Non-consolidated Financial Results for the Second Quarter of 2018
(Six Months Ended June 30, 2018)[Japanese GAAP]
August 8, 2018

Company name:
Stock code:
Representative:
Contact:

Nomura System Corporation Co., Ltd.
Listing: Tokyo Stock Exchange(the first section)
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
August 8, 2018
Scheduled date of filing of Quarterly Report:
Scheduled date of dividend payment:
Preparation of supplementary materials for quarterly financial results: YesHolding 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, 2018) of 2018
(1) Results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Millions of yen

Six months ended Jun. 30, 2018
Six months ended Jun. 30, 2017

% Millions of yen

1,262
1,239

1.9
4.8191
209

Ordinary income%Millions ofyen

195
207

△8.6
26.6

Net income per share

Diluted net income per shareYenYen

ProfitMillions of%yen

124147

△6.0
25.5%

△16.0
48.5

Six months ended Jun. 30, 2018
21.90
21.29
Six months ended Jun. 30, 2017
26.42
25.48
Notes: As Nomura System Corporation (“Nomura System”) conducted 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 place at the beginning of 2017.

(2) Financial position
Total assets

Net assets

Millions of yen

As of June. 30, 2018
As of December. 31, 2017
Reference: Shareholders’ equity (millions of yen)

2,336
2,425
As of Jun. 30, 2018:

2. Dividends
1Q-end

2,065

Yen%

2,066
2,062
As of Dec. 31, 2017: 2,062

Dividend per share
3Q-end2Q-endYen

Shareholders’ equity ratio

Millions of yen

Year-end

Yen

Yen

88.4
85.0

Total
Yen

Year ended Dec. 31, 2017
0.00
22.00
22.00
Year ending Dec. 31, 2018
0.00
Year ending Dec. 31, 2018 (Forecast)
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. The dividend forecast for 2018 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 2018 (January 1 to December 31, 2018)
Net sales
Millions of yen

Operating income%Millions ofyen

Ordinary income%Millions ofyen

Full year
2,590
2.2418
2.6
Notes: Revisions to the most recently announced forecast: None418(Percentages represent year-on-year changes)
Profit
Net income per share%

Millions of yen%

Yen

3.2285△4.550.66

* 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, 2018:

5,645,400 shares

As of Dec. 31, 2017:

5,629,800 shares

As of Dec. 31, 2017:

165 share

2) Number of treasury shares at the end of the period

As of Jun. 30, 2018:

165 shares

3) Average number of shares outstanding during the period
Six months ended Jun. 30, 2018:

5,642,653 shares

Six months ended Jun. 30, 2017:

5,565,918 share

Note: Nomura System conducted 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 2017.
* 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 Wednesday, August 8, 2018.
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 2018

Contents of Attachments
1. Quarterly Financial Statements and Notes

2(1) Quarterly Balance Sheet

2(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

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Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2018

1. Quarterly Financial Statements and Notes(1) Quarterly Balance Sheet(Thousands of yen)
Second Quarter of 2018(As of Jun. 30, 2018)2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Work in process
Other
Total current assets

2,015,412

1,935,969

339,755

340,768

1,543-

19,613

13,686

2,376,324

2,290,423

13,15810,700218

218

34,80934,482

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

48,18545,401

2,424,509

2,335,823

Accounts payable-trade

201,881

129,426

Income taxes payable

80,99876,158Other

75,70460,292

Total current liabilities358,582

265,876

3,462

3,481

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,462

3,481

362,044

269,357

Capital stock

299,357

301,307

Capital surplus

255,857

257,807

Retained earnings

1,506,871

1,506,584

(202)

(202)

2,061,884

2,065,497

582

969

2,062,466

2,066,466

2,424,509

2,335,823

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

Treasury stock
Total shareholders’ equity
Stock acquisition rightsTotal net assets
Total liabilities and net assets

2Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2018

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

1,238,700(Thousands of yen)First six months of 2018
(Jan. 1 – Jun. 30, 2018)
1,262,310

Cost of sales

881,437

919,392

Gross profit

357,264

342,918

Selling, general and administrative expenses

148,396

152,074

Operating income

208,868

190,844

Interest income

810

Other-4,009

Total non-operating income

94,018First six months of 2017
(Jan. 1 – Jun. 30, 2017)
Net sales

Non-operating income

Non-operating expenses
Valuation loss on investment securities

1,645-98

1,654

8

Ordinary income

207,223

194,855

Profit before income taxes

207,223

194,855

Income taxes-current

59,30069,550

Income taxes-deferred

868

1,739

Total income taxes

60,16871,290

Profit147,054

123,565

Other
Total non-operating expenses

3Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2018(3) Quarterly Statement of Cash Flows(For the Six-month Period)(Thousands of yen)First six months of 2018
(Jan. 1 – Jun. 30, 2018)

First six months of 2017
(Jan. 1 – Jun. 30, 2017)
Cash flows from operating activities
Net income before income taxes

207,223

194,855

Depreciation and amortization

2,019

2,457

Loss (gain) on valuation of investment securities

1,645-Decrease (increase) in accounts receivable-trade70,649(1,014)

Decrease (increase) in inventories
Increase (decrease) in accounts payable-trade

938

1,543

(42,789)(72,455)

Increase (decrease) in accrued consumption taxes(1,446)(9,150)

Other(12,209)(4,458)Subtotal

226,029

111,779

Income taxes paid

(51,594)(71,590)

Net cash provided by operating activities

174,435

40,189Cash flows from financing activities
Proceeds from issuance of stock resulting fromexercise of subscription rights to shares
Purchase of treasury stock

4,425

3,900

(202)

-Dividend paid

(188,721)(123,533)

Net cash provided by (used in) financing activities(184,499)(119,633)

Increase (decrease) in cash and cash equivalents(10,063)(79,444)

Cash and cash equivalents at beginning of period

1,828,785

2,015,412

Cash and cash equivalents at end of period

1,818,721

1,935,969

4

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2018(4) 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.

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