Non-consolidated Financial Results for the Year Ended December 31, 2020
[Japanese GAAP]
February 15, 2021

Company name:
Stock code:
Representative:
Contact:

Nomura System Corporation Co., Ltd.
Listing:Tokyo Stock Exchange(the first section)
3940
URL: https://www.nomura-system.co.jp
Yoshimitsu Nomura, President
Yasuo Nemoto, Managing Director, General Manager of Administrative Dept.
Tel: +81-3-6277-0133
March 24, 2021
Scheduled date of Annual General Meeting of Shareholders
March 24, 2021
Scheduled date of filing annual securities report:
March 25, 2021
Scheduled date of dividend payment:
Preparation of supplementary materials for annual financial results:
Yes
Holding of annual y financial results meeting:Yes (for institutional investors and analysts)(All amounts are rounded off to the nearest million yen)

1. Financial Results for the Fiscal Year Ended December 31, 2020 (January 1 to December 31, 2020)(1) Results of operations(Percentages represent year-on-year changes)
Fiscal year ended
December 31, 2020
December 31, 2019

Net sales

Operating income

Millions of yen%

2,540
2,412

Net income pershare

Millions of yen

5.3△5.1373334

Diluted netincome per share

Ordinary income

%

11.6
△14.4

Millions of yen

391
354

Rate of return onequity

Profit%

10.4
△12.9

Millions of yen

269
241

Ordinary income
to total assets ratio

%

11.9
△12.9

Operating income
to net sales ratio

Yen
Yen%%%
Fiscal year ended
December 31, 2020
11.75
11.61
11.5
14.8
14.7
December 31, 2019
10.54
10.38
10.7
14.0
13.9
Reference: Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2020: ¥ - million
Fiscal year ended December 31, 2019: ¥ - million
Notes: As Nomura System Corporation (“Nomura System”) conducted a 2-for-1 common stock split on August 1, 2019 and a2-for-1 common stock split on July 1, 2020. Net income per share and diluted net income per share have calculated as if
these stock splits had taken place at the beginning of 2019.

(2) Financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

As ofMillions of yen
Millions of yen%%
December 31, 2020
2,683
2,396
89.3
104.10December 31, 2019
2,582
2,304
89.2
100.55
Reference: Shareholders’ equity (millions of yen) As of Dec. 31, 2020: 2,395
As of Dec. 31, 2019: 2,304
Notes: Nomura System conducted a 2-for-1 common stock split on August 1, 2019 and a 2-for-1 common stock split on July 1,2020. Net assets per share have calculated as if these stock splits had taken place at the beginning of 2019.

(3) Non-consolidated Cash Flows

Cash and cash
equivalents at theend of period

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

207
187

△1△25△119△1371,847
1,760

Fiscal year ended
December 31, 2020
December 31, 2019

2. Dividends
1Q-endYen

Dividend per share
2Q-end 3Q-end Year-end
YenYen

YenTotal
Yen

Total
Dividends
Millions of yen

Payoutratio

Dividends
to net assets%%

Fiscal Year ended Dec.
0.00
11.00
11.00
126
52.2
5.6
31, 2019
Fiscal Year ended Dec.
0.00
5.50
5.50
127
46.8
5.4
31, 2020
Fiscal Year ending Dec.
0.00
5.50
5.50
31, 2021 (Forecast)
Notes: Nomura System conducted a 2-for-1 common stock split on July 1, 2020. The year-end dividend per share for 2019 has
not been adjusted to reflect this stock split.

3. Forecast for 2021 (January 1 to December 31, 2021)
Net salesFirst half
Full year

Operating income

Millions of yen

%

1,240
2,700

△6.0
6.3

Millions ofyen

153
371

Ordinary income%Millions ofyen△30.8△0.6153
371(Percentages represent year-on-year changes)
Profit
Net income per share%

Millions of yen%

Yen

△33.4
△5.0104253

△34.2
△6.1

4.54
11.00

* Notes(1) Changes in accounting policies and accounting estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None

(2) Number of shares outstanding (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)

As of Dec. 31, 2020:

23,109,600 shares

As of Dec. 31, 2019:

23,010,000 shares

As of Dec. 31, 2019:100,660 shareJan. through Dec, 2019:22,841,300 share2) Number of treasury shares at the end of the period

As of Dec. 31 2020:

100,742 shares

3) Average number of shares outstanding during the period
Jan. through Dec, 2020:

22,926,904 shares

Notes: Nomura System conducted a 2-for-1 common stock split on August 1, 2019 and a 2-for-1 common stock split on July 1,2020. The number of shares issued (common stock) has calculated as if these stock splits had taken place at thebeginning of 2019.
* This document is not subject to audit procedures in accordance with the Financial Instruments and Exchange Act.
* Cautionary statement with respect to forward-looking statements, and other special items
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the management, but are not promises by Nomura System regarding future performance. Actual results may differ
materially from the forecasts for a number of reasons.

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

Contents of Attachments
1. Non-Consolidated Financial Statements and Notes

2(1) Non-Consolidated Balance Sheet

2(2) Non-Consolidated Statement of Income

4(3) Non-Consolidated Statements of Changes in Net Assets

5(4) Non-Consolidated Statement of Cash Flows

7(5) Notes to Non-Consolidated Financial Statements

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Going Concern Assumption

81Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

1. Non-Consolidated Financial Statements and Notes(1) Non-Consolidated Balance Sheet(Thousands of yen)2020
(As of Dec. 31, 2020)2019(As of Dec. 31, 2019)
AssetsCurrent assets
1,759,895

1,847,362

Accounts receivable-trade330,706

414,588

Work in process

25,04323,198Prepaid expenses

5,685

6,391

Other

5,254

1,4522,126,583

2,292,990

12,78812,788△11,725△11,932

Cash and deposits

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation

1,062

Buildings, net

11,440

VehiclesAccumulated depreciation△9,081
2,358

Vehicles, net
Tools, furniture and fixtures

11,122

Accumulated depreciation△8,850Tools, furniture and fixtures, net

2,271

Total property, plant and equipment

5,692

855

11,440△9,869
1,571

11,196△9,370
1,826

4,252

Intangible assets
218

218

218

218

Investment securities

384,193298,654

Deferred tax assets

40,77362,301

Other

24,757

24,677

Total Investments and other assets

449,723

385,632

455,634

390,1032,582,217

2,683,093

140,795

135,760

Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other27,19824,940

Income taxes payable

57,84069,688Deposits received

15,837

16,529Other

32,72537,047

Total current liabilities

274,395

283,964

Asset retirement obligations

3,541

3,581Total non-current liabilities

3,541

3,581

277,936

287,545

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

2

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 20202019
(As of Dec. 31, 2019)2020(As of Dec. 31, 2020)

316,156

319,988

Legal capital surplus

272,656

276,488

Total legal capital surplus

272,656

276,488

1,774,955

1,918,419

1,774,955

1,918,419

Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forwardTotal retained earnings
Treasury stock△27,402

Total shareholders’ equity

2,336,364

2,487,471

Valuation difference on available-for-sale securities△32,788

Total valuation and translation adjustments△32,788△92,135

Valuation and translation adjustments

705

Stock acquisition rights△27,423△92,135

212

Total net assets

2,304,281

2,395,548

Total liabilities and net assets

2,582,217

2,683,093

3

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

(2) Non-Consolidated Statement of Income(The Year Ended December 31, 2020)(Thousands of yen)
For the fiscal year
Ended December 31,2020

For the fiscal year
Ended December 31,2019
Net sales

2,411,749

2,539,510

Cost of sales

1,780,039

1,900,044

Gross profit

631,711

639,466

Selling, general and administrative expenses

297,307266,243

Operating income

334,403373,223

Dividends income

16,49317,085

Subsidy income

2,884

202

Non-operating income

Other
Total non-operating income

1717

19,393

17,304Non-operating expenses
Other

1-

Total non-operating expenses

1-Ordinary income

353,796

390,527

Profit before income taxes

353,796

390,527

Income taxes-current

117,350

116,397

Income taxes-deferred△4,328

4,664

Total income taxes

113,022

121,061

Profit240,774

269,466

4

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

(3) Non-Consolidated Statements of Changes in Net Assets
For the fiscal year ended December 31, 2019
(Thousand yen)
Shareholders' equity
Capital surplus
Capital stock

Balance at beginningof current period
Changes of items
during period
Issuance of newShares
Issuance of new shares（Exerciseof stock acquisition rights）

Legal capitalsurplusRetained earnings

Other retained
earnings
Total Capital
Total Retained
Retained
surplusearnings
earnings brought
forward308,245

264,745

264,745

7,911

7,911

7,911

Profit1,659,557

1,659,557△125,377
240,774△125,377
240,774

Acquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes ofitems during period
Balance at end ofcurrent period

7,911

7,911

7,911

115,397

115,397

316,156

272,656

272,656

1,774,955

1,774,955

Shareholders' equity
Treasury stock
Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）△202

Valuation and translation adjustments
Total Valuation andTotal
shareholders’equityValuation difference on
available-for-salesecurities

translation adjustments

2,232,345△31,004△31,004

Stock acquisitionrights1,357

Total net
assets2,202,699

15,822

15,822△125,377
240,774△125,377

Acquisition of treasury stock△27,200△27,200△27,200

Net changes of items other thanshareholders' equity
Total changes ofitems during periodBalance at end ofcurrent period△1,784△1,784△652△2,437△27,200

104,019△1,784△1,784△652

101,583△27,4022,336,364△32,788△32,788705

2,304,281

Profit240,7745Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

For the fiscal year ended December 31, 2020
(Thousand yen)
Shareholders' equity
Capital surplus
Capital stock

Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）

Legal capitalsurplus

Retained earnings

Other retained
earnings
Total Capital
Total Retained
Retained
surplusearnings
earnings brought
forward316,156

272,656

272,656

3,832

3,832

3,832

1,774,955

1,774,955△126,001△126,001

Profit269,466

269,466

Acquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes ofitems during period
Balance at end ofcurrent period

3,832

3,832

3,832

143,464

143,464

319,988276,488276,488

1,918,419

1,918,419

Shareholders' equity
Treasury stock
Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）△27,402

ProfitAcquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

Valuation and translation adjustments
Total Valuation andTotal
shareholders’equityValuation difference on
available-for-salesecurities

translation adjustments

2,336,364△32,788△32,788

Stock acquisitionrights705

2,304,281

7,664

7,664

△126,001△126,001

269,466△21△21△212,487,471△27,423

Total net
assets151,107269,466△59,347△59,347△494△59,840△92,135

212

2,395,548△59,347△92,135

6△21△59,347△49491,266

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

(4) Non-Consolidated Statement of Cash Flows(Thousands of yen)
For the fiscal year
Ended December 31,2020

For the fiscal year
Ended December 31,2019
Cash flows from operating activities
Net income before income taxes

353,796

390,527

Depreciation and amortization

2,851

1,989

Dividends income(16,493)

Decrease (increase) in accounts receivable-trade(28,095)

Decrease (increase) in inventories(25,043)(17,085)

Increase (decrease) in accounts payable-trade

1,974

Increase (decrease) in accrued consumption taxes

15,956(83,882)
1,845(5,035)
7,340

Other(1,132)

Subtotal

303,816

294,264

Dividends income

16,49317,085

Income taxes paid

(133,136)

Net cash provided by operating activities

187,172

Cash flows from investing activities-Purchase of property, plant and equipment
Purchase of investment securities(24,923)

Net cash used in investing activities(24,923)

Cash flows from financing activities
Proceeds from issuance of stock resulting fromexercise of subscription rights to shares
Purchase of treasury stock(104,530)
206,819(549)-(549)

15,117

7,241(27,200)(21)

Dividend paid

(125,248)

Net cash provided by (used in) financing activities(137,331)
24,918

Increase (decrease) in cash and cash equivalents(1,434)(126,024)(118,804)
87,467

Cash and cash equivalents at beginning of period

1,734,9781,759,895

Cash and cash equivalents at end of period

1,759,8951,847,3627

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2020

(5) Notes to Non-Consolidated Financial Statements
Going Concern Assumption
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been preparedin accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer
an English translation.

8