Non-consolidated Financial Results for the Year Ended December 31, 2018
[Japanese GAAP]
February 13, 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
March 26, 2019
Scheduled date of Annual General Meeting of Shareholders
March 26, 2019
Scheduled date of filing annual securities report:
March 27, 2019
Scheduled date of dividend payment:
Preparation of supplementary materials for annual financial results:
Yes
Holding of annual y financial results meeting:Yes (for institutional investors and analysts)(All amounts are rounded off to the nearest million yen)

1. Financial Results for the Fiscal Year Ended December 31, 2018 (January 1 to December 31, 2018)(1) Results of operations(Percentages represent year-on-year changes)
Fiscal year ended
December 31, 2018
December 31, 2017

Net sales

Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

2,541
2,5340.33.8391407

△4.0
30.3

4064050.3
29.9277299

△7.4
53.7

Net income pershare

Diluted net
income per share

Rate of return onequityOrdinary income
to total assets ratio

Operating income
to net sales ratio

Yen
Yen%%%
Fiscal year ended
13.0
16.6
15.4
December 31, 2018
48.97
47.66
15.0
17.2
16.1
December 31, 2017
53.60
51.61
Reference: Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2018: ¥ - million
Fiscal year ended December 31, 2017: ¥ - million
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

Shareholders’ equity
ratio

Net assets

Net assets per share

As ofMillions of yen
Millions of yen%%
December 31, 2018
2,479
2,203
88.8
386.27
December 31, 2017
2,425
2,062
85.0
366.26
Reference: Shareholders’ equity (millions of yen) As of Dec. 31, 2018: 2,201
As of Dec. 31, 2017: 2,062
Notes: 1. Nomura System conducted a 3-for-1 common stock split on July 1, 2017. The Net asset per share have calculated as if
these stock splits had taken place at the beginning of 2017.

(3) Non-consolidated Cash Flows
Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

231362△405△5△106
△171

1,735
2,015

Dividend per share
2Q-end 3Q-end Year-end

Total

Fiscal year ended
December 31, 2018
December 31, 2017

2. Dividends
1Q-endFiscal Year ended Dec.
31, 2017
Fiscal Year ended Dec.
31, 2018
Fiscal Year ending Dec.
31, 2018 (Forecast)

Cash and cash
equivalents at theend of period

Cash flows fromoperating activities

Total
Dividends

Payoutratio

Dividends
to net assets

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

-0.00

-

22.00

22.00

124

41.0

6.2

-

0.00

-

22.00

22.00

125

44.9

5.8

-

0.00

-

22.00

22.00

-

3. Forecast for 2019 (January 1 to December 31, 2019)
Net salesFirst half
Full year

Operating income

Millions of yen%

1,232
2,685

△2.4
5.7

Millions ofyen133393

Ordinary income%Millions ofyen△30.50.5133393(Percentages represent year-on-year changes)
ProfitNet income per share%

Millions of yen%

Yen

△32.0
△3.290268

△26.8
△3.1

15.87
47.02

* Notes(1) 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

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

As of Dec. 31, 2018:

5,699,100 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 Dec. 31 2018:

165 shares

3) Average number of shares outstanding during the period
Jan. through Dec, 2018:

5,646,867 sharesJan. through Dec, 2017:

5,573,240 share

Note: Nomura System conducted a 3-for-1 common stock split on July 1, 2017. Number of shares has been calculated as ifthese stock splits had taken place at the beginning of 2017.
* This document is not subject to audit procedures in accordance with the Financial Instruments and Exchange Act.
* 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 Year Ended December 31, 2018

Contents of Attachments
1. Non-Consolidated Financial Statements and Notes

2(1) Non-Consolidated Balance Sheet

2(2) Non-Consolidated Statement of Income

4(3) Non-Consolidated Statements of Changes in Net Assets

5(4) Non-Consolidated Statement of Cash Flows

7(5) Notes to Non-Consolidated Financial Statements

8Going Concern Assumption

81Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018

1. Non-Consolidated Financial Statements and Notes(1) Non-Consolidated Balance Sheet(Thousands of yen)2018(As of Dec. 31, 2018)2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits

2,015,412

1,734,978339,755

302,611Work in process

1,543－Prepaid expenses

7,228

5,847

Deferred tax assets

6,919

5,827

Other

5,467

5,113

2,376,324

2,054,375

Accounts receivable-trade

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
VehiclesAccumulated depreciation

12,78812,788△11,228△11,496

1,559

1,291

11,44011,440△6,139△7,904

5,301

3,536

Tools, furniture and fixtures

21,563

12,480

Accumulated depreciation△15,266△8,764Tools, furniture and fixtures, net

6,297

3,716

Total property, plant and equipment

13,158

8,544

Vehicles, net

Intangible assets
218

218

218

218

Investment securities

805

361,841

Deferred tax assets

16,217

29,831

Other

17,78723,715

Total Investments and other assets

34,809415,387

48,185424,149

2,424,509

2,478,524

Accounts payable-trade

201,881

138,820

Accounts payable-other34,13023,727

Other
Total Intangible assets
Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities

Income taxes payable

80,99873,955

Deposits received

15,753

15,584

Other25,821

20,239Total current liabilities

358,582

272,325

3,462

3,501

Non-current liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets

2

3,462

3,501

362,044

275,826

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 20182017
(As of Dec. 31, 2017)2018(As of Dec. 31, 2018)

Shareholders’ equity
299,357

308,245

Legal capital surplus

255,857

264,745

Total Capital surplus

255,857

264,745

1,506,871

1,659,557

1,506,871

1,659,557

(202)

(202)

2,061,884

2,232,245－△31,004

Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total Valuation and translation adjustments
Stock acquisition rights
Total net assets
Total liabilities and net assets

3－△31,004

582

1,357

2,062,466

2,202,699

2,424,509

2,478,524

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018

(2) Non-Consolidated Statement of Income(The Year Ended December 31, 2018)
For the fiscal year
Ended December 31,2017
2,533,914(Thousands of yen)
For the fiscal year
Ended December 31,2018
2,540,800

Cost of sales

1,817,907

1,850,721

Gross profit

716,007690,079

Selling, general and administrative expenses

308,744299,310

Operating income

407,263

390,769－3,750Gain on sales of investment securities－7,002

Subsidy income－4,518

Other

1819

Total non-operating income

18

15,290

1,645

－768

86

2,414

86

Ordinary income

404,867

405,973

Profit before income taxes

404,867

405,973

Income taxes-current

106,174

128,274

Net sales

Non-operating income
Dividends income

Non-operating expenses
Valuation loss on investment securities
Other
Total non-operating expenses

△57

1,161

Total income taxes

106,117

129,435

Profit298,750

276,538

Income taxes-deferred

4Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018

(3) Non-Consolidated Statements of Changes in Net Assets
For the fiscal year ended December 31, 2017
(Thousand yen)
Shareholders' equity
Capital surplus
Capital stock

Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）

Legal capitalsurplusRetained earnings

Other retained
earnings
Total Capital
Total Retained
Retained
surplusearnings
earnings brought
forward290,207

246,707

246,707

9,150

9,150

9,150

Profit1,397,107

1,397,107△188,986
298,750△188,986
298,750

Acquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

9,150

9,150

9,150

109,764

109,764

299,357

255,857

255,857

1,506,871

1,506,871

Shareholders' equity
Treasury stock
Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）－Net changes of items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent periodValuation difference on Total Valuation and Stock acquisition
Totalrights
shareholders’equityavailable-for-sale curities translation adjustments
1,934,022－－－

Total net
assets1,934,022

18,30018,300△188,986
298,750△188,986

△202

△202

582

△202

△202

127,862－－582

128,444

2,061,884

－

－

582

2,062,466

ProfitAcquisition of treasury stock

Valuation and translation adjustments△202

298,7505582

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018

For the fiscal year ended December 31, 2018
(Thousand yen)
Shareholders' equity
Capital surplus
Capital stock

Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）

Legal capitalsurplusRetained earnings

Other retained
earnings
Total Capital
Total Retained
Retainedsurplus
earnings
earnings brought
forward299,357

255,857

255,857

8,888

8,888

8,888

Profit1,506,871

1,506,871△123,852△123,852

276,538

276,538

Acquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes ofitems during period
Balance at end ofcurrent period

8,888

8,888

8,888

152,686

152,686

308,245

264,745

264,745

1,659,558

1,659,557

Shareholders' equity
Treasury stock
Balance at beginningof current period
Changes of items
during period
Issuance of newshares
Issuance of new shares（Exerciseof stock acquisition rights）△202

ProfitAcquisition of treasury stock
Net changes of items other thanshareholders' equity
Total changes ofitems during period
Balance at end ofcurrent period

Valuation and translation adjustments

Valuation difference on Total Valuation and Stock acquisition
Totalrights
shareholders’equityavailable-for-sale curities translation adjustments
2,061,884－－582

2,062,466

17,775

17,775△123,852△123,852

276,538－

Total net
assets276,538－－△31,004△31,004776△30,228－

170,461△31,004△31,004776

140,233△202

2,232,345△31,004△31,004

1,357

2,202,699

6

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018(4) Non-Consolidated Statement of Cash Flows(Thousands of yen)
For the fiscal year
Ended December 31,2018For the fiscal year
Ended December 31,2017
Cash flows from operating activities
Net income before income taxes

404,867

405,973

Depreciation and amortization

4,344

4,614

Loss (gain) on valuation of investment securities

1,645--(3,750)

Dividends income-(7,002)

Decrease (increase) in accounts receivable-trade32,94137,144

Decrease (increase) in inventories

5,468

1,543

Increase (decrease) in accounts payable-trade(2,398)(63,060)

Increase (decrease) in accrued consumption taxes

3,057(9,911)

Other

13,784(5,513)

Subtotal

463,709

360,038-

3,750

Income taxes paid

(101,881)(133,103)

Net cash provided by operating activities

361,828

230,685

Loss (gain) on sales of investment securities

Dividends income received

Cash flows from investing activities(4,598)-Purchase of investment securities-(633,884)

Proceeds from sales of investment securities-

235,163

Purchase of property, plant and equipment

Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of stock resulting fromexercise of subscription rights to shares
Purchase of treasury stock-(6,400)(4,598)(405,121)

18,30017,775(202)-Dividend paid

(188,701)(123,774)

Net cash provided by (used in) financing activities(170,603)(105,999)

Increase (decrease) in cash and cash equivalents

186,628(280,435)

Cash and cash equivalents at beginning of period

1,828,785

2,015,412

Cash and cash equivalents at end of period

2,015,412

1,734,9787

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 2018(5) Notes to Non-Consolidated Financial Statements
Going Concern Assumption
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.

8