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, 2024
[Japanese GAAP]May 8, 2024
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 25, 2024
Scheduled date of commencing dividend payments: June 4, 2024
Scheduled date of filing annual securities report: June 25, 2024
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, 2024 (April 1, 2023 to March 31, 2024)(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, 2024
23,320
8.1
2,703
8.0
2,768
10.0
1,969
22.9
March 31, 2023
21,556
17.1
2,501
20.3
2,515
19.0
1,601
7.3
(Note) Comprehensive income: Fiscal year ended March 31, 2024: ¥1,974 million [31.3%]
Fiscal year ended March 31, 2023: ¥1,502 million [2.1%]
Basic earnings
per share

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total
assetsRatio ofoperating profit
to net sales%%%
Fiscal year ended
Yen
Yen
March 31, 2024
117.81
20.0
18.2
11.5
March 31, 2023
95.80
18.5
18.5
11.6
(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2024: ¥- million
Fiscal year ended March 31, 2023: ¥- million(Note) A two-for-one common share split was issued on April 1, 2024. Basic earnings per share is calculated on theassumption that the share split was conducted at the beginning of the previous consolidated fiscal year.

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

Equity ratio

Net assets per share%

Yen

16,145
10,52465.0
628.67
As of March 31, 2024
14,181
9,135
64.3
545.77
As of March 31, 2023
(Reference) Equity: As of March 31, 2024: ¥10,508 million
As of March 31, 2023: ¥9,123 million(Note) A two-for-one common share split was issued on April 1, 2024. Net assets per share is calculated on theassumption that the share split was conducted at the beginning of the previous consolidated fiscal year.

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Million yen

Cash flows fromfinancing activities

Million yen

2,458
1,796

Million yen

(926)
(273)

Annual dividends

Fiscalyear-end

Million yen

(546)
(501)

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

Cash and cash
equivalents at end of
period

Total

8,321
7,336

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

Fiscal year ended
Yen
Yen
Yen
Yen
Yen Million yen%%
March 31, 2023
0.00
70.00 70.00
585
36.5
6.7
March 31, 2024
0.00
80.00 80.00
668
33.9
6.8
Fiscal year ending
March 31, 2025
0.00
40.00 40.00
30.4(Forecast)(Note) A two-for-one common share split was issued on April 1, 2024. For the fiscal year ended March 31, 2024, theactual dividend amount before the share split is shown.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March
31, 2025)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating profit

Ordinary profit

Million yen

Million yen%

Profit attributable toowners of parent% Million yen

Basic earnings
per share%

Yen

Six months
ending12,3869.5
1,045 (11.8)
1,076 (10.9)
778(13.4)
46.54
September 30,
2024
Full year
26,718 14.5
3,084 14.0
3,114 12.4
2,198
11.6
131.53(Note) A two-for-one common share split was issued on April 1, 2024. “Basic earnings per share” in the consolidated
financial results forecast is calculated based on the number of issued shares (excluding treasury shares) after
the share split.
* 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, 2024: 16,720,000 shares
As of March 31, 2023: 16,720,000 shares

(ii) Number of treasury shares at the end of the period:
As of March 31, 2024: 4,224 shares
As of March 31, 2023: 4,016 shares(iii) Average number of shares during the period:
Fiscal year ended March 31, 2024: 16,715,873 sharesFiscal year ended March 31, 2023: 16,716,032 shares(Note) A two-for-one common share split was issued on April 1, 2024. Total number of issued shares at the end of theperiod (including treasury shares), number of treasury shares at the end of the period, and average number ofshares during the period are calculated on the assumption that the share split was conducted at the beginning of
the previous consolidated fiscal year.
(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31,2024)(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, 2024
23,280
11.1
2,695
8.0
2,751
10.0
1,910
19.1
March 31, 2023
20,936
15.3
2,493
20.4
2,499
19.1
1,603
5.1
Basic earnings per
share

Diluted earnings per
share

Yen
Yen
Fiscal year ended
March 31, 2024
114.27
March 31, 2023
95.94
(Note) A two-for-one common share split was issued on April 1, 2024. Basic earnings per share is calculated on theassumption that the share split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

Yen

As of March 31, 2024
16,088
10,47665.1
626.75
As of March 31, 2023
14,131
9,150
64.7
547.39(Reference) Equity: As of March 31, 2024: ¥10,476 million
As of March 31, 2023: ¥9,150 million(Note) A two-for-one common share split was issued on April 1, 2024. Net assets per share is calculated on theassumption that the share split was conducted at the beginning of the previous fiscal year.
2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 toMarch 31, 2025)(% indicates changes from the previous corresponding period.)
Net sales

Six months
endingSeptember 30,
2024
Full year

Ordinary profit

Million yen%

12,364
26,675

Million yen

Basic earnings
per share

Profit%Million yen

%

Yen

9.5

1,074 (10.3)

776

(7.7)

46.46

14.5

3,108

2,195

14.9

131.3212.9

(Note) A two-for-one common share split was issued on April 1, 2024. “Basic earnings per share” in the non-consolidated
financial results forecast is calculated based on the number of issued shares (excluding treasury shares) after theshare split.
* 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 22, 2024, 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(Material subsequent events) ......................................................................................................................... 13
4. Other ............................................................................................................................................................. 14
Status of Production, Receipt of Orders, and Sales(1) Production .............................................................................................................................................. 14(2) Outsourcing ............................................................................................................................................ 14(3) Purchases ................................................................................................................................................ 14(4) Receipt of Orders .................................................................................................................................... 15(5) Sales ....................................................................................................................................................... 15

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Period Under Review
During the fiscal year ended March 31, 2024, the Japanese economy continued on a moderate recovery trend due
mainly to a steady recovery in the demand for inbound tourist following the normalization of economic activities
and an increase in exports in the automotive industry, for which issues in supply shortages of parts have been resolved.
Meanwhile, the outlook continues to remain uncertain due to the impact of disruptions to the global economy brought
about by unstable international affairs, surging raw materials and energy prices, and soaring commodity prices in
response to the depreciation of the Japanese yen.
In the information service industry, in which the Group operates, the industry’s total net sales for February 2024
grew by 9.3% compared with a year earlier, according to the Ministry of Economy, Trade and Industry’s Current
Survey of Selected Service Industries. Sales of “Software Ordered,” the main segment, increased by 10.6% year on
year, sales of “Software Products” increased 10.3% year on year, and sales of “System Management on Commission”
increased by 3.7% year on year. These results show that 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 9,179
million yen (an increase of 11.6% year on year), due to steady IT investment demand from automotive related sectors
in the manufacturing industry and the financial industry, which are the Company’s major customer
sectors in addition to increased orders for contract projects. Net sales of Software Development Business were13,133 million yen (an increase of 5.9% year on year), as the Company was able to steadily acquire maintenanceservice contracts with existing customers. Net sales of Software Products Business were 355 million yen (an increaseof 3.2% year on year), due mainly to sales of Simplex, sales and customers management software for the mail orderbusiness, and due to reactionary demand for the invoice system. Net sales of Merchandise Sales were 380 million
yen (an increase of 4.7% year on year), due to purchase and sale of personal computers and IT devices as well assoftware products, among other items. Net sales of Website Administration and Cloud Services (SaaS) in othercategory were 272 million yen (an increase of 15.9% year on year), backed by growth in gross merchandise value(GMV) due to our effective advertising. 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, increased net sales in SI services,which is a high-margin business, while also working to avoid generating unprofitable projects through project risk
management (PRM) activities.
As a result, for the fiscal year ended March 31, 2024, net sales were 23,320 million yen (an increase of 8.1% year
on year), with operating profit of 2,703 million yen (an increase of 8.0% year on year), ordinary profit of 2,768
million yen (an increase of 10.0% year on year), and profit attributable to owners of parent of 1,969 million yen (anincrease of 22.9% year on year), on a consolidated basis.
(2) Overview of Financial Position for the Period Under Review
Total assets as of March 31, 2024 increased by 1,963 million yen year on year to 16,145 million yen, due toincreases in cash and deposits, buildings and structures, among other factors.
Liabilities as of March 31, 2024 increased by 575 million yen year on year to 5,621 million yen, due to increases
in provision for bonuses and other.
Net assets as of March 31, 2024 increased by 1,388 million yen year on year to 10,524 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, 2024 amounted to 8,321 million
yen, an increase of 985 million yen from 7,336 million yen as of March 31, 2023.
Cash flows from operating activities, investing activities, and financing activities and their major factors for the
fiscal year ended March 31, 2024 are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities during the period under review amounted to 2,458 million yen (while
net cash provided by operating activities during the previous period amounted to 1,796 million yen) due primarily
to the effect of the factors contributing to an increase in cash, such as profit before income taxes of 2,676 million
yen, more than offsetting the effect of the factors contributing to a decrease in cash, such as income taxes paid of
751 million yen.
(Cash flows from investing activities)
Net cash used in investing activities during the period under review amounted to 926 million yen (while net cashused in investing activities during the previous period amounted to 273 million yen) due primarily to purchase ofproperty, plant and equipment of 868 million yen, among other factors.
(Cash flows from financing activities)
Net cash used in financing activities during the period under review amounted to 546 million yen (while net cashused in financing activities during the previous period amounted to 501 million yen) due primarily to proceeds fromlong-term borrowings and short-term borrowings of 1,780 million yen, repayments of long-term borrowings andshort-term borrowings of 1,741 million yen, and dividends paid of 585 million yen.
(4) Future Outlook
The Japanese economy is expected to continue to recover against, among other factors, a backdropof stronger demand for capital investment through corporate performance improvement and thecontinued demand for inbound tourism. Meanwhile, its outlook is expected to remain uncertain due to concerns
over the risk that the inflationary pressure arising from surging raw material prices, the slowdown of overseas
economies, and the supply constraints resulting from labor shortages—a problem symbolic of 2024— will put
downward pressure on the Japanese economy.
Even under these circumstances, regarding demand for companies’ IT investment, investment demand formaintaining and enhancing their competitiveness is expected to continue steadily owing to factors such as improved
operational efficiency and productivity utilizing DX technology, measures to tackle labor shortages, and the renewalof corporate legacy systems, among others.
Considering these factors, for the Group’s consolidated financial results forecast for the fiscal year ending March
31, 2025, net sales of 26,718 million yen (an increase of 14.5% year on year) are expected. Operating profit of 3,084
million yen (an increase of 14.0% year on year), ordinary profit of 3,114 million yen (an increase of 12.4% year onyear), and profit attributable to owners of parent of 2,198 million yen (an increase of 11.6% year on year) are also
expected.
In addition, for the full-year non-consolidated financial results forecast, the Company projects net sales of 26,675
million yen (an increase of 14.5% year on year), operating profit of 3,088 million yen (an increase of 14.5% year onyear), ordinary profit of 3,108 million yen (an increase of 12.9% year on year), and profit of 2,195 million yen (anincrease of 14.9% year on year).

(5) Basic Policy for the Distribution of Profit and the Dividend Payout for the Period Under Review and the Next
PeriodThe 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 an important
capital policy. In addition, regarding the distribution of profit, the Company has made it a basic policy to strive toincrease business revenue and improve its return on equity from a long-term perspective, and also to endeavor toenhance its equity, strengthen its financial structure and maintain a stable level of dividends to its shareholders overthe long term, and determines the amount of dividends based on this policy.
3For the period under review, the Company plans to pay an annual dividend of 80.00 yen per share as announced
in its “Notice on Share Split, Partial Amendment to Articles of Incorporation, and Revisions to Dividend Forecast”(available in Japanese only) on January 31, 2024. Regarding the annual dividend forecast for the next period, theCompany plans to split each of its common shares into two shares, effective April 1, 2024, whereupon it will pay anannual dividend of 40.00 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, 2023
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
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 2024

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

8,326,378
4,227,768
357,782
1,771
6,497
68,992
12,989,191

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

1,363,531(551,624)
811,906
1,133,800
221,122(141,782)
79,3402,025,047

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

180,219
159,966
7,956
348,141

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

15,849526,922240,586
783,358
3,156,547
16,145,739

(Thousand yen)
As of March 31, 2023
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
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
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2024

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

945,181780,510428,087
1,266,018
1,540,600
4,960,397

661,036
661,036
5,046,167

661,086
661,086
5,621,483

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

550,150
517,550
9,434,561(1,571)
10,500,689

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

8,183
8,183
15,382
10,524,256
16,145,739

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year
ended March 31, 2023
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
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
Impairment losses
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, 2024

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

23,320,409
17,962,956
5,357,453
2,653,713
2,703,739

16
542
14,5692,955
4,397
22,48117
164
66,663
1,575
5,351
73,771

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

8,506
18
8,525
2,768,986

76
2,260
2,336

-

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

522
91,814
92,337
2,676,648
718,645(14,401)
704,243
1,972,404
3,022
1,969,382

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year
ended March 31, 2023
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, 2024

1,604,116

1,972,404(1,076)(100,102)(101,179)
1,502,937

1,637
1,637
1,974,042

1,500,380

1,971,020

2,556

3,022

(3) Consolidated Statements of Changes in Equity
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

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

(158)

(158)

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

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
Remeasurements of Total accumulated otheravailable-for-saledefined benefit plans comprehensive income
securities
Balance at beginning of period

7,622

100,102

107,725

Non-controllinginterests
9,803

Total net assets
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

9

For the fiscal year ended March 31, 2024

(Thousand yen)
Shareholders’ equity

Share capital
Balance at beginning of period

Capital surplus

550,150

Retained earnings

517,550

8,050,238

Treasury shares(1,252)

Total shareholders’equity9,116,686

Changes during period
Dividends of surplus(585,059)(585,059)

Profit attributable to ownersof parent

1,969,382

1,969,382

Purchase of treasury shares

(319)

(319)

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

1,384,323(319)

1,384,003

550,150

517,550

9,434,561(1,571)

10,500,689

Accumulated other comprehensive income
Valuation difference on
Remeasurements of Total accumulated otheravailable-for-saledefined benefit plans comprehensive income
securities
Balance at beginning of period

6,545

-

6,545

Non-controllinginterests
12,360Total net assets
9,135,592

Changes during period
Dividends of surplus(585,059)

Profit attributable to ownersof parent

1,969,382

Purchase of treasury shares(319)

Net changes in items otherthan shareholders' equity

1,637

-

1,637

3,022

4,660

Total changes during period

1,637

-

1,637

3,022

1,388,663

Balance at end of period

8,183

-

8,183

15,382

10,524,256

10

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2023
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
Gain on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
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
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
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, 2024

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

2,676,648
111,801
65,534(427)
135,979
(181)
8,506
522
91,814(150,761)
1,076
72,232(8,647)
213,733
3,217,833
181(8,622)(751,110)
2,458,282(210,680)
76(79,748)
17,047
10(273,295)

30,000(868,755)(87,950)(926,705)

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

880,000(880,000)
900,000(861,116)(319)(585,059)(546,495)
985,081
7,336,297
8,321,378

(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, 2023

March 31, 2024

Net assets per share

545.77 yen

628.67 yen

Basic earnings per share

95.80 yen

117.81 yen(Notes) 1. Diluted earnings per share is not presented because there are no potential shares.
2. On April 1, 2024, the Company performed a share split comprising splitting each of the Company’s common shares into
two shares. The figures for net assets per share and basic earnings per share have been calculated assuming that theshare split was performed at the beginning of the fiscal year ended March 31, 2023.
3. 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, 2023

March 31, 2024

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

9,135,592

10,524,256

Deductions from total net assets (thousand yen)

12,36015,382(12,360)(15,382)

9,123,231

10,508,873

16,715,984

16,715,776

For the fiscal year ended

For the fiscal year ended

March 31, 2023

March 31, 2024

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)
4. 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

1,601,559

1,969,382--

1,601,559

1,969,382

16,716,032

16,715,873

(Material subsequent events)(Share split and partial amendment to the Articles of Incorporation)
At a Board of Directors meeting held on January 31, 2024, the Company resolved to perform a share split andpartially amend its Articles of Incorporation, with said share split executed on April 1, 2024.
1. Purpose of the share split
The share split aims at increasing the liquidity of the Company’s shares through a reduced minimum investment
amount to facilitate investment for investors and further expand the Company’s investor base.
2. Overview of the share split(1) Method
On the record date March 31, 2024, each of the Company’s common shares held by shareholders listed orrecorded in the closing register of shareholders on that day were split into two shares.
(2) Increases in shares upon the share split- Total number of issued shares before the share split- Increase in shares due to the share split- Total number of issued shares after the share split- Total number of authorized shares after the share split(3) Schedule of share split(i) Public notice of record date(ii) Record date(iii) Effective date

8,360,000 shares
8,360,000 shares
16,720,000 shares
54,400,000 shares

March 14, 2024
March 31, 2024
April 1, 2024

(4) Impact on per share information
The impact on per share information is reflected in “Per share information.”
3. Partial amendment to the Articles of Incorporation for the share split(1) Reason for the amendment
In line with the above share split, pursuant to Article 184, Paragraph 2 of the Companies Act, the Company
amended the total number of authorized shares in Article 6 of its Articles of Incorporation effective April 1,
2024.
(2) Detail of the amendment
The amendment is as follows.
(Underlines indicate amended sections.)
Current Articles of Incorporation(Total number of authorized shares)
Article 6

The total number of shares authorized to be

Proposed amendment(Total number of authorized shares)
Article 6

The total number of shares authorized to be issued

issued by the Company shall be twenty-sevenby the Company shall be fifty-four million and four

million and two hundred thousand (27,200,000)

hundred thousand (54,400,000) shares.

shares.

(3) Schedule of the amendment to the Articles of Incorporation
Effective date April 1, 2024

13

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, 2024 is as follows:
For the fiscal year ended
March 31, 2024

Business category

Amount of production(million yen)

Change from the previous
corresponding period (%)

SI Services Business

9,179

111.6

Software Development Business

13,133105.9

Software Products Business

355

103.2

Other

272

115.9

22,940

108.2

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, 2024 is as follows:
For the fiscal year ended
March 31, 2024

Business category

Amount of outsourcing(million yen)

Change from the previous
corresponding period (%)

SI Services Business

3,742

114.3

Software Development Business

5,344

104.3

Software Products Business

79

139.5

Other

0

64.7

9,166

108.4

Total

(3) Purchases
The amount of purchases by business category for the fiscal year ended March 31, 2024 is as follows:
For the fiscal year ended
March 31, 2024

Business category

Amount of purchases(million yen)
Merchandise Sales

Change from the previous
corresponding period (%)
308(Note) Amounts are presented based on purchase prices.

14

102.2

(4) Receipt of Orders
The amount of orders received by business category for the fiscal year ended March 31, 2024 is as follows:
For the fiscal year ended
March 31, 2024
Business category
Orders received(million yen)

Change from theprevious
corresponding
period (%)

Backlog oforders(million yen)

Change from theprevious
corresponding
period (%)

SI Services Business

9,508

115.8

2,309

116.5

Software Development Business

13,161

102.2

2,450

101.1

Software Products Business

375

108.2

126

119.6

Merchandise Sales

372

100.2

41

83.9

23,418

107.4

4,927

108.1

Total

(5) Sales
The amount of sales by business category for the fiscal year ended March 31, 2024 is as follows:
For the fiscal year ended
March 31, 2024

Business category

Amount of sales(million yen)

Change from the previous
corresponding period (%)

SI Services Business

9,179

111.6

Software Development Business

13,133105.9

Software Products Business

355

103.2

Merchandise Sales

380

104.7

Other

272

115.9

23,320

108.1

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, 2023
Amount of sales(million yen)

TOYOTA SYSTEMS CORPORATION

3,187

15

For the fiscal year ended
March 31, 2024

Share
(%)

Amount of sales(million yen)
14.7

3,742

Share
(%)
16.0