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 Six Months Ended September 30, 2023
(Under Japanese GAAP)

October 26, 2023

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:
November 7, 2023
Scheduled date to commence dividend payments:
December 5, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to
September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six 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%

September 30, 2023

37,521

4.8

4,368

(1.5)

4,334

(3.6)

2,976

(3.5)

September 30, 2022

35,805

16.0

4,435

14.9

4,497

20.3

3,084

22.5

Note: Comprehensive income

For the six months ended September 30, 2023:
For the six months ended September 30, 2022:

Basic earnings
per share
Six months ended¥3,144 million¥3,204 million[(1.9)%][27.5%]

Diluted earnings
per share
Yen

Yen

September 30, 2023

7.68

–

September 30, 2022

7.96

–

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

September 30, 2023

50,36036,239

71.0

92.30

March 31, 2023

48,87934,650

69.9

88.19

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥35,759 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 ending
March 31, 2024
(Forecast)Fiscal year-end

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 September 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 September 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)
Six months ended September 30, 2023

387,440,812 shares

Six months ended September 30, 2022

387,404,850 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 September 30, 2023 andMarch 31, 2023 were 1,567,700 shares, and the number of treasury shares held by the Trust Account excluded from thecalculation of the average number of shares outstanding during the six months ended September 30, 2023 and six months
ended September 30, 2022 is as follows: the average number of treasury shares of common shares held by the Trust
Account for the six months ended September 30, 2023 and six months ended September 30, 2022 were 1,567,700 sharesand 1,603,662 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) Quarterly consolidated statement of cash flows ...................................................................................... 10(4) Notes to the quarterly consolidated financial statements........................................................................ 12(Notes on premise of going concern)............................................................................................................ 12(Notes on substantial changes in amount of shareholder’s equity)............................................................... 12(Segment information, etc.) .......................................................................................................................... 12
3. Supplementary information ............................................................................................................................. 13(1) Production results ....................................................................................................................................... 13(2) Order results ............................................................................................................................................... 13(3) Sales results ................................................................................................................................................. 13-1-

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 first half of the fiscal year under review (April 1, 2023 to September 30, 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, central banks in various countries
are continuing with monetary tightening to combat global inflation caused by surging resource and raw
materials prices, and the downturn in the overseas economy has been a downward risk on the economy inJapan.
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 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 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 half of the fiscal year under review were net sales of¥37,521 million (up 4.8% 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 ¥4,368 million (down
1.5% year on year), ordinary profit of ¥4,334 million (down 3.6% year on year), and profit attributable toowners of parent of ¥2,976 million (down 3.5% 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 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 cost 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
¥10,453 million (down 3.8% year on year), and operating profit was ¥944 million (down 44.6% year onyear).
In this business, we will work to rebuild through proactive sales and other measures in the second halfof the fiscal year and beyond, as unprofitable projects are brought to a conclusion.

(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, integrated cockpit systems andelectric vehicles. Using the Group’s technical capabilities in software development cultivated in the-2-mobile field, we are strengthening our development system to meet the demand of Japanese finishedvehicle 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.
(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 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 were nearing conclusion in thefirst half of the fiscal year under review.
(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 an increasing number of orders for system developmentwith superior 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 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, sales remained steady by increasing
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 second quarter, orders received for
projects for local governments made progress, and the Group intends to further expand this area as one ofthe pillars of this business.
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 ¥3,314 million (up 12.8% year on year) and operating
profit was ¥806 million (up 39.3% year on year).

-3-

(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 for implementing a variety of tools including cloud
solutions and improving business processes.
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.
Regarding promoting engagement of persons with disabilities, the Group moved forward with placing
the right person in the right position to take advantage of their strengths by focusing on building a systemand environment that allows them to experience growth.
As a result, net sales in this business amounted to ¥8,949 million (up 2.2% year on year) and operating
profit was ¥1,367 million (up 11.0% 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 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 services and support services released last period, increasing the number of orders
received.
As a result, net sales in this business amounted to ¥13,637 million (up 11.4% year on year) andoperating profit was ¥1,026 million (up 41.8% 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 will continue toproactively promote investment and sales reinforcement.
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 ¥1,192 million (up 10.5% year on year) and operating
profit was ¥222 million (down 2.1% year on year).
(vi) Overseas BusinessIn the U.S., against the backdrop of continuing rising interest rates and inflation having fallen from its
peak but still remaining at high levels, the corporate environment remains difficult for all but the largest
technology companies where large layoffs have abated. Under such circumstances, despite experiencing atemporary decline in system testing work for some manufacturing companies, our U.S. subsidiary is
performing well due to strong orders from Japanese-affiliated firms located in Silicon Valley for proof-ofconcept (PoC) development and verification services to verify the effectiveness of elemental technologies
owned by start-up companies, in addition to steady growth of new orders for system development andverification services from other manufacturing companies.

-4-

In addition, ONE Tech, Inc., a U.S. company the subsidiary has invested in, is focusing on sales of its
proprietary “MicroAI™” mainly to the manufacturing industry.
StrongKey, Inc., another U.S.-based company the subsidiary has invested in, has progressed security
services based on FIDO authentication to adoption by and delivery to a major U.S. telecommunications
carrier, and also continues to receive inquiries from smart home IoT device and other related companies
in relation to the Public Key Infrastructure (PKI) service (public key infrastructure) supporting the newsmart home communication standard “Matter.”
As a result, net sales in this business amounted to ¥68 million (down 2.4% year on year) and theoperating loss was ¥10 million (versus operating loss of ¥12 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 the first half of the fiscal year underreview, we released functionality expanding the depth of the in-game cycle by scrutinizing and optimizing
each KPI, including advertising, in the smartphone game “Keiba Densetsu PRIDE.” In contracted gamedevelopment, we have expanded the scope of responsibilities for projects in progress to include PMO
support, and focused on manpower management as well as negotiation with other teams. In addition,
contracted development from existing customers in the non-gaming field remained steady.
As a result, net sales in this business amounted to ¥94 million (down 47.0% year on year) and theoperating profit ¥12 million (versus operating loss of ¥19 million in the same period of the previous fiscal
year).
(2) Financial position(Assets)
Total assets at the end of the second quarter of the fiscal year under review amounted to ¥50,360 million(versus ¥48,879 million at the end of the previous fiscal year), an increase of ¥1,481 million from the end of
the previous fiscal year. Current assets amounted to ¥43,857 million (versus ¥42,275 million at the end of theprevious fiscal year), an increase of ¥1,582 million from the end of the previous fiscal year. This was mainly
due to a ¥2,292 increase in cash and deposits and a ¥1,037 million decline in notes and accounts receivable trade, and contract assets. Non-current assets amounted to ¥6,502 million (versus ¥6,603 million at the end of
the previous fiscal year), a decrease of ¥101 million from the end of the previous fiscal year. Property, plantand equipment amounted to ¥1,499 million (versus ¥1,622 million at the end of the previous fiscal year), a
decrease of ¥122 million from the end of the previous fiscal year. Intangible assets amounted to ¥284 million(versus ¥317 million at the end of the previous fiscal year), a decrease of ¥32 million from the end of theprevious fiscal year. Investments and other assets amounted to ¥4,718 million (versus ¥4,663 million at theend of the previous fiscal year), an increase of ¥54 million from the end of the previous fiscal year.
(Liabilities)
Total liabilities amounted to ¥14,121 million (versus ¥14,228 million at the end of the previous fiscal year), a
decline of ¥107 million from the end of the previous fiscal year. This was mainly due to a ¥314 million
decrease in accounts payable - trade and a ¥197 million increase in accounts payable - other, and accrued
expenses.
(Net assets)
Net assets amounted to ¥36,239 million (versus ¥34,650 million at the end of the previous fiscal year), an
increase of ¥1,588 million from the end of the previous fiscal year. This was mainly due to profit attributableto owners of parent of ¥2,976 million and dividends of surplus of ¥1,556 million. As a result, the equity-toasset ratio increased 1.1 percentage points from the end of the previous fiscal year to 71.0%.
(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 September 30, 2023

25,03327,325

14,99913,962

1,501
–
743
(2)
42,275

1,685
7
879
(1)
43,857

743
745
97
35
1,622

708
663
97
29
1,499

310
4
3
317

266
14
3
284

2,136

2,167

538

549

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

1,576
833
140
(550)
4,718
6,502
50,360(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
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 September 30, 2023

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

5,781
1,550
2,656
1,501
1,457
1,019
13,966114
26
140
14,228129
25
154
14,121

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

1,513
6,023
33,129(5,022)35,644

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

(1)
117
115
479
36,23950,360(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income (cumulative)(Millions of yen)Six months ended
September 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
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 (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

Six months ended
September 30, 2023

35,80527,013
8,792
4,357
4,435

37,521
28,776
8,745
4,377
4,368

10
2
15

15
2
–

13

15

13
28
84

21
14
69

3
–
15
2
21
4,497
4,497
1,394
14
1,408
3,088
4
3,084

3
82
14
3
103
4,334
4,334
1,327
32
1,359
2,974
(1)
2,976

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
September 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-

Six months ended
September 30, 2023

3,088

2,974

4
145

90
103

(33)

(23)

116
3,204

170
3,144

3,200

3,146

4

(1)

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Share of loss (profit) of entities accounted for using
equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for share-based
payments
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Loss (gain) on investments in investment partnerships
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from distributions from investment
partnerships
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Other payments
Other proceeds
Net cash provided by (used in) investing activities- 10 -

Six months ended
September 30, 2023

4,497
204

4,334
262

(13)

(15)

(9)
(42)

(0)
(3)

6

14

(12)
3
(15)
15
1,252
10
(13)
(764)

(17)
3
82
14
1,041
(191)
5
(314)

291

295

(172)
8
(81)
5,164
12
(3)
(1,362)
3,811

(134)
(5)
(59)
5,313
17
(3)
(1,350)
3,976

(348)
–

(0)
23

(803)

(232)

25

2

(11,178)
11,221(8,705)
8,584

9

27

(20)

(11)

3

23

(0)
–
(1,092)

(0)
1
(286)

(Millions of yen)Six months ended
September 30, 2022
Cash flows from financing activities
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares of subsidiaries
Proceeds from sale of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Six months ended
September 30, 2023

40

–

(5)
15
(1,360)(1,311)––(1,562)(1,562)

60

18

1,467
21,96423,432

2,145
24,792
26,938

(4) 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 Six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Solution
DesignBusiness

Framework
DesignBusiness

10,835

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,076

38

162

–

35,805

13

2

32

15

(323)

–

12,238

1,079

70

177

(323)

35,805

IT Service
Business

Business
Solution
Business

Cloud
Business

2,937

8,530

12,22534–

224

10,870

2,937

8,755

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

Segment profit
1,705
578
1,232
723
226
(12)
(19)
–
(loss)(Note)
Segment profit (loss) is consistent with operating profit in the quarterly consolidated statement of income.

4,435

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

Framework
DesignBusiness

10,441

Overseas
Business

Investment&
Incubation
Business

Adjustment

Amount onquarterly
consolidated
statement ofincome (seeNotes)

1,186

32

82

–

37,521

11

6

35

12

(189)

–

13,637

1,192

68

94

(189)

37,521IT Service
Business

Business
Solution
Business

Cloud
Business

3,314

8,838

13,625

11–

111

10,453

3,314

8,949

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

Segment profit
944
806
1,367
1,026
222
(10)
12
–
(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.

- 12 -

4,368

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

Production (Millions of yen)

Year-on-year change (%)

Solution Design Business

7,639

105.0

Framework Design Business

2,245

108.4

IT Service Business

6,226

99.9

748

121.7

16,859104.1

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 six months ended September 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

10,601

95.0

8,008

104.0

Framework Design Business

3,348

100.6

3,147

110.7

IT Service Business

8,947

103.6

6,634

109.0

Business Solution Business

1,014

134.9

563

115.8

23,910100.2

18,353

107.2

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 six months ended September 30, 2023 are as follows.
Business segment

Net sales (Millions of yen)

Year-on-year change (%)

Solution Design Business

10,441

96.4

Framework Design Business

3,314

112.8

IT Service Business

8,838

103.6

Business Solution Business

13,625

111.5

Cloud Business

1,186

110.2

Overseas Business

32

86.4

Investment & Incubation Business

82

50.5

37,521

104.8

Total
(Note)

Inter-segment transactions are offset and eliminated.

- 13 -