Non-consolidated Financial Results for the Third Quarter of 2019
(Nine Months Ended Sept 30, 2019)[Japanese GAAP]
November 7, 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
Yasuo Nemoto, Managing Director, General Manager of Administrative and Consulting Dept
Tel: +81-3-6277-0133
November 7, 2019
Scheduled date of filing of Quarterly Report:
Scheduled date of dividend payment:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:None(All amounts are rounded off to the nearest million yen)

1. Financial Results for the Third Quarter (January 1 to Sept 30, 2019) of 2019(1) Results of operations(Percentages represent year-on-year changes)
Net sales

Nine months ended Sept. 30, 2019
Nine months ended Sept. 30, 2018

Operating income

Millions of yen% Millions of yen

1,807
1,905

257
300

△5.2
0.3

Ordinary income%Millions ofyen275
315

△14.4
△10.9

Net income per share

Diluted net income per share

YenYenProfitMillions of%yen

188
200

△12.6
△5.8%

△5.8
△12.3

Nine months ended Sept. 30, 2019
16.48
16.24
Nine months ended Sept. 30, 2018
17.71
17.20
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 Sept. 30, 2019
As of December. 31, 2018
Reference: Shareholders’ equity (millions of yen)

2,456
2,479
As of Sept. 30, 2019: 2,262

2. Dividends
1Q-end

Yen%

2,264
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

92.1
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
△3.1
Notes: 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 Sept. 30, 2019:11,431,800 shares

As of Dec. 31, 2018:

11,398,200 shares

As of Dec. 31, 2018:330 share2) Number of treasury shares at the end of the period

As of Sept. 30, 2019:330 shares

3) Average number of shares outstanding during the period
Nine months ended Sept. 30, 2019: 11,422,721 shares

Nine months ended Sept. 30, 2018: 11,288,854 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.

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2019

Contents of Attachments
1. Quarterly Financial Statements and Notes

2(1) Quarterly Balance Sheet

2(2) Quarterly Statement of Income

3(3) Notes to Quarterly Financial Statements

4

Going Concern Assumption

4

Significant Changes in Shareholders’ Equity

41

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2019

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

1,734,9781,679,671

302,611

299,621－17,656

10,96018,144

2,048,548

2,015,093

8,544

6,405

218

218

Investment Securities

361,841

378,042

Other

59,37355,866

Total Investments and other assets

421,214433,908

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

429,976

440,5312,478,524

2,455,624

Accounts payable-trade138,820

105,923

Income taxes payable

73,955

18,612Other59,54963,746

Total current liabilities

272,325

188,281

3,501

3,531

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Asset retirement obligations

3,501

3,531

275,826

191,812308,245

310,349

Capital surplus

264,745

266,849

Retained earnings

1,659,557

1,722,461

(202)

(202)

2,232,245

2,299,458

Valuation difference on available-for-sale securities△31,004△37,055

Total Valuation and translation adjustments△31,004△37,055

1,357

1,410

2,202,699

2,263,812

2,478,524

2,455,624

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equityCapital 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 Third Quarter of 2019(2) Quarterly Statement of Income(For the Nine-month Period)First Nine months of 2018
(Jan. 1 – Sept. 30, 2018)
1,905,328(Thousands of yen)First Nine months of 2019
(Jan. 1 – Sept. 30, 2019)
1,228,694

Cost of sales

1,381,578

903,756

Gross profit

523,750

324,938

Selling, general and administrative expenses

223,514

151,540

Operating income

300,236

173,398

Interest income

1917

Dividend income

3,750

16,493Gain on sales of investment securities

7,002

-

Subsidy income

4,018

-

Net sales

Non-operating income

-

1,644

14,79018,153

Other

57

1

Total non-operating expenses

57

1

314,969

275,219

Profit before income taxes

314,969

275,219

Income taxes-current

110,047

80,584

Income taxes-deferred

5,010

6,354

Other
Total non-operating income
Non-operating expenses

Ordinary income

Total income taxes

115,057

86,938

Profit199,912

188,2803

Nomura System Corporation Co., Ltd. (3940) Financial Results for the Third Quarter of 2019(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.

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