Systena : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 11,2022

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022

(Under Japanese GAAP)

Company name:	Systena Corporation
Listing:	Tokyo Stock Exchange
Securities code:	2317
URL:	https://www.systena.co.jp/
Representative:	Kenji Miura, Representative Director and President
Inquiries:	Takafumi Kai, Managing Director
Telephone:	[phone]

Scheduled date of annual general meeting of shareholders:	June 23, 2022
Scheduled date to commence dividend payments:	June 9, 2022
Scheduled date to file annual securities report:	June 23, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2022	65,272		7.2	9,106	13.7	8,578	14.3	5,992	20.5
March 31, 2021	60,871		(5.7)	8,006	(1.9)	7,507	(4.6)	4,974	(9.1)

Note: Comprehensive income	For the fiscal year ended March 31, 2022:			¥6,089 million	[21.3%]
		For the fiscal year ended March 31, 2021:			¥5,018 million	[(8.9)%]
	Basic earnings	Diluted earnings	Return on equity		Ratio of ordinary	Ratio of operating
	per share	per share		profit to total assets	profit to net sales
Fiscal year ended		Yen	Yen			%		%	%
March 31, 2022		15.47	-		21.6			20.8		14.0
March 31, 2021		12.84	-		20.6			20.1		13.2

Reference: Share of profit (loss) of entities accounted for using equity method

For the fiscal year ended March 31, 2022:	¥(144) million
For the fiscal year ended March 31, 2021:	¥(748) million

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Basic earnings per share has been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
March 31, 2022	43,477	30,173	68.5	76.83
March 31, 2021	38,886	25,996	65.9	66.17
Reference: Equity
As of March 31, 2022:	¥29,762 million
As of March 31, 2021:	¥25,632 million

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Net assets per share has been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2022	5,544	(559)	(1,905)	21,964
March 31, 2021	7,205	(1,562)	(1,983)	18,875

2. Cash dividends

		Annual dividends per share		Total cash	Payout ratio	Ratio of
						dividends to
	First	Second	Third	Fiscal		dividends
	Total	(Consolidated)	net assets
	quarter-end	quarter-end	quarter-end	year-end	(Total)
			(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended	-	10.00	-	10.00	20.00	1,945	38.9	8.0
March 31, 2021
Fiscal year ended	-	10.00	-	3.50	-	2,334	38.8	8.4
March 31, 2022
Fiscal year ending
March 31, 2023	-	4.00	-	4.00	8.00		44.3
(Forecast)

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. The stated year-end dividend per share for the fiscal year ended March 31, 2022 takes the said stock split into account. The total annual dividend for the fiscal year ended March 31, 2022 is not shown because a simple total cannot be calculated due to the implementation of the stock split. The annual dividend per share for the fiscal year ended March 31, 2022 that does not take the stock split into account is 24 yen (the interim dividend of 10 yen per share and year-end dividend of 14 yen per share).

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions		%	Millions	%	Millions	%	Millions	%	Yen
	of yen		of yen	of yen	of yen
Fiscal year ending
71,450		9.5	10,280	12.9	10,280	19.8	7,000	16.8	18.07
March 31, 2023

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2022	450,880,000 shares
As of March 31, 2021	450,880,000 shares

(ii) Number of treasury shares at the end of the period

As of March 31, 2022	63,483,788 shares
As of March 31, 2021	63,505,356 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended March 31, 2022	387,386,464 shares
Fiscal year ended March 31, 2021	387,371,768 shares

Notes: 1. The Company has introduced a stock compensation plan, and in calculating the number of common treasury shares at the end of the period and the average number of shares outstanding during the period, the number of treasury shares includes shares of the Company held by Japan Custody Bank, Ltd. (the Trust Account) as trust assets for the "Trust for Granting Shares to Directors and Executive Officers" and the "Trust for Granting Shares to Executive Officers." The number of treasury shares held by the Trust Account included in the number of treasury shares at the end of the fiscal years ended March 31, 2022 and March 31, 2021 was 1,612,300 shares and 1,634,000 shares, respectively, and the number of treasury shares held by the Trust Account excluded from the calculation of the average number of shares outstanding during the fiscal years ended March 31, 2022 and March 31, 2021 is as follows: the average number of common treasury shares held by the Trust Account for the years ended March 31, 2022 and March 31, 2021 were 1,622,086 shares and 1,636,938 shares, respectively.

2. The Company implemented a four-for-one common stock split effective December 1, 2021. Number of shares has been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

[Reference] Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Non-consolidated operating results

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit		Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
March 31, 2022	58,110		6.1	8,500		13.6	8,455		9.7	5,566	23.4
March 31, 2021	54,794		(6.9)	7,483		(4.1)	7,705		(0.4)	4,510	(11.6)
	Basic earnings		Diluted earnings
	per share		per share
Fiscal year ended			Yen			Yen
March 31, 2022	14.37			-
March 31, 2021	11.64			-

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Basic earnings per share has been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
March 31, 2022	39,797	27,684	69.6	71.46
March 31, 2021	35,891	24,062	67.0	62.12
Reference: Equity
As of March 31, 2022:	¥27,684 million
As of March 31, 2021:	¥24,062 million

Note: The Company implemented a four-for-one common stock split effective December 1, 2021. Net assets per share has been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Forward-looking statements in this material, including earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed reasonable. Actual results may differ significantly due to various factors. For assumptions underlying the forecast and cautions regarding the use of earnings forecasts, please refer to "1. Overview of operating results, etc., (1) Overview of operating results for the period under review, (ii) Forecast for the next fiscal year" on page 6 of the Attached Materials.

Attached Materials Table of Contents
1. Overview of operating results, etc......................................................................................................................................................	2
(1)	Overview of operating results for the period under review........................................................................................................	2
(2)	Overview of financial position for the period under review .......................................................................................................	8
(3)	Basic policy on profit distribution and dividends for the fiscal year under review and the next fiscal year........................	10
(4)	Business and other risks ..............................................................................................................................................................	10
(5)	Issues to be addressed..................................................................................................................................................................	11
2. Corporate group ................................................................................................................................................................................	13
3. Basic approach to the selection of accounting standards ...............................................................................................................	13
4. Consolidated financial statements....................................................................................................................................................	14
(1)	Consolidated balance sheet .........................................................................................................................................................	14
(2)	Consolidated statement of income and consolidated statement of comprehensive income....................................................	16
Consolidated statement of income................................................................................................................................................	16
Consolidated statement of comprehensive income......................................................................................................................	17
(3)	Consolidated statement of changes in equity .............................................................................................................................	18
(4)	Consolidated statement of cash flows.........................................................................................................................................	20
(5)	Notes to the consolidated financial statements ..........................................................................................................................	22
(Notes on premise of going concern)...............................................................................................................................................	22
(Significant matters that serve as the basis for preparing consolidated financial statements)..........................................................	22
(Significant accounting estimates)...................................................................................................................................................	24
(Changes in accounting policies).....................................................................................................................................................	25
(Unapplied accounting standards, etc.)............................................................................................................................................	26
(Additional information)..................................................................................................................................................................	26
(On the consolidated balance sheet) ................................................................................................................................................	27
(On the consolidated statements of income) ....................................................................................................................................	27
(On the consolidated statement of comprehensive income).............................................................................................................	28
(On the consolidated statement of changes in equity) .....................................................................................................................	29
(On the consolidated statement of cash flows) ................................................................................................................................	31
(Lease transactions) .........................................................................................................................................................................	31
(Financial instruments) ....................................................................................................................................................................	32
(Securities) ......................................................................................................................................................................................	35
(Retirement benefits) .......................................................................................................................................................................	36
(Tax effect accounting)....................................................................................................................................................................	37
(Revenue recognition) .....................................................................................................................................................................	38
(Segment information, etc.) .............................................................................................................................................................	39
(Information on related parties) .......................................................................................................................................................	43
(Per share information)....................................................................................................................................................................	43
(Significant subsequent events) .......................................................................................................................................................	44
5. Non-consolidatedfinancial statements.............................................................................................................................................	45
(1)	Non-consolidatedbalance sheet ..................................................................................................................................................	45
(2)	Non-consolidatedstatement of income.......................................................................................................................................	48
(3)	Non-consolidatedstatement of changes in equity......................................................................................................................	50
(4)	Notes to the non-consolidatedfinancial statements...................................................................................................................	52
(Notes on premise of going concern)...............................................................................................................................................	52
(Significant accounting policies) .....................................................................................................................................................	52
(Significant accounting estimates)...................................................................................................................................................	54
(Changes in accounting policies).....................................................................................................................................................	54
(Additional information)..................................................................................................................................................................	55
(On the non-consolidated balance sheet) .........................................................................................................................................	55
(On the non-consolidated statements of income).............................................................................................................................	55
(Securities) ......................................................................................................................................................................................	55
(Tax effect accounting)....................................................................................................................................................................	56
(Significant subsequent events) .......................................................................................................................................................	56
6. Other ..................................................................................................................................................................................................	57
The Company will hold a briefing session for investors as follows. The materials distributed at the briefing will be posted on the
	Company's website immediately after the briefing.
・May 16, 2022 (Monday): Company Information Briefing for Institutional Investors and Analysts

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