Non-consolidated Financial Results for the Second Quarter of 2017
(Six Months Ended June 30, 2017)[Japanese GAAP]
August 10, 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:
August 10, 2017
Scheduled date of dividend payment:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)(All amounts are rounded off to the nearest million yen)

1. Financial Results for the Second Quarter (January 1 to June 30, 2017) of 2017
(1) Results of operations(Percentages represent year-on-year changes)
Net sales
Six months ended Jun. 30, 2017
Six months ended Jun. 30, 2016

Operating income

Millions of yen%

Millions of yen

1,239
1,182

4.8-209
165

Ordinary income% Millions of yen

26.6-

207
165

Net income per share

Diluted net income per share

Yen

Yen

Profit% Millions of yen

25.5-147
99%

48.5-

Six months ended Jun. 30, 2017
26.42
25.48
Six months ended Jun. 30, 2016
23.17
Notes: 1. As Nomura System Corporation (“Nomura System”) did not prepare a quarterly financial statement for 2015, theyear-on-year changes for the six months ended June 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 six months ended June 30, 2016 is not indicated. Although there were residual
securities, it is not possible to determine an 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 Jun. 30, 2017
As of Dec. 31, 2016
Reference: Shareholders’ equity (millions of yen)

Shareholders’ equity ratio

Millions of yen

2,193
2,277
As of Jun. 30, 2017:

1,896%

1,897
1,934As of Dec. 31, 2016: 1,934

86.5
84.9

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

Yen

Year-end

Yen

YenTotal
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)
Profit
Net income per share

Ordinary income% Millions of yen%

Millions of yen%

Yen

Full year
2,501
2.4
337
7.7
335
7.4
204
4.936.63
Notes: 1. Revisions to the most recently announced forecast: None
2. 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 Jun. 30, 2017:

5,576,100 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 Jun. 30, 2017:

165 shares

3) Average number of shares outstanding during the period
Six months ended Jun. 30, 2017:

5,565,918 shares

Six months ended Jun. 30, 2016:

4,273,467 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.
* Disclosure of the information meeting materials
Nomura System plans to hold a financial results meeting for institutional investors and analysts on Friday, August 18, 2017.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

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

Contents of Attachments
1. Quarterly Financial Statements and Notes

2(1) Quarterly Balance Sheet2(2) Quarterly Statement of Income3(3) Quarterly Statement of Cash Flows

4(4) Notes to Quarterly Financial Statements

5

Going Concern Assumption

5

Significant Changes in Shareholders’ Equity

51

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

1. Quarterly Financial Statements and Notes(1) Quarterly Balance Sheet(Thousands of yen)
Second Quarter of 2017
(As of Jun. 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

1,818,721

372,696

302,047

7,012

6,074

20,324

20,4942,228,816

2,147,336

12,904

10,885218

218

35,30034,134Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

48,42345,2382,277,238

2,192,574

Accounts payable-trade204,279

161,489

Income taxes payable

74,40781,806

Other

61,10949,321

Total current liabilities

339,794292,616

3,423

3,442

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,423

3,442

343,217

296,058

Capital stock

290,207292,420

Capital surplus

246,707248,920

Retained earnings

1,397,107

1,355,175

-

(202)

1,934,022

1,896,313-

203

1,934,022

1,896,516

2,277,238

2,192,574

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 Second Quarter of 2017(2) Quarterly Statement of Income(For the Six-month Period)

1,182,303(Thousands of yen)First six months of 2017
(Jan. 1 – Jun. 30, 2017)
1,238,700

Cost of sales

872,366

881,437

Gross profit

309,937

357,264

Selling, general and administrative expenses

145,018

148,396

Operating income

164,919

208,868

Interest income

123

8

Other

213

0

Total non-operating income

336

9-

1,645

Other

131

9

Total non-operating expenses

131

1,654

165,124

207,223

Gain on sale of fixed assets

577-

Total extraordinary income

577-

Profit before income taxes

165,701

207,223

Income taxes-current

63,57159,300

Income taxes-deferred3,114

869

Total income taxes

66,68560,168

Profit99,016

147,054First six months of 2016
(Jan. 1 – Jun. 30, 2016)
Net sales

Non-operating income

Non-operating expenses
Valuation loss on investment securities

Ordinary income
Extraordinary income

3Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2017(3) Quarterly Statement of Cash Flows(For the Six-month Period)(Thousands of yen)First six months of 2017
(Jan. 1 – Jun. 30, 2017)

First six months of 2016
(Jan. 1 – Jun. 30, 2016)
Cash flows from operating activities
Net income before income taxes

165,701

207,223

Depreciation and amortization

2,310

2,019

Loss (gain) on sales of property, plant and equipment

(577)

-

Loss (gain) on valuation of investment securities

-

1,645

Decrease (increase) in accounts receivable-trade

20,50170,649Decrease (increase) in inventories

(104)

938

Increase (decrease) in accounts payable-trade(15,385)(42,789)

Increase (decrease) in accrued consumption taxes(3,509)(1,446)

Other(3,454)(12,209)

Subtotal

165,483

226,029

Income taxes paid

(57,431)(51,594)

Net cash provided by operating activities

108,052

174,435(11,440)-

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

4,167

-

Net cash used in investing activities(7,273)-

10,125

4,425

Cash flows from financing activities
Proceeds from issuance of stock resulting fromexercise of subscription rights to shares
Purchase of treasury stock
Dividend paid
Net cash provided by (used in) financing activities-(202)-(188,721)

10,125(184,499)

Increase (decrease) in cash and cash equivalents

110,904(10,063)

Cash and cash equivalents at beginning of period

1,264,137

1,828,785

Cash and cash equivalents at end of period

1,375,041

1,818,721

4

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second 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.

5