Non-consolidated Financial Results for the Third Quarter of 2017
(Nine Months Ended September 30, 2017)[Japanese GAAP]
November 6, 2017

Company name:
Stock code:
Representative:
Contact:

Nomura System Corporation Co., Ltd.
Listing: Tokyo Stock Exchange (JASDAQ)
3940
URL: http://www.nomura-system.co.jp
Yoshimitsu Nomura, President
Katsuhisa Katou, Executive Officer, General Manager of Administrative Dept.
Tel: +81-3-6277-0133
Scheduled date of filing of Quarterly Report:
November 6, 2017
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 September 30, 2017) of 2017
(1) Results of operations(Percentages represent year-on-year changes)
Net sales
Nine months ended Sept. 30, 2017
Nine months ended Sept. 30, 2016

Operating income

Millions of yen%

Millions of yen

1,900
1,779

6.8-337
231

Ordinary income% Millions of yen

46.1-335
227

Net income per share

Diluted net income per share

YenYenProfit% Millions of yen

47.4-228
138%

65.8
-

Nine months ended Sept. 30, 2017
40.93
39.42
Nine months ended Sept. 30, 2016
31.67
30.74
Notes: 1. As Nomura System Corporation (“Nomura System”) did not prepare a quarterly financial statement for 2015, theyear-on-year changes for the nine months ended Sept 30, 2016 are not indicated.
2. Nomura System conducted a 100-for-1 common stock split on May 27, 2016 and a 3-for-1 common stock split on July
1, 2017. Net income per share and diluted net income per share have calculated as if these stock splits had taken placeat the beginning of 2016.
3. Diluted net income per share for the year ended Dec 31, 2016 are is calculated based on the average stock price during
the period from the initial listing date to the third end of the fiscal year ending December 31,2016.It is calculated
assuming it to be medium-average stock price. Because the Company’s stock was listed on the Tokyo Stock Exchange,
JASDAQ Market on September 16, 2016.

(2) Financial position
Total assets

Net assets

Millions of yen

As of Sept. 30, 2017
As of Dec. 31, 2016
Reference: Shareholders’ equity (millions of yen)

Shareholders’ equity ratio

Millions of yen

2,310
2,277
As of Sept. 30, 2017: 1,978%

1,978
1,934
As of Dec. 31, 2016: 1,934

85.6
84.9

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Yen

Year-end

Yen

Yen

Total
Yen

Year ended Dec. 31, 2016
0.00
102.00102.00Year ending Dec. 31, 20170.00
Year ending Dec. 31, 2017 (Forecast)
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. Breakdown of the 2016 dividend: Ordinary dividend: 51.00 yen; Commemorative dividend: 51.00 yen
3. Nomura System conducted a 3-for-1 common stock split on July 1, 2017. The year-end dividend per share for 2016
has not been adjusted to reflect this stock split.
4. The dividend forecast for 2017 is undecided. Based on the December 2016 policy of constant and stable dividend
returns, Nomura System plans to pay dividends targeting a payout ratio greater than 40%.

3. Forecast for 2017 (January 1 to December 31, 2017)
Net sales
Millions of yen

Operating income%Millions of yen(Percentages represent year-on-year changes)
ProfitNet income per share

Ordinary income% Millions of yen%

Millions of yen%

Yen

Full year
2,501
2.4
378
21.1
376
20.7
272
40.0
48.86
Notes: 1. Revisions to the most recently announced forecast: Yes
2. We revised the forecast for the full fiscal year. For details, Please refer to the " Notice of Revisions of FinancialForecasts(Upward)" announced today (November 6, 2017).

3. Nomura System conducted a 3-for-1 common stock split on July 1, 2017. Net income per share has been calculated asif this stock split had taken place at the beginning of 2017.

* 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, 2017:

5,579,400 shares

As of Dec. 31, 2016:

5,558,400 shares

As of Dec. 31, 2016:

0 share2) Number of treasury shares at the end of the period

As of Sept. 30, 2017:

165 shares

3) Average number of shares outstanding during the period
Nine months ended Sept. 30, 2017: 5,569,748 shares

Nine months ended Sept. 30, 2016:

4,341,450 share

Note: Nomura System conducted a 100-for-1 common stock split on May 27, 2016 and a 3-for-1 common stock split on July 1,
2017. Number of shares has been calculated as if these stock splits had taken place at the beginning of 2016.
* 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 2017

Contents of Attachments
1. Quarterly Financial Statements and Notes

2(1) Quarterly Balance Sheet2(2) Quarterly Statement of Income3(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 2017

1. Quarterly Financial Statements and Notes(1) Quarterly Balance Sheet(Thousands of yen)
Third Quarter of 2017
(As of Sept. 30, 2017)2016(As of Dec. 31, 2016)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Work in process
OtherTotal current assets

1,828,785

1,836,168

372,696

413,458

7,012

75020,324

14,7722,228,816

2,265,148

12,904

9,876

218

218

35,30034,426

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

48,42344,5202,277,238

2,309,668

Accounts payable-trade204,279

183,165

Income taxes payable

74,40774,707

Other

61,10969,879Total current liabilities

339,794

327,751

3,423

3,452

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,423

3,452

343,217331,203

Capital stock

290,207292,832Capital surplus

246,707249,332

Retained earnings

1,397,107

1,436,115

-

(202)

1,934,022

1,978,077-

388

1,934,022

1,978,465

2,277,238

2,309,668

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

Treasury stock
Total shareholders’ equity
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 2017(2) Quarterly Statement of Income(For the Nine-month Period)

Net sales

1,779,171(Thousands of yen)First nine months of 2017
(Jan. 1 – Sept. 30, 2017)
1,899,933

Cost of sales

1,316,944

1,342,697

Gross profit

462,226

557,236

Selling, general and administrative expenses

231,559

220,320

Operating income

230,668

336,916

Interest income

129

17

Other

213

1342

18

First nine months of 2016
(Jan. 1 – Sept. 30, 2016)

Non-operating income

Total non-operating income
Non-operating expenses
Stock issuance cost
Valuation loss on investment securities
Other

3,980

--

1,645

136

764

4,116

2,409

226,894

334,525

Gain on sale of fixed assets

577-Total extraordinary income

577-Profit before income taxes

227,471334,525

Income taxes-current

85,165102,516

Income taxes-deferred

4,801

4,016

Total income taxes

89,965

106,532

Profit137,506

227,993

Total non-operating expenses
Ordinary income
Extraordinary income

3Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2017(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