Supplementary Materials for Financial
Results for the Third Quarter of the
Fiscal Year Ending June 30, 2024
System Support Inc. (Security Code: 4396)
May 8, 2024

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

Company Profile
Company name

System Support Inc. (STS)

Location

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

Founding

January 1980

Listed market

Tokyo Stock Exchange Prime Market (security code: 4396)

Capital

723 million yen

Net sales

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

Representative

Ryoji Koshimizu, Representative Director

Number of
employees

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

OfficesTokyo, Nagoya, Osaka, and Kanazawa (headquarters)

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

■System Integration BusinessThe head office is located in Kanazawa City, and the center ofbusiness including employees and customers is Tokyo, Nagoya,
and Osaka.
84% of employees are engineers

Overseas (U.S. & Canada)
12
Kanazawa 271
Tokyo 698
Nagoya 173
Osaka 194
Number of employees by region(as of June 30, 2023, consolidated)

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

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

Development and sale of products (software) by Our Group, and customization according to user companies’ applications■Overseas Business

Overseas system integration, outsourcing of payroll and accounting services, recruitment services, and media
management© 2024 System Support Inc.

2

Company Profile – Net Sales Trends and History
We continue to experience high growth through astrategy of investing in training of cloud and otherengineers and actively expanding services of global IT
vendors in Japan(1 million yen)

25,000Entered a Celonis Partner Program Agreement with CELONIS K.K.
Entered a Subcontractor Agreement with Automation Anywhere, Inc

20,000Entered a Google Cloud & Google for Education Commercial Partner Program Agreement with Google Cloud Japan G.K.
Received Microsoft Cloud Platform Gold Competency certification

15,000Received Microsoft Cloud Platform Silver Competency certification
Entered a PartnerNow Master Terms with ServiceNow Nederland B.V.

10,000Entered an APN Consulting Partner contract with Amazon Japan K.K.
Entered a SAP Service Partner contract with SAP Japan Co., Ltd.

5,000

Entered an Oracle EBS Technical Partner contract with Oracle Corporation Japan'80/12 '82/12 '84/6

'86/6

'88/6

'90/6

'92/6

'94/6

'96/6

●Established System Support Inc. in Kanazawa City, Ishikawa Prefecture

'98/6

'00/6

'02/6

'04/6

'06/6

'08/6

'10/6

'12/6

'14/6

'16/6

●eNet Solutions Co., Ltd. financed and founded●Nagoya Office opened●Tokyo Office opened

'18/6

'20/6

'22/6

'24/6

0

(Forecast)●Listed on TSE Mothers●Osaka Office opened●Listed on TSE First Section●STS Medic Inc. financed andfounded●Moved to TSE Prime●Acquired shares of T4C Co., Ltd., andmade it a subsidiary●STS Digital Inc.
financed and founded●Acquired shares of Across Solutions, Inc. and made it a subsidiary●STS Innovation, Inc. financed and founded in California, USA© 2024 System Support Inc.

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

●STS Innovation Canada, Inc. financed andfounded in Vancouver, Canada

3Summary of Financial Results for 3Q of FY2024/6 and Earning Forecast of
FY2024/6
Contents
1．Financial highlights
2．Net sales and income (consolidated)
3．Forecast for full year earning of FY2024/6 (consolidated)
4. Net sales and income by segment (consolidated)© 2024 System Support Inc.

4

Financial Highlights for 3Q of FY2024/6 (Cumulative)
Unit: 1 million yen

3Q of FY2024/6(Cumulative)
Net sales
Operating profit
Profit attributable toowners of parent

16,3451,410
962

Difference(YoY change)

Percentage change(YoY change)

Progress rate
against full-year
forecast+2,153+15.2%

75.0%

+227

+19.2%

80.0%

+160

+20.0%

82.4%

Steady progress in both sales and profit exceeding initial forecast while actively implementing

growth investments.
The cloud integration business remains in high demand and is expected to continue to strongly
drive overall sales and profits.
Recruitment is generally progressing according to plan (mid-career recruitment: 86 people in the
3Q (Cumulative) / 94 people in the full-year plan), and the strengthening of the service provisionsystem is progressing steadily.
The impact of the Noto Peninsula earthquake that occurred on January 1, 2024 on our Group’s
performance is minor.

© 2024 System Support Inc.

5

Consolidated Net Sales and Income of 3Q of FY2024/6 (Cumulative)
Unit: 1 million yen

3Q of FY2022/6(Cumulative)

3Q of FY2023/6(Cumulative)

Net sales

11,936

14,192Gross profit

3,214(26.9%)

3,848(27.1%)

Operating profit

1,033（8.7%)

1,183（8.3%)

Ordinary profit

1,026（8.6%)

1,194（8.4%)

Profit attributable toowners of parent

685（5.7%)

801（5.6%)■ Composition of net sales by segment *1
0.6%
4.1%
9.5%

3.7%0.8%
9.1%

1.1%
3.5%
9.3%

65.5%

59.6%

54.0%

20.2%

26.8%

32.1%

3Q of FY2022/6 3Q of FY2023/6 3Q of FY2024/6(Cumulative)(Cumulative)(Cumulative)© 2024 System Support Inc.

3Q of FY2024/6(Cumulative)

16,345
4,509 (27.6%)
1,410 （8.6%)
1,431 （8.8%)
962 （5.9%)
500■ Composition of segment profit*2
12.3%

14.3%
32.4%
38.4%

2.6%

3.3%
12.1%
14.0%
21.2%
49.4%

Difference(YoY change)

3.5%
9.8%

16.9%
11.2%

400
Overseas
Product
Outsourcing

58.5%

3Q of FY2022/6 3Q of FY2023/6 3Q of FY2024/6(Cumulative)(Cumulative)(Cumulative)

300
200

System integration

100
Cloud integration
0

Percentage change(YoY change)+2,153
+660
+227
+236
+160

+15.2%+17.2%+19.2%+19.8%+20.0%*Profit
5.0% ratio in ()■ Changes in investment-related expenses
4.0%
Unit: 1 million yen
329
201
1.7%

251

3.0%

■ Research and development expenses

2.0%

1.8%

2.0% ■ Training expenses■ Recruitment-related
1.0%
expenses― Percentage of net sales
0.0%

3Q of FY2022/6 3Q of FY2023/6 3Q of FY2024/6(Cumulative)(Cumulative)(Cumulative)*1 Net sales by segment are sales to external customers.

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

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

FY2022/6

Net sales

16,198Operatingprofit1,196

Ordinary
profit1,190

Annual dividends

Profitattributable toowners ofparentInterimdividends
Year-end
dividends
Total© 2024 System Support Inc.

FY2023/6

19,2671,456
1,465

FY2024/6(Forecast)

21,7841,763
1,755

Percentagechange(Period overperiod)■ Net sales/operating profit (consolidated)
Unit: 1 million yen

25,000＋13.1%＋21.0%+19.8%

19,26720,00015,00013,376 14,431

11,762

10,000
529

5,000
0

FY2019/6

12円
13円
25円

1,009
15円
17円
32円

1,167
18円
18円
36円

+15.6%-FY2020/6

FY2021/6

FY2022/6

13
1.5

1500
1000

FY2023/6

Operating profit

Dividends expected to increase
for the fifth consecutive year
since FY2019/6 when the IPO
was conducted
25

FY2019/6

2500

1,763 2000

1,196

■ Dividends*

-

1,456

3000

500
Net sales

785

16,198931

754

21,78410
FY2020/6

21
FY2021/6

Interim dividends

FY2024/6（Forecast）

0

Unit: Yen

36

32

18

17

12

15

18

FY2022/6

FY2023/6

FY2024/6（Forecast）

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

7

Net Sales and Income by Segment for 3Q of FY2024/6 (Consolidated)Cloud Integration Business•••

Demand continues to be strong with DX as a tailwind, and we are steadilystrengthening our service provision system through hiring and in-house training,
so both sales and profits are progressing ahead of plan.
ServiceNow and AWS achieved high growth, due to steady orders from end users
and strengthened systems for ServiceNow, and due to steady accumulation ofresales for AWS.
Azure OpenAI, services related to Microsoft’s generative AI, and Oracle Cloud
Infrastructure have grown significantly, steadily expanding the scope of services.
■Net sales*1+38.3％

5,000

3,800

4,000
3,000
2,000
1,000
0

2,414
33
161
302
775

1,140
3Q of FY2022/6(Cumulative)© 2024 System Support Inc.

279
382
518

5,255

Unit: 1 million yen

507
624
563
1,789

1,235
1,383
3Q of FY2023/6(Cumulative)

OthersGoogle Cloud
Microsoft Azure
AWS

1,770
3Q of FY2024/6(Cumulative)*1 Net sales are sales to external customers.

ServiceNow

1.1%
3.5%
9.3%
32.1%
Composition of net
sales by segment(3Q of FY2024/6
cumulative)

Unit: 1 million
yen
100.0%+44.0％

1,534

1,065
706
29.3%

28.0%

29.2%

3Q of
3Q of
3Q of
FY2024/6
FY2023/6
FY2022/6(Cumulative) (Cumulative) (Cumulative)

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

Gross Profit ratio

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

54.0%

■ Gross profit/profit ratio*2

1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

Cloud Integration
Business

90.0%
1,000
80.0%
70.0%
800
60.0%
50.0%
600
40.0%
400
30.0%
20.0%
200
10.0%
0.0%
0

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

Unit: 1 million yen+41.6％

847

598

40.0%
30.0%

407
16.9%

50.0%

20.0%
15.7%

16.1%

3Q of
3Q of
3Q of
FY2024/6
FY2023/6
FY2022/6(Cumulative) (Cumulative) (Cumulative)

Segment Profit

10.0%
0.0%

Segment Profit ratio

8Cloud Integration Business Details (1) Cloud platform migration (Microsoft Azure, AWS, Google Cloud, Others )and usage support
 We provide cloud migration and usage support, leveraging ourstrengths in the area of using cloud databases and data analysis
platforms.
 After migration, we secure stock-type revenue without requiring
human labor by reselling cloud accounts.
 Structure that supports high growth through steady
accumulation of resales■ Net sales for cloud platform
migration, usage support, etc.

Unit: 1 million yen+44.2％

4,000

3,462

3,500
3,0004Q
2,500
3Q
2,000
2Q
1,500
1,0001Q
500
0

1,046

1,333

Cloud Platform Migrationand Usage Support（AWS, Microsoft Azure,
Google Cloud, Others ）ServiceNow■Flow of cloud platform migration and usage support
Our main services
Proposal and design
Before cloud ▼Migration and usage
migration
supportReselling cloud accounts (pay-as-you-go or bulk
purchases based on data usage) from Our Company
to customers to ensure stock revenue■ Changes in resale net sales in net sales forcloud platform migration, usage support, etc.
Unit: 1 million yen

1,648(creation of cloud environment)

1,860

944

586
424
490
359
FY2022/6

YoY(3Q(Cumulative))

Cloud integration business
Sales composition ratio

1,216

850
621
*1

FY2023/6

934
FY2024/6▼

After cloud
migration(Delivery)▼
Operation andmonitoring
Resale

1,500
4Q
3Q
1,000
2Q
500
1Q
0

420

991

424

759

773

153
141
273
191

216
212
181
163

273
216
287
214

FY2020/6

FY2021/6

FY2022/6

470*2+49.9％736

YoY(3Q (Cumulative))

653

333

452

FY2023/6

FY2024/6© 2024 System Support Inc. *1 There have been minor revisions to the net sales figures for each quarter of the fiscal year ended June 30, 2022, compared with the figures shown in the supplementary materials for the 1Q trough 3Q of the fiscal year ended June 30, 2023.
*2 There have been minor revisions to the sales figures for each quarter of the fiscal year ended June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of the fiscal year ending June 30, 2023.

9

Cloud Integration Business Details (2) Support for the Introduction and Use of ServiceNow
Cloud integration business
Sales composition ratio We have achieved high growth through a system that ranks 3rd inJapan in the number of ServiceNow certified build certificationsacquired*1 and the know-how accumulated over the approximately
10 years since the start of service provision within our group.
 We maintain high profit margins because engineers are rare in thisfield.
■ Net sales of ServiceNow
Unit: 1 million yen

2,500

1,500
4Q
1,000
3Q
2Q
500
1Q
0

1,527
387

473

410
312

488
434

FY2022/6* FY2023/6

Decreased due to retirements and leaves ofabsence, but this is temporary and expected toincrease going forward

581

461

416

■Number of our ServiceNow certified
build certifications *3

YoY(3Q(Cumulative))

1,857

655

534
FY2024/6

ServiceNow• ServiceNow is a cloud service provided by ServiceNow, Inc. to standardize IT service management andother operations, with a market capitalization of approximately US$150 billion in April 2024.
• First domestic company certified as a Bronze Services Partner in 2017*2; currently the Elite Partner.

Net Sales: +27.9％

2,000

Cloud Platform Migrationand Usage Support（AWS, Microsoft Azure,
Google Cloud, Others ）Gross profit ratio:
3Q of FY2023/6(cumulative)
43.7%
3Q of FY2024/6(cumulative)
44.3％
37
June 30,

December

2020

31, 2020

84

10

6

386 375
320 353187
144 176

June 30, January 15, June 30, September
2021

2022

2022

(1 billion USD)

8

Eligible certifications
are changed since
May 2023

69

Unit: Case

Net sales of ServiceNow, Inc. *430, 2022

42

May 2,

July 31,

November February

2023

2023

2, 202329, 20240'16/12 '17/12 '18/12 '19/12 '20/12 '21/12 '22/12 '23/12＊1 From the ServiceNow Japan website (As of November 2, 2023 Eligible certifications: CTA, CSA, CAD, CAS-PA, CIS, Developer Core
*There have been minor revisions to the sales figures for each quarter of the fiscal year ended
Skills,Suite (Pro))
June 30, 2022, as compared to the figures shown in the supplementary materials for the 1Q of the＊2 From the ServiceNow partner program of ServiceNow, Inc. in the U.S.
fiscal year ending June 30, 2023, but the full-year total figures remain unchanged.
＊3 Eligible certifications: CIS, CAD, CAS, CTA until the end of September 2022, CTA, CSA, CAD, CAS-PA, CIS, Developer Core Skills, Suite© 2024 System Support Inc.
10(Pro) from May 2023
＊4 Prepared by Our Company from ServiceNow, Inc. financial results

Net Sales and Income by Segment for 3Q of FY2024/6 (Consolidated)System Integration Business•

Fields where our Group has strengths, such as ERP (SAP)-related fields,
are performing well.
Due to the ongoing shift from this business to the cloud integration
business, both sales and profits were slightly lower than planned.
In the database-related business, sales are decreasing due to the shift tocloud computing, and this trend is expected to continue in the future.

••

10,0008,000
6,000■Net sales*1
7,817

4,204

+4.3％
8,460

4,629

8,827

Unit: 1 million yen

5,106

IT system
development
Database

4,000
2,000
0

1,459

1,454

1,281

2,153

2,377

2,438

3Q of FY2022/6(Cumulative)

3Q of FY2023/6(Cumulative)

3Q of FY2024/6(Cumulative)© 2024 System Support Inc.

ERP

*1Net sales are sales to external customers.

+0.4％
1,854

23.7%

2,020

Unit: 1 million yen

2,028

23.0%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Gross Profit

20.0%■Operating profit/profit ratio)(Segment profit/profit ratio*3
500
50.0%
18.0%
45.0%
400
40.0%
35.0%
300
30.0%

23.9%

Composition of net
sales by segment(3Q of FY2024/6
cumulative)

54.0%■Gross profit/profit ratio*2

2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0

1.1%
3.5%
9.3%
32.1%

System Integration BusinessTechnical support for the introduction
and use of ERP packages, constructionof infrastructure such as Oracle
database, and IT system consulting,design, development, operation, andmaintenance

25.0%
20.0%
200
15.0%
10.0%
100
5.0%
0.0% 0Gross Profit ratio

16.0%

Unit: 1 million yen

14.0%

344
256

12.0%

△36.9％ 10.0%
Segment profit
161

4.4%

3.0%

1.8%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Segment Profit

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

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

(operating
profit)8.0%
decreased due to
6.0%
anincrease incommon
4.0% SG&A
expenses such2.0%
ashead office
expenses.
0.0%

11

Net Sales and Income by Segment for 3Q of FY2024/6 (Consolidated)Outsourcing Business
•

•
2,000
1,800

In the data center business, Net sales steadily increased due to theaccumulation of stock-type revenues such as monthly subscription fees
and the rise in user fees per company due to the expansion of customer
usage, and gross profit increased due to the introduction of high profit
margins.
Near-shore sales (SAP ERP maintenance, etc.) in Kanazawa expanded
due to system reinforcement.

■Net sales*1

Unit: 1 million yen

1,600+17.2％

1,520

1,400

1,296

295

1,200
1,000

1,139

231

400

196

analysis, input,■Datanear-shore, etc.

800
600
400

942

1,064

1,224

■

Data center

300+26.0％

520

3Q of
3Q of
3Q of
FY2024/6
FY2023/6
FY2022/6(Cumulative) (Cumulative) (Cumulative)

54.0%■Changes in stock sales in net

355
31.2%

80.0%

50.0% 200
31.9%

34.3%

40.0%
30.0%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Gross Profit

350

Unit: 1 million yen

150
100

10.0%

50

0.0%

0

Gross Profit ratio

1Q

80.0%

70.0% 300

20.0%

*1Net sales are sales to external customers.

)(Segment profit/profit ratio*3
90.0%

60.0% 250

413

200

0

© 2024 System Support Inc.

90.0%
Unit: 1 million yen

100

200
0

■Gross profit/profit ratio

500

Composition of net
sales by segment(3Q of FY2024/6
cumulative)

100.0%*2■Operating profit/profit ratio
100.0% sales of Outsourcing Business
400

700
600

1.1%
3.5%
9.3%
32.1%

Outsourcing Business
Our Group’s private cloudand other data center
services, data analysis andinput, and near-shore system
operation and maintenance+44.1％
151

245

170

70.0%
60.0%

1,061

50.0%

274

40.0%
30.0%

13.3%

13.1%

16.1%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Segment Profit

1,157

267

302
293

20.0%

261

283

10.0%

258

278

0.0%

3Q

4Q

1,294

+8.9％

YoY
(3Q (Cumulative))

338
326

355

319

345

309

340

FY2021/6 FY2022/6 FY2023/6 FY2024/6

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

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

2Q

12

Net Sales and Income by Segment for 3Q of FY2024/6 (Consolidated)

Product Business
•
•
•
1,000

800

Stock-type revenues such as license fees are steadily accumulating and are
expected to continue to increase in the future.
SHIFTEE’s sales decreased due to a decrease in customization at the time of
introduction, but stock sales increased.
Although gross profit increased due to the acquisition of new high-margin
installation projects and an increase in the ratio of stock sales, the operating profit
was affected by an increase in selling, general and administrative expenses due to300
exhibitions and sales activities.

■Net sales*1
+9.9％

600

519

493
400

200

74

79

53
59

57
50

168

169

164

136

0

600

3Q of
FY2022/6(Cumulative)

3Q of
FY2023/6(Cumulative)© 2024 System Support Inc.

Unit: 1 million yen

571
78
72
53

Others

Shugyo Yakusha

300

SHIFTEE

168
MOS

199
3Q of
FY2024/6(Cumulative)

400

200

+20.0％
288
58.3%

382

318

80.0%150

61.3%

67.0%

100

Tate Yakusha

0

120.0%
200
100.0%

100.0%

20.0%
3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Gross Profit

0.0%

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

50
0

Unit: 1 million yen

70.0%

130

146

141

50.0%
40.0%
30.0%

26.4%

28.2%

24.8%

20.0%
10.0%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

Segment Profit

1Q

60.0%

60.0%
100
40.0%

■Changes in stock sales in
net sales of Product Business

Unit: 1 million yen△3.2％

Composition of net
sales by segment(3Q of FY2024/6
cumulative)

54.0%

*2
90.0%
■ Gross profit/profit ratio
140.0% ■Operating profit/profit ratio
250 (Segment profit/profit ratio*3)
Unit: 1 million yen
80.0%

500

1.1%
3.5%
32.1%
9.3%

Product Business
Development and sale ofproducts (software) by Our
Group, and customizationaccording to user
companies’ applications

0.0%

301
77
76

2Q

350
89
89

3Q

4Q

396

YoY
(3Q (Cumulative))+13.4%

102
98

109
114

73

89

100

74

82

95

109

FY2021/6

FY2022/6

FY2023/6

FY2024/6

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

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

13

Net Sales and Income by Segment for 3Q of FY2024/6 (Consolidated)

Overseas Business•

System integration, recruitment services, and outsourcing of payroll andaccounting services in North America are performing well.
System integration project status affects gross profit margin.
We are steadily expanding a system that allows this business to generate
profits independently.
1.2

•
•
200

■Net sales*1

171+49.7％

150

100

0.8
0.6

100
71

0.4

90
80

0.2

© 2024 System Support Inc.

3Q of FY2023/6(Cumulative)+35.2％

50
40

3Q of FY2024/6(Cumulative)

0*1Net sales are sales to external customers.

790

160.0%
120.0%
100.0%

38

80.0%

30
10

180.0%
140.0%

59

60

20

50

3Q of FY2022/6(Cumulative)

Unit: 1 million
yen
200.0%

70

114

0

1

60.0%
53.8%

51.4%

46.4%

3Q of
3Q of
3Q of
FY2024/6
FY2023/6
FY2022/6(Cumulative) (Cumulative) (Cumulative)

Gross Profit

3.5%
9.3%

40.0%
20.0%
0.0%

Gross Profit ratio

Composition of net
sales by segment(3Q of FY2024/6
cumulative)■Operating profit/profit ratio*3
70 (Segment profit/profit ratio )Unit: 1 160.0%
million yen

60+26.2％

50

30

51

40

40

10
0

120.0%
80.0%
60.0%

20
38.5%

140.0%
100.0%

27

40.0%
35.4%

29.8%

3Q of
3Q of
3Q of
FY2022/6
FY2023/6
FY2024/6(Cumulative) (Cumulative) (Cumulative)

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

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

32.1%

54.0%

■Gross profit/profit ratio *2

Unit: 1 million yen

1.1%

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

20.0%
0.0%

Segment Profit ratio

14

Reference Materials
Contents
1. Human resources strategy
2. Growth strategy by segment
3. Strengthening ESG management
4. Our Company topics© 2024 System Support Inc.

15

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

Number of employees (consolidated)
Aiming to achieve both active recruitment and acomprehensive training system, we have continued
to systematically increase the number of employees
by just under 10% every year.
1400
1200
1000
800
600
400
200
0

956

11.8%

799
8.1%

1,126

1,039

949

876

9.2%

7.7%

5.9%
157

1,039

1,134

9.1%

4.9%

5.4%

177

194

214

FY2021/6

FY2022/6

FY2023/6

163

FY2019/6
FY2020/6
社員数（名）

1,233

1,348

11.9%

9.6%

Unit: People

Unit: People

20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

FY2021/6

FY2022/6

FY2023/6

FY2024/6

New
graduate
recruitment

60

70

85

(Actual)Mid-career
recruitment

89

83

100

(Estimate)

Retirement
rate

5.9%

4.9%

5.4%

-

106

116

Engineers
Sales, management, etc.
Retirement rate
Turnover rate in the information and communications industry*© 2024 System Support Inc.

* Source: Ministry of Health, Labor and Welfare, Turnover Rate by Industry of Employment Trend Survey

16Growth Strategy by Segment (Cloud Integration Business)
Business outline: Technical support for migration and use of cloud services (ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) and resale of licenses, etc. (Resale) In this business, a driving force of our Group, we will actively invest in expanding our scope ofbusiness and growing our existing businesses, while also expanding the virtuous cycle in which
training engineers leads to increased orders.

1 Expansion of the corresponding area

We are expanding the scope of corresponding services by investing to quickly introduce newoverseas cloud services in the Japanese market.

2 Expansion of existing businesses

Focusing on AWS, Microsoft Azure, Google Cloud, and ServiceNow, which are the mainstays ofthis business, we will promote the recruitment and training of engineers and further enhancecustomer convenience as well as strengthen the development of unique services to improve theproductivity of our Group, aiming to differentiate ourselves from other cloud integrators.

Training cloud-related
engineers will lead to anincrease in orders, andmarket growth will further
grow our business.

Expansionof orders

Background: cloud market growth■Cloud platform services (IaaS/PaaS) market trends and forecasts*
FY2020 to FY2026 (Forecast)
CAGR

20.2%

10,5002020

13,0002021

15,6002022

18,7002023(Forecast)

22,4002024(Forecast)

26,80031,700Engineertraining andknow-how
accumulation
2025(Forecast)

Note 1: Business operator's net sales base Note 2: Forecasts for 2023 and subsequent years
Note 3: Market size does not include Software as a Service (SaaS)© 2024 System Support Inc.

(100 million yen)2026
(Forecast)Strengthening
relationships
with global IT
vendors

Strengthens relationships with
global IT vendors by gaining
technical certifications andrecognition

Actively invests in training cloud-related engineers* Source: “Survey on the Cloud Platform (IaaS/PaaS) Services Market (2023),” by Yano Research Institute, Inc., announced on April 25, 2023

17

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

12,000
8,000
4,000
0

29%

40%

31%

Net Sales

5,319

3,388

20%

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

146 150

158 172189

207 204

230

249

0%

Unit: Company

268 280

Compared to ‘23/6 3Q,
the number of customer
companies increases by 76.
Customer unit price is also
on the rise.

'22/6 '22/6 '22/6 '22/6 '23/6 '23/6 '23/6 '23/6 '24/6 '24/6 '24/6
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
© 2024 System Support Inc.

Ratio of stock
sales

These certifications and awards
will strengthen relationships witheach vendor and lead to customer
introductions and orders.

■History of major certification and awards in this business
Microsoft Azure• Obtained Gold Cloud Platform competency certification
Recognized as a partner with an outstanding track record in Microsoft Azure
deployments
・Obtained Advanced Specialization*2
Obtained highly specialized partner certifications in specific solution areas
・Won the MVP Award five times in a row
Received consecutive awards in the field of data platforms since 2017*3
・Received Microsoft Top Partner Engineer Award
Received the Award in Azure Field in 2023 *3
AWS・Obtained Oracle competency in the AWS competency program*4
・Received APN partner award “Rising Star of the Year 2014”
Google Cloud・Acquire Data Analytics Specialization and Application Development
Specialization by the Partner Advantage Program
・Attained Premier Partner badges for Google Cloud in the Sell & Service
Engagement Models
Oracle・Received 14 consecutive awards for Oracle Database*5
Received awards including Oracle Certification Award 2020 from Oracle Japan*1

Percentage of resale net sales in the Cloud Integration Business
Acquired in the “Migrating Windows Server and SQL Server to Microsoft Azure” field*3
Awarded by Our Company employees*4
Program to identify, validate, and recommend AWS Partner Network (APN) advanced and premiumtier partners that have demonstrated technical expertise and customer success for AWS*5
Awards from 2007 to 2020
*2

18

Growth Strategy by Segment (System Integration Business)
Business outline: Technical support for the introduction and use of ERP packages, construction of
infrastructure such as Oracle database, and IT system consulting, design, development,
operation, and maintenance Securing steady sales mainly in the ERP and database fields, which are our Group’s strengths,
and providing customers with options other than cloud computing stably support the overallhigh growth.

Growthstrategy

Expansion of existing
businesses

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

Strengthening project
management

Continue project management fromthe perspective of quality, duration,
cost, and risk control to curb theoccurrence of unprofitable projects
and improve service quality© 2024 System Support Inc.

Strengthening relationshipwith customers

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

SIer

Our Group

Percentage of directtransactions: 67.1%*1
Customer repeat rate: 85.1%*2

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

19

Growth Strategy by Segment (Outsourcing Business)
Business outline: Our Group’s private cloud and other data center services, data analysis and input, and nearshore system operation and maintenance Data center services, which are the core of this business, expand a stable profit structure bysteadily accumulating stock-type sales through an increase in the number of customers andexpansion of customer business operations.

Growthstrategy
Data center expansion

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

Expansion of ERP nearshore

With the need for maintenance of ERP
products, centered on SAP ERP,
expected to increase toward 2027, Our
Company is strengthening its system
by training near-shore personnel in the
Kanazawa area.
© 2024 System Support Inc.

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

100%

2,500
2,000

75%

1,500
1,541

Continuous data center
facility expansion

We will gradually increase equipment at ourGroup’s data centers in Kanazawa and Tokyoaccording to operating status, achieving both
quality improvement and profitability.

73%
1,772

80%
60%

1,000

40%

500

20%

0

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

0%

Net Sales

Ratio of stock
sales

20

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

 We are steadily accumulating stock-type sales such as license fees and realizing a high profit
margin in addition to expanding our stable profit structure.

Growthstrategy

Customer expansion

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

Maintaining and improving stablehigh profitability

By increasing non-customized sales, we will
strengthen the structure in which increased
sales lead to higher profits. In addition, we
will accumulate stock sales such as monthly
usage fees to ensure stable high profit
margins.
* As of March 31, 2024 (cumulative)© 2024 System Support Inc.

■Our Group’s main products
Construction work information
management system “Tate Yakusha”

Mobile Order Reception System“MOS”

742 companies(including OEMs)*

820 companies*

Cloud-based shift management
system “SHIFTEE”

Attendance/work management
system “Shugyo Yakusha”

142 companies*

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

Functional
enhancement

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

1,000

800

100%
670

80%

693

600
400

60%
52%

57%

40%

200
0

20%
FY2022/6

FY2023/6

FY2024/6(Planned)

FY2025/6(Planned)

FY2026/6(Planned)0%

Net Sales
Ratio of stock
sales
21

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

 In addition to researching cutting-edge IT information, we are expanding the system that allows
this business to earn profits independently.

Growthstrategy

Our subsidiary
STS Innovation Canada(Vancouver, Canada)

Support forcompanies entering
North America
Expansion of
cutting-edge
services in Japan

Collecting cutting-edge IT
information to develop
promising businesses inJapan© 2024 System Support Inc.

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

Strengthening
outsourcing services

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

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

Outsourcing
services forJapanesecompanies in
the U.S.
Our subsidiary
STS Innovation(Silicon Valley,
U.S.A.)
22

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

E

Advanced
Customer
Service

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

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

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

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

Society

Management
philosophy

Efforts to strengthen

Sharing Value
GovernanceG© 2024 System Support Inc.

23

Our Company Topics for FY2024/6 (July 2023 to March 2024)
Date

Subject

July 6, 2023

System Support announced the new price plan of Introduction Support Service for ChatGPT for Businesses using Azure OpenAI
Service
Support for corporate use of ChatGPT in a secure environment with 0 initial cost and 50,000 yen per month

July 20, 2023

Our employees received Microsoft Top Partner Engineer Award.

July 25, 2023

System Support started offering Smart Rabbit, a food inventory forecast system for restaurants.
Joint development with Bay Cruise to improve efficiency in ordering and reduce food loss and opportunity loss Ideal for restaurants
with a wide variety of menus without the need to disassemble recipes.

August 29, 2023

System Support introduced SHIFTEE, a cloud-based shift management system, to Suntory Publicity Service Limited.
Integral management of shift creation and attendance record by customizing and linking with Shugyo Yakusha, an attendance andwork management system

September 7, 2023

Certified as Select, a service partner of Snowflake
More than 20 staff who gained Snowflake SnowPro Core certification will offer consistent services from sales to building and data
migration support.

September 21, 2023

Received Oracle Certification Award 2023.

September 22, 2023

System Support introduced Dbvisit Standby, a solution for disaster recovery (disaster preparedness) for Oracle database, to Right
Co.,Ltd.

September 26, 2023

System Support started to train XR (Cross Reality) engineers using Kanazawa Institute of Technology’s KIT Cooperation Education
Program (academic–industry partnership education).
Aiming to revitalize local businesses, create opportunities for talented engineers, and promote their retention in local communities

October 24, 2023

System Support held a Halloween event “Futuristic Halloween 2023 -Another world when you wear glasses-” at Microsoft BaseKanazawa where visitors could experience cutting-edge MR (mixed reality) technology

October 25, 2023

“System Support presents FY2023 National Selected Elementary School Programming Ishikawa Prefecture Tournament” held

© 2024 System Support Inc.

24

Our Company Topics for FY2024/6 (July 2023 to March 2024)
Date

Subject

October 26, 2023

System Support launched a support service for introducing “Amazon Bedrock” that allows you to easily create generative AI
applications.
In addition to providing consistent support from consulting, development, and operation and maintenance for basic model utilization,
System Support also provides an AI assistant chat system compatible with Amazon Bedrock.

November 14, 2023

System Support released Azure OpenAI Service reference architecture “Smart Generative Chat,” certified as an Advanced Partner inthe reference architecture endorsement program.

November 16, 2023

System Support supported a transition of BIGLOBE’s core system to AWS, transiting from on-premises Oracle Database to Amazon
RDS for Oracle.

November 21, 2023

System Support introduced “Smart Generative Chat,” an in-house AI assistant chat system using Azure OpenAI Service, to Confex
Group company, supporting business utilization of interactive generative AI in a secure environment

December 5, 2023

System Support held a free Christmas Week event at Microsoft Base Kanazawa, offering a Christmas experience with MR (Mixed
Reality) and a social media usage seminar by a Hokuriku’s leading influencer.

December 20, 2023

Signed official partner agreement with professional soccer club “Zweigen Kanazawa”

December 22, 2023

Our employee was awarded “Google Cloud Partner Top Engineer 2024”

December 22, 2023

Our employee was awarded “Google Cloud Partner All-stars 2023”

January 5, 2024

B2B Mobile Order Reception System “MOS” marked 10th anniversary.

January 9, 2024

Launched "MOS Invoice," a cloud-based electronic invoice solution compliant with the invoice system and the Act concerning
Preservation of Electronic Books.

January 9, 2024

Launched "MOS Payment," a B2B online payment solution for accounts receivable and payable.

January 25, 2024

System Support earned the Application Development Specialization in the Google Cloud Partner Advantage program.
Proved our proficiency and successful track record in application development.

© 2024 System Support Inc.

25

Our Company Topics for FY2024/6 (July 2023 to March 2024)
Date

Subject

January 30, 2024

System Support launched two services utilizing Google Cloud AI technology: "Generative AI Deployment Support Service for Google
Cloud" and "Discovery AI Deployment Support Service for Google Cloud for Retailers."

January 31, 2024

Support for damage from the 2024 Noto Peninsula Earthquake

February 15, 2024

System Support Introduced Oracle Database SE RAC to JFE Galvanizing & Coating Co., Ltd.'s "unstoppable" production management
systems.
Achieved availability for systems operating 24 hours a day, 365 days a year.

February 16, 2024

System Support was recognized as Gold Partner by Celonis Japan, a pioneer and one of world’s largest process mining companies.

February 20, 2024

System Support attained Premier Partner badges for Google Cloud in the Sell & Service Engagement Models.

February 28, 2024

T4C signed a sales partner agreement with Techtouch.
ー Strong support for corporate DX promotion through advanced system utilization ー

March 11, 2024

System Support was honored with Creator Workflow Partner of the Year at the ServiceNow 2024 Partner Awards.

March 22, 2024

Presentation of the results of the training of XR engineers through the KIT Co-op Education Program, an industry–university cooperativeeducation program at Kanazawa Institute of Technology.
Presentation of MR content for Microsoft HoloLens 2 that students researched and developed during the program.

March 22, 2024

Signed a distributorship agreement with Snowflake.

March 26, 2024

System Support won first place in Snowflake's Partner Recognition Awards "The 1st SnowPro Award."

March 26, 2024

Organized “System Support presents ‘Toshiie-to-Matsu’ Kanazawa Castle Relay Marathon 2024 ー Haru-no-Jin ー”© 2024 System Support Inc.

26

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

Company”) for the purpose of providing investors with an understanding of the current
status of Our Company.
The contents of this document are prepared based on economic, social, and otherconditions generally recognized as prevailing at the time this report was prepared, as wellas certain assumptions that we have judged to be reasonable, but may be subject to change
without notice due to changes in the business environment or other reasons.
The materials and information provided in this presentation include so-called “forward
looking statements.” These statements are based on current expectations, projections, andassumptions with risks and involve uncertainties that could cause results to differ materiallyfrom those in the statements.
Such risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions such as interest rate and currency
exchange rate fluctuations.
For further information, please contact:
Investor Relations, Administrative Planning Department, System Support Inc.
TEL: 076-265-5151 E-mail: ir@sts-inc.co.jp© 2024 System Support Inc.

27

Thank you