(For the 6-month period ended June 30, 2024) August 8, 2024
Scheduled date for filing of quarterly financial report:   August 9, 2024 (Note) All figures in the financial statements are rounded down to the nearest millionth. '-' indicates a loss or negative figure.
1. Consolidated results (January 1, 2024 through June 30, 2024)
(Percentages indicate year-on-year changes.)
As of Jun. 30, 2024: 65 million yen/   -% As of Jun. 30, 2023: -134 million yen/   -%
As of Jun. 30, 2024: 1,121 million yen As of Dec. 31, 2023: 1,099 million yen
3. Forecast of consolidated results for FY2024 (January 1, 2024 through December 31, 2024)

4. Others
(1) Reclassification of significant subsidiaries during the period (Reclassification due to change in scope of consolidation): None (2) Application of special accounting methods for the preparation of the consolidated quarterly financial statements: None (3) Change in accounting policies, accounting estimates and restatement (i) Change in accounting policies associated with revision of accounting standards: None (ii) Change arising from other factors: None (iii)  Change in accounting estimates: None (iv)  Restatement: None (4) Number of outstanding shares (common shares)

Explanation about proper use of forecasts of consolidated financial results and other special notes
Information Regarding the Audit Review Procedure: This report is outside the scope of the procedures for quarterly review of l. financial statements as required under the financial instruments and Exchange Act of Japan. The aforementioned procedures have not been completed as of the time of disclosure of this document. 2. Net income per share was calculated by the number of outstanding shares (excluding treasury stocks) at the end of fiscal year. 3. Forecasts announced by the company referred to above were prepared based on management's assumption with information available at this time and therefore involve known and unknown risks and uncertainties. Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts. This information to above is an UNOFFICIAL English-language translation of the original Japanese-language version. The format 4. and contents of this document are defined by the requirements of the Tokyo Stock Exchange's Standard. To the extent that there are discrepancies between this translation and the original version, the original version shall be definitive.

1. Qualitative Information on Consolidated Business Results
(1) Results of Operations
During the six months ended June 30, 2024, some positive developments were observed in the Japanese economy, such as robust corporate earnings and improvements in the job market and personal income. The global economy, however, continued to face lingering uncertainty, due to soaring materials prices and volatile foreign-exchange markets. In this business environment, the SIOS Group ("the Group") continued to restructure its business operations, expanded its SaaS¹ and subscription²-based businesses, and stepped up its efforts for new business development in order to increase its enterprise value. The Group achieved consolidated business results by segment for the period under review as follows: (i) Open System Infrastructure Business Segment Sales of Red Hat Enterprise Linux 3 and other software products sourced from Red Hat, Inc. 4 , jumped substantially to fulfill major project orders, but they had little impact on the Group's profitability as those were low-margin projects. Sales and profit of LifeKeeper 5 , which is one of the Group's core software products, were up year on year, due to strong perpetual license sales in Japan. As a result, net sales in this segment amounted to 8,798 million yen, up 76.0% from the same period the previous year, with a segment income of 94 million yen, up 66.6%.
(ii) Application Business Segment
Revenue in the API 6 Solutions Business achieved solid growth, as our engineering strengths in the field of API economy met surging business needs. Revenue from the sales of the Gluegent series '  and software applications for MFPs '  was up year on year. By contrast, revenue from the provision of support for system development and implementation to financial institutions and universities was below the year-earlier level, and so were sales of the management support system to financial institutions. As a result, net sales in this segment fell 1.8% year on year to 3,005 million yen. As a result of the reassessment and reallocation of research and development expenses, the segment loss reduced to 114 million yen, compared with a loss of 169 million yen posted for the same period the year before. The Group's consolidated net sales for the period under review jumped 46.3% year on year to 11,804 million yen, primarily due to a substantial sales increase in software products sourced from Red Hat, Inc., as reported earlier. The Group posted a consolidated operating loss of 18 million yen, down from a loss of 106 million yen the year before, and an ordinary profit of 57 million yen, compared with an ordinary loss of 78 million yen the previous year, which reflected the gain on valuation of derivatives and the share of profit of entities accounted for using the equity method. The profit attributable to owners of parent amounted to 23 million yen, compared with a loss of 176 million yen the year before. The Group's key management metrics EBITDA (the sum of operating profit, depreciation, and amortization of goodwill) and ROIC (ratio obtained by dividing operating profit after tax by the sum of shareholders' equity and interest-bearing debts) for the period under review were as follows: EBITDA: 6 million yen, compared with -60 million yen for the same period the previous year ROIC (annualized): -1.9%, compared with -11.8% for the same period the previous year 1 SaaS Software as a Service. A software licensing and distribution model that allows users to connect to and use cloud-based software applications over the internet. 2 Subscription business model A business model that charges customers a recurring monthly or annual fee to access a software product or service. 3 Red Hat Enterprise Linux Linux OS developed by the open solution provider Red Hat, Inc. 4 Red Hat, Inc. Related Items Linux OS product developed by Red Hat, Inc., a provider of open source solutions. 5 LifeKeeper A failover software product that automatically switches a failed primary server to a backup server.
6 API
A mechanism for software and applications to exchange information with each other. 7 Gluegent series Service products designed to assist corporate clients in achieving greater operational efficiency using cloud solutions. The series includes the Gluegent Gate cloud-based management of user IDs, the Gluegent Flow cloud-based workflow system, and the Gluegent Apps Group Scheduler, which incorporated a function to manage schedules of team members into Google Calendar. 8 Software applications for multifunction printers A multifunction printer (MFP) is a piece of office equipment that incorporates print, scan, copy, and fax capabilities into one unit. The Group develops, markets, and updates document management software applications, such as Quick Scan and Speedoc, that run on an MFP.
(2) Summary of Financial Position
(i) Assets Current assets amounted to 7,497 million yen as of June 30, 2024, up 30.6% from the end of the previous fiscal year, reflecting primarily an increase of 1,238 million yen in notes and accounts receivable trade, as well as contract assets. Non-current assets amounted to 1,026 million yen, up 6.3%, reflecting primarily an increase of 60 million yen in software in progress. As a result, total assets increased 27.1% to 8,524 million yen.
(ii) Liabilities
Current liabilities amounted to 6,867 million yen, up 33.9%, reflecting primarily an increase of 1,342 million yen in accounts payable trade. Non-current liabilities amounted to 430 million yen, up 11.0%, reflecting primarily an increase of 34 million yen in lease liabilities. As a result, total liabilities amounted to 7,298 million yen, up 32.3% from the previous fiscal year-end.
(iii) Net assets
Total net assets amounted to 1,226 million yen, up 3.2% from the previous fiscal year-end, reflecting the posting of a profit of 23 million yen attributable to owners of parent. (3) Forward-looking Statements Including Consolidated Business Forecasts We have updated the consolidated financial guidance for the fiscal year ending December 31, 2024, which was originally announced on February 8, 2024. For details, refer to "An Update on Consolidated Financial Guidance," announced on August 8, 2024.
2. Semi-annual Consolidated Financial Statements

Consolidated Statements of Consolidated Statements of Income and Quarterly Comprehensive Income Semi-annual Consolidated Statements of Income
Semi-annual Consolidated Statements of Comprehensive Income Six months ended June 30
(4) Notes to Semi-annual Consolidated Financial Statements (Notes to Going Concern Assumption) Not applicable (Notes on significant changes in the amount of shareholders' equity) Not applicable.
(Segment Information)
【Segment Information】
I. For the Six months ended June 30, 2023 (From January 1, 2023 through June 30, 2023) 1. Information on the amount of sales and income/loss by reportable segment
Consolidated Statements of Income for the period under review.
Supplementary Information
Information by region In addition to the disclosure required by "Accounting Standard for Semi-annual Financial Statements," information (Sales) by region is disclosed in accordance with "Accounting Standard for the Disclosure of Segment Information" for the purpose of providing users of financial statement with valuable information. Net sales Six months ended June 30, 2023 (From January 1, 2023 through June 30, 2023)
Note: Sales are classified by country or region in which customers are located. 2. Information on impairment loss of fixed assets or goodwill by reportable segment (Significant impairment loss on non-current assets) During the period under review, the Company posted an impairment loss of 30.201 million yen on non-current assets in the Application Business Segment. II. For the six months ended June 30, 2024 (From January 1, 2024 through June 30, 2024) 1. Information on the amount of sales and income by reportable segment
Consolidated Statements of Income for the period under review.
Supplementary Information
Information by region In addition to the disclosure required by "Accounting Standard for Semi-annual Financial Statements," information (Sales) by region is disclosed in accordance with "Accounting Standard for the Disclosure of Segment Information" for the purpose of providing users of financial statement with valuable information. For the six months ended June 30, 2024 (From January 1, 2024 through June 30, 2024)
(Unit: thousand yen) 2. Information on impairment loss of fixed assets or goodwill by reportable segment Not applicable