receipt of Orders, and Sales(1) Production ................................................................................................................................................ 8(2) Outsourcing .............................................................................................................................................. 8(3) Purchases .................................................................................................................................................. 8(4) Receipt of Orders ...................................................................................................................................... 9(5) Sales ......................................................................................................................................................... 91

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2024, the Japanese economy was on a moderate recovery path ascorporate earnings and employment situations, among other factors, showed signs of improvement amid theprogress of the normalization of economic activities, despite the persisted impact of the surge in prices broughtby unstable international affairs and the depreciation of the Japanese yen. Meanwhile, the outlook remains
uncertain due to the continued global monetary tightening, surging raw materials and energy prices, worsening
labor shortages, and other factors.
In the information service industry, in which the Group operates, the industry’s total net sales for May 2024
grew by 3.9% compared with a year earlier, according to the Current Survey of Selected Service Industries
released by the Ministry of Economy, Trade and Industry. Specifically, sales of “Software Ordered,” the main
segment, increased by 3.9% year on year, sales of “Software Products” increased by 0.8% year on year, and salesof “System Management on Commission” increased by 3.1% year on year. These results show that companies’
IT investment demand remains strong as they reconstruct mainframe systems, and develop products to reformtheir business operations and expand their business utilizing digital transformation (DX) technology.
In this business environment, for the three months ended June 30, 2024, net sales of SI Services Businesswere 2,513 million yen (an increase of 22.5% year on year), due to a steady IT investment demand fromautomotive related sectors, the Company’s major customer sectors, among others. Net sales of Software
Development Business were 3,358 million yen (an increase of 3.5% year on year), as the Company stably secured
continuing contracts with existing customers. Net sales of Software Products Business, which conducts
businesses including sales of packaged software, were 90 million yen (an increase of 11.3% year on year) due tofactors such as an increase in sales of maintenance services for existing customers. Net sales of Merchandise
Sales were 112 million yen (an increase of 8.4% year on year) due to the purchase and sale of personal computers
and IT devices as well as software products, among other items. Net sales of Website Administration and Cloud
Services (SaaS) in other category were 116 million yen (an increase of 53.2% year on year) backed by increases
in the number of new on-line shop openings of and in merchandise value of “easy my shop,” a cloud service for
opening and operating on-line shops.
In terms of earnings, IT investment by client companies remained strong, and the Company successfully
maintained a high operating rate of engineers. Meanwhile, expenses increased due to increase in subcontracting
costs due to higher orders to subcontractors, increase in recruiting expenses due to strengthened recruiting
activities, and increase in training expenses due to expanded education, among other factors.
As a result, for the three months ended June 30 2024, net sales were 6,190 million yen (an increase of 11.4%
year on year), with operating profit of 474 million yen (an increase of 0.2% year on year), ordinary profit of 489
million yen (an increase of 0.8% year on year), and profit attributable to owners of parent of 352 million yen (adecrease of 4.2% year on year), on a consolidated basis.

(2) Explanation of Financial Position
Total assets as of June 30, 2024 decreased by 1,256 million yen year on year to 14,888 million yen, due todecreases in cash and deposits, and trade receivables and contract asset, among other factors.
Liabilities as of June 30, 2024 decreased by 718 million yen year on year to 4,903 million yen, due to decreases
in income taxes payable and provision for bonuses, among other factors, despite an increase in short-termborrowings.
Net assets as of June 30, 2024 decreased by 538 million yen year on year to 9,985 million yen, due to thepayment of dividends from retained earnings, among other factors.
(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information
No change has been made to the financial results forecasts for the six months ending September 30, 2024 andthe full year ending March 31, 2025, announced on May 8, 2024.
22. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Trade receivables and contract asset
Merchandise
Supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Other
Total investments and other assets
Total non-current assets
Total assets

3

As of June 30, 2024

8,326,378
4,585,551
1,771
6,497
68,992
12,989,191

7,196,613
4,425,696
6,244
6,493
118,769
11,753,818

811,906
1,133,800
79,3402,025,047

802,260
1,133,800
74,7432,010,804

180,219
159,966
7,956
348,141

163,836
171,805
7,889
343,530

783,358
783,358
3,156,547
16,145,739

780,619780,619
3,134,954
14,888,773

(Thousand yen)
As of March 31, 2024
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
OtherTotal current liabilities
Non-current liabilities
Long-term borrowings
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of June 30, 2024

945,181780,510428,087
1,266,018
1,540,600
4,960,397

1,022,971
440,000
738,828
154,962
399,775
1,568,712
4,325,249

661,086
661,086
5,621,483

577,768
577,768
4,903,017

550,150
517,550
9,434,561(1,571)
10,500,689

550,150
517,550
9,118,390(223,721)
9,962,368

8,183
8,183
15,382
10,524,256
16,145,739

7,039
7,039
16,347
9,985,755
14,888,773

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2023

For the three months ended
June 30, 2024

5,555,783
4,375,461
1,180,322
707,429472,893

6,190,518
4,893,174
1,297,344
823,193474,151

3
12,9701,586
14,5590
17,82589
17,915

1,849
3
1,853
485,599

2,118
2,118
489,94800485,599
116,420
369,179
1,201
367,978

489,948
136,524
353,424964
352,459

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2023

For the three months ended
June 30, 2024

369,179

353,424

158
158
369,337(1,143)(1,143)352,280

368,136

351,316

1,201964

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6(3) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There are no relevant matters.
(Notes in the case of significant changes in shareholders’ equity)
There are no relevant matters.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
The Company reasonably estimates the effective tax rate after applying tax effect accounting to profit before
income taxes for the fiscal year ending March 31, 2025, and multiplies profit before income taxes for the quarterby the estimated effective tax rate. However, if the estimated effective tax rate used to calculate tax expenses
would be significantly unreasonable, the normal effective statutory tax rate is used.
(Notes to segment information, etc.)[Segment information]
I. For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
The Group omits the description of business segments because it has only one segment, the software relatedbusiness.
II. For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
The Group omits the description of business segments because it has only one segment, the software relatedbusiness.
(Notes to statements of cash flows)
Quarterly consolidated statements of cash flows for the three months ended June 30, 2024 are not prepared.
Depreciation, which includes depreciation for intangible assets excluding goodwill, and amortization of goodwill
for the three months ended June 30 are as follows:
For the three months ended
June 30, 2023

For the three months ended
June 30, 2024

Depreciation

26,577 thousand yen

34,629 thousand yen

Amortization of goodwill

16,383 thousand yen

16,383 thousand yen

73. Other
Status of Production, Receipt of Orders, and Sales(1) Production
The amount of production by business category for the three months ended June 30, 2024 is as follows:
For the three months ended
June 30, 2024

Business category

Amount of production(million yen)

Change from the previous
corresponding period (%)

SI Services Business

2,513

122.5

Software Development Business

3,358

103.5

Software Products Business

90111.3

Other116

153.2

6,078

111.4

Total(Note) Amounts are presented based on sales prices.

(2) Outsourcing
The amount of outsourcing by business category for the three months ended June 30, 2024 is as follows:
For the three months ended
June 30, 2024

Business category

Amount of outsourcing(million yen)

Change from the previous
corresponding period (%)

SI Services Business

1,095

138.2

Software Development Business

1,344

100.9

Software Products Business26134.1

Total

2,465

115.0

(3) Purchases
The amount of purchases by business category for the three months ended June 30, 2024 is as follows:
For the three months ended
June 30, 2024

Business category

Amount of purchases(million yen)
Merchandise Sales

Change from the previous
corresponding period (%)
94(Note) Amounts are presented based on purchase prices.

8110.1

(4) Receipt of Orders
The amount of orders received by business category for the three months ended June 30, 2024 is as follows:
For the three months ended
June 30, 2024
Business category
Orders received(million yen)

Change fromthe previous
correspondingperiod (%)

Backlog oforders(million yen)

Change fromthe previous
corresponding
period (%)

SI Services Business

2,980

118.1

2,776

113.2

Software Development Business

3,533

110.3

2,625

110.3

Software Products Business

84

113.1

120

121.5

Merchandise Sales

121

149.2

50

186.2

6,720

114.3

5,573

112.4

Total

(5) Sales
The amount of sales by business category for the three months ended June 30, 2024 is as follows:
For the three months endedJune 30, 2024

Business category

Amount of sales(million yen)

Change from the previous
corresponding period (%)

SI Services Business

2,513

122.5

Software Development Business

3,358

103.5

Software Products Business

90

111.3

Merchandise Sales

112

108.4

Other116

153.2

6,190

111.4

Total(Note) The amount of sales by major customer and the share of the sales in total sales are as follows:
Customer

For the three months ended
June 30, 2023
Amount of sales(million yen)

TOYOTA SYSTEMS CORPORATION

847

9For the three months ended
June 30, 2024

Share(%)

Amount of sales(million yen)
15.2

1,083

Share(%)
17.4