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.

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)

February 6, 2024

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:
February 9, 2024
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 nine months ended December 31, 2023 (from April 1, 2023 to
December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine 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%

December 31, 2023

57,140

5.2

7,025

0.2

7,095

(1.2)

4,844

(1.3)

December 31, 2022

54,334

15.5

7,013

10.1

7,185

16.3

4,908

17.9

Note: Comprehensive income

For the nine months ended December 31, 2023:
For the nine months ended December 31, 2022:

Basic earnings
per share
Nine months ended¥4,979 million¥4,877 million[2.1%][15.7%]

Diluted earnings
per share
Yen

Yen

December 31, 2023

12.50

–

December 31, 2022

12.67

–

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

December 31, 2023

48,75236,128

73.1

91.98

March 31, 2023

48,87934,650

69.9

88.19

Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:¥35,638 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

–

4.00

–

–

5.00

–

Fiscal year-end

Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

4.00

8.00

5.00

10.00

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)(Percentages indicate year-on-year changes.)
Net sales
Millionsof yenFiscal year ending%

Operating profit

Ordinary profit

Profit attributable toowners of parent

Millionsof yenMillionsof yenMillionsof yen%80,386
7.9
10,6107.8
10,644
March 31, 2024
Note: Revisions to the earnings forecasts most recently announced: None

%

6.9

7,233

Basic earnings
per share

%

Yen

(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 December 31, 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 December 31, 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)
Nine months ended December 31, 2023

387,440,812 shares

Nine months ended December 31, 2022

387,415,970 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 ends of the periods ended December 31, 2023
and March 31, 2023 were 1,567,700 shares, and the numbers of treasury shares held by the Trust Account excluded fromthe calculation of the average number of shares outstanding during the nine months ended December 31, 2023 and ninemonths ended December 31, 2022 were as follows: the average numbers of treasury shares of common shares held by theTrust Account for the nine months ended December 31, 2023 and nine months ended December 31, 2022 were 1,567,700
shares and 1,592,542 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 nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023), the Japanese
economy was on a gradual recovery trend, particularly individual consumption, as economic and social
conditions returned to normal following the COVID-19 pandemic. However, the global monetary tightening
employed to curb the inflation caused by surging resource and raw materials prices and the downturn inoverseas economies resulting from the uncertain international situation continue to present a downward risk on
the economy in Japan.
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 the supportof promoting DX in the software development business.
Furthermore, we are continuing 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 focused on expansion in the in-vehicle and DX fields, where
significant growth is expected. Here, the Group worked to 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 responding to diverse 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 third quarter of the fiscal year under review were net
sales of ¥57,140 million (up 5.2% year on year). However, the impact of unprofitable projects in the Solution
Design Business could not be absorbed by other businesses, which resulted in operating profit of ¥7,025
million (up 0.2% year on year), ordinary profit of ¥7,095 million (down 1.2% year on year), and profit
attributable to owners of parent of ¥4,844 million (down 1.3% year on year).
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 this business, while the Group was working to win orders fromclients with robust development motivation, development projects concluded for some of our clients, andthe focus has been on launching new projects.
Given these conditions, although unprofitable projects from the first quarter were nearing conclusion in
the second quarter, with the opportunity loss impacts and lost sales opportunities as resources wereallocated in response to those projects, as well as delays in assigning staff, net sales in this segment were¥15,748 million (down 5.1% year on year), and operating profit was ¥1,670 million (down 39.6% year onyear).
In this business, we are working on making improvements to strengthen our organizational capabilities.

(In-Vehicle)
In the in-vehicle category, the importance of mobility software is increasing in the automobile industry,and orders are expanding due to the robust development demand for in-vehicle infotainment, integrated
cockpit systems and electric vehicles. Using the Group’s technical capabilities in software development
cultivated in the mobile field, we are strengthening our development system to meet the demand ofJapanese finished vehicle manufacturers and Tier-1 suppliers. New project launches are progressing
steadily, and going forward we will focus on expanding mobility development orders received for nextgeneration 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 products categories to increase inquiries received related to power grids
and aerospace. 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 settling.
Meanwhile, the demand for services in the cashless payment settlement and Fintech domains is rising,with inquiries increasing accordingly. We will endeavor to secure more orders by leveraging the strengths
we have cultivated over the years in offering total solutions covering planning, development andevaluation, IT consulting and IT services.
(Products)
In the products category, which engages in development, including smartphones, home appliances,robotics, and payment terminals, the Group received numerous inquiries related to the keywords “AI,”“IoT,” and “mobile,” which are strengths of the Group, leading to orders received. The Group’s one-stop
support for the entire product lifecycle of not only product development and quality evaluation, but also
environment construction and support, has been well received. The Group will continue to expand orders
received while diversifying itself from competitors.
(DX Services)
In the DX service field, the Group has continued to expand orders received for system development withsuperior flexibility and expandability such as the optimization of work processes and data use andoperational streamlining through AI and automation as demand increases for undertaking DX (the conceptof 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 TimeTapps,
a cloud attendance management system, and Palette.Link, a groupware that enhances the quality ofrelationships, as orders for these services have been strong.
(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, sales remained steady by increasing
inquiries for DX projects such as the migration of core systems to the cloud and the development of newservices aimed at CX improvement.
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 third quarter, orders received for projects
for local governments made progress, and the Group’s corresponding area is expanding.
In addition, in the corporate sector, the Group is moving forward with proposals for technical support
services using low-code development tools and system rebuilding focused on system renewal for digitaltransformation (DX). 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 ¥5,073 million (up 13.1% year on year) and operating
profit was ¥1,258 million (up 34.8% 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 responding to diverse work styles, the-3-Group focused on provision of PMO services for implementing a variety of tools including cloud
solutions and improving business processes.
In the software testing services business, the Group is making use of its knowledge of customers in theInternet Business/gaming domains to pivot to clients in the enterprise domain from the second half of the
fiscal year under review. We will acquire new customers, procure human resources with an immediate
impact, and strengthen relationships with partner companies.
Regarding engagement with persons with disabilities, we have focused our efforts on understanding
each person’s individuality and improving their skills, expanding the breadth of work that can allow themto experience growth.
As a result, net sales in this business amounted to ¥13,614 million (up 2.9% year on year) and operating
profit was ¥2,172 million (up 14.9% 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 weak yen and high prices of resources and commodities. Even so, the number of projects
related to the use of DX to increase productivity, reduce costs, and increase competitiveness is graduallytrending upward.
Specifically, the Group was able to win a number of orders in the cloud-related system integration
business for various services including lift and shift, which is a type of the method of cloud migration.
Furthermore, from the end of life (EOL) of server groups, we were able to make progress in sales of
hardware such as servers, storage and networking products and recording service 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 services and support services, increasing the number of orders received.
As a result, net sales in this business amounted to ¥21,293 million (up 13.1% year on year) andoperating profit was ¥1,659 million (up 39.8% year on year).
(v) Cloud BusinessIn this business, where the Group provides original services and cloud services to companies and otherentities, and which is responsible for promoting the subscription business model, the Group received
many inquiries regarding its Canbus. no-code DX platform from companies promoting DX. Moreover,the Group began providing not only Canbus. for system overhauls, but also the “DX Design Lab” that canbe used in spot 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
many inquiries. We have received many inquiries for generative AI in particular, and continue toproactively promote investment and sales reinforcement. However, we are planning to initiate a rollbackin the future, as many of the projects were proof-of-concept (PoC) projects that did not proceed to orders
for large projects.
As a result, net sales in this business amounted to ¥1,449 million (up 7.5% year on year) and operating
profit was ¥256 million (down 1.0% year on year).
(vi) Overseas BusinessAs companies other than the tech giants continue to face difficult circumstances in the U.S. and despite
experiencing a decline in system testing work for some manufacturing companies, our U.S. subsidiary isseeing an upward trend in orders from Japanese-affiliated firms located in Silicon Valley for PoC
development and verification services to verify the effectiveness of elemental technologies owned bystart-up companies, in addition to new inquiries for system development and verification services fromother manufacturing companies.
In addition, ONE Tech, Inc., a U.S. company the subsidiary has invested in, is focusing on sales of its
proprietary “MicroAI™” to the manufacturing industry and telecommunications companies. StrongKey,
Inc., another U.S.-based company the subsidiary has invested in, is focusing on sales of security services
based on FIDO authentication and the Public Key Infrastructure (PKI) service (public key infrastructure)
supporting the new smart home communication standard “Matter.”
As a result, net sales in this business amounted to ¥100 million (down 2.7% year on year) and theoperating loss was ¥18 million (versus operating loss of ¥21 million in the same period of the previous
fiscal year).

-4-

(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 the third quarter of the fiscal year underreview, we changed over to a new in-game season in the smartphone game “Keiba Densetsu PRIDE” andreleased functionality that further expands the depth of introducing and developing new racehorses. In
contracted game development, we have focused on PMO support for projects in progress, overallmanpower management, and final development aimed at game releases. In addition, contracted
development from existing customers in the non-gaming field also remained steady.
As a result, net sales in this business amounted to ¥143 million (down 44.5% year on year) and theoperating profit was ¥27 million (versus operating loss of ¥2 million in the same period of the previous
fiscal year).
(2) Financial position(Assets)
Total assets at the end of the third quarter of the fiscal year under review amounted to ¥48,752 million (versus¥48,879 million at the end of the previous fiscal year), a decrease of ¥126 million from the end of theprevious fiscal year. Current assets amounted to ¥42,327 million (versus ¥42,275 million at the end of theprevious fiscal year), an increase of ¥51 million from the end of the previous fiscal year. This was mainly due
to an ¥817 increase in cash and deposits, a ¥474 million decline in notes and accounts receivable - trade, andcontract assets, and a ¥382 million decline in merchandise. Non-current assets amounted to ¥6,425 million(versus ¥6,603 million at the end of the previous fiscal year), a decrease of ¥178 million from the end of theprevious fiscal year. Property, plant and equipment amounted to ¥1,429 million (versus ¥1,622 million at theend of the previous fiscal year), a decrease of ¥193 million from the end of the previous fiscal year. Intangible
assets amounted to ¥271 million (versus ¥317 million at the end of the previous fiscal year), a decrease of ¥46
million from the end of the previous fiscal year. Investments and other assets amounted to ¥4,724 million(versus ¥4,663 million at the end of the previous fiscal year), an increase of ¥60 million from the end of theprevious fiscal year. This was mainly due to a ¥273 million increase in investment securities and a ¥333
million decrease in deferred tax assets.
(Liabilities)
Total liabilities amounted to ¥12,623 million (versus ¥14,228 million at the end of the previous fiscal year), a
decline of ¥1,605 million from the end of the previous fiscal year. This was mainly due to an ¥812 million
decrease in income taxes payable, a ¥763 million decrease in accounts payable - trade, and a ¥637 million
decrease in provision for bonuses.
(Net assets)
Net assets amounted to ¥36,128 million (versus ¥34,650 million at the end of the previous fiscal year), an
increase of ¥1,478 million from the end of the previous fiscal year. This was mainly due to profit attributableto owners of parent of ¥4,844 million and dividends of surplus of ¥3,501 million. As a result, the equity-toasset ratio increased 3.2 percentage points from the end of the previous fiscal year to 73.1%.
(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
Land
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 December 31, 2023

25,03325,85014,99914,525

1,501
–
743
(2)
42,275

1,118
8
825
(1)
42,327

743
745
97
35
1,622

698
607
97
25
1,429

310
4
3
317

251
16
3
271

2,136

2,410

538

549

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

1,608
572
133
(550)
4,724
6,425
48,752

(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 warranties for completed construction
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 December 31, 2023

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

5,332
1,550
2,634
711
822
3
1,410
12,465114
26
140
14,228135
23
158
12,623

1,513
6,023
31,709(5,022)
34,223

1,513
6,023
33,052(5,022)35,567

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

(6)
77
71
490
36,12848,752

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 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
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-

Nine months ended
December 31, 2023

54,33440,941
13,392
6,379
7,013

57,14043,827
13,313
6,287
7,025

16
5
94

21
10
–

23

32

22
41
202

34
33
132

5
–
15
9
30
7,185
7,185
2,007
253
2,260
4,924
16
4,908

5
48
–
8
62
7,095
7,095
1,946
295
2,242
4,853
8
4,844

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 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-

Nine months ended
December 31, 2023

4,924

4,853

(97)
66

85
53

(15)

(12)

(46)
4,877

126
4,979

4,861

4,971

16

8

(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 Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

16,529Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,313

55

237

–

54,334

25

34

47

21

(501)

–

18,826

1,347

103

258

(501)

54,334

IT Service
Business

Business
Solution
Business

Cloud
Business

4,485

12,91118,80158–

314

16,588

4,485

13,225Net sales
Net sales toexternalcustomers
Inter-segment net
sales andtransfers
Total

Segment profit
2,765
933
1,891
1,187
259
(21)
(2)
–
(loss)(Note)
Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

7,013

2. Information about impairment loss or goodwill for non-current assets by reporting segment
No items to report.
II Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

15,732

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,440

50

125

–

57,140

26

8

49

18

(282)

–

21,293

1,449

100

143

(282)

57,140IT Service
Business

Business
Solution
Business

Cloud
Business

5,073

13,45021,26716–

163

15,748

5,073

13,614

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

Segment profit
1,670
1,258
2,172
1,659
256
(18)
27
–
(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 -

7,025

3. Supplementary information
Production, orders, and sales results(1) Production results
Production results per business segment for the nine months ended December 31, 2023 are as follows.
Business segment

Production (Millions of yen)

Year-on-year change (%)

Solution Design Business

11,525

103.3

Framework Design Business

3,441

109.8

IT Service Business

9,401

100.6

Business Solution Business

1,220

131.9

25,587

104.2

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 nine months ended December 31, 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

13,968

87.9

6,084

90.3

Framework Design Business

5,128

108.3

3,168

117.3

IT Service Business

13,646

104.2

6,722

109.1

Business Solution Business

1,701

149.2

566

119.7

34,44598.8

16,542

102.9

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 nine months ended December 31, 2023 are as follows.
Business segment

Net sales (Millions of yen)

Year-on-year change (%)

Solution Design Business

15,732

95.2

Framework Design Business

5,073

113.1

IT Service Business

13,450104.2

Business Solution Business

21,267

113.1

Cloud Business

1,440

109.7

Overseas Business

50

91.8

Investment & Incubation Business

125

52.8

57,140

105.2

Total
(Note)

Inter-segment transactions are offset and eliminated.

- 11 -