August 13, 2024

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2025
(Three Months Ended June 30, 2024)
Company name:
Stock code:
Representative:
Contact:

Japan System Techniques Co., Ltd.
4323
Takeaki Hirabayashi, President and CEO
Taku Hirabayashi, Director and Senior Officer[Japanese GAAP]

Listing: Tokyo Stock Exchange
URL: https://www.jast.jp
Tel: +81-6-4560-1000
None
None

Scheduled date of payment of dividend:
Preparation of supplementary materials for financial results:
Holding of financial results meeting:Note: The original disclosure in Japanese was released on August 13, 2024 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2024 (April 1, 2024 – June 30, 2024)(1) Consolidated results of operations(Percentages represent year-on-year changes)

Profit attributable toowners of parent
Million yen% Million yen% Million yen% Million yen%
Three months ended Jun. 30, 2024
6,298
11.7
284 132.9
318 137.0
181 192.4
Three months ended Jun. 30, 2023
5,640
10.2
122
(53.3)
134 (53.6)
61 (72.4)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2024:
240 (up 169.0%)
Three months ended Jun. 30, 2023:
89 (down 70.0%)
Diluted earnings per
Earnings per share
share
Yen
Yen
Three months ended Jun. 30, 2024
7.38
Three months ended Jun. 30, 2023
2.52
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024.
Earnings per share has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31,
2024.
Net sales

Operating profit

Ordinary profit(2) Consolidated financial position

Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Jun. 30, 2024
21,082
12,391
58.5
502.78
As of Mar. 31, 2024
20,022
12,71263.2
516.08Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2024:
12,332As of Mar. 31, 2024:
12,658
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024.
Net assets per share are the amount after the stock split, as if this stock split has taken place at the beginning of the fiscal year
ended March 31, 2024.

2. Dividends
1Q-endYen-

2Q-endYen
0.00

Dividend per share
3Q-endYen-

Year-end
Yen
45.00

Fiscal year ended Mar. 31, 2024
Fiscal year ending Mar. 31, 2025
Fiscal year ending Mar. 31, 2025 (forecasts)
0.00
27.00
Note 1: Revisions to the most recently announced dividend forecast: None
Note 2: JAST conducted a 2-for-1 common stock split on April 1, 2024.
The dividend per share forecasts for the fiscal year ending March 31, 2025 are the amount after the stock split.

Total

Yen
45.00
27.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit%

Million yen%

Full year
28,570
9.1
3,150
12.9
3,200
11.8
Note: Revisions to the most recently announced consolidated earnings forecasts: None

(Percentages represent year-on-year changes)
Profit attributable
Earnings per shareto owners of parent
Million yen

2,300

%

10.2

Yen

93.77

* Notes(1) Significant changes in the scope of consolidation during the period: None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2024:

24,836,920 shares

As of Mar. 31, 2024:

24,836,920 shares

As of Mar. 31, 2024:

308,768 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2024:

308,768 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2024:

24,528,152 shares

Three months ended Jun. 30, 2023: 24,528,228 shares

Note 1: Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: None
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance described in these materials are based on assumptions judged to be valid and information available to
the Company’s management at the time the materials were prepared, but are not promises by the Company regarding future
performance. Actual results may differ materially from the forecasts. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements” on page 3
for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period7(3) Quarterly Consolidated Statement of Cash Flows

8(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Segment and Other Information

101Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter the “Group”) in the first quarter of the current fiscal year were 6,298 million yen (up11.7% year on year). Operating profit was 284 million yen (up 132.9% year on year), ordinary profit was 318 million
yen (up 137.0% year on year), and profit attributable to owners of parent was 181 million yen (up 192.4% year on year).
Business segment performance was as follows.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 13.8% from one year earlier to 3,935 million yen and operating profit increased 31.9% to 636
million yen. Sales increased as the number of large orders received was high mainly in the telecommunications,service/retail and manufacturing industries.
(Package business)
Segment sales increased 24.2% from one year earlier to 1,192 million yen and operating profit increased 61.2% to 237
million yen. There were increases in sales of end user computing (EUC: individualized contracted development of related
systems) and IT equipment involving the GAKUEN Series, a strategic university management system, and program
products for BankNeo, an information systems integration package for financial institutions.
(Medical big data business)
Segment sales increased 22.1% from one year earlier to 507 million yen and operating profit was down 53.7% to 7
million yen. Sales of highly profitable development projects, services for the utilization of data, and other services
decreased, although sales of receipt inspection services were higher than one year earlier. As a result, the profitability ofthis business was lower than one year earlier.
(Global business)
Segment sales decreased 17.8% from one year earlier to 663 million yen and operating profit decreased 81.3% to 19
million yen. The number of orders received for SAP installation support services in Malaysia was lower than one year
earlier.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses decreased 1.8% from one year earlier to 616 million yen.
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the first quarter were 16,353 million yen, up 642 million yen from the end of the previous
fiscal year. This was mainly due to an increase in cash and deposits relating to collection of accounts receivable-trade
and an increase in contract liabilities (advances received for business activities). Non-current assets were 4,729 million
yen, up 417 million yen from the end of the previous fiscal year. This was mainly due to purchase of investment securities
and an increase in deferred tax assets.
Current liabilities at the end of the first quarter were 6,631 million yen, up 1,408 million yen from the end of the previous
fiscal year. This was mainly due to increases in accrued expenses, which are included in other, and contract liabilities,
and decreases in provision for bonuses and accounts payable-trade. Non-current liabilities were 2,060 million yen, down
27 million yen from the end of the previous fiscal year.
Net assets at the end of the first quarter were 12,391 million yen, down 320 million yen from the end of the previous
fiscal year.

2Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

2) Cash flows
Cash and cash equivalents increased 2,070 million yen from 7,515 million yen at the beginning of the current fiscal year
to 9,585 million yen at the end of the first quarter of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 2,891 million yen, an increase of 572 million yen from 2,319 million
yen provided in the same period of the previous fiscal year. This increase was mainly due to increases in proceeds fromthe collection of trade receivables and from an increase in contract liabilities.
Net cash used in investing activities totaled 254 million yen, an increase of 117 million yen from 137 million yen usedin the same period of the previous fiscal year. This was mainly due to a decrease in payments of guarantee deposits andan increase in purchase of investment securities.
Net cash used in financing activities totaled 575 million yen, an increase of 170 million yen from 404 million yen usedin the same period of the previous fiscal year. This was mainly due to an increase in dividends paid.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 13, 2024 forecasts for the fiscal year ending March 31, 2025: net sales of 28,570
million yen (up 9.1% year on year), operating profit of 3,150 million yen (up 12.9% year on year), ordinary profit of
3,200 million yen (up 11.8% year on year), and profit attributable to owners of parent of 2,300 million yen (up 10.2%
year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/24(As of Mar. 31, 2024)(Thousands of yen)First quarter of FY3/25(As of Jun. 30, 2024)

AssetsCurrent assets
Cash and deposits

7,974,566

10,060,052

Notes and accounts receivable-trade, and contract assets

7,175,022

5,390,273

Merchandise and finished goods

149,333

186,531Work in process

202,606

228,931

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

5,339

3,314

212,222490,369(8,096)(5,744)

15,710,994

16,353,728

Non-current assets
Property, plant and equipment
Buildings and structures

1,395,009

1,422,244

Accumulated depreciation(673,682)(693,204)

Buildings and structures, net

721,326

729,039

142,361

142,361

Land
Other
Accumulated depreciation
Other, net

663,931674,818(462,397)(477,038)

201,534

197,779

1,065,222

1,069,180

Goodwill

267,027

258,160

Customer-related intangible assets

53,82150,704

Software161,891

224,952

Other

8,141

7,704

490,881541,522647,560

863,257

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset

887,689

878,169

Deferred tax assets

508,642669,776

Guarantee deposits

501,402496,915

Other

250,789

253,051

Allowance for doubtful accounts(40,487)(42,780)

Total investments and other assets

2,755,595

3,118,390

4,311,699

4,729,094

20,022,694

21,082,822

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

FY3/24(As of Mar. 31, 2024)(Thousands of yen)First quarter of FY3/25(As of Jun. 30, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,429,832

1,151,311

Current portion of long-term borrowings

12,48011,445

Income taxes payable

570,362

322,411

Contract liabilities

520,178

1,736,951

Provision for bonuses

1,313,103

570,465

Provision for bonuses for directors (and other officers)

133,649

27,847

Provision for loss on construction contracts

14,51010,539Other

1,228,837

2,800,452

Total current liabilities

5,222,954

6,631,424

65,96063,185

155,990

158,977

Non-current liabilities
Long-term borrowings
Provision for share awards for directors (and otherofficers)
Retirement benefit liability

1,087,676

1,083,154

Asset retirement obligations

273,506

280,798

Deferred tax liabilities

29,82427,541

Other
Total non-current liabilities
Total liabilities

474,674446,5422,087,632

2,060,199

7,310,586

8,691,624

Net assets
Shareholders’ equity
Share capital

1,535,409

1,535,409

Capital surplus

1,702,732

1,702,732

Retained earnings

9,079,131

8,701,555

Treasury shares(175,947)(175,947)

12,141,325

11,763,750

Valuation difference on available-for-sale securities

158,376

167,140

Foreign currency translation adjustment

162,373

214,927

Remeasurements of defined benefit plans

196,499

186,379

Total accumulated other comprehensive income

517,248

568,447

Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

553,53359,00012,712,107

12,391,197

20,022,694

21,082,822

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

Net sales

5,640,211

6,298,813

Cost of sales

4,280,524

4,711,881

Gross profit

1,359,686

1,586,931

Selling, general and administrative expenses

1,237,668

1,302,769

122,018

284,161Interest income

8,230

6,741

Dividend income

4,172

5,163

Rental income

791

779

Foreign exchange gains

7,078

10,294

Insurance claim income

14,700-Subsidy income

2,398

12,209Operating profit
Non-operating income

Other

10,8282,592

Total non-operating income

48,20037,779Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Other

72

428

35,510

2,164

195

657

35,7773,250

Ordinary profit

134,440

318,691

Profit before income taxes

134,440

318,691

Income taxes

71,554130,014

Profit62,886

188,676

Total non-operating expenses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

983

7,654

61,902

181,021

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)
Profit(Thousands of yen)First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

62,886

188,676

Valuation difference on available-for-sale securities

18,473

8,764

Foreign currency translation adjustment

11,20053,233Remeasurements of defined benefit plans, net of tax(3,121)(10,119)

Total other comprehensive income

26,551

51,87889,437

240,555

87,309232,220

2,128

8,334

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25(3) Quarterly Consolidated Statement of Cash FlowsFirst three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

Profit before income taxes

134,440

318,691

Depreciation

32,11941,529Amortization of software

6,183

7,198

Amortization of goodwill

5,935

11,282

Amortization of customer-related intangible assets

4,799

5,070

Increase (decrease) in provision for bonuses(708,385)(743,068)

Increase (decrease) in retirement benefit liability(12,455)(4,791)

Cash flows from operating activities

Decrease (increase) in retirement benefit asset
Interest and dividend income

(635)

9,519

(12,402)(11,904)

Interest expenses
Decrease (increase) in accounts receivable-trade, andcontract assets
Increase (decrease) in contract liabilities

72

428

1,497,910

1,813,446

1,078,813

1,216,172

Decrease (increase) in inventories(127,045)(61,497)

Increase (decrease) in trade payables(417,950)(283,262)

Other, net

1,295,333

1,071,575

Subtotal

2,776,733

3,390,388

12,12914,448Interest and dividends received
Interest paid

(73)

(428)

Income taxes paid

(469,659)(512,876)

Net cash provided by (used in) operating activities

2,319,130

2,891,531

Payments into time deposits(338,348)(338,000)

Proceeds from withdrawal of time deposits

327,401

338,720

Purchase of property, plant and equipment(11,530)(20,923)

Purchase of software(8,763)(39,120)(302)(200,297)

Cash flows from investing activities

Purchase of investment securities
Loan advances(38,252)(559)

Proceeds from collection of loans receivable

631

399

Proceeds from refund of guarantee deposits

-

6,364

Payments of guarantee deposits(83,100)(1,302)Other, net

14,686-(137,577)(254,717)

Net cash provided by (used in) investing activities

8

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25

First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)(5,531)(9,944)-(3,810)Cash flows from financing activities
Repayments of lease liabilities
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

(157)

-

(397,228)(558,597)(1,752)(2,868)(404,669)(575,219)

3,287

8,635

1,780,171

2,070,230

Cash and cash equivalents at beginning of period

6,793,050

7,515,186

Cash and cash equivalents at end of period

8,573,221

9,585,417

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/25(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
Segment information
I. First three months of FY3/24 (Apr. 1, 2023 – Jun. 30, 2023)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

Globalbusiness(Thousands of yen)
Total

Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Net sales
1. External sales
2. Inter-segment sales
and transfers

3,457,736

960,279

415,418

806,776

5,640,211-

5,640,211

27,997407-

18,511

46,917(46,917)-

Total

3,485,734

960,687

415,418

825,288

5,687,128(46,917)5,640,211

Segment profit
482,334
147,286
15,987104,134
749,743(627,725)
122,018
Notes: 1. Segment profit in the above adjustment represents corporate expenses. These corporate expenses mainly include generaland administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating profit shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First three months of FY3/25 (Apr. 1, 2024 – Jun. 30, 2024)
1. Information related to net sales and profit or loss for each reportable segment
Medical big
data business

Globalbusiness(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

DX&SI
business

Packagebusiness

1. External sales
2. Inter-segment sales
and transfers

3,935,608

1,192,380

507,274

663,550

6,298,813-

6,298,813

17,160256

2,766

11,74031,923(31,923)-

Total

3,952,768

1,192,636

510,041

675,290

6,330,736(31,923)

6,298,813

Total

Net sales

Segment profit
636,258
237,419
7,400
19,502
900,580(616,419)
284,161
Notes: 1. Segment profit in the above adjustment represents corporate expenses. These corporate expenses mainly include generaland administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating profit shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared inaccordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an
English translation.

10