Supplementary Material for the Q1 FY09/2023
42nd Fiscal Year
SystemSoft Corporation
TYO: 7527

February 10, 2023

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

Copyright©Systemsoft Corporation

1

FY09/2023 First Quarter Financial Results

Financial Results Summary

Copyright©Systemsoft Corporation2

Summary of consolidated financial results for 1Q FY09/2023
Progress largely in line with plan
Some projects are scheduled to be booked from 2Q onward.
Promote each project to return to profitability at an early stage and achieve the full-year plan
1Q 2022

1Q 2023

Amount%Net sales

1,080

100%.

833

100%.

77.2%

Gross profit

197

18.3%

181

21.8

92.0%

SG&A expenses

241

22.3%

216

26.0%

89.7%

Operating income-44-4.1%-34-4.2%

ー-65-6.1%-83-10.0%ー(Millions of yen)

Net income

attributable toshareholders of the parentcompany

Copyright©Systemsoft Corporation

AmountYoY%

3

Net sales quarterly changes (Cumulative period)

Technology business projects are progressing well.
Partial closure of fabbit stores due to redevelopment is expected to beresolved in the second half of the fiscal year.
(Millions of yen)

4,920

4,704

3,556

3,314

2,863
2,448

2,125
1,426

2,217

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
FY09/2023

4

Operating Income Quarterly Changes (Cumulative Period)

By refining unit prices and ongoing cost control
Operating income improved from the same period of the previous year
(Millions of yen)

328

354

382

377
Projects
concentrated in 4Q

265

10-130-180-192

Large-scale systemmodification project
Operating income increased inline with orders received-44-26

1Q

1Q

2Q-34-251
1Q

2Q

3Q

FY09/2020

Copyright©Systemsoft Corporation

4Q

2Q

3Q

FY09/2021

4Q

3Q

FY09/2022

4Q

1Q
FY09/2023

5

Balance Sheet(Millions of yen)

4Q
FY09/2022

1Q
FY09/2023

Increase/
Decrease

Current assets

3,994

3,543

-450

Fixed assets

3,230

3,292+61

Current liabilities

775

661

-114

Fixed liabilities

583542-40

Net assets

5,865

5,631-233

capital stock

1,706

1,706

0

Capital surplus andothers

4,226

3,973-253

7,224

6,835-389

Total assets

Copyright©Systemsoft Corporation

6

FY09/2023 First Quarter Financial Results

Financial Results by Segment

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7

About the Segment

Two pillars of business: Technology Business and Open Innovation
Business
TechnologyOpen 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

73.0%

27.0%

SaaS/RPASS Payments

fabbit (DX linkage)

System Development
andSolutions

ConsultingCopyright©Systemsoft Corporation8About SS Cloud Series

Technology

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 preview

Room check

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

Property confirmation
Automated voice and chat response
to 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

Automatic suggesting

PatrolAI automatically suggests properties
that match applicant’s criteria

Improved productivity of property, landlord
and vendor patrols

Copyright©Systemsoft Corporation9

SS Cloud Series usage status

Technology

Achieved one of the largest* installations in Japan throughaggressive sales activities
Number of companies using thesystem (cumulative total)

Number of locations used(cumulative total)+15,300 companies35,228

38,551+18,648 locations
41,372
46,071

31,456

58,10639,45826,072

1Q

50,56554,6792Q

3Q

FY09/2022

4Q

1Q

FY09/2023

1Q

2Q

3Q

FY09/2022

4Q

1Q

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

Efforts to expand SS Cloud Series

Technology“SKIPS" collaboration is expanding, totaling now to 22 companies
Strongly promoting fintech for real estate business(1) Application
data entry(6) Notification of
screening results

applicantReal estate broker

Guarantee
screening, etc.

Data authentication(2) Linkage ofapplication data

Provide tenant
application services

ARC Corporation（Iwate)•Rent guarantee company

Result check(3) Data confirmation(5) Confirmation ofscreening results

Online•Property management company(4) Notification of screening results

Achievements in Collaboration (in Japanese syllabary order)•Epos Card Co., Ltd. (Tokyo)•alpha Co., Ltd. (Kagoshima)

Anshin Guarantor Service Co., Ltd. (Tokyo)•

CREDENCE CORPORATION (Tokyo)•

L’s SUPPORT Co., Ltd (Tokyo)•

Orico Forrent Insure Co.,Ltd. (Tokyo)•

JACCS Co.,Ltd. (Tokyo)•

Global Trust Networks Co., Ltd. (Tokyo)•J-LEASE Co., LTD. (Oita)•SHIN NIHON CREDIT GUARANTEE CO.,LTD. (Tokyo)•Zenkoku Rent Guaranty Corporation (Tokyo)•Zenhoren Co., Ltd. (Okinawa)•nap. Inc. (Tokyo)•Nihon Safety Co. Ltd. (Tokyo)•Japan Rental Apartment Guarantee Organization (Osaka)•Hot Hosyou Inc. (Hokkaido)•

RACCOON RENT, Inc. (Tokyo)•REST SOLUTION K.K. (Tokyo)•

Casa Inc. (Tokyo)•

JPMC finance Co., Ltd. (Tokyo)•

APLUS Co., Ltd. (Osaka)

Copyright©Systemsoft Corporation11

SS Payment Series installation status

Technology

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

Direct debit service

Credit card
payment services

Total number of cases(Sept. 2021 - Sept. 2023 1Q)

Total number of cases(Sept. 2021 - Sept. 2023 1Q)

Total settlement amount(Sept. 2021 - Sept. 2023 1Q)

359,300 cases

63,617 cases+11,951+41,126

cases

cases

11 JPY bn
9.9 bnyen

51,666318,174

149,567about

4.7 bn yen+ approx.

1.1 bn yen

17,374
FY09/2021

FY09/2022

FY09/2021

1Q FY09/2023
FY09/2021

No installation fee, no monthly fee, noneed to open an accountSignificant reduction in transfer fees

FY09/2022

FY09/2022

1Q FY09/2023

1Q FY09/2023

No need to confirm errors in descriptionand stamping
Significantly reduced fees for accounttransfers

Settlement service of lump-sum
payment by credit card for real estate
rental, such as Deposits, key money,etc.

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

Copyright©Systemsoft Corporation

12

SS Payment Series: new service "BunChinPay”

Technology

Initiated collaboration with APLUS Co., Ltd. on online credit service for
upfront payment, reducing burden on the lessee
Conventional

All at once
Funds Needed

Upfront payment such as deposit, key money,etc. is a big burden
In some cases, they hesitate to sign a lease.

BunChinPay

A total of
36 charges are possible

Allowing installment payments as needed.
Lease agreements can be concluded smoothly.

“BunChinPay” is the name used by SystemSoft Corporation and SS Technologies for the "WEB Credit for lump-sum payment" service.
This service is an application for shopping credit by APLUS Co., Ltd. , and there will be screening before using this service.

Copyright©Systemsoft Corporation13

About system development and businessTechnology

We provide a full range of services from development to maintenanceand 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, with

MaintenanceOperation

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

Businessconsultant

Development

Example of a company

Banks

Insurance

Retail & Sales

Manufacturer

Incorporated
educational institution

RMS

ERP

EC 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.

Copyright©Systemsoft Corporation14

fabbit topics (1)Open innovation

Renewal at some fabbit stores nationwide
Aiming to expand membership and increase member satisfaction

fabbitGG Across Fukuoka

1-1-1 Tenjin, Chuo-ku, Fukuoka City
Located in the central district of Fukuoka
fabbitGG Across Fukuoka
Conveniently located near Government
facilities, including
Fukuoka City Hall, Tax Office, Legal Affairs,Bureau, etc. a perfect setup for startup
companies

Highly popular in the Kyushu area along with the Hakata station-front office area
Active innovations is born every day in this spacious location.

Copyright©Systemsoft Corporation

15

fabbit topics (2)Open innovation

Address registration available in 1 minute from Tokyo Station.
Opened virtual office

fabbit Marunouchi Coworking Virtual

1 Marunouchi, Chiyoda-ku, Tokyo Open campaign
Regular monthly fee 11,000 yen (tax included)
Administration fee 22,000 yen (tax included)

Special Price →3,980 yen/month, 0 yen administration fee

 Annual Payment Open Campaign*Limited to the first 100 customers.

Special Price →39,800 yen per year, 0 yen administration fee*There are some conditions for applying the campaign.

https://fabbit.co.jp/campaign/marunouchi_opencp/
Copyright©Systemsoft Corporation

16

FY09/2023

Earnings Forecast

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Forecast for the fiscal year ending September 30, 2023
System development and solutions business remained strong
Further expand the number of SaaS installations and monetize them for the futuresolid forecast for the full year.

FY09/2022(Millions of yen)

FY09/2023

Actualforecast

4,704

4,400

Operating income

382

310

Ordinary income

403

220

225

110

Net sales

Net income

Attributable to: Shareholders of theparent company

Copyright©Systemsoft Corporation18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 aggressive sales 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

Copyright©Systemsoft Corporation19

Appendix

Copyright©Systemsoft Corporation20

STRATEGYTechnologyOpen
Innovation

Offering various types of SaaS.
Acquire high market share

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

Improve the quality of services
Launch of Paid Plansx

Mainly to incorporate
SaaS technologies
and business models

Adding New Value
Copyright©Systemsoft Corporation21

Medium- to Long-term Growth Image

Technology andOpen innovation.

Growth driver

Expand business andincrease corporate value

SaaS and RPA(robotic process automation)
Business

Promoting DX Society

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 Corporation22

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 Corporation23