NS : Consolidated Financial Results

(% indicates changes from the previous corresponding period.)

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 Six Months Ended September 30, 2022
	(Under IFRS)
	October 27, 2022
Company name:	NS Solutions Corporation
Listing:	Tokyo Stock Exchange
Securities code:	2327
URL:	https://www.nssol.nipponsteel.com
Representative:	Hiroyuki Morita, Representative Director & President
Inquiries:	Hideki Komatsu, Director, Accounting & Finance Department
Telephone:	[phone]

Scheduled date of file quarterly securities report:	November 4, 2022
Scheduled date of commence dividend payments:	December 1, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results briefing:	Yes (for analysts)

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

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 to September 30, 2022)

(1) Consolidated Operating Results (cumulative)

			Revenue			Operating profit		Profit before tax		Profit attributable to
							owners of parent
	Six months ended	Million yen	%	Million yen	%		Million yen	%		Million yen	%
	September 30, 2022	134,685	3.0		14,004	(1.2)		14,236	(1.8)		9,397	(0.7)
	September 30, 2021	130,787	-		14,169	-		14,499	-		9,460	-
		Total comprehensive		Basic earnings		Diluted earnings
			income			per share		per share
	Six months ended	Million yen	%			Yen			Yen
	September 30, 2022	1,067	(95.0)			102.71			-
	September 30, 2021	21,190	-			103.39			-
(2) Consolidated Financial Position
												Ratio of equity
			Total assets		Total equity	Equity attributable	attributable to
				to owners of parent	owners of parent to
												total assets
	As of			Million yen		Million yen		Million yen		%
	September 30, 2022			314,383		202,098		195,275		62.1
	March 31, 2022			325,764		204,569		197,831		60.7

Copyright (C) 2022 NS Solutions Corporation, All rights reserved.

2. Cash Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended		-	30.00		-	36.00	66.00
March 31, 2022
Fiscal year ending		-	35.00
March 31, 2023
Fiscal year ending					-	35.00	70.00
March 31, 2023 (Forecast)
(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for Fiscal 2022 (April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

	Revenue		Operating profit	Profit before tax	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	290,000	7.3	31,000	3.7	31,500	2.6	21,100	2.8	230.61

(Note) Revision to the financial results forecast announced most recently: Yes

Copyright (C) 2022 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
3. 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 September 30, 2022:	91,501,000 shares
	As of March 31, 2022:	91,501,000 shares
2)	Total number of treasury shares at the end of the period:
	As of September 30, 2022:	4,845 shares
	As of March 31, 2022:	923 shares
3) Average number of shares during the period:
	Six months ended September 30, 2022:	91,493,140 shares
	Six months ended September 30, 2021:	91,500,204 shares

• This quarterly consolidated financial results report is exempt from the quarterly review 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 ending March 31, 2023. The consolidated financial statements for the transition date, the same period of the previous fiscal year, and the previous fiscal year are presented based on 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) 2022 NS Solutions Corporation, All rights reserved.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results .....................................................................................	2
(1)	Operating Results ...........................................................................................................................................	2
(2)	Financial Position ...........................................................................................................................................	4
(3)	Consolidated Financial Results Forecast and Other Forward-looking Information .......................................	6
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ...................................................	7
(1)	Condensed Quarterly Consolidated Statements of Financial Position ...........................................................	7
(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated
	Statements of Comprehensive Income ...........................................................................................................	9
(3)	Condensed Quarterly Consolidated Statements of Changes in Equity .........................................................	13
(4)	Condensed Quarterly Consolidated Statements of Cash Flows ...................................................................	15
(5)	Notes to Condensed Quarterly Consolidated Financial Statements .............................................................	16
	Going concern assumption ......................................................................................................................	16
	First-time adoption ..................................................................................................................................	16

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Copyright (C) 2022 NS Solutions Corporation, All rights reserved.

1. Qualitative Information on Quarterly Financial Results

1. Operating Results Analysis of operating results
   Japan saw signs of a mild economic recovery during the six months ended September 30, 2022, 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. Corporate earnings have generally improved despite weakness in some areas, and system investment by client companies has increased moderately.
   Based on the Mid-term Business Strategy 2021-2025 published in April 2021, NS Solutions Corporation (hereinafter the "Company" or collectively referred to as the "Group") defined four focus areas for business growth: digital transformation (DX) in the manufacturing industry, digital platformer, digital workplace solution, and IT outsourcing. We are endeavoring to expand our business by capturing customer needs for DX to the greatest extent possible.
   For DX in the manufacturing industry area, 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. We also started to offer the data management services used on the platform as integrated data management services for enterprises promoting DX. Furthermore, we implemented initiatives to support DX promotion at manufacturing sites for customers in the manufacturing industry. Specifically, this included the provision of "nsraven," a local 5G solution, to enable remote operation of overhead cranes in factories.
   As part of efforts to achieve growth, we worked to enhance our capabilities to meet the needs of DX services in part by entering into capital and business alliance as well as strategic partnership agreements with companies with strengths in fields such as AI, support for digitization of business processes, and data utilization. Furthermore, the Company also worked to develop new solutions. It launched the provision of "Enepharos," energy trading and risk management services; "FINARCH," services for financial institutions to optimize the use of the cloud; and "PPPlan," cloud services to support DX of supply and demand planning for the food industry.
   In the promotion of 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. Regarding the reduction of environmental impacts, which is one of the material issues, the Company has endorsed the TCFD recommendations, set a reduction target for GHG emissions, and is proceeding with efforts to contribute to achieving the target. In addition, we have established the Group's human rights policy, promoting the development of environments where diverse people can take an active part. The Company is also engaged in various business activities from an ESG perspective to create a prosperous society. Specifically, as an initiative for programming education, the Company and Nippon Steel Corporation worked together to develop programming learning materials on the theme of steel production management targeting upper elementary school students, and held on-site classes. We have also started activities to help improve financial literacy among young people, including junior high and high school students. As a result of these efforts, the Company has been newly selected as an index component of the FTSE Blossom Japan Sector Relative Index, in addition to the FTSE4Good Index Series and FTSE Blossom Japan Index, which are ESG investment benchmarks.

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Copyright (C) 2022 NS Solutions Corporation, All rights reserved.