News Release Dated May 16, 2019
Company: Japan System Techniques Co., Ltd.
Representative: Takeaki Hirabayashi, President and CEO
Stock code: 4323, Tokyo Stock Exchange, First Section
Contact: Noriaki Okado, Director and CFO
Tel: +81-6-4560-1000

Notice of Acquisition of AG NET PTE. LTD.
The Board of Directors of Japan System Techniques Co., Ltd. (JAST) approved a resolution on May 16,
2019 to purchase the stock of AG NET PTE. LTD. (AG NET) located in Singapore and make this company asubsidiary.
1. Reason for the acquisition
The JAST Group has been active in the ASEAN region, primarily at JAST TECHNIQUES PTE. LTD. inSingapore, JASTEC (THAILAND) CO., LTD. in Thailand and the Virtual Calibre Group in Malaysia. JASTbelieves this region is a highly attractive market because of the outlook for a continuation of rapid economic
expansion and a growing middle class that will create a large consumer market.
AG NET is an independent software organization in Singapore. Leveraging HRM (Human ResourcesManagement) cloud system developed in-house, AG NET has since its establishment in 2006 served over40,000 users in about 700 organizations, centering on Singapore and the ASEAN region. As a top-classnational solutions vendor in this field, AG NET maintains a strong profit structure.
This inclusion of AG NET in the JAST Group will add new HRM products currently not covered in ourGroup’s brand lineup, enabling multi-directional coverage of personnel, vacation requests, expense
reimbursement workflows, salary computations, telework support, and employee performance management.
We believe that adding AG NET to the JAST Group will strengthen our business foundation not only in
Singapore but throughout the ASEAN region and lead to business expansion of our subsidiaries throughout
the ASEAN region, thereby further enhancing the Group’s growth potential. Due to this outlook, the decision
was made to acquire AG NET.
2. Profile of AG NET
(1)
(2)
(3)
(4)
(5)
(6)
(7)

Name
Representative
Address
Established
Main business
Capital stock
Outstanding shares(8)

Major shareholders(9)

Website(10)

Relationships between
JAST and AG NET

AG NET PTE. LTD.
Koh Sin Guan, Director
57 Ubi Avenue 1 #05-05, Ubi Centre Singapore 408936
March 15, 2006
Software development and consultation services
102,000 Singapore dollars
102,000 shares
Koh Sin Guan: 51,000 shares (50.0%)
Soh Choon Lin: 51,000 shares (50.0%)
https://www.aghrm.com/
CapitalNot applicable.
Personnel
Not applicable.
Business
Not applicable.

13. Results of operations and financial conditions of AG NET for the last three years
Fiscal years ended

Dec. 2016

Net assets

Dec. 2017(Thousands of Singapore dollar)
Dec. 2018

867

1,295

1,560

Total assets

1,423

1,896

2,338

Net sales

1,507

1,668

1,579

Operating income

427

748

611

Ordinary income

453

756

624

Profit441740564* The above figures include results of operations and financial conditions of AGHRM Malaysia Sdn. Bhd., asubsidiary of AG NET.
4. Number of shares to be acquired, acquisition cost and status of ownership before and after acquisition(1) Share ownership before acquisition(2) Number of shares to be acquired(3) Acquisition cost, etc. (estimated amount)(4) Share ownership after acquisition

0 shares(No. of voting rights: 0)(Ownership ratio: 0%)102,000 shares(No. of voting rights: 102,000)(100% of total shares outstanding)Acquisition cost:
500 million yen
Associated expenses:30 million yen
Total:
530 million yen
102,000 shares(No. of voting rights: 102,000)(Ownership ratio: 100%)

5. Schedule(1) Resolution of the Board of Directors(2) Signing of stock acquisition agreement(3) Stock acquisition date

May 16, 2019
May 16, 2019
May 31, 2019 (tentative)

6. Outlook
At this time, the acquisition of AG NET is expected to have only a negligible effect on the JAST’s
consolidated results of operations in the fiscal year ending on March 31, 2020. An announcement will bemade promptly if there is a need to revise the fiscal year forecasts.

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