Updated: February 14, 2023

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
February 10, 2023
Listed company name:

Systemsoft CorporationListing

Tokyo Stock Exchange

Code number7527

URL:

https://www.systemsoft.co.jp/

Representative

President and Representative Director:

Contact person

General Manager, Administration Division: Yasunori Tomita, (TEL) +81 (0)92-732-1515

Haruki Yoshio

Scheduled date to file quarterly securities report: February 14, 2023
Scheduled start date to commence dividend payments: －Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings: No1.

(Yen amounts are rounded down to millions, unless otherwise noted.)
Consolidated Financial Results for the three months ended December 31, 2022
(From October 1, 2022 to December 31, 2022)(1) Consolidated financial results (cumulative)(% is Year-on-year rate of increase / decrease)
Net Sales

Three months ended

Quarterly net income
attributable to owners ofparent

Ordinary income

million yen%million yen%million yen%million yen%

833

-22.8

-34

―-77―-83―

1,080

-5.9

-44

―

-53

―

-65

―

December 31, 2022
December 31, 2021
Note: Comprehensive income

Operating Income

For the three months ended, December 31, 2022
For the three months ended, December 31, 2021
Quarterly
Net earnings per share

Three months ended¥ - 64 million yen (―%)
¥ - 75 million yen (―%)

Quarterly
Diluted net earnings pershareyenYen

December 31, 2022

-0.99

―

December 31, 2021

-0.78

―

(2)Consolidated financial condition
Total Assets
Three months ended

December 31, 2022

Net Assets

Shareholders’ equity ratio

million yen

million yen

%

6,835

5,631

81.9

5,865

80.7

Fiscal year ended

September 30, 2022

7,224

Reference: Equity capital As of December 31, 2022
As of September 30, 2022

¥5,599 million¥5,833 million

1/9Updated: February 14, 2023

2. Cash dividends
Annual dividends
First quarter-end Second quarter-end

Third quarter-end

yen

yen

yen

yen

yen

―

0.00

―

2.00

2.00

―

――

―

Fiscal year ended

September 30, 2022
Fiscal year ending

September 30, 2023

Fiscal year-endTotal―

Fiscal year endingSeptember 30, 2023
(Forecast)

Note: Revision to the forecast of cash dividends most recently announced: None
The year-end dividend for the fiscal year ending September 30, 2023 is undecided at this time.

3. Forecast of consolidated financial results for the fiscal year ending September 30, 2023 (October 1, 2022 – September30, 2023)(% increase or decrease from the previous year)
Net sales

Full-year

Profit attributable toowners of parent

Operating income

Ordinary income
million yen%million yen%yen

220-41.7

110-45.3

1.31

million yen%million yen%

4,400

-6.5

310

-19.0

Note: Revisions to the most recently announced earnings forecasts:

Earnings per shareNone* Notes(1) Changes in significant subsidiaries during the quarterly consolidated financial statements period: 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 re-display of amendments(i) Changes in accounting policies due to revisions to accounting standards: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Retrospective restatement: None(Note) For details, please refer to "1. Quarterly Consolidated Financial Statements and Key Notes (3) Notes on quarterly consolidated
financial statements (Change in accounting policy)" on page 8 of the attached materials.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

84,834,140 shares

As of September 30, 2022

84,834,140 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

32,067 shares

As of September 30, 2022

31,987 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended December 31, 2022

84,802,130 shares

Three months ended December 31, 2021

84,430,563 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
*Proper use of earnings forecasts, and other special matters
Forward-looking statements, such as each business outlook, described in this document are based on information currently
obtained by the Company and certain assumptions that it deems reasonable, and are not to the effect that the Company
promises to achieve such results. Actual results may differ materially due to various factors.
2/9Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

Table of Contents
1. Quarterly Consolidated Financial Statements and Key Notes ······································································ 4(1) Quarterly Consolidated Balance Sheet............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income Statements............................................................................................................................................................................. 6(3) Notes on quarterly consolidated financial statements ....................................................................................... 8(Notes on going concern assumptions)........................................................................................................... 8(Notes on significant changes in the amount of shareholders' equity).............................................................. 8(Change in accounting policy) ........................................................................................................................ 8(Information by Segment)............................................................................................................................... 8
2. Other ··············································································································································· 93/9

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

1. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet
Previous consolidated fiscal year
(September 30, 2022)(Unit: thousand yen)Three months ended December 31,2022(December 31, 2022)

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable and contract
assetsWork in progress
Raw materials and stored products

1,949,892

1,661,0321,547,341

1,376,100

35,04947,601

39

21

Other492,404

489,023

Reserve for bad loans-30,084-30,084

Total current assets

3,994,644

3,543,696

Building and structures (net)32,97632,089Tools, furnitures and fixtures (net)

14,15915,285

Total tangible fixed assets

47,13547,375

Goodwill

2,069,524

2,035,902

Other341,718

330,355

Total intangible assets

2,411,242

2,366,258

Fixed assets
Tangible fixed assets

Intangible fixed assets

Investments and other assets

771,782

878,411

Total fixed assets

3,230,160

3,292,045

7,224,804

6,835,741

181,058

178,913

Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable
Income taxes payable

84,827

9,662

Other

509,963

472,918

Total current liabilities

775,849

661,494

Corporate bond

280,000

260,000

Long-term debt

170,000

150,000

Asset retirement obligations

10,176

10,184Other

123,114122,177

Fixed liabilities

Total fixed liabilities
Total liabilities

4/9

583,290542,362

1,359,140

1,203,856

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

(Unit: thousand yen)Previous consolidated fiscal year
(September 30, 2022)

Three months ended December 31,2022(December 31, 2022)

EquityShareholders' equity
Capital1,706,476

1,706,476

Capital surplus
Retained earnings

3,712,343
522,094

3,542,739
438,561

Treasury stock-8,078-8,086

5,932,836

5,679,691

1,675-11,496-101,032-69,070-99,357-80,566

24,51924,519

7,665

8,241

Total net assets

5,865,664

5,631,885

Total liabilities and net assets

7,224,804

6,835,741

Total shareholders' equity
Accumulated other comprehensive income(loss)
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total accumulated other comprehensive
income (loss)
Stock acquisition rights
Non-controlling interests

5/9

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements
Quarterly Consolidated Statement of Income(Three months ended December 31, 2022)(Unit: Thousand yen)Three months ended
December 31, 2022
(October 1, 2022 toDecember 31, 2022)

Three months ended
December 31, 2021
(October 1, 2021 toDecember 31, 2021)

1,080,646
883,230

Sales
Cost of sales

833,839
652,183

Gross profit

197,416

181,655

Selling, general and administrative expenses

241,492

216,544

Operating income (loss)-44,076-34,889

Interest income
Dividend received

0275

0299

Foreign exchange gains
Subsidy income

8,214
324

―
4,827

Consulting revenue
Other

1,250
487

―
141

Total non-operating income

10,5515,267

Interest expenses
Payment Fees

3,990
10,219

3,142
6,812

Foreign exchange loss
Other

―
5,377

33,3194,399

Total non-operating expenses

19,58747,674

Ordinary income or ordinary loss

-53,112-77,296

2,851

399

2,851

399

Loss on sales of investment securities
Loss on valuation of investment securities

―
1,313

3,226
―

Loss on store closing

5,843

―

Total extraordinary loss

7,156

3,226

-57,417-80,124

8,094

2,833

8,094

2,833

-65,511-82,957-51

575-65,459-83,533

Non-operating incomeNon-operating expenses

Extraordinary gains
Gain on sales of investment securities
Total extraordinary gains
Extraordinary loss

Quarterly net Income before taxes or net loss
before adjustments to taxes, etc
Corporate tax, municipal tax and business taxes
Total corporate taxes, etc.
Quarterly net income or quarterly net loss
Quarterly net loss attributable to non-controllingshareholders
Net income attributable to owners of parent ornet loss attributable to owners of parent

6/9

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

Consolidated quarterly statements of comprehensive income(Cumulative period for consolidated first quarter, three months ended December 31, 2022)
Three months ended December 31,2021(October 1, 2021 to
December 31, 2021)(Unit: Thousand yen)Three months ended December 31,2022(October 1, 2022 toDecember 31, 2022)-65,511-82,957-2,153-13,171

Quarterly net income or loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Exchange conversion adjustment accountTotal other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders

7/9-7,968

31,962-10,121

18,790-75,633-64,166-75,581-64,742-51575

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumptions)
Nothing applicable.

(Notes on significant changes in the amount of shareholders' equity)
Nothing applicable.

(Change in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The new accounting policy prescribed by the "Guidance on Accounting Standard for Measurement of Fair Value"(ASBJ Guidance No. 31, June 17, 2021) is applied from the beginning of the first quarter of the current fiscal year,
and the new accounting policy prescribed by the Guidance is applied prospectively in accordance with thetransitional treatment prescribed in Section 27-2 of the Guidance on Accounting Standard for Measurement of Fair
Value. There is no impact on the quarterly consolidated financial statements.

(Information by Segment)
Segment Information
I. Previous Three months ended, from October 1, 2021 to December 31, 2021, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
Open
Innovation
Business

Technology
business

Other(Note)

Subtotal

Total

Sales
Sales to external customers

794,267

286,378

1,080,646―

1,080,646

Sales or transfers inside or
between segments

6

8,895

8,901

―

8,901

794,273295,273

1,089,547―

1,089,547

4,812

3,116

7,929

-63

7,865

Subtotal
Segment profit or Loss

Note: "Other" refers to business segments not included as reporting segments.

2.

Difference between the total reported segment amount and the amount recorded in the quarterly consolidated
income statement, and the main elements of the difference (related to the adjustment)(Unit: Thousand yen)

Sales

Amount
1,089,547

Total of reportable segments―

Sales in "Other" segment
Elimination of intersegment transactions-8,901
1,080,646

Sales in quarterly consolidated statements of income(Unit: Thousand yen)

ProfitAmountTotal of reportable segments

7,929

Profit in "Other" segment-63Company expenses (Note)-51.942

Operating income in quarterly consolidated statements
of income-44,076

Note: Company expenses are general and administrative expenses that do not belong to any particular reportable segment.

8/9

Consolidated Financial Results for the three months ended December 31,2022(Under Japanese GAAP)
Updated: February 14, 2023

II. Three months ended, from October 1, 2022 to December 31, 2022, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
TechnologybusinessOpen Innovation
Business

Other(Note)

Subtotal

Total

Sales
Sales to external customers

608,518

225,321833,839―

833,839

Sales or transfers inside or
between segments

―

159

159

―

159

608,518

225,480

833,998―

833,998

27,479-25,256

2,223

―

2,223

Subtotal
Segment profit or Loss

Note: "Other" refers to business segments not included as reporting segments.

2. Difference between the total reported segment amount and the amount recorded in the quarterly consolidated income
statement, and the main elements of the difference (related to the adjustment)(Unit: Thousand yen)
Sales

Amount833,998

Total of reportable segments―

Sales in "Other" segment
Elimination of inter-segment transactions-159
833,839

Sales in quarterly consolidated statements of income(Unit: Thousand yen)
ProfitAmount2,223

Total of reportable segments
Profit in "Other" segment―

Company expenses (Note)-37,113

Operating income on quarterly consolidated statement ofincome-34,889

Note: Company expenses are general and administrative expenses that do not belong to any particular reportable segment

2. Other
Nothing applicable.

9/9