August 12, 2021

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2022
(Three Months Ended June 30, 2021)[Japanese GAAP]
Listing: Tokyo Stock Exchange, First Section
Company name: Japan System Techniques Co., Ltd.
4323
URL: https://www.jast.jp
Stock code:
Representative:
Takeaki Hirabayashi, President and CEO
Hiroyuki Norimoto, General Manager of General Affairs Department
Contact:
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
August 13, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on August 12, 2021 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2021
(April 1, 2021 – June 30, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Profit attributable toowners of parent
Million yen
%
237
(140)
-

Ordinary income

Million yen%
Million yen%
Million yen%
Three months ended Jun. 30, 2021
4,900
342
348
Three months ended Jun. 30, 2020
3,746
(0.6)
(201)
(183)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2021:
285 (-%)
Three months ended Jun. 30, 2020: (165) (-%)
Diluted net income per
Net income per share
share
Yen
Yen
Three months ended Jun. 30, 2021
43.08
42.96
Three months ended Jun. 30, 2020(26.28)
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue
Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the threemonths ended June 30, 2021 incorporate this accounting standard and comparisons with the first quarter of the previous fiscal
year are omitted.

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Jun. 30, 2021
13,8157,443
53.6
1,307.16
As of Mar. 31, 2021
12,8616,850
53.0
1,265.96
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2021:
7,399
As of Mar. 31, 2021:
6,813
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020). All figures as of June 30, 2021 incorporate this accounting standard.

2. Dividends
1Q-endYen-

2Q-endYen
0.00

Fiscal year ended Mar. 31, 2021
Fiscal year ending Mar. 31, 2022
Fiscal year ending Mar. 31, 2022 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

0.00

Year-end
Yen
28.00

-

30.00

Total
Yen
28.00
30.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)
Net sales
Million yen

Operating income%

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

Ordinary income%

Million yen%

Yen

Full year
19,500
3.8
1,330
9.3
1,360
3.8
Note: Revisions to the most recently announced consolidated earnings forecasts: None%

Million yen

820

41.7

152.37

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

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2021:

5,709,930 shares

As of Mar. 31, 2021:

5,612,230 shares

As of Mar. 31, 2021:

230,423 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2021:

48,923 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2021:

5,519,393 shares

Three months ended Jun. 30, 2020:

5,362,514 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to theCompany’s management at the time the materials were prepared, but are not promises by the Company regarding future
performance. Actual results may differ materially from the forecasts. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements” on page 3
for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

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

2(2) Explanation of Financial Position

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

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

8(4) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Accounting Policies

9

Additional Information

10

Segment and Other Information

10

Business Combinations

11

1

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the Japanese economy was impacted by the continued effects of thegovernment’s repeated declaration of a state of emergency in certain areas and the enactmen t of priority measures
to combat the spread of COVID-19 infections. As a result, there are still concerns about a possible economic
downturn.
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 May 2021 figures), net sales continued to climb, rising 0.4%
year on year in fiscal 2020 compared with 4.0% annual growth in fiscal 2019. However, due to the current
increase in the impact of COVID-19 and other reasons, the outlook for the IT industry is extremely uncertain.
Consolidated sales and earnings of the Japan System Techniques Group (Japan System Techniques Co., Ltd.
(JAST) and its consolidated subsidiaries, hereafter “the Group”) in the first quarter posted net sales of 4,900
million yen (up 30.8% year on year), operating income of 342 million yen (vs. operating loss of 201 million yen
in the same period of the previous fiscal year), ordinary income of 348 million yen (vs. ordinary loss of 183
million yen in the same period of the previous fiscal year), and profit attributable to owners of parent of 237
million yen (vs. loss attributable to owners of parent of 140 million yen in the previous fiscal year).
Business segment performance was as follows.
In the software business (individualized contracted software development), orders from the manufacturing andtelecommunications industries and the finance/insurance/brokerage industry increased. As a result, net sales inthis business totaled 3,425 million yen (up 26.1% year on year) and the operating income was 161 million yen (vs.
operating loss of 148 million yen in the same period of the previous fiscal year ).
In the GAKUEN business (sale and related services of operational reform packages for sch ools), there wereincreases in IT equipment sales and sales of program products (PP) to universities. End user computing (EUC:
individualized contracted development of related systems) and implementation support service sales decreased.
Net sales in this business totaled 787 million yen (up 42.4% year on year) and the operating income was 169
million yen (vs. operating loss of 11 million yen in the same period of the previous fiscal year).
In the system sales business (IT equipment sales and IT/telecom infr astructure construction), sales in theuniversity and public sector categories increased. Net sales in this business totaled 328 million yen (up 39.0%
year on year) and operating income was 1 million yen (down 75.5% year on year).
In the medical big data business (inspections, analysis and related services for medical information data), sales of
support services for health insurance organizations decreased. Sales of analysis services and services for
notification of the cost of medical care and sales of automated inspection services for health insurance claims
increased. As a result, net sales in this business totaled 358 million yen (up 49.2% year on year) and operating
income was 9 million yen (vs. operating loss of 54 million yen in the same period of the previous fiscal year).
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the first quarter were 10,593 million yen, up 897 million yen from the end of theprevious fiscal year. This was mainly due to decreases in accounts receivable-trade and contract assets and workin process, and an increase in cash and deposits due to higher contract liabilities. Non-current assets were 3,221
million yen, up 56 million yen from the end of the previous fiscal year.
Current liabilities at the end of the first quarter were 4,752 million yen, up 364 million yen from the end of theprevious fiscal year. This was mainly due to an increase in accrued expenses, which is included in other, andcontract liabilities, and decreases in provision for bonuses, short-term borrowings and income taxes payable.
Non-current liabilities were 1,619 million yen, down 3 million yen from the end of the previous fiscal year.
Net assets at the end of the first quarter were 7,443 million yen, up 592 million yen from the end of the previous
fiscal year. This was mainly due to exercise of share acquisition rights.
2

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

Net assets increased as retained earnings were 81 million yen higher at the beginning of the fiscal year due to theapplication of the Accounting Standard for Recognition of Revenue.
2) Cash flows
Cash and cash equivalents increased 1,764 million yen from 4,853 million yen at the beginning of the current
fiscal year to 6,617 million yen at the end of the first quarter of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 1,808 million yen, a decrease of 116 million yen from 1,924
million yen provided in the same period of the previous fiscal year. This decrease was mainly due to increase s ininventories and contract liabilities, and a decrease in proceeds from the collection of trade receivables.
Net cash provided by investing activities totaled 5 million yen, an increase of 50 million yen from 45 million yen
used in the same period of the previous fiscal year. This was due to a decrease in purchase of investment
securities and an increase in proceeds from sales of investment securities.
Net cash used in financing activities totaled 82 million yen, a decrease of 69 million yen from 151 million yen
used in the same period of the previous fiscal year. This was due to repayments of short-term borrowings, andincreases in proceeds from disposal of treasury shares and proceeds from issuance of shares.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 13, 2021 forecasts for the fiscal year ending March 31, 2022: net sales of
19,500 million yen (up 3.8% year on year), operating income of 1,330 million yen (up 9.3% year on year),ordinary income of 1,360 million yen (up 3.8% year on year), and profit attributable to owners of parent of 820
million yen (up 41.7% year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)First quarter of FY3/22(As of Jun. 30, 2021)

FY3/21(As of Mar. 31, 2021)
AssetsCurrent assets
Cash and deposits

4,854,727

6,619,017

Notes and accounts receivable-trade
Notes and accounts receivable-trade, and contract
assetsMerchandise and finished goods

3,953,965--

3,403,614

185,543

148,728

527,715

111,254

2,544

3,424

Other

184,859

320,540

Allowance for doubtful accounts(13,034)(13,116)

9,696,321

10,593,464

Work in process
Raw materials and supplies

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

829,063

830,767

Accumulated depreciation(533,263)(544,115)

Buildings and structures, net

295,799

286,651

Land

142,361

142,361

Other

518,695

523,135

Accumulated depreciation(414,255)(423,956)

Other, net

104,440

99,178542,601

528,192

Goodwill

175,722

174,527

Customer-related assets

Total property, plant and equipment
Intangible assets

106,056

105,828

Trademark right

7,602

7,783

Technology assets

13,496

13,818

Software

68,32966,608

Other

7,626

7,626

378,834

376,193

Investment securities

632,126

622,113Retirement benefit asset

666,814667,529

Deferred tax assets

416,291

499,121

Guarantee deposits

439,769

441,039

Other

104,01097,885

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(15,208)(10,196)

Total investments and other assets

2,243,803

2,317,493

3,165,239

3,221,878

12,861,561

13,815,343

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22(Thousands of yen)First quarter of FY3/22(As of Jun. 30, 2021)

FY3/21(As of Mar. 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings

1,021,837

910,585

407,800

108,228

2,800

700

Income taxes payable

473,761

228,271

Advances received

605,148-

Contract liabilities-

1,317,082

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

885,138

361,163

62,319

7,068

12,797

26,395

Other916,547

1,793,083

4,388,151

4,752,578

84,22880,209

4,239

4,832

1,017,504

1,023,355

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

34,89030,575

Other482,171

480,614

1,623,034

1,619,587

6,011,185

6,372,165

1,076,669

1,144,829

Capital surplus

1,128,115

1,312,400

Retained earnings

4,605,874

4,772,715

Treasury shares(218,515)(90,493)

Total shareholders’ equity

6,592,143

7,139,451

Valuation difference on available-for-sale securities

186,775

178,849

Foreign currency translation adjustment(81,346)(28,085)

Remeasurements of defined benefit plans

115,566

109,615

Total accumulated other comprehensive income

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

Accumulated other comprehensive income

220,996

260,379

Share acquisition rights

5,530

3,545

Non-controlling interests

31,70539,801

Total net assets
Total liabilities and net assets

56,850,375

7,443,177

12,861,561

13,815,343

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(Thousands of yen)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)

Net sales

3,746,215

4,900,462

Cost of sales

3,017,984

3,629,283

Gross profit

728,230

1,271,179

Selling, general and administrative expenses

929,725

929,042

Operating income (loss)(201,495)

342,136

Interest income

5,718

1,541

Dividend income

3,469

2,766

Rental income

803

806

Non-operating income

Foreign exchange gains

2,599

-

Subsidy income

3,139

1,801

Other

3,428

1,973

Total non-operating income

19,158

8,888

722

408

-

603

Non-operating expenses
Interest expenses
Foreign exchange losses
Share issuance costs-

864

Rental expenses

127

-

Other

206

644

1,056

2,519

Ordinary income (loss)

Total non-operating expenses(183,393)

348,505

Profit (loss) before income taxes(183,393)

348,505

Income taxes(46,862)

103,503

Profit (loss)(136,531)

245,001

Profit attributable to non-controlling interests

4,396

7,211

Profit (loss) attributable to owners of parent(140,928)

237,7906Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(Thousands of yen)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(136,531)

245,001

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities

32,308(7,925)

Foreign currency translation adjustment(62,289)

54,145

1,492(5,951)Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(28,488)

40,268(165,020)

285,269(167,614)

277,173

2,594

8,095

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

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22(3) Quarterly Consolidated Statement of Cash FlowsFirst three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(Thousands of yen)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(183,393)

348,505

Depreciation

16,124

26,578

Amortization of software

3,969

5,695

Amortization of goodwill

14,274

9,296

Amortization of customer-related assets

6,634

4,902

925

235

Cash flows from operating activities
Profit (loss) before income taxes

Amortization of trademark
Amortization of technology assets
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in trade receivablesand contract
assetsIncrease (decrease) in advances received
Increase (decrease) in contract liabilities

1,642

418

(424,142)(524,262)

7,089

5,850

(195)

(715)

(9,188)(4,307)722

408

1,694,552--

808,673

672,828--

922,770

Decrease (increase) in inventories(227,887)

297,574

Increase (decrease) in trade payables(235,938)(114,634)

Other, net

853,300

484,015

Subtotal

2,191,318

2,271,004

Interest and dividends received

8,980

4,307

Interest paid

(739)

(444)

Income taxes paid

(274,813)(466,466)

Net cash provided by (used in) operating activities

1,924,746

1,808,401(16,995)(14,604)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

-

6,269

Purchase of software(10,530)(7,439)Purchase of investment securities(18,360)(298)

Proceeds from sale of investment securities-

22,601

Proceeds from refund of guarantee deposits

1,908

-

Payments of guarantee deposits(1,027)(921)

Proceeds from sale of membership

-

282

(237)

(237)

(45,241)

5,652

Net increase (decrease) in short-term borrowings

3,815(300,000)

Repayments of lease obligations(2,188)(6,647)

Repayments of long-term borrowings(2,100)(2,100)-135,625

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

Proceeds from issuance of shares
Proceeds from disposal of treasury shares-

242,854

Dividends paid

(151,509)(152,028)

Net cash provided by (used in) financing activities(151,982)(82,295)

Effect of exchange rate change on cash and cash equivalents(38,122)

32,501

Net increase (decrease) in cash and cash equivalents

1,689,399

1,764,259

Cash and cash equivalents at beginning of period

3,908,254

4,853,695

Cash and cash equivalents at end of period

5,597,654

6,617,955

8

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
JAST started to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) at the beginning of the first quarter of the current fiscal year. Based on this standard, revenue expected tobe received in exchange for the provision of goods and services is recognized when the control of the goods andservices is transferred to customers. As a result, the major change involves some contracts where sales wererecognized when a final acceptance inspection was performed in accordance with the applicable inspection
standards. For contracts where JAST has fulfilled its obligation to the customer over a specified period, theamount of progress of fulfilling the obligation is estimated, except when the period is extremely short, andrevenue based on the progress is recognized for that period. In addition, the total payment received from
customers for a product or service was recognized as revenue in prio r years. Now, for transactions where theGroup functions as an agent for the provision of a product or service to a customer, the amount paid to the
supplier of the product or service is deducted from the payment received from a customer and the resulting net
amount is recognized as revenue.
For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional
measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective applicati on of
the new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or
subtracted from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard
is then applied beginning with this amount of retained earnings. In addition, JAST has applied the method
prescribed in Paragraph 86, Article 1 of the Accounting Standard for Revenue Recognition, and accounted forcontract changes made prior to the beginning of the first quarter of the current fiscal year based on the contract
terms after reflecting all contract changes, and added or subtracted the cumulative effect of such changes toretained earnings at the beginning of the first quarter of the current fiscal year.
As a result, the application of the new standard resulted in reductions of 179,179 thousand yen in sales, 149,270
thousand yen in cost of sales, and 29,909 thousand yen each in operating income, ordinary income and profit
before income taxes. In addition, the new standard increased retained earnings at the beginning of the first quarterby 81,080 thousand yen.
“Notes and accounts receivable-trade” that was presented in the current assets section of the consolidated balance
sheet in the previous fiscal year is presented as “Notes and accounts receivable-trade, and contract assets,” and“Advances received” that was presented in the current liabilities section is presented as “Contract liabilities” fromthe first quarter of the current fiscal year. In accordance with the transitional measures prescribed in Paragraph89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been made to the prior year ’s
consolidated financial statements to conform to the new presentation. Furthermore, in accorda nce with thetransitional measures prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly Financial
Reporting (ASBJ Statement No. 12, March 31, 2020), JAST has not presented information on revenue fromcontracts with customers broken down for the first quarter of the previous fiscal year.
Application of the Accounting Standard for Measurement of Fair ValueJAST has applied the Accounting Standard for Measurement of Fair Value (ASBJ Statement No. 30, July 4, 2019)and other standards from the beginning of the first quarter of the current fiscal year.
JAST has applied the new accounting policies set forth by the Accounting Standard for Measurement of Fair
9

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

Value prospectively in accordance with the transitional measures in Paragraph 19 of the Accounting Standard for
Measurement of Fair Value and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019).
There is no effect of the application of these standards on the quarterly consolidated financia l statements.
Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on June 26, 2018 terminatedthe directors’ retirement benefit system and established a Board Benefit Trust (BBT) for the purpose of increasing
motivation for contributing to the medium to long-term growth of sales and earnings and an increase in corporate
value. The BBT plan clearly links the compensation of directors with the JAST stock price. Furthermore,
directors share with shareholders the benefits of a higher stock price as well as the risk of a lower stock price.
1) Overview
This is a stock compensation plan in which directors receive stock compensation through a BBT. The BBT
acquires JAST stock using cash contributions from JAST as the source of funds. Directors (excluding external
directors; same afterward unless indicated otherwise) receive stock compensation or a monetary amountequivalent to the market value of the stock in lieu of stock compensation in a ccordance with the rules on the stockcompensation plan for directors. In principle, a director becomes eligible for stock compensation only after theindividual is no longer a JAST director.
2) JAST stock held by the BBT
The book value (excluding associated expenses) of JAST stock held by the BBT is shown as treasury shares in the
net assets section of the consolidated balance sheet. The BBT held 47,800 shares with a book value of 87,713
thousand yen as of the end of the first quarter of the current fiscal year.
Segment and Other Information
Segment information
I. First three months of FY3/21 (Apr. 1, 2020 – Jun. 30, 2020)
1. Information related to net sales and profit or loss for each reportable segment
Systemsales
business(Thousands of yen)

Medicalbig data
business

Total

Amounts shownon quarterly
Adjustment
consolidated(Note 1)statement ofincome (Note 2)

Softwarebusiness

GAKUENbusiness

2,716,187

553,450

236,135

240,441

3,746,215-

3,746,215

14,683

495

1,727

-

16,906(16,906)-

2,730,871

553,945

237,863

240,441

3,763,121(16,906)

3,746,215

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total

Segment profit (loss)(148,012)(11,478)
6,621 (54,265) (207,134)
5,639(201,495)
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment profit (loss) is consistent with operating loss shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.

10Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

II. First three months of FY3/22 (Apr. 1, 2021 – Jun. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment
Systemsales
business(Thousands of yen)

Medicalbig data
business

Total

Amounts shownon quarterly
Adjustment
consolidated(Note 1)statement ofincome (Note 2)

Softwarebusiness

GAKUENbusiness

3,425,608

787,916

328,200

358,736

4,900,462-

4,900,462

14,35367

180-

14,601(14,601)-

3,439,962

787,984

328,380

358,736

4,915,063(14,601)

4,900,462

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total

Segment profit
161,272
169,647
1,625
9,334
341,878258
342,136
Notes:
1. Segment profit in the above adjustment represents eliminations for inter-segment transactions.
2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments
As described in Changes in Accounting Policies, JAST has applied the Accounting Standard for Revenue Recognition fromthe beginning of the first quarter of FY3/22 and changed the accounting method for revenue recognition. Accordingly, themethod for calculating segment profit has been changed as well.
The effect of this change was to decrease net sales and segment profit for the first three months of FY3/22 in the software
business by 40,233 thousand yen and 5,921 thousand yen, respectively, and by 89,661 thousand yen and 27,664 thousand yen,respectively, in the GAKUEN business. Furthermore, net sales and segment profit decreased 61,802 thousand yen and 4,487
thousand yen, respectively, in the system sales business, and increased 12,518 thousand yen and 8,164 thousand yen,respectively, in the medical big data business.

Business Combinations
Not applicableThis 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.

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