Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended June 30, 2024
(Based on Japanese GAAP)
August 7, 2024
Company name:

System Support Inc.

Stock exchange listing: Tokyo
Stock code:
4396
Representative:
Inquiries:

URL

https://www.sts-inc.co.jp

Representative Director
General Manager of Management

Ryoji Koshimizu
Naoyuki Morita

Headquarters
Scheduled date of ordinary general meeting of shareholders:TEL

076-265-5151

September 26, 2024

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

September 27, 2024
September 27, 2024

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)(1) Consolidated operating results
Net salesYear ended June 30, 2024
Year ended June 30, 2023

Operating profit

Millions of yen
22,02919,267

%
14.3
18.9

Millions of yen
1,670
1,456

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
118.02
26.7
18.5
7.6
97.33
26.8
17.6
7.6

Yen
118.24
97.52

Year ended June 30, 2024
Year ended June 30, 2023

%
14.7
21.7

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
1,743
19.0
1,224
21.2
1,465
23.1
1,009
28.5

(2) Consolidated financial position
Total assets
As of June 30, 2024
As of June 30, 2023

Net assets

Equity ratio

Millions of yen
9,929
8,870

Millions of yen
5,055
4,124

Cash flows fromoperating activities
Millions of yen
1,468
1,066

Cash flows frominvesting activities
Millions of yen
(419)
(324)

Net assets per share%
50.9
46.5

Yen
488.26398.32(3) Consolidated cash flows

Year ended June 30, 2024
Year ended June 30, 2023

Cash flows from
Cash and cash equivalentsat end of period
financing activities
Millions of yen
Millions of yen(513)
3,532(462)2,987

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended June 30, 2023
Year ended June 30, 2024
Year ending June 30, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

15.00
18.00

––

17.00
22.00

32.00
40.00

331
414

32.833.8

8.8
9.0

–

24.00

–24.00

48.00

134.4

3. Forecast of consolidated financial results for the year ending June 30, 2025 (from July 1, 2024 to June 30, 2025)
Net sales
Millions of yen
Six months ending
December 31, 2024
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

12,644

18.9

1,063

20.3

1,064

18.3

718

16.9

69.31

26,087

18.4

2,115

26.6

2,106

20.8

1,44418.0

139.38

4. Notes(1) Significant changes in the scope of consolidation during the year ended June 30, 2024:

No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

10,380,000 shares As of June 30, 2023

10,380,000 shares

Number of treasury shares at the end of the period
As of June 30, 2024

25,026 shares As of June 30, 2023

25,026 shares

Average number of shares during the period
Year ended June 30, 2024

10,354,974 shares Year ended June 30, 2023

210,356,505 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

3,568,97847,0184,253,313
63,883

Accounts receivable - trade
Contract assets

2,736,311
466,140

3,067,883
407,395

Merchandise and finished goods
Work in process

41,076
25,61136,855
18,541

Supplies
Other

3,050
252,583

2,641
331,108(827)(16,209)

7,139,941

8,165,413

Property, plant and equipment
Buildings and structures

344,732

403,619

Accumulated depreciation(169,723)(186,996)

Buildings and structures, net

175,008

216,623

Allowance for doubtful accounts
Total current assets
Non-current assets

VehiclesAccumulated depreciation
Vehicles, net

5,546

5,546

(4,204)(5,546)

1,341

0Tools, furniture and fixtures

335,853

358,429

Accumulated depreciation(248,498)(270,037)

87,35488,391Tools, furniture and fixtures, net
Land

21,632

21,632

Leased assets
Accumulated depreciation

250,994(62,105)

233,269(90,969)

188,889

142,300

474,225

468,947

122,515
170,561

105,068
141,322

5,257
2,253

2,850
2,253

Total intangible assets

300,588

251,494

Investments and other assets
Leasehold deposits

Leased assets, net
Total property, plant and equipment
Intangible assets
Software
Goodwill
Leased assets
Other

322,064

434,954

Deferred tax assets
Other

400,810233,212357,284
251,005

Total investments and other assets

956,086

1,043,244

1,730,900

1,763,687

8,870,841

9,929,100

Total non-current assets
Total assets3(Thousands of yen)
As of June 30, 2023

As of June 30, 2024

Liabilities
Current liabilities
Accounts payable - trade596,108

635,449

Short-term borrowings
Current portion of long-term borrowings

695,000
60,866700,000
44,488

Lease liabilities
Accounts payable - other

52,376404,966

46,752533,859

Accrued expenses
Income taxes payable

1,135,718
235,660

1,188,685
367,096

Provision for bonuses
Reserve for quality assurance

10,77812,73911,523
14,888Other667,840

723,645

3,872,054

4,266,390

Long-term borrowings
Lease liabilities

253,274
146,348

167,122103,146

Provision for retirement benefits for directors (and otherofficers)

260,754285,867

Retirement benefit liability
Other

197,617
16,14826,601
24,017

Total non-current liabilities

874,142606,755

4,746,197

4,873,145

Shareholders' equity
Share capital

723,323

723,323

Capital surplus
Retained earnings

549,837
2,923,524

549,837
3,785,521

Treasury shares(18,826)(18,826)

4,177,860

5,039,857

9,402(62,617)

16,097–

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(53,215)

16,097

4,124,644

5,055,954

8,870,841

9,929,100

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2023

Fiscal year ended
June 30, 2024

Net sales

19,267,178

22,029,880

Cost of sales

14,039,519

15,938,516

Gross profit

5,227,659

6,091,363

Selling, general and administrative expenses

3,770,916

4,420,400

Operating profit

1,456,742

1,670,963

Non-operating income
Interest income

64146

Commission income
point

16,436–22,14018,503

Subsidy income
Surrender value of insurance policies

13,864–

15,793
19,684

Other

6,489

18,529Total non-operating income

36,856

94,797

18,637
8,537

19,251
–

840

2,929

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on termination of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses

28,01522,181

1,465,583

1,743,579–

22,988–22,988325

600

34,803–35,128600

1,430,454

1,765,967

Income taxes - current

423,553

525,925

Income taxes - deferred(3,042)

15,620

Profit before income taxes

Total income taxes

420,510541,546

Profit1,009,944

1,224,420

Profit attributable to owners of parent

1,009,944

1,224,420

5

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

June 30, 2023

June 30, 2024

1,009,944

1,224,420

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

3,146(19,771)

6,695
62,617

Total other comprehensive income(16,624)

69,313

993,320

1,293,733

993,320

1,293,733

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of changes in equity
Fiscal year ended June 30, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

723,323

Retained earnings

549,837

2,203,584

Treasury shares(18,655)

Total shareholders'equity
3,458,091

Changes during periodDividends of surplus(290,004)(290,004)

Profit attributable toowners of parent

1,009,944

1,009,944

Purchase of treasury shares

(171)

(171)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

719,939(171)

719,768

723,323549,837

2,923,524(18,826)

4,177,860

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

6,255(42,846)(36,591)

Total net assets

3,421,500

Changes during period
Dividends of surplus(290,004)

Profit attributable toowners of parent

1,009,944

Purchase of treasury shares(171)

Net changes in items otherthan shareholders' equity

3,146(19,771)(16,624)(16,624)

Total changes during period

3,146(19,771)(16,624)

703,144

Balance at end of period

9,402(62,617)(53,215)

4,124,644

7

Fiscal year ended June 30, 2024
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

723,323

Retained earnings549,837

2,923,524

Total shareholders'equityTreasury shares(18,826)

4,177,860

Changes during period
Dividends of surplus(362,424)(362,424)

Profit attributable toowners of parent

1,224,420

1,224,420

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

861,996–

861,996

723,323549,837

3,785,521(18,826)

5,039,857

Accumulated other comprehensive income

Balance at beginning ofperiod

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

9,402(62,617)(53,215)

Total net assets

4,124,644

Changes during period
Dividends of surplus(362,424)

Profit attributable toowners of parent

1,224,420

Net changes in items otherthan shareholders' equity

6,695

62,617

69,31369,313

Total changes during period

6,695

62,617

69,313

931,309

Balance at end of period

16,097

16,097

5,055,954

8Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2023

June 30, 2024

1,430,454

1,765,967

Depreciation
Amortization of goodwill

181,087
29,239192,288
29,239

Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts

38,392669–
14,972

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

27,61625,113

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses(13,617)1,235(30,070)
745

Increase (decrease) in provision for loss on orders received
Increase (decrease) in reserves for quality assurance

(103)
5,154

–
2,149

Interest and dividend income
Gain on termination of retirement benefit plan

(105)–(154)(22,988)

18,63734,803

19,251–

Loss on retirement of non-current assets
Decrease (increase) in trade receivables

325(548,423)

600(287,393)

Decrease (increase) in inventories
Increase (decrease) in trade payables

928
74,811

11,69838,087

Increase (decrease) in accrued expenses
Increase (decrease) in accounts payable - other153,578
76,59849,529112,097

Increase (decrease) in accrued consumption taxes
Other, net

44,14541,74230,284(52,767)Interest expenses
Impairment losses

Subtotal

1,597,170

1,898,651

Interest and dividends received
Interest paid

105
(18,566)

154(19,218)

Income taxes paid
Income taxes refund(517,134)
5,319(411,126)–Net cash provided by (used in) operating activities

1,066,894

1,468,460

Cash flows from investing activities
Payments into time deposits(88,200)(187,600)

Proceeds from withdrawal of time deposits
Purchase of insurance funds

55,200(115,496)

32,700(12,608)

Proceeds from cancellation of insurance funds
Purchase of property, plant and equipment–(105,728)

21,892(107,842)

Purchase of intangible assets
Payments of leasehold and guarantee deposits(59,770)(10,499)(39,677)(129,261)

–
–

4,860
(2,000)(324,494)(419,535)

Proceeds from refund of leasehold and guarantee deposits
Payments for asset retirement obligations
Net cash provided by (used in) investing activities

9(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

June 30, 2023

June 30, 2024

(130,000)

5,000

Proceeds from long-term borrowings
Repayments of long-term borrowings

90,000(99,869)

94,000(196,530)

Repayments of lease liabilities
Purchase of treasury shares(32,712)(171)(53,072)–

Dividends paid

(289,290)(362,638)

Net cash provided by (used in) financing activities(462,042)(513,241)

Effect of exchange rate change on cash and cash equivalents

4,689

9,343

Net increase (decrease) in cash and cash equivalents

285,047

545,026

Cash and cash equivalents at beginning of period

2,702,034

2,987,081

Cash and cash equivalents at end of period

2,987,081

3,532,10810