May 18, 2020

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]
Listing: Tokyo Stock Exchange, First Section
URL: https://www.jast.jp

Company name: Japan System Techniques Co., Ltd.
Stock code:
4323
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Managing Director and CFO
Scheduled date of Annual General Meeting of Shareholders:
Scheduled date of payment of dividend:
Scheduled date of filing of Annual Security Report:
Preparation of supplementary materials for financial results:
Holding of financial results meeting:Tel: +81-6-4560-1000
June 24, 2020
June 10, 2020
June 25, 2020
Yes
Yes (for analysts)

Note: The original disclosure in Japanese was released on May 18, 2020 at 17:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen% Million yen% Million yen% Million yen%
Fiscal year ended Mar. 31, 2020
18,019
6.8
970
13.9
1,021
17.9
(30)
Fiscal year ended Mar. 31, 201916,868
7.9
852
14.9
866
10.4
317 (45.1)
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2020:(119) (-%)
Fiscal year ended Mar. 31, 2019:
238 (down 62.6%)
Net income per
Diluted net
Ordinary income Operating income
Return on equity
share
income per shareon total assets
to net sales
Yen
Yen
%
%
%
Fiscal year ended Mar. 31, 2020
(5.76)
(0.5)
7.7
5.4
Fiscal year ended Mar. 31, 2019
60.58
5.1
6.7
5.1
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2020: Fiscal year ended Mar. 31, 2019: (2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Mar. 31, 2020
12,988
6,218
As of Mar. 31, 201913,636
6,418
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2020:
6,189

Equity ratio
%
47.7
46.8
As of Mar. 31, 2019:

Net assets per shareYen
1,154.07
1,202.34
6,381(3) Consolidated cash flows

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Cash flows fromoperating activities
Million yen
417
1,342

Cash flows from
Cash flows from
Cash and cash equivalents
investing activities
financing activities
at end of period
Million yen
Million yen
Million yen
(527)
(185)
3,908
(1,063)
1,157
4,204

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Total

Total
dividends

Dividend on
equity(consolidated)
%
%
46.2
2.3
2.4

Payout ratio(consolidated)

Yen
Yen
Yen
Yen
Yen Million yen
Fiscal year ended Mar. 31, 2019
0.00
28.00
28.00
149
Fiscal year ended Mar. 31, 2020
0.00
28.00
28.00
151
Fiscal year ending Mar. 31, 2021
0.00
28.00
28.00
(forecasts)
Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2020: Ordinary dividend: 28.00 yen-

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
There is no forecast for the fiscal year ending March 2021 because it is not possible to establish a reliable forecast at this time as weare in the process of closely estimating the impact of the global spread of COVID-19 pandemic on the forecast. An announcement
will be made promptly once it becomes possible to determine a reliable forecast.

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: -Excluded: -(2) 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

Please refer to “Notes to Consolidated Financial Statements” for further information.

(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2020:

5,612,230 shares

As of Mar. 31, 2019:

5,612,230 shares

As of Mar. 31, 2019:

304,710 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2020:

248,984 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2020:
5,324,711 sharesFiscal year ended Mar. 31, 2019:5,248,998 shares
Note: The Company’s stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (47,800 and
49,000 shares as of Mar. 31, 2020 and 2019, respectively), and is deducted from the number of shares that is used to
calculate the average number of shares outstanding during the period.

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Non-consolidated results of operations
Net sales
Million yen
14,427
13,796

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

%
4.6
8.6

Operating income
Million yen
%
1,013
38.7
730
11.9

(Percentages represent year-on-year changes)
Ordinary income
ProfitMillion yen% Million yen
%
1,121
43.8
21
(93.4)
779
11.6
330(33.3)

Diluted net income per
share
Yen
Yen
4.07
62.96
-

Net income per share
Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019(2) Non-consolidated financial position

Total assets
Net assets
Million yen
Million yen
As of Mar. 31, 2020
12,1096,539
As of Mar. 31, 201912,4396,596
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2020:
6,539

Equity ratio
%
54.0
53.0
As of Mar. 31, 2019:

Net assets per share
Yen
1,219.41
1,242.82
6,596

Note 1: The current financial report is not subject to audit 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. Overview of Results of Operations, (4)Outlook” on page 3 for forecast assumptions and notes of caution for usage.

Contents of Attachments

1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

2(3) Cash Flows3(4) Outlook

3

2. Basic Approach to the Selection of Accounting Standards

4

3. Consolidated Financial Statements and Notes

5(1) Consolidated Balance Sheet

5(2) Consolidated Statements of Income and Comprehensive Income

7

Consolidated Statement of Income

7

Consolidated Statement of Comprehensive Income

8(3) Consolidated Statement of Changes in Equity

9(4) Consolidated Statement of Cash Flows

11(5) Notes to Consolidated Financial Statements

12

Going Concern Assumption

12

Reclassifications

12

Additional Information

12

Segment and Other Information

13

Business Combinations

15

Per-share Information

17

Subsequent Events17

1. Overview of Results of Operations(1) Results of Operations
In the fiscal year ended on March 31, 2020, the Japanese economy continued to recover at a moderate pacesupported by improvements in corporate profits, the number of jobs and personal income due to the benefits ofeconomic initiatives by the Japanese government. However, there are concerns over a possible economic
downturn caused by the worsening US-China trade friction and the spread of the COVID-19 pandemic.
In the IT industry in Japan, according to the latest statistics in the “Survey of Selected Service Industries” by the
Ministry of Economy, Trade and Industry (the final February figures), net sales continued to climb, rising 4.0%
year on year in Fiscal 2019 (compared with 1.5% annual growth in Fiscal 2018). However, the outlook for the IT
industry is uncertain because of the recently increasing impact of the COVID -19 pandemic.
Consolidated sales and earnings of the Japan System Techniques Group (Japan System Techniques Co., Ltd. andits consolidated subsidiaries, hereafter “the Group”) in the current fiscal year posted net sales of 18,019 million
yen (up 6.8% year on year), operating income of 970 million yen (up 13.9% year on year), ordinary income of
1,021 million yen (up 17.9% year on year), and loss attributable to owners of parent of 30 million yen (vs. profit
attributable to owners of parent of 317 million yen in the previous fiscal year) due to booking of impairment lossof 738 million yen. Results by segment were as follows.
In the software business (individualized contracted software development), net sales increased but profits
decreased. Sales remained strong because orders from the service/retail industry, finance/insurance/brokerageindustry, manufacturing industry and universities increased while there was a decrease in orders from thetelecommunications industry. On the other hand, SG&A and other expenses increased due to business expansion
and there were some unprofitable projects. The performance of some subsidiaries was also sluggish. As a result,net sales in this business totaled 12,080 million yen (up 3.9% year on year) and operating income was 78 million
yen (down 83.7% year on year).
In the GAKUEN business (sale and related services of operational reform packages for schools), there wereincreases in sales of program products (PP) to universities, end user computing (EUC: individualized contracted
development of related systems) sales and IT equipment sales. Net sales in this business totaled 3,058 million yen(up 18.2% year on year) and operating income was 711 million yen (up 123.7% year on year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construction), sales to universities
and the public sector decreased. Net sales in this business totaled 1,566 million yen (down 6.8% year on year) andoperating income was 94 million yen (down 32.3% year on year).
Lastly, in the medical big data business (inspection, analysis and related services of medic al information data),
sales of automated inspection services for health insurance claims and services for notification of the cost of
medical care were strong. Net sales in this business totaled 1,313 million yen (up 34.3% year on year) andoperating income totaled 93 million yen (vs. operating loss of 95 million yen in the previous fiscal year).
(2) Financial Position
The balance of current assets at the end of the current fiscal year was 9,60 2 million yen, down 0.1% over the endof the previous fiscal year. The balance of non-current assets was 3,385 million yen at the end of the current fiscal
year, down 15.9% over the end of the previous fiscal year. This was mainly due to impairment loss for goodwill
and customer-related assets and a decrease in investment securities.
The balance of current liabilities at the end of the current fiscal year was 5,168 million yen, down 7.5% over theend of the previous fiscal year. This was mainly due to an increase in advances received and decreases in accounts
payable-other and notes and accounts payable-trade. The balance of non-current liabilities was 1,601 million yen
at the end of the current fiscal year, down 1.7% over the end of the previous year.
The balance of total net assets was 6,218 million yen at the end of the current fiscal year, down 3.1% over the endof the previous fiscal year.

(3) Cash Flows
Cash and cash equivalents decreased 296 million yen from 4,204 million yen at the beginning of the current fiscal
year to 3,908 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 417 million yen, compared with 1,342 million yen provided in
the previous fiscal year. This difference was mainly due to a decrease in proceeds from collection of tradereceivables and an increase in outlays for inventories, and a decrease in payments for trade payables.
Cash flows used in investing activities totaled 527 million yen, compared with 1,063 million yen used in theprevious fiscal year. This difference was mainly due to a decrease in the payment for purchase of shares ofsubsidiaries.
Cash flows used in financing activities totaled 185 million yen, compared with 1,157 million yen provided in theprevious fiscal year. This difference was mainly due to a decrease in short-term borrowings.
Reference: Cash flow indicators
FY3/16

FY3/17

FY3/18

FY3/19FY3/20Equity ratio (%)

59.8

55.4

50.4

46.8

47.7

Equity ratio based on market value (%)

38.6

50.0

56.4

55.5

42.1

-

0.5

0.4

1.2

3.6

Interest-bearing debt to cash flow ratio (years)

Interest coverage ratio (times)
78.0
431.8
478.5
94.1
Notes: 1. The above figures are calculated as follows.
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments* Market capitalization is calculated by multiplying the closing share price at the end of the period by the numberof shares outstanding at the end of the period, excluding treasury shares.
* Interest-bearing debt is calculated using total loans-payable on the consolidated balance sheet.
* Interest payments use the amount of interest expenses paid stated on the consolidated statement of cash flows.
2. There are no average debt repayment period and interest coverage ratio figures for FY3/16 because the Company
had negative operating cash flows.

(4) Outlook
Concerns over the impact of the spread of the COVID-19 pandemic on the global economy have rendered theoutlook for the business environment surrounding the Group uncertain. Particularly in the IT industry where theenvironment is extremely volatile, Japan System Techniques Co., Ltd. (JAST) understands that it will be difficult
to achieve growth if it remains overly dependent on contract development, the IT industry’s mainstay source of
earnings to date.
Consequently, to define the medium to long-term basic policies for the management of the Group, we establish a
new three-year medium-term plan every year. Each new plan starts with the fiscal year in which the plan wasestablished. The plan includes the type of organization we want to become, our brand image, our business fields ,the size of our operations and other goals. In this fiscal year, we will continue to take many actions in order toaccomplish the goals of the current medium-term plan.
The Group’s slogan for the fiscal year ending March 31, 2021 is “Use innovation and speed to create the JAST of
the future.” Based on this slogan, the entire group is taking on the challenge of advancing at a remarkably highspeed in order to go beyond mere “change” in order to achieve “innovation.” We are determined to continue
growing. In the contracted development business, we will increase the pace of structural reforms such as thedigital transformation and growth of services. For products using JAST brands, our goal is to be the market leader
for every service and item that we provide. We will continue to seek business alliances and take actions for
growth on a global scale. Our growth will also be supported by ideas for new businesses and thecommercialization of those ideas.

There is no forecast for the fiscal year ending March 31, 2021 because it is not possible to establish a reliable
estimate of the impact of the COVID-19 pandemic on the Group’s activities at this time. An announcement will
be made promptly once it becomes possible to determine a reliable forecast.
2. Basic Approach to the Selection of Accounting Standards
The Group will continue to prepare consolidated financial statements using generally accepted accounting
principles in Japan for the time being to permit comparisons with prior years and with the financial data of othercompanies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS)
by taking into account associated factors in Japan and other countries.

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

FY3/19(As of Mar. 31, 2019)
AssetsCurrent assets
Cash and deposits

4,260,305

3,909,343

Notes and accounts receivable-trade

4,341,029

4,502,676

Merchandise and finished goods

129,795

71,634Work in process

569,537

698,017

2,695

1,516

-

200,644345,249

238,579

Raw materials and supplies
Securities
Other
Allowance for doubtful accounts(38,272)(19,471)

9,610,340

9,602,941

720,814763,597

Accumulated depreciation(419,276)(462,594)

Buildings and structures, net

301,538

301,002142,361

142,361

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

Land
Other

451,991

487,040

Accumulated depreciation(337,562)(358,559)

Other, net

114,428

128,480

558,328

571,845

Goodwill

619,660

437,343

Customer-related assets

484,589

181,063

Trademark right-

37,348

Technology assets-

66,303

68,39664,545

Total property, plant and equipment
Intangible assets

Software
Other

7,626

7,626

1,180,273

794,230

Investment securities

688,789558,208

Retirement benefit asset

542,920465,943

Deferred tax assets

502,531436,814

Guarantee deposits

414,231443,489

Other

151,359

162,906

Allowance for doubtful accounts(12,209)(48,036)

Total investments and other assets

2,287,621

2,019,325

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

4,026,223

3,385,400

13,636,564

12,988,341

FY3/19(As of Mar. 31, 2019)(Thousands of yen)
FY3/20(As of Mar. 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,128,311

990,491

Short-term borrowings

1,543,696

1,500,000

Current portion of long-term borrowings

8,400

8,400

Income taxes payable

234,023

307,068

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on construction contracts

722,520774,631

27,46530,67637,264-

Advances received

648,746

823,126

Other

1,237,384

733,742

Total current liabilities

5,587,812

5,168,137

11,9002,800

20,05147,643

13,978

1,845

957,672

992,271

Non-current liabilities
Long-term borrowings
Provision for share-based remuneration for directors(and other officers)
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Deferred tax liabilities

116,888

61,062

Other509,788496,364

1,630,279

1,601,987

7,218,091

6,770,124

Share capital

1,076,669

1,076,669

Capital surplus

1,085,695

1,113,912

Retained earnings

4,359,161

4,178,503

Treasury shares(277,050)(233,240)

Total shareholders’ equity

6,244,476

6,135,844

Valuation difference on available-for-sale securities

114,167

113,396

Foreign currency translation adjustment(37,345)(30,713)

Remeasurements of defined benefit plans

60,163(28,978)

Total accumulated other comprehensive income

136,986

53,70437,01028,6686,418,472

6,218,217

13,636,564

12,988,341

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

Accumulated other comprehensive income

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

Net sales

16,868,799

18,019,792

Cost of sales

13,028,054

13,607,485

Gross profit

3,840,744

4,412,307

Selling, general and administrative expenses

2,988,375

3,441,497

852,369

970,809

Interest income

12,286

15,550

Dividend income

7,016

6,833

Rental income

3,619

4,921

Commission income

1,599

1,514

Subsidy income

18,196

36,635

Other

4,683

9,843

Total non-operating income

47,40175,299Interest expenses

2,833

4,471

Foreign exchange losses

27,27917,639

983

139

2,061

2,278

Operating income
Non-operating income

Non-operating expenses

Rental expenses
Other
Total non-operating expenses

33,15824,527

866,613

1,021,581

Impairment loss

4,079

738,103

Settlement package

380,000-

Total extraordinary losses

Ordinary income
Extraordinary losses

384,079

738,103

Profit before income taxes

482,533

283,477

Income taxes-current

268,539

301,727

Income taxes-deferred(96,066)

19,156

Total income taxes

172,472

320,884

Profit (loss)

310,060(37,406)

Loss attributable to non-controlling interests(7,925)(6,730)

Profit (loss) attributable to owners of parent

317,986(30,675)

Consolidated Statement of Comprehensive Income
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

310,060(37,406)

Valuation difference on available-for-sale securities(12,421)(771)

Foreign currency translation adjustment(27,816)

8,002

Remeasurements of defined benefit plans, net of tax(31,531)(89,142)

Total other comprehensive income(71,769)(81,911)238,291(119,317)

247,116(113,957)(8,824)(5,360)

Profit (loss)
Other comprehensive income

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

(3) Consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

994,621

4,188,119(266,539)

5,992,871

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares(146,944)(146,944)

317,986

317,986

91,074(89,915)(89,915)

79,403

170,478

Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period-

91,074

171,042(10,511)

251,605

1,076,669

1,085,695

4,359,161(277,050)

6,244,476

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

126,589(10,428)

Total
Remeasurements
accumulated Non-controllinginterestsof defined benefit
other
plans
comprehensive
income91,694

207,856

45,835

Total net assets

6,246,562

Changes during period
Dividends of surplus(146,944)

Profit attributable toowners of parent
Purchase of treasury
shares317,986(89,915)

Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity

170,478(12,421)(26,917)(31,531)(70,870)(8,824)(79,695)

Total changes during period(12,421)(26,917)(31,531)(70,870)(8,824)

171,909

Balance at end of period

114,167(37,345)

60,163

136,986

37,0106,418,472

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

1,085,695

4,359,161(277,050)

6,244,476

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares(149,982)(30,675)(30,675)

29,001

Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity

(80)

(80)

43,89072,891(785)

Total changes during period
Balance at end of period(149,982)

(785)

-

28,216(180,657)

43,810(108,631)

1,076,669

1,113,912

4,178,503(233,240)

6,135,844

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

114,167(37,345)

Total
Remeasurements
accumulated Non-controllinginterestsof defined benefit
other
plans
comprehensive
income60,163

136,986

37,010Total net assets

6,418,472

Changes during period
Dividends of surplus(149,982)

Loss attributable toowners of parent
Purchase of treasury
shares(30,675)(80)

Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

72,891

(785)

(771)

6,632

(89,142)(83,281)(8,342)(91,624)

(771)

6,632

(89,142)(83,281)(8,342)(200,255)

113,396(30,713)(28,978)

53,704

28,6686,218,217

(4) Consolidated Statement of Cash Flows
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

482,533
80,88239,43828,38815,631
4,079
83,068(7,438)37,821(19,303)
2,833
888,965
9,413
587,549(975,040)
382,414

283,477
91,06526,37773,07545,2271,965
3,489
738,10352,31133,19376,976(22,384)
4,471(132,187)
174,516(69,890)(138,982)(608,886)

Subtotal

1,641,239

631,921

Interest and dividends received
Interest paid
Income taxes paid

20,279(2,805)(316,427)

23,355(4,433)(233,577)

Net cash provided by (used in) operating activities

1,342,285

417,265

153,108(86,174)(28,722)
109,183(2,424)
162

58,080(65,702)(30,162)(72,011)-(1,188,033)(416,822)(20,164)
1,945(2,739)(30,259)
1,042
28,674(1,063,857)(527,162)

1,325,894(13,427)(8,400)(146,944)-(43,772)(19,712)(37,719)(149,982)(80)
69,999-(3,759)1,157,122(185,027)(16,022)(1,543)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of software
Amortization of goodwill
Amortization of customer-related assets
Amortization of trademark
Amortization of technology assets
Impairment loss
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Increase (decrease) in advances received
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of software
Proceeds from sales of real estate for rent
Purchase of investment securities
Proceeds from cancellation of insurance funds
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Proceeds from disposal of treasury shares
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

1,419,528(296,467)

Cash and cash equivalents at beginning of period

2,785,193

4,204,722

Cash and cash equivalents at end of period

4,204,722

3,908,254

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Reclassifications
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 introduced a Board Benefit Trust (BBT, hereafter, “the Plan”) for the purpose ofincreasing motivation for contributing to medium to long-term improvement in sales and earnings and an increase incorporate value. The Plan clearly links the compensation of directors with the JAST stock price. Furthermore, directors sharewith shareholders the benefits of a higher stock price as well as the r isk of a lower stock price.
1) Overview of transaction
This is a stock compensation plan under which directors receive stock compensation through a trust (a trust established under
the current system, hereafter “the Trust”). The Trust acquires JAST stock u sing cash contributions from JAST as the source offunds. Directors (excluding external directors; hereafter same unless indicated otherwise) receive stock compensation or amonetary amount equivalent to the market value of the stock in lieu of stock compe nsation (hereafter “JAST stock”) in
accordance with the rules on the stock compensation plan for directors. In principle, a director becomes eligible for stockcompensation only upon retirement.
2) JAST stock held by the trust
The book value (excluding associated expenses) of JAST stock held by the trust is shown as treasury shares in the net assets
section of the consolidated balance sheet. The BBT held 49,000 shares of JAST with a book value of 89.915 million yen as ofthe end of the previous fiscal year, and the BBT held 47,800 shares with a book value of 87.713 million yen as of the end of
the current fiscal year.

Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are the Company and subsidiaries’ constituent units for which separate financial
information is available and for which the Board of Directors performs periodic studies for the purposes of determining theallocation of resources and evaluating performance.
The Group has four reportable business segments: software business, GAKUEN business, system sales business and medical
big data business each of which conducts its business in line with the comprehensive strategy it has devised for products andservices in both domestic and overseas markets.
The software business handles the contracted software development. The GAKUEN business is engaged in development, sale,and provision of related services of operational reform packages for schools. The system sales business conducts IT
equipment sales, IT/telecom infrastructure construction. The medical big data business provides a full line of services
including automated inspection services for health insurance claims, data analysis and notification of the cost of medical ca re.
2. Calculation method for net sales, profit or loss, assets, liabilities, and other items for each reportable segment
The accounting method used for reportable business segments is generally the same as the methods listed in “Significant
Accounting Policies in the Preparation of Consolidated Financial Statements.”
Profits for reportable business segments are operating income figures.
Inter-segment sales and transfers are based on market prices.
3. Information related to net sales, profit or loss, assets, liabilities, and other items for each reportable segment
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Medicalbig data
business

Total

Amounts shown
Adjustment on consolidated(Note 1)
financial(Note 2)statements(Note 3)

Softwarebusiness

GAKUENbusiness

Systemsales
business

11,622,519

2,586,636

1,681,806

977,836

16,868,799-

16,868,799

66,676

4,448

4,316

-

75,441(75,441)-

11,689,195

2,591,085

1,686,123

977,836

16,944,240(75,441)

16,868,799

481,189

317,871

140,281(95,728)

843,6148,755

852,369

8,085,816

2,051,533

1,231,512

659,846

12,028,709

1,607,855

13,636,564

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
98,526
19,542
3,713
13,675
135,458
135,458
Increase in property, plantand equipment and intangible
92,47817,9703,222
12,899126,570
1,753
128,323
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

12,080,881

3,058,369

1,566,820 1,313,721 18,019,792

62,96737,39012,143,848

3,095,760

78,330711,038

94,91993,634

7,581,888

1,750,550

1,268,596

802,403

Total

Amounts shown
Adjustment on consolidated(Note 1)
financial(Note 2)statements(Note 3)

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets-

18,019,792

131,567(131,567)-

1,598,029 1,313,721 18,151,359(131,567)

18,019,792

977,922(7,112)970,809

11,403,439

1,584,902

12,988,341

31,208-Other items
Depreciation
135,365
15,2402,005
15,513
168,126
168,126
Increase in property, plantand equipment and intangible
79,08912,806914
22,768
115,577
115,577
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that ca nnot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.
4. Figures for the FY3/19 segment information are based on the revised method to reflect revie wed allocation of theacquisition cost arising from finalization of the provisional accounting treatment for business combinations,which is stated in “Notes to Consolidated Financial Statements, Business Combinations.”
Related information
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Net sales
Geographical information concerning sales to external customers in Japan is not presented since sales to externalcustomers exceeded 90% of net sales shown on the consolidated statement of income.
(2) Property, plant and equipment
Geographical information concerning property, plant and equipment is not presented since property, plant and equipment
in Japan exceed 90% of property, plant and equipment on the consolidated balance sheet.
3. Information by major client
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Company name
DUSKIN CO., LTD.

Net sales

Business segment

1,532,644 thousand yen

Software business

FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Company nameTIS Inc.

Net sales

Business segment

1,283,936 thousand yen

Software businessInformation related to impairment loss of non-current assets for each reportable segment
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
This information is omitted due to immateriality.
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Softwarebusiness

GAKUENbusiness

System sales
business

Medical big
data business(Thousands of yen)
Elimination or
Total
corporate

Impairment loss
329,999
Note: In the software business, there was an impairment loss of 329.999 million yen for customer-related assets.

329,999

Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Softwarebusiness
Amortization for the period

28,388GAKUENbusiness

System sales
business-

Medical big
data business--(Thousands of yen)
Elimination or
Total
corporate-

28,388

Balance at end of period
619,660
619,660
Note: Figures for FY3/19 are based on the revised method to reflect reviewed allocation of the acquisition cost arising fromfinalization of the provisional accounting treatment.
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
SoftwareGAKUEN
System sales
Medical big Elimination or
Total
businessbusinessbusinessdata businesscorporate
Amortization for the period

73,075----73,075

Balance at end of period

437,343

-

-

-

-

437,343

Notes: 1. In the software business, there was an impairment loss of 408.103 million yen for goodwill.
2. In software business, the Company purchased the stock of AG NET PTE. LTD. (AG NET) located in Singapore andmade it a consolidated subsidiary in the first quarter of FY3/20. Goodwill of 303.284 million yen emerged related tothe purchases. The amount of goodwill is based on the revised method to reflect reviewed allocation of theacquisition cost arising from finalization of the provisional accounting treatment.
Information related to gain on bargain purchase for each reportable segment
Not applicable.

Business Combinations
Business combination through acquisition
1. Summary of business combination(1) Acquired company and its business activities
AG NET PTE. LTD.
Business activities: Software development and consultation services(2) Reasons for acquisition
The JAST Group has been active in the ASEAN region, primarily at JAST TECHNIQUES PTE. LTD. in Singapore,
JASTEC (THAILAND) CO., LTD. in Thailand, and the Virtual Calibre Group (Malaysia). JAST believes this region isa highly attractive market because of the outlook for a continuation of rapid economic expansion and a growing middle
class that will create a large consumer market.
This inclusion of AG NET in the JAST Group will add new HRM products currently not covered i n our Group’s brandlineup, enabling multi-directional coverage of personnel, vacation requests, expense reimbursement workflows, salarycomputations, telework support, and employee performance management. We believe that adding AG NET to the JAST
Group will strengthen our business foundation not only in Singapore but throughout the ASEAN region and lead tobusiness expansion of our subsidiaries throughout the ASEAN region, thereby further enhancing the JAST Group’s
growth potential. Due to this outlook, the decision was made to acquire AG NET.
(3) Acquisition date
May 31, 2019 (stock acquisition date)June 30, 2019 (assumed acquisition date)(4) Legal form of acquisition
Acquisition of shares with cash

(5) Company’s name after acquisition
There is no change in the company’s name.
(6) Percentage of voting rights acquired
100%(7) Basis for choosing the company to acquire
JAST acquired the shares in exchange for consideration in cash.
2. Period of the acquired company’s performance included in the consolidated financial statements
From July 1, 2019 to December 31, 2019
3. Acquisition cost of acquired company and breakdown by type of consideration
Payment for the acquisition:

Cash486.526 million yen
486.526

Acquisition cost:

4. Details of major acquisition-related costs
Remuneration for advisory members and other related fees: 27.466 million yen
5. Goodwill resulting from the acquisition(1) Value of goodwill
455.805 million yen(2) Source of goodwill
The source is primarily the expectation of excess earnings power emerging from business development in the future.
(3) Amortization method and amortization period
Goodwill is amortized over ten years by the straight-line method.
6. Breakdown of assets acquired and liabilities assumed on the acquisition dat e
Current assets:

85.329 million yen

Non-current assets:

30.577 million yen

Total assets:

115.906 million yen

Current liabilities:

40.129 million yen

Non-current liabilities:

28.912 million yen

Total liabilities:

69.042 million yen

7. Estimated effect of the business combination on the consolidated statement of income if the business combination had been
completed at the beginning of the current fiscal year.
This information is omitted due to immateriality.
8. Amounts allocated to intangible assets other than goodwill, their breakdown by major categories, and method and period ofamortization(1) Amounts allocated to intangible assets and major categories
Technology assets:

70.507 million yen

Trademark right:

39.716 million yen

Customer-related assets:

73.537 million yen(2) Method and period of amortization and major categories
Technology assets are amortized over ten years by the straight-line method.
Trademark right is amortized over ten years by the straight-line method.
Customer-related assets are amortized over 6.5 years by the straight-line method.

Per-share Information

Net assets per share
Net income (loss) per share

FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

1,202.34

1,154.07

60.58(5.76)

Notes: 1. Diluted net income per share is not presented since the Company has no outstanding dilutive securities.
2. The basis of calculation is as follows.
(Thousands of yen)
FY3/19FY3/20(As of Mar. 31, 2019)(As of Mar. 31, 2020)
Net assets per share
6,418,472

6,218,217

Deduction on total net assets

37,01028,668(Non-controlling interests)(37,010)(28,668)

6,381,462

6,189,549

5,307,520 shares

5,363,246 shares

FY3/19(Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

317,986(30,675)--

317,986(30,675)

Total net assets on balance sheet

Net assets applicable to common shares
Number of common shares used in calculation of net
assets per share

Net income (loss) per share
Profit (loss) attributable to owners of parent
Amount not available to common shareholders
Profit (loss) attributable to owners of parent
applicable to common shares

5,248,998 shares
5,324,711 shares
Average number of shares outstanding during period
Note: The Company established a new Board Benefit Trust (BBT) in FY3/20. the Company’s stock remaining in the BBT(49,000 shares as of March 31, 2019 and 47,800 shares as of March 31, 2020) is included in treasury shares inshareholders’ equity and deducted from the number of shares outstanding at the end of the period that is used to
calculate net assets per share. Moreover, the BBT shares (15,573 shares in FY3/19 and 48,177 shares in FY3/20) are
included in treasury shares deducted from the number of shares used to calculate the averag e number of shares
outstanding during the period that is used to calculate net income per share.

Subsequent Events
Not applicable.
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.