Summary of Consolidated Financial Results[Japanese GAAP] (Non-consolidated)Year ended December 31, 2021
Company nameFebruary 15, 2022
Listed stockTokyo
exchanges
URL https://www.nomura-system.co.jp(Name) Yoshimitsu Nomura

Nomura System Corporation

Stock code
Representative

3940(Title)Representative Director
Director, General Manager ofContact person(Title)(Name) Yasuo Nemoto(TEL) 03-6277-0133
Administration Dept.
Scheduled
dateof
Scheduled date of the ordinary
March 23, 2022
commencement of dividendMarch 24, 2022
general meeting of shareholders
payment
Scheduled date to file Securities
March 23, 2022
ReportPreparation of supplementary : Yes
material on financial results
Holding of financial results : Yes (For institutional investors and securities)
briefing
analysts(Figures are rounded to the nearest million yen)

Results for the period ending December 1.2021 (January 1, 2021-December 31, 2021)(Percentages indicate year-on-year changes.)(1)Operating Results
Net salesYear ended
December 31, 2021
Year ended
December 31, 2020

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

2,791

9.9

476

27.4

493

26.3

349

29.6

2,540

5.3

373

11.6

391

10.4

269

11.9

Per share
Net income
Year ended
December 31, 2021
Year ended
December 31, 2020
(Refere Equity in earnings ofnce)
affiliates

Yen

Fully diluted
Per share
Net income

Shareholders' equity
Net income margin

Total assets
Ordinary income
ratio

Net sales
Operating income
margin

Yen

%

%

%

15.15

15.02

13.9

17.5

17.0

11.75

11.61

11.5

14.8

14.7

Year ended-MillionsYear ended
Millions
December 31,
of yenDecember 31,
of yen
2021
2020(NOTE) We conducted a 2-for-1 stock split on July 1, 2020. Net income per share and diluted net income per share are calculatedon the assumption that the stock split occurred at the beginning of the fiscal year ending December 2020.

(2)Financial Position

Total assets

Net assets

Millions of yen

Equity Ratio

Millions of yen

Net assets per share%

Yen

Year ended
2,960
2,647
89.4
114.68December 31, 2021
Year ended
2,683
2,396
89.3
104.10December 31, 2020
(Refere Shareholders' equity
Year ended
2,647Millions
Year ended
Millions
nce)
December 31,
of yenDecember 31,
2,395
of yen
2021
2020(NOTE) We conducted a 2-for-1 stock split on July 1, 2020. Net assets per share are calculated on the assumption that the stock split
was implemented at the beginning of the fiscal year ended December 2020.

(3)Cash Flow

From operating activities From investing activities From financing activities Cash and cash equivalents
Cash Flows
Cash Flows
Cash Flows
Balance at end of year
Year ended
December 31, 2021
Year ended
December 31, 2020

2.Dividend Status

Millions of yen

Millions of yen

Millions of yen

Millions of yen

160

（9）

（150）

1,848

207

（1）

（119）

1,847

Totaldividend
amount(Total)Dividend per share
End of first End of second End of the third
Term endquarterquarterquarter
Yen
Yen
Yen
Yen

Total

Dividend
Net assets
payout ratio Dividend rate

Yen Millions of yen%%

Year ended
December 31,
0.00
5.50
5.50
127
46.8
5.4
2020
Year ended
December 31,
0.00
6.50
6.50
150
42.9
5.9
2021
FY12/2022 (forecast)
0.00(NOTE) The anticipated amount for the fiscal year ended December 31, 2022 has not been determined yet. However, the Company
has set a policy of continuously providing a stable payout with a payout ratio of 40% or more in December 2016, and has
decided to return this amount.

Forecasts for the fiscal year ending December 3.2022 (January 1, 2022-December 31, 2022)(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)
Net sales
Millions ofyenOperating income%

Millions ofyen%

Ordinary income
Millions ofyen%

Per share
Net income

Net income
Millions of
yen

%

Yen

Second Quarter
1,229 （5.5）
64 （67.1）
64 （68.5）
43 （69.2）
1.88(Cumulative)
Full year
2,701 （3.2）
162 （65.9）
162 （67.1）
111 （68.3）
4.79(NOTE)Please refer to "(4) Future Outlook" of "1. Overview of Operating Results, etc." on page 3 of the Attached Materials.

※ Notes(1)Changes in accounting policies and changes or restatement of accounting estimates
1 Changes in accounting policies caused by revision of accounting: Nonestandards
2 Changes in accounting policies other than 1: None3 Changes in accounting estimates: None4 Restatement of revisions: None(2)Number of shares of common stock outstanding

Year

ended
31,

23,190,000

Year
Sha
December
res
2020

ended
31,

23,109,600

Sha
res

2 Number of treasury stock at the end of the December
period
2021

ended
31,

109,742Year
Sha
December
res
2020

ended
31,

100,742

Sha
res

Year
December
2021

ended
31,

23,062,815

Year
Sha
December
res
2020

ended
31,

22,926,904

Sha
res

1 Number of shares issued at the end of the period December(including treasury stock)
2021
Year

3 Average number of shares during the period(NOTE)We conducted a 2-for-1 stock split on July 1, 2020. The number of shares outstanding (common stock) is calculated on theassumption that the stock split occurred at the beginning of the fiscal year ending December 2020.

※※

This financial results report is not subject to the audit 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 us and certain
assumptions that we believe to be reasonable, and are not intended to guarantee the achievement of the forecasts. Actual results
may differ materially from the forecast depending on a range of factors. Please refer to "(4) Future Outlook" of "1. Overview ofOperating Results, etc." on page 3 of the attached materials for preconditions for financial results forecasts and notes on the useof financial results forecasts.

○Accompanying Materials – Contents
1.Overview of Operating Results, etc.................................................................................................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)Material Events Related to Going Concern Assumption..................................................................3
2.Basic Concept Regarding 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)Cash flow statement..............................................................................9(5)Notes to Financial Statements..............................................................................10(Notes on the Going Concern Assumption)...........................................................................10(Segment information, etc.)..........................................................................................10(Equity in earnings of affiliates, etc.)................................................................................................10(Per Share Information).............................................................................................10(Significant Subsequent Events).............................................................................................10

1.Overview of Operating Results, etc.
(1)Overview of Operating Results for the Fiscal Year under Review
In the fiscal year under review, the Japanese economy was extremely challenging due to the impact of the spread of the new Corona
contagious disease. The outlook for the economy remains uncertain as the spread of infections has not stopped, with the number of
infections on the rise, partly due to the sixth wave.
In the environment surrounding us, investment in rationalization and labor-saving measures against the backdrop of labor shortages
and investment in maintenance and upgrades due to aging are firm, and the pace of corporate IT investment continues to trend upward.
Under such business conditions, we have promoted sales activities centered on our strength in personnel solutions in order to win
more orders for prime (prime contractor) projects for the introduction of SAP ERP packages. At the same time, we aggressively
conducted sales of FIS(*) and RPA, working to stabilize orders and expand our customer base.
As a result, in the fiscal year under review, net sales were ¥2790775000 (up 9.9% year on year), operating income was ¥475537000(up 27.4% year on year), ordinary income was ¥493403000 (up 26.3% year on year), and net income was ¥349322000 (up 29.6% year
on year).
Since we have only a single segment of the ERP Solutions Business, we have not presented this information by segment.
(※)FIS(Function Implement Service)
Analyze customer requirements from business design and system design in SAP implementation projects, and provide technicalsupport for the design of SAP realization functions and add-on designs.

(2)Overview of Financial Position for the Fiscal Year under Review
AssetsAssets at the end of the fiscal year under review increased by ¥277253000 from the end of the previous fiscal year to¥2960346000. This was mainly due to increases of 235195000 yen in accounts receivable-trade and 35423000 yen in
investment securities.
Liabilities
Liabilities at the end of the fiscal year under review increased by ¥25949000 from the end of the previous fiscal year to¥313494000. This was mainly due to an increase of ¥26595000 in income taxes payable.
(Net assets)
Net assets at the end of the fiscal year under review increased by ¥251305000 from the end of the previous fiscal year to¥2646853000. This was mainly attributable to an increase of 2853000 yen in both common stock and additional paid-in capital
due to the exercise of stock options, an increase of 349322000 yen in retained earnings due to the recording of net income, adecrease of 126549000 yen due to the payment of dividends, and an increase of 24576000 yen in valuation difference on
available-for-sale securities.

(3)Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the current fiscal year increased by 668000 yen fromthe end of the previous fiscal year to 1848030000 yen.
The status of each cash flow in the current fiscal year and their factors are as follows.
Cash flows from operating activities
Net cash provided by operating activities in the fiscal year under review was ¥159651000 (compared with ¥206819000
provided in the previous fiscal year). This was mainly attributable to profit before income taxes of ¥494599000, an increase innotes and accounts receivable-trade of ¥235195000, and income taxes paid of ¥122436000.
Cash flows from investing activities
Net cash used in investing activities was ¥8968000 (compared with ¥549000 used in the previous fiscal year). This was due
to purchase of property, plant and equipment of 11670000 yen and proceeds from sale of property, plant and equipment of
2701000 yen.
Cash flows from financing avtivities

Net cash used in financing activities was ¥150014000 (compared with ¥118804000 used in the previous fiscal year). Thiswas mainly due to purchase of treasury stock of ¥29 million and cash dividends paid of ¥126578000.

(Reference) Trends in cash flow-related indicators
FY12/17
Shareholders' equity ratio (%)

FY12/1885.0

FY12/19

88.8

89.2

Year ended
December 31,
2020

Year ended
December 31,
2021

89.3

89.4

Equity ratio based on market
328.3
162.1
255.5
313.9
215.2
value (%)
Interest-bearing to cash flow
―
―
―
―
―
Debt ratio
Interest coverage
―
―
―
―
―
Ratio
Equity ratio : Equity capital/Total assets
Equity ratio based on market capitalization: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments(NOTE) 1. Market capitalization is calculated by multiplying the closing share price at the end of the fiscal year by the number ofshares outstanding at the end of the fiscal year (excluding treasury stock).
2.Interest-bearing debt to cash flow ratio and interest coverage ratio are not stated because no interest-bearing debt existed inany of the above periods.

(4)Future Outlook
With regard to the outlook for the future, corporate IT investment is expected to remain firm against the backdrop of the demand
for switching of enterprise core systems from systems developed in-house to ERP packages, as well as the growing need for cloudcomputing of ERP packages.
Against this backdrop, we will continue to focus on prime in the personnel field, further expand prime business, and develop
customers in other fields such as accounting. At the same time, we will provide high-value-added services in FIS to secure stableearnings. We will also provide new services, such as cloud computing and big data analysis, with the aim of continuing to win
projects.
The Mid-term Management Plan (December 2022 to December 2026), which is planned to be released in March 2022, will target
a EPS20 of at least ¥ (132% over EPS15 of ¥ 15% for the period ending in December 2021) and a PER50 double or more for the
final fiscal year, December 2026. Under the Medium-Term Management Plan, in order to gradually increase net sales to ¥3.5 billion
and to improve the sales and profit growth rate and raise the P/E level, we plan to make the necessary investments from the firstyear of the Medium-Term Management Plan, with the following as the main components: � development of in-house solutions
aimed at increasing prime orders; � expansion of the number of hires; and � strengthening of education activities, including theestablishment of training centers.
For this reason, at the present time, the forecasts for the next fiscal year are for net sales of ¥2701195000, operating income of¥162146000, ordinary income of ¥162146000, and net income of ¥110586000.

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

2.Basic Concept Regarding Selection of Accounting Standards
Many of our stakeholders are domestic shareholders, creditors, business partners, etc. and there is little need for funding fromoverseas. As a result, the Company has adopted Japanese GAAP for accounting standards.

3.Financial Statements and Major Notes(1)Balance Sheet(Thousands of yen)
Prior taxable year
(As of December 31, 2020)

Current fiscal year
(As of December 31, 2021)

AssetsCurrent assets
Cash and deposits
Accounts receivable

1,847,362
414,588

1,848,030
649,783

Work in process
Prepaid expenses

23,1986,391

7,173
12,413

OthersTotal current assets

1,452

2,117

2,292,990

2,519,516

Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Automotive equipment
Accumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

12,78812,788（11,932）（12,084）855

703

11,44011,670（9,869）（3,886）

1,571

7,784

11,196

11,196（9,370）（10,206）

Tools, furniture, and fixtures, net

1,826

990

Total property, plant and equipment

4,252

9,477

Others218

218

Total intangible assets

218

218

Intangible assets

Investments and other assets
Investment securities

298,654

334,077

Long-term prepaid expenses
Deferred tax assets

62,301

19,26253,510

Others

24,67724,287

Total investments and other assets

385,632

431,135

390,103

440,8312,683,093

2,960,346

Total noncurrent assets
Total assets

(Thousands of yen)
Prior taxable year
(As of December 31, 2020)

Current fiscal year
(As of December 31, 2021)

Liabilities
Current liabilities
Accounts payable
Accounts payable-other135,760
24,940129,288
27,672

Income taxes payable
Deposits received

69,688
16,52996,284
17,993

Others37,047

38,667

Total current liabilities

283,964

309,904

Long-term liabilities
Asset retirement obligations

3,581

3,590

Total noncurrent liabilities

3,581

3,590

287,545

313,494

319,988322,841

Capital surplus
Legal capital surplus

276,488279,341

Other capital surplus

-

2,639

Total capital surplus

276,488281,980

1,918,419

2,141,192

Total liabilities
Net assets
Shareholders' equity
Paid-in Capital

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Stock acquisition right
Total net assets
Total liabilities and net assets

1,918,419

2,141,192（27,423）（31,671）2,487,471

2,714,341（92,135）（67,559）（92,135）（67,559）212

71

2,395,548

2,646,853

2,683,093

2,960,346

(2)Income Statement
Prior taxable year
(On January 1, 2020
To December 31, 2020)
2,539,510(Thousands of yen)
Current fiscal year
(1 January 2021
From December 31, 2021)
2,790,775

Cost of sales

1,900,044

2,048,478

Gross profit

639,466

742,297

Selling, general and administrative expenses

266,243

266,760

Operating income

373,223475,537

Non-operating income
Dividends income

17,085

17,655

Subsidy income
Others

202
17

212

17,304

17,866

390,527

493,403

Gain on sales of noncurrent assets

-

1,196

Total extraordinary income

-

1,196

Income before income taxes

390,527

494,599

Income taxes
Income taxes-deferred

116,397
4,664

147,332
�2,055

Total income taxes

121,061

145,277

Net income

269,466

349,322Net sales

Total non-operating income
Ordinary income
Extraordinary gains

(3)Statement of Changes in Shareholders' Equity
Previous fiscal year (from January 1, 2020 to December 31, 2020)(Thousands of yen)
Shareholders' equity
Capital surplus

Paid-in Capital Legal capitalsurplus

Opening balance

316,156

272,656

3,832

3,832

Other capitalsurplus-Retained earnings
Other retained
Total
earnings
Total capital
Total retained Treasury stock shareholders'
Retained
equitysurplusearnings
earnings
brought
forward272,656

1,774,955

1,774,955（27,402）2,336,364

Change during the year
Issuance of new shares(exercise of subscription
rights to shares)

3,832

Dividend of surplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Items
other
than
shareholders' equity
Net change in the year
Total changes in current
term
Closing balance（126,001）

269,466

269,466

269,466
（21）

（21）

-

3,832

143,464

143,464（21）

151,107319,988276,488-276,488

1,918,419

1,918,419（27,423）

2,487,471

Stockacquisitionright

Total net assets

705

2,304,281（32,788）（32,788）

Change during the year
Issuance of new shares(exercise of subscription
rights to shares)

7,664

Dividend of surplus（126,001）

Net income

Closing balance（126,001）

3,832

Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities

Purchase of treasury
stock
Disposal of treasury
stock
Items
other
than
shareholders' equity
Net change in the year
Total changes in current
term（126,001）

3,832

Valuation and translation
adjustments

Opening balance

7,664

269,466（21）（59,347）（59,347）（494）（59,840）（59,347）（59,347）（494）

91,266（92,135）（92,135）

212

2,395,548

Current fiscal year (from January 1, 2021 to December 31, 2021)(Thousands of yen)
Shareholders' equity
Capital surplus

Paid-in Capital Legal capitalsurplus

Opening balance

319,988276,488

2,853

2,853

Other capitalsurplus-Retained earnings
Other retained
Total
earnings
Total capital
Total retained Treasury stock shareholders'
Retained
equitysurplusearnings
earnings
brought
forward276,488

1,918,419

1,918,419（27,423）

2,487,471

Change during the year
Issuance of new shares(exercise of subscription
rights to shares)

2,853

Dividend of surplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Items
other
than
shareholders' equity
Net change in the year
Total changes in current
term
Closing balance

2,639（126,549）

349,322349,322（29,000）（29,000）

24,752

27,391

2,639

5,492

222,773

222,773（4,248）226,870

322,841

279,341

2,639

281,980

2,141,192

2,141,192（31,671）2,714,341

Stockacquisitionright

Total net assets

212

2,395,548（92,135）（92,135）

Change during the year
Issuance of new shares(exercise of subscription
rights to shares)

5,705

Dividend of surplus（126,549）

Net income

Closing balance（126,549）

349,322

2,853

Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities

Purchase of treasury
stock
Disposal of treasury
stock
Items
other
than
shareholders' equity
Net change in the year
Total changes in current
term（126,549）

2,853

Valuation and translation
adjustments

Opening balance

2,639

5,705

349,322（29,000）
27,391
24,576

24,576（141）

24,43524,576

24,576（141）

251,305（67,559）（67,559）71

2,646,853

(4)Cash flow statement(Thousands of yen)
Current fiscal year
(1 January 2021
From December 31, 2021)

Prior taxable year
(On January 1, 2020
To December 31, 2020)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Gain on sales of noncurrent assets

390,527
1,989
-

4,940
（1,196）
3,196

Charges for stock compensation
Dividends income（17,085）（17,655）

Decrease () in notes and accounts receivable-trade(Increase) decrease in inventories（83,882）
1,845（235,195）
16,025

Increase () in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes ()（5,035）
7,340（6,472）
1,650

Others（1,434）

4,540

Subtotal

294,264

264,432

Dividend received
Income taxes paid-

494,599

17,085

17,655（104,530）（122,436）

206,819

159,651

Proceeds from sales of property, plant and equipment

（549）
-

（11,670）
2,701

Cash flow from investing activities（549）（8,968）

7,241

5,564

（21）

（29,000）（126,024）（126,578）（118,804）（150,014）

87,467668

1,759,895

1,847,362

1,847,362

1,848,030

Net cash provided by (used in) operating activities
Cash flow from investing activities
Purchase of property, plant and equipment

Cash flow from financing activities
Proceeds from issuance of shares upon exercise ofsubscription rights to shares
Purchase of treasury stock
Cash dividends paid
Cash flow from financing activities
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of term

(5)Notes to Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Segment information, etc.)(Segment Information)
This information is omitted because we have only one segment, the ERP Solutions Business.
(Equity in earnings of affiliates, etc.)
We do not have any affiliated companies, and therefore there are no applicable matters.
(Per Share Information)
Prior taxable year
(On January 1, 2020
To December 31, 2020)

Current fiscal year
(1 January 2021
From December 31, 2021)

Net assets per share

104.10 yen

114.68 yen

Net income per share

11.75 yen

15.15 yen

Fully diluted
11.61 yen
15.02 yen
Net income per share(NOTE) 1. We conducted a 2-for-1 stock split on July 1, 2020. Net assets per share, net income per share and fully diluted net
income per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.
2. The basis for calculating net income per share is as follows.
Item

Prior taxable year
(On January 1, 2020
To December 31, 2020)

Current fiscal year
(1 January 2021
From December 31, 2021)

Net income per share
Net income (thousand yen)

269,466

349,322Amount not attributable to common stock (thousand yen)――

Net income attributable to common stock (thousand yen)

269,466

349,322

Average number of shares of common stock outstanding
during the period (shares)

22,926,904

23,062,815――

Increase in common stock (shares)

275,313

193,993(Stock acquisition rights (shares))(275,313)(193,993)――

Diluted EPS Net income for computation
Adjustment to net income (thousand yen)

Summary of dilutive shares not included in the calculation ofdiluted net income per share because they have no dilutive
effect(Significant Subsequent Events)
Not applicable.