File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Year ended December 31, 2023

Updated: 2024/02/13 14:26:52

Consolidated Financial Results [Japanese GAAP]
February 14, 2024

Company name:

Nomura System Corporation

Stock code

Listed on

3940

Representative

Title:

Contact

Title:Tokyo

URL https://www.nomura-system.co.jp
Representative Director
Director, General Manager
Administration Department(Name) Yoshimitsu Nomura
of(Name) Yasuo nemoto

Scheduled date of ordinary general
March 26, 2024
meeting of shareholders
Scheduled date of filing of annual
March 26, 2024
securities report
Preparation of supplementary materials forfinancial results:

Yes

Holding of financial results briefing:

Yes(TEL) 03-6277-0133

Scheduled date of commencement ofMarch 27, 2024
dividend payment(For institutional investors and securities analysts )(Amounts are rounded to the nearest million yen)

Results for the Year Ended December 31, 1.2023 (January 1, 2023-December 31, 2023)(1)Operating Results
Net sales

Operating income(Percentages represent year-on-year changes.)
Ordinary income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended December 31,
2023

2,946

9.3

464

32.0

466

25.5

360

40.6

FY 2022/12

2,696

(3.4)

352

(26.0)

371(24.8)

256(26.8)

Fully diluted
Per share
Net Income

Per share
Net Income
Year ended December 31,
2023
FY 2022/12(Referenc Equity ine)affiliatesof

Total assets
Ordinary income ratio

Net sales
Operating income margin

Yen

Yen

%

%

%

7.82

7.79

12.2

14.1

15.8

5.50

9.3

12.2

13.1

5.53
earnings

Shareholders' equity
Net income margin

Year ended December
31, 2023―Millions ofyen

FY 2022/12―Millions of yen(NOTE) We conducted a 2-for-1 stock split on July 1, 2022. Net income per share and diluted net income per share are calculated based on the assumption that the stock
split was executed at the beginning of the fiscal year ended December 2022.

(2)Financial Position
Total assets
Year ended December 31,
2023
FY 2022/12

Net assets

Net assets per share

Millions of yen

Millions of yen

%

Yen

3,442

3,043

88.4

65.62

2,836

90.2

61.11

3,143

(Referenc Shareholders' equitye)

Equity ratio

Year ended December
31, 2023

3,043Millions ofyenMillions of
2,836
yen

FY 2022/12(NOTE) We conducted a 2-for-1 stock split on July 1, 2022. Net assets per share are calculated based on the assumption that the stock split occurred at the beginning of
the year ended December 31, 2022.

(3)Cash Flow
From operating activities
Cash Flows

From investing activities
Cash Flows

From financing activities
Cash Flows

Cash and cash equivalents
Balance at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended December 31,
2023

350

457

�209

2,666

FY 2022/12

446

�77

�148

2,069

2.Dividends
Dividend per share
End of first quarterEnd of second

End of the third

quarterquarter

Term end

Total dividend
Dividend payout
amountratio(Total)Total

Net assets
Dividend rate

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

FY 2022/12

-

0.00

-

3.25

3.25

151

58.8

5.5

Year ended
December 31, 2023

-

0.00

-

3.25

3.25

151

41.6

5.1

-

0.00

-

3.25

3.25

FY2024/12 (Forecast)

―1―1

-

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52

Forecast for FY01/12/3.2024 (January 1, 2024 to December 31, 2024)(Percentages represent year-on-year changes for the full fiscal year and year-on-year changes for the quarter.)
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Per share
Net Income

Net Income%

Yen

Second quarter(cumulative)

1,385

(1.0)

65

(66.7)

65(66.6)% Millions of yen

44(70.8)

0.96

Full year

3,203

8.7

324

(30.4)

324(30.4)

221(38.5)

4.77(NOTE)(Appendix) Please refer to "1. Overview of Operating Results, etc., (4) Future Outlook" on page 3.

※ Notes(1)Changes in accounting policies and changes or restatement of accounting estimates� Changes in accounting policies caused by revision of accounting standards

:

None

� Changes in accounting policies other than (i)

:

None

� Changes in accounting estimates

:

None

� Restatement of revisions

:

None

(2)Number of shares outstanding (common shares)
� Number of shares outstanding at the end of the period Year ended December
31, 2023(including treasury stock)� Number of treasury stock at the end of the period
� Average number of shares during the period

Year ended December
31, 2023
Year ended December
31, 2023

46,444,800
73,80445,972,501

Shar
es
Shar
es
Shar
es

FY 2022/12

46,444,800

FY 2022/12

39,484

FY 2022/12

46,279,651

Shar
es
Shar
es
Shar
es

(NOTE)We conducted a 2-for-1 stock split on July 1, 2022. The number of outstanding shares (common shares) is calculated assuming that the stock split occurred at the
beginning of the fiscal year ended December 2022.

※※

The financial results are outside the scope of audits by a certified public accountant or an auditing firm.
Explanations and other special notes concerning the appropriate use of business performance forecasts
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed
to be reasonable, and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending on a range
of factors. Please refer to "1. Overview of Operating Results, etc., (4) Future Outlook" on page 3 for the preconditions for the forecasts and notes on the use of theforecasts.

―1―2File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52

�Accompanying Materials – Contents

1.Overview of Operating Results............................................................................................................2(1)Overview of Operating Results for the Fiscal Year under Review................................................................................................2(2)Overview of Financial Position for the Fiscal Year under Review................................................................................................2(3)Overview of cash flows for the fiscal year under review.................................................................................2(4)Future Outlook............................................................................................................3(5)Significant Events Related to the Going Concern Assumption..............................................................................3
2.Basic Approach to Selection of Accounting Standards..............................................................................3
3.Financial Statements and Major Notes......................................................................................................4(1)Balance Sheet...............................................................................................................4(2)Income Statement...............................................................................................................6(3)Statement of Changes in Shareholders Equity................................................................................................7(4)Statements of cash flows..........................................................................................9(5)Notes to Financial Statements..........................................................................................10(Notes on the Going Concern Assumption)..........................................................................................10(Segment Information).........................................................................................................10(Equity in earnings of affiliates, etc.)...............................................................................................................10(Per Share Information)............................................................................................................10(Significant subsequent events)............................................................................................................11―1―3

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52

1.Overview of Operating Results(1)Overview of Operating Results for the Fiscal Year under Review
In the current fiscal year, the Japanese economy is showing a recovery trend due to the normalization of economic activities due to the transition to the fivecommunicable diseases of the new type of coronavirus infectious disease. However, the situation remains uncertain due to geopolitical risks, soaring prices, and theeffect of the yen's depreciation.
In the operating environment surrounding us, the spread of telework accompanying the spread of the new coronavirus infectious disease has led to the introductionof on-line conferencing systems and cloud-based systems, support for the transition to mission-critical systems associated with the standard maintenance support deadline
for SAP ERP 6.0 ®, and digital transformation (DX) initiatives. As a result, the pace of corporate IT spending is trending upward.
Under these business conditions, we have promoted sales activities centered on our strength of personnel solutions in order to win more orders for prime (prime
contractor projects) for the introduction of SAP ERP packaging. At the same time, the Group aggressively conducted sales of FIS (*) and RPA to stabilize orders andexpand its client base.
As a result, for the fiscal year under review, net sales increased 9.3% year on year to ¥2945981000, operating income increased 32.0% to ¥464347000, ordinary
income increased 25.5% to ¥465516000, and net income increased 40.6% to ¥359614000.
Since we are only a single segment of ERP Solutions Business, we have not presented this information by segment.
(※)FIS(Function Implement Service)
In SAP introduction project, client requirements are analyzed from business design and system design, and technical support is provided for design of SAP
realization functions and add-on (built-in) design.

(2)Overview of Financial Position for the Fiscal Year under Review
AssetsTotal assets at the end of the fiscal year under review increased 298278000 yen from the end of the previous fiscal year to 3441515000 yen. This was mainly
due to increases of ¥597076000 in cash and deposits, ¥100274000 in accounts receivable and contract assets, and ¥423602000 in sales of investment securities.

Liabilities
Liabilities at the end of the fiscal year under review increased by ¥91392000 from the end of the previous fiscal year to ¥398546000. This was mainly due toincreases of 24054000 yen in accounts payable-trade, 20416000 yen in income taxes payable, and 34876000 yen in other (accrued consumption tax, etc.).

(Net assets)
Net assets at the end of the fiscal year under review increased by ¥206886000 from the end of the previous fiscal year to ¥3042968000. This was mainly due
to an increase in retained earnings of ¥359614000 due to the recording of net income, and a decrease of ¥150817000 due to the payment of dividends.

(3)Overview of cash flows for the fiscal year under review
The balance of cash and cash equivalents (hereinafter referred to as "cash") at the end of the current fiscal year increased by 597076000 yen from the end of theprevious fiscal year to 2665886000 yen.
The status of each cash flow for the current fiscal year is as follows.

Cash flows from operating activities
Net cash provided by operating activities during the fiscal year under review was ¥349792000, compared with net cash provided by operating activities of ¥445841000
in the previous fiscal year. This was mainly attributable to ¥493204000 in income before income taxes and ¥34876000 in changes in accrued consumption taxes, and¥100274000 in changes in notes and accounts receivable-trade and ¥104116000 in income taxes paid.

Cash flows from investing activities
Net cash provided by investing activities during the fiscal year under review was ¥456740000, compared with net cash used in investing activities of ¥77359000 in
the previous fiscal year. This was attributable to ¥1260000 in payments for purchases of property, plant and equipment and ¥458 million in proceeds from sales ofinvestment securities.

Cash flows from financing avtivities
Net cash used in financing activities during the fiscal year under review was ¥209456000, compared with net cash used in financing activities of ¥147702000 in theprevious fiscal year. This was due to dividend payments of ¥150456000 and purchase of treasury stock of ¥59 million.

―1―4File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(Reference) Trends in cash flow-related indicators
Year ended December Year ended December Year ended December
31, 2019
31, 2020
31, 2021

Year ended December
31, 2023

FY 2022/12

Shareholders' equity ratio (%)

89.2

89.3

89.4

90.2

88.4

Equity ratio based on market value (%)

255.5

313.9

215.2

171.3

155.0

Interest-bearing cash flow
Debt ratio

―

―

―

―

―

Interest coverage・
Ratio

―

―

―

―

―

Equity ratio : Equity capital/Total assets
Shareholders' equity ratio based on market capitalization: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flow
Instant Coverage Ratio: Operating Cash Flow/Interest Payments(NOTE) 1. Market capitalization is calculated by multiplying the closing share price at the end of the period by the total number of shares outstanding at the end of theperiod (excluding treasury stock).
2.Interest-bearing debt to cash flow ratio and interest coverage ratio are not stated because interest-bearing debt does not exist in any of the above periods.

(4)Future Outlook
Looking ahead, corporate IT investment is expected to remain firm against the backdrop of demand for switching corporate core systems from systems developed inhouse to ERP packaging and growing demand for cloud-based ERP packaging.
Against this backdrop, we will continue to focus on prime in the human resources field, further expand prime, develop new customers in other fields, such as theaccounting field, and provide high-value-added services in FIS to secure stable earnings. In /PMO Consulting Division of the Strategic Planning Department of PMO(*), companies that are progressing in DX and corporate reforms will provide IT strategic consulting services to realize these goals as planned, with the aim ofcontinuously acquiring projects. We plan to continue to make the necessary investments in developing our own solutions aimed at increasing prime orders, increasing
the number of recruits and developing human resources.
For this reason, we are currently forecasting net sales of ¥3.2031 billion, operating income of ¥324232000, ordinary income of ¥324232000, and net income of¥221129000 for the next fiscal year.

(※)PMO(Project Management Office)A management structure that standardizes the governance processes associated with a project and facilitates the sharing of resources, methodologies, tools
and techniques.

(5)Significant Events Related to the Going Concern Assumption
Not applicable.

2.Basic Approach to Selection of Accounting Standards
Many of our stakeholders are domestic shareholders, creditors, business partners, etc., and there is little need to procure funds from overseas. Accordingly, the accounting
standard has been applied to Japanese GAAP.

―1―5

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52

3.Financial Statements and Major Notes(1)Balance Sheet(Thousands of yen)
Prior taxable year
As of December 31, 2022

Current fiscal year
As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable and contract assets

2,068,810

2,665,886

454,257

554,530Work in process

2,704

2,017

Prepaid expenses

19,06530,335

Others

2,275

2,134

2,547,111

3,254,903

48,47751,913

Accumulated depreciation(3,755)(7,155)

Buildings, net

44,72244,758

Total current assets
Fixed assets
Property, plant and equipment
Buildings

Automotive equipment
Accumulated depreciation
Vehicles, net

11,67011,670(6,478)(8,207)

5,192

3,463

13,274

13,274

Accumulated depreciation(7,435)(9,237)

Tools, furniture, and fixtures, net

5,840

4,038

55,75452,259Others218

218

Total intangible assets

218

218

Tools, furniture and fixtures

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

423,6020

Long-term prepaid expenses

27,87058,093

Deferred tax assets

31,39318,754

Others57,28857,288

Total investments and other assets

540,153

134,135

Total noncurrent assets
Total assets―1―6

596,125

186,6123,143,237

3,441,515

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(Thousands of yen)
Prior taxable year
As of December 31, 2022

Current fiscal year
As of December 31, 2023

Liabilities
Current liabilities
Accounts payable

159,130

183,183

Accounts payable-other

30,75244,450

Income taxes payable

53,01073,426

Deposits received

19,51121,059Others28,24857,729Total current liabilities

290,651

379,848

Asset retirement obligations

16,504

18,699Total noncurrent liabilities

16,504

18,699307,155

398,546

323,871

323,871

Legal capital surplus

280,371

280,371

Total capital surplus

280,371

280,371

2,242,861

2,447,393

2,242,861

2,447,393

Long-term liabilities

Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock(5,646)(8,738)2,841,457

3,042,898

Valuation difference on available-for-sale securities(5,446)-

Total valuation and translation adjustments(5,446)-

Total shareholders' equity
Valuation and translation adjustments

Stock acquisition right
Total net assets
Total liabilities and net assets

―1―7

71

71

2,836,082

3,042,968

3,143,237

3,441,515

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(2)Income Statement(Thousands of yen)
Prior taxable year
(January 1, 2022
To December 31, 2022)

Current fiscal year
(January 1, 2023
To December 31, 2023)

Net sales

2,695,794

2,945,981

Cost of sales

2,028,928

2,163,861

Gross profit

666,865

782,120

Selling, general and administrative expenses

314,986

317,773

Operating income

351,880

464,347

Non-operating income
Dividends income
Subsidy income
Others

18,794

-

-

1,959

242

100

19,0352,060

Loss on valuation of investment securities-

805

Others-85

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income-

890

370,915

465,516-

27,688Extraordinary income
Gain on sales of investment securities-

27,688

Income before income taxes

Total extraordinary income

370,915493,204

Income taxes

120,498

123,354

Income taxes-deferred(5,296)

10,236

Total income taxes

115,202

133,590

Net Income

255,713359,614―1―8

File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(3)Statement of Changes in Shareholders Equity
Previous fiscal year (from January 1, 2022 to December 31, 2022)(Thousands of yen)
Shareholders' equity
Capital surplus
Common stock

Retained earnings
Other retained

Legal capital

Other capital

Total capitalearnings

Total retained

surplussurplussurplusRetained earnings

earnings

Treasury stock

Total shareholders'equitybrought forward
Opening balance

322,841

279,341

1,031

1,031

2,639

281,980

2,141,192

2,141,192

�31,6712,714,341

Change during the year
Issuanceof

new(exerciseofsubscription

shares
1,031

2,062

rights to shares)
Dividend of surplus(150,022)(150,022)(150,022)

Net Income

255,713

255,713

255,713Purchase of treasury stock

(19)

(19)

(274)

(293)

Disposal of treasury stock(6,643)(6,643)

26,29919,656

4,023

4,023

(4,023)(4,023)

Transfer of loss on disposal oftreasury stock-

Items other than shareholders'equityNet change in the year
Total changes in current term
Closing balance

1,031

1,031

(2,639)(1,608)

101,668

101,668

26,025

127,116

323,871

280,371-

280,371

2,242,861

2,242,861(5,646)

2,841,457

Total valuation and Stock acquisitionrighttranslation

Total net assets

Valuation and translation adjustments
Valuationdifference on
available-for-salesecurities
Opening balance�67,559

adjustments
�67,55971

2,646,853

Change during the year
Issuanceof

new(exerciseofsubscription

shares2,062

rights to shares)
Dividend of surplus(150,022)

Net Income

255,713Purchase of treasury stock(293)

Disposal of treasury stock

19,656

Transfer of loss on disposal of-treasury stock
Items other than shareholders'equity62,113

62,113

62,113

Total changes in current term

62,113

62,113-

189,229

Closing balance(5,446)(5,446)71

2,836,082

Net change in the year

―1―9File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52

Current fiscal year (from January 1, 2023 to December 31, 2023)(Thousands of yen)
Shareholders' equity
Capital surplus
Common stock

Retained earnings
Other retained

Legal capital

Other capital

Total capitalearnings

Total retained

surplussurplussurplusRetained earnings

earnings

Treasury stock

Total shareholders'equitybrought forward
Opening balance

323,871

280,371-

280,371

2,242,861

2,242,861(5,646)

2,841,457

Dividend of surplus(150,817)(150,817)(150,817)

Net Income

359,614359,614359,614

Change during the year
Issuanceof

new(exerciseofsubscription

sharesrights to shares)

Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposal oftreasury stock(4,264)(4,264)

4,264

4,264

(4,264)(59,000)(59,000)

55,90851,644(4,264)-

Items other than shareholders'equityNet change in the year
Total changes in current term
Closing balance

-

-

-

-

204,532

204,532(3,092)

201,441

323,871

280,371-

280,3712,447,393

2,447,393(8,738)3,042,898

Total valuation and Stock acquisitionrighttranslation

Total net assets

Valuation and translation adjustments
Valuationdifference on
available-for-salesecurities
Opening balance(5,446)

adjustments(5,446)71

2,836,082

Change during the year
Issuanceof

new(exerciseofsubscription

sharesrights to shares)
Dividend of surplus(150,817)

Net Income

359,614Purchase of treasury stock(59,000)

Disposal of treasury stock

51,644

Transfer of loss on disposal of-treasury stock
Items other than shareholders'equity

5,446

5,446

5,446

5,446

5,446

-

206,886--71

3,042,968

Net change in the year
Total changes in current term
Closing balance―1―10File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(4)Statements of cash flows(Thousands of yen)
Prior taxable year
(January 1, 2022
To December 31, 2022)

Current fiscal year
(January 1, 2023
To December 31, 2023)

Net cash provided by operating activities
Income before income taxes

370,915

Depreciation and amortization

10,984

6,931

Charges for stock compensation

7,683

11,032-805

Unrealized gains (losses) on available-for-sale securities. (Gain on �)
Dividends income
Loss (Gain) on Sales of Investment Securities. (�)Decrease (increase) in notes and accounts receivable-trade (increase in�)493,204(18,794)--(27,688)

195,526

Decrease (increase) in inventories (increase in �)

4,469(100,274)

Increase (decrease) in notes and accounts payable-trade (decrease in �)

29,842

24,054

Increase (decrease) in accrued consumption taxes (�: decrease)(25,511)34,876

687

Others

14,863

10,280Subtotal

589,977

453,909

Dividend received

18,794-

Income taxes paid

(162,930)(104,116)

Net cash provided by operating activities

445,841

349,792(36,618)(1,260)Cash flow from investing activities
Purchase of property, plant and equipment
Proceeds from sales of investment securities-

458,000(47,271)-

Proceeds from refund of lease and guarantee deposits

14,270-

Payments for asset retirement obligations(7,740)-Cash flow from investing activities(77,359)456,740

2,062

-

-

(59,000)

Cash dividends paid

(149,763)(150,456)

Cash flow from financing activities(147,702)(209,456)

Payments for lease and guarantee deposits

Cash flow from financing activities
Proceeds from issuance of shares upon exercise of subscription rights
to shares
Purchase of treasury stock

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

220,780

597,076

Cash and cash equivalents at beginning of period

1,848,030

2,068,810

Cash and cash equivalents at end of term

2,068,810

2,665,886―1―11File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(5)Notes to Financial Statements(Notes on the Going Concern Assumption)
Not applicable.

(Segment Information)
Segment Information
Disclosure is omitted because ERP Solution Business is the only single segment.

(Equity in earnings of affiliates, etc.)
Not applicable because we do not have an affiliate.

(Per Share Information)
Prior taxable year
(January 1, 2022
To December 31, 2022)

Current fiscal year
(January 1, 2023
To December 31, 2023)

Net assets per share

61.11 yen

65.62 yen

Net income per share

5.53 yen

7.82 yen

Diluted EPS Net income for computation

5.50 yen

7.79 yen(NOTE) 1. We conducted a 2-for-1 stock split on July 1, 2022. Net assets per share, net income per share and diluted net income per share have been calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.
2. The basis for calculating net income per share is as follows.
Prior taxable year
(January 1, 2022
To December 31, 2022)

Item

Current fiscal year
(January 1, 2023
To December 31, 2023)

Net income per share
Net income (thousand yen)

255,713359,614――

255,713359,61446,279,651

45,972,501――

Increase in common stock (shares)

252,874

218,734(Stock acquisition rights (shares))(252,874)(218,734)――

Amount not attributable to common shareholders
Net income attributable to common stock (thousand yen)
Average number of shares of common stock outstanding during the period(shares)
Diluted EPS Net income for computation
Adjustment to net income (thousand yen)

Summary of potential shares not included in the calculation of diluted net income
per share because they have no dilutive effect―1―12File: Summary of Financial Results for the 39th Fiscal Year 第 39 期 通期決算短信_20240213142652(ja-en)

Updated: 2024/02/13 14:26:52(Significant subsequent events)(Acquisition of Treasury Stock)
At the meeting of the Board of Directors held on February 14, 2024, we passed a resolution regarding the acquisition of treasury stock in accordance with theprovisions of Article 156 of the Companies Act as applied by replacing certain terms pursuant to the provisions of Article 165, Paragraph 3 of the same Act.
1.Reason for Conducting the Share RepurchaseWe acquire treasury stock to improve capital efficiency and to enable the execution of flexible capital policies in response to changes in the business environment,
including consideration of incentive plans, by acquiring such shares as treasury stock.
2.Contents of matters pertaining to the acquisition
(1)
(2)

(3)

Type of stock to be acquired

Common stock

Can acquire

Up to 700,000 shares

Total number of shares(1.5% of the total number of issued shares (excluding treasury stock))

Agregate amount of acquistion
cost

Up to 150,000,000 yen(4)Acquisition period

February 15, 2024-May 31, 2024

(5)

Acquisition method

Market purchase on the Tokyo Stock Exchange(Reference) Treasury stock held as of December 31, 2023
Number of issued shares(excluding treasury stock)
Treasury stock

46,370,996 shares
73,804 shares―1―13