Tokyo Stock Exchange Prime Market Stock code: 4323
Held on: December 8th, 2023

FY2024.3
Financial Results Briefing
for the 2nd Quarter
Japan System Techniques Co., Ltd.

©2023 Japan System Techniques Co., Ltd.

Contents

Ⅰ．FY2024.3 2Q Summary
Ⅱ．Performance Overview
Ⅲ．Forecasts for the current FY and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

1

Ⅰ．FY2024.3 2Q Summary

１．Consolidated results of operations
2022.3 2Q

2023.3 2Q

10,042

11,004

2,719

2,927

992

1,003

1,004

1,037

686

737

Comparison with the Same Period of the Previous Year2024.3 2Q

Accumulated total Accumulated total Accumulated total

Net sales
Gross profit
Gross profit rate（％）

Operating income
Operating margin（％）

Ordinary income

Profit attributable to owners ofparentTotal assets
Net assets

Equity ratio（％）
Free cash flow

Cash and cash equivalents at
the end of period

Stock price (yen, Highest priceduring the period)*

Market capitalization (billion

yen, Highest price during the period)*

Number of
employees(person)

27.1

9.9

2022.326.6

9.2

2023.3End of period

End of period

15,53917,413

59.0

61.8

9,194

1,082

10,816532

12,132
3,257
26.9
1,003
8.3
1,008
651
18,545
11,116
59.7
699
7,112

YoY

+10.3%+11.3%
+0.3
▲0.0%
▲0.9
▲2.7%
▲11.7%

2024.3 2Q

End of 2Q

（M¥）

YoY

+6.6%
+2.8%
▲2.1
+31.4%
+4.7

6,463

6,793

1,532

1,804

2,758

95

224

342

+52.3%

1,448

1,621

1,917

+18.3%+52.5%

Performance• Sales increased by 10.3% year-on-year• Recurring profit fell by 2.7% year-on-year• All business segments performed better than in
the same period of the previous year
• Each profit indicator decreased year-on-year due
to upfront investment in line with the original plan

Financial condition• Due to stable profits and good liquidity on hand,continued financial stability• Continuously positive free cash flowValuation• Share price and market capitalization remain in thehighest range since listingNumber of employees• Number of new graduates hired fulfilled as initiallyplanned• Demand for personnel, mainly experienced
personnel, increased due to brisk orders*Highest share price and market capitalization observed at: closing price on 9 Dec 2021 for FY2022.3, closing price on 30 Jan 2023 for FY2023.3, closing price on 4 Dec 2023 for 2Q of FY2024.3.

©2023 Japan System Techniques Co., Ltd.

2

Ⅰ．FY2024.3 2Q Summary

２．Digest by Segment（１）Situation of each Segment
Segment

Business Conditions and Factors of Increase/Decrease
2024.3• Expansion of large prime projects for new and existingcustomers• Improve profitability through stable project operations

Cumulative 2Q

PackageBusiness• GAKUEN business saw a year-on-year increase in PP sales andimplementation support services• In the BankNeo business, sales of PP sales fell slightly

Cumulative 2Q

Medical big
data business• Highly profitable business such as Analytical services andinsurer business support services etc. increased revenues

Cumulative 2Q

Globalbusiness• Increased orders in SAP*1 business in Malaysia• Decrease in Thailand SI development projects and ERP
packages

Cumulative 2Q＜Net sales＞（M¥）

12,00011,004
1,363
718
2,051

9,000

12,132
1,661
917
2,255

6,000
6,870

3,000
0

2023.3 2Q

DX&SI business

7,299

2024.3 2Q

Package business

（M¥）

2,100
1,400

700
0
▲700
▲1,400

YoY

2024.3
YoY

2024.3
YoY

2024.3YoY＜Operating income＞
1,003
184
555

OperatingincomeNet sales

DX&SI
business

70

1,044
▲851

2023.3 2Q

1,003
204 103
601
1,150▲1,0562024.3 2Q

Medical big data business*Trademarks of other companies' solutions are listed under “Trademarks” at the end of this document.

（M¥）

7,299

Operatingincome rate

1,150

15.8%

601

26.7%

+6.2%

+10.2%

+9.9%

+8.3%

103

11.2%

+27.7％+47.1%

+1.5

1,661

204

12.3%

2,255

917

+21.9%+10.9%+0.6▲0.4（％）＜Operating income rate＞

30.0

▲1.2

27.1

26.7

15.0

15.2
13.5

10.0

9.7

15.8
12.3
11.2

25.0
20.0

5.0

2023.3 2Q

Global business2024.3 2Q

Common to all©2023 Japan System Techniques Co., Ltd.

3

Ⅰ．FY2024.3 2Q Summary

２． Digest by Segment （２） Difference from the Same Period of the Previous Year (First Half of the Year)（M¥）•

In comparison with the same period of the previous year, revenue in each business segment grew by a total of +205 million yen.

•Company-wide SG&A expenses increased due to upfront investments. This was due to enhanced training and recruitment
activities, office expansion and strengthening of IT infrastructure in line with the increase in the number of employees.

•

Upfront investment in SG&A expenses converged in the first half of the year.

Difference from the same period of the previous year

©2023 Japan System Techniques Co., Ltd.

4

Ⅰ．FY2024.3 2Q Summary

３．Topics（After FY2023.3）

Business Activities• Released new product in the GAKUEN series, “GAKUEN RX Scholarship” [9 May 2023]• Released four new functions in the “iBss”, an insurer operations support system [14 April 2023]
Shareholder Returns/ Corporate Value• Market capitalization reaches 34.2 billion yen, the highest since listing (Closing price 4th December) [4 December 2023]• Determined a shareholder benefit scheme and a 50th anniversary benefit to increase the attractiveness of investment in the company's shares forindividual investors [22 November 2023]

Alliance• Reached a basic agreement on the acquisition of 100% of the shares of K-SHIP Co., Ltd., an industry leader in medical receipt inspection and health guidance [30November 2023]• Strengthening cooperation with NTT WEST CORPORATION for the promotion of university DX [5 October 2023]• Started system collaboration between “SMART BankNeo” and the business digitalization tool “POWER EGG” to promote the strengthening of sales capabilities [3 April
2023]

Non-financials/ others• Office expansion and renewal of Osaka head office to improve office productivity, personnel exchange and engagement [10October 2023]• Obtained certification as a 'DX Certified Business Operator' from the Ministry of Economy, Trade and Industry [10 May 2023]*Trademarks of other companies' solutions are listed under “Trademarks” at the end of this document.

©2023 Japan System Techniques Co., Ltd.

5

Contents

Ⅰ．FY2024.3 2Q Summary
Ⅱ．Performance Overview
Ⅲ．Forecasts for the current FY and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

6

Ⅱ．Performance Overview

１．Consolidated Financial Results (1) Consolidated Statements of Income（M¥）

2022.3First
half

Secondhalf2023.3
Full
year

First
half

Secondhalf2024.3Full
year

Net sales

10,042

11,297

21,33911,004

12,51523,519

Cost of sales

7,323

8,388

15,711

8,076

9,067

17,143Gross profit

2,719

2,969

5,688

2,927

3,448

6,375

27.1

26.3

26.7

26.6

27.6

27.2

1,726

1,961

3,687

1,924

2,066

3,990

160

276

436

199

270

469

992

1,008

2,000

1,003

1,382

2,385

9.9

9.0

9.4

9.2

11.1

10.2

1,004

1,048

2,052

1,037

1,413

2,450

10.0

9.3

9.7

9.5

11.3

10.5

686

644

1,330

737

1,035

1,772

6.9

5.8

6.3

6.7

8.3

7.6

706

636

1,342

908

960

1,868

Gross profit rate（％）

Selling, general andadministrative expenses
of which R&D expenses

Operating income
Operating margin（％）

Ordinary income
Ordinary income rate（％）

Profit attributable to noncontrolling interests
Net income rate（％）

Comprehensive income

First
half

Compared tothe previous
period2024.3
initialforecast
Full
year

12,132
8,875
3,257
26.9

+10.3%+9.9%+11.3%+0.3+17.1%-

120▲39.7％

▲0.0％
▲0.9
▲2.8％
▲1.1

-

2,540
10.0
2,600
6.1

651

▲11.7%

1,880▲1.3▲23.1%

7.4
-

2,253
1,003
8.4
1,008
8.4
5.4
699

25,300-©2023 Japan System Techniques Co., Ltd.

7

Ⅱ．Performance Overview

１． Consolidated Financial Results (2) Consolidated Balance Sheets（M¥）
2021.32022.3End ofperiodTotal assets
Total current assets
Total property, plant and equipment
Total intangible assets
Total investments and other assets

Total liabilities and net assets
Total liabilities
Total current liabilities
Total non-current liabilities
Total net assets
Total shareholder’s equity
Share capital
Capital surplus
Retained earnings
Treasury shares

Total accumulated othercomprehensive income
Share acquisition rights

Non-controlling interests

2023.3End ofperiod2024.3End ofperiodEnd of 2Q

12,861

15,53917,413

9,696

12,38914,187

378

274

242

542

546

631

2,243

2,329

2,352

12,861

15,53917,413

6,011

6,345

6,597

1,623

1,724

1,893

4,388
6,850
6,592
1,076
1,128
4,605

4,621

4,703

9,194

10,816

1,535

1,535

8,929
1,703
5,865

10,451

1,702
7,389

▲218

▲175

▲175

220

230

316

5

-

-

31

34

47

18,545
14,959
858
264
2,462
18,545
7,428
5,506
1,922
11,116
10,705
1,535
1,702
7,643
▲175
363
46

Composition
ratio

100.0%
80.7%
4.6%
1.4%
13.3%
100.0%
40.1%
29.7%
10.4%
59.9%
57.7%
8.3%
9.2%
41.2%
▲0.9%
2.0%
0.2%

Compared to previous YE
Difference+1,132
+772
+227
+22
+110
+1,132
+831
+803
+29
+300
+254
+0
+0
+254
+0
+47
▲1

Percentagechange+6.6%+5.5%+36.0%
+9.1%
+4.7%
+6.6%
+12.6%+17.1%
+1.6%
+2.8%
+2.5%
+0.0%
+0.0%
+3.5%
+0.0%
+14.9%▲2.2%©2023 Japan System Techniques Co., Ltd.

8

Ⅱ．Performance Overview

１． Consolidated Financial Results (3) Consolidated Cash Flow （M¥）
2019.32020.32021.32022.32023.3Full year Full year Full year Full year Full year
1,342

Cash flows from operating activities
Cash flows from investing activities

Cash and cash equivalents at the endof period

3,000

▲527

▲110

1,157
4,204

279

4,204

3,908

1,000
500
0

1,073
▲541

2,218

▲80

1,082

532

▲185

▲1,247

486

▲280

3,908

4,853

6,463

6,793

87

6,463

2,500
1,500

1,162

929
▲219
710
▲409
7,112

＜Consolidated
Cash Flow＞＜連結キャッシュフロー推移＞

（M¥）

2,000

2,131

▲1,063

Free cash flow
Cash flows from financing activities

417

2024.3

2Q cumulative
total

279

▲500

（M¥）

6,793

7,112

7,500
6,250

4,853

5,000

2,218

2,500

▲110

3,750
1,082

532

710

1,250
0
▲1,250▲1,000▲2,500▲1,500▲3,750

Left-hand scale：
Right-hand scale：2019.3FY

2020.3FY

2021.3FY

Cash flows from operating activities
Cash flows from financing activities
Cash and cash equivalents at the end of period

2022.3FY

2023.3FY

Cash flows from investing activities
Free cash flows

2024.3.2Q©2023 Japan System Techniques Co., Ltd.

9

Ⅱ．Performance Overview

１． Consolidated Results (4) Sales by Business Segment（M¥）

14,00012,00010,000

8,000

6,000

10,042
8,610
501
518

1,563

8,042
618
534

897

740

2,131

2,000

0

2020.3.2Q

1,363
718
2,051

1,661
917
2,255

1,625

4,000

6,028

11,004

12,132

5,264

2021.3.2Q

DX&SI business

Package business

6,273

2022.3.2Q

Medical big data businessNote: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).

6,870

7,299

2023.3.2Q

2024.3.2Q

Global business©2023 Japan System Techniques Co., Ltd.

10

Ⅱ．Performance Overview

１． Consolidated Results (5) Operating Income by Business Segment

（M¥）

2,500

1,500
1,000
500

130

190

41

647

786

23

33
367

327

0
▲500

1,003

992

2,000

443

▲130

▲14

14

184
70

555

1,044

825

▲696

▲806

▲763

▲851

2020.3.2Q

2021.3.2Q

2022.3.2Q

2023.3.2Q

1,003
204
103

601

1,150

▲1,056▲1,000▲1,500

DX&SI business

Medical big data business

Consolidated Eliminations and Corporate SG&A

Note: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).

2024.3.2Q

Package business
Global business©2023 Japan System Techniques Co., Ltd.

11

Ⅱ．Performance Overview

１． Consolidated Financial Results (6) Consolidated Number of Employees（person）

1,917

2,000
1,800

1,687

1,600
1,400
1,200
1,000
800
600
400
200
0

1,164
87

247
83

118

1,448

1,320

698

107

587

106

418

332

107

95

88

206

187

200

589

607

628

669

2020.3 FY

2021.3 FY

2022.3 FY

2023.3 FY

158

DX&SI business

Package business

Medical big data business*Note: Figures at the top of the graph are the number of consolidated employees.

127

Global businessCommon to all

111
230

751

2024.3.2Q©2023 Japan System Techniques Co., Ltd.

12

Ⅱ．Performance Overview

２．Stock Price（１）JAST’s Stock Price and Volume（Thousands of shares）（¥）

Decided to introduce
a shareholder benefit scheme

3,000
2,700

Stock Split
1 share → 2 sharesFirst series of stock acquisition rights
Completed exercise of the rights

2,400
2,100

Listed on the First Sectionof the Tokyo Stock Exchange

Off-floor trading

1,800

COVID-19

Determined Osaka World Expo
to be held

1,500
UK determined
withdrawing from EU

1,200Consumption tax 10%

3,600
3,000

Prime Market
Conformity withlisting maintenance standards

2,400

Formation of
Kishida Cabinet

COVID-19
Changed to
1,800
Category 5 Infectious Disease

Consumption tax 8%

900

4,200

Transition to
Tokyo Stock Exchange Prime Market

Second series ofstock acquisition rights
Completed exercise of the rights

4,800

1,200

600 The second Abe Cabinet

600

300
0
Apr-12

Apr-13Apr-14Apr-15

Apr-16

Apr-17

Apr-18JAST Stock price（Left-hand scale）

Stock price information(Closing price on 4 December 2023)

Stock price¥2,758EPS

Apr-19Apr-20

Apr-21

Apr-22

Apr-230

JAST Volume（Right-hand scale）¥153.29*Share prices prior to the stock split (effective date: 1 October 2022) are retrospectively adjusted.

PER

18.22

PBR

3.09

©2023 Japan System Techniques Co., Ltd.

13

Ⅱ．Performance Overview

２．Stock Price（２）JAST’s Stock Price and Correlation of the Nikkei Stock Average（¥）

Decided to introduce
a shareholder benefit scheme

3,000
2,700

Stock Split
1 share → 2 sharesFirst series of stock acquisition rights
Completed exercise of the rights

2,400
2,100

Listed on the First Sectionof the Tokyo Stock Exchange

Off-floor trading

1,800

COVID-19

Determined Osaka World Expo
to be held

1,500

UK determined
withdrawing from EU

1,200Consumption tax 10％

30,000Prime Market
Conformity
with listing maintenance standards

Formation of
Kishida Cabinet

Consumption tax 8％

900

34,000Transition to
Tokyo Stock Exchange Prime Market

Second series ofstock acquisition rights
Completed exercise of the rights（¥）
38,00026,00022,000COVID-19
Changed to
18,000Category 5 Infectious Disease

14,000600 The second Abe Cabinet

10,000300
0Apr-12

Apr-13Apr-14Apr-15

Apr-16

Apr-17

Apr-18JAST stock price (Left-hand scale)
Stock price information(Closing price on 4 December 2023)

Stock price¥2,758Apr-19Apr-20

Apr-21

Apr-22

Apr-23

6,000

Nikkei Average Stock (Right-hand scale)

EPS*Share prices prior to the stock split (effective date: 1 October 2022) are retrospectively adjusted.

¥153.29

PER

18.22

PBR

3.09

©2023 Japan System Techniques Co., Ltd.

14

Ⅱ．Performance Overview

３． Performance by Category (1) Package Business GAKUEN Sales by Category

（M¥）

1,916

2,000

1,717

1,800

5%

1,600
1,400
1,200
1,000
800
600
400
200
0

1,333
5%

32%

1,265

20%

1,660
3%

21%

4%

29%

24%

6%

25%

16%
32%
15%

18%

19%

18%

19%

11%

11%

17%

19%

2020.3.2Q

2021.3.2Q

16%
12%
22%
2022.3.2Q

18%

2023.3.2Q

Note: Figures at the top of the graph are total sales of GAKUEN business.

Operation
service

Content• Recurring revenue model

EUC
development

Individual contracted
development associated withpackage sales• High unit price SE• High profit

Purchase andsales

Purchase and sales of
hardware and third party’s
products• Enhancement of productlineup through OEM

Packagemaintenance

Maintenance contracts for
packaged products• Stock revenue

Implementation
service

Consulting for package
product implementation• Moves in tandem withpackage sales andrevenue• Very high unit priceSales of packaged products• Development investment
in advance• Extremely high profitability

23%
Packagesales

2024.3.2Q

FeatureSystem operation support

15%

8%
19%

Legend©2023 Japan System Techniques Co., Ltd.

15

Ⅱ．Performance Overview

３． Performance by Category (2) Sales by End User’s Industry（M¥）

13,00010,03910,400

8,607
7,800

7%
2%

23%
5,200

2,600

0

15%
27%

8,039
6%
3%

23%
15%
25%

14%

17%

11%

12%

2020.3.2Q
2021.3.2Q
Telecommunications
Finance, Insurance, Securities

12,1293%
5%

11,003
5%
3%

7%
3%

20%

21%

22%

17%

14%

17%
30%

23%
15%

13%

13%

14%

2022.3.2Q
Service, Distribution
Manufacture2023.3.2Q
Education Institution

Note: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).
*Sales to local governments and others from the medical big data business, such as receipt checks, are classified as “

36%

6%
13%
Medical2024.3.2Q
Government and others

Medical”.
©2023 Japan System Techniques Co., Ltd.

16

Ⅱ．Performance Overview

３． Performance by Category (3) Sales by Customer GroupGrowing in domestic prime transactions and overseas corporate transactions, while maintaining andsustaining an ultra-long-term customer base
Customer group2023.3
2Q※(XX years) indicates number of years in business.
NTT(29 years)
Fujitsu(47 years)
Honda Motor(40 years)
Duskin(35 years)
Above 4 companies
Domestic Prime Transactions
Universities and other educational
institutions
Other foreign business transactions
Health insurance associations, local
goverments, other healthcare-relatedcompanies
GAKUEN Business Agent
TIS
Financial institutions
Foreign energy-related publiccompanies
Highway-related public companies
Others
Total

17.6%
4.1%
4.9%
4.4%
31.0%
13.8%

2024.3
2Q

15.8%
4.8%
4.6%
4.6%
29.7%
19.4%

Others, 3.9%
Highway-related public companies, 0.4%
Foreign energy-related publiccompanies, 3.5%

Financial institutions, 4.3%

NTT, 15.8%
TIS, 5.1%

10.9%

11.5%

8.1%

10.1%

GAKUEN Business Agent, 5.9%

6.5%

6.2%

6.6%
6.5%
4.2%

5.9%
5.1%
4.3%

Health insurance associations, local goverments, other
healthcare-related companies, 6.2%

4.3%

3.5%

1.1%
7.1%
100%

0.4%
3.9%
100%

Fujitsu, 4.8%

Other foreign business transactions, 10.1%

Honda Motor,4.6%
Duskin, 4.6%
Domestic Prime
Transactions, 19.4%

Universities and othereducational institutions,
11.5%©2023 Japan System Techniques Co., Ltd.

17

Contents

Ⅰ．FY2024.3 2Q Summary
Ⅱ．Performance Overview
Ⅲ．Forecasts for the current FY and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

18

Ⅲ．Forecasts for the current FY and latest initiatives

１．Forecast of Business Performance（１） Feasibility Analysis against Full-year Forecasts

In the second half forecast, business segment operating profit is expected to increase year-on-year, while SG&A
expenses are planned to increase slightly. Initial full-year forecast profit is expected to be achieved.
Period covered

Target items

FY2023.3

FY2024.3

Difference

2nd half/ 2nd half
forecast

All business segments: operating profit

2,202

2,435

+234

2nd half/ 2nd half
forecast

Corporate: SG&A expenses

▲820

▲899

▲79

1,382

1,536

+155

2nd half/ 2nd half
forecast

Subtotal (consolidated operating
profit)First half results

Consolidated operating profit

1,003

1,003

▲0

Full year

Total (consolidated operating profit)

2,385

2,540

+155

（M¥）

• Sales is expected to increase year-on-year due to strong
orders in each business segment (detailed in next page)• Improved profitability due to higher SE unit price andappropriate project management

Major upfront investment items ended in the first halfof the year.
Slight year-on-year increase in the second half of theyear due to regular increasing items, in line with theplan©2023 Japan System Techniques Co., Ltd.

19

Ⅲ．Forecasts for the current FY and latest initiatives

１． Forecast of Business Performance （２）Sales and Order Backlog
The correlation coefficient between order backlog and sales in the following two quarters is 0.97 (strong positive
correlation). Sales in the second half of FY2024.3 are expected to land above initial forecasts.
（M¥）
Business/Period2020.3

DX&SI business
Package business
Medical big data business2021.92022.92023.3

2,937

3,099

2,766

3,121

3,857

4,138

4,098

532

782

692

900

727

1,095

814

1,349

4,818

2,764

6,645

2,301

2,423

1,902

2,521

2,187

6,486

7,754

7,099

8,042
10,747
10,042<Order backlog by business segment>

11,357

11,004

12,515

12,132（M¥）

14,000Percentagechange from
2023.32023.94,672 +14.0%
2,735 +25.1%
1,403 +72.4%
8,811 +24.1%<Total order backlog and sales for the following
two quarters>

12,0004,000

10,000

3,000

8,000

2,000

6,000
4,000

1,000
0

2022.3

6,446

Sales for the following twoquarters
5,000

2021.3

5,760

Total order backlog（M¥）

2020.92,000
2020.3 2020.9
DX&SI business2021.3 2021.9 2022.3 2022.9 2023.3 2023.9（FY）
Package business
Medical big data business*Global business is omitted due to the short-term nature of the remaining order period.

0

Correlation coefficient between the two indicators: 0.97

Ratio of next two quarters‘ sales to order backlog (average): 1.68 times
2020.3 2020.9 2021.3 2021.9 2022.3 2022.9 2023.3 2023.9（FY）
Total order backlog

Sales for the following two quarters©2023 Japan System Techniques Co., Ltd.

20

Ⅲ．Forecasts for the current FY and latest initiatives

１． Forecast of Business Performance (3) Research and Development Expenses
Investing actively in technological development and joint research in addition to productdevelopment
Research and development is progressing as originally planned on a wide range of topics（M¥）

DX & SI business
Packagebusiness
Medical big databusiness2022.3Full year

2023.3Full year

98

108

145

179

81

73

Others110

107

R&D Total

436

469

2024.3Full Year
Forecast*The arrow angle in the full-year forecast for FY2024 is an image of the percentage increase/decrease.

＜R&D Themes＞
DX & SI business- Strengthening Mega Solutions- JAST branding of SI business

GAKUEN- RX Product Enhancement- Related Solution Expansion- New services Expanded for graduates- New product development foruniversity students

BankNeo
Medical big data business- Product Development for Medical
Institutions- iBss Function Expansion- RPA Product Development- Sales Support System Development- SMART BankNeo Function expansion- product enhancementNew service
development (AI NLP, co-creation withcustomers)- New product development for large
banks

Others- New productdevelopment- New technology
research- Joint research with industrial,academic and public sector
industrial and academic officials- Commercial product development
through co-creation DX©2023 Japan System Techniques Co., Ltd.

21

Ⅲ．Forecasts for the current FY and latest initiatives

２．Valuation（１） Continued increase in market capitalization
＜EPS＞

(¥)

160
120

82.28

80

53.98

40

End of 2021.3

68.22

End of 2022.3

Watching over ”EPS×PER＝Stock price”• EPS• Continuing observation in view ofkeeping high levels and improvement ofstock liquidity• PER• Planning and implementation of
improvement measures (next page).

600
500

18.00

14.08

10

300

16.00
14.00
11.88

12.46

200
100
0

End of 2021.3

End of 2022.3

End of 2023.3◆

Total market capitalization of tradable
shares achieved one year ahead of plan*and complied with prime standards.

Aiming for a 'market position shift
from Micro-cap to Small-cap’ and

223
184

158
85

115

5
0

500

341

End of 2023.3＜PER＞(times)15

66.03(100M¥)

400

0

20

144.50112.32＜market capitalization＞

End of
2021.3End of
2022.3End of
2023.3targeting market capitalization
40-50 billion yen.

136

2023/12/1
Closing
price～Mediumterm target
value

Track record
Initial plan*
Targets for achieving the criteria for maintaining prime market listing**Plans and targets according to the “Plan for Compliance with the Listing Maintenance Criteria for the New Market Classification” (24 November 2021).

©2023 Japan System Techniques Co., Ltd.

22

Ⅲ．Forecasts for the current FY and latest initiatives

２． Corporate Value (2) Initiatives to Improve PER
Corporate value base: Growth in EPS and ROE through earnings expansion＋ Strengthening relationships with investors through various measures
Strengthening branding as a DX provider

Strengthening information dissemination to individual
and institutional investors•

Increased opportunities for meetings with domestic andoverseas institutional investors••

Exposure to IR media (TV, magazines)
Briefings for individual investors

•
•
•
•

⇒ Maximize business activities and strengthen branding
Aiming to increase positive perception among individual
and institutional investors⇒ Increased awareness through increased contact
and exposure opportunities
IR Globalization•••

Improvement of liquidity of stock transactions andactivation of trading

Enhancement of various English disclosures・ Reducing the timelag between Japanese and English•••⇒・Financial statements ・ Securities report ・Press releases
・Financial Results Briefing Materials ・Website⇒ Strengthening the approach to foreign institutional investors,
whose influence on Japanese equities is increasing

Future Priority Initiatives

Launching of DX Image
Website revision
Focus on DX business by changing reporting segment
Strengthen press releases•••

Stock split
Dividend policy in line with profit growth
Introduction of shareholder benefit system⇒ Stimulate market trading by improving
the attractiveness of JAST stock

Strengthening shareholder return policies, including dividend policy
Expanding public recognition by further strengthening public relations
Strengthening communication of sustainability-related information©2023 Japan System Techniques Co., Ltd.

23

Ⅲ．Forecasts for the current FY and latest initiatives

２．Valuation（３） Shareholder Benefit Measures
Focusing on SR measures to embody the gratitude to shareholders and improving the attractivenessof investment in JAST’s shares.
Decided on a shareholder benefit plan to attract fan shareholders by improving share liquidity andoverall yield.
＜Targets＞＜ Shareholder Benefit Policies ＞

50th anniversary special offers
Original QUO cards• Expected effect: expansion of shareholder base

• Eligible shareholders*1: Holdings of 100 shares (1 unit) or more•••

JAST shareholder
special benefits
Original catalogue gifts

Expected effect: Shareholder expansion andlong-term shareholding expansion
Eligible shareholders*1: Holdings of 300 sharesor moreItems: Ethical products, donations to social
contribution activities, etc.

Shareholder
characteristics

50th anniversary
special offers[100 shares or more]

JAST shareholder
special benefits[300 shares or more]

Note1) Supplementary information on target shareholders- The 50th anniversary benefits are available to shareholders registered or recorded in the shareholder register as at 31 March 2024.
- JAST shareholder benefits are available to shareholders listed or recorded in the shareholder register as at 31 March every year. The
content and value of the catalogue gift varies depending on the number of shares held and the length of continuous holding.
- For more information, see the 22 November 2023 disclosure ”Start of Shareholder Benefit Program and 50th Anniversary Gift”.

Number ofshareholders注２

shareholding
ratio注２

1,500 persons

10％

Institutional
investors, financial
institutions, etc.

100 persons

40％

Others*３

500 persons

50％

Individual
shareholder◆Current weaknesses
Share price has risen more rapidly than shareholder returns, resulting ina poor yield index.
⇒Exits by individual shareholders due to profit-taking sales haveoccurred.
◆Policy on measures：• Increasing the number of individual shareholders by increasing theoverall yield• Maintaining stability in shareholder composition by increasing longterm shareholding of individual shareholders◆ Effects of shareholder benefits：•
Increased inflow of new individual shareholders = increased
liquidity•⇒Increase in volume•
Increase in fan shareholders = decrease in profit-taking sales•⇒Long-term holdings◆ Overall effectiveness, including institutional investors ：Improvement in share price and PER

Note2) Number of shareholders and shareholding ratios: Figures are approximate
Note3) Shareholder characteristics "Other": individual shareholders related to JAST, domestic
corporations, etc.
©2023 Japan System Techniques Co., Ltd.

24

Ⅲ．Forecasts for the current FY and latest initiatives

３．Focus on Cost of Capital (1) Perceptions Regarding Enhancement of Corporate Value
Recent P/B ratios have remained above 2.5x and are in a growth trend.

Continuing to rise further through equity spread* conscious management＜PBR＞（Times）

2.50

20.00

2.05
2.00

1.71

1.50

1.00

0.81
0.69 0.69

0.90

1.12

17.78
15.00

1.20

1.17

5.00

0.88

0.00

0.65

9.74

5.43
5.92
4.43
3.85

Continuing to
generate ROE in theexcess of cost ofshareholders' equity
and growing as a highP/B ratio company

5.05

2023.32022.32021.32020.32019.32018.32017.32016.3ROE

2015.32014.32013.32023.32022.32021.32020.32019.32018.3

1.0 Boundaries（End of FY）

Positive/negative ofequity spread are
liked to PBR

8.90

7.41

▲0.49
2017.32016.32015.32014.3

PBR

16.66

10.00

(5.00)
2013.3

0.50

＜ROE＞

（％）

（End of FY）

Cost of equity （4.71～5.85）※*Equity Spread: Calculated as ROE - Cost of Equity, a positive value indicates the creation of shareholder value.
*Cost of Equity: Risk-free Rate + β (sensitivity) × Equity Risk Premium.
The risk-free rate is based on the 10-year government bond yield as of March 31, 2023 (0.322%), and the Equity Risk Premium is derived from historical risk premium data over the past 50 years (5.45%) sourced from SPEEDA.
The β value is adjusted using past data of stock prices (including dividends) and TOPIX (including dividends) with the following formula: Adjusted β = 2/3 × β + 1 × 1/3. The upper and lower bounds are calculated based on thedata for the past 15 years, 10 years, and 5 years.
©2023 Japan System Techniques Co., Ltd. 25

Ⅲ．Forecasts for the current FY and latest initiatives

３． Focus on Cost of Capital（２） Continuous Improvement of ROIC
Profit growth rate exceeded the rate of expansion of invested capital and improved by about 12
points in 10 fiscal years
EVA Spread* remained positive
(%)
18.00

17.08
16.54

＜ROIC＞

16.00

1,368

1,500

10,036

10.00

8.70

8.00

9.37

600

8.25

300

6.32

2023.32022.32021.3

NOPAT(Left-hand scale）

2020.32019.32018.32017.33.01

2016.35.01

12,00010,000
8,000
6,000

2,000
2015.34.29

134

2014.3

4.00

0

(M¥)

4,000

4,457

2013.3

6.00

8,270

900

11.10

12.00

0

Invested capital (average for period) (Right-hand scale)

3.00
2023.32022.32021.32020.32019.3

ROIC (Invested capital)

2018.32017.32016.32015.32014.32013.30.00＜NOPAT・Invested capital＞ 1,713

1,200

14.00

2.00

(M¥)
1,800

※
WACC（4.58～6.09）

2014.3 end - 2023.3 end CAGR（10 fiscal year）
NOPAT

24.4％

Invested capital(average for period)

8.6％*Equity Spread: ROIC (invested capital) minus WACC. If this value is positive, the company is creating economic value in excess of the cost required by shareholders and creditors (WACC).
*WACC: Calculated as follows.
Interest-bearing debt / (market capitalization less treasury stock + interest-bearing debt) x (1 - effective tax rate) x cost of debt* + market capitalization less treasury stock / (market capitalization less treasury stock) + interest-bearingdebt) x cost of equity*Debt cost is the median of several listed companies with the same level of equity capital and equity ratio.
©2023 Japan System Techniques Co., Ltd. 26

Contents

Ⅰ．FY2024.3 2Q Summary
Ⅱ．Performance Overview
Ⅲ．Forecasts for the current FY and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

27

Ⅳ．Long-term growth strategy

１． JAST Style of DX Concept

Creating a cyclical structure for business development, productivity improvement, andmarket value enhancement by fully utilizing DX promotion activities in the core businessand business management.
New Normal society

Capital market- SDGs/TCFD/ESG- Changing attitudes about thevalue of the company

Industrial circle- The Cliffs of 2025
- Japan Digital Agency- Development of related laws

DXification of society and life

- Working innovation- Change in values- 5G/6G, Society 5.0

CorebusinessDX- DX & SI business：Co-creation DX- GAKUEN business：Educational DX- BankNeo business：Financial DX- Medical big data business：Medical DX- New/Derivative business：Office DX etc

Internal use

Businessmanagement
DX- Health Management through datautilization- Office DX and Workstyle
Development leading New Normal
Commercialization

Market value
CI- Stable foothold in the TSE prime market- From SI’er to “Launch the Future” DX’er- Sustainability initiatives©2023 Japan System Techniques Co., Ltd.

28

Ⅳ．Long-term growth strategy

２． Core Business DX (1) DX & SI Business Strategy Overview
Redefining the business portfolio, maintaining and expanding a stable
growth base and promote high value-added businesses
Sales composition

Service- Data collection, utilization and analysis support- Provided one-stop service from infrastructure
construction to operation and maintenance withcloud computing

High value-added

40%

12%

Solution48%- Launching new businesses- Building large scale businesses with high grossprofit margin- Developing mega solution businesses such as
SAP/SFDC

Stable growth platform

SI

Targets for the FY2026.3
23%
7%
70%
FY2022.3- Maintaining and expanding SI (System
Integration) business with existing customers
as the primary revenue base- Building a framework for SI projects that canbe driven by a minimal number of senior SEs(Systems Engineers)- Creating new branded products

Accompanying
Customer DX- Providing consulting services
for planning and promotion- Building a business ecosystem

JAST Brandingof SI business
Branding development
methods and frameworks
cultivated over 50 years as the
JAST Method to add value andenhance market
competitiveness©2023 Japan System Techniques Co., Ltd.

29

Ⅳ．Long-term growth strategy

２． Core Business DX（２）Package Business：GAKUEN Strategy Overview
Expanding target markets with new services based on the foundation as a top brand×２times
TAM

Subscription

GAKUEN

IoT

×Consultation

AI

CashlessOEMequipment

Stable performance growththrough expansion of current business using DX technology

×７times（ JAST Brand Cross-sector Solutions ）JAST-X-Tech

Life-long learning

Platform business

Marketing support

Data utilization business

Education

Expanding alliance

Publishing and Media

Expanding business domain（Graduates, Business persons, Primary and secondary education)

Formation of the foundation
for the next generation of GAKUEN through new business

Local Services
Expanding beyond IT to other services©2023 Japan System Techniques Co., Ltd.

30

Ⅳ．Long-term growth strategy

２． Core Business DX（3）Package Business：BankNeo Strategy Overview
Releasing continuously new solutions based on the concept of Smart/Niche/Cloud

Expanding target market with our unique products to become a financial DXer that
contributes to local communities

×５times

TAM

Front
compliance

Competitive
price

TQSM
Navi
E-formIntroducing to
all domestic
financial institutions

Continuous
Solution Creation
Easy
installationHigh
scalability

×７times

CRM
SFA

Cloud
BankNeomanagement system

Revitalizing the industry
and the region
through financial DX

CRM-basedbusiness expansion

Number of banks

30（FY） 2018.3

34

46

50

53

58

2019.32020.32021.32022.32023.3- Expanding sales channels
through collaboration- Expanding SMART
BankNeo functions and sales- Strengthening non-face-toface channels and2024.3 administrative efficiency
functions59

2026.3- Encouraging Financial Institutions to Move to the Cloud- Tie-up with existing users to plan new products- Supporting business transformation of banks in line with
regional characteristics/issues by introducing sales support
and CRM and utilizing data
©2023 Japan System Techniques Co., Ltd.

31

Ⅳ．Long-term growth strategy

２． Core Business DX（4）Medical Big Data Business Strategy Overview
Leveraging an unparalleled receipt processing volume and insurer platform
Becoming a top player in insurer DX
JMICS

Automatic receipt
inspection system-Completion of inspection
model for all insureds- Strengthening data analysis
and health project consulting

Top in Japan

Data Provider

×

iBss

Insurer operations
BPR/BPO System- Expanding product lineup- Expansion of recognition and numberof users- Platformization

Top in Japan

Insurer Platform

To the top playersof Insurer DX

Data utilization
business model building

New services・Market expansion

M&A/ Alliances

Evolving into a comprehensive
medical DX service- Health management- Pharmaceutical industry/ Healthcare- D2C Business etc.
©2023 Japan System Techniques Co., Ltd.

32

Ⅳ．Long-term growth strategy

２． Core Business DX （5） Medical Big Data Business Mid-term Business Expansion
Initial～Present
Net Sales Image

Mid-term Growth Theme

Mid
term

New Business
M&A

Number of iBss users exceeds
70 health insurers. Accelerating
business expansion as aninsurer platform.

Other

Started Life Innovation Lab(Current name: Future CoCreation Lab) toward expanding
data utilization

iBss

Data Utilization

Non-inspection sales
using medical data exceed
receipt inspections

Accelerate business expansion by creatingsynergies between existing & upcoming services
 Expansion of data base (quantity, quality, scope) Expansion of data-driven services (wearable tools, PHR, etc.)
 Increase human resources and expertise

Establishment of insurer platform Deepen the differentiation point of System & BPO
 Expand services to adjacent markets by enhancing web functions forsubscribers

Expanding data coverage and revenue basethrough alliances Expansion of alliances with data providers
 Expansion of data range for new RWD business

Expansion of JMICS
offerings receipt:
inspection with processing
volume up to 10 million
cases/month

Data HealthExpansion of human resources x
De-personalization through AI

 Capturing commercial opportunities in the 3rd Data Health Plan Expansion of organizational scale to accelerate subsequent growth x
increased efficiency through AI

Receipt inspection

Completion of inspection business through fully
automated JMICS applicable to all types of insurer Becoming market-leading data holders and the top provider ofreceipt data

FY2010.3

FY2023.3©2023 Japan System Techniques Co., Ltd.

33

Ⅳ．Long-term growth strategy

２．Core business DX（６）Future Co-creation Laboratory (JAST Lab)
Contributing to society through joint research with academia, etc., using data held by JAST,
and Aiming to discover seeds for commercialization through the development ofcommercial products with other companies.

 Services
１）Medical Data PROVISION：MDP

Package for DX activities and research promotion using medical big data.

MDP

Medical big data Collaborative research and outputs [3 most recent cases]
Started joint research with Yasushi Hara, an Associate Professor at Kobe
University [November 16, 2023]“15th IHEA World Congress” Reported on Joint Research with Keio
University Nakajima Research Laboratory [August 3, 2023]”The 5th Annual Meeting of the Japanese Association for Medical Artificial
Intelligence” Presentation of Analytical results of joint research with Dr
Katsuki, Itoigawa general hospital [July 7, 2023]

 Media coverage [3 most recent cases]
Secure research environment

Lab room

Data analysis and proposals

JAST data advisor

２）REZULT

Datasets that make JAST-owned medical big data intuitive and accessible.
Number of patients

More than 8 million people
Number of receipts

More than 390 million

 Anonymous processing Statistical processing

Medical information portal for diabetes care and treatment guidance“Diabetes Mellitus Resource Guide” [September 4, 2023]
TV Asahi Corporation “ANN News” [July 28, 2023]“KYODO NEWS” , “THE NIKKEI” [June 22, 2023]

 Data sources and external activities [As of December 8, 2023]
Japan Alternative Data Accelerator
Association

CABINET SECRETARIAT
COVID-19 AI & Simulation Project

National Institute of InformaticsAWS Data Exchange/
AWS Marketplace

Informatics Research Data Repository(IDR)©2023 Japan System Techniques Co., Ltd.

34

Ⅳ．Long-term growth strategy

２．Core Business DX（7）Global Business
Establishing a base in India, a rapidly growing market in the pursuit of a digital transformation
Expanding SAP business to ASEAN + South Asia and Middle East to accelerate global growth
HRM

Thailand

Malaysia

India

Singapore

JASTEC(THAILAND) CO., LTD.
JAST Asia Pacific CO., LTD.
Bright & Better Co., Ltd.
Virtual Calibre Group

PMS

*3

GLOVIA smart
PRONES

Domestic Business in ChinaSI
Development

ASEAN
Merchandise
Collaboration

New product development/sales
through alliances*4

Strengthening wide-area deployment of solutions andbusiness expansion / Creation of new businesses*1

Enhancing function
to total HRM solution

AG NET PTE. LTD.
GuiLin Anxin Software Co., Ltd.

China

ERP/ACCOUNTING

VAR business development andfurther strengthening
global procurement capabilities＜ Global Business Sales Change＞（100M¥）

30

20.8

24
18
12
6
0

1.3

1.4

1.6

2016.32017.32018.3*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

4.0
2019.3

10.7

2020.326.7

13.8

2021.32022.32023.3©2023 Japan System Techniques Co., Ltd.

35

Ⅳ．Long-term growth strategy

２．Core Business DX（8）M&A/ Strategy for Group Expansion

Creating new domestic markets with “JAST IT” for same industry/other industries
Continuing
domestic and overseas M&A with an eye on expanding products and350
area and creating synergies

Organic growthof existing businesses andextra revenue from M&A(100M¥）

300

250

(M&A)
Alpha Computer Co., Ltd.
[ICT Infrastructure]

200

(M&A)
Virtual Calibre
[SAP]

(M&A)
NewNeeds Co., Ltd.
GuiLin Anxin Software Co., Ltd.
[SI, Offshore, Expanding in China](M&A)
ISR Co., Ltd.
[IBM i-RPG]

JAST Techniques
JASTEC Thailand(M&A)
AG NET[AGHRM]

Mid-termmanagement
plan
Forecast

150

100

50

0

2006.32007.32008.32009.3

JAST None-consolidated net sales

2010.32011.32012.32013.3

Consolidated net sales

2014.32015.32016.32017.32018.3 2019.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 2026.3※ Consolidation adjustments are deducted from group company sales （Full year）
Appearing Quantum leap
©2023 Japan System Techniques Co., Ltd.

36

Ⅳ．Long-term growth strategy

２．Core Business DX（9）Adapting to New Areas and Alliance Strategy
Targeted new areas are multifaceted.

Aggressive R&D and alliance strategies will accelerate the creation of the next growth driver
Big data
Data science Expansion of data science projects

DX & SI business

NewNormalDX E-commerce site
construction

Blockchain
Fintech SAP※１  MaaS data platform

AI、Biometric identification、VR Office DX －Facial recognition－

Cloud Expanding application in SI
development
 SAP*1

 mieHR（HRM）
 Office Cashless payment
 「BankNeo for CRM/SFA」

BankNeo（Package business）

GAKUEN（Package business）

Medical big databusiness

 Management Decision Support (BI) IR

Big Data in Education
 Expansion of monthly receipts
processed
 Expansion of data utilization
services Medical Big Data Services“REZULT”

Global business・Alliance
・New businesscreation through inhouse ventures

 Cloud BankNeo  E-form
management
system Sales Productivity Improvement
SupportNon-personal/ Office efficiency
enhancements

Application to Package Functions

 Smartphone app
 E-learning Linkage with Textbook SelectionDB On-campus electronicmoney Package function AI

Services for graduates

Blockchain Utilization

Applying additions to the package

 Web service “iBss”
 Predictive model for severe disease BtoBtoC products

Blockchain Utilization

 GAKUEN Subscription

Blockchain Utilization

Blockchain Utilization
 SAP*1

 Co-Creation DX Service "MDP”
 Industry-academia-government
collaboration*Future Co-Creation Lab “SMART BankNeo”

 AGHRM

 mcframe*3

New Service for Generation Z Students※Package business SAP※１

Business use of generative
AI*DX&SI businessNo-code development

Current business areas and measures*Trademarks of other companies' solutions are listed under “Trademarks” at the end of this document.

JAST brand

Areas under planning/development©2023 Japan System Techniques Co., Ltd.

37

Ⅳ．Long-term growth strategy

２．Core Business DX（10） Activities to Enhance Human Capital
Health Management Promotion
Excellent Health Management
Corporation（Large corporate division）

Enhancement of health education① Group Education Training

Certified for② Health Events

3 consecutive years

Eliminating Long Working Hours
JAST's Unique Labor Policy”Kaeru! JAST”

Promoting stress checkexaminations

90

Continuation of% or higher
inspection rate

(93.2% of the full-year results for FY2023.3)

Attendance Data Analysis

Pick up & follow up
persons at high risk ofphysical and mental health- Health Management Training- Woman’s Activity Support Forum- “Walking Events”- “Stretching for Functional Improvement”- “Smoking Ceszation Events”③ Personal interviews

DX Human Resource Development
SAP*1 Number of qualified
employee
Total Qualifications ２６２

Qualified persons ９０ persons（ As of November 2023 ）”JCPL”
Beginner５２８persons
Intermediate１０５persons

In-house certifications

with industrial physicians
and public health nurses

Regular health checkups
Promotion of medical checkups(2010.3～2023.3 Cumulative number of certified recipients)

１００％② Percentage of re-examination
Continuing efforts toward

１００％（Re-examination rate: 84.6% for the full year of FY2023.3）

１０１ courses（ 2024.3 2Q cumulative results, number of days held ）DX related external
e-learning course campaign

１３ categories
２４ courses（ 2024.3 2Q cumulative results ）JCPL：The abbreviation for JAST Certified Project Leader.
In-house independent certification in JAST-style project management

Advancing workstyle reform

Average annual recuperation time

① Periodic health checkup rate
Continuing

DX Human Resource
Development Group Training
１６ categories

Acquisition rate６６.３％

Number of days１０.８days(Full year results for FY2023.3)

Recipients of parental leave
２８personsMale７persons(Full year results for FY2023.3)*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

Average overtime hours(Average monthly overtime hours)

１７.６hours(Full year results for FY2023.3)

Reduced working hours aftermaternity/paternity leave

９yearsMaximum of(１.５times the legal requirement)©2023 Japan System Techniques Co., Ltd.

38

Ⅳ．Long-term growth strategy

３．Efforts Towards Sustainability（１）Overall Policy

Appealing to various stakeholders through appropriate disclosure of corporate activities
aimed at sustainable growthAppealing to
Sustainable Development Goals

ＳＤＧｓ

Stakeholders

Related elements

Goals (Targets)
when building a business model

Disclosure of climate-related financial
information by companies as adecision-making tool for investors

Society in general
General consumers

IR

Employeeengagement

Task Force on Climate-related
Financial Disclosures

Corporate Social
Responsibility

ＣＳＲ

Sustainability

Sustainability ofsociety and businesses

Specific activities
including non-business-related volunteer work, etc.

Appealing toEnvironment / Social/ Governance

E

S

G

How to manage
while maintaining sustainability

IR

Investors
Financial institute©2023 Japan System Techniques Co., Ltd.

39

Ⅳ．Long-term growth strategy

３． Sustainability Initiatives（２） SDGs Initiatives (Main Activities)
Key issue

Industry and ICT innovation

Support for learning activities
using ICTBusiness field
General business

GAKUEN

Contents

Making society a better place by creating and providing new types of IT services
Supporting the structural transformation of industry with ICT
Contributing to co-creation and cooperative system establishment and ecosystemtransformation
Working in solidarity with Group and partner companies








Providing a comprehensive solution in building the future of universities
ICT-driven, high-quality classroom support and technology-based education
Facilitating improved educational quality through the use of educational big data
Realization of recurrent education (lifelong learning) environments
AI and IoT research development aimed at the digitalization of education
Providing new services for Generation ZUsing medical big data to contribute to health care cost optimization for insurers
and promotion of the health of the insured
Joint research efforts with academia and others to help find solutions to address
disease, including infectious diseases, and medical challenges
Open-sourcing medical big dataOptimization of medical costs
and contribution to healthpromotion

Medical big databusiness

Improving the efficiency offinancial operations with an
integrated information
system package

BankNeoContributing to society via information systems integration package businessaimed at financial institutions

Contribute to corporatetransformation by promoting
digitalization

DX＆SI businessCashless service for employee cafeterias and offices“mieHR” human resources data platform
Office DX -Facial recognition-based attendance recording-*Excerpt from our corporate website section "Initiatives for SDGs"

SDGs theme©2023 Japan System Techniques Co., Ltd.

40

Ⅳ．Long-term growth strategy

３．Sustainability Initiatives（３） SDGs Initiatives (Business Management)
Key issue

Business field

Initiatives for healthmanagement

Healthmanagement

Providing opportunities
for learning

Training andeducation

Diversity initiatives

Recruitment andtreatment

Reduction ofenvironmental impact

General business
management*Excerpt from our corporate website section "Initiatives for SDGs"

Contents

Health management promotion
Promotion of regular health examinations and multiphasic health screenings
Elimination of long working hours
Communication promotion initiatives (e.g., events)
Physical and mental health promotion

A robust in-house training system (e.g., in-house professional certification
programs)
Internships (providing students with systems engineering work experience)
Supporting education and learning through systems development









SDGs theme

Hiring and fair treatment without consideration of race, nationality, gender,etc.
A variety of in-house systems for supporting a variety of work styles
Contract with “Work Happiness Farm” run by S-POOL Plus Inc.
Initiatives to promote paperless offices via DX promotion
Initiatives to address environmental issues in our offices, data centers andelsewhere©2023 Japan System Techniques Co., Ltd.

41

Ⅳ．Long-term growth strategy

４．Cash Allocation
investment for growth*Cumulative operating cash flow for the period

Strengt
heningthevalueofferedDevelopm
ent oftechnical
human
resources

M&A・Alliances

New opportunities in current market

JAST brands: same market and peers; DX & SI businesses: downstream SI businesses, etc.

Market expansion

JAST brands: adjacent markets and different service providers; Others: alliances including capital tie-ups with ventures

R&D
New business development

Identification of new business seeds and focused investment in specific seeds

Multi-alliance

Advanced technology and deep tech fields aim for wide reach through alliances

Recruitment and training
investment

Diversity recruitment, sophisticated professional and cutting-edge technology HR recruitment

Business Management DX

Shareholder returns(e.g. dividends)
Adequate cash and cash
equivalents

Continuously updating the decision-making infrastructure and contributing to agile
management

Strengthening SR (Shareholder Relation) and increasing in market
capitalization

Towards a market capitalization of 40-50 billion yen (Micro-cap ⇒ Small-cap), Aggressively developing measures toincrease total yield, taking into account the balance between the speed of profit growth and investment in growth.

Strengthening cash flow through profit growth;
Continuing with appropriate CCC

Further financial soundness through diversification of brand business models (cash points), improvement of SE
unit prices and expansion of the solutions business. Aggressive investment in growth and safer management.

*Planned using cash on hand (cash and accounts receivable) at the end of FY2023.3 + {operating profit + R&D expenses + non-cash expenses from mid-term plan (2024.3-2026.3)}*The three-colored wave brackets

represent the distribution ratios of investment in growth, shareholder return and adequate cash and cash equivalents, respectively.

©2023 Japan System Techniques Co., Ltd.

42

Contents

Ⅰ．FY2024.3 2Q Summary
Ⅱ．Performance Overview
Ⅲ．Forecasts for the current FY and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

43

Ⅴ．Appendix

１．Company Information
Company name

Japan System Techniques Co., Ltd. (JAST）

Listed Market

Tokyo Stock Exchange Prime Market（Stock code: 4323）

FoundedMarch 26, 1973

Capital1,535 million yen（as of March 31, 2023）
Osaka Head Office

Location

Business
Segment

1.
2.
3.
4.

DX & SI business
Package business
Medical big data business
Global business

Qualifications

•
•
•
•
•
•

Privacy Mark Certification
ISO9001 registered company
ISO14001 registered company
ISO27001 registered company
ISO20000 registered company*
Excellent Health Management
Corporation 2023

2-3-18 Nakanoshima, Kita-ku, Osaka-shi, Osaka（Nakanoshima Festival Tower 29F）

Tokyo Head Office

2-16-2 Konan, Minato-ku, Tokyo（Taiyo Seimei Shinagawa Building 27F）
Representative

Takeaki Hirabayashi, President and CEO

Employees

Consolidated：1,917（as of September 30, 2023）

Business
Affiliation

Completely independent

Office Locations

Certification
mark

Tokyo, Osaka, Singapore, Thailand, Malaysia, India and China*Registered with our Healthcare Innovation Division©2023 Japan System Techniques Co., Ltd.

44

Ⅴ．Appendix

２．Group Companies
GuiLin Anxin Software Co., Ltd.

★ Guilin, China★Offshore development ★Sales base in China

Shanghai Jiafeng Information
Technology Co., Ltd.

★ Shanghai, China★Development and product sales base in China

JASTEC(THAILAND) CO., LTD.

★ Thailand, Bangkok★IT service for local Japanese companies

JAST Asia Pacific CO., LTD.

★ Thailand, Bangkok★Deployment of JAST brand service in ASEAN★

Bright & Better Co., Ltd.

Thailand, Bangkok★Consultation of implementing integrated software
package
Software Contract Development

Virtual Calibre Group（4 companies）★ Kuala Lumpur, Malaysia

Chennai, India★Deployment of SAP business

AG NET PTE. LTD.

★ Singapore★Deployment of HRM businessOsaka Head Office

Tokyo Head OfficeOsaka Head Office

Festival Tower 28-29F,★ Nakanoshima
2-3-18 Nakanoshima, Kita-ku, Osaka-shi,
Osaka

NewNeeds Co., Ltd.

★ Osaka★Local based IT service

Tokyo Head Office★ Taiyo Seimei Shinagawa Building 5F, 26F, 27F,
2-16-2 Konan, Minato-ku, Tokyo

Alpha Computer Co., Ltd.

★ Shinagawa-ku, Tokyo★ Multi-vendor IT infrastructure design

ISR Co., Ltd.

Tokyo
★ Chiyoda-ku,★ Contract development, package development
and sales©2023 Japan System Techniques Co., Ltd.

45

Ⅴ．Appendix

2020

３．History- Launched “iBss” service- Launched “mieHR”- Launched “GAKUEN
Subscription”- Launched “GAKUEN RX”

IT bubble
burst

2022

- Announced transition to
Tokyo Stock Exchange Prime market- Established Bright & Better

2017

TohokuEarthquake

2003－ Listed on the First Section of theTokyo stock Exchange

2012-Acquired three companies

2006

１５０

- 50th anniversary of the foundation- Certified as a "DX Certified Business Operator”- Conformed to TSE Prime Market listing
maintenance standards- Virtual Calibre Consulting
India Pvt. Ltd. to be subsidiary company- Launched “SMART BankNeo”

Economic downturn
precipitated by the
Lehman Brothers
bankruptcy

Net sales（100M¥）
２００

2023

2021

- Acquired shares of
Alpha Computer Co., Ltd.

NewNeeds Co., Ltd.
SafeNeeds Co., Ltd.
GuiLin Anxin Software Co., Ltd.

- Listed on the Second Section of
the Tokyo Stock Exchange

１００

2001

Economic
bubbleburst- Listed on JASDAQ market- Launched “UNIVERSAL PASSPORT”- Acquired shares of JASTEC (THAILAND)

1973- Founded1982- Launched “GAKUEN”- Launched “JMICS” service

COVID-19
Transition totype 5infectious
disease- Acquired shares of
Shanghai Jiafeng Information Technology Co., Ltd.

United Kingdom
decided to leave EU

2018- Launched “UNIVERSAL PASSPORT RX”- Established JAST Asia Pacific- Acquired shares of Virtual Calibre

2019• Established JAST TECHNIQUES

1973～- Acquired shares of ISR
Co., Ltd.

- Launched “BankNeo”

2010

1994

５０

COVID-19

2015

2011

2000

2016

- Acquired shares of AG NET

2000～

2010～

2015～

2020～
©2023 Japan System Techniques Co., Ltd.

46

Ⅴ．Appendix

４．Business（１）List of Businesses
DX＆SI business

Package business

Medical big data business

Global businessContracted Development
Development Support
Solution development and implementation

In-house packaged solutions
Development and Sales

Global DX business with a focus
on the Asia-Pacific region

Taking advantage of our strength as a completely
independent company, we provide a wide variety
of information systems and services across awide range of fields

Providing development and sales of our own
branded products, along with implementation
consulting services. Additionally, we offer related
services such as environment setup and systemdevelopment

Inspection and analysis of
medical information data andrelated services◆SI

Providing system development services toa wide range of industries and businessdomains◆Solution

Development, collaboration,
implementation, analysis, and related
system development of in-house solutions
and cooperative solutions◆Service

From consultation and data science tocloud infrastructure construction,
operation and maintenance, and data
analysis and utilization, we provide
comprehensive services to support theneeds<JAST brand product>
・HR data platform

・In-house Cashless service
・Office DX-Face recognition attendance system-◆GAKUEN

Providing development, sales, andimplementation and consulting services
for the "GAKUEN series," acomprehensive package system foruniversities. With a top market share in
Japan (adopted by over 400 universities
and junior colleges nationwide), oursystem is tailored to meet the specificneeds of educational institutions.

Providing a one-stop service by offering multiple
healthcare businesses and promoting theutilization of medical data and insurance
business reforms◆Receipt automatic inspection
system◆Countries
Malaysia

India

Thailand◆Insurer Business Support Services◆Receipt Management for Public
Assistance System*5◆BankNeo

Providing development, sales, andimplementation for the "BankNeo"
package solution for financial institutions.
In 2021, it was adopted by major banks,
and we currently have a total of 58
financial institutions using the system.

We have group companies in five countries
overseas and provide services such as
development, sales, and implementation
consulting of ERP and HRM products, as well as
system development◆Data health business◆Data utilization*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

Singapore

China◆Business

・SAP* implementation consulting andrelated services(in Malaysia and India)
・ERP implementation and related services(in Thailand)・Cloud-based HRM solution
Developing “AGHRM®” (in Singapore)

・Offshore development (in Guilin, China)©2023 Japan System Techniques Co., Ltd.

47

Ⅴ．Appendix

４．Business（２）JAST Brand：GAKUEN

Top brand with more than 444 schools installed
An integrated platform that comprehensively supports the activities ofhigher education institutions.
SchoolAffairs

UNIVERSALPASSPORT
Portal system

Providing comprehensive services
using integrated campus data
to students/faculty/staff

Centralized
data management

Portfolio- Learning portfolio- My step- Course record

Providinginformation- Portal- Smartphone app- WEB application

Smartphone

Subscription

GAKUEN
Core back-office system- School affairs- Classroom- Syllabus batch printing- Syllabus disclosure

Centralized management of student information
From admission to graduation and contributing toManagement strategy formulation and business improvement

Entrance
examination- Employment- Student- E-money- Point management

Education
support- Class- Teacher’s tablet E-learning- Attendance management
ーSmartphone
attendance/
IC attendance coordination

Schoolaffairs- Research information

Employment

Schoolexpenses

CreateReportAutomatic
issuing
machine*Under developing
OEM equipment

EmploymentStudent
supportInformationdisclosure

DX main theme

CashlessCashchargerTicketmachinePOS
register

IC attendance
management
deviceERP
ScholarshipAI*
Organizingtime schedule

Automatic
issuing machineAI©2023 Japan System Techniques Co., Ltd.

48

Ⅴ．Appendix

４．Business（３）JAST Brand：BankNeo
Offering a wide range of smart and niche solutions that leverage easy implementation and scalability
Our integrated package drives digital transformation (DX) in financial institutions

Scheduled forreleased in
FY2024.3

Front-end
compliance

Scheduled forreleased in
FY2023.3- Unified workflow and paperless operations- Compliance with regulations- Integration with CRM

CRM/SFA
Scheduled forreleased in
FY2022.3- Centralized customer
management and sales
support.

Cloud

Scheduled forreleased in
FY2022.3- Improved productivity in external activities andexternal affairs management- Enhancement of sales skills for personnel- Strengthening the organization.

Electric
form

Cloud BankNeo
management systemt- Reduction of administrative burdens- Paperless initiatives- Ensuring comprehensive security- reducing administrative burdens inmanagement and operations

TQSM NAVI

Other
solutions

Scheduled forreleased in
FY2020.3- Strengthening information
management- Paperless initiatives- Comprehensive estate management
and business administration- Versatile scalability and expandability

Proven track record of
implementation in numerous
financial institutions nationwide

Ease of implementation througha small start approach.

High scalability after
implementation

A wealth of expertise
accumulated over 30 years

A service lineupthat captures customer needs©2023 Japan System Techniques Co., Ltd.

49

Ⅴ．Appendix

４．Business（４）JAST Brand：JMICS

Providing comprehensive support ranging from insurance business assistance to analysis,business consulting, and implementation of healthcare services by leveraging a large
volume of medical data. Our monthly claims processing ranges from 7 to 10 million sheets
Benefit and applicationrelated services

Utilizing the system for receipt inspection,
dependent investigation, and assistancewith subsidy application
Inspection 【JMICS】
 Receipt inspection
 Inspection of overseas medical cost,
Inspection for judo therapy andosteopathy• Web application 【iBss】
 Dependent investigation system(Verification)
 Various applications(influenza vaccination subsidy)

Receipt data

Data of subscriber

Medical cost
optimization

Result data of
medical check-up

JMICS

Analysis

Notification services
Identification of eligible individuals andissuance of corrective notices for medical
expense rationalization
WEB notifications• Promotion of generic medicine usage
notification• Identification of individuals with duplicate or
frequent visits and issuance of corrective
notices• Identification of individuals with duplicate
medicine administration and issuance ofcorrective notices• Dispatch of notices recommending medical
examinations• Other notifications for appropriate
healthcare behavior, etc.

Medical cost optimization
services

ConsultingIT
technology

Healthpromotion

Providing support for various healthinitiatives and caregiving data, with a focus
on receipt and health check-up data
Providing comprehensive support from data
health strategy formulation to execution.
• Analysis of receipt and health check-up
data• Evaluation of the effectiveness of healthinitiatives• Various analytical reports and benchmarks• Geographic Information System (GIS)
analysis of regional medical expenses• Analysis of caregiving data

Health guidance services

Business
supportOffering health guidance provided byhealth counselors, registered dietitians,
nurses, and other professionals• Extraction of target individuals for healthguidance• Prevention of the exacerbation of lifestylerelated diseases• Prevention of the exacerbation of lifestylerelated diseases• Specific health guidance (face-to-face andICT-based)• Guidance on appropriate medical check-ups(reducing duplications, frequent visits, etc.)©2023 Japan System Techniques Co., Ltd.

50

Ⅴ．Appendix

５．Philosophy-based Management

Since its founding, we have consistently adhered to the philosophy of “Starting with a vision" under
the guiding principle of "the quality of management is determined by the quality of people,"embodying the concept of the integration of business and ethics.

天爵を修めて人爵これに従う
Basicphilosophy

Through steadfast adherence to morality and fundamental principles, andthe continuous cultivation of personal character, integrity, and virtue, one
naturally attains a position of respect and trust, bestowed upon those who
possess a dignified character.

There are artificial or nominal ranks bestowed upon individuals byorganizations or superiors based on performance and experience. These
ranks are primarily attributed to external appearances

By bestowing a knighthood upon someone first, they may mistakenly believe they have also attained a higher rank. However,
our ultimate goal in business activities and talent development is for each individual to strive to "attain the higher rank" or"excellence" itself, considering it as the supreme theme.
Firmly maintain a position of complete
independenceManagement
policyWe firmly maintain a position of complete independence, allowing us to fully
engage with our customers and tackle challenges without any constraints.
Our strength lies in the accumulated achievements and knowledge we havegained across various industries and technological fields. This enables us toprovide the utmost value to our clients.

Management focused on
developing people
Based on the belief that the cultivation of human abilities should take precedence
above all else, we foster a "people-centric" management approach at JAST. We
nurture the passion for information technology, which serves as the driving force
behind our company's growth, and instill a genuine commitment to providing
wholehearted services to our customers in each and every individual at JAST

Benefit in all directions
We uphold the principle of "Shihouyoshi" to establish a win-win relationshipwith our customers, shareholders, employees, and society. By maximizing
the value of each stakeholder and enhancing the overall corporate value, we
strive for long-term stable growth.
One should strive to discover that which is true and unchanging,but to also learn from the changes taking place all aroundWe follow the philosophy of "Fueki Ryūkō" established by Matsuo Basho, which
embodies the idea of preserving the essential while incorporating new changes andcreating value. In accordance with this philosophy, we provide proper leadership byadhering to a consistent management principle of "Fueki" (unchanging) while
effectively embracing the dynamic nature of the business world ("Ryūkō" or trends).

©2023 Japan System Techniques Co., Ltd.

51

Ⅴ．Appendix

６．Management Policy
Management policy is incorporated into the four principles of human resources, production,
sales, and finance, and serves as a guideline for long-term, stable growth
HR Philosophy

A person is an
asset
Production
Philosophy

Focusing on
the “person”
Commitment toquality andreliability

Quality first
Productive R&D
Business
Philosophy

Customer first
Financial
Philosophy

Operatingindependently andself-supporting

Business tactics

Thorough cost
control• Recruitment activities focused on long-term talentdevelopment, aiming to nurture technical professionals
regardless of their background in humanities or sciences• Utilizing career recruitment to secure specialist talent andacquire new insights• Prioritizing employee satisfaction through growth, evaluation,
and a favorable work environment, leading to a high employee
retention rate.

• Employee-centric project organization• Commitment to seeing projects through to completion
without dropping out halfway• Research and development expenditure ratio exceeding theindustry average in terms of revenue• Promoting M&A and business alliances to generate synergy• Facilitating the acquisition of DX (digital transformation)technologies within the company• Promoting collaborative research through industry-academiagovernment partnerships to create societal value• Promoting proposal-driven SI business that accompanies andsupports our customers’ industries and operations anduncovering repeat projects• Problem-solving and co-creation proposals by specialized sales.
• Utilizing alliances to provide a wide range of proposals andeffectively address various customer challenges• Projectization of all activities, including indirect departments,
for cost management• Compacting headquarters with streamlined indirect
departmentsStable quality
Accumulation of knowledge andcompatibility with changeHigh repeat order rateLong-term business with major
customersConstant creation of new products
and businesses
Refinement of in-house technologies andutilization of external knowledge







Long-term customer formation
DX-providing business
Co-prosperity of 4 different businesses

Low-cost structure
Stable performance growth©2023 Japan System Techniques Co., Ltd.

52

奥付

Japan System Techniques Co., Ltd.
https://www.jast.jp/
Inquiry
https://www.jast.jp/contact/【Notice】
The data and future projections disclosed in this document are based on the judgment and information available as of the date of this document and are subject
to change due to various factors. They do not guarantee the achievement of these objectives or forecasts or future performance. Additionally, this information is
subject to change without notice. Unless otherwise noted, all performance-related figures are presented on a consolidated basis.
【Trademarks】*1: SAP and the SAP logo, SAP products are trademarks or registered trademarks of SAP AG in Germany and various other countries.
*2: Salesforce and the Salesforce logo are registered trademarks of Salesforce.com, inc. Other service names are also registered trademarks or trademarks ofSalesforce.com, inc.
*3: The mcframe logo, as well as all mcframe products, features, and service names, are registered trademarks or trademarks of Business Engineering
Corporation.
*4: GLOVIA smart PRONES and GLOVIA smart products are trademarks or registered trademarks of Fujitsu Limited in Japan and other countries.
*5: RezeptPlus and the RezeptPlus logo are registered trademarks of Fujitsu Japan Limited.
©2023 Japan System Techniques Co., Ltd.