Updated: May 13, 2022

Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)May 13, 2022
Listed company name:

Systemsoft Corporation

Listing

Tokyo Stock Exchange

Code number

7527

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: May 13, 2022
Scheduled start date to commence dividend payments: －Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings: Yes(Yen amounts are rounded down to millions, unless otherwise noted.)
Consolidated financial results for the six months ended March 31, 2022
(From October 1, 2021 to March 31, 2022)(1) Consolidated financial results (cumulative)1.

(% is Year-on-year rate of increase / decrease)
Net Sales

Operating Income

Net income attributable toowners of parent
quarterly

Ordinary income

Six months ended

million yen%

million yen%

million yen%

million yen%

March 31, 2022

2,217

-9.4

-26

―

-23

―

-54

―

2,448

71.6

328

―

319

―

509

―

March 31, 2021
Note: Comprehensive income

For the six months ended, March 31, 2022 - ¥73 million yen (―%)
For the six months ended, March 31, 2021 ¥501 million yen (―%)

Quarterly
Net earnings per
share

Quarterly
Diluted net earnings per
share

Six months ended

yen

yen

March 31, 2021

-0.64

―

March 31, 2020

6.82

6.81

Note: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied fromthe beginning of the first quarter of the fiscal year ended December 31, 2021. The figures for the second quarter of the fiscal year
ended March 31, 2022 are after the application of the said accounting standards. As a result, the percentage change from the same
period of the previous year is based on the calculation method using different standards.

(2) Consolidated financial condition
Total Assets

Net Assets

Equity-to-asset ratio

million yen

million yen%

March 31, 2022

7,071

5,672

79.8

September 30, 2021

7,467

5,838

77.6

As of

Reference: Equity capital

As of March 31, 2022
¥5,640 million
As of September 30, 2021
¥5,794 million
Note: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied fromthe beginning of the first quarter of the fiscal year ended December 31, 2021. The figures for the second quarter of the fiscal year
ended March 31, 2022 are after the application of the said accounting standards, etc.

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Updated: May 13, 2022

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

Third quarter-end

Fiscal year-end

Total

Fiscal year ended

yen

yen

yen

yen

yen

September 30, 2021

―

0.00

―

2.00

2.00

―

0.00
―

―

―

Fiscal year ending

September 30, 2022
Fiscal year ending

September 30, 2022
(Forecast)

Note: Revision to the forecast of cash dividends most recently announced: None
The year-end dividend for the fiscal year ending September 30, 2022 is undecided at this time.

3. Forecast of consolidated financial results for the fiscal year ending September 30, 2022 (October 1, 2021 – September
30, 2022)(% increase or decrease from the previous year)

Sales

Full-year

Operating income

Ordinary income

Profit attributable toEarnings per shareowners of parent

million yen%

million yen%

million yen%

million yen

%

yen

5,000

1.6

400

5.9

370

8.0

220

-54.5

2.62

Note: 1. Revisions to the most recently announced earnings forecasts:
None
2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the current first quarter consolidated accounting period. As a result, the above forecast of consolidated
financial results is based on the figures after the application of these accounting standards. As a result, the percentage change
from the previous fiscal year is based on a different calculation method.

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Updated: May 13, 2022

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): 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(*) For details, please refer to “1. Quarterly Consolidated Financial Statements and Key Notes (4) Notes on quarterly
consolidated financial statements (Change in accounting policy)" on page 11 of the supplemental document.
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

84,834,140 shares

As of March 31, 2021

84,136,240 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

31,924 shares

As of March 31, 2021

31,864 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2022

84,614,347 shares

Six months ended March 31, 2021

74,731,920 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.

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

Table of Contents
1. Quarterly Consolidated Financial Statements and Key Notes ······································································ 5(1) Quarterly Consolidated Balance Sheet ........................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements ......................................................................................................................................................... 7(3) Consolidated Statements of Cash Flows ........................................................................................................ 9(4) Notes on quarterly consolidated financial statements.................................................................................... 11(Notes on going concern assumptions)11(Notes on significant changes in the amount of shareholders' equity)

11(Change in accounting policy)

11(Information by Segment)

13(Significant subsequent events)

15

2. Other ·············································································································································· 15

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

1. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Unit: thousand yen)Six months ended
March 31, 2022
(October 31, 2021 toMarch 31, 2022)

Fiscal year ended
September 30, 2021
(October 31, 2020 to
September 30, 2021)

ASSETS
Current assets
Cash and deposits

2,081,361

1,227,297

Notes and accounts receivable
Notes and accounts receivable-trade andcontract assets
Work in progress

1,678,727――

2,148,361

122,725

188,242

Raw materials and stored products
Other

21

71

281,093359,847

Reserve for bad loans-5,397-5,397

Total current assets

4,158,531

3,918,422

Property, plant and equipment (net)27,85328,753Tools, furniture and fixtures (net)19,31818,136

Total tangible fixed assets

47,172

46,889Goodwill

2,044,403

1,981,053

Other414,314385,673

Total intangible assets

2,458,718

2,366,726

Investments and other assets

803,055

739,522

Total fixed assets

3,308,946

3,153,139

7,467,478

7,071,562

Notes and accounts payable

436,292

447,927

Short-term loans payable

200,000

100,000

Income taxes payable

82,01026,243

Order loss reserve

4,929

4,929

Other

379,880

345,085

Total current liabilities

1,103,113

924,186

Bonds

380,000

330,000

Asset retirement obligations

10,145

10,160Other

135,696

134,949

Fixed assets
Tangible fixed assets

Intangible fixed assets

Total assets
LIABILITIES AND EQUITYCurrent liabilities

Fixed liabilities

Total fixed liabilities
Total liabilities

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525,841

475,110

1,628,954

1,399,296

Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(Unit: thousand yen)
Fiscal year ended
September 30, 2021
(October 31, 2020 to
September 30, 2021)

Six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)

EquityShareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock

1,663,904

1,706,476

3,879,259
278,1033,712,343
266,867-8,064-8,071

5,813,203

5,677,616

Exchange conversion adjustment account-2,523-15,743

5,279-42,892

Total other comprehensive income-18,266-37,613

35,686

24,519Total shareholders' equity
Accumulated other comprehensive income(loss)
Other securities valuation differences

Stock acquisition rights
Non-controlling interests

7,900

7,742

Total net assets

5,838,523

5,672,265

Total liabilities and net assets

7,467,478

7,071,562

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income
Statements
Quarterly Consolidated Statement of Income
Cumulative period for consolidated second quarter, six months ended March 31, 2022
(Unit: Thousand yen)
Current six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)

Previous six months ended
March 31, 2021
(October 1, 2020 toMarch 31, 2021)

2,448,693
1,669,878

Sales
Cost of sales

2,217,842
1,771,063

Gross profit

778,815446,779

Selling, general and administrative expenses

449,951473,674

Operating income

328,863-26,894

Interest income
Dividend received

1,298
247

274
275

Foreign exchange gains
Subsidy income

13,286
1,722

28,271
3,203

Consulting revenue
Other

7,500
357

1,250
496

Total non-operating income

24,413

33,770Interest expenses
Fees

4,395
24,096

7,938
12,029

Other

5,748

10,559Non-operating income

Non-operating expenses

34,24030,527

319,036-23,651

Gain on sales of investment securities
Marginal gain on step acquisitions―
238,106

3,414―

Total extraordinary gains

238,106

3,414

1,730
―

―
3,063

―
―

2,068
13,037

1,730

18,168555,411-38,405

46,14915,961-540―

Total non-operating expenses
Ordinary income
Extraordinary gains

Extraordinary loss
Fixed assets retirement losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on store closing
Total extraordinary loss
Quarterly net Income before taxes or net loss
before adjustments to taxes, etc
Corporate tax, municipal tax and business taxes
Adjustment to corporate taxes, etc
Total corporate taxes, etc.

45,60915,961

Quarterly net income or quarterly net loss

509,802-54,366

-138

-157

509,940-54,209

Quarterly net loss attributable to non-controllingshareholders
Net income attributable to owners of parent or net
loss attributable to owners of parent

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

Consolidated quarterly statements of comprehensive income
Cumulative period for consolidated first quarter, six months ended March 31, 2022
(Unit: Thousand yen)
Current six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)

Previous six months ended
March 31, 2021
(October 1, 2020 toMarch 31, 2021)

Quarterly net income
Other comprehensive income
Other securities valuation difference
Exchange conversion adjustment accountTotal other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income for ownersof parent
Quarterly comprehensive income fornon-controlling shareholders

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509,802-54,366

4,542-12,518

7,802-27,149-7,976-19,346

501,826-73,713501,964-73,555

-138

-157

Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(3) Consolidated Statements of Cash Flows(Unit: Thousand yen)
Current six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)

Previous six months ended
March 31, 2021
(October 1, 2020 toMarch 31, 2021)

Cash flows from operating activities
Quarterly net income before tax adjustments

555,411-38,405

Depreciation and amortization
Amortization of goodwill

84,81442,06975,243
63,349

Increase in allowance for loss on transfer
Interest and dividend income-8,335-1,545―-550Interest expense
Loss on disposal of fixed assets

4,395
1,730

7,938
―

―
―

-351
2,068

Loss on store closures
Net loss on step acquisitions―-238,106

13,037―

Increase (Decrease) in trade receivables
Change in trade receivables and contract
assetsIncrease (Decrease) in inventories-69,383――-469,633

6,658-63,126

Increase (Decrease) in marketable securities
Increase (Decrease) in notes and accounts
payable-trade
Increase (Decrease) in accrued liabilities
Increase (decrease) in accrued consumption
taxes
Foreign exchange losses
Other

14,954―-20,780

11,63570,20813,052

21,572-61,439-13,286
109,744-28,271-88,781560,123-564,234

Loss on sales of securities
Net unrealized losses on marketable securities

SubtotalInterest and dividends received

1,545

10,429Interest payments
Income taxes paid or refunded-5,12627,282-6,904-87,849

Cash flows from operating activities

583,824-648,558

Payments for acquisition of tangible fixed asset
Payments for acquisition of intangible fixed
assetsPayments for purchase of investment securities-4,484-5,731-778-13,454―-5,000

Proceeds from sales of investment securities
Proceeds from collection of loans receivable―
168

62,534384

Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for acquisition of shares of affiliatedcompanies
Other-8,04014,002――-27,158―-1,294―

Cash flows from investing activities-27,584

38,732

Cash flows from financing activities
Repayment of short-term loans payable―-100,000

Proceeds from issuance of stock
Payments for purchase of treasury stock―-2

73,977-6-50,000-136,017-50,000-168,208

Cash flows from investing activities

Payments for redemption of bonds
Dividends paid

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

Previous six months ended
March 31, 2021
(October 1, 2020 toMarch 31, 2021)

Cash flows from financing activities-186,019(Unit: Thousand yen)
Current six months ended
March 31, 2022
(October 1, 2021 toMarch 31, 2022)-244,238

Net increase in cash and cash equivalents

370,220-854,064

Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting
from merger
Cash and cash equivalents at end of period

1,789,340

2,081,361

147,283―

2,306,844

1,227,297

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(4) Notes on quarterly consolidated financial statements(Notes on going concern assumptions)
Nothing applicable.
(Notes on significant changes in the amount of shareholders' equity)
In the first quarter consolidated accounting period, in accordance with the resolution of the Board of Directors
meeting held on November 12, 2021, and pursuant to the provisions of Article 452, Article 459, Paragraph 1, Item 3of the Companies Act and Article 38 of the Company's Articles of Incorporation, other capital surplus was reducedby 41,279 thousand yen and then transferred to retained earnings brought forward. In addition, capital stock andcapital reserve increased by 42,571 thousand yen and 42,571 thousand yen, respectively, as a result of the exerciseof stock acquisition rights. Furthermore, capital surplus decreased by 168,208 thousand yen due to the payment ofdividends from capital surplus effective December 8, 2021. As a result, capital stock and capital surplus amounted
to 1,706,476 thousand yen and 3,712,343 thousand yen, respectively, at the end of the second quarter of the current
fiscal year.
(Change in accounting policy)
Application of Accounting Standard for Revenue Recognition, etc.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. (hereinafterreferred to as the "Accounting Standard for Revenue Recognition"). and others are applied from the beginning of
the first quarter of the current fiscal year, and revenue is recognized at the amount expected to be received in
exchange for the promised goods or services when control of the promised goods or services is transferred to thecustomer.
As a result, for made-to-order software development contracts, the Company previously applied the percentageof-completion method if the outcome of the construction activity could be estimated reliably, and applied thecompleted-contract method for other contracts. Effective from the first quarter of the fiscal year ending December
31, 2021, the Company and its consolidated subsidiaries changed the method of recognizing revenue over a certain
period of time as the performance obligation to transfer goods or services to customers is satisfied, if control overthe goods or services is transferred to the customers over a certain period of time. For performance obligations to
be satisfied over a specified period of time, if the degree of progress toward satisfying the performance obligation
cannot be reasonably estimated at the initial stage of the contract, the Company does not recognize revenue at theinitial stage of the contract but recognizes revenue when the degree of progress can be reasonably estimated.
In addition, some made-to-order software development contracts that are determined to be a single performanceobligation as a whole, although the contract with the customer is divided into processes, are combined and revenue
is recognized over a certain period of time based on a reasonable estimate of the degree of progress.
The measurement of progress toward satisfying performance obligations is based on the percentage ofdevelopment costs incurred by the end of each reporting period to the total expected development costs. For
software development contracts with a very short period of time between the transaction start date and the point intime when the performance obligation is expected to be fully satisfied, an alternative treatment is applied, whereby
revenue is not recognized over a specified period of time and revenue is recognized when the performanceobligation is fully satisfied.
The Company has followed the transitional treatment stipulated in the proviso of Paragraph 84 of the AccountingStandard for Revenue Recognition, and the cumulative effect of retrospective application of the new accounting
policy prior to the beginning of the first quarter of the current fiscal year has been adjusted to retained earnings at
the beginning of the first quarter of the current fiscal year, and the new accounting policy has been applied to thebeginning balance of the current fiscal year. The cumulative effect of the retrospective application of the new
accounting policy prior to the beginning of the first quarter of the current fiscal year is added to or deducted fromretained earnings at the beginning of the first quarter of the current fiscal year, and the new accounting policy is
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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

applied from the beginning balance of the said period.
As a result, net sales increased 2,091 thousand yen, and operating loss, ordinary loss, and loss before income
taxes and minority interests each decreased 2,091 thousand yen in the first half of the current fiscal year. In addition,
the balance of retained earnings at the beginning of the period increased by 1,693 thousand yen.
Due to the application of the revenue recognition accounting standard, "Notes and accounts receivable," which
was presented in "Current assets" in the consolidated balance sheet for the previous consolidated fiscal year, is
included in "Notes, accounts receivable and contract assets" from the first quarter of the consolidated fiscal year
under review. In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard
for Revenue Recognition, no reclassification has been made for the previous consolidated fiscal year using the newpresentation.
(Application of Accounting Standards for Calculation of Fair Value, etc.)
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 30, July 4, 2019. ("AccountingStandard for Calculation of Fair Value"). The new accounting standard for fair value calculation, etc. is applied fromthe beginning of the first quarter of the fiscal year, and the transitional treatment stipulated in Paragraph 19 of the
Accounting Standard for Fair Value Calculation and Paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, July 4, 2019) is applied from the beginning of the first quarter of the fiscal
year. In accordance with the transitional treatment prescribed in paragraph 2, the new accounting policy prescribedby the Accounting Standard for Fair Value Calculation will be applied prospectively. There is no impact on thequarterly consolidated financial statements.

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(Information by Segment)
Segment Information
I. Previous six months ended, from October 1, 2020 to March 31, 2021, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
Technology
business

Open
Innovation
Business

Other*
Investment

Total

Subtotal

Sales
Sales to external customers

1,877,940

415,834

154,618

2,448,393

300

2,448,693

Sales or transfers inside or
between segments

3,783

9,643

―

13,426―

13,426

1,881,724

425,477

154,618

2,461,819

300

2,462,119

127,502133,259

149,654

410,416

98

410,515

Subtotal
Segment profit or
Loss

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

2.

Information on assets by reportable segment(Significant increase in assets due to merger, etc.)
As of January 1, 2021, the Company merged with fabbit Co., Ltd. and took over the financial statements of fabbit Co.,
Ltd. and other assets, segment assets of the open innovation business increased by 1,658,172 thousand yen
compared to the end of the previous fiscal year.

3.

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)

RevenueAmount
410,416

Reporting segment subtotal

98“Other” revenue
Company-wide expenses*-81,651

Operating income on quarterly consolidated income
statement

328,863

Note: *Company-wide expenses are general and administrative expenses that are not primarily attributable to the reporting segment.

4.

Information on Impairment Loss on fixed assets and goodwill by reportable segment(Significant changes in the amount of goodwill)
As of January 1, 2021, the Company merged with fabbit Co., Ltd. and took over its financial statements, and goodwillof the Open Innovation Business increased by 1,108,572 thousand yen compared to the end of the previous fiscal
year.

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

II. Current six months ended, from October 1, 2021 to March 31, 2022, consolidated period
1.

Information on the sales, profits or losses per reporting segment(Unit: Thousand yen)
Reporting Segment
Technology
business

Open Innovation
Business

Other*

Total

Subtotal

Sales
Sales to external customers

1,666,798

551,0442,217,842―

2,217,842

Sales or transfers inside or
between segments

112

18,07018,182―

18,182

1,666,911

569,1142,236,025―

2,236,025

85,436-21,839

63,596-242

63,354

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)
ProfitAmountReporting segment subtotal

63,596"Other" profit-242

Company-wide expenses*-90,249

Operating income on quarterly consolidated income
statement-26,894

Note: *Company-wide expenses mainly consist of general administration expenses not attributable to any particular reporting segment.

III. Matters related to changes in reportable segments, etc.
Effective from the first quarter of the current fiscal year, the "Investment Business" segment was discontinued due to achange in fund management policy.
As a result, the reporting segments were changed from the previous three segments of "Technology Business," "OpenInnovation Business," and "Investment Business" to two segments of "Technology Business" and "Open Innovation
Business.”
As described in "Changes in Accounting Policies," the Company has applied the Accounting Standard for Revenue
Recognition and other accounting standards from the beginning of the first quarter of the current fiscal year, and haschanged its accounting method for revenue recognition, and therefore, the calculation method of profit or loss by businesssegment has been changed in the same manner.
As a result of this change, net sales and segment income of "Technology business" for the first half of the consolidated
fiscal year under review increased by 2,091 thousand yen each, compared with those based on the previous method.

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Consolidated Financial Results for the Six Months Ended March 31,2022(Under Japanese GAAP)
Updated: May 13, 2022

(Significant subsequent events)
Business combination through acquisition
At a meeting of the Board of Directors held on February 25, 2022, the Company's consolidated subsidiary SS
Technologies Co., Ltd. resolved to make SS Support Corporation, a subsidiary of the Company (making it a sub-subsidiaryof the Company) and entered into a share transfer agreement on the same date, and based on said agreement, theCompany acquired the shares as of April 1, 2022.
1 Outline of Business Combination(1) Name of acquired company and its business
Name of acquired company: SS Support Corporation
Business Description: On-site mobilization and maintenance of electrical, plumbing, air conditioning, ventilation, andother facilities when problems occur.
Rush services such as investigation of the problem and emergency work(2) Main reasons for the business combination
The purpose is to achieve greater operational efficiency and productivity and to further promote DX for real estate
operators by developing and providing real estate operators with a one-stop cloud system that handles everything fromsubscription application procedures to subscriber status monitoring, in addition to emergency response services in theevent of a problem.
(3) Date of business combination
April 1, 2022
(4) Legal form of business combination
Acquisition of shares for cash(5) Name of company after combination
The name will remain unchanged.
(6) Percentage of voting rights acquired
87.7% (%)
(7) Main basis for determining the acquiring company
The Company's consolidated subsidiary SS Technologies, Inc. acquired the shares for cash consideration.
2. Breakdown of acquisition cost and consideration for each type of acquired company
The acquisition cost, which is undisclosed due to contractual confidentiality obligations, was determined by taking into
consideration the results of a third-party valuation of the shares.
3 Description and amount of major acquisition-related expenses
Fees and commissions for advisory services: 520 thousand yen
4. Amount of goodwill incurred, reason for incurrence, amortization method and amortization period
Not confirmed at this time.

2. Other
Nothing applicable.

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