Non-consolidated Financial Results for the Year Ended December 31, 2019
[Japanese GAAP]
February 14, 2020

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
Yasuo Nemoto, Managing Director, General Manager of Administrative Dept
Tel: +81-3-6277-0133
March 24, 2020
Scheduled date of Annual General Meeting of Shareholders
March 24, 2020
Scheduled date of filing annual securities report:
March 25, 2020
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, 2019 (January 1 to December 31, 2019)(1) Results of operations(Percentages represent year-on-year changes)
Fiscal year ended
December 31, 2019
December 31, 2018

Net sales

Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

2,412
2,541

△5.10.3334391△14.4△4.0354406

△12.9
0.3

241277△12.9△7.4

Rate of return onequity

Ordinary income
to total assets ratio

Net income pershare

Diluted net
income per share

Operating income
to net sales ratio

Yen
Yen%%%
Fiscal year ended
10.7
14.0
13.9
December 31, 2019
21.08
20.76
13.0
16.6
15.4
December 31, 2018
48.97
47.66
Reference: Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2019: ¥ - million
Fiscal year ended December 31, 2018: ¥ - million
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.

(2) Financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

As ofMillions of yen
Millions of yen%%
December 31, 2019
2,582
2,304
89.2
201.10December 31, 2018
2,479
2,203
88.8
386.27
Reference: Shareholders’ equity (millions of yen) As of Dec. 31, 2019: 2,201
As of Dec. 31, 2018: 2,062
Notes: Nomura System conducted a 2-for-1 common stock split on August 1, 2019. Net assets per share have calculated as if
these stock splits had taken place at the beginning of 2018.

(3) Non-consolidated Cash Flows

Cash and cash
equivalents at theend of period

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

187231△25△405

△137
△106

1,760
1,735

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

Total

Fiscal year ended
December 31, 2019
December 31, 2018

2. Dividends
1Q-end
Yen

Yen

Yen

Yen

Yen

Total
Dividends
Millions of yen

Payoutratio

Dividends
to net assets%%

Fiscal Year ended Dec.
0.00
22.00
22.00
125
44.9
5.8
31, 2018
Fiscal Year ended Dec.
0.00
11.00
11.00
125
52.1
3.7
31, 2019
Fiscal Year ending Dec.
0.00
11.00
11.00
31, 2020 (Forecast)
Notes: Nomura System conducted a 2-for-1 common stock split on August 1, 2019. The year-end dividend per share for 2018 has
not been adjusted to reflect this stock split.

3. Forecast for 2020 (January 1 to December 31, 2020)
Net salesFirst half
Full year

Operating income

Millions of yen%

1,284
2,700

4.5
12.0

Millions ofyen

139379Ordinary income%Millions ofyen

△19.7
13.3

139379(Percentages represent year-on-year changes)
Profit
Net income per share%

Millions of yen%

Yen

△23.4
7.1

95258

△23.7
7.4

8.3
22.56

* 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, 2019:11,505,000 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 Dec. 31 2019:50,330 shares

3) Average number of shares outstanding during the period
Jan. through Dec, 2019:11,420,650 sharesJan. through Dec, 2018:11,293,734 share

Notes: Nomura System conducted a 2-for-1 common stock split on August 1, 2019. The number of shares issued (common stock)has calculated as if these stock splits had taken place at the beginning of 2018.
* 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)
2019
(As of Dec. 31, 2019)2018(As of Dec. 31, 2018)
AssetsCurrent assets
Cash and deposits

1,734,9781,759,895

302,611

330,706

Work in process-25,043

Prepaid expenses

5,847

5,685

Other

5,113

5,254

2,048,548

2,126,583

12,78812,788△11,496△11,725

1,291

1,062

11,44011,440△7,904△9,081

3,536

2,358

Accounts receivable-trade

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, netVehicles
Accumulated depreciation
Vehicles, net
Tools, furniture and fixtures

12,48011,122

Accumulated depreciation△8,764△8,850Tools, furniture and fixtures, net

3,716

2,271

Total property, plant and equipment

8,544

5,692

218

218

218

218

Investment securities

361,841

384,193

Deferred tax assets

29,831

40,773

Other

23,71524,757

Total Investments and other assets

415,387449,723

424,149455,634

2,478,524

2,582,217

138,820

140,795

Intangible assets
Other
Total Intangible assets
Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other

23,727

27,198

Income taxes payable

73,95557,840

Deposits received

15,584

15,837

Other

20,23932,725

Total current liabilities

272,325

274,395

Asset retirement obligations

3,501

3,541

Total non-current liabilities

3,501

3,541

275,826

277,936

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

2

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Year Ended December 31, 20182018
(As of Dec. 31, 2018)2019(As of Dec. 31, 2019)308,245

316,156

Legal capital surplus

264,745

272,656

Total Capital surplus

264,745

272,656

1,659,557

1,774,955

1,659,557

1,774,955

Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total Retained earnings
Treasury stock△202△27,4022,232,245

2,336,364

Valuation difference on available-for-sale securities△31,004△32,788

Total Valuation and translation adjustments△31,004△32,788

Total shareholders’ equity
Valuation and translation adjustments

Stock acquisition rights
Total net assets
Total liabilities and net assets

3

1,357

705

2,202,699

2,304,281

2,478,524

2,582,217

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, 2019)
For the fiscal year
Ended December 31,2018
2,540,800(Thousands of yen)
For the fiscal year
Ended December 31,2019
2,411,749

Cost of sales

1,850,721

1,780,039

Gross profit

690,079

631,711

Selling, general and administrative expenses

299,310297,307

Operating income

390,769

334,403

Dividends income

3,750

16,493Gain on sales of investment securities

7,002

-

Subsidy income

4,518

2,884

1917

15,29019,393

Net sales

Non-operating income

Other
Total non-operating income
Non-operating expenses
Valuation loss on investment securities-Other86

1

Total non-operating expenses

861

Ordinary income

405,973353,796

Profit before income taxes

405,973353,796

Income taxes-current

128,274

117,350

1,161△4,328

Total income taxes

129,435

113,022

Profit276,538

240,774

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, 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 retainedearnings
Total Capital
Total Retained
Retainedsurplus
earningsearnings brought
forward299,357

255,857

255,857

8,888

8,888

8,888

Profit1,506,871

1,506,871△123,852
276,538△123,852
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

Valuation and translation adjustments

Valuation difference on Total Valuation and Stock acquisition
Totalrights
shareholders’equityavailable-for-sale curities translation adjustments
2,232,345△31,004△31,004

1,357

Total netassets

2,202,699

17,775

17,775△123,852
276,538△123,852

Acquisition of treasury stock－－－

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

Profit276,538

5

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

For the fiscal year ended December 31, 2019
(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
forward308,245

267,745264,745

7,911

7,911

7,911

Profit1,659,558

1,659,557△125,377△125,377

240,774

240,774

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

7,911

7,911

7,911

115,397

115,397

316,156

272,656

272,656

1,774,955

1,774,955

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
2,232,345△31,004△31,004

1,357

2,202,699

15,822

15,822△125,377△125,377

240,774△27,200

Total net
assets240,774△27,200△27,200△1,784△1,784△652△2,437△27,200

104,019△1,784△1,784△652

101,583△27,4022,232,345△32,788△32,788705

2,304,281

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 31,2019

For the fiscal year
Ended December 31,2018
Cash flows from operating activities
Net income before income taxes

405,973353,796

Depreciation and amortization

4,614

2,851

Dividends income(3,750)(16,493)

Loss (gain) on sales of investment securities(7,002)-Decrease (increase) in accounts receivable-trade37,144(28,095)

Decrease (increase) in inventories

1,543(25,043)(63,060)

1,974

Increase (decrease) in accounts payable-trade
Increase (decrease) in accrued consumption taxes(9,911)

15,956

Other(5,513)(1,132)

Subtotal

360,038

303,816

3,750

16,493

Income taxes paid

(133,103)(133,136)

Net cash provided by operating activities

230,685

187,172

Purchase of investment securities(633,884)(24,923)

Proceeds from sales of investment securities

235,163-

Other(6,400)-(405,121)(24,923)

17,775

15,117-(27,200)

Dividend paid(123,774)(125,248)

Net cash provided by (used in) financing activities

Dividends income received

Cash flows from investing activities

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(105,999)(137,331)

Increase (decrease) in cash and cash equivalents(280,435)

24,918Cash and cash equivalents at beginning of period

2,015,412

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

1,734,9781,759,895

7

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