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.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

(Under IFRS)

April 28, 2023

Company name:

NS Solutions Corporation

Listing:

Tokyo Stock Exchange

Securities code:

2327

URL:

https://www.nssol.nipponsteel.com

Representative:

Kazuhiko Tamaoki, Representative Director & President

Inquiries:

Hideki Komatsu, Director, Accounting & Finance Department

Telephone:

+81-3-6899-6000

Scheduled date of Annual General Meeting of Shareholders:

June 21, 2023

Scheduled date of commencing dividend payments:

June 5, 2023

Scheduled date of filing annual securities report:

June 22, 2023

Preparation of supplementary material on financial results:

Yes

Holding of financial results briefing:

Yes (for analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Revenue

Operating profit

Profit before tax

Profit attributable to

owners of parent

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2023

291,688

7.9

31,738

6.2

32,101

4.6

22,000

7.2

March 31, 2022

270,332

-

29,886

-

30,687

-

20,521

-

Total comprehensive

Basic earnings

Diluted earnings

Return on equity

attributable to owners

income

per share

per share

of parent

Fiscal year ended

Million yen

%

Yen

Yen

%

March 31, 2023

9,947

(55.6)

240.46

-

11.0

March 31, 2022

22,388

-

224.27

-

10.8

Ratio of profit before

Ratio of operating

tax to total assets

profit to revenue

Fiscal year ended

%

%

March 31, 2023

9.9

10.9

March 31, 2022

9.7

11.1

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

For the fiscal year ended March 31, 2023: 18 million yen

For the fiscal year ended March 31, 2022: 39 million yen

(2) Consolidated Financial Position

Equity attributable

Ratio of equity

Equity attributable

attributable to

Total assets

Total equity

to owners of

to owners of

owners of parent

parent

parent per share

to total assets

As of

Million yen

Million yen

Million yen

%

Yen

March 31, 2023

319,908

207,800

200,523

62.7

2,191.60

March 31, 2022

325,764

204,569

197,831

60.7

2,162.09

Copyright (C) 2023 NS Solutions Corporation, All rights reserved.

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at end of period

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

March 31, 2023

26,032

(5,635)

(14,943)

101,322

March 31, 2022

38,406

(8,540)

(12,939)

95,706

2. Cash Dividends

Annual dividends

Ratio of

dividends to

Total cash

Dividend

equity

1st

2nd

3rd

payout ratio

attributable to

Year-end

Total

dividends

quarter-end

quarter-end

quarter-end

(Consolidated)

owners of

parent

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

Fiscal year ended

-

30.00

-

36.00

66.00

6,039

29.4

3.2

March 31, 2022

Fiscal year ended

-

35.00

-

40.00

75.00

6,862

31.2

3.4

March 31, 2023

Fiscal year ending

March 31, 2024

-

40.00

-

40.00

80.00

32.1

(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

Profit attributable

Basic earnings

Revenue

Operating profit

Profit before tax

to owners of

per share

parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

First half

140,000

3.9

14,000

(0.0)

14,300

0.4

9,400

0.0

102.74

Full year

305,000

4.6

33,500

5.5

34,000

5.9

22,800

3.6

249.19

Copyright (C) 2023 NS Solutions Corporation, All rights reserved.

* Notes:

  1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None
  2. Changes in accounting policies and changes in accounting estimates
    1. Changes in accounting policies required by IFRS: None
    2. Changes in accounting policies other than 1) above: None
    3. Changes in accounting estimates: None
  4. Total number of issued shares (common stock)
    1. Total number of issued shares at the end of the period (including treasury shares):

As of March 31, 2023:

91,501,000 shares

As of March 31, 2022:

91,501,000 shares

  1. Total number of treasury shares at the end of the period:

As of March 31, 2023:

4,845 shares

As of March 31, 2022:

923 shares

  1. Average number of shares outstanding during the period:

Fiscal year ended March 31, 2023:

91,494,644 shares

Fiscal year ended March 31, 2022:

91,500,181 shares

  • This consolidated financial results report is exempt from the audit procedures conducted by certified public accountants or an audit corporation.
  • Explanation of the proper use of financial results forecast and other notes
    • The Group adopted the International Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ended March 31, 2023. The consolidated financial statements as of the transition date and for the previous fiscal year are also presented under IFRS.
    • The forecasts stated above are based on information available as of the date of publication of this document. Actual results may differ from these forecasts due to a wide range of factors hereafter.

Copyright (C) 2023 NS Solutions Corporation, All rights reserved.

Table of Contents - Attachments

1.

Overview of Financial Results

2

(1)

Operating Results

2

(2)

Financial Position

4

(3)

Cash Flows

4

(4)

Outlook for the Fiscal Year Ending March 31, 2024

6

(5)

Basic Policy for Profit Distribution and Dividends for the Current and Next Fiscal Years

6

2.

Status of the NSSOL Group

7

3.

Management Policy

10

(1)

Basic Policy for Corporate Management

10

(2)

Issues to Be Addressed

10

4.

Basic Approach to Selection of Accounting Standards

16

5.

Consolidated Financial Statements and Primary Notes

17

(1)

Consolidated Statements of Financial Position

17

(2)

Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income

19

(3)

Consolidated Statements of Changes in Equity

21

(4)

Consolidated Statements of Cash Flows

23

(5)

Notes to Consolidated Financial Statements

24

Going concern assumption

24

Segment information

24

Per share information

24

Significant subsequent events

24

First-time adoption

24

6.

Status of Production, Orders Received and Sales

33

1

Copyright (C) 2023 NS Solutions Corporation, All rights reserved.

1. Overview of Financial Results

  1. Operating Results
    Japan saw signs of a mild economic recovery despite weakness in some sectors during the fiscal year ended March 31, 2023, but the outlook remains uncertain. There is a risk of slowdown in the Japanese economy as it faces downward pressure from the downturn of overseas economies mainly due to global monetary tightening. In addition, close attention should be paid to the impact of rising prices, supply-side constraints, and fluctuations in financial and capital markets.
    Although corporate earnings at large have improved, some signs of weakening were observed and the system investment by client companies has increased moderately.
    Based on the Medium-term Business Strategy 2021-2025 published in April 2021, NS Solutions Corporation (hereinafter, the "Company," and the Company and its subsidiaries are collectively referred to as the
    "Group") defined four focus areas for business growth: digital transformation (DX) in manufacturing industry, digital platformer, digital workplace solutions, and IT outsourcing. We are endeavoring to expand our business by capturing customer needs for DX to the greatest extent possible.
    For the focus area of DX in manufacturing industry, we proceeded with our efforts to promote DX for
    Nippon Steel Corporation. These efforts included the building of "NS-IoT," a wireless IoT sensor platform for centralized management of data from steel manufacturing sites, and the launch of its actual operation in April for the purpose of early detection of abnormalities in facilities. We also built "NS-Lib," an integrated data platform that allows for grasping management information and KPIs on a real-time basis and taking appropriate actions. These efforts to integrate data accumulated individually at each steel manufacturing site and data required for management purposes were highly evaluated and contributed to Nippon Steel's winning of the grand prize in Data Management 2023 sponsored by the Japan Data Management Consortium. Moreover, the Company started to offer the integrated data management platform "DATAOPTERYX" to enterprises promoting DX. With the platform, we developed an infrastructure for utilizing integrated data together with a pharmaceutical company. Furthermore, we implemented initiatives to support DX promotion at manufacturing sites for customers in the manufacturing industry. Specifically, this included the start of the provision of "nsraven," a local 5G solution, to enable remote operation of overhead cranes in factories.
    For the remaining three focus areas, we have taken on the following initiatives to drive their growth: supporting platformers such as Internet service providers and electronic commerce operators and players in the financial services sector to promote their DX in the digital platformer area; expanding functions such as those to enhance the security of our virtual desktop service "M³DaaS@absonne" in the digital workplace solutions area; and providing new solutions to help establish multi-cloud environments in the IT outsourcing area.
    As part of other efforts to achieve growth, we worked to enhance our capabilities to meet the needs of DX services by entering into capital and business alliance as well as strategic partnership agreements with companies having respective strengths in fields such as AI, data utilization, support for digitalization of business processes, and affluent human resources capable of promoting DX. Furthermore, the Company also worked to develop new solutions, which include "Enepharos," energy trading and risk management services; "FINARCH," services for financial institutions to optimize the use of the cloud; "PPPlan," cloud services to support DX of supply and demand planning for the food industry; and "NAYASAPO," a career reflection tool to improve employee engagement.
    To promote sustainability management, we have organized our value creation process based on our goals to achieve the purpose of our existence in society, defined five material issues, and are working to address them.

2

Copyright (C) 2023 NS Solutions Corporation, All rights reserved.

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NS Solutions Corporation published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 06:12:10 UTC.