Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

July 27, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Under Japanese GAAP)
Company name:
Systena Corporation
Listing:
Tokyo Stock Exchange
Securities code:
2317
URL:
https://www.systena.co.jp/
Representative:
Kenji Miura, Representative Director and President
Inquiries:
Hiroshi Kotani, Director
Telephone:+81-3-6367-3840
Scheduled date to file quarterly securities report:
August 8, 2023
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30,2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2023

18,734

6.3

1,909

4.8

1,781

(5.2)

1,220

(5.0)

June 30, 2022

17,627

15.0

1,821

3.8

1,879

10.4

1,285

12.3

Note: Comprehensive income

For the three months ended June 30, 2023:
For the three months ended June 30, 2022:

Basic earnings
per share
Three months ended¥1,352 million¥1,348 million[0.3%][17.0%]

Diluted earnings
per share
Yen

Yen

June 30, 2023

3.15

–

June 30, 2022

3.32

–

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

June 30, 2023

46,64434,446

72.9

87.71

March 31, 2023

48,87934,650

69.9

88.19

Reference:

EquityAs of June 30, 2023:
As of March 31, 2023:¥33,981 million¥34,168 million%

Yen2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024–

Fiscal year-end

Total

Yen

Yen

4.00

–

4.00

8.00

5.00

–

5.00

10.00

–

Fiscal year ending
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March
31, 2024)
Net sales
Millionsof yenFiscal year ending

Operating profit%

Millionsof yen%(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Ordinary profit
owners of parent
per share
Millionsof yen80,386
7.9
10,6107.8
10,644
March 31, 2024
Note: Revisions to the earnings forecasts most recently announced: None%

Millionsof yen

%

Yen

6.9

7,233

(1.1)

18.67

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): 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 restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(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, 2023

450,880,000 shares

As of March 31, 2023

450,880,000 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

63,439,188 shares

As of March 31, 2023

63,439,188 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2023

387,440,812 shares

Three months ended June 30, 2022

387,396,212 shares

Note: The Company has introduced a stock compensation plan, and in calculating the number of treasury shares of commonshares at the end of the period and the average number of shares outstanding during the period, the number of treasury
shares includes shares of the Company held by Japan Custody Bank, Ltd. (the Trust Account) as trust assets for the “Trustfor Granting Shares to Directors” and the “Trust for Granting Shares to Executive Officers.” The number of treasury shares
held by the Trust Account included in the number of treasury shares at the end of the period ended June 30, 2023 and March
31, 2023 were 1,567,700 shares, and the number of treasury shares held by the Trust Account excluded from the calculationof the average number of shares outstanding during the three months ended June 30, 2023 and three months ended June 30,
2022 is as follows: the average number of treasury shares of common shares held by the Trust Account for the three months
ended June 30, 2023 and three months ended June 30, 2022 were 1,567,700 shares and 1,622,086 shares, respectively.

* Quarterly financial results reports are exempt from quarterly review by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements in this material, including earnings forecasts, are based on information currently
available to the Company and on certain assumptions deemed reasonable. Actual results may differ significantly
due to various factors. For assumptions underlying the forecast and cautions regarding the use of earnings
forecasts, please refer to “1. Qualitative information on quarterly financial results, (3) Forward-looking
forecasts, such as consolidated earnings forecasts” on page 5 of the Attached Materials.

Attached Materials Table of Contents
1. Qualitative information on quarterly financial results.................................................................................... 2(1) Operating results for the period under review .......................................................................................... 2(2) Financial position.......................................................................................................................................... 5(3) Forward-looking forecasts, such as consolidated earnings forecasts ....................................................... 5
2. Quarterly consolidated financial statements .................................................................................................... 6(1) Quarterly consolidated balance sheet ......................................................................................................... 6(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
income ............................................................................................................................................................ 8
Quarterly consolidated statement of income (cumulative) ....................................................................... 8
Quarterly consolidated statement of comprehensive income (cumulative) ............................................. 9(3) Notes to the quarterly consolidated financial statements........................................................................ 10(Notes on premise of going concern)............................................................................................................ 10(Notes on substantial changes in amount of shareholder’s equity)............................................................... 10(Segment information, etc.) .......................................................................................................................... 10
3. Supplementary information ............................................................................................................................. 11(1) Production results ....................................................................................................................................... 11(2) Order results ............................................................................................................................................... 11(3) Sales results ................................................................................................................................................. 11-1-

1. Qualitative information on quarterly financial results
Matters discussed here that are not historical fact reflect judgments made as of the end of the quarter of the
fiscal year under review.
(1) Operating results for the period under review
During the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023), the Japanese economy was on a
gradual recovery trend, particularly individual consumption, as economic and social conditions returned tonormal following the COVID-19 pandemic. However, central banks in various countries are continuing with
monetary tightening to combat global inflation caused by surging resource and raw materials prices, and there
is increasing risk of a downturn in the overseas economy.
Given these conditions, the Group recognizes that improving productivity is a key issue in securing earnings
amid high inflation. In addition to focusing more on recurring revenue businesses, the Group is continuing to
expand businesses with high added value such as consulting operations and PMO projects aimed at promoting
DX in the software development business.
Furthermore, we will continue to invest proactively in human resources, improve wages and working
conditions, and pursue initiatives for the stable acquisition of excellent human resources.
In the Solution Design Business, the Group continued to focus on expansion in the in-vehicle, Internet
business, products, and DX fields, where significant growth is expected. Here, the Group worked to further
increase orders and improve profitability.
In the Framework Design Business, the Group deployed its system development expertise from the financial
sector to customers in the public and distribution/services sectors, and worked to increase orders in the businessapplication development and infrastructure (cloud) architecture operations.
In the IT Service Business, the Group focused on providing PMO services related to the introduction ofvarious tools and business process improvements in response to IT outsourcing demand from companies
creating new business models and companies working on reform of work styles.
In the Business Solution Business, the Group focused on service businesses, not product-oriented businesses,
and strove to further strengthen its recurring revenue businesses, centered on the subscription business andsystem development and support.
In the Cloud Business, which is responsible for promoting the subscription business model, the Group
expanded the functionality of its in-house products Canbus.(*) and Cloudstep(*) and actively offered a “DX
Design Lab” that supports DX promotion from project consulting.
As a result of the above, consolidated results for the first quarter of the fiscal year under review were net
sales of ¥18,734 million (up 6.3% year on year), operating profit of ¥1,909 million (up 4.8% year on year),ordinary profit of ¥1,781 million (down 5.2% year on year), and profit attributable to owners of parent of¥1,220 million (down 5.0% year on year).
(*) Canbus. and Cloudstep are Systena’s original services.
The following describes performance by segment. Note that net sales for each segment include inter-segment
net sales or transfers.
(i)Solution Design Business
The Solution Design Business is divided into five categories: in-vehicle, social infrastructure, internet
business, products, and DX services. In the first quarter, the Group worked to strengthen both cooperation
with our business partners and resource procurement. The Group also increased the number of personnel
in the overall Solution Design Business through aggressive hiring. While the Group is working to win
orders from clients with robust development motivation, development projects concluded for some of ourclients, and the focus has been on launching new projects. However, some unprofitable projects impacted
financial results, and net sales in the Solution Design Business were ¥5,223 million (down 1.9% year onyear), and operating profit was ¥364 million (down 47.1% year on year).

(In-Vehicle)
In the in-vehicle category, the importance of mobility software is increasing in the automobile industry,
and there is robust development demand for in-vehicle infotainment and integrated cockpit systems.
Using the Group’s technical capabilities in software development acquired in the mobile field, we arestrengthening our development system to meet the demand of Japanese finished vehicle manufacturers
and Tier-1 suppliers. New project launches are progressing, and going forward we will focus on
expanding mobility development orders received for next-generation applications.

-2-(Social Infrastructure)
In the social infrastructure category, which supports the mechanisms of society, including
telecommunications infrastructure, payment infrastructure, transportation infrastructure, power grids, andmore, and enriches people’s lives, the Group used our experiences in embedded systems and web design
developed in the in-vehicle and product fields to increase orders received related to power grids andaerospace. While continuing to focus on projects related to power grids and aerospace, the Group will
also promote expansion into local governments and the public sector.
(Internet Business)
In fields related to the Internet business category, such as Internet services and e-commerce, large-scale
development projects using 5G in the Internet services field concluded, and demand is also settling.
Meanwhile, the Group is receiving inquiries from companies looking to strengthen their services further
and is focusing on strengthening total solutions that can provide everything from planning, todevelopment and evaluation, to IT consulting and services.
Moreover, while there were unprofitable projects in this category, they are nearing conclusion.
(Products)
In the products category, which engages in development, including smartphones, home appliances, androbotics, the Group received numerous inquiries related to the keywords “AI” and “IoT,” strengths of theGroup. The Group’s one-stop support for the entire product lifecycle of not only product development andquality evaluation, but also environment construction and support, has been well received. The Group willcontinue to expand orders received while diversifying itself from competitors.
(DX Services)
In the DX service field, the Group has received many inquiries for system development with superior
flexibility and expandability such as the optimization of work processes and data use and operational
streamlining through AI and automation as demand increases for undertaking DX (the concept of
improving all aspects of life and business through permeation of information technologies). In addition,
the Group will continue to actively promote the development of its in-house services, such as Remo-oTe,
which utilizes the Group’s business experience and total solution strengths cultivated in various fields,
TimeTapps, a cloud attendance management system, and Palette.Link, a groupware that enhances thequality of relationships, as they have been receiving many inquiries.
(ii) Framework Design BusinessIn this business, the Group harnessed its track record in application development in the financial sector to
expand the scope of its offerings to customers in the public sector, distribution/services, and in social
infrastructure, leading to an increase in orders for system development projects.
In the financial sector, the Group provides core system development services for customers in thebanking industry and life and non-life insurance industries. In addition to long-term development work inareas such as contract management systems and accounts systems, the Group achieved greater orders byincreasing inquiries for DX projects such as migration of core systems to the cloud and host migration.
In the public sector, orders were received for new projects, primarily related to central government
ministries and agencies, and the respective business areas of system development, infrastructure
construction, and operation and maintenance remain firm. In the first quarter, orders received for projects
for local governments made progress, and the Group intends to further expand this area as one of thepillars of this business.
In addition, for general corporate clients, the Group is moving forward with proposals for technicalsupport services using low-code development tools and system rebuilding focused on migration. The
Group’s “laboratory system” for total system support, from proof of concept support in the system
planning stages to operations and maintenance after system development, has led to an increase in orders.
As a result, net sales in this business amounted to ¥1,619 million (up 13.9% year on year) and operating
profit was ¥351 million (up 47.5% year on year).
(iii) IT Service BusinessIn this business, which mainly operates a variety of IT-related outsourcing services, including system
operation and maintenance, helpdesk and user support services, and PMO, to respond to IT outsourcing
demand from companies that are creating new business models and working on work style reform, theGroup focused on provision of PMO services to provide project management support for implementing avariety of tools including cloud solutions and improving business processes.

-3-

In the software testing services business, the Group worked to increase orders and improve profitability
based on its service track record provided in each process, from software testing consulting to debugging,not only for customers who provide consumers with web apps and mobile games but also customers who
provide business systems to companies.
In addition, regarding promoting engagement of persons with disabilities, the Group moved forwardwith placing the right person in the right position to take advantage of their strengths by focusing on
building a system and environment that allows them to experience growth. This led to orders for a wide
range of service projects, primarily in business process outsourcing (BPO).
As a result, net sales in this business amounted to ¥4,428 million (up 2.6% year on year) and operating
profit was ¥612 million (up 16.4% year on year).
(iv) Business Solution Business
For this business, where the Group is primarily engaged in B2B sales of IT-related products and system
integration services mainly for foreign-affiliated and medium-sized companies, the outlook is uncertain
because of the high prices of resources and commodities. Even so, the number of projects related to theuse of DX to increase productivity, reduce costs, and increase competitiveness is gradually trending
upward.
Specifically, the Group was able to win a number of orders in the system integration business forvarious services including lift and shift, which is a type of the method of cloud migration, and server
relocations.
Furthermore, the Group is now gradually becoming able to ship the servers and network products
whose shipment had been delayed due to semiconductor shortages, and progress has been made inrecording sales of services projects.
Furthermore, the Group received many inquiries relating to system development and maintenance andoperation projects to digitalize corporations’ businesses by making use of RPA and data linkage tools, aswell as the security diagnosis and category-specific security services released last period, increasing thenumber of orders received.
As a result, net sales in this business amounted to ¥7,048 million (up 12.5% year on year) and operating
profit was ¥523 million (up 45.8% year on year).
(v) Cloud BusinessIn this business, where the Group provides cloud solutions and original services to companies and otherentities, and which is responsible for promoting the subscription business model, the Group received
many inquiries regarding its Canbus. DX platform from companies promoting DX. Moreover, the Groupbegan providing not only Canbus. for system overhauls, but also the “DX Design Lab” that can be used inspot applications from project consulting to management in PMO and BPO in promoting DX. By
facilitating total solutions aimed at DX in addition to systematizing in Canbus., the Group received manyinquiries.
Going forward, the Group will continue to promote aggressive investment and sales reinforcement inthis priority offering area.
In addition, inquiries for the Cloudstep groupware, integrated with Google Workspace and Microsoft
365, have been increasing for rebuilding groupware architecture suited to post-COVID-19 officeenvironments. At the same time, system integration, an area of strength for the Group, differentiates theGroup from its competitors and results in orders.
As a result, net sales in this business amounted to ¥422 million (up 7.7% year on year) and operating
profit was ¥57 million (down 8.4% year on year).
(vi) Overseas BusinessIn the U.S.’s Silicon Valley, companies are facing a challenging business environment amid financial
instability with large-scale layoffs at tech companies, the collapse of multiple banks, and forecasts forfurther interest rate hikes. However, the Group’s U.S. subsidiary has enjoyed strong orders fromJapanese-affiliated firms located in Silicon Valley for proof of concept development and verification
services to verify the effectiveness of elemental technologies owned by start-up companies. The Group
has also received continued orders for system development and evaluation services from the
manufacturing industry starting with automobile manufacturing, and the Overseas Business is strong.
ONE Tech, Inc., a U.S. company the subsidiary has invested in, focused on sales of its proprietary AI
MicroAITM.
Regarding StrongKey, Inc., another U.S.-based company the subsidiary has invested in, its security
support services based on data encryption and FIDO authentication have been newly adopted by major
companies in the U.S., and it has also released the Public Key Infrastructure (PKI) service for secure-4-internet communications, which is compatible with the new “Matter” communication standard for smart
homes. Inquiries from smart home IoT device and other related companies are increasing.
As a result, net sales in this business amounted to ¥36 million (up 8.5% year on year) and the operating
loss was ¥2 million (versus operating loss of ¥10 million in the same period of the previous fiscal year).
(vii) Investment & Incubation Business
GaYa Co., Ltd., operates the horse racing game Keiba Densetsu for PCs and smartphones and designs anddevelops business applications for smartphones and tablets. In game operations in the first quarter, we
held our first anniversary events for the smartphone game Keiba Densetsu PRIDE and revised andoptimized our operating structure. Moreover, orders received for contracted development from existingcustomers were firm, and the Group newly participated in game development run by major publishers.
As a result, net sales in this business amounted to ¥48 million (up 44.9% year on year) and theoperating profit ¥2 million (versus operating loss of ¥45 million in the same period of the previous fiscal
year).
(2) Financial position(Assets)
Total assets at the end of the first quarter of the fiscal year under review amounted to ¥46,644 million (versus¥48,879 million at the end of the previous fiscal year), a decrease of ¥2,234 million from the end of theprevious fiscal year. Current assets amounted to ¥40,326 million (versus ¥42,275 million at the end of theprevious fiscal year), a decrease of ¥1,948 million from the end of the previous fiscal year. This was mainly
due to a ¥1,541 million decline in notes and accounts receivable - trade, and contract assets, and a ¥326
million decline in cash and deposits. Non-current assets amounted to ¥6,317 million (versus ¥6,603 million at
the end of the previous fiscal year), a decrease of ¥286 million from the end of the previous fiscal year.
Property, plant and equipment amounted to ¥1,578 million (versus ¥1,622 million at the end of the previous
fiscal year), a decrease of ¥43 million from the end of the previous fiscal year. Intangible assets amounted to¥305 million (versus ¥317 million at the end of the previous fiscal year), a decrease of ¥12 million from theend of the previous fiscal year. Investments and other assets amounted to ¥4,433 million (versus ¥4,663
million at the end of the previous fiscal year), a decrease of ¥230 million from the end of the previous fiscal
year. This was mainly due to a ¥358 million decrease in deferred tax assets and a ¥137 million increase ininvestment securities.
(Liabilities)
Total liabilities amounted to ¥12,197 million (versus ¥14,228 million at the end of the previous fiscal year), a
decline of ¥2,031 million from the end of the previous fiscal year. This was mainly due to a ¥1,187 million
decline in income taxes payable, an ¥832 million decline in accounts payable - trade, and a ¥697 million
decline in provision for bonuses.
(Net assets)
Net assets amounted to ¥34,446 million (versus ¥34,650 million at the end of the previous fiscal year), a
decrease of ¥203 million from the end of the previous fiscal year. This was mainly due to profit attributable toowners of parent of ¥1,220 million and dividends of surplus of ¥1,556 million. As a result, the equity-to-asset
ratio increased 3.0 percentage points from the end of the previous fiscal year to 72.9%.
(3) Forward-looking forecasts, such as consolidated earnings forecasts
There have been no changes to the earnings forecasts for the full-fiscal year ending March 31, 2024 released on
May 11, 2023.
If there are revisions in the future, notification will be promptly made.

-5-

2. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandiseWork in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable from subsidiaries andassociates
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

As of June 30, 2023

25,03324,707

14,99913,458

1,501
–
743
(2)
42,275

1,355
0
807
(1)
40,326

743
745
97
–
35
1,622

728
718
97
1
32
1,578

310
4
3
317

288
14
3
305

2,136

2,274

538

549

1,588
905
33
(538)
4,663
6,603
48,879

1,578
546
33
(549)
4,433
6,317
46,644

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - other, and accrued expenses
Income taxes payable
Provision for bonuses
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Provision for share-based payments
Other
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
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of June 30, 2023

6,096
1,550
2,459
1,524
1,460
–
997
14,088

5,263
1,550
2,617
336
763
38
1,477
12,047114
26
140
14,228122
26
149
12,1971,513
6,023
31,709(5,022)
34,223

1,513
6,023
31,373(5,022)33,887

(91)
36
(54)
481
34,65048,879

(1)
94
93
465
34,446
46,644

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of investment securities
Share of profit of entities accounted for using equity
methodSubsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of investment securities
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-8-

Three months ended
June 30, 2023

17,627
13,400
4,226
2,405
1,821

18,734
14,397
4,336
2,427
1,909

5
0
14

8
2
–

13

12

3
23
61

17
17
58

1
–
1
3
1,879
1,879
340
262
603
1,276
(8)
1,285

1
183
1
187
1,781
1,781
258
318
577
1,204
(15)
1,220

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-9-

Three months ended
June 30, 2023

1,276

1,204

0
92

90
74

(21)

(17)

71
1,348

148
1,352

1,356

1,368

(8)

(15)

(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
No items to report.
(Notes on substantial changes in amount of shareholder’s equity)
No items to report.
(Segment information, etc.)
Segment information
I Three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

5,309

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

392

15

24

–

17,627

5

0

18

9

(163)

–

6,267

392

33

33

(163)

17,627

IT Service
Business

Business
Solution
Business

Cloud
Business

1,422

4,202

6,261

15

–

114

5,325

1,422

4,316

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total

Segment profit
689
238
526
358
63
(10)
(45)
–
(loss)(Note)
Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

1,821

2. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.
II Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

5,215

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

420

21

42

–

18,734

4

2

15

6

(92)

–

7,048

422

36

48

(92)

18,734

IT Service
Business

Business
Solution
Business

Cloud
Business

1,619

4,371

7,044

7

–

57

5,223

1,619

4,428

Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total

Segment profit
364
351
612
523
57
(2)
2
–
(loss)(Note)
Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

2. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.

- 10 -

1,909

3. Supplementary information
Production, orders, and sales results(1) Production results
Production results per business segment for the three months ended June 30, 2023 are as follows.
Business segment

Production (Millions of yen)

Year-on-year change (%)

Solution Design Business

3,744

106.7

Framework Design Business

1,110

109.7

IT Service Business

3,119

99.8

368

134.3

8,341

105.3

Business Solution Business
Total(Notes)

1. Within the Group, only segments that involve made-to-order activities are shown due to the natureof services.
2. The above amounts are stated at production cost.

(2) Order results
Order results per segment for the three months ended June 30, 2023 are as follows.
Order value
Year-on-year
Backlog of orders
Business segment(Millions of yen)change (%)(Millions of yen)

Year-on-yearchange (%)

Solution Design Business

4,896

80.7

7,529

90.5

Framework Design Business

1,494

92.1

2,989

112.6

IT Service Business

4,441

104.5

6,596

109.4

455

137.4

503

105.7

11,28892.0

17,618100.8

Business Solution Business
Total(Note)

Within the Group, only segments that involve made-to-order activities are shown due to the nature ofservices.

(3) Sales results
Sales results per business segment for the three months ended June 30, 2023 are as follows.
Business segment

Net sales (Millions of yen)

Year-on-year change (%)

Solution Design Business

5,215

98.2

Framework Design Business

1,619

113.9

IT Service Business

4,371

104.0

Business Solution Business

7,044

112.5

Cloud Business

420

107.1

Overseas Business

21

137.9

Investment & Incubation Business

42

174.3

18,734

106.3

Total
(Note)

Inter-segment transactions are offset and eliminated.

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