Cube System : 1st Quarter of the Fiscal Year Ending March 31, 2023 Supplementary Information Material for Financial Results

	1st Quarter of the Fiscal Year Ending March 31, 2023
	Supplementary Information Material
Aug 3, 2022	for Financial Results

Securities code: 2335

Contents 1

2

3

1Q of the Fiscal Year Ending March 31, 2023

Overview of Financial Results

Fiscal Year Ending March 31, 2023

Outlook

Appendix

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1Q1of the Fiscal Year

Ending March 31, 2023

Overview of

Financial

Results

1. Overview of Consolidated Statements of Income
2. Trends in Transition by Accounting Period
3. Factors Leading to Changes in Operating Profit (Compared to the Previous Fiscal Year)
4. Trends in Net Sales and Operating Profit by Service Segment
5. Trends in Net Sales and Operating Profit by Industry
6. Trends in Net Sales and Operating Profit by Business Model
7. Index Per Capita

Copyright (C) 2022 CUBE SYSTEM INC. All rights reserved 3

1-1. Overview of Consolidated Statements of Income

Continue to reform the structure of Business model

Overview of

Financial Results

Decrease in sales and income due to delay in occurrence of some projects and reinforcement of management base

Net sales

Operating

Profit

Down 2.4% from the previous fiscal year Achievement rate for earnings forecast: 22.5%

Maintained the same level as the previous fiscal year, fulfillig the expansion of system construction projects in the financial and telecommunications industries, despite a decrease in system construction projects for a shipping company.

Down 28.1% from the previous fiscal year Achievement rate for earnings forecast: 17.8%

Made efforts to enhance the sophistication of enhancement services and increase orders for derivative development projects, though, delays in some projects and the effects of measures to improve profit margins were less than expected.

Implement measures to strengthen management base (human resource development and investment in IT system for in-house use)

	FYE 2023	FYE 2022	FYE 2023
	1Q
	1Q	(Forecast)
	(Actual)
	(Actual)	(Progress %)
(Unit: millions of yen)	(% change)

Net sales	3,892	3,987	17,300
	(-2.4%)		(22.5%)
Operating	272	378	1,530
Profit	(-28.1%)		(17.8%)
Margin (%)	7.0%	9.5%	8.8%
Ordinary	271	390	1,545
Profit	(-30.5%)	(17.5%)
Margin (%)	7.0%	9.8%	8.9%
Net Profit	173	262	1,000
attributable to	(-34.0%)	(17.3%)
owners of parent
Margin (%)	4.5%	6.6%	5.8%

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1-2. Trends in Transition by Accounting Period

Overview of

Financial Results

				(Millions of yen)	FYE2021			FYE2022		FYE2023	(%)
					4,500										25.0
					4,000
					3,500										20.0
				Net sales	3,000										15.0
				2,500
				Gross margin
				Operating	2,000
				margin	1,500										10.0
					1,000										5.0
					500
					0										0.0
						1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
						Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
		Net sales	3,373	3,710	3,508	4,197	3,987	4,073	3,981	4,058	3,892
		Cost of sales	2,730	3,027	2,854	3,335	3,124	3,217	3,118	3,188	3,107
		Gross profit	642	683	653	861	862	855	862	869	785
					(19.1%)	(18.4%)	(18.6%)	(20.5%)	(21.6%)	(21.0%)	(21.7%)	(21.4%)	(20.2%)
		Selling, general and
		administrative	400	372	413	478	483	487	486	574	513
		expenses
		Operating Profit	242	310	239	382	378	368	375	295	272
					(7.2%)	(8.4%)	(6.8%)	(9.1%)	(9.5%)	(9.0%)	(9.4%)	(7.3%)	(7.0%)
		Ordinary Profit	248	355	318	372	390	362	380	299	271
					(7.4%)	(9.6%)	(9.1%)	(8.9%)	(9.8%)	(8.9%)	(9.6%)	(7.4%)	(7.0%)
		Quarterly net Profit	165	235	196	247	262	238	253	189	173
		attributable to	(4.9%)	(6.3%)	(5.6%)	(5.9%)	(6.6%)	(5.9%)	(6.4%)	(4.7%)	(4.5%)
		owners of parent
												Copyright (C) 2022 CUBE SYSTEM INC. All rights reserved 5