NS : Consolidated Financial Results From April 1, 2023 to June 30, 2023

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 Three Months Ended June 30, 2023
	(Under IFRS)
	July 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:	[phone]

Scheduled date of filing quarterly securities report:	August 4, 2023
Scheduled date of commencing 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 Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results (cumulative)			(% indicates changes from the previous corresponding period.)
			Revenue				Operating profit		Profit before tax		Profit attributable to
								owners of parent
	Three months ended	Million yen	%		Million yen	%		Million yen	%		Million yen	%
	June 30, 2023	68,773	5.6			6,581	1.5		6,875	3.4		4,022	(7.6)
	June 30, 2022	65,132	(0.6)			6,484	(11.9)		6,652	(12.7)		4,352	(8.4)
		Total comprehensive			Basic earnings		Diluted earnings
			income				per share		per share
	Three months ended	Million yen	%				Yen			Yen
	June 30, 2023	10,015	-				43.97			-
	June 30, 2022	(5,784)	-				47.57			-
(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		%
	June 30, 2023			325,638		213,841		206,654		63.5
	March 31, 2023			319,908		207,800		200,523		62.7

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		-	35.00		-	40.00	75.00
March 31, 2023
Fiscal year ending		-
March 31, 2024
Fiscal year ending			40.00		-	40.00	80.00
March 31, 2024 (Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

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.)

	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
First half	140,000	3.9	14,000	(0.0)	14,300	0.4	9,400	0.0	102.75
Full year	305,000	4.6	33,500	5.5	34,000	5.9	22,800	3.6	249.22

(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 June 30, 2023:	91,501,000 shares
	As of March 31, 2023:	91,501,000 shares
2)	Total number of treasury shares at the end of the period:
	As of June 30, 2023:	18,091 shares
	As of March 31, 2023:	4,845 shares
3) Average number of shares outstanding during the period:
	Three months ended June 30, 2023:	91,487,671 shares
	Three months ended June 30, 2022:	91,492,073 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 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	3
(3)	Consolidated Financial Results Forecast and Other Forward-looking Information	4
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes	5
(1)	Condensed Quarterly Consolidated Statements of Financial Position	5
(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated
	Statements of Comprehensive Income	7
(3)	Condensed Quarterly Consolidated Statements of Changes in Equity	9
(4)	Condensed Quarterly Consolidated Statements of Cash Flows	11
(5)	Notes to Condensed Quarterly Consolidated Financial Statements	12
	Going concern assumption	12

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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 three months ended June 30, 2023, but the outlook remains uncertain. There is a risk of a 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 markets.
   Corporate earnings have generally improved, 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 the 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.
   As part of our efforts to promote customers' DX, the Company has introduced an "AI-powered demand forecasting system" to improve the efficiency and sophistication of demand forecasting operations for beverage companies' manufacturing and shipping process. Also, for educational institutions, the Company has started offering "CampusSquare S Edition" as a subscription service for the "CampusSquare" an administrative work system for universities and colleges, which has been provided to more than 100 schools nationwide since 1995. Moreover, as part of our efforts towards growth, the Company entered a business alliance with AI startup company ExaWizards Inc. in May of this year and is working to expand its business area and strengthen its execution capabilities through sales and provision of the commercial products of ExaWizards Inc. and provision of consulting services for promotion of customers' DX.
   In addition, our virtual desktop service "M³DaaS@absonne" ranked first in the "DaaS market share" for the 10th consecutive year (referencing from Fuji Chimera Research Institute, Inc., "2023 Current Trends and Future Prospects of Cloud Computing") and the cumulative number of documents registered on "CONTRACTHUB," an electronic transaction and contract service, exceeded 30 million at the end of April 2023. We are striving for growth in our focus areas.
   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. The Company has been committed to fostering a corporate culture in which everyone can work with vigor and enthusiasm, including the promotion of D&I. Continuing from the last year, the Company supported and co- sponsored "TOKYO RAINBOW PRIDE 2023" and is engaged in various business activities from an ESG perspective to create a prosperous society. As a result of these efforts, the Company was selected again as an index component of the FTSE4Good Index Series, FTSE Blossom of Japan Index, and FTSE Blossom Japan Sector Relative Index, which are ESG investment benchmarks.
   Revenue for the three months ended June 30, 2023 amounted to 68,773 million yen, an increase of 3,640 million yen compared to 65,132 million yen for the same period of the previous fiscal year. This was due to higher sales of Internet platformer-related business and increased sales to major banks and Nippon Steel Corporation. Operating profit amounted to 6,581 million yen, an increase of 96 million yen compared to 6,484 million yen for the same period of the previous fiscal year due to a rise in selling, general and administrative expenses resulting from the accelerated implementation of sales capability enhancement and internal infrastructure improvement, despite an increased gross profit including an improved gross profit margin.

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