Supplementary Material for the Q3 FY09/2023
42nd Fiscal Year
Systemsoft Corporation
TYO: 7527

August 10, 2023

CONTENTS• FY09/2023 Third Quarter Financial Summary• FY09/2023 Third Quarter Financial Results
Reporting by Segment• FY09/2023 Earnings Forecast• Appendix

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1

FY09/2023 Third Quarter

Financial Summary

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Summary of Consolidated Financial Results for 3Q FY09/2023
Although changes in the contract will cause some delay,
Progress generally in line with internal plans
3Q FY09/2022

3Q FY09/2022

Amount%Amount%Net sales3,314

100%

2,474

100%

74.6%

Gross profit

729

22.0%

660

26.7%

90.4%

SG&A expenses

719

21.7%

620

25.1%

86.2%

Operating income

100.3%

391.6%

378.4%-21-0.7%

20.1%(Millions of yen)

YoY change

Net income

attributable toshareholders of theparent company

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Net sales quarterly changes (Cumulative period)

Sales declined YoY due toChanges in contract for some projects in system development.
(Millions of yen)

4,920

4,704

3,556

3,314

2,863
2,448

2,125

2,474

2,217
1,629

1,426

1,148

1,080

833

647

1Q

2Q

3Q

FY09/2020

Copyright©Systemsoft Corporation

4Q

1Q

2Q

3Q

FY09/2021

4Q

1Q

2Q

3Q

FY09/2022

4Q

1Q

2Q

3Q

FY09/2023

4Operating Income Quarterly Changes (Cumulative Period)

High-margin consulting projects also contributed tothe company's return to profitability in 3Q.
In 3Q alone profit increased approx. 100 million yen

265

328

354

(Millions of yen)

382

377
Projects concentrated
in 4Q

39

10-130

1Q

-180
2Q

-192
3Q

FY09/2020

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Large-scale systemmodification project
Operating income increased
in line with orders received

-44

-26

1Q

2Q

-34

-57

-251
4Q

1Q

2Q

3Q

FY09/2021

4Q

3Q

FY09/2022

4Q

1Q

2Q

3Q

FY09/2023

5

Balance Sheet(Millions of yen)

4Q
FY09/2022

3Q
FY09/2023

Increase/
Decrease

Current assets

3,994

3,462

-532

Fixed assets

3,230

3,188

-41

Current liabilities

775

557

-218

Fixed liabilities

583

410

-172

Net assets

5,865

5,683

-182

Capital stock

1,706

1,706

0

Capital surplus andothers

4,226

4,059

-166

7,224

6,651

-573

Total assets

Copyright©Systemsoft Corporation6FY09/2023 Third Quarter

Financial Results by Segment

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About the Segment

Two pillars of business: technology business and open innovation businessTechnologyOpen innovation

SS Cloud Series for real estate operators andresponsible for system development
for major companies and public sector

Creation of ecosystems throughinter-company collaboration andfocus on local development and knowledge sharing% of net sales% of net sales

74.1

25.9

SaaS/RPASS Payments

fabbit (DX linkage)

System developmentand solutions

Consulting

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About SS Cloud Series

Promoting “ReTech" (Real Estate x Technology)

Application

Contract
Complete provision of important mattersand contract documents in the cloudComplete the entire processfrom application to screening on the web

Reservation for showing

Room check

Automatic reservation of previews
24 hours a day, 365 days a year

Property confirmation
Automated voice and chat response
on property offers

Vacancy list

Complete room checks
when moving in with a smartphone

Contract

Preview

Tenants’
EventsSearchapartment

Moving in(Rush service)
Trouble-shooting of housing equipment

Leaveout

Repair check
Repair status reports
by contractors via smartphone

Real-time registration andinquiry of room availability

Automated matching

PatrolAI automatically suggests properties
that match applicants’ criteria

Improved productivity of property, landlord
and vendor patrols

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9

SS Cloud Series Usage Status
Achieved one of the largest* installations in Japan through proactive marketing
Number of locations used(cumulative total)

Number of companies using theservice (cumulative total)+13,168 locations+11,066

companies

38,551

41,372

63,733

46,29444,53935,22846,071

31,45650,56554,67958,106

61,78539,45826,072

1Q

2Q

3Q

FY09/20202

4Q

1Q

2Q

FY09/2023

3Q

1Q

2Q

3Q

FY09/2022

4Q

1Q

2Q

3Q

FY09/2023

The ”Cumulative total number of locations used" is simply the sum of the number of locations used by the agent and management company for each cloud.
(For management companies, head offices, branches, sales offices, and stores are counted among those that applied.)
The "Cumulative total number of companies using the system" is simply the total number of companies using the service of the agent and management company for each cloud.
*Based on our own research.

Copyright©Systemsoft Corporation10

SS Payment Series Introduction Status

In cooperation with SS Cloud Series
Developing services to further improve operational efficiency
Money transfer service

Account transfer service

Credit card
payment services

Total number of cases(Sept. 2021 - Sept. 2023 3Q)

Total number of cases(Sept. 2021 - Sept. 2023 3Q)

Total settlement amount(Sept. 2021 - Sept. 2023 3Q)

416,453 cases

88,516 cases

318,174

149,567

17,374
FY09/2022

9.9
bn yen51,666+98,279

FY09/2021

14.6JPY bnabout

3Q FY09/2023

No installation fee, no monthly fee,no need to open an accountSignificant reduction in remittancetransfer fee

FY09/2021+36,850
FY09/2022

3Q FY09/2023

No need to confirm errors in signing orstamping
Dramatically reduced account transfer fees

4.7
bn yenFY09/2021

approx. +4.7 bn yen

FY09/2022

3Q FY09/2023

Real estate leasing related transaction
including security deposit, key money, etc.
Settlement services for utilizing credit card to
pay the lump-sum deposit.

*This product is a service to introduce customers to the management company.

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11About system development and businessWe provide a full range of services from development to maintenance and operation.
Offered to meet the needs of users in a wide range of industries
One-stop service x consulting

Requirement
Definition

By combining the strengths of our consulting
services, which are based on years ofexperience, know-how, and knowledge, withMaintenanceOperation

Designthe general system development process, weare able to develop products that provide
Testhigher customer satisfaction.

Business
consultant

Development

Example of a company

Banks

Insurance

Retail & SalesManufacturer

Incorporated
educational institution

RMSERPEC Site Building System

Business Support Systems

Academic Support Systems

Digitize a large number ofregulations and manuals
used within the bank.
Contributes to improved
operational efficiency
and cost reduction.

A core business systemcentered on a hostsystem.
Building advanced
systems that requirestability and accuracy.

The package allows for
project and productadditions, inventory
management, and even
effectivenessmeasurement throughaccess analysis.

A system that can beused to manage sales
activities and results, andto develop more effective
sales and management
strategies.

A portal system thatallows students to accessthe school's homepage,
as well as notifications ofcredit acquisition status
and information onschool closures andmake-up classes.

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12

FY09/2023

Earnings Forecast

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Forecasts for the fiscal year ending September 30, 2023
Downward revision of net sales was made due to conversion of part of thesystem development in the technology business to consulting-based participation
Operating income and other figures are expected to be in line with the plan.
FY09/2023

FY09/2022(Millions of yen)

Revised Forecast

ActualFY09/2023

Previous forecast

4,704

3,800

4,400

Operating income

382

310

310

Ordinary income

377

220

220

201

110

110

Net sales

Net income

Attributable to Shareholdersof the parent company

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FY09/2023 Key measures

Important measures

Strengthen SaaS business•

Expand market share by increasing the number of companies
and locations using the service
Expand lineup by developing and launching new services•Expansion of revenue base••Developing new customers through proactive marketing and marketing activities
Upselling existing customers by quickly identifying customer needs

Building a foundation aimed at promoting important measures

Reinforcement ofbusinessfoundation

Investment in human resources•••Strengthen recruitment of new graduates and high-level human resources
with the ability to make an immediate impact
Optimize and streamline development programs, including training
Appropriate reallocation due to business portfolio transformation

Strengthening Corporate Governance

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15

Appendix

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STRATEGYTechnologyOpen
Innovation

Offering various types of SaaS.
Acquire high market share

Alliance and collaboration withmore than 10,000 fabbitmembers,
one of the largest in Japan

Improve the quality of services
Launch of Paid Plansx

Mainly incorporation ofSaaS technologies
and business models

Adding New Value
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Medium- to Long-term Growth Image

Technology andOpen innovation

Growth driver

Promoting DX Society

SaaS and RPA Business(Robotic Process Automation)

Expand business andincrease corporate value

Stable revenue base

Current

System development andsolution businessTechnology
cooperatecooperate

Open Innovation

Expanding collaboration with a membership companies consisting of multiple industries
Expand and strengthen our services and enter new business areas
Copyright©Systemsoft Corporation18

This document was created by the Company for the purpose of understanding the current state of Systemsoft Corporation (hereinafter referred to as the "Company"). In addition, theplans and forecasts described in this document are determined and predicted by the Company based on the information at the time of creation. Plans and prospects may change
significantly due to changes in the business environment in the future. In that event, we are not obligated to update or amend the contents of this announcement. Based on the above,
investors are requested to invest at their own risk.

Copyright©Systemsoft Corporation19