Non-consolidated Financial Results for the Second Quarter of 2019
(Six Months Ended June 30, 2019)[Japanese GAAP]
August 9, 2019

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 9, 2019
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, 2019) of 2019(1) Results of operations(Percentages represent year-on-year changes)
Net sales

Six months ended Jun. 30, 2019
Six months ended Jun. 30, 2018

Operating income

Millions of yen% Millions of yen

1,229
1,262

173
191

△2.7
1.9

Ordinary income%Millions ofyen

182
195

△9.1
△8.6

Net income per share

Diluted net income per shareYen

Yen

ProfitMillions of%
yen

125
124

△6.7
△6.0%

0.8
△16.0

Six months ended Jun. 30, 2019
10.91
10.75
Six months ended Jun. 30, 2018
10.95
10.64
Notes: 1.Nomura System conducted a 2-for-1 common stock split on August 1, 2019. Net income per share and diluted net
income per share have calculated as if these stock splits had taken place at the beginning of 2018.

(2) Financial position
Total assets

Net assets

Millions of yen

As of June. 30, 2019
As of December. 31, 2018
Reference: Shareholders’ equity (millions of yen)

2,4452,479
As of Jun. 30, 2019:

2. Dividends
1Q-end

2,184

Yen%

2,185
2,203
As of Dec. 31, 2018: 2,201

Dividend per share
3Q-end2Q-endYen

Shareholders’ equity ratio

Millions of yen

Year-end

Yen

Yen

89.3
88.8

Total
Yen

Year ended Dec. 31, 2018
0.00
22.00
22.00
Year ending Dec. 31, 20190.00
Year ending Dec. 31, 2019 (Forecast)
11.00
11.00
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. The year-end dividend per share for 2018has not been adjusted to reflect this stock split.

3. Forecast for 2019 (January 1 to December 31, 2019)
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
2,685
5.73930.5393
268
23.51
△3.2
△3.1Notes: 1. Revisions to the most recently announced forecast: None
2. Nomura System conducted a 2-for-1 common stock split on August 1, 2019. Net income per share has been calculated
as if this stock split had taken place at the beginning of 2019.

* 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, 2019:11,431,800 shares

As of Dec. 31, 2018:

11,398,200 shares

As of Dec. 31, 2018:330 share

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

As of Jun. 30, 2019:330 shares

3) Average number of shares outstanding during the period
Six months ended Jun. 30, 2019:11,418,274 shares

Six months ended Jun. 30, 2018:

11,285,306 share

Notes:Nomura System conducted a 2-for-1 common stock split on August 1, 2019. Net income per share and diluted net
income per share have calculated as if these stock splits had taken place at the beginning of 2018.
* 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 Monday, August 26, 2019.
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 2019

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 2019

1. Quarterly Financial Statements and Notes(1) Quarterly Balance Sheet(Thousands of yen)
Second Quarter of 2019
(As of Jun. 30, 2019)2018(As of Dec. 31, 2018)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Work in process

1,734,9781,714,565

302,611274,795－

15,864

10,9608,220

2,048,548

2,013,444

8,544

7,118

218

218

Investment Securities

361,841

356,401

Other

59,37367,960Total Investments and other assets

421,214424,362

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

429,976431,698

2,478,524

2,445,142

Accounts payable-trade138,820

118,852

Income taxes payable

73,955

61,773Other59,54975,949Total current liabilities

272,325

256,574

3,501

3,521

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,501

3,521

275,826

260,095

308,245

310,349

Capital surplus

264,745

266,849

Retained earnings

1,659,557

1,658,710(202)(202)

2,232,245

2,235,707

Valuation difference on available-for-sale securities△31,004△52,070

Total Valuation and translation adjustments△31,004△52,070

1,357

1,410

2,202,699

2,185,047

2,478,524

2,445,142

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

Treasury stock
Total 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 Second Quarter of 2019(2) Quarterly Statement of Income(For the Six-month Period)First six months of 2018
(Jan. 1 – Jun. 30, 2018)
1,262,310(Thousands of yen)First six months of 2019
(Jan. 1 – Jun. 30, 2019)
1,228,694

Cost of sales

919,392

903,756

Gross profit

342,918

324,938

Selling, general and administrative expenses

152,074

151,540

Operating income

190,844

173,398

108

Net sales

Non-operating income
Interest income

-

7,950

4,009

--

458

4,018

8,417

Valuation loss on investment securities--Other8

1Total non-operating expenses

81Ordinary income

194,855

181,813

Profit before income taxes

194,855

181,813

Income taxes-current

69,55056,287

Income taxes-deferred

1,739

997

Gain on sales of investment securities
Subsidy income
Other
Total non-operating income
Non-operating expenses

Total income taxes

71,29057,284

Profit123,565

124,529

3

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2019(3) Quarterly Statement of Cash Flows(For the Six-month Period)(Thousands of yen)First six months of 2019
(Jan. 1 – Jun. 30, 2019)

First six months of 2018
(Jan. 1 – Jun. 30, 2018)
Cash flows from operating activities
Net income before income taxes

194,855

181,813

Depreciation and amortization

2,457

1,426

Loss (gain) on valuation of investment securities-(7,950)

Decrease (increase) in accounts receivable-trade(1,014)27,816

1,543(15,864)

Increase (decrease) in accounts payable-trade(72,455)(19,968)

Increase (decrease) in accrued consumption taxes(9,150)13,833

Other(4,458)

4,279

Subtotal

111,779

185,385

Decrease (increase) in inventories-7,950

Income taxes paid

(71,590)(67,979)

Net cash provided by operating activities

40,189125,357

Cash flows from financing activities
Proceeds from issuance of stock resulting fromexercise of subscription rights to shares
Dividend paid

3,900

4,209

(123,533)(125,055)(119,633)(120,846)Interest and dividends income received

Net cash provided by (used in) financing activities
Increase (decrease) in cash and cash equivalents(79,444)(20,412)

Cash and cash equivalents at beginning of period

2,015,412

1,734,978Cash and cash equivalents at end of period

1,935,969

1,714,5654Nomura System Corporation Co., Ltd. (3940) Financial Results for the Second Quarter of 2019(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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