Supplementary Material for the Q2 FY09/2023
42nd Fiscal Year
Systemsoft Corporation
TYO: 7527

May 12, 2023

CONTENTS• FY09/2023 Second Quarter Financial Summary• FY09/2023 Second Quarter Financial Results
Reporting by Segment• FY09/2023 Earnings Forecast• Appendix

Copyright©Systemsoft Corporation

1

FY09/2023 Second Quarter

Financial Summary

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Summary of Consolidated Financial Results for 2Q FY09/2023
Projects scheduled to be booked in 2Q will be pushed back to the second half of the year.

2Q FY09/2022

2Q FY09/2023

YoYAmount%

Amount%Net sales

2,217

100%

1,629

100%

73.5%

Gross profit

446

20.1%

356

21.9%

79.9%

SG&A expenses

473

21.4%

413

25.4%

87.4%

Operating income

-26

-1.2%

-57

-3.5%

--54

-2.4%

-127

-7.9%

-(Millions of yen)

Net income

attributable toshareholders of theparent company

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3

Net sales quarterly changes (Cumulative period)

Change of contract for some projects in system development,
Sales declined YoY due to the postponement of consulting projects tothe second half of the year
(Millions of yen)

4,920

4,704

3,5563,314

2,863
2,448

2,125

2,217

1,629

1,426

1,148

1,080

833

647

1Q

2Q

3Q

FY09/2020

Copyright©Systemsoft Corporation

4Q

1Q

2Q

3Q

FY09/2021

4Q

1Q

2Q

3Q

FY09/2022

4Q

1Q

2Q

FY09/2023

4

Operating Income Quarterly Changes (Cumulative Period)

Operating income decreased in line with the decline in net sales(Millions of yen)

328

354

382

377
Projects
concentrated in 4Q

265

10-130-180

Large-scale systemmodification project
Operating income increased inline with orders received-192-44-26

1Q

2Q-34-57-251
1Q

2Q

3Q

FY09/2020

Copyright©Systemsoft Corporation

4Q

1Q

2Q

3Q

FY09/2021

4Q

3Q

FY09/2022

4Q

1Q

2Q

FY09/2023

5

Balance Sheet(Millions of yen)

4Q
FY09/2022

2Q
FY09/2023

Increase/Decrease

Current assets

3,994

3,412-582

Fixed assets

3,230

3,253

23

Current liabilities

775

594

-181

Fixed liabilities

583

469

-114

Net assets

5,865

5,602-263

Capital stock

1,706

1,706

0

Capital surplus andothers

4,226

3,928

-297

7,224

6,665-558

Total assets

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6FY09/2023 Second Quarter

Financial Results by Segment

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7

About the Segment

Two pillars of business: technology business and open innovation businessTechnology

Open innovation

SS Cloud Series for real estate operators andresponsible for system development
for major companies and public sector

Creation of ecosystems throughinter-company collaboration andfocus on local development and knowledge sharing% of net sales% of net sales

73.0

27.0

SaaS/RPASS Payments

fabbit (DX linkage)

System development
and solutions

Consulting

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About SS Cloud Series

Technology

Promoting “ReTech" (Real Estate x Technology)

Application

Contract
Complete provision of important mattersand contract documents in the cloudComplete the entire processfrom application to screening on the web

Reservation for showing

Room check

Automatic reservation of previews
24 hours a day, 365 days a year

Property confirmation
Automated voice and chat response
on property offers

Vacancy list

Complete room checks
when moving in with a smartphone

ContractPreview

Tenants’
EventsSearchapartment

Moving in(Rush service)
Trouble-shooting of housing equipment

Leaveout

Repair check
Repair status reports
by contractors via smartphone

Real-time registration andinquiry of room availability

Automated matchingPatrol

AI automatically suggests properties
that match applicants’ criteria

Improved productivity of property, landlord
and vendor patrols

Copyright©Systemsoft Corporation9

New Service: SS-Chat

New Lineup Added to SS Cloud Series
Communication support system for real estate companies and customers

Before SS-Chat

After SS-Chatownere-mailLetterSS

Phone

Vsit

Different owners have different
methods of communication,
making sales management andfollow-up complicatedCopyright©Systemsoft Corporation

Supervisor support
functions

2CompletewithSS-Chat

Save logs and images

Improvedoperational efficiency
andquality of customer service

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SS Cloud Series Usage Status
Achieved one of the largest* installations in Japan through proactive marketing
Achieved single-month profitability by converting the part of the service to fee based structure.
Number of companies using thesystem (cumulative total)

Number of locations used(cumulative total)+15,714 locations+13,083

companies

44,53938,551

41,37250,56554,67958,106

61,78546,07135,22839,45831,456
26,072

1Q

2Q

3Q

FY09/20202

4Q

1Q

2Q

FY09/2023

1Q

2Q

3Q

FY09/2022

4Q

1Q2Q

FY09/2023

The ”Cumulative total number of locations used" is simply the sum of the number of locations used by the 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.

Copyright©Systemsoft Corporation11

Efforts to expand SS Cloud Series

Technology“SKIPS" collaboration is expanding, totaling now to 22 companies
Strongly promoting fintech for real estate business(1) Application
data entry(6) Notification of
screening results

applicantReal estate broker

Guarantee
screening, etc.

Data authentication(2) Linkage ofapplication data

Provide tenant
application services

ARC CO., Ltd（Iwate)•Rent guarantee company

Result check(3) Data confirmation(5) Confirmation of
screening results

Online•Property management company(4) Notification of screening results

Achievements in Collaboration (in Japanese syllabary order)•

Epos Card Co., Ltd. (Tokyo)•alpha Co., Ltd. (Kagoshima)

Anshin Guarantor Service Co., Ltd. (Tokyo)•

CREDENCE CORPORATION (Tokyo)•L’s SUPPORT Co., Ltd (Tokyo)•

Orico Forrent Insure Co.,Ltd. (Tokyo)•

JACCS Co.,Ltd. (Tokyo)•

Global Trust Networks Co., Ltd. (Tokyo)•J-LEASE Co., LTD. (Oita)•

SHIN NIHON CREDIT GUARANTEE CO.,LTD. (Tokyo)•

Zenkoku Rent Guaranty Corporation (Tokyo)•Zenhoren Co., Ltd. (Okinawa)•

nap. Inc. (Tokyo)•

Nihon Safety Co. Ltd. (Tokyo)•Japan Rental Apartment Guarantee Organization (Osaka)•Hot Hosyou Inc. (Hokkaido)•RACCOON RENT, Inc. (Tokyo)•REST SOLUTION K.K. (Tokyo)•Casa Inc. (Tokyo)•

JPMC finance Co., Ltd. (Tokyo)•APLUS Co., Ltd. (Osaka)

Copyright©Systemsoft Corporation12

SS Payment Series Introduction Status

In cooperation with SS Cloud Series
Developing services to further improve operational efficiency
Money transfer service

Account transfer service

Credit card
payment services

Total number of cases(Sept. 2021 - Sept. 2023 2Q)

Total number of cases(Sept. 2021 - Sept. 2023 2Q)

Total settlement amount(Sept. 2021 - Sept. 2023 2Q)

75,794 cases

400,345 cases
318,174+24,128

149,567
17,374
FY09/2022

12.8JPY bn
9.9
bn yen51,666+82,171

FY09/2021

aboutapprox. +2.9 bn yen
4.7
bn yen2Q FY09/2023
FY09/2021

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

2Q FY09/2023

No need to confirm errors in signing orstamping
Dramatically reduced account transferfees*This product is a service to introduce customers to the management company.

Copyright©Systemsoft Corporation

FY09/2022

FY09/2021

FY09/2022

2Q FY09/2023

Real estate leasing related transaction
including security deposit, keymoney, etc.
Settlement services for utilizing credit
card to pay the lump-sum deposit.
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SS Payment Series: new service "BunChinPay”

Technology

Initiated collaboration with APLUS Co., Ltd. on online credit service for
upfront payment, reducing burden on the lessee
Conventional

All at once
Funds Needed

Upfront payment such as deposit, key money,etc. is a big burden
In some cases, they hesitate to sign a lease.

BunChinPay

Up to36 charges are possible

Allowing installment payments as needed.
Lease agreements can be concluded smoothly.

“BunChinPay” is the name used by SystemSoft Corporation and SS Technologies for the "WEB Credit for lump-sum payment" service.
This service is an application for shopping credit by APLUS Co., Ltd. , and there will be screening before using this service.

Copyright©Systemsoft Corporation

14

About system development and businessTechnology

We provide a full range of services from development to maintenance and operation.
Offered to meet the needs of users in a wide range of industries
One-stop service x consulting

Requirement
Definition

By combining the strengths of our consulting
services, which are based on years ofexperience, know-how, and knowledge, withMaintenanceOperation

Designthe general system development process, weare able to develop products that provide
Testhigher customer satisfaction.

Businessconsultant

Development

Example of a company

BanksInsurance

Retail & Sales

Manufacturer

Incorporated
educational institution

RMS

ERP

EC Site Building System

Business Support Systems

Academic Support Systems

Digitize a large number ofregulations and manuals
used within the bank.
Contributes to improved
operational efficiency
and cost reduction.

A core business systemcentered on a hostsystem.
Building advancedsystems that requirestability and accuracy.

The package allows for
project and productadditions, 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 accessthe school's homepage,
as well as notifications ofcredit acquisition status
and information onschool closures andmake-up classes.

Copyright©Systemsoft Corporation

15

FY09/2023

Earnings Forecast

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Forecasts for the fiscal year ending September 30, 2023
Downward revision of net sales was made due to conversion of part of thesystem development in the technology business to consulting-based participation
Operating income and other figures are expected to be in line with the plan.

FY09/2022(Millions of yen)

ActualFY09/2023

Revised Forecast

FY09/2023

Previous forecast

4,704

3,800

4,400

Operating income

382

310

310

Ordinary income

377

220

220

201110110

Net sales

Net income

Attributable to Shareholdersof the parent company

Copyright©Systemsoft Corporation

17

FY09/2023 Key measures

Important measures

Strengthen SaaS business•

Expand market share by increasing the number of companies
and locations using the serviceExpand lineup by developing and launching new services•

Expansion of revenue base••Developing new customers through proactive marketing and marketing activities
Upselling existing customers by quickly identifying customer needs

Building a foundation aimed at promoting important measures

Reinforcement ofbusinessfoundation

Investment in human resources•••

Strengthen recruitment of new graduates and high-level human resources
with the ability to make an immediate impact
Optimize and streamline development programs, including training
Appropriate reallocation due to business portfolio transformation

Strengthening Corporate GovernanceCopyright©Systemsoft Corporation18

Appendix

Copyright©Systemsoft Corporation

19

STRATEGYTechnologyOpen
Innovation

Offering various types of SaaS.
Acquire high market share

Alliance and collaboration withmore than 10,000 fabbitmembers,
one of the largest in Japan

Improve the quality of services
Launch of Paid Plansx

Mainly incorporation ofSaaS technologies
and business models

Adding New Value
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20

Medium- to Long-term Growth Image

Technology andOpen innovation

Growth driver

Promoting DX Society

SaaS and RPA Business(Robotic Process Automation)

Expand business andincrease corporate value

Stable revenue baseCurrent

System development andsolution businessTechnology
cooperatecooperate

Open Innovation

Expanding collaboration with a membership companies consisting of multiple industries
Expand and strengthen our services and enter new business areas
Copyright©Systemsoft Corporation21

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, theplans and forecasts described in this document are determined and predicted by the Company based on the information at the time of creation. Plans and prospects 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 this announcement. Based on the above,
investors are requested to invest at their own risk.

Copyright©Systemsoft Corporation22