November 7, 2014

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2015
(Six Months Ended September 30, 2014)
Company name: Japan System Techniques Co., Ltd.
Stock code:
4323
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Director and CFO
Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:[Japanese GAAP]
Listing: Tokyo Stock Exchange, Second Section
URL: http://www.jast.jp
Tel: +81-6-4560-1000
November 10, 2014
Yes
Yes (for analysts)

Note: The original disclosure in Japanese was released on November 7, 2014 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Second Quarter Ended September 30, 2014 (April 1, 2014 – September 30, 2014)(1) Consolidated results of operations
Net sales
Million yen

Six months ended Sep. 30, 2014
Six months ended Sep. 30, 2013
Note: Comprehensive income (million yen)

(Percentages represent year-on-year changes)
Ordinary income
Net income

Operating income%

Million yen

%

5,424
8.3
78
5,007
6.7
(13)
Six months ended Sep. 30, 2014:
Six months ended Sep. 30, 2013:

Million yen-%

Million yen%

114 440.6
21 (31.5)
44 (up 180.2%)
15 (n.a.)

60
(14)

-

Net income per share

Diluted net income per
share

Yen

Yen

11.51
(3.08)-

Six months ended Sep. 30, 2014
Six months ended Sep. 30, 2013
(2) Consolidated financial position

Total assets

Net assets

Million yen

As of Sep. 30, 2014
As of Mar. 31, 2014
Reference: Shareholders’ equity (million yen)

Equity ratio

Million yen

8,617
8,817
As of Sep. 30, 2014:

Net assets per share
%

5,163
5,066
5,096

Yen

59.1
56.6
As of Mar. 31, 2014:

971.08954.534,992

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2014
Fiscal year ending Mar. 31, 2015
Fiscal year ending Mar. 31, 2015 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

0.00
0.00

-

25.00

25.00

-

25.00

25.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 – March 31, 2015)(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Net income per share%

Million yen%

Yen

Full year
11,900
9.9
525
22.8
555
17.1
Note: Revisions to the most recently announced consolidated earnings forecasts: None

Million yen%

Million yen%

Million yen

290

4.0

55.26

* 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 stock)1) Number of shares outstanding at the end of period (including treasury shares)
As of Sep. 30, 2014:

5,612,230 shares

As of Mar. 31, 2014:

5,594,230 shares

As of Mar. 31, 2014:

364,210 shares

2) Number of treasury shares at the end of period
As of Sep. 30, 2014:

364,210 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2014:

5,247,488 shares

Six months ended Sep. 30, 2013:

4,774,834 shares

Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly summary report is exempted from quarterly review procedures based on the Financial Instruments andExchange Act. At the time of disclosure, the review procedures for the quarterly financial statements have been completed.
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 Second Quarter of FY3/15

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. Matters Related to Summary Information (Notes)

5(1) Changes in Consolidated Subsidiaries during the Period

5(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

5(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

5

3. Important Information about Going Concern Assumption

5

4. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Six-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

11

Going Concern Assumption

11

Significant Changes in Shareholders’ Equity

11

Segment and Other Information

11

5. Supplementary Information

121

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, consolidated results of the Japan System Techniques Group (Japan
System Techniques Co., Ltd. and its consolidated subsidiaries, hereafter “the Group”) showed higher sales andprofits as follows: net sales of 5,424 million yen (up 8.3% from the same period of the previous fiscal year),
operating income of 78 million yen (vs. operating loss of 13 million yen in the same period of the previous fiscal
year), ordinary income of 114 million yen (up 440.6% from the same period of the previous fiscal year), and net
income of 60 million yen (vs. net loss of 14 million yen in the same period of the previous fiscal year). Results bysegment were as follows.
In the software business (individualized contracted software development), net sales and profits increased. Orders
from medical institutions, the public sector and manufacturing industries declined, but increased from theservice/retail industry, the finance/insurance/brokerage industry, and the telecommunications industry. Net sales
totaled 3,875 million yen (up 20.3% from the same period of the previous fiscal year) and operating income
totaled 143 million yen (up 444.6% from the same period of the previous fiscal year).
In the package business (development, sale and related services of operational reform packages for schools), net
sales and profits also increased. Operation services and implementation support decreased, but end user
computing (EUC: contracted development of package-related systems) and IT equipment sales increased. Net
sales totaled 978 million yen (up 30.1% from the same period of the previous fiscal year) and operating income
totaled 50 million yen (up 514.5% from the same period of the previous fiscal year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construction), net sales and profits
decreased. Orders from system integration (SI) projects for public sectors, and equipment sales to universities
declined. As a result, net sales totaled 415 million yen (down 55.5% from the same period of the previous fiscal
year), and operating loss totaled 39 million yen (vs. operating income of 40 million yen in the same period of theprevious fiscal year).
Lastly, in the medical big data business (inspection, analysis and related services of medical information), net
sales totaled 155 million yen (up 50.9% from the same period of the previous fiscal year), and operating loss
totaled 76 million yen (vs. operating loss of 88 million yen in the same period of the previous fiscal year). Thiswas due to the expansion of notification and data analysis services, and cloud services for checking service
providers in addition to automated inspection services for health insurance claims.
Features of the Group’s quarterly results
A feature of the Group’s software, package and systems sales businesses is that the delivery inspection period of
most customers concentrates in March, the last month of the fiscal year for most companies, and then in
September, the last month of the second quarter. This means that the Group’s earnings in the first and third
quarters tend to be much smaller than in the second and fourth quarters.
(2) Explanation of Financial Position
1) Balance sheet position
The balance of current assets at the end of the first half of the current fiscal year was 6,363 million yen, down 199
million yen from the end of the previous fiscal year. This was mainly due to an increase in work in process and adecrease in cash and deposits. The balance of non-current assets was 2,253 million yen at the end of the first half, down
0 million yen from the end of the previous fiscal year. This was mainly due to an increase in net defined benefit asset
and a decrease in deferred tax assets.
The balance of current liabilities at the end of the first half was 2,302 million yen, down 62 million yen from the end of
the previous fiscal year. This was mainly due to an increase in short-term loans payable, and decreases due to payments
for income taxes paid and notes and accounts payable-trade. The balance of non-current liabilities was 1,151 million
yen at the end of the first half, down 235 million yen from the end of the previous fiscal year. This was mainly due to2

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

decreases in net defined benefit liability and provision for directors’ retirement benefits following the retirement of
directors.
The balance of net assets was 5,163 million yen at the end of the first half, up 97 million yen from the end of theprevious fiscal year. This was mainly due to an increase in retained earnings.
2) Cash flows
Cash and cash equivalents decreased 388 million yen from 2,144 million yen at the start of the current fiscal year to1,755 million yen at the end of the first half of the current fiscal year.
Cash flows by category were as follows.
Cash flows used in operating activities totaled 618 million yen, a decrease of 757 million yen from 139 million yen
provided in the same period of the previous fiscal year. This was mainly due to a decrease in income from notes andaccounts receivable-trade, and an increase in outlays for inventories, while there was an increase in income before
income taxes and minority interests, and a decrease in outlays for notes and accounts payable-trade.
Cash flows used in investing activities totaled 72 million yen, a decrease of 45 million yen from 26 million yen
used in the same period of the previous fiscal year. This was mainly due to a decrease in income from collection ofguarantee deposits, while there was a decrease in outlays for the purchase of investment securities.
Cash flows provided by financing activities totaled 304 million yen, an increase of 157 million yen from 147 million
yen provided in the same period of the previous fiscal year. This was mainly due to an increase in short-term loans.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
In the first half of the current fiscal year, the Japanese economy remained on a gradual recovery path. However, arisk of economic stagnation or a downturn remains because of the prolonged falling demand following the April
2014 consumption tax hike and weakness in global economies.
In the IT industry in Japan, according to latest statistics in “Survey of Selected Service Industries” by the Ministry of
Economy, Trade and Industry (the final August figures), net sales began to rise on a year-on-year basis from October
2011 after declining for many years. Since then, net sales have continued to climb as the IT industry as a whole stages arecovery. However, the recovery is still weak.
The Group will be guided by the fiscal year’s slogan of “act with thought and speed.” Everyone at the Group has astrong commitment to adapt swiftly to changes involving clients, technologies and markets. The objective is to achieve
consistent growth in association with the shift from the previous business model centered on contracted development
activities. The Group is establishing a business model in which we take our own initiatives with a central focus on
proprietary brand products.
Structural reforms have established a framework where executive officers oversee each business unit and where the
newly established Management Planning Department oversees implementation of group business strategies. In addition,a global management executive has been appointed to take the lead in the full-scale expansion of activity by the Group
companies and the start of operations in China and other countries. Strategies in each business unit are as follows.
In the software business, a regional-based business structure has been established with the head offices in Tokyo andOsaka. There are three business divisions in the Tokyo head office: the division of contracted development operations
that has been reorganized into three units, each specializing in a particular field; the convergence business division
which is an independent division as in the previous fiscal year; and the sales division. At the Osaka head office,operations have been realigned into three business divisions, each specializing in a particular field. To build new profit
centers, the BankNeo business has become a separate business division of the financial-related business and has beenrealigned into two business divisions with the Financial Business Department, which consists of three regional–based
departments. The aim of this reorganization is to support consistent growth in earnings.
In the package business, the Group established business divisions in the greater Kanto and greater Kansai to localize
operations and firmly expand its market share in each region. Also, the Group plans to develop next-generation

3

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

mainstay products, enter the education market and grow faster in China. Furthermore, we will continue to work on
making the school operations reform package GAKUEN the dominant brand in the education market in Japan and othercountries.
In the system sales business, the Group will focus on expanding business from core clients and acquiring new clients inhigh-margin SE services, and new solutions utilizing security technology to build a new business platform and maintainearnings expansion.
Lastly, in the medical big data business, the Group will work to expand cloud services for claims checking service
providers, and also strengthen the sales and service organizations in the Tokyo and Osaka regions in order to capture
more orders and improve productivity.
Based on the above, we expect increases in sales and profits for the fiscal year ending March 31, 2015; net sales of
11,900 million yen (up 9.9% from the previous fiscal year), operating income of 525 million yen (up 22.8% from theprevious fiscal year), ordinary income of 555 million yen (up 17.1% from the previous fiscal year), and net income of
290 million yen (up 4.0% from the previous fiscal year).

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

2. Matters Related to Summary Information (Notes)(1) Changes in Consolidated Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ
Guidance No. 25, May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in the mainclauses of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on
Accounting Standard for Retirement Benefits. Accordingly, the Company reviewed the methods for calculating
retirement benefit obligations and service costs, and revised the method of attributing estimated retirement benefit
obligations to periods from the straight-line basis to the benefit formula basis, and revised the method of determining
the discount rate from the method using the approximate number of years of expected average length of the remaining
service period of employees to the method using a single weighted average discount rate.
For the application of these accounting standards, etc. in accordance with the transitional accounting treatments set forthin Paragraph 37 of the Accounting Standard for Retirement Benefits, the adjustments associated with the change incalculation methods of retirement benefit obligations and service costs are recorded in retained earnings at the
beginning of the first half of the current fiscal year.
The result was decreases of 97,473 thousand yen in deferred tax assets and 169,824 thousand yen in net defined
benefit liability, and increases of 103,978 thousand yen in net defined benefit asset and 176,328 thousand yen inretained earnings at the beginning of the first half of the current fiscal year.
The effect of this change was to increase operating income, ordinary income and income before income taxes andminority interests by 2,940 thousand yen each in the first half of the current fiscal year.
3. Important Information about Going Concern Assumption
Not applicable.

5Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
FY3/14(As of Mar. 31, 2014)(Thousands of yen)
Second quarter of FY3/15(As of Sep. 30, 2014)

AssetsCurrent assets
Cash and deposits

3,319,585

2,935,776

Notes and accounts receivable-trade

2,607,749

2,668,089

Merchandise and finished goods

97,394122,470

Work in process

167,776

242,959

2,347

4,290

Deferred tax assets

259,362

254,260

Other

112,940

139,158

Allowance for doubtful accounts(3,863)(3,149)6,563,292

6,363,856

551,886

565,112

Accumulated depreciation(270,155)(289,906)

Buildings and structures, net

281,730

275,206

142,361

142,361

Raw materials and supplies

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

Land
Other

252,174

256,248(171,771)(181,903)

80,402

74,344504,495

491,912Goodwill

27,023

22,865

Software96,422

88,478

Other

7,189

7,189

130,635

118,533

Investment securities

362,629

361,223

Net defined benefit asset

257,001

368,321

Deferred tax assets

234,645

105,573

Guarantee deposits

299,440

342,446

Other

519,352

519,514

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(54,288)(54,288)

Total investments and other assets

1,618,782

1,642,791

2,253,912

2,253,238

8,817,204

8,617,094

Total non-current assets
Total assets

6Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15(Thousands of yen)
Second quarter of FY3/15(As of Sep. 30, 2014)

FY3/14(As of Mar. 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

906,653694,738-

428,947

2,400

2,400

Income taxes payable

293,658

21,287

Provision for bonuses

531,526

428,406

Provision for directors’ bonuses

28,477

12,003

Other

601,663

714,376

2,364,379

2,302,160

Total current liabilities
Non-current liabilities
Long-term loans payable

1,800

600

Provision for directors’ retirement benefits

422,029

339,431

Net defined benefit liability

903,730

746,941

Other

58,85664,148

1,386,415

1,151,121

3,750,795

3,453,281

Capital stock

1,071,446

1,076,669

Capital surplus

1,033,084

1,038,308

Retained earnings

3,025,811

3,131,770

Treasury shares(266,539)(266,539)

Total shareholders’ equity

4,863,803

4,980,209

Valuation difference on available-for-sale securities

52,19150,466

Foreign currency translation adjustment(14,936)(16,202)

Remeasurements of defined benefit plans

91,15081,762

Total accumulated other comprehensive income

128,405

116,026

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

Accumulated other comprehensive income

Subscription rights to shares

514-

Minority interests

73,686

67,577

Total net assets

5,066,409

5,163,813

8,817,204

8,617,094

Total liabilities and net assets

7Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/14(Apr. 1, 2013 – Sep. 30, 2013)(Thousands of yen)First six months of FY3/15(Apr. 1, 2014 – Sep. 30, 2014)

Net sales

5,007,143

5,424,082

Cost of sales

4,137,175

4,371,897

Gross profit

869,967

1,052,184

Selling, general and administrative expenses

883,930

973,245

Operating income (loss)(13,962)

78,939Interest income

4,862

5,623

Dividend income

1,563

3,203

Non-operating income

Rent income

7,684

7,776

Subsidy income

19,437

15,576

Other

7,566

11,133

Total non-operating income

41,11443,312Non-operating expenses
Interest expenses

818

517

Rent expenses

4,077

5,856

Other

1,077

1,388

Total non-operating expenses

5,974

7,762

21,177

114,489

Income before income taxes and minority interests

21,177

114,489

Income taxes

36,03954,746

Income (loss) before minority interests(14,861)

59,743

Ordinary income

Minority interests in loss
Net income (loss)

8

(154)

(637)

(14,707)60,381

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/14(Apr. 1, 2013 – Sep. 30, 2013)(Thousands of yen)First six months of FY3/15(Apr. 1, 2014 – Sep. 30, 2014)(14,861)

59,743

Valuation difference on available-for-sale securities

22,379(1,725)

Foreign currency translation adjustment

8,429(3,942)-(9,388)30,809(15,056)

15,94744,686

Income (loss) before minority interests
Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

10,16848,001

Comprehensive income attributable to minority interests

5,778(3,314)9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/14
First six months of FY3/15(Apr. 1, 2013 – Sep. 30, 2013) (Apr. 1, 2014 – Sep. 30, 2014)
Cash flows from operating activities
Income before income taxes and minority interests

21,177

114,489

Depreciation

36,05035,575

Amortization of software

5,550

12,361

Amortization of goodwill

4,157

4,157

(32,908)(103,104)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits(1,651)-

Decrease (increase) in prepaid pension costs(7,854)-

Increase (decrease) in net defined benefit liability-

13,290Decrease (increase) in net defined benefit asset-(7,341)(6,426)(8,826)

818

517

Decrease (increase) in notes and accounts receivable-trade597,816(61,527)

Increase (decrease) in advances received

170,626

220,425

Decrease (increase) in inventories

137,729(104,747)

Increase (decrease) in notes and accounts payable-trade(479,641)(211,890)

Other, net(167,416)(248,095)

Subtotal

278,027(344,715)

6,205

8,687

Interest and dividend income
Interest expenses

Interest and dividend income received
Interest expenses paid

(914)

(574)

Income taxes paid

(143,791)(281,671)

Net cash provided by (used in) operating activities

139,527(618,274)

Decrease (increase) in time deposits(6,748)(6,587)Purchase of property, plant and equipment(10,644)(15,465)

Purchase of software(24,558)(4,417)Purchase of investment securities(101,030)(1,272)

8,642-

Cash flows from investing activities

Proceeds from cancellation of insurance funds
Payments for guarantee deposits(509)(45,630)

108,079

1,606

(135)

(1,077)(26,905)(72,844)

Net increase (decrease) in short-term loans payable

248,831428,947

Repayments of long-term loans payable(1,200)(1,200)

Proceeds from issuance of common shares

20,248

9,932

(44)

-

(119,104)(130,750)(1,283)(2,435)

(120)

(134)

147,327

304,359

3,004(1,807)

Net increase (decrease) in cash and cash equivalents

262,953(388,566)

Cash and cash equivalents at beginning of period

1,609,962

2,144,070

Cash and cash equivalents at end of period

1,872,916

1,755,504

Proceeds from collection of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Significant Changes in Shareholders’ Equity
Not applicable.

Segment and Other Information
Segment information
I. First six months of FY3/14 (Apr. 1, 2013 – Sep. 30, 2013)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

Packagebusiness

System sales Medical big
business data business

Total(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Net sales
1. External sales
3,219,944
752,046
931,845
103,307
5,007,143
5,007,143
2. Inter-segment sales
5,308
20,71426,022(26,022)and transfers
Total
3,225,252
752,046
952,559
103,307
5,033,166(26,022)
5,007,143
Segment profit (loss)
26,424
8,268
40,028(88,683)(13,962)(13,962)
Notes: 1. There is no adjustment to segment profit or loss because all of the operating expenses are allocated to eachreportable segment.
2. Segment 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.
II. First six months of FY3/15 (Apr. 1, 2014 – Sep. 30, 2014)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

Packagebusiness

System sales Medical big
business data business

Total(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Net sales
1. External sales
3,875,016
978,152
415,066
155,846
5,424,082
5,424,082
2. Inter-segment sales
30,23056,53386,763(86,763)
and transfers
Total
3,905,246
978,152
471,599
155,846
5,510,845(86,763)5,424,082
Segment profit (loss)
143,91450,805(39,364)(76,416)
78,93978,939Notes: 1. There is no adjustment to segment profit or loss because all of the operating expenses are allocated to eachreportable segment.
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
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ)
Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25,
May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in the main clauses of Paragraph 35 of the
Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits.
Accordingly, the Company reviewed the methods for calculating retirement benefit obligations and service costs, and revised themethod of attributing estimated retirement benefit obligations to periods from the straight-line basis to the benefit formula basis,and revised the method of determining the discount rate from the method using the approximate number of years of expected
average length of remaining service period of employees to the method using a single weighted average discount rate. The effectof this change on segment profit is insignificant.

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Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/15

5. Supplementary Information
Goods Manufactured, Orders Received and Sales(1) Goods Manufactured
Goods manufactured in the period under review are broken down by segment as follows.
Operating segment

First six months of FY3/15(Apr. 1, 2014 – Sep. 30, 2014)(Thousands of yen)
Year-on-year (%)

Software business

3,238,124

121.6

Package business

585,416

106.2

System sales business

380,074

48.4

Medical big data business

168,281122.5

4,371,897

105.7

Total

Notes: 1. The above amounts are based on cost of sales; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.
(2) Orders Received
Orders received in the period under review are broken down by segment as follows.
Operating segment

Orders received

Year-on-year (%)(Thousands of yen)Order backlog

Year-on-year (%)

Software business

4,055,953

120.4

1,227,795

82.4

Package business

1,322,362

158.3

742,821

149.8

System sales business

533,28955.2

273,125

157.6

Medical big data business

110,613159.6

157,56165.5

6,022,218

115.0

2,401,302

100.1

Total

Notes: 1. The above amounts are based on selling prices; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.
(3) Sales
Sales in the period under review are broken down by segment as follows.
First six months of FY3/15
Operating segment(Apr. 1, 2014 – Sep. 30, 2014)
Software business
3,875,016(Thousands of yen)
Year-on-year (%)
120.3

Package business

978,152

System sales business

415,066

44.5

Medical big data business

155,846150.9

5,424,082

108.3

Total

130.1

Notes: 1. Inter-segment transactions have been eliminated.
2. The following table indicates sales amounts to major customers and their ratios to total sales amount.
(Thousands of yen)First six months of FY3/14
First six months of FY3/15(Apr. 1, 2013 – Sep. 30, 2013)(Apr. 1, 2014 – Sep. 30, 2014)
Customers
Amount%Amount%NTT COMWARECORPORATION (Note 4)

338,115

6.8

526,127

9.7

DUSKIN CO., LTD.

311,693

6.2

325,693

6.0

TIS Inc.

220,510

4.4

259,925

4.8

3. The above amounts do not include consumption taxes.
4. On July 1, 2014, NTT COMWARE CORPORATION merged its five regional group companies including NTT
COMWARE WEST CORPORATION. Accordingly, total sales amount of NTT COMWARE CORPORATION includes
results of NTT COMWARE WEST CORPORATION.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared inaccordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an
English translation.

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