News Release Dated November 24, 2021
Company: Japan System Techniques Co., Ltd.
Representative: Takeaki Hirabayashi, President and CEO
Stock code: 4323, Tokyo Stock Exchange, First Section
Contact: Hiroyuki Norimoto,General Manager of General Affairs Department
Tel: +81-6-4560-1000

Plan for Compliance with Listing Maintenance Criteria in the New Market Segment
Japan System Techniques Co., Ltd. (JAST) has today submitted an application to select the Prime Market
in relation to the review of the market classification of the Tokyo Stock Exchange, Inc. scheduled forApril 2022. As JAST does not meet the listing maintenance criteria for the Prime Market as of the record
date for transition (June 30, 2021), JAST has prepared a plan to meet the listing maintenance criteria forthe new market segment, as set out below.
1. JAST’s status of compliance with the listing maintenance criteria, and the planning period
The status of JAST’s compliance with the listing maintenance criteria of the Prime Market as of therecord date for the transition was as follows, and the criteria for the market capitalization of tradable
shares was not met. JAST is taking steps to ensure that, in the period from the date of submission of theplan until March 2024, the market capitalization of its tradable shares will satisfy the criteria for
maintaining its listing.
Number of
tradable shares(units)Marketcapitalization of
tradable shares(billion yen)

Ratio oftradable shares(%)

Average daily
trading value(billion yen)

2,556

30,061

4.6

53.5

0.07

800

20,000

10.0

35

0.02

-

-

〇

-

-

Number ofshareholders
Status of JAST as of
the transition dateListing maintenancecriteria
Items included in
the plan*The status of JAST’ conformity is calculated based on the distribution of JAST's share certificates andother securities, and on other information available to the Tokyo Stock Exchange as of the record date.
2. Basic policy, issues, and initiatives for compliance with the listing maintenance criteria (market
capitalization of tradable shares)
Please refer to “Plan for Compliance with Listing Maintenance Criteria in the New Market Segment ”.
As described in “1. Basic Policy for Compliance with the Listing Maintenance Criteria (1)” on page 2 ofthe plan, the market capitalization of tradable shares (as calculated by JAST) was 6.7 billion yen at theend of September 2021, and reached 10 billion yen as of November 19, 2021, reflecting the recent rise in
JAST’s share price and the increase in the ratio of tradable shares. At present, we believe that we are on
the borderline of “conformity” with the listing maintenance criteria. Henceforth, JAST will continue tomaintain a market capitalization of 10 billion yen in tradable shares and a stable presence in the Prime
Market in accordance with said plan.

TSE, First Section Stock code: 4323
November 24, 2021

Plan for Compliance with Listing MaintenanceCriteria in the New Market Segment
Japan System Techniques Co., Ltd.

Take on Future Challenges.
©2021 Japan System Techniques Co., Ltd.

Contents

1.

Basic Policy for Compliance with
Listing Maintenance Criteria

2.

Issues and Initiatives forCompliance with Listing
Maintenance Criteria

3. Milestones for Major Measures
あ1©2021 Japan System Techniques Co., Ltd.

1. Basic Policy for Compliance with Listing Maintenance Criteria (1)Transitioning to the Prime Market on April 4, 2022
We plan to continue to meet the criteria for the market capitalization of tradable shares and to establish
a stable presence in the market
Number ofshareholders

Number of tradable
shares (units)

Market capitalizationof tradable shares(billions of yen)

Ratio of tradable
shares (%)

Average daily tradingvalue(billions of yen)

Status of JAST as of the end ofJune 2021 (*1)

2,556

30,061

4.6

53.5

0.07

Status of JAST as of the end of
September 2021 (*2)

2,380

35,820

6.7

57.7

-

Status of JAST as of November
19, 2021 (*3)

2,380

42,028

10.0

67.7

-

Listing maintenance criteria

800

20,000

10.0

35.0

0.02

○

○

Conformity status

○

○

×

*1. JAST's status as of the end of June 2021 is calculated based on the distribution of JAST's share certificates and other securities available to the Tokyo Stock Exchange as of the record date (June 30, 2021).
*2. JAST's status as of the end of September 2021 is calculated by JAST (average daily trading value is omitted; share price is calculated using the average daily closing price for the month prior to the end of
September 2021).
*3. JAST's status as of November 19, 2021 is calculated by JAST (average daily trading value is omitted, the number of shareholders is the same as at the end of September, and the number of tradable sharesand the ratio of tradable shares have been changed from those at the end of September to current shares by adding JAST's Employee Shareholding Association (10.0%) to liquid shares (disclosed in a timely
manner in the “Announcement of Changes in Major Shareholders” dated November 1, 2021). The share price is calculated based on the average of the daily closing prices for the month prior to November
19, 2021.)2©2021 Japan System Techniques Co., Ltd.

1. Basic Policy for Compliance with Listing Maintenance Criteria (2)We aim to achieve a market capitalization of tradable shares of 11 billion yen by the end of
March 2024
As of JAST record
date (*1)

Target for the year
ending March 2024

Average of peer
companies (*2)

Tokyo Stock ExchangeFirst Section
Tokyo Stock Exchange
Information
First Section Average
Technology Industry(*3)
Average (*3)

PER(times)

14.1

18.0

27.2

27.7

26.3

PBR

(times)

1.1

1.8

3.4

2.7

1.2

EPS

(yen)

107.95165.00115.42

92.81

91.97

Market capitalization (billions of yen)

8.6

18.3

Market capitalization(billions of yen)of tradable shares

4.6

11.0

Ratio of tradable
shares (%)

53.5

60.0

（％）

*1. As of JAST record date: PER, PBR and EPS are actual figures for the fiscal year ended March 2021; market capitalization, market capitalization of tradable shares and tradable shares ratio are as of
the reference date (end of June 2021).
*2. Average of peer companies (PER, PBR, EPS): Average of selected 84 peer companies (TSE1, TSE2, JASDAQ) with sales between 10 and 60 billion yen, as of the end of March 2021 (calculated by
JAST)*3. TSE First Section Information Technology Industry Average and TSE First Section Average (PER, PBR, EPS): as of the end of June 2021.

3©2021 Japan System Techniques Co., Ltd.

Contents

1.

Basic Policy for Compliance with
Listing Maintenance Criteria

2.

Issues and Initiatives forCompliance with Listing
Maintenance Criteria

3. Milestones for Major Measures
あ4©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria
Implementing various initiatives with a view to achieving performance growth andincreasing share price evaluation index, leading to an increase in the market capitalizationof tradable shares

Demand••Net sales : ¥30.0 billion
Ordinary profit: ¥3.0 billion

Share price evaluation index•••

SupplyIncrease in EPS

Increase in PER

Dividend policy
Strengthening IR activities
Branding strategy (PR activities)

Market supply of our shares•

Increase the supply of tradable
sharesIncrease in ratio oftradable shares

Increase in market capitalizationof tradable shares

Performance growth5©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(1) Performance growth (performance targets)

30.00

300

40

35

Annual growth rate

250

9.8%

30

18.79

200

25

Annual growth rate

18.0%

150

11.82

Net sales

20

289.9

1.31

100
(Billions of yen)

15

Annual growth rate
50
Ordinary profit

0.44(Billions of yen)

EPS
(Yen)

0

107.9550

FY3/21

FY3/16
ソフトウェア事業
Software business

7.6

Sales
composition (%)

10

21.8%

ソフトウェア事業
Software business

7.8

GAKUEN business
GAKUEN事業
Medical big databusiness

医療ビッグデータ事業
システム販売事業
System sales business

FY3/26GAKUEN business
GAKUEN事業
17.1
67.5

Medical big databusiness

医療ビッグデータ事業
システム販売事業
System sales business

8.4

8.8

16.3

66.5

6
©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(2) Performance growth (business strategy by segment 1/2)
a. System integration service
Redefine our portfolio and clarify our strengths
Evolve into a high value-added business through "DX Collaborative development”(1) Software business• Redefine our business portfolio into the following three categories- SI business: Expand high-value-added business domain by promoting proposal-based "DX collaborative development”- Solution business: Expand customer base with pinpoint solutions- Service business: High value-added business centered on data science and consulting(1) - a.
SI
DX
collaborative
development

Solutions

SI

Servicesb. BankNeo
Dominate the market with niche and top solutions
Focus on all financial institutions in Japan• Recent new solution is a big hit and has been adopted by over 50 banks + Expand the market to major city banks• Continuously release niche solutions, aiming for adoption by all financial institutions• Contribute to the growth of the financial market by promoting full cloud computing and using DX technology to
improve operations

c. Global
Horizontal deployment of ASEAN solutions
Activate synergies and lay the foundation for further expansion(1) - b.
Expand customer basewith new solutions

Number ofbanks thathave adopted
our solutions• Start horizontal deployment of products (AG HRM/SAP/mcframe) that were Thailand, Singapore, and Malaysia specific across ASEAN• Strengthen the functions of JAST brand “AG HRM” solutions to become a comprehensive HRM solutions company

7©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(3) Performance growth (business strategy by segment 2/2)
(2) GAKUEN business
Further develop markets and businesses through new services and new products
Become a leading company in the Education DX market• Expand sales of existing businesses by releasing new RX series products

Use new and derivative
businesses to increase
sales
Use RX series products +existing businesses toincrease sales(2)• Develop comprehensive services for DX in the higher education sector that go beyond IT services• Expand customer base by expanding subscription services

Net sales(3) Medical big data business
Become a leader in the data health field with an overwhelming number of receipts
processed
Promote alliances and expand business models such as data consulting and BtoC
• Establish a position as Japan's top data provider with an overwhelming number of receipts processed• Achieve the highest share of the data health market by utilizing big data and strengthening the proposal capability of professionals(3)

Sales from alliances andB-to-C and other new
businesses

Increase in data analysis
and utilization services• Expand high value-added peripheral businesses such as data consulting and BtoC healthcare business(4) System sales business
Strengthen business synergies and transform into a highly profitable businessfrom insurance
Net sales Revenue
claims checking service• Strengthen synergies with other businesses by subdividing business segments• Expand the data center business in the education market by promoting collaboration with the GAKUEN business• Improve profitability by focusing on value-added service businesses

8©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(4) Performance growth (M&A/Alliance Strategy)
M&A

Alliances

More M&A in Japan and other countries to combine theresources of companies in the IT and other industries with
JAST IT for the purposes of (1) creating new markets in Japanand (2) expansion in terms of products and regions served
along with an increase in synergies.

Planning on using many alliances for starting new businesses
and the growth of activities associated with these new
businesses. Another goal is the commercialization of
innovative ideas within JAST.

Domestic
Considering M&A with companies in otherindustries too. Using JAST technologies supports
the DX and creates opportunities for creating new“blue ocean” markets.

New businesscreation

Derivative
business creation

GlobalSeeking M&A opportunities that can increase sales
and earnings of the entire JAST Group, such as byenlarging the product line up, extending operations
to new areas or expanding sales channels.

• Alliances• In-house ventures
9©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(5) Dividend policy
Work to increase the payout ratio by introducing a performance-linked element to ourdividend policy, which has traditionally focused on stability.

Payoutratio

FY3/21(Results)

FY3/24(Forecast)

26％

33％
Shareholders

Concept

Based on the JAST philosophy of “being a source of benefits for everyone,” profit after taxes (benefits forsociety) are evenly distributed among shareholders (dividends), employees (retained earnings), andcustomers (investments for products and services) (1/3≒33%).

1/3

1/3
ProfitSociety

Customers 1/3 Employees

10©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(6) Strengthen IR activities
Globalize IR activities to reach out to overseas investors and digitalize IR events to makethem the new normal

Globalization
Speed up the release of IR documents
in English＋
Expand the scope of data disclosure
in English
Expand information distribution
network to domestic and overseas
investors(in conjunction with PR activities)

Overseas
investors

Institutional
investors

Individual
investors

The New Normal
Hold more IR events
Shift to webcasting and other online
formats

Other IRenhancements
Enhance the quality of IR materials• Expand the scope of the mediumterm management plan
• Growth strategies by business• DX, SDGs and ESG initiatives

11©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(7) Branding strategy (PR activities)
Accelerate the promotion of outer branding by raising awareness as a growing DX company
and increasing synergies with IR activities

Socialactivities
Corporate
identity- Promote corporate
slogan- Distribute a unified
designGlobalConstantly distribute information
about activities involving theSDGs, CSR, ISO, the health andproductivity management andother important social programs

Increase English-language
pages on the corporatewebsitePR

Image

Expand the PR
information distribution
network (linked to IR)

Promote JAST as a growing
DX company

12©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(8) Increase the supply of tradable shares
Increase liquidity by converting non-tradable shares into tradable shares and splitting
shares to increase the supply of tradable shares

Increase supply

Convert nontradable shares
into tradable
sharesStable major
shareholders

Initiatives to increase
tradable shares

Stock split

Increase the volumeof tradable shares+
Increase the numberof investors

13©2021 Japan System Techniques Co., Ltd.

2. Issues and Initiatives for Compliance with Listing Maintenance Criteria(9) Other measures
In addition, we are considering many other actions from the standpoints of raising interest
in JAST stock among investors and maintaining an adequate supply of JAST stock.
• Shareholder benefits (Perspective: Investor promotion)
Consider the development of a special benefit program to attract new individual shareholders andto encourage existing individual shareholders to continue to hold the company shares for the longterm.

• Capital Policy (Perspective: Appropriate response to increased investment for growth)
Our capital position is good for the time being and we do not see the need to raise funds at an
early stage. In the future, however, we will flexibly consider policies appropriate to thecircumstances of growth investment, such as M&A and large-scale R&D.
*The above examples of potential measures are not based on any concrete enforcement plan. Decisions will be made based on actual business conditions.

14©2021 Japan System Techniques Co., Ltd.

Contents

1.

Basic Policy for Compliance with
Listing Maintenance Criteria

2.

Issues and initiatives forcompliance with listing
maintenance criteria

3. Milestones for Major Measures
あ15©2021 Japan System Techniques Co., Ltd.

3. Milestones for Major Measures (1)Measures

FY3/21(Previous
fiscal year)

Activities

FY3/22(Current
fiscal year)

FY3/23

FY3/24

11.0

FY3/25

FY3/26

Market capitalization of
tradable shares(billions of yen)

4.6

(*1)

7.7

Net sales(billions of yen)

18.8

(*2)

19.5

30.0

Ordinary
profit(billions of yen)

1.31

(*2)

1.36

3.0

(%)

8.9

10.6

15.4

Dividend

(Yen)

28

30

97

Dividend
yield

(%)

1.8

1.6

1.7

Payout ratio

(%)

26

23

33

Performance
growthROE

Dividend
policyFY3/27 andafterward

25.0*1. Calculated by JAST (the number of tradable shares and the ratio of tradable shares are as of the end of September 2021, and the share price is calculated on the assumption of the averageof the daily closing prices for the three months prior to November 19, 2021)*2. Consolidated forecasts for the fiscal year ending March 31, 2022 (announced on May 13, 2021)

16©2021 Japan System Techniques Co., Ltd.

3. Milestones for Major Measures (2)Measures

Activities

Speed up the release of IR
documents in English
Expand the scope of data
disclosure in English

FY 3/22(Current fiscal
year)
Speed updisclosure ofEnglish-language
financialstatements

FY 3/23

Enhance the quality of IR
materials

Establish a corporate identity

FY 3/26

FY 3/27 andafterward

Speed up disclosure of English-language financial results
Increase IR events, mainly online

Activities are under way to
upgrade information in IR
materials

Expand information distribution
network

Disclosure of the medium-term
management plan

FY 3/25

Expand the scope of English-language disclosure of financial results briefing materials
and other information

Hold IR events more frequently

Strengthen IR
activities

FY 3/24

Expand domestic and overseas distribution network for IR materials
Upgrade the quality of disclosure
Make people aware of the corporate
slogan and use a unified design

Review and implement the scope of other CI measures

Branding
Upgrade the corporate website
and increase the number ofEnglish-language pages, etc.

Increase the supply of tradable shares

Studying thebreadth of these
activities

Start and upgrade these activities
Continue to increase the number of tradable shares

17©2021 Japan System Techniques Co., Ltd.

Take on Future Challenges.

This presentation includes forward-looking statements about the financial condition,
results of operations, businesses, share values, strategies and other items of the
JAST Group. These statements are judgments of the group based on information
available when this presentation was prepared and include risks and uncertainties.
Consequently, the group’s actual financial condition, results of operations,businesses, share values, strategies and other items may differ significantly fromthese forward-looking statements.

Japan System Techniques Co., Ltd.
https://www.jast.jp/©2021 Japan System Techniques Co., Ltd.