NS : Consolidated Financial Results From April 1, 2022 to December 31, 2022

(% 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 Nine Months Ended December 31, 2022
	(Under IFRS)
	February 3, 2023
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:	February 10, 2023
Scheduled date of commence dividend payments:	-
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 Nine Months Ended December 31, 2022 (April 1, 2022 to December 31, 2022)

(1) Consolidated Operating Results (cumulative)

			Revenue			Operating profit		Profit before tax		Profit attributable to
							owners of parent
	Nine months ended	Million yen	%	Million yen	%		Million yen	%		Million yen	%
	December 31, 2022	206,780	5.7		22,323	0.7		22,588	(0.2)		15,099	(0.3)
	December 31, 2021	195,618	-		22,175	-		22,631	-		15,137	-
		Total comprehensive		Basic earnings		Diluted earnings
			income			per share		per share
	Nine months ended	Million yen	%			Yen			Yen
	December 31, 2022	6,998	(75.0)			165.03			-
	December 31, 2021	28,049	-			165.44			-
(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		%
	December 31, 2022			308,077		204,839		197,782		64.2
	March 31, 2022			325,764		204,569		197,831		60.7

Copyright (C) 2023 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: None

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
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 December 31, 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 December 31, 2022:	4,845 shares
	As of March 31, 2022:	923 shares
3) Average number of shares during the period:
	Nine months ended December 31, 2022:	91,494,149 shares
	Nine months ended December 31, 2021:	91,500,203 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) 2023 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	5
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes	6
(1)	Condensed Quarterly Consolidated Statements of Financial Position	6
(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated
	Statements of Comprehensive Income	8
(3)	Condensed Quarterly Consolidated Statements of Changes in Equity	12
(4)	Condensed Quarterly Consolidated Statements of Cash Flows	14
(5)	Notes to Condensed Quarterly Consolidated Financial Statements	15
	Going concern assumption	15
	First-time adoption	15

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Copyright (C) 2023 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 nine months ended December 31, 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. In addition, close attention should be paid to the impact of rising prices, supply-side constraints, and fluctuations in financial and capital markets, as well as the situation of the COVID-19 outbreak in China. 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. Moreover, the Company started to offer the integrated data management platform (DATAOPTERYX) used in NS-Lib 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.
   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 digitalization of business processes, and data utilization. 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.
   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. As a result, the Company received the highest gold rating in the PRIDE Index 2022, which is an evaluation index for initiatives related to LGBTIQ+ and other sexual minorities. 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

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