Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]May 10, 2023
Company name: SYSTEM RESEARCH CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3771
URL: https://www.sr-net.co.jp/
Representative: Hiroshi Hirayama, Representative Director and President
Contact: Yoshinobu Ohta, Operating Officer, General Manager, Public Relations Office
Phone: +81-52-413-6820
Scheduled date of ordinary general meeting of shareholders: June 23, 2023
Scheduled date of commencing dividend payments: June 6, 2023
Scheduled date of filing annual securities report: June 23, 2023
Availability of supplementary briefing materials on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for investors and securities analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2023
21,556
17.1
2,501
20.3
2,515
19.0
1,601
7.3
March 31, 2022
18,405
13.9
2,078
32.6
2,113
32.9
1,492
36.9
(Note) Comprehensive income: Fiscal year ended March 31, 2023: ¥1,502 million [2.1%]
Fiscal year ended March 31, 2022: ¥1,471 million [15.9 %]Basic earnings
per share

Diluted earnings
per share

Return on equity%
Fiscal year ended
Yen
Yen
March 31, 2023
191.61
18.5
March 31, 2022
178.52
19.5(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2023: ¥- million
Fiscal year ended March 31, 2022: ¥- million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

14,181
As of March 31, 2023
12,884As of March 31, 2022
(Reference) Equity: As of March 31, 2023: ¥9,123 million
As of March 31, 2022: ¥8,124 million

Million yen

9,135
8,134

Ratio of ordinary
profit to total
assetsRatio ofoperating profit
to net sales

18.5
17.5

11.6
11.2

%

Equity ratio%

Net assets per share
%

64.3
63.0

Yen

1,091.55
972.05

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Million yen

Cash flows fromfinancing activities

Million yen

1,796
1,287

Million yen

(273)
(254)

Annual dividends

Fiscal year ended
March 31, 2022
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Yen

Fiscalyear-end
Yen

Million yen

(501)
(526)

2. Dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Cash and cash
equivalents at end of
period

Total

-

Yen

0.00
0.00

Yen

-

60.00
70.00

60.00
70.00

-

0.00

-

70.00

70.00

7,336
6,314

Ratio of
Total cash
Payout ratio dividends todividends(Consolidated)
net assets(Total)Yen Million yen

%

501
585

(Consolidated)

%

33.6
36.5

6.5
6.7

32.1

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March
31, 2024)(% indicates changes from the previous corresponding period.)
Net sales

Six months
endingSeptember 30,
2023
Full year

Million yen%

10,948

4.3

23,815

10.4

Operating profit

Ordinary profit

Million yen

Million yen%

803 (24.8)
2,516

0.5

% Million yen

803 (24.8)
2,542

Profit attributable toowners of parent

1.0%

Basic earnings
per share

Yen

580

21.4

69.41

1,817

13.4

217.47* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change inscope of consolidation): No
Newly included: - (Company name)
Excluded:- (Company name)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: No(ii) Changes in accounting policies due to other reasons: No(iii) Changes in accounting estimates: No(iv) Restatement: No(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares):
As of March 31, 2023: 8,360,000 shares
As of March 31, 2022: 8,360,000 shares(ii) Number of treasury shares at the end of the period:
As of March 31, 2023: 2,008 shares
As of March 31, 2022: 1,928 shares(iii) Average number of shares during the period:
Fiscal year ended March 31, 2023: 8,358,016 sharesFiscal year ended March 31, 2022: 8,358,072 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31,2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2023
20,936
15.3
2,493
20.4
2,499
19.1
1,603
5.1
March 31, 2022
18,158
12.4
2,070
32.6
2,098
32.8
1,525
40.8

Fiscal year ended
March 31, 2023
March 31, 2022

Basic earnings per
share

Diluted earnings per
share

191.89182.50

-

Yen

Yen

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

14,131
As of March 31, 2023
12,653As of March 31, 2022
(Reference) Equity: As of March 31, 2023: ¥9,150 million
As of March 31, 2022: ¥8,049 million

Equity ratio

Million yen

Net assets per share
%

9,150
8,049

Yen

64.7
63.6

1,094.78
963.02

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 toMarch 31, 2024)(% indicates changes from the previous corresponding period.)
Ordinary profit

Net sales

Six months
endingSeptember 30,
2023
Full year

Million yen%

10,934

7.3

23,786

13.6Million yen

ProfitBasic earnings
per share%

Million yen%

801 (23.6)

578

23.2

69.25

1,814

13.1

217.04

2,535

1.4

Yen

* These consolidated financial results are outside the scope of audit by certified public accountants or audit firms.
* Explanation of the proper use of financial results forecast and other notes(Notes on forward-looking statements, etc.)
The financial results forecast and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions that the Company deems reasonable, and the Company does notintend to guarantee that they will be achieved. In addition, actual results may differ significantly from these forecasts
due to a wide range of factors. For the conditions assumed for the financial results forecast, precautions for the useof the financial results forecast, etc., please refer to “1. Overview of Business Results, etc. (4) Future Outlook” onpage 3 of the attachments.
(Access to supplementary briefing materials on annual financial results)
The Company will hold an annual financial results briefing session on Wednesday, May 17, 2023, for investors andsecurities analysts. The materials to be distributed at this session will be posted on the Company’s website
immediately after it is held.

Table of Contents - Attachments
1. Overview of Business Results, etc. ..................................................................................................... 2(1) Overview of Business Results for the Period Under Review .......................................................... 2(2) Overview of Financial Position for the Period Under Review ........................................................ 2(3) Overview of Cash Flows for the Period Under Review .................................................................. 3(4) Future Outlook ................................................................................................................................ 3(5) Basic Policy for the Distribution of Profit and the Dividend Payout for the Period Under Review
and the Next Period .......................................................................................................................... 3
2. Basic Approach Concerning Choice of Accounting Standards ...................................................................... 4
3. Consolidated Financial Statements and Primary Notes .................................................................................. 5(1) Consolidated Balance Sheets ...................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 7
Consolidated Statements of Income .......................................................................................................... 7
Consolidated Statements of Comprehensive Income ................................................................................ 8(3) Consolidated Statements of Changes in Equity .......................................................................................... 9(4) Consolidated Statements of Cash Flows .................................................................................................. 11(5) Notes to the Consolidated Financial Statements ...................................................................................... 12(Notes on going concern assumption) ............................................................................................................ 12(Segment information, etc.) ............................................................................................................................. 12(Per share information) .................................................................................................................................. 12
4. Other ............................................................................................................................................................. 13
Status of Production, Receipt of Orders, and Sales(1) Production .............................................................................................................................................. 13(2) Outsourcing ............................................................................................................................................ 13(3) Purchases ................................................................................................................................................ 13(4) Receipt of Orders .................................................................................................................................... 14(5) Sales ....................................................................................................................................................... 14

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Period Under Review
During the fiscal year ended March 31, 2023, the Japanese economy stayed on a path of moderate recovery
due to the effects of various measures such as the government’s support for domestic tourism and the relaxationof entry restrictions on foreign tourists, amid the ongoing normalization of economic and social activities as
restrictions on movement were relaxed in the context of living with COVID-19. Meanwhile, its outlook remains
uncertain due to surging raw materials and energy prices, constrained supply of components resulting from supply
chain disruptions, the depreciation of the Japanese yen at a record pace, and fluctuations of financial and capital
markets, among other factors.
In the information service industry, in which the Group operates, the industry’s total net sales for February
2023 grew by 3.2% compared with a year earlier, marking a year-on-year increase for 11 months in a row,according to the Current Survey of Selected Service Industries of the Ministry of Economy, Trade and Industry.
Specifically, sales of “Software Ordered,” the main segment, increased by 6.1% year on year, while sales of“Software Products” and “System Management on Commission” decreased by 8.9% and 0.5%, respectively, year
on year. These results show that sales increased in some types of information service but decreased in others,
although companies’ IT investment demand continues to be strong amid the ongoing transformation of operation
processes and business models utilizing digital transformation (DX) technology.
In this business environment, regarding the Group’s net sales by business category in the period under review,
net sales of SI Services Business, which centers on the development of corporate information systems, were 8,220
million yen (an increase of 14.3% year on year), due to increased orders for contract projects from the
manufacturing industry and the financial industry, its major customer sectors. Net sales of Software Development
Business were 12,393 million yen (an increase of 19.3% year on year), as the Company was able to steadilyacquire maintenance service contracts with existing customers and also made General Software Corporation a
subsidiary in January 2022. Net sales of Software Products Business were 343 million yen (an increase of 8.7%
year on year), due to sales of Simplex, sales and customers management software for the mail order business,among other factors. Net sales of Merchandise Sales were 363 million yen (an increase of 18.9% year on year),due to purchase and sale of personal computers and IT devices as well as software products, among other items.
Net sales of Website Administration and Cloud Services (SaaS) in other category were 234 million yen (anincrease of 12.4% year on year), backed by an increase in the number of new on-line shop openings and a growthin gross merchandise value (GMV). In terms of earnings, the Company recorded stable profit as it successfully
maintained a high operating rate of engineers due to increased volume of orders, while also working to avoid
generating unprofitable projects through project risk management (PRM) activities. Meanwhile, the Company
transitioned from the defined benefit corporate pension plan to the defined contribution pension plan andaccordingly recorded loss on termination of retirement benefit plan of 363 million yen under extraordinary losses.
As a result, for the fiscal year ended March 31, 2023, net sales were 21,556 million yen (an increase of 17.1%
year on year), with operating profit of 2,501 million yen (an increase of 20.3% year on year), ordinary profit of
2,515 million yen (an increase of 19.0% year on year), and profit attributable to owners of parent of 1,601 million
yen (an increase of 7.3% year on year), on a consolidated basis.
(2) Overview of Financial Position for the Period Under Review
Total assets as of March 31, 2023 increased by 1,297 million yen year on year to 14,181 million yen, due toincreases in cash and deposits and accounts receivable - trade, among other factors.
Liabilities as of March 31, 2023 increased by 295 million yen year on year to 5,046 million yen, due toincreases in provision for bonuses and other.
Net assets as of March 31, 2023 increased by 1,001 million yen year on year to 9,135 million yen, due to anincrease in retained earnings, among other factors.

2(3) Overview of Cash Flows for the Period Under Review
Cash and cash equivalents (hereinafter referred to as “cash”) as of March 31, 2023 amounted to 7,336 million
yen, an increase of 1,021 million yen from 6,314 million yen as of March 31, 2022.
Cash flows from operating activities, investing activities, and financing activities and their major factors forthe fiscal year ended March 31, 2023 are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities during the period under review amounted to 1,796 million yen (while
net cash provided by operating activities during the previous period amounted to 1,287 million yen) due primarily
to the effect of the factors contributing to an increase in cash, such as profit before income taxes of 2,152 million
yen and loss on termination of retirement benefit plan of 363 million yen, more than offsetting the effect of thefactors contributing to a decrease in cash, such as a decrease of 454 million yen due to an increase in tradereceivables and income taxes paid of 703 million yen.
(Cash flows from investing activities)
Net cash used in investing activities during the period under review amounted to 273 million yen (while net
cash used in investing activities during the previous period amounted to 254 million yen) due primarily topurchase of property, plant and equipment of 210 million yen, among other factors.
(Cash flows from financing activities)
Net cash used in financing activities during the period under review amounted to 501 million yen (while net
cash used in financing activities during the previous period amounted to 526 million yen) due primarily toproceeds from long-term borrowings and short-term borrowings of 1,780 million yen, repayments of long-termborrowings and short-term borrowings of 1,780 million yen, and dividends paid of 501 million yen.
(4) Future Outlook
The Japanese economy is expected to recover, supported by measures such as the downgrading of COVID19 to a Class V Infectious Disease under the Act on the Prevention of Infectious Diseases and Medical Care forPatients with Infectious Diseases. Meanwhile, its outlook is expected to remain uncertain due to concerns over
the risk that the inflationary pressure arising from surging raw material prices and the slowdown of the global
economy due to monetary tightening by the U.S. and Europe will put downward pressure on the Japanese
economy.
Even under these circumstances, regarding companies’ IT investment, investment demand for maintaining
and enhancing their competitiveness is expected to continue owing to factors such as strong desire to improve
operational efficiency and productivity by utilizing DX technology and the renewal of corporate legacy systems,
among others.
Considering these factors, for the Group’s consolidated financial results forecast for the fiscal year ending
March 31, 2024, net sales of 23,815 million yen (an increase of 10.4% year on year), operating profit of 2,516
million yen due to an increase in advertising expenses to expand the EC business (an increase of 0.5% year onyear), ordinary profit of 2,542 million yen (an increase of 1.0% year on year), and profit attributable to ownersof parent of 1,817 million yen (an increase of 13.4% year on year) are projected.
In addition, for the full-year non-consolidated financial results forecast, the Company projects net sales of
23,786 million yen (an increase of 13.6% year on year), operating profit of 2,518 million yen (an increase of
0.9% year on year), ordinary profit of 2,535 million yen (an increase of 1.4% year on year), and profit of 1,814
million yen (an increase of 13.1% year on year).

(5) Basic Policy for the Distribution of Profit and the Dividend Payout for the Period Under Review and the
Next Period
The Company has stipulated in its Articles of Incorporation that matters such as dividends of surplus shall be
determined by resolution of the Board of Directors and considers return of profit to its shareholders as animportant capital policy. In addition, regarding the distribution of profit, the Company has made it a basic policy3to strive to increase business revenue and improve its return on equity from a long-term perspective, and also toendeavor to enhance its equity, strengthen its financial structure and maintain a stable level of dividends to its
shareholders over the long term, and determines the amount of dividends based on this policy.
For the period under review, the Company plans to pay an annual dividend of 70.00 yen per share as
announced in its “Notice of Revisions to Dividend Forecast for the Fiscal Year Ending March 31, 2023” (available
in Japanese only) on January 31, 2023. Regarding the annual dividend forecast for the next period, the Company
plans to pay an annual dividend of 70.00 yen per share.

2. Basic Approach Concerning Choice of Accounting Standards

The Company will continue to adopt Japanese GAAP for the time being because the Group currently operates
within Japan only and has no overseas operations. However, the Company will consider applying the International
Financial Reporting Standards (IFRS), taking account of future changes in the percentage of foreign shareholders
and how other Japanese companies will respond as to the adoption of IFRS.

4

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Contract assets
Merchandise
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 2023

6,349,386
3,653,461
318,9311,886
5,265
87,126(384)
10,415,672

7,371,297
4,100,919
320,001
2,948
6,397
102,975(427)
11,904,112

909,020(511,289)
397,730
540,661
170,593(132,713)
37,879976,272

903,391(528,826)
374,564
746,460
164,789(142,870)
21,9191,142,943

311,288
112,650
7,128
431,066

245,754
137,156
6,941
389,852

38,227505,364
306,957
211,095
1,061,645
2,468,984
12,884,657

13,489513,243
218,118
744,851
2,277,647
14,181,759

(Thousand yen)
As of March 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2023

821,770
780,562445,251
1,003,145
1,033,820
4,084,550

885,608
741,676458,257
1,130,038
1,169,550
4,385,131

622,162
43,646
665,808
4,750,359

661,036
661,036
5,046,167

550,150
517,550
6,950,163(1,093)8,016,769

550,150
517,550
8,050,238(1,252)
9,116,686

7,622
100,102
107,725
9,803
8,134,298
12,884,657

6,545
6,545
12,3609,135,592
14,181,759

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year
ended March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Dividend income of insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on termination of retirement benefit plan
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

For the fiscal year
ended March 31, 2023

18,405,466
14,287,426
4,118,039
2,039,764
2,078,275

21,556,087
16,740,363
4,815,724
2,314,220
2,501,504

13
421
37,9307,478
45,84316542
14,5692,955
4,397
22,481

7,910
1,708
959
10,5782,113,540

7,910
261
8,171
2,515,813

-

76
2,260
2,336

0
0
2,113,540
631,445(11,973)
619,471
1,494,068
1,941
1,492,127

1,439
363,811
365,251
2,152,899
710,456(161,673)
548,783
1,604,116
2,556
1,601,559

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year
ended March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

For the fiscal year
ended March 31, 2023

1,494,068

1,604,116(793)(21,821)(22,615)
1,471,453(1,076)(100,102)(101,179)
1,502,937

1,469,511

1,500,380

1,941

2,556

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022

(Thousand yen)
Shareholders’ equity

Share capital
Balance at beginning of period

Capital surplus

550,150

Retained earnings

517,550

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equityTreasury shares

5,940,580(1,093)18,939550,150

517,550

5,959,520

7,007,186
18,939(1,093)

7,026,126

Changes during period
Dividends of surplus(501,484)(501,484)

Profit attributable to ownersof parent

1,492,127

1,492,127

Purchase of treasury shares-

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period--

990,642-990,642

550,150

517,550

6,950,163(1,093)8,016,769

Accumulated other comprehensive income
Valuation difference on
Total accumulated
Remeasurements ofavailable-for-saleother comprehensive
defined benefit planssecurities
incomeBalance at beginning of period

8,415

121,924

130,340

Non-controllinginterests
7,862

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets
7,145,389
18,9398,415

121,924

130,340

7,862

7,164,329

Changes during period
Dividends of surplus(501,484)

Profit attributable to ownersof parent

1,492,127

Purchase of treasury shares-

Net changes in items otherthan shareholders’ equity(793)(21,821)(22,615)

1,941(20,673)

Total changes during period(793)(21,821)(22,615)

1,941

969,968

Balance at end of period

7,622

100,102

107,725

9,803

8,134,298

9

For the fiscal year ended March 31, 2023

(Thousand yen)
Shareholders’ equity

Share capital
Balance at beginning of period

Capital surplus

550,150

Retained earnings

517,550

6,950,163

Treasury shares(1,093)

Total shareholders’equity8,016,769

Cumulative effects of changes
in accounting policies
Restated balance

550,150

517,550

6,950,163(1,093)8,016,769

Changes during period
Dividends of surplus(501,484)(501,484)

Profit attributable to ownersof parent

1,601,559

1,601,559

Purchase of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

(158)

-

-

1,100,075(158)

1,099,916

550,150

517,550

8,050,238(1,252)

9,116,686

Accumulated other comprehensive income
Valuation difference on
Total accumulated
Remeasurements ofavailable-for-saleother comprehensive
defined benefit planssecurities
incomeBalance at beginning of period

(158)

7,622

100,102

107,725

Non-controllinginterests
9,803

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets
8,134,298-

7,622

100,102

107,725

9,803

8,134,298

Changes during period
Dividends of surplus(501,484)

Profit attributable to ownersof parent

1,601,559

Purchase of treasury shares(158)

Net changes in items otherthan shareholders' equity(1,076)(100,102)(101,179)

2,556(98,622)

Total changes during period(1,076)(100,102)(101,179)

2,556

1,001,294

Balance at end of period

6,545

-

6,545

12,3609,135,592

10

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss on termination of retirement benefit plan
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) for retirement benefits asset liability
Interest and dividend income
Interest expenses
Loss (gain) on cancellation of insurance policies
Gain on sale of non-current assets
Loss on retirement of non-current assets
Gain on sales of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Refundment of investment in capital
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

11

For the fiscal year
ended March 31, 2023

2,113,540
103,321
16,383
69
156,528(27,140)
(434)
7,910
(1,117)
0(589,787)
2,975
205,263
29,648(226,624)
1,790,535
434(7,852)(495,930)
1,287,186

2,152,899
96,86765,534363,81143
126,893(46,334)
(559)
7,910
(76)
1,439
(2,260)(454,722)(2,193)65,005(18,628)
151,683
2,507,312
559(7,944)(703,065)
1,796,861(5,839)(51,430)-(210,680)
76(79,748)
17,047(197,380)-(254,650)

10(273,295)

880,000(880,000)
900,000(925,267)(501,484)(526,751)
505,784
5,808,602
6,314,386

880,000(880,000)
900,000(900,012)(158)(501,484)(501,654)
1,021,911
6,314,386
7,336,297

(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)
There are no relevant matters.
(Segment information, etc.)
The Group omits the description of business segments because it has only one segment, the software related
business.
(Per share information)
For the fiscal year ended

For the fiscal year ended

March 31, 2022

March 31, 2023

Net assets per share972.05 yen

1,091.55 yen

Basic earnings per share

178.52 yen

191.61 yen(Notes) 1. Diluted earnings per share is not presented because there are no potential shares.
2. The basis for the calculation of net assets per share is as follows:
Item

For the fiscal year ended

For the fiscal year ended

March 31, 2022

March 31, 2023

Total net assets on the consolidated balance sheets(thousand yen)

8,134,298

9,135,592

9,803

12,3609,803

12,3608,124,494

9,123,231

8,358,072

8,357,992

For the fiscal year ended

For the fiscal year ended

March 31, 2022

March 31, 2023

Deductions from total net assets (thousand yen)
Non-controlling interests included in the deductions(thousand yen):
Total net assets relating to common shares at end of period(thousand yen)
Number of common shares at end of period used for the
calculation of net assets per share (shares)
3. The basis for the calculation of basic earnings per share is as follows:
Item
Profit attributable to owners of parent (thousand yen)Amount not attributable to ordinary shareholders(thousand yen)
Profit attributable to owners of parent relating to commonshares (thousand yen)
Average number of common shares during the period (shares)

12

1,492,127

1,601,559--

1,492,127

1,601,559

8,358,072

8,358,016

4. Other
Status of Production, Receipt of Orders, and Sales(1) Production
The amount of production by business category for the fiscal year ended March 31, 2023 is as follows:
For the fiscal year ended
March 31, 2023
Business category

Change from theprevious
corresponding
period (%)

Amount of production(million yen)
SI Services Business

8,220

116.0

Software Development Business

12,393

119.3

Software Products Business

343

108.7

Other

234

112.4

21,192

117.8

Total
(Note) Amounts are presented based on sales prices.

(2) Outsourcing
The amount of outsourcing by business category for the fiscal year ended March 31, 2023 is as follows:
For the fiscal year ended
March 31, 2023
Business category

Change from theprevious
corresponding
period (%)

Amount of outsourcing(million yen)
SI Services Business

3,271

120.8

Software Development Business

5,121

117.5

Software Products Business

56

98.9

Other

0

117.6

8,451

118.6

Total

(3) Purchases
The amount of purchases by business category for the fiscal year ended March 31, 2023 is as follows:
For the fiscal year ended
March 31, 2023
Business category

Change from theprevious
corresponding period(%)

Amount of purchases(million yen)
Merchandise Sales

301(Note) Amounts are presented based on purchase prices.

13

127.7

(4) Receipt of Orders
The amount of orders received by business category for the fiscal year ended March 31, 2023 is as follows:
For the fiscal year ended
March 31, 2023
Business category
Orders received(million yen)

Change fromthe previous
corresponding
period (%)

Backlog oforders(million yen)

Change fromthe previous
corresponding
period (%)

SI Services Business

8,207

104.7

1,980

99.3

Software Development Business

12,876

121.1

2,421

124.8

Software Products Business

347

111.0

105

103.2

Merchandise Sales

371

117.3

49

119.9

21,802

114.1

4,557

111.8

Total

(5) Sales
The amount of sales by business category for the fiscal year ended March 31, 2023 is as follows:
For the fiscal year ended
March 31, 2023
Business category

Change from theprevious
corresponding
period (%)

Amount of sales (million yen)
SI Services Business

8,220

114.3

Software Development Business

12,393

119.3

Software Products Business

343

108.7

Merchandise Sales

363

118.9

Other

234

112.4

21,556

117.1

Total

(Note) The amount of sales by major customer and the share of the sales in total sales are as follows:
Customer

For the fiscal year ended
March 31, 2022
Amount of sales(million yen)

TOYOTA SYSTEMS CORPORATION

2,958

14

For the fiscal year ended
March 31, 2023

Share
(%)

Amount of sales(million yen)
16.0

3,187

Share
(%)
14.7