日本システムウエア（9739） – Summary of Financial Results 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese GAAP] May 16, 2022 Company name: NIPPON SYSTEMWARE CO., LTD. Stock exchange listing: Tokyo Code number: 9739 URL: https://www.nsw.co.jp/ Representative: Shoji Tada Contact: Yuzuru Suka Phone: 03-3770-1111 Scheduled date of Annual General Meeting of Shareholders: June 22, 2022 Scheduled date of commencing dividend payments: June 23, 2022 Scheduled date of filing annual securities report: June 22, 2022 Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: No President (Representative Director) Executive Corporate Officer and Member of the Board 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022) (1) Consolidated Operating Results Operating profit Ordinary profit Net sales (% indicates changes from the previous corresponding period.) (Amounts of less than one million yen are rounded down) Fiscal year ended March 31, 2022 March 31, 2021 (Note) Comprehensive income: Million yen 43,452 39,282 Million yen % 4,919 10.6 4,197 2.6 Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: % 17.2 8.7 ¥ ¥ Million yen 5,025 4,240 % 18.5 8.8 3,494 million 2,766 million Profit attributable to owners of parent Million yen 3,469 2,765 26.3 %] 4.0 %] % 25.5 3.6 [ [ Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets ratio Operating profit to net sales ratio Fiscal year ended March 31, 2022 March 31, 2021 Yen 232.89 185.59 Yen – – % 13.8 12.3 (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: % 14.5 13.4 ¥ ¥ % 11.3 10.7 – million – million (2) Consolidated Financial Position As of March 31, 2022 March 31, 2021 (Reference) Equity: As of March 31, 2022: As of March 31, 2021: (3) Consolidated Cash Flows Total assets Net assets Capital adequacy ratio Net assets per share Million yen 36,813 32,660 Million yen 26,516 23,618 % 72.0 72.3 Yen 1,779.70 1,585.16 ¥ ¥ 26,516 million 23,618 million Fiscal year ended March 31, 2022 March 31, 2021 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Million yen 3,732 1,998 Million yen (344) (583) Million yen (607) (520) Million yen 15,176 12,383 2. Dividends Fiscal year ended March 31, 2021 March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) Annual dividends 1st quarter-end Yen 2nd quarter-end Yen 3rd quarter-end Yen Year-end Total Total dividends Payout ratio (consolidated) Dividends to net assets (consolidated) – – – 20.00 20.00 25.00 – – – Yen Yen Million yen 20.00 40.00 30.00 50.00 595 744 % 21.6 21.5 25.00 50.00 21.6 % 2.6 3.0 (Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 : Commemorative dividend Special dividend – yen – yen 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023) (% indicates changes from the previous corresponding period.) Basic earnings per Profit attributable to owners of parent share % Operating profit Ordinary profit % Million yen % Million yen % Million yen Net sales Million yen Yen 21,000 45,000 2.2 3.6 2,180 5,000 0.8 1.6 2,200 5,040 0.6 0.3 1,500 0.5 3,450 (0.6) 100.67 231.55 Six months ended September 30, 2022 Full year * Notes: (1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in ) ) scope of consolidation): No New Exclusion: – – (Company name: (Company name: (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (3) Total number of issued shares (common shares) March 31, 2022: March 31, 2021: 14,900,000 shares 14,900,000 shares 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: March 31, 2022: March 31, 2021: 537 shares 437 shares 3) Average number of shares during the period: Fiscal Year ended March 31, 2022: Fiscal Year ended March 31, 2021: 14,899,501 shares 14,899,565 shares (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022) (1) Non-consolidated Operating Results Operating profit Ordinary profit Net sales (% indicates changes from the previous corresponding period.) Net income Fiscal year ended March 31, 2022 March 31, 2021 Million yen 41,356 37,567 % 10.1 3.6 Million yen 4,777 4,045 % 18.1 9.4 Million yen 4,870 4,122 % 18.1 9.5 Million yen 3,380 2,706 % 24.9 4.7 Basic earnings per share Diluted earnings per share Yen 226.86 181.62 Yen – – (2) Non-consolidated Financial Position Fiscal year ended March 31, 2022 March 31, 2021 As of March 31, 2022 March 31, 2021 Total assets Net assets Capital adequacy ratio Net assets per share Million yen 35,757 31,896 Million yen 25,980 23,176 % 72.7 72.7 Yen 1,743.72 1,555.50 (Reference) Equity: As of March 31, 2022: As of March 31, 2021: ¥ ¥ 25,980 million 23,176 million ※This Consolidated Financial Report is not subject to audit procedures by certified public accountants or auditing firm. ※The consolidated financial results forecasts are based on information currently available to The Company and on certain assumption deemed to be reasonable. As a result of various facter that may arise in the future,actual results may deffer from the Company’s forecast. Consolidated Financial Statements Consolidated Balance Sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable – trade Accounts receivable – trade Electronically recorded monetary claims – operating Merchandise Work in process Supplies Other Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Tools, furniture and fixtures, net Land Total property, plant and equipment Other, net Intangible assets Software Goodwill Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets (Million yen) As of March 31,2021 As of March 31,2022 – – 12,383 9,651 111 736 731 2 362 23,980 1,995 302 3,861 10 6,168 76 5 19 101 40 1,198 1,183 (12) 2,409 8,680 32,660 15,176 – 15 10,764 143 339 1,183 2 298 27,924 1,886 294 3,861 16 6,058 64 178 20 263 59 1,350 1,169 (12) 2,567 8,888 36,813 (Million yen) As of March 31,2021 As of March 31,2022 Liabilities Current liabilities Accounts payable – trade Income taxes payable Accrued consumption taxes Provision for bonuses Provision for loss on construction contracts Other Total current liabilities Non-current liabilities Provision for retirement benefits for directors (and other officers) Retirement benefit liability Other 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 Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Total liabilities and net assets 2,719 709 464 1,132 19 1,517 6,563 2 2,407 69 2,478 9,042 5,500 86 18,030 (0) 23,615 10 10 (18) 2 23,618 32,660 2,942 1,312 572 1,353 3 1,426 7,613 2 2,540 141 2,683 10,296 5,500 86 20,904 (0) 26,489 30 24 (27) 27 26,516 36,813 Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Million yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 Net sales Cost of sales Gross profit Selling, general and administrative expenses Remuneration for directors (and other officers) Corporate officer’ compensations Salaries and bonuses Retirement benefit expenses Welfare expenses Communication and transportation expenses Outsourcing expenses Total selling, general and administrative expenses Rent expenses Other Operating profit Non-operating income Insurance return Subsidy income Other Total non-operating income Non-operating expenses Loss on sale of receivables Foreign exchange losses 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 sale of non-current assets Settlement payments Loss on compensation for damage Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit attributable to owners of parent Profit 39,282 31,702 7,580 142 196 1,477 64 289 103 216 153 738 3,382 4,197 – 13 32 46 0 1 2 3 – – – 51 0 24 199 276 3,964 1,163 35 1,198 2,765 2,765 43,452 34,768 8,683 144 191 1,585 71 311 124 301 143 889 58 12 37 108 3,763 4,919 0 1 0 2 1 1 – – – 1 55 57 5,080 1,734 (123) 1,610 3,469 3,469 4,240 5,025 Consolidated Statements of Comprehensive Income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent (Million yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 2,765 6 1 (5) 1 2,766 2,766 3,469 20 13 (9) 24 3,494 3,494 Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31,2021 – – 2,243 (0) 2,243 5,500 86 18,030 (0) 23,615 10 10 (18) For the fiscal year ended March 31,2022 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income (Million yen) Total net assets 5,500 86 15,786 (0) 21,372 3 9 (12) 0 21,372 1 1 2 (521) 2,765 (0) 1 2,245 23,618 (521) 2,765 (521) 2,765 (0) (0) (595) 3,469 (595) 3,469 (0) (0) (5) (5) 6 6 20 20 30 1 1 13 13 24 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income (Million yen) Total net assets 5,500 86 18,030 (0) 23,615 10 10 (18) 2 23,618 – – 2,874 (0) 2,873 5,500 86 20,904 (0) 26,489 (27) 27 26,516 (595) 3,469 (0) (9) (9) 24 24 24 2,898 Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Increase (decrease) in provision for bonuses Increase (decrease) in provision for loss on construction contracts Increase (decrease) in retirement benefit liability Increase (decrease) in provision for retirement benefits for directors (and other officers) Interest and dividend income Interest expenses Loss (gain) on sale and valuation of investment securities Loss on compensation for damage Settlement payments Loss on retirement of non-current assets Gain on maturity of insurance contract Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received Decrease/increase in consumption taxes payable Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Settlement paid Compensation paid for damage Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Payments for retirement of property, plant and equipment Proceeds from sale of investment securities Proceeds from refund of leasehold and guarantee deposits Purchase of insurance funds Proceeds from maturity of insurance funds Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Dividends paid Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents (Million yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 3,964 488 – 108 (201) 101 (0) – – – 199 24 51 – (823) (404) 41 (185) (84) 118 3,398 0 – (1,175) (24) (199) 1,998 (302) (25) (45) – 31 (13) 10 (239) (583) – (520) (0) (520) 1 895 5,080 540 16 196 (15) 103 (54) (1) 0 (55) – – 1 (58) (1,114) (4) 292 (123) 108 (9) 4,903 1 (0) (1,172) – 3,732 – (243) (16) – 65 29 (12) 99 (186) (77) (344) (595) (12) (607) 13 2,793 (Million yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 11,488 12,383 12,383 15,176