Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2020
[Japanese GAAP]May 18, 2020
Company name: NIPPON SYSTEMWARE CO., LTD.
Stock exchange listing: Tokyo
Code number: 9739
URL: https://www.nsw.co.jp/
Representative: Shoji Tada
President (Representative Director)
Contact: Yuzuru Suka
Executive Corporate Officer and Member of the Board
Phone: 03-3770-1111
Scheduled date of Annual General Meeting of Shareholders: June 25, 2020
Scheduled date of commencing dividend payments: June 26, 2020
Scheduled date of filing annual securities report: June 25, 2020
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 01, 2019 to March 31, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year endedMarch 31, 2020
38,273
6.0
3,860
15.1
3,898
14.4
2,668
16.7
March 31, 201936,107
7.8
3,354
14.1
3,407
14.5
2,286
10.7
(Note) Comprehensive income:Fiscal year ended March 31, 2020:¥2,661 million [16.1%]
Fiscal year ended March 31, 2019:¥2,292 million [11.2%]
Basic earnings per Diluted earnings per Rate of return onshareshareequityYen
Fiscal year ended
March 31, 2020
179.08March 31, 2019
153.47(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Ordinary profit tototal assets ratio

%

13.2
12.5
Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:

Operating profit to
net sales ratio

%

%

13.3
12.7
¥
¥

10.1
9.3
- million- million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2020
March 31, 2019
(Reference) Equity:

Net assets

Million yen

Million yen

30,51628,211
As of March 31, 2020:
As of March 31, 2019:

Capital adequacy ratio¥¥

21,372
19,196
21,372 million
19,196 million

Net assets per share%

Yen

70.0
68.0

1,434.46
1,288.36(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2020
March 31, 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

3,887
2,657

(306)
(424)

(492)
(419)

11,4888,402

2. Dividends
Annual dividends
1st2nd3rdquarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

YenYenYenYen

Yen

Million yen%%March 31, 2019

-

12.50

-

17.50

30.00

446

19.5

2.4

March 31, 2020

-

15.00

-

15.00

30.00

446

16.8

2.2

-

----

Fiscal year ending
March 31, 2021-

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2020 :Commemorative dividend- yenSpecial dividend- yen
・ The dividend forecasts are unconfirmed because it is difficult to reasonably calculate them due to the effects of the newcoronavirus.We will announce them as soon as possible when they become calculable.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 01, 2020 to March 31, 2021)
・ The consolidated financial results forecasts are unconfirmed because it is difficult to reasonably calculate them due to theeffects of the new coronavirus.We will announce them as soon as possible when they become calculable.
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNew(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2020:
14,900,000 shares
March 31, 2019:
14,900,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2020:
395 shares
March 31, 2019:352 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2020:
Fiscal Year ended March 31, 2019:14,899,611 shares
14,899,668 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 01, 2019 to March 31, 2020)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

36,25534,059

6.4
7.4

3,698
3,288

12.5
14.5

3,766
3,367

11.9
14.4

2,585
2,267

14.0
10.1

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2020
March 31, 2019

YenYen173.51152.18-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2020
March 31, 2019
(Reference) Equity:

Net assets

Million yen

29,79627,457
As of March 31, 2020:
As of March 31, 2019:

Capital adequacy ratio

Million yen¥
¥20,985
18,884
20,985 million
18,884 million

Net assets per share%

Yen

70.4
68.8

1,408.45
1,267.42※This Consolidated Financial Report is not subject to audit procedures by certified public accountants or auditing firm.

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31,2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeElectronically recorded monetary claims operating
MerchandiseWork in process
Supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netTools, furniture and fixtures, netLand
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31,2020

8,410
9,409

11,488
8,844

239

94

349
748
3234
19,395

226
837
2
321
21,815

2,226
305
3,861
14
6,407

2,048
328
3,861
3
6,241

104
31
135

81
36
117

30
1,203
1,051
(12)
2,273
8,816
28,21131
1,234
1,089(12)
2,341
8,701
30,516

(Million yen)
As of March 31,2019Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for loss on construction contracts
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
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-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of March 31,2020

2,412
951
395
1,268
19
1,731
6,779

2,593
730
548
1,023221
1,671
6,789

22

2,178
55
2,235
9,015

2,295
57
2,354
9,144

5,500
86
13,602(0)19,1885,500
86
15,786(0)21,3723312(7)
7
19,19628,2119(12)021,37230,516

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Corporate officer' compensations
Salaries and bonuses
Retirement benefit expenses
Welfare expensesCommunication and transportation expenses
Outsourcing expenses
Rent expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Rental income
Dividend income of insuranceCommission income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Loss on transfer of receivables
Foreign exchange losses
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assetsLoss on sales of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes for prior periods
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the fiscal year
ended March 31,2020

36,10729,5196,587

38,27330,987
7,285

127
168
1,402
63
275
177
163
110
744
3,233
3,354

140
148
1,475
66
281
183
194
119
815
3,425
3,860

6
10
6
9
22
54

6
8
6
11
11
43

1
0
2
3,407

0
3
1
0
5
3,898

0
0

1
1

7
1
8
3,398
1,25811(157)
1,112
2,286
2,286

16
926
3,873
1,233
(28)
1,204
2,668
2,668

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2019ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

For the fiscal year
ended March 31,2020

2,286

2,668

1(5)
1062,292

0(2)
(4)
(6)
2,661

2,292

2,661

Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2019(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Capital surplus

5,500

Retained earnings

86

11,725

Total shareholders'equityTreasury shares(0)

17,311

(409)

(409)

2,286

2,286(0)

(0)

--

1,876

(0)

1,876

5,500

86

13,602(0)

19,188

Accumulated other comprehensive income
Valuation difference Foreign currency
Total accumulated
Remeasurements ofon available-for-saletranslation
other comprehensive
defined benefit planssecurities
adjustment
incomeTotal net assets

Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

218(18)117,312(409)
2,286(0)1(5)

10661(5)

106

1,883

312(7)

719,196

For the fiscal year ended March 31,2020(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Capital surplus

5,500

Retained earnings

86

13,602

Treasury shares(0)

Total shareholders'equity
19,188

(484)

(484)

2,668

2,668
(0)(0)--

2,183(0)

2,183

5,500

86

15,786(0)21,372

Accumulated other comprehensive income
Valuation difference Foreign currency
Total accumulated
Remeasurements ofon available-for-saletranslation
other comprehensive
defined benefit planssecurities
adjustment
incomeBalance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

312(7)

7

Total net assets

19,196(484)2,668
(0)
0(2)

(4)

(6)

(6)

0(2)

(4)

(6)

2,176

3

9(12)

021,372

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability
Loss on retirement of non-current assetsDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Decrease/increase in consumption taxes payable
Other, net
Subtotal
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments of leasehold and guarantee deposits
Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the fiscal year
ended March 31,2020

3,398
460(5)
279

3,873
475(245)

(3)

221

19
112
7(726)(258)
144
102(25)89
3,595(937)02,657(19)
108
16714
34
170
69153(244)
5,327(1,440)
03,887(230)0(35)(18)
(139)
(424)

(191)
22
(28)
(16)
(92)
(306)

(409)
(9)
(419)

(483)
(8)
(492)

(5)

(2)

1,808
6,593
8,402

3,085
8,402
11,488