February 10, 2023

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2023
(Nine Months Ended December 31, 2022)[Japanese GAAP]
Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange4323
URL: https://www.jast.jp
Takeaki Hirabayashi, President and CEO
Toshinori Hamada, General Manager of Planning & Administration Division
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
February 13, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on February 10, 2023 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2022
(April 1, 2022 – December 31, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Profit attributable toowners of parent
Million yen
%
1,167
27.7
914
-

Ordinary income

Million yen%
Million yen%
Million yen%
Nine months ended Dec. 31, 2022
16,635
11.0
1,559
20.3
1,605
20.6
Nine months ended Dec. 31, 2021
14,9851,297
1,331
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2022: 1,363 (up 51.3%)
Nine months ended Dec. 31, 2021:
901 (-%)
Diluted net income per
Net income per share
share
Yen
Yen
Nine months ended Dec. 31, 2022
95.16
Nine months ended Dec. 31, 2021
78.07
Notes: 1. JAST conducted a 2-for-1 common stock split on October 1, 2022. Net income per share has been calculated as if thisstock split has taken place at the beginning of the fiscal year ended March 31, 2022.
2. Beginning with the first quarter of the fiscal year ended March 31, 2022, JAST has applied Accounting Standard for
Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures forthe nine months ended December 31, 2021 incorporate this accounting standard and comparisons with the previous fiscal
year are omitted.

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Dec. 31, 2022
15,610
10,311
65.7
836.49As of Mar. 31, 2022
15,5399,194
58.9
746.86
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2022:
10,258
As of Mar. 31, 2022:
9,159
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. 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, 2022.

2. Dividends
1Q-endYen-

2Q-end
Yen
0.00
0.00

Dividend per share
3Q-endYen-

Year-end
Yen
40.00

Total

Yen
Fiscal year ended Mar. 31, 2022
40.00
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023 (forecasts)
32.00
32.00
Notes: 1. Revisions to the most recently announced dividend forecast: Yes
Breakdown of the year-end dividend for the fiscal year ending March 31, 2023:
Commemorative dividend: 5.00 yen; Ordinary dividend: 27.00 yen
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. The dividend per share forecasts for the fiscal year
ending March 31, 2023 are the amount after the stock split.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Million yen

Operating income%

Million yen(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent

Ordinary income%

Million yen%

Million yen%

Yen

Full year
22,400
4.7
2,120
6.0
2,160
5.2
1,370
3.0
111.70Notes: 1. Revisions to the most recently announced consolidated earnings forecasts: None
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. The net income share forecast is the amount after thestock split.

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): 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 Dec. 31, 2022:

12,418,460 shares

As of Mar. 31, 2022:

12,418,460 shares

As of Mar. 31, 2022:

153,932 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2022:

154,268 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2022:

12,264,324 shares

Nine months ended Dec. 31, 2021: 11,708,625 shares

Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. The number of shares outstanding at the end of theperiod has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31,
2022.

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to theCompany’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 Third Quarter of FY3/23

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 Nine-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-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

Additional Information

10

Segment and Other Information

11

Business Combinations

121

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

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 nine months of the current fiscal year were 16,635 million
yen (up 11.0% year on year). Operating income was 1,559 million yen (up 20.3% year on year), ordinary income was
1,605 million yen (up 20.6% year on year), and profit attributable to owners of parent was 1,167 million yen (up 27.7%
year on year).
Business segment performance was as follows.
In the first quarter of the current fiscal year, JAST revised its reportable segments and the method used for calculating
segment profit and loss. Comparisons and analysis of results of operations for the first nine months are based on therevised segments and profit and loss calculation method.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 10.6% from one year earlier to 10,392 million yen and the operating income increased 33.0%
to 1,614 million yen. The number of large orders received directly from existing and new customers was higher than
one year earlier. As a result, the overall profitability of the business increased.
(Package business)
Segment sales decreased 0.9% from one year earlier to 2,996 million yen and the operating income was down 23.6% to
736 million yen. Sales of program products for BankNeo, an information systems integration package for financial
institutions, were higher. However, there was a decline in sales, installation and support services, and other activities
involving the GAKUEN Series, a strategic university management system consisting of GAKUEN RX and GAKUENUNIVERSAL PASSPORT RX. Orders in the package business are firm.
(Medical big data business)
Segment sales increased 4.2% from one year earlier to 1,185 million yen and the operating income was down 18.8% to
171 million yen. Earnings decreased primarily because of the large volume of sales of highly profitable analysis andother services during the first nine months of the previous fiscal year. However, orders in this business as a wholeremained firm. The performance of this business during the first nine months of the current fiscal year is ahead the plan.
We expect fiscal year sales to be solid.
(Global business)
Sales increased 44.5% from one year earlier to 2,060 million yen and the operating income increased 606.1% to 277
million yen. This was primarily the result of the growth in Malaysia of support services at new and existing customers
for the use of SAP software and the positive effect of foreign exchange rate movements on the performance of thisbusiness, mainly at subsidiaries outside Japan with strong sales and earnings.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 9.6% from one year earlier to 1,239 million yen mainly
because of higher personnel expenses as more people were hired.
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the third quarter were 12,661 million yen, up 272 million yen from the end of the previous
fiscal year. This was mainly due to increases in cash and deposits due to collection of accounts receivable-trade andhigher contract liabilities. Non-current assets were 2,949 million yen, down 201 million yen from the end of theprevious fiscal year.
Current liabilities at the end of the third quarter were 3,520 million yen, down 1,100 million yen from the end of theprevious fiscal year. This was mainly due to decreases in accrued consumption taxes, which is included in other, andincome taxes payable. Non-current liabilities were 1,779 million yen, up 54 million yen from the end of the previous
fiscal year.
2Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

Net assets at the end of the third quarter were 10,311 million yen, up 1,117 million yen from the end of the previous
fiscal year.
2) Cash flows
Cash and cash equivalents increased 243 million yen from 6,463 million yen at the beginning of the current fiscal year
to 6,707 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 482 million yen, an increase of 130 million yen from 351 million yen
provided in the same period of the previous fiscal year. This was mainly due to an increase in proceeds from thecollection of trade receivables.
Net cash used in investing activities totaled 72 million yen, an increase of 15 million yen from 88 million yen used in
the same period of the previous fiscal year. This was due to a decrease in loan advances.
Net cash used in financing activities totaled 275 million yen, a decrease of 790 million yen from 514 million yen
provided in the same period of the previous fiscal year. This was due to decreases in proceeds from disposal of treasury
shares and proceeds from issuance of shares.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 13, 2022 forecasts for the fiscal year ending March 31, 2023: net sales of 22,400
million yen (up 4.7% year on year), operating income of 2,120 million yen (up 6.0% year on year), ordinary income of
2,160 million yen (up 5.2% year on year), and profit attributable to owners of parent of 1,370 million yen (up 3.0%
year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

AssetsCurrent assets
Cash and deposits

6,464,852

6,708,623

Notes and accounts receivable-trade, and contract assets

5,533,330

5,300,279

Merchandise and finished goods

147,538

205,250

Work in process

99,301

146,151

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

5,761

7,176

144,293304,899(5,875)(10,830)

12,389,203

12,661,550

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

842,406

856,825

Accumulated depreciation(548,763)(569,316)

Buildings and structures, net

293,643

287,508

142,361

142,361

Land
Other
Accumulated depreciation
Other, net

565,150

608,855(454,587)(492,391)

110,562

116,464546,567

546,334

Goodwill

102,785

98,006

Customer-related assets

83,113

79,250Software80,90976,509

Other

7,626

7,626

274,435

261,393

Investment securities

542,531624,093Retirement benefit asset

705,144

707,584

Deferred tax assets

536,929

283,883

Guarantee deposits

457,167

435,948

Other

89,93496,739Allowance for doubtful accounts(1,925)(6,689)Total investments and other assets

2,329,781

2,141,558

3,150,785

2,949,286

15,539,989

15,610,836

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,380,056

1,002,146

Short-term borrowings

8,518

-

Income taxes payable

563,468

81,082Contract liabilities

430,851

896,029

Provision for bonuses

1,194,536

465,188

Provision for bonuses for directors (and other officers)

77,53054,339Provision for loss on construction contracts

52,96049,214

Other
Total current liabilities
Non-current liabilities
Provision for share awards for directors (and otherofficers)
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Deferred tax liabilities
Other

913,152

972,093

4,621,074

3,520,095

120,728

137,381

6,646-

1,058,791

1,084,353

24,65530,464

513,608

526,869

1,724,430

1,779,068

6,345,505

5,299,164

Share capital

1,535,409

1,535,409

Capital surplus

1,703,991

1,702,732

Retained earnings

5,865,484

6,784,313

Treasury shares(175,264)(175,703)

Total shareholders’ equity

8,929,621

9,846,752

121,768

142,830

Foreign currency translation adjustment(2,240)173,232

Remeasurements of defined benefit plans

110,706

96,032

Total accumulated other comprehensive income

230,234

412,095

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

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

534,62852,825

9,194,483

10,311,672

15,539,989

15,610,836

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Thousands of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

Net sales

14,985,989

16,635,219

Cost of sales

11,068,084

12,188,064

Gross profit

3,917,904

4,447,155

Selling, general and administrative expenses

2,620,693

2,887,203

Operating income

1,297,211

1,559,952

Interest income

9,349

12,101Dividend income

6,391

8,937

Rental income

1,904

2,314

Foreign exchange gains

4,063

12,094

Subsidy income

11,116

10,319

Other

9,441

5,058

Total non-operating income

42,26650,825901

377

Non-operating income

Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts

-

4,185

Share acquisition rights issuance costs

5,148

-

Other

1,970

918

Total non-operating expenses

8,020

5,481

Ordinary income

1,331,457

1,605,296

Profit before income taxes

1,331,457

1,605,296

Income taxes

412,562

427,866

Profit918,894

1,177,429

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

6

4,764

10,325914,130

1,167,103

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Thousands of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

918,894

1,177,429(46,397)

21,061

Foreign currency translation adjustment

46,903179,947

Remeasurements of defined benefit plans, net of tax(17,855)(14,673)

Total other comprehensive income(17,349)

186,335

901,545

1,363,764

897,506

1,348,886

4,038

14,878

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

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 Third Quarter of FY3/23(3) Quarterly Consolidated Statement of Cash FlowsFirst nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Thousands of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

1,331,457

1,605,296

Depreciation

81,95883,335

Amortization of software

17,603

18,849Amortization of goodwill

23,394

18,376

Amortization of customer-related assets

14,733

14,859Cash flows from operating activities
Profit before income taxes

Amortization of trademark
Amortization of technology assets
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

707

-

1,255

-

(405,471)(731,123)

15,81922,057

Decrease (increase) in retirement benefit asset(2,607)(2,440)Interest and dividend income(15,741)(21,039)

Interest expenses

901

377

Decrease (increase) in trade receivables and contract assets(151,182)

323,483

Increase (decrease) in contract liabilities

416,870462,097

Decrease (increase) in inventories

111,652(105,976)

Increase (decrease) in trade payables(153,652)(397,433)

Other, net(215,366)(140,567)

Subtotal

1,072,335

1,150,152

16,64422,988

(808)

(376)

Income taxes paid

(736,576)(690,485)

Net cash provided by (used in) operating activities

351,595

482,279

Interest and dividends received
Interest paid

8

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Thousands of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(41,577)(38,209)

6,283

1,080

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of software(29,971)(9,491)

Purchase of investment securities(1,229)(48,418)

Proceeds from sale of investment securities

22,601-

Loan advances(47,279)(3,491)

Proceeds from collection of loans receivable

3,066

5,071

Proceeds from refund of guarantee deposits

821

25,035

Payments of guarantee deposits(933)(2,659)Proceeds from sale of membership

690-

Other, net(712)(1,650)(88,241)(72,733)

Net increase (decrease) in short-term borrowings(382,710)(9,047)

Repayments of lease liabilities(20,438)(20,011)

Repayments of long-term borrowings(2,800)-

Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares

914,768

-

-

3,740

(89,957)(439)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from disposal of treasury shares

248,042-Dividends paid

(152,028)(248,274)

Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-(1,680)514,875(275,712)

24,354

109,804

Net increase (decrease) in cash and cash equivalents

802,583

243,638

Cash and cash equivalents at beginning of period

4,853,695

6,463,823

Cash and cash equivalents at end of period

5,656,279

6,707,462

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on June 26, 2018 terminated the
directors’ retirement benefit system and established a Board Benefit Trust (BBT) for the purpose of increasing
motivation for contributing to the medium to long-term growth of sales and earnings and an increase in corporate value.
The BBT plan clearly links the compensation of directors with the JAST stock price. Furthermore, directors share withshareholders the benefits of a higher stock price as well as the risk of a lower stock price.
1) Overview
This is a stock compensation plan in which directors receive stock compensation through a BBT. The BBT acquires
JAST stock using cash contributions from JAST as the source of funds. Directors (excluding external directors; sameafterward unless indicated otherwise) receive stock compensation or a monetary amount equivalent to the market valueof the stock in lieu of stock compensation in accordance with the rules on the stock compensation plan for directors. In
principle, a director becomes eligible for stock compensation only after the individual is no longer a JAST director.
2) JAST stock held by the BBT
The book value (excluding associated expenses) of JAST stock held by the BBT is shown as treasury shares in the net
assets section of the consolidated balance sheet. The BBT held 74,600 shares of JAST with a book value of 171,700
thousand yen as of the end of the previous fiscal year, and the BBT held 74,600 shares with a book value of 171,700
thousand yen as of the end of the third quarter of the current fiscal year.
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. The number of shares has been calculated asif this stock split has taken place at the beginning of the fiscal year ended March 31, 2022.

10

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

Segment and Other Information
Segment information
I. First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

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

9,397,811

3,024,645

1,137,571

51,178

2,691

-

Total

9,448,990

3,027,337

1,137,571

Globalbusiness

Total

Adjustment(Note 1)(Thousands of yen)Amounts shown onquarterly consolidated
statement of income(Note 2)

Net sales
1,425,960 14,985,989-

14,985,989

65,945(65,945)-

1,438,035 15,051,934(65,945)

14,985,989

12,075

Segment profit
1,214,177
964,738
210,635
39,264 2,428,814 (1,131,603)
1,297,211
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating loss 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 nine months of FY3/23 (Apr. 1, 2022 – Dec. 31, 2022)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

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

10,392,405

2,996,685

1,185,412

65,94642,200-Total

10,458,352

3,038,886

1,185,412

Globalbusiness

Total

Adjustment(Note 1)(Thousands of yen)Amounts shown onquarterly consolidated
statement of income(Note 2)

Net sales
2,060,715 16,635,219-

16,635,219

143,446(143,446)-

2,096,015 16,778,665(143,446)

16,635,219

35,299Segment profit
1,614,877
736,708
171,071
277,242 2,799,900 (1,239,948)
1,559,952
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating income 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.
3. Information related to revisions for reportable segments(Revisions to reportable segments)
During the past several years, the scale and composition of business operations of the JAST Group as well as the types of services
provided have changed significantly along with dramatic shifts in the social and business environment. In response to these changes,
the JAST Group started using new business segments in the first quarter of the fiscal year ending in March 2023. The purposes of
the new segments are to facilitate more accurate and thorough management and decision-making concerning growth strategies andother items and to disclose information to investors in a more suitable format. In previous fiscal years, the reportable segments were
the software business, GAKUEN business, system sales business and medical big data business. The new segments are the digitaltransformation and system integration (DX&SI) business, package business, medical big data business and global business.
The former software business has been renamed the DX&SI business for the purpose of clearly expressing the commitment of thisbusiness to providing even more added value and creating seeds for new businesses. This business aims to continue the steady
growth of system integration, currently the largest source of JAST’s earnings, while shifting emphasis to co-creation digitaltransformation activities. The goal of these activities with customers is to use digital technologies for business process innovationand for making customers and the JAST Group more competitive. The DX&SI business includes former system sales business. The
former GAKUEN business has been renamed the package business because this business uses package systems with JAST brands toprovide comprehensive digital transformation services and aim for growth. The package business includes the BankNeo financial

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Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/23

institution information systems integration package that was in the software business in prior years. The activities of the global
business were included in the former software business in prior years. Beginning with this fiscal year, global operations are aseparate business segment to more accurately provide information about the distinctive characteristics and growth strategies of the
JAST Group’s businesses, such as solutions and wide-area activities in the ASEAN region and China.
Segment information for the first nine months of FY3/22 is based on the new reportable segments.
(Change in method for calculating segment profit and loss)
In recent years, the scale and characteristics of the business activities of the JAST Group have changed and the importance ofproperly managing these activities has increased. To more appropriately evaluate the performance of the group’s reportable segments,
the allocation of expenses for head office functions has been reexamined. In prior years, general and administrative expenses that
could not be allocated to a reportable segment were allocated in accordance with expense allocation standards. Beginning with thefirst quarter of the current fiscal year, these expenses are instead recognized as corporate expenses that are part of the adjustment tosegment profit.
Segment profit and loss for the first nine months of FY3/22 is based on the new calculation method.

Business Combinations
This information is omitted due to immateriality.

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.

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