Supplementary Materials for
Financial Results for the Fiscal
Year Ended June 30, 2023
System Support Inc. (Security Code: 4396)
August 9, 2023

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

Company Profile
Company name

System Support Inc. (STS)

Location

9F Rifare, 1-5-2 Honmachi, Kanazawa-shi, Ishikawa Prefecture

Founding

January 1980

Listed market

Tokyo Stock Exchange Prime Market (security code: 4396)

Capital

723 million yen

Net sales

19,267 million yen (FY2023/6, consolidated)

Representative

Ryoji Koshimizu, Representative Director

Number of
employees

1,348 (as of June 30, 2023, consolidated)

OfficesTokyo, Nagoya, Osaka, and Kanazawa (headquarters)

Business outline■Cloud Integration BusinessTechnical support for migration and use of cloud services (ServiceNow,
Microsoft Azure, AWS, Google Cloud, etc.) and resale of licenses, etc.

■System Integration Business

84% of employees
are engineers
Kanazawa
271

Tokyo 698

Nagoya 173
Osaka 194

Overseas (U.S. & Canada):
12

Number of employees by region(as of June 30, 2023, consolidated)

Technical support for the introduction and use of ERP packages, constructionof infrastructure such as Oracle database, and IT system consulting, design, development, operation, and maintenance■Outsourcing Business

Our Group’s private cloud and other data center services, data analysis and input, and near-shore system operation andmaintenance■Product Business

Development and sale of products (software) by Our Group, and customization according to user companies’
applications■Overseas Business© 2023 System Support Inc.

Overseas system integration, outsourcing of payroll and accounting services, recruitment services, and media
management

2Company Profile – Net Sales Trends and History(1 million yen)Entered a Celonis Partner Program Agreement with CELONIS K.K.
Entered a Subcontractor Agreement with Automation Anywhere, Inc.
Entered a Google Cloud & Google for Education Commercial Partner Program Agreement with Google Cloud Japan G.K.

18,00016,00014,000Received Microsoft Cloud Platform Gold Competency certification

12,000Received Microsoft Cloud Platform Silver Competency certification
Entered a PartnerNow Master Terms with ServiceNow Nederland B.V.

10,000Entered an APN Consulting Partner contract with Amazon Japan K.K.

8,000Entered a SAP Service Partner contract with SAP Japan Co., Ltd.

6,000
4,000

Entered an Oracle EBS Technical Partner contract with Oracle
Corporation Japan

2,000

1980/121982/12'80/12 '82/12 1984/6'84/6 1986/6'86/6 1988/6'88/6 1990/6'90/6 1992/6'92/6 1994/6'94/6 1996/6'96/6 1998/6'98/6 2000/6'00/6 2002/6'02/6 2004/6'04/6 2006/6'06/6 2008/6'08/6 2010/6'10/6 2012/6'12/6 2014/6'14/6 2016/6'16/6 2018/6'18/6 2020/6'20/6 2022/6'22/6●Established System Support Inc. in Kanazawa City, Ishikawa Prefecture●Listed on the Tokyo Stock Exchange
Mothers Index●eNet Solutions Co., Ltd. financed and founded●Nagoya Office opened●Tokyo Office opened●Osaka Office opened0●Listed on the First Section of theTokyo Stock Exchange●Moved to TSE Prime●Acquired shares of T4C Co., Ltd., andmade it a subsidiary●STS Medic Inc. financed and founded●Acquired shares of Across Solutions, Inc. and made it a subsidiary●STS Innovation, Inc. financed and founded in California, USA●STS Innovation Canada, Inc. financed andfounded in Vancouver, Canada© 2023 System Support Inc.

* Net sales are consolidated from FY2016/6, and unconsolidated before that.

3

Summary of Financial Results of FY2023/6 and Earning Forecast of FY2024/6
Contents
1．Financial highlights
2．Net sales and income (consolidated)
3．Forecast for full year earning of FY2024/6 (consolidated)
4. Net sales and income by segment (consolidated)© 2023 System Support Inc.

4

Financial Highlights of FY2023/6
Unit: 1 million yen

FY2023/6
Net sales
Operating profit
Current net profit

Difference(Period over period)

Percentage change(Period over period)

19,267

3,068+18.9%

1,456
1,009

260
224

+21.7%+28.5%

 Net sales were strong in all businesses, led by the cloud
integration business.

Increase in profit and profit margin due to increase in net sales
and improvement in cost ratio© 2023 System Support Inc.

5

Consolidated Net Sales and Income of FY2023/6
Unit: 1 million yen

FY2021/6

FY2022/6

FY2023/6

Net sales

14,431

16,19819,267Gross profit

3,742(25.9%)

4,336(26.8%)

5,227

Operating profit

931（6.5%)

1,196（7.4%)

Current profit

954（6.6%)

1,190

Current net profit

674（4.7%)

785

Difference(Period overperiod)Percentagechange(Period overperiod)3,068+18.9%(27.1%)

890+20.5%

1,456（7.6%)

260+21.7%（7.3%)

1,465（7.6%)

275+23.1%（4.9%)

1,009（5.2%)

224+28.5%*Profit ratio in (■ Composition of net sales by segment*1
0.9%
3.6%
9.2%
27.6%

Cloud integration

Overseas5.0%■ Changes in investment-related expenses

Cloud integration

13.1%

335

14.0%
14.5%

Outsourcing

54.3%

Product
Overseas200■ Research and development expenses

2.1%

2.1%

2.0% expenses■ Training■ Recruitment-related expenses

1.0%― Percentage of net sales

100*1 Net sales by segment are sales to external customers.

Unit: 4.0%
1 million yen

3.0%

300

0
© 2023 System Support Inc.

407

System integration

System integration
Product

500
400

4.1%

Outsourcing

58.7%■ Composition of segment profit*2)

FY2022/6

FY2023/6

0.0%*2 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

6Forecast for Full Year Earning of FY2024/6 (Consolidated)
Unit: 1 million yen

FY2022/6

Net sales

16,198
1,196

Current
profit1,190

Current net
profit785

Annual dividends

OperatingprofitInterimdividends
Year-end
dividends

12円
13円

FY2023/6

19,267

FY2024/6(Forecast)

21,784(Period overperiod)＋13.1%＋21.0%

1,465

1,755

+19.8%

1,009

1,167

+15.6%

15円
17円

18円
18円

Unit: 1 million yen

25,000

1,763

1,456

■ Net sales/operating profit (consolidated)

Percentagechange19,26720,00015,00011,762

10,0005,000
0FY2019/6

Total© 2023 System Support Inc.

32円

36円

14,431

1,456

1500
1000

FY2020/6

FY2021/6

FY2022/6

FY2023/6

Operating profit

FY2024/6（Forecast）

-

25
13
10
FY2020/6

0

Unit: Yen

36

32

FY2019/6

2500

1,763 2000

1,196

■ Dividends*

-

3000

500
Net sales-

16,198

931

754

529

1.5

25円

13,376

21,78421
FY2021/6

Interim dividends

18

17

12

15

18

FY2022/6

FY2023/6

FY2024/6（Forecast）

Year-end dividends* Our Company conducted a 2-for-1 stock split of shares of common stock on June 1, 2020, and the figures for FY2019/6 in this graph have been retroactively adjusted.

7

Consolidated Net Sales and Income by Segment of FY2023/6
9.2%

Cloud Integration Business•

27.6%
Composition of net sales
by segment(FY2023/6)

Driven by DX, cloud-related services performed well, with particularly strong growth in AWS,
Google Cloud, and Oracle Cloud Infrastructure.
Resale of AWS and Microsoft Azure widen owing to higher per-customer usage fees andweaker yen
Expansion of cloud infrastructure migration and use support, including resale, affected grossprofit margin

•
•
6,000
5,000

■Net sales*1
57.0％ increase

3,000
2,000
1,000
0

3,388

71

228
409

1,748

1,150

Others1,200

Google Cloud

1,000

Microsoft Azure

800

AWS

600

ServiceNow
1,527

FY2022/6© 2023 System Support Inc.

1,495

1,400

662

1,857

400

FY2023/6

981

Technical support for migration
and use of cloud services(ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) andresale of licenses, etc.

■Operating profit/profit ratio(Segment profit/profit ratio*3)

70.0% 900
46.6％ increase
800
60.0%
700
50.0% 600
554

29.0%

28.1%

FY2022/6

Gross Profit

FY2023/6

812

Gross Profit ratio*1 Net sales are sales to external customers.

16.4%

40.0%
35.0%
30.0%
25.0%

15.3%

15.0%
10.0%
5.0%

0

FY2022/6

Segment Profit*2 Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.
*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

45.0%

20.0%

30.0% 400
300
20.0%
200
10.0%
100
0.0%

50.0%

Unit: 1 million yen

40.0% 500

200
0

Cloud Integration
Business

80.0%
1,000

1,600
52.4％ increase

564

4,000

Unit: 1 million yen

1,800

487

58.7%

■ Gross profit/profit ratio*2

Unit: 1 million yen

5,319

0.9%
3.6%

FY2023/6

0.0%

Segment Profit ratio

8Cloud Integration Business Details (1) Cloud Platform Migration and Usage Support
Cloud platform migration (Microsoft Azure, AWS, Google Cloud) and usage support

Our strength is in the area of using databases and data analysis platforms in the cloud, thanks to ourtechnological expertise in the database field, which we have cultivated over many years.
■Net sales for cloud platform
migration, usage support, etc.
Unit: 1 million yen

1Q
4,000
3,500

Up 86.1％

Period over period

3,000

2Q

3Q

4Q
3,462
1,046

2,500
2,000

1,860

1,500

586

1,000

424

500

490

0

359
*1
FY2022/6© 2023 System Support Inc.

944
850
621
FY2023/6■Flow of cloud platform migration and usage support
Our main services
Before cloud migration
Proposal and design

After cloud migration

Migration and usage support(creation of cloud environment)(Delivery)

Operation and monitoring
Resale■ Changes in resale net sales in net sales for
Reselling cloud accounts (pay- cloud platform migration, usage support, etc.
as-you-go or bulk purchases
Unit: 1 million yen
based on data usage) from Our
1,648
Up 66.3％
Company to customers to
Period over period
4Q
1,500
420
ensure stock revenue
991
3Q
424
1,000
773
759
273
2Q
153
216
216
470
141
500
212
1Q
0

273
191

181
163

287
214

333

*2

FY2020/6 FY2021/6 FY2022/6 FY2023/6*1 There have been minor revisions to the net sales figures for each quarter of the fiscal year ended June 30, 2022, compared with the figures shown in the supplementary materials for the 1Q trough 3Q of the fiscal year ended
June 30, 2023.
*2 There have been minor revisions to the sales figures for each quarter of the fiscal year ended June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of the fiscal year ending June 30, 2023.

9

Cloud Integration Business Details (2) Support for the Introduction and Use of ServiceNow
Support for the introduction and use of ServiceNow*, a cloud service for businesses from the U.S.

*ServiceNow is a cloud service provided by ServiceNow, Inc. to standardize IT service management and other operations.
ServiceNow, Inc. is ranked No. 1 in FORTUNE Future 50 (2020), with a market capitalization of approximately US$110 billion in July 2023.

■ Net sales of ServiceNow
2,500
2,000

1Q

3Q

4Q

Net Sales:
Up 21.5％
Period over period

1,857

1,527

473

1,500

387

1,000

Unit: 1 million yen■ Number of our ServiceNow
certified build certifications Unit: Case
(1 billion USD)

Eligible certifications
are changed since
May 2023

461
488

410

434

312
※

FY2022/6

37

FY2023/6*There have been minor revisions to the sales figures for each quarter of the fiscal year ended
June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of
the fiscal year ending June 30, 2023, but the full-year total figures remain unchanged.
© 2023 System Support Inc.

144
69

June 30,

December

2020

31, 2020

176

*4

6
320

Gross profit ratio:
FY2022/6 44.0%
FY2023/6 44.5%

Net sales of ServiceNow, Inc.

8

416

500
0

2Q

• Our Company actively invests in the development of engineers to create a system capable ofproviding stable service, and captures demand as the number of companies that have adopted
ServiceNow in Japan increases.
• Our Company ranked Third in terms of ServiceNow certified build certifications as of the end of
May 2, 2023*1.
• First domestic company certified as a Bronze Services Partner in 2017*2; currently the highest
ranking Elite Partner.

187

4
2

84

0
June 30, January 15, June 30, September
2021

2022

2022

30, 2022

May 2,’15/12 ’16/12 ’17/12 ’18/12 ’19/12 ’20/12 ’21/12 ’22/12

2023＊1 From the ServiceNow Japan website (Eligible certifications: CTA, CSA, CAD, CAS-PA, CIS, Developer Core Skills, Suite (Pro))

From the ServiceNow partner program of ServiceNow, Inc. in the U.S.
Eligible certifications: CIS, CAD, CAS, CTA until the end of September 2022, CTA, CSA, CAD, CAS-PA, CIS, Developer Core Skills, Suite(Pro) from May 2023
10
＊4 Prepared by Our Company from ServiceNow, Inc. financial results＊2＊3Consolidated Net Sales and Income by Segment of FY2023/6
System Integration BusinessTechnical support for the introduction
and use of ERP packages, constructionof infrastructure such as Oracle
database, and IT system consulting,design, development, operation, andmaintenanceSystem Integration Business•••

SAP ERP faring well.
Database related services decreased due to migration to cloud
Increase in large-scale projects with end users contributed to the increasein sales of IT system development■Net sales*1

12,000

Unit: 1 million yen

11,315
10,49810,000
8,000

5,673

6,315

6,000
4,000
2,000
0

1,929

1,804

2,895

3,195

FY2022/6

FY2023/6© 2023 System Support Inc.

3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100
IT system development2,000
1,900
1,800
1,700
1,600
1,500
1,400
Database
1,300
1,200
1,100
1,000
900
800
ERP
700
600
500
400
300
200
100
0

*1Net sales are sales to external customers.

9.7% increase

Unit: 1 million yen

2,695
2,456

23.4%

23.8%

400

50.0%
350
45.0%
300
40.0%

Gross profit

FY2023/6

0.0% 0Gross profit ratio

10.0%

Unit: 1 million yen

20.5% decrease
273
217

2.6%

FY2022/6

Segment profit*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

Composition of net sales
by segment(FY2023/6)■Operating profit/profit ratio(Segment profit/profit ratio*3)

35.0%
250
30.0%
200
25.0%
150
20.0%

15.0%
100
10.0%
50
5.0%
FY2022/6

27.6%

58.7%

■Gross profit/profit ratio*2

7.8% increase

9.2%

0.9%
3.6%

1.9%

FY2023/6

9.0%
8.0%

Segment
7.0% profit(operating profit)
6.0%
decreased
due toan increase in
5.0%
common SG&A
expenses
4.0% such ashead office
3.0%
expenses.

2.0%
1.0%
0.0%

Segment profit ratio

11Consolidated Net Sales and Income by Segment of FY2023/6

Outsourcing Business•

Increase in monthly subscription fees and other stock sales andincrease in subscription fees per company due to expansion ofcustomer use business contributed to increase in data center related
sales.

2,000 ■Net sales*1

14.9% increase
1,800
1,600

1,541

1,400

256

Unit: 1 million yen

1,772

analysis, input,■Datanear-shore, etc. 400

800
1,285

1,444

■Data center

Unit: 1 million yen

559

482
31.3%

31.5%

300

0
FY2022/6© 2023 System Support Inc.

FY2023/6

30.0%
25.0%
20.0%
15.0%
10.0%

100

200

40.0%
35.0%

200

400

45.0%

5.0%
FY2022/6

Gross profit*1Net sales are sales to external customers.

FY2023/6

0.0%

Gross profit ratio

27.6%

Composition of net sales
by segment(FY2023/6)

58.7%■Operating profit/profit ratio(Segment profit/profit ratio*3)

50.0%

15.8% increase
600
500

1,000

0

700

327

1,200

600

■Gross profit/profit ratio*2

0.9%
3.6%
9.2%

Outsourcing Business
Our Group’s private cloud andother data center services,
data analysis and input, andnear-shore system operationand maintenance■Changes in stock sales in net
sales of Outsourcing Business
Unit: 1 million yen

Unit: 1 million yen

300

50.0%

11.0% increase
250
200

188

45.0%
209

35.0%

12.2%

FY2022/6

Segment profit

11.8%

FY2023/6

1,061
274

3Q

1,157
302
293

4Q
1,294
338
326

267

15.0%

261

283

258

278

309

FY2021/6

FY2022/6

FY2023/6

10.0%
5.0%
0.0%

319

Segment profit ratio*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

2Q

25.0%
20.0%

100

0

40.0%
30.0%

150

50

1Q

12

Consolidated Net Sales and Income by Segment of FY2023/6
Product Business
Development and sale ofproducts (software) by Our
Group, and customizationaccording to user
companies’ applications

Product Business••

Strong sales performance of Tateyakusha and SHIFTEE.
Sales decreased owing to a decrease in equipment sales associated with the introductionof Shugyoyakusha.
• Improved profit margin on stock sales such as monthly subscription fees and no significant
increase in selling, general and administrative expenses contributed to higher segment
profit ratio.
■Operating profit/profit ratio■Net sales*1■Gross profit/profit ratio*2
800(Segment profit/profit ratio*3)
Unit: 1 million yen
Unit: 1 million150.0%
yen
3.4% increase
600
Unit: 1 million yen
700

670

600

98

500

75
71

693

500

70

400

400
300

231

233

0

OthersMOS
194

FY2022/6© 2023 System Support Inc.

215

Tateyakusha
FY2023/6

399

429

70.0%
59.6%

61.9%

50.0%
30.0%

100
0

130.0% 8.2% increase200
181
110.0%
90.0%

300

Shugyoyakusha
200
SHIFTEE

200
100

7.4% increase

95

78

250

10.0%
FY2022/6 FY2023/6

Gross profit-10.0%

Gross profit ratio*1Net sales are sales to external customers.

196

0

Unit: 1 million yen

90.0%

1Q

80.0%

50.0%
40.0%
28.3%

30.0%
20.0%
10.0%

FY2022/6 FY2023/6

Segment profit

Composition of net sales
by segment(FY2023/6)■ Changes in stock sales in
net sales of Product Business

70.0%

100

27.6%

58.7%

60.0%

27.0%

9.2%

100.0%

150

50

0.9%
3.6%

0.0%

301
77
76

2Q

3Q

4Q
396

350

102

89

98

89

73

89

100

74

82

95

FY2021/6

FY2022/6

FY2023/6

Segment profit ratio*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

13

Consolidated Net Sales and Income by Segment of FY2023/6

Overseas Business••

Strong performance in outsourcing operations in North America.
Net sales and profit increased due to the impact of currency translation.

200■Net sales*1

180
160
140

1.2
Unit: 1 million yen

166

68.3％ increase

0.8

120
98

100

0.6

80

0.4

60
40

0.2

20
0

1

FY2022/6© 2023 System Support Inc.

FY2023/6

0*1Net sales are sales to external customers.

Overseas Business
Overseas system integration,
outsourcing of payroll andaccounting services, recruitment
services, and media management8880

120.0%

Unit: 1 million yen

100.0% 70

60

80.0%

50
40
30

51

52.4%

53.3%

20
0

FY2022/6

Gross profit

FY2023/6

90.0%

60
75.0％
increase

35

40.0% 30

35.7%

0.0%

Gross profit ratio

61

20

40.0%
37.1%

30.0%
20.0%
10.0%

FY2022/6

Segment profit

FY2023/6

0.0%

Segment profit ratio*2Gross profit by segment is the amount before adjustment for gross profit in the consolidated financial statements.

*3 Segment profit is the amount before adjustment for operating profit in the consolidated financial statements.

70.0%
50.0%

10
0

80.0%
60.0%

50

60.0% 40

20.0%

10

100.0%

80

71.4％ increase70

Composition of net sales
by segment(FY2023/6)■Operating profit/profit ratio(Segment profit/profit ratio*3)

Unit: 1 million yen

90

27.6%

58.7%

■Gross profit/profit ratio*2
100

9.2%

0.9%
3.6%

14

Reference Materials
Contents
1. Human resources strategy
2. Growth strategy by segment
3. Strengthening ESG management
4. Our Company topics© 2023 System Support Inc.

15

Human Resources Strategy
Our Group regards human resources as a source of business growth, and is actively
engaged in the expansion of its education system and recruitment activities.

Number of employees (consolidated)
Unit: People

1400

1,348

1200
1000
800
600
400

956

1,039

1,126

18.0%
16.0%
14.0%
12.0%

799

876

8.1%

7.7%

1,039

949

1,134

5.9%

8.0%

4.9%

5.4%

4.0%
2.0%

157

163

177

194

214

FY2019/6

FY2020/6

FY2021/6

FY2022/6

FY2023/6

Sales, management, etc.

© 2023 System Support Inc.

10.0%
6.0%

200
0

1,233

Engineers

Unit: People

20.0%
FY2021/6

FY2022/6

FY2023/6

FY2024/6（Planned）

New
graduate
recruitment

60

70

85

111

Mid-career
recruitment

89

83

100

94

Retirement
rate

5.9%

4.9%

5.4%

-

0.0%

Retirement rate

16

Growth Strategy by Segment (Cloud Integration Business)
Business outline: Technical support for migration and use of cloud services (ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) and resale of licenses, etc. (Resale)
1

Expansion of the corresponding area

Developing cloud-related engineers expand orders andmaintain and improve a virtuous cycle of further growthof Our Company business through market growth

Expanding investment to quickly develop new overseas cloud services in
the Japanese market and expanding the range of supported services

2

Expansion of existing businesses
Focusing on AWS, Microsoft Azure, Google Cloud, and ServiceNow, which
are the mainstays of this business, Our Company will strengthen thedevelopment of proprietary services to further enhance customer
convenience and improve the productivity of Our Group, differentiating itself
from other cloud integrators.

Receives customer referrals
from global IT vendors andincreases orders

Background: cloud market growth■Cloud platform services (IaaS/PaaS) market trends and forecasts*(100 million yen)

FY2020 to FY2026 (Forecast)
CAGR

20.2%

10,50013,00015,60018,70022,40026,80031,700Engineertraining andknow-how
accumulation

Expansionof ordersStrengthening
relationships
with global IT
vendors

Strengthens relationships with global
IT vendors by gaining technicalcertifications and recognition

Actively invests in training cloud-related engineers
2020© 2023 System Support Inc.

2021

2022

2023
(Forecast)

2024(Forecast)

2025(Forecast)

2026(Forecast)

Note 1: Business operator's net sales base Note 2: Forecasts for 2023 and subsequent years
Note 3: Market size does not include Software as a Service (SaaS)* Source: “Survey on the Cloud Platform (IaaS/PaaS) Services Market (2023),” by Yano Research Institute,Inc., announced on April 25, 2023

17

Growth Strategy by Segment (Cloud Integration Business)■Net sales of this business and ratio of stock sales *1
against net sales(1 million yen)60%

12,000
8,000
4,000
0

29%

40%

31%

Net Sales

5,319

3,388

20%

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6(Planned) (Planned) (Planned)■Changes in number of customers
in this business
146

150

158

172

189

1Q of
2Q of
3Q of
4Q of
1Q of
FY2022/6 FY2022/6 FY2022/6 FY2022/6 2023/6

207

Ratio of stock
sales

0%

Unit: Company

204

230

■History of major certification and awards in this business
Microsoft Azure• Obtained Gold Cloud Platform competency certification
Recognized as a partner with an outstanding track record in Microsoft Azure
deployments
・Obtained Advanced Specialization*2
Obtained highly specialized partner certifications in specific solution areas
・Won the MVP Award five times in a row
Received consecutive awards in the field of data platforms since 2017*3
・Received Microsoft Top Partner Engineer Award
Received the Award in Azure Field in 2023 *3
AWS・Obtained Oracle competency in the AWS competency program*4
・Received APN partner award “Rising Star of the Year 2014”
Google Cloud・Obtained data analysis specialization with Partner Advantage program
Oracle・Received 14 consecutive awards for Oracle Database*5
Received awards including Oracle Certification Award 2020 from Oracle Japan

2Q of2023/6

3Q of2023/6

4Q of2023/6*1*2

Percentage of resale net sales in the Cloud Integration Business
Acquired in the “Migrating Windows Server and SQL Server to Microsoft Azure” field*3
Awarded by Our Company employees*4*5© 2023 System Support Inc.

Program to identify, validate, and recommend AWS Partner Network (APN) advanced and premium tier partners
that have demonstrated technical expertise and customer success for AWS
Awards from 2007 to 202018

Growth Strategy by Segment (System Integration Business)
Business outline: Technical support for the introduction and use of ERP packages, construction of
infrastructure such as Oracle database, and IT system consulting, design, development,
operation, and maintenance

Growthstrategy

Expansion of existing
businesses

Steadily recruit and train engineers
and secure orders for ERP-related,database-related, RPA-related, andother IT system development, which
are the mainstay of this business.

Strengthening project
management

Continue project management fromthe perspective of quality, duration,
cost, and risk control to curb theoccurrence of unprofitable projects
and improve service quality© 2023 System Support Inc.

Strengthening relationshipwith customers

Our Company engineers work closely withcustomers such as user companies toexpand projects and continue receiving
orders from existing customers■Efforts to secure stable orders

User
company

SIer

Our Group

Percentage of directtransactions: 67.1%*1
Customer repeat rate: 78.5%*2

Build close relationships with user
companies to expand projects andcontinue receiving orders*1 Percentage of our net sales for FY2023/6. *2 Percentage of customers with sales recorded by Our Company in FY2021/6 who continued to record sales in FY2022/6

19

Growth Strategy by Segment (Outsourcing Business)
Business outline: Our Group’s private cloud and other data center services, data analysis and input, and nearshore system operation and maintenance■Features of Our Group’s data center•

Growthstrategy
Data center expansion

Target customers different from major
cloud users, and use AI-related and otherunique services as a hook tool to build up
the numbers of customers and subscription
fees per customer.

Expansion of ERP nearshore

With the need for maintenance of ERP
products, centered on SAP ERP,
expected to increase toward 2027, Our
Company is strengthening its system
by training near-shore personnel in the
Kanazawa area.

••

Our Group’s data centers are located in Kanazawa and Tokyo,
and customer companies use servers at the data centers.
The revenue structure, based on long-term continuous use,
not temporary use, builds up stock-type sales as the numberof customers increases and their business expands.
It can also be used as a BCP measure by setting up a data
center in Kanazawa City, where earthquakes rarely occur*.

■Net sales of Outsourcing Business and ratio of stock sales(annual and monthly data center fees) against net sales(1 million yen)

2,500

Continuous data center
facility expansion

Gradually expand facilities according tooperating conditions to both improve quality
and ensure profitability.

2,000
1,500
1,000

75%

73%

1,541 1,772

80%
60%
40%
20%

500
0

100%

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6(Planned) (Planned) (Planned)

0%

Net Sales
Ratio of stocksales* Sources: Japan Meteorological Agency seismic intensity database Number of earthquakes of intensity 1 or greater observed in 2021: 3 (maximum intensity 2)© 2023 System Support Inc.

20

Growth Strategy by Segment (Product Business)
Business outline: Development, sales, and customization of products (software) by Our Group
Mainly cloud-based products (monthly billing system); sales expansion throughdistributors in addition to direct sales■Our Group’s main products

Growthstrategy

Customer expansion

In order to increase new customers, Our Company
will expand sales channels for agents andstrengthen advertising and publicity. In addition,
Our Company will aim to increase the number ofusers by expanding the number of divisions within
existing customers.
On a product basis, we plan to expand sales of
newly launched Smart Rabbit (food inventory
forecast system for restaurants), Tateyakusha, andSHIFTEE.

Maintaining and improving stablehigh profitability

By increasing non-customized sales, we will
strengthen the structure in which increased
sales lead to higher profits. In addition, we
will accumulate stock sales such as monthly
usage fees to ensure stable high profit
margins.
* As of June 30, 2023 (cumulative)© 2023 System Support Inc.

Construction information management
system for the building industry

Mobile order and supply system

712 companies (including OEMs)*

777 companies*

Cloud-based shift management
systemAttendance and work management
system118 companies*

182 companies*■Net sales of Product Business and ratio of stock sales(monthly usage fees, etc.) against net sales(1 million yen)

100%

1,000

Functional
enhancement

Continue to enhance existingproducts to reduce lead time until
introduction and improve
competitiveness against othercompanies’ products.

800

670

80%

693

60%

600
400

52%

57%

40%
20%

200
0

FY2022/6

FY2023/6

FY2024/6(Planned)

FY2025/6(Planned)

FY2026/6(Planned)0%

Net Sales
Ratio of stock
sales

21

Growth Strategy by Segment (Overseas Business)
Business overview: System integration overseas (in the U.S. and Canada), outsourcing of payroll andaccounting services, recruitment services, and media management

Growthstrategy

Our subsidiary
STS Innovation Canada(Vancouver, Canada)

Support forcompanies entering
North America
Expansion of
cutting-edge
services in Japan
Collecting cutting-edge IT
information to develop
promising businesses inJapan© 2023 System Support Inc.

Support for IT infrastructure,
recruitment, and marketing ofJapanese companies entering
North America

Strengthening
outsourcing services

Strengthen remote monitoring
services for Japanese companies
using the time difference between
Japan and North America andoutsourcing services for Japanesecompanies in the U.S.

Support for companies entering
North America and remotemonitoring service using timedifference★
★

Outsourcing
services forJapanesecompanies in
the U.S.
Our subsidiary
STS Innovation(Silicon Valley,
U.S.A.)

22

Medium-Term Theme – Strengthening ESG Management
 Addressing social issues through ESG management based on the management philosophy.
Efforts to date
Environment

E

Advanced
Customer
Service

Contributing
to Society• The Sustainability Committee was establishedto plan and study sustainability measures.
• Implement CO2 emission reduction activities
using renewable energy.
• Start of information disclosure on sustainability

S• Set CO2 emission targets and implement
further reduction measures• Expand a disclosure system in line with the
TCFD, and respond to CDP and improvescore• Development of IT engineers• Realization of diverse human resources
employment and work styles• Contribution to local communities andlocal administration• Expanding the activities of Microsoft BaseKanazawa with the aim of expanding local
businesses and revitalizing the economy
through development of DX humanresources.

• Establishment of various committees andimprovement of systems to improve corporate
governance• The Board of Directors is composed tostrengthen corporate governance and ensure
diversity (three independent outside directors
and two women out of eight directors).

• Aim to improve the response and quality of
the revised Corporate Governance Code.
• Continue to work to strengthen corporate
governance and ensure diversity in thecomposition of the Board of Directors.

Society

Management
philosophy

Efforts to strengthen

Sharing Value
GovernanceG© 2023 System Support Inc.

23

Our Company Topics for FY2023/6 (July 2022 to June 2023)
Date

Subject

July 8, 2022

Number of Google Cloud certifications held by our employees exceeds 120.
Focusing on training engineers in data analysis, a field in which Google Cloud excels.

July 8, 2022

Our employees have won the Microsoft MVP award (Data Platform) five times in a row.

July 12, 2022

System Support moved Microsoft Base Kanazawa in front of Kanazawa Station.
Started offering free DX education for the public, and set up co-working space with private booths.

July 25, 2022

Conducted an online seminar (Microsoft Base Kanazawa New Facility Opening Ceremony and Opening Memorial Webinar).

August 1, 2022

System Support assisted in the migration of the Nikkei ID platform from on-premise to AWS.
Succeeded in a secure migration of the Nikkei ID, which is used by 10 million members for web service logins, with short downtime andno complete shutdown.

August 30, 2022

Microsoft Base Kanazawa is certified as a subsidized facility for the “Project to Expand the Use of Private Facilities Utilizing Trees in
Ishikawa.”

September 20, 2022

Received Oracle Certification Award 2022.

October 3, 2022

System Support provides DX training at Microsoft Base Kanazawa for young employees of Ishikawa Prefectural Police.
They learned basic knowledge of DX and simple web application development.

October 4, 2022

System Support obtained data analysis specialization with Google Cloud Partner Advantage program.
Proved our proficiency and successful track record in data analysis.

October 6, 2022

System Support developed three solution packages that leverage Google Cloud services and launched them on October 6.
Google Cloud services are packaged and can be started in a short period of time.

October 21, 2022

System Support held “HoloWeen,” a Halloween event where visitors can experience cutting-edge MR (Mixed Reality) technology.
Microsoft HoloLens 2 utilized at Microsoft Base Kanazawa.

© 2023 System Support Inc.

24

Our Company Topics for FY2023/6 (July 2022 to June 2023)
Date

Subject

November 24, 2022

Eight-Japan Engineering Consultants Inc., an integrated construction consultant, adopts Celonis as its DX platform to evolve its entire
value chain.

December 13, 2022

System Support held "Ho-Ho-HoloLens," a Christmas event where visitors can experience cutting-edge MR (Mixed Reality) technology.
Microsoft HoloLens 2 utilized at Microsoft Base Kanazawa.

December 22, 2022

System Support selected by Google Cloud as AlloyDB launch partner.

January 10, 2023

System Support starts to provide “Introduction Support Service for Azure+OCI.”
We help customers who wish to use Oracle Database on Microsoft Azure to build a high-performance, cost-effective multi-cloudenvironment.

January 12, 2023

System Support introduces a “remote work system outside commuting area” with the aim of securing human resources by improving
employees’ work environment.

April 12, 2023

System Support was recognized as Silver Partner by Celonis Japan, one of world’s largest providers and a pioneer in system support andprocess mining.

April 20, 2023

System Support won the Dbvisit Partner of the Year Award 2022.

April 24, 2023

Our employees were selected as 2023 Japan AWS All Certifications Engineers.

May 11, 2023

System Support started providing Introduction Support Service for “Azure OpenAI Service.”
Provision of consistent support for ChatGPT, GPT-3.5, and Codex consulting, development, operation, and maintenanceMay 15, 2023

System support was certified as a Platinum Business Partner by RPA software provider, Automation Anywhere.

May 26, 2023

System Support started to provide Introduction Support Service for Microsoft Teams Rooms which support hybrid meetings.
As a first project, we introduced it at Himawari Home Corporation, and provided full support until the start of use.

© 2023 System Support Inc.

25

Disclaimer and Forward Looking Statements
This document has been prepared by System Support Inc. (hereinafter referred to as “Our

Company”) for the purpose of providing investors with an understanding of the current
status of Our Company.
The contents of this document are prepared based on economic, social, and otherconditions generally recognized as prevailing at the time this report was prepared, as wellas certain assumptions that we have judged to be reasonable, but may be subject to change
without notice due to changes in the business environment or other reasons.
The materials and information provided in this presentation include so-called “forward
looking statements.” These statements are based on current expectations, projections, andassumptions with risks and involve uncertainties that could cause results to differ materiallyfrom those in the statements.
Such risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions such as interest rate and currency
exchange rate fluctuations.
For further information, please contact:
Investor Relations, Administrative Planning Department, System Support Inc.
TEL: 076-265-5151 E-mail: ir@sts-inc.co.jp© 2023 System Support Inc.

26

Thank you