Supplementary Material for the Q1 FY03/2024
43rd Fiscal Year

Systemsoft Corporation
TYO: 7527

January 31, 2024

CONTENTS•

FY09/2024 First Quarter Financial Results Summary•

FY09/2024 First Quarter Financial Results
Reporting by Segment•

FY09/2024 Earnings Forecast

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FY09/2024 First Quarter Financial Results

Financial Results Summary

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Summary of consolidated financial results for Q1 FY09/2024

Progress in line with plan
Promote achievement of full-year plan
Q1 2023(Millions of yen)Amount

Q1 2024%

AmountYoY%

Net sales833

100%

623

100.0%

74.7%

Gross profit

181

21.8%

147

23.7%

81.3%

SG&A expenses

216

26.0%

196

31.6%

90.9%

Operating income

-34

--49

-

--83-

-87

--Net income

attributable toshareholders of theparent company

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Net sales quarterly changes (Cumulative period)
Existing projects in technology business remained strong
Sales decreased due to changes in contracts for some projects in systems development(Millions of yen)

4,920

4,704

3,556

3,390

3,314

2,448

2,474

2,217
1,629

1,148

Q1

1,080

Q2

Q3

FY09/2021

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Q4

Q1833

Q2

Q3

FY09/2022

Q4Q1623

Q2

Q3

FY09/2023

Q4Q1
FY09/2024

4

Operating Income Quarterly Changes (Cumulative Period)
Strive to improve profits by securing talent andreducing costs for this fiscal year’s second half
(Millions of yen)328354382377
Projects
concentrated in Q4265

155
39

10
Large-scale systemmodification project
Operating income increased
in line with orders received

Q1

Q2

Q3

FY09/2021

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Q4-44-26

Q1

Q2-34

Q3

FY09/2022

Q4

Q1-49-57

Q2Q3

FY09/2023

Q4

Q1
FY09/2024

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Balance Sheet(Millions of yen)

Q4
FY09/2023

Increase/Decrease

Q1
FY09/2024

Current assets

3,610

3,538-72

Fixed assets

3,131

3,026

-105

Current liabilities

599

580

-19

Fixed liabilities

360

294-66

5,782

5,689

-93

Capital stock

1,706

1,706

0

Capital surplus andothers

4,150

4,063

-87

6,742

6,565

-177

Net assets

Total assets

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FY09/2024 First Quarter Financial Results

Financial Results by Segment

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About the Segment
Two pillars: technology business and open innovation businessTechnologyOpen innovation

Engaging in SS Cloud Series to provide real estate
operators, major corporations and public
sector with robust system development solutions

Focusing on creating ecosystems throughcorporate collaboration, revitalizing local
regions and knowledge sharing% net sales% net sales

SaaS/RPASS Payments

fabbit (DX linkage)

System developmentand solutions

Consulting

70.4

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29.68

About SS Cloud Series
Promoting “ReTech" (Real Estate x Technology)

Application

Contract
Provision of important explanations andcontract documents is completed on the cloudComplete entire processfrom application to screening on the web

Reservation for showing

Walk-Through Inspection

Automatic reservation of property showings 24/7

Property confirmation
Automated voice and chat response
on property offers

Contract
ShowinMoving ing
Tenants’
EventsVacancy list
Real-time registration andinquiry of room availability

Automated matching

AI automatically suggests properties
that match applicants’ criteria

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Complete property walk-through inspection
when moving in using smartphones

Property
searchVacatingRush service
Trouble-shooting of rental properties

Repair check
Repair status reports issuedby contractors using smartphones

PatrolImproved productivity of property, landlord
and vendor patrols9

SS Cloud Series Usage Status
Achieved one of largest* adoption records in Japan through proactive sales efforts

41,372

Q1

Companies using service(cumulative total)

Locations used(cumulative total)+8,610 companies+9,996 locations

44,539Q2

46,294

48,11549,982

58,106Q3

FY09/2023

Q4

Q1

FY09/2024

Q161,785

63,733

Q2

FY09/2023

Q365,951

Q468,102

Q1

FY09/2024The ”Cumulative total number of locations used" is simply the sum of the number of locations used by agent and management company for each cloud.
(For management companies, head offices, branches, sales offices, and stores are counted among those that applied.)
The "Cumulative total number of companies using the system" is simply the total number of companies using the service of the agent and management company for each cloud.
*Based on our own research.

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SS Payment Series Introduction Status
In cooperation with SS Cloud Series
developing services to further improve operational efficiency
Money transfer

Account transfer

Credit card payment

Total number of cases(Sept. 2021 - Sept. 2024 Q1)

Total number of cases(Sept. 2021 - Sept. 2024 Q1)

Total settlement amount(Sept. 2021 - Sept. 2024 Q1)

439,764

cases

116,248

cases

about

17.4 bn JPY
16bn yen

102,596426,770
51,666318,174

FY09/2022+13,652

9.9bn yenapprox.
+1.4 bn yen+12,994

FY09/2023

Q1 FY09/2024

No installation fee, no monthly fee,no need to open accountSignificant reduction in remittancetransfer fee

FY09/2022

Q1 FY09/2024

No need to confirm errors in signing orstamping
Dramatically reduced account transfer fees

*This product is a service to introduce customers to the management company.

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FY09/2023

FY09/2022

FY09/2023

Q1 FY09/2024

Real estate leasing related transaction
including security deposit, key money
Settlement services for utilizing credit card
to pay lump-sum deposit.

11About system development and business
Provide full range of services from development to maintenance and operation
offered to meet needs of users in wide range of industries
RequirementDefinition

One-stop service x consulting
By leveraging strengths of consulting derived
from years of experience, know-how, andknowledge in general system development

Maintenance/Operation

Designprocess, it is possible to achieve developmentwith higher customer satisfaction.

Test

Business
consultant

Develop-mentCase studies

Banks

Property insurance

Retail & Sales

Manufacturer

Educational institutions

RMSERPEC Site Building System

Business Support Systems

Academic Support Systems

Digitize large number ofregulations and manuals
used within the bank.
Contribute to improve
operational efficiency andcost reduction.

Core business systemcentered on host system.
Building advanced
systems that requirestability and accuracy.

Package allows for projectand product additions,inventory management
and even effectivenessmeasurement throughaccess analysis.

A system that can beused to manage sales
activities and results andto develop more effective
sales and management
strategies.

A portal system thatallows students to accessschool's homepage, as
well as notifications ofcredit acquisition status
and information on school
closures and make-up
classes.

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FY09/2024

Earnings Forecast

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Forecasts for the fiscal year ending September 30, 2024
Reduction in development scale due to some changes in contract forms insystem development business
SaaS business timing and scope of monetization considered carefully

FY09/2024

FY09/2023(Millions of yen)

Forecast

Actual

3,390

3,000

Operating income

155

130

Ordinary income

135

110

9365

Net sales

Net income

Attributable to Shareholders of
the parent company

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FY09/2024 Key measures
For fiscal year ending September 2024, we will proceed with internal consolidationand strengthening as a period of reinforcement aimed at medium to long-term growth.

System development
Reinforcement ofbusiness structure•••

Expanding projects in development field, which has always been one of ourstrengths
Increased contractual certainty through more flexible contractual arrangements
Improved profit margins through operational efficiency and cost control

SaaS for Real Estate Agents

Investment in
human resources•

Continue to promote aggressive sales activities to expand market share•

Securing personnel to meet robust demand for system development•

Enhancement of the training system, including retraining of recruitedtalent, to accelerate development speed Renewal of recruitment website, expansion of recruitment contacts already implemented

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Investment in Human Resources
Strengthen securing and development of
Human Resources to support medium- to long-term growth
Expansion of recruitment quota

Enhanced skill development

Widely recruiting mainly engineers

Post-recruitment employee training,
Enhancement of training programsHigh class

Conventional
recruiting base
Leader class

Member class

By widening range of recruiting slots, we advance talent acquisition.
By enhancing and expanding employee benefits andeducational systems, we create an environment conducive to growth.
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This document was created by the Company for the purpose of understanding the current state of Systemsoft Corporation (hereinafter referred to as the "Company"). In
addition, the plans and forecasts described in this document are determined and predicted by the Company based on the information at the time of creation. Plans andprospects may change significantly due to changes in the business environment in the future. In that event, we are not obligated to update or amend the contents of thisannouncement. Based on the above, investors are requested to invest at their own risk.

Copyright©Systemsoft Corporation17