Non-consolidated Financial Results for the Third Quarter of 2020
(Nine Months Ended Sept 30, 2020)[Japanese GAAP]

November 13, 2020

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 and Consulting Dept.
Tel: +81-3-6277-0133
November 13, 2020
Scheduled date of filing of Quarterly Report:
Scheduled date of dividend payment:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:None(All amounts are rounded off to the nearest million yen)

1. Financial Results for the Third Quarter (January 1 to Sept 30, 2020) of 2020
(1) Results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Millions of yen

Nine months ended Sept. 30, 2020
Nine months ended Sept. 30, 2019

1,951
1,807

% Millions of yen

8.0
△5.2

304
257

Ordinary income%

18.1
△14.4

Millions ofyen321
275

Net income per share

Diluted net income per share

YenYenProfitMillions of%yen

16.6
△12.6

221
188%

17.6
△5.8

Nine months ended Sept. 30, 2020
9.66
9.54
Nine months ended Sept. 30, 2019
8.24
8.12
Notes: 1.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 income per share and diluted net income per share have calculated as if these stock splits had taken place atthe beginning of 2019.

(2) Financial position
Total assets

Net assets

Millions of yen

As of Sept. 30, 2020
As of December. 31, 2019
Reference: Shareholders’ equity (millions of yen)

Millions of yen

2,579
2,582
As of Sept. 30, 2020: 2,342

2. Dividends
1Q-end

Yen%

2,343
2,304
As of Dec. 31, 2019: 2,304

Dividend per share
3Q-end2Q-endYen

Shareholders’ equity ratio

Year-end

Yen

Yen

90.8
89.2

Total
Yen

Year ended Dec. 31, 2019
0.00
11.00
11.00
Year ending Dec. 31, 2020
0.00
－Year ending Dec. 31, 2020 (Forecast)
5.50
5.50
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. 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 year-end dividend per share for 2019 has not been adjusted to reflect this stock split.

3. Forecast for 2020 (January 1 to December 31, 2020)
Net sales
Millions of yen

Operating income%

Millions ofyen

Ordinary income%Millions ofyen%(Percentages represent year-on-year changes)
Profit
Net income per share
Millions of yen%

Yen

Full year
2,700
12.0
379
13.3
379
7.1
258
7.4
11.28
Notes: 1. Revisions to the most recently announced forecast: None
2. Nomura System conducted a 2-for-1 common stock split on July 1, 2020. Net income per share has been calculated asif this stock split had taken place at the beginning of 2020.

* Notes(1) Application of special accounting methods for presenting quarterly financial statements: None
(2) 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

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

As of Sept. 30, 2020:

23,028,000 shares

As of Dec. 31, 2019:

23,010,000 shares

As of Dec. 31, 2019:100,660 share2) Number of treasury shares at the end of the period

As of Sept. 30, 2020:

100,742 shares

3) Average number of shares outstanding during the period
Nine months ended Sept. 30, 2020: 22,914,811 shares

Nine months ended Sept. 30, 2019: 22,845,442 share

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 income per share and diluted net income per share have calculated as if these stock splits had taken place at thebeginning of 2019.
* The current quarterly financial report is not subject to quarterly review procedures.
* 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 Third Quarter of 2020

Contents of Attachments
1. Quarterly Financial Statements and Notes

2(1) Quarterly Balance Sheet

2(2) Quarterly Statement of Income

3(3) Notes to Quarterly Financial Statements

4

Going Concern Assumption

4

Significant Changes in Shareholders’ Equity

41

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2020

1. Quarterly Financial Statements and Notes(1) Quarterly Balance Sheet(Thousands of yen)
Third Quarter of 2020
(As of Sept. 30, 2020)2019(As of Dec. 31, 2019)
AssetsCurrent assets
1,759,895

1,765,214

Accounts receivable-trade330,706

394,162

Work in process

25,043

14,545

Cash and deposits

10,93919,4782,126,583

2,193,400

5,692

4,768

218

218

Investment Securities

384,193299,337

Other

65,531

81,688

Total Investments and other assets

449,723

381,026

Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

455,634

386,0122,582,217

2,579,412

Accounts payable-trade140,795

121,287

Income taxes payable

57,84041,178Other

75,76070,807

Total current liabilities

274,395

233,272

3,541

3,571

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,541

3,571

277,936

236,843

Capital stock

316,156

317,308

Capital surplus

272,656

273,808

Retained earnings

1,774,955

1,870,325

Treasury stock△27,402△27,423

Total shareholders’ equity

2,336,364

2,434,018

Valuation difference on available-for-sale securities△32,788△91,661

Total Valuation and translation adjustments△32,788△91,661705

212

2,304,281

2,342,569

2,582,217

2,579,412

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Valuation and translation adjustments

Stock acquisition rights
Total net assets
Total liabilities and net assets

2

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2020

(2) Quarterly Statement of Income(For the Nine-month Period)First Nine months of 2019
(Jan. 1 – Sept. 30, 2019)
1,806,931(Thousands of yen)First Nine months of 2020
(Jan. 1 – Sept. 30, 2020)
1,951,164

Cost of sales

1,325,771

1,448,295

Gross profit

481,159

502,869

Selling, general and administrative expenses

224,093

199,222

Operating income

257,066

303,647

17

17

Dividends received

16,49317,085

Other

1,644

202

Total non-operating income

18,153

17,304

Other

1-

Total non-operating expenses

1-

275,219

320,951

Profit before income taxes

275,219

320,951

Income taxes-current

80,58490,013

Net sales

Non-operating income
Interest income

Non-operating expenses

Ordinary income

Income taxes-deferred

6,354

9,566

Total income taxes

86,93899,580

Profit188,280

221,3723

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2020

(3) Notes to Quarterly Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
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.

4