May 13, 2024

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
[Japanese GAAP]
Company name: Japan System Techniques Co., Ltd.
4323
Stock code:
Representative:
Takeaki Hirabayashi, President and CEO
Taku Hirabayashi, Director and Senior Officer
Contact:
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:

Listing: Tokyo Stock Exchange
URL: https://www.jast.jp
Tel: +81-6-4560-1000
June 25, 2024
June 11, 2024
June 26, 2024
Yes
Yes (for analysts)

Note: The original disclosure in Japanese was released on May 13, 2024 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Ordinary income

Million yen%
Million yen%
Million yen%
Fiscal year ended Mar. 31, 2024
26,183
11.3
2,791
17.0
2,861
16.8
Fiscal year ended Mar. 31, 2023
23,519
9.9
2,385
19.3
2,450
19.4
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2024:
2,295 (up 22.8%)
Fiscal year ended Mar. 31, 2023:
1,868 (up 39.2%)

Profit attributable toowners of parent
Million yen
%
2,086
17.8
1,772
33.2

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, 2024
85.08
17.8
15.3
10.7
Fiscal year ended Mar. 31, 2023
72.25
17.8
14.9
10.1
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2024: Fiscal year ended Mar. 31, 2023: Note: JAST conducted a 2-for-1 common stock split on April 1, 2024.
Net income per share has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March
31, 2023.

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2024
20,022
12,71263.2
516.08
As of Mar. 31, 2023
17,413
10,81661.8
439.03
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2024: 12,658
As of Mar. 31, 2023:
10,768
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024.
Net assets per share have been calculated as if this stock split has taken place at the beginning of the fiscal year ended March
31, 2023.

(3) Consolidated cash flows
Cash flows fromoperating activities
Million yen
1,888
1,073

Fiscal year ended Mar. 31, 2024
Fiscal year ended Mar. 31, 2023

Cash flows from
Cash flows from
Cash and cash equivalents
investing activities
financing activities
at end of period
Million yen
Million yen
Million yen
(761)
(424)
7,515
(541)
(280)
6,793

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

Total

Total
dividends

Dividend on
equity(consolidated)
%
%
22.1
3.9
26.4
4.7

Payout ratio(consolidated)

Yen
Yen
Yen
Yen
Yen Million yen
Fiscal year ended Mar. 31, 2023
0.00
32.00
32.00
397
Fiscal year ended Mar. 31, 2024
0.00
45.00
45.00
558
Fiscal year ending Mar. 31, 2025
0.00
27.00
27.00
28.8
(forecasts)
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024.
The dividend per share forecasts for the fiscal year ending March 31, 2025 are the amount after the stock split.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)
Net sales
Full year

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

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

28,570

9.1

3,150

12.9

3,200

11.8

2,300

10.2

93.77

* 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(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, 2024:

24,836,920 shares

As of Mar. 31, 2023:

24,836,920 shares

As of Mar. 31, 2023:

308,536 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2024:

308,768 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2024:

24,528,214 sharesFiscal year ended Mar. 31, 2023:

24,528,584 shares

Notes: 1. JAST conducted a 2-for-1 common stock split on April 1, 2024. The number of shares outstanding at the end of theperiod has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31,
2023.
2. The Company’s stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (298,400
shares as of March 31, 2024 and 298,400 shares as of March 31, 2023), and is deducted from the number of sharesthat 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, 2024 (April 1, 2023 – March 31, 2024)(1) Non-consolidated results of operations

Fiscal year ended Mar. 31, 2024
Fiscal year ended Mar. 31, 2023

Net sales
Million yen%
20,431
10.1
18,552
8.6

Operating income
Million yen
%
2,097
16.4
1,801
11.2

(Percentages represent year-on-year changes)
Ordinary income
ProfitMillion yen% Million yen
%
(1.0)
2,184
2.4
1,614
2,134
21.9
1,630
63.1

Net income per share Diluted net income per share
Yen
Yen
Fiscal year ended Mar. 31, 2024
65.82
Fiscal year ended Mar. 31, 2023
66.47
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024. Net income per share has been calculated as if this stock split
has taken place at the beginning of the fiscal year ended March 31, 2023.
(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2024
17,347
11,44065.9
466.42As of Mar. 31, 2023
15,504
10,20265.8
415.93
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2024:
11,440
As of Mar. 31, 2023:
10,202
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024. Net assets per share have been calculated as if this stock split
has taken place at the beginning of the fiscal year ended March 31, 2023.

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.

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

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

13

Going Concern Assumption

13

Additional Information

13

Business Combinations

13

Segment and Other Information

15

Per-share Information

17

Subsequent Events

18

1

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

1. Overview of Results of Operations(1) Results of Operations
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) during the fiscal year that ended in March 2024 were 26,183 million
yen (up 11.3% year on year). Operating income was 2,791 million yen (up 17.0% year on year), ordinary income was
2,861 million yen (up 16.8% year on year), and profit attributable to owners of parent was 2,086 million yen (up 17.8%
year on year).
Business segment performance was as follows.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 6.4% from one year earlier to 15,251 million yen and the operating income increased 8.3% to2,250 million yen. The number of large orders received directly from existing and new customers was higher than one
year earlier. As a result, the overall profitability of the business increased.
(Package business)
Segment sales increased 9.9% from one year earlier to 4,933 million yen and the operating income increased 10.6% to1,383 million yen. There was an increase in sales of program products, installation and support services, and IT
equipment involving the GAKUEN Series, a strategic university management system. Sales of program products for
BankNeo, an information systems integration package for financial institutions, were lower than one year earlier.
(Medical big data business)
Segment sales increased 30.8% from one year earlier to 2,644 million yen and the operating income was up 50.2% to686 million yen. The performance of this business improved primarily due to increased sales of highly profitable
analysis services, a cloud-based health insurance claims management system for welfare public assistance, and otherservices.
(Global business)
Sales increased 25.5% from one year earlier to 3,354 million yen and the operating income increased 48.4% to 402
million yen. This can be largely attributed to higher sales resulting from the large number of orders received for SAP
installation support services in Malaysia, even though there were lower sales in SI development projects in China.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 15.5% from one year earlier to 1,931 million yen. This
increase was attributable mainly to more education and training programs as the number of employees increased, more
recruiting activities, and expenditures involving the addition of office space and upgrading the IT infrastructure.
(2) Financial Position
The balance of current assets at the end of the current fiscal year was 15,710 million yen, up 10.7% over the end of theprevious fiscal year. This was mainly due to increases in cash and deposits, and accounts receivable-trade and contract
assets. The balance of non-current assets were 4,311 million yen at the end of the current fiscal year, up 33.6% over theend of the previous fiscal year.
The balance of current liabilities at the end of the current fiscal year was 5,222 million yen, up 11.0% over the end of
the previous fiscal year. This was mainly due to increases in contract liabilities (advances received for businessactivities), accrued expenses and income taxes payable. The balance of non-current liabilities was 2,087 million yen at
the end of the current fiscal year, up 10.2% over the end of the previous year.
The balance of total net assets was 12,712 million yen at the end of the current fiscal year, up 17.5% over the end of theprevious fiscal year.

2Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(3) Cash Flows
Cash and cash equivalents increased 722 million yen from 6,793 million yen at the beginning of the current fiscal year
to 7,515 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 1,888 million yen, compared with 1,073 million yen provided in theprevious fiscal year. This difference was mainly due to an increase in profit before income taxes and a decrease inpayments of other payables.
Net cash used in investing activities totaled 761 million yen, compared with 541 million yen used in the previous fiscal
year. This difference was mainly due to increases in purchase of property, plant and equipment and loan advances while
there were proceeds from purchase of shares of a subsidiary.
Net cash used in financing activities totaled 424 million yen, compared with 280 million yen used in the previous fiscal
year. This difference was mainly due to an increase in dividends paid.
Reference: Cash flow indicators
FY3/20FY3/21

FY3/22

FY3/23

FY3/24Equity ratio (%)

47.7

53.0

58.9

61.8

63.2

Equity ratio based on market value (%)

42.1

64.2

101.9

128.3

222.1

Interest-bearing debt to cash flow ratio (years)

3.6

0.2

0.0

0.0

0.0

Interest coverage ratio (times)
94.1
615.0
1,009.9
1,730.2
4,733.2
Note:
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 number ofshares 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.

(4) Outlook
Although the Japanese economy is expected to recover with the support of consumer spending and an improvement in
the labor market, the outlook remains uncertain due to high prices of materials and energy worldwide, exchange rate
volatility, and other reasons. In the IT industry, there is rapid progress involving AI and other digital technologies,
increasing diversification of software development methods, including no-code and low-code platforms, and many
digital transformation activities at companies. As a result, growth of the IT market is expected to continue. Furthermore,this growth will be accompanied by challenges concerning labor shortages and increasingly heated competition on a
global scale.
For more progress in this business climate, the Group has examined additional measures for accomplishing the goals of
the current medium-term plan and established an action plan. In addition, as we celebrate our 50th anniversary, we aretaking action to enable our group to continue creating value for many more years. Actions include new long-term goals
and guidelines concerning our corporate image, business portfolio, scale of operations and other aspects of the Group’s
activities. We will also establish a medium-term plan and take actions based on the plan.
The central theme of the Group in the fiscal year ending in March 2025 is “use JAST’s DNA for more progress during
the next 50 years.” In the digital transformation and system integration (DX&SI) business, which is our largest corebusiness we plan to focus on services, solutions and other value-added business activities. In addition, we plan to build
a new business model in order to make this business highly profitable and to expand operations to more businessdomains. In the package, medical big data and other businesses using our own brands, our goals are more upgrades ofthe functions and quality of all flagship products. To make our brand even more powerful, we also plan to create new
businesses and services and move faster for their growth, make strategic R&D investments, and establish alliances withother companies. By taking these actions, we are also aiming to continue to grow in every business domain where we
operate. In the global business, our goals are expanding the SAP business to more markets, upgrading the performanceof current products and providing a broad range of solutions. In addition, we plan to use alliances for the development
and sale of new products for the sustained growth of the global business.

3

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

Based on this outlook, we expect increases in sales and earnings in the fiscal year ending March 31, 2025. We forecast
net sales of 28,570 million yen (up 9.1% year on year), operating income of 3,150 million yen (up 12.9% year on year),ordinary income of 3,200 million yen (up 11.8% year on year), and profit attributable to owners of parent of 2,300
million yen (up 10.2% year on year).
2. Basic Approach to the Selection of Accounting Standards
The Group will continue to prepare consolidated financial statements using generally accepted accounting principles inJapan for the time being to permit comparisons with prior years and with the financial data of other companies.
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.

4

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Thousands of yen)
FY3/24(As of Mar. 31, 2024)

AssetsCurrent assets
Cash and deposits

7,206,690

7,974,566

Notes and accounts receivable-trade, and contract assets

6,532,385

7,175,022

Merchandise and finished goods

172,554

149,333

Work in process

100,612

202,606

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

8,239

5,339

174,586

212,222(7,924)(8,096)14,187,144

15,710,994

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

958,056

1,395,009

Accumulated depreciation(589,641)(673,682)

Buildings and structures, net

368,415

721,326

142,361

142,361

Land
Other

607,152

663,931

Accumulated depreciation(485,935)(462,397)

Other, net

121,216

201,534

631,994

1,065,222

Goodwill

88,499267,027

Customer-related assets

71,56153,821

Software

74,913

161,891

Other

7,626

8,141

242,601

490,881

Investment securities

612,807647,560

Retirement benefit asset

674,681887,689

Deferred tax assets

539,732

508,642

Guarantee deposits

435,927

501,402

Other

93,485

250,789

Allowance for doubtful accounts(4,577)(40,487)

Total investments and other assets

2,352,057

2,755,595

3,226,652

4,311,699

17,413,797

20,022,694

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

5Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(Thousands of yen)
FY3/24(As of Mar. 31, 2024)

FY3/23(As of Mar. 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,495,532

1,429,832-

12,480

Income taxes payable

498,990

570,362

Contract liabilities

354,018

520,178

Provision for bonuses

1,270,424

1,313,103

110,250

133,649

6,801

14,510Current portion of long-term borrowings

Provision for bonuses for directors (and other officers)
Provision for loss on construction contracts
Other
Total current liabilities

967,961

1,228,837

4,703,9785,222,954-

65,960141,759

155,990

Non-current liabilities
Long-term borrowings
Provision for share awards for directors (and otherofficers)
Retirement benefit liability

1,110,713

1,087,676

Asset retirement obligations

239,628

273,506

Deferred tax liabilities

28,46429,824

Other

373,011474,674

1,893,578

2,087,632

6,597,556

7,310,586

Share capital

1,535,409

1,535,409

Capital surplus

1,702,732

1,702,732

Retained earnings

7,389,420

9,079,131

Treasury shares(175,703)(175,947)

10,451,859

12,141,325

Valuation difference on available-for-sale securities

137,114

158,376

Foreign currency translation adjustment

119,184

162,373

Remeasurements of defined benefit plans

60,618

196,499

Total accumulated other comprehensive income

316,917517,248

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

Total shareholders’ equity
Accumulated other comprehensive income

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

6

47,46353,533

10,816,240

12,712,107

17,413,797

20,022,694

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

Net sales

23,519,516

26,183,521

Cost of sales

17,143,676

18,915,371

Gross profit

6,375,839

7,268,149

Selling, general and administrative expenses

3,990,171

4,476,982

Operating income

2,385,668

2,791,166

Interest income

16,012

22,797

Dividend income

8,937

8,499

Rental income

3,086

3,155

Non-operating income

Commission income

2,100

2,111

Foreign exchange gains

12,286

9,949

Insurance claim income-

14,700Subsidy income

20,79229,587

Other

5,535

17,591

Total non-operating income

68,752

108,392

Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Commission expenses

620

400

-

35,507

758

762

Other

2,892

1,474

Total non-operating expenses

4,271

38,143

Ordinary income

2,450,148

2,861,415

Profit before income taxes

2,450,148

2,861,415

658,607807,544

Income taxes-current
Income taxes-deferred

13,513(37,290)

Total income taxes

672,121770,254

1,778,027

2,091,161

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

5,816

4,222

1,772,210

2,086,939

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

Consolidated Statement of Comprehensive Income
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

1,778,027

2,091,161

Valuation difference on available-for-sale securities

15,346

21,261

Foreign currency translation adjustment

125,124

46,788Remeasurements of defined benefit plans, net of tax(50,087)

135,880

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income

90,382203,930

1,868,410

2,295,092

1,858,894

2,287,270

9,516

7,822

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

8

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(3) Consolidated Statement of Changes in Equity
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodChanges during period

1,535,409

Dividends of surplus
Profit attributable to ownersof parent
Purchase 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

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,703,991

5,865,484(175,264)

8,929,621(248,274)(248,274)

1,772,210

1,772,210(439)(1,258)(439)(1,258)-(1,258)

1,523,936(439)

1,522,238

1,535,409

1,702,732

7,389,420(175,703)

10,451,859

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase 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

121,768

Foreign currency Remeasurements
translationof definedadjustment
benefit plans(2,240)110,706

Total accumulated
othercomprehensive
income230,234

Noncontrollinginterests

34,628

Total net assets

9,194,483(248,274)
1,772,210(439)(1,258)15,346

121,425(50,087)

15,346

121,425

137,114

119,1849

86,683

12,83599,518(50,087)

86,683

12,835

1,621,756

60,618316,91747,463

10,816,240

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodChanges during period

1,535,409

Dividends of surplus
Profit attributable to ownersof parent
Purchase 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

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,702,732

7,389,420(175,703)

10,451,859(397,228)(397,228)

2,086,939

2,086,939
(244)

(244)
-

-

-

1,689,710(244)

1,689,466

1,535,409

1,702,732

9,079,131(175,947)

12,141,325

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase 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

137,114

Foreign currency Remeasurements
translationof definedadjustment
benefit plans
119,184

60,618

Total accumulated
othercomprehensive
income316,917

Noncontrollinginterests

47,463

Total net assets

10,816,240(397,228)
2,086,939(244)-

21,261

43,188135,880

200,330

6,070

206,400

21,261

43,188135,880

200,330

6,070

1,895,867

158,376

162,373

196,499

517,248

53,533

12,712,107

10

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(4) Consolidated Statement of Cash Flows
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

2,450,148

2,861,415

118,347

151,065

Amortization of software

25,11025,531

Amortization of goodwill

23,59924,203

Amortization of customer-related assets

19,083

19,571

Increase (decrease) in provision for bonuses

74,89642,131

Decrease (increase) in retirement benefit asset

30,463(213,008)

Increase (decrease) in retirement benefit liability

48,816(25,790)

Interest and dividend income(24,950)(31,297)620

400(937,570)(597,994)(79,016)

164,541

Decrease (increase) in inventories(28,805)(74,574)

Increase (decrease) in trade payables

101,276(70,426)

Cash flows from operating activities
Profit before income taxes
Depreciation

Interest expenses
Decrease (increase) in accounts receivable-trade, andcontract assets
Increase (decrease) in contract liabilities

Other, net(52,232)

331,196

Subtotal

1,769,788

2,606,965

24,95019,259

(620)

(398)

Income taxes paid

(720,202)(737,387)

Net cash provided by (used in) operating activities

1,073,916

1,888,438

Interest and dividends received
Interest paid

Cash flows from investing activities
Payments into time deposits(415,785)(470,293)

Proceeds from withdrawal of time deposits

3,291

437,426

Purchase of property, plant and equipment(80,953)(386,079)

1,481

5,902

Purchase of software(16,724)(114,731)

Purchase of investment securities(46,994)(1,834)

Loan advances(15,906)(271,498)

Proceeds from sale of property, plant and equipment

Proceeds from collection of loans receivable

8,571

14,547

Payments of guarantee deposits(2,631)(118,551)

Proceeds from refund of guarantee deposits
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net

24,94524,472-

104,478(950)

14,686(541,656)(761,475)

Net cash provided by (used in) investing activities

11

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(9,047)-

Repayments of lease liabilities(25,115)(24,860)

Dividends paid

(248,274)(397,228)

(439)

(244)

Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid to non-controlling interests

3,740

-

(1,680)(1,752)

Net cash provided by (used in) financing activities(280,816)(424,085)

Effect of exchange rate change on cash and cash equivalents

77,782

19,259Net increase (decrease) in cash and cash equivalents

329,226

722,136

Cash and cash equivalents at beginning of period

6,463,823

6,793,050

Cash and cash equivalents at end of period

6,793,050

7,515,186

12

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24(5) Notes to Consolidated Financial Statements
Going Concern Assumption
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 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 withshareholders 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; sameafterward unless indicated otherwise) receive stock compensation or a monetary amount equivalent to the market valueof the stock in lieu of stock compensation in accordance with the rules on the stock compensation plan for directors. In
principle, a director becomes eligible for stock compensation only after the individual 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 298,400 shares of JAST with a book value of 171,700
thousand yen as of the end of the previous fiscal year, and the BBT held 298,400 shares with a book value of 171,700
thousand yen as of the end of the current fiscal year.
Note: JAST conducted a 2-for-1 common stock split on April 1, 2024. The number of shares has been calculated as if
this stock split has taken place at the beginning of the fiscal year ended March 31, 2023.
Business Combinations
1. Summary of business combination(1) Acquired company and its business activities
K-SHIP Co., Ltd.
Business activities: Health insurance invoice processing and verifications, verifications of applications forpayments of judo therapy treatment expenses, health management business, and otheractivities(2) Reasons for acquisition
K-SHIP is a provider of insurance services primarily to health insurance organizations. Operations include
verifications of applications for payments for judo therapy treatments, which are mainly inspections of items
listed in invoices, and outsourced invoicing services, health insurance administrative tasks, and other activities.
K-SHIP has the largest share and provides services to more than 170 health insurance organizations. The JAST
Group (JAST and its consolidated subsidiaries) is a comprehensive software development organization that has
no affiliations with other corporate groups and a highly distinctive identity. The Group has a system solutions
business that always utilizes the latest advances in technology to serve an extremely broad range of clients interms of industries, technological fields, equity relationships and other characteristics. The medical big databusiness was 8.6% of the Group’s sales in the fiscal year that ended in March 2023. The Group’s businessactivities are guided by the missions of making medical data an asset with value and using ICT for the digitaltransformation of health insurance operations. The objectives are to be a one-stop source of services for healthinsurers and a provider of services for the utilization of data with the aim of extending the healthy life spans of
the public and supporting health insurance for the people of Japan. One of the Group’s highest priorities is thegrowth of business value in this insurance services sector by increasing the Group’s market share for more
growth of medical big data at the Group.
JAST has purchased K-SHIP stock for the purposes of increasing the number of transactions and the volume of
big data in the health insurance market at all group companies. In addition, JAST plans to use the combination of
the JAST Group’s ICT and digital transformation expertise and K-SHIP’s business operations know-how for the13

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

provision of services with even greater value to health insurance organizations.
(3) Acquisition date
January 26, 2024 (stock acquisition date)
March 31, 2024 (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
The consolidated statement of income for the current fiscal year does not reflect the performance of the acquiredcompanies since JAST has consolidated only the balance sheet. This is because the assumed acquisition date ofMarch 31, 2024 does not exceed three months from the consolidation closing date of the current fiscal year.
3. Acquisition cost of acquired company and breakdown by type of consideration
Payment for the acquisition:Cash
1 thousand yen
1 thousand yen
Acquisition cost:
4. Details of major acquisition-related costs
Remuneration for advisory members and other related fees: 2.2 million yen
5. Goodwill resulting from the acquisition(1) Value of goodwill
200.466 million yen
The amount of goodwill is calculated provisionally because the allocation of the acquisition cost is incomplete at
the end of the current fiscal year.
(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 dateCurrent assets:
128.057 million yen
Non-current assets:
9.649 million yen
137.707 million yen
Total assets:
Current liabilities:
Non-current liabilities:
Total liabilities:

32.774 million yen
305.398 million yen
338.172 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.

14

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

Segment and Other Information
Segment information
1. Information related to net sales, profit or loss, assets, liabilities, and other items for each reportable segment
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)Amounts
shown onAdjustment
consolidated(Note 1)
financial(Note 2)statements(Note 3)

DX&SI
business

Packagebusiness

Medical big
databusiness

Globalbusiness

Total

14,335,487

4,489,345

2,021,231

2,673,452

23,519,516-

23,519,516

89,92242,155-50,312

182,390(182,390)-

23,701,906

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

14,425,409

4,531,501

2,021,231

2,723,765

Segment profit

Total

2,078,787

1,250,729

457,107271,017

Segment assets

8,087,574

3,551,540

1,639,504

2,126,797(182,390)

23,519,516

4,057,641 (1,671,973)

2,385,668

15,405,417

17,413,797

2,008,379

Other items
Depreciation
61,30527,621
19,21454,400
162,541
162,541
Increase in property, plant andequipment and intangible
41,63519,03429,85532,268
122,793
122,793
assets
Notes:
1. Segment profit in the above adjustment represents corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit is adjusted with operating income shown on the consolidated statement of income.
FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)(Thousands of yen)Amounts
shown onAdjustment
consolidated(Note 1)
financial(Note 2)statements(Note 3)

DX&SI
business

Packagebusiness

Medical big
databusiness

Globalbusiness

Total

15,251,285

4,933,451

2,644,373

3,354,411

26,183,521-

26,183,521

127,579

5,817

2,570

70,120206,086(206,086)-

15,378,864

4,939,268

2,646,943

3,424,531

26,389,607(206,086)

26,183,521

Segment profit

2,250,991

1,383,294

686,468

402,176

4,722,930 (1,931,764)

2,791,166

Segment assets

8,838,361

3,992,196

2,602,764

2,382,183

17,815,505

20,022,694

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

2,207,188

Other items
Depreciation
80,64432,79026,33956,393
196,168
196,168
Increase in property, plant andequipment and intangible
305,140
116,918
59,55244,060525,672
525,672
assets
Notes:
1. Segment profit in the above adjustment represents corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit is adjusted with operating income shown on the consolidated statement of income.

15

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

Related information
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
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
Japan(Thousands of yen)
Total

Overseas
20,831,987

2,687,528

23,519,516(2) Property, plant and equipment
Japan(Thousands of yen)
Total

Overseas579,246

52,747

631,994

3. Information by major client
Company name(Thousands of yen)
Business segment

Net sales

NTT COMWARE CORPORATION

2,102,664

DX&SI business

FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)
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
Japan(Thousands of yen)
Total

Overseas
22,821,428

3,362,092

26,183,521(2) Property, plant and equipment
Japan(Thousands of yen)
Total

Overseas864,144

201,078

1,065,222

3. Information by major client
Company name(Thousands of yen)
Business segment

Net sales

NTT COMWARE CORPORATION

2,197,223

DX&SI businessInformation related to impairment losses of non-current assets for each reportable segment
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
Not applicable.
FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)
Not applicable.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
DX&SI
business

Packagebusiness(Thousands of yen)
Elimination or
Global businessTotal
corporate

Medical big
data business

Amortization for the period

-

-

-

23,599-23,599Balance at end of period

-

-

-

88,499-88,49916

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)
DX&SI
business

Packagebusiness(Thousands of yen)
Elimination or
Global businessTotal
corporate

Medical big
data business

Amortization for the period

-

-

-

24,203-24,203

Balance at end of period--

200,466

66,560-267,027

Information related to gain on bargain purchase for each reportable segment
Not applicable.

Per-share Information(Yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)
Net assets per share

439.03516.08Net income per share

72.25

85.08

Notes: 1. Diluted net income per share is not presented since JAST has no outstanding dilutive securities.
2. JAST conducted a 2-for-1 common stock split on April 1, 2024. Net assets per share and net income per share have been
calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31, 2023.
3. The basis of calculation is as follows.
(Thousands of yen)
FY3/23
FY3/24(As of Mar. 31, 2023)(As of Mar. 31, 2024)
Net assets per share
Total net assets on balance sheet
Deduction on total net assets(Non-controlling interests)

10,816,240

12,712,107

47,46353,533(47,463)(53,533)

10,768,776

12,658,574

24,528,384 shares

24,528,152 shares

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

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

Net income per share
Profit attributable to owners of parent
Amount not available to common shareholders

1,772,210

2,086,939--

Profit attributable to owners of parent applicable tocommon shares

1,772,210

2,086,939

Average number of shares outstanding during period

24,528,584 shares

24,528,214 shares

Note: JAST has established a new Board Benefit Trust (BBT). The JAST stock remaining in the BBT (298,400 shares as of March
31, 2023 and 298,400 shares as of March 31, 2024) is included in treasury shares in shareholders’ equity and deducted fromthe number of shares outstanding at the end of the period that is used to calculate net assets per share. Moreover, the BBT
shares (298,400 shares in FY3/23 and 298,400 shares in FY3/24) are included in treasury shares deducted from the number ofshares used to calculate the average number of shares outstanding during the period that is used to calculate net income pershare.

17

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/24

Subsequent Events
Following the resolution approved by the Board of Directors meeting held on February 29, 2024, JAST implemented astock split and has made an associated revision to the Articles of Incorporation.
1. Stock split(1) Purpose of stock split
The purpose of the stock split is to make investment easier for investors by reducing the value of JAST’s investment
unit, thereby expanding the investor base and increasing the liquidity of its shares.
(2) Method of stock split
Shareholders listed in the final shareholder register on the record date of March 31, 2024 have received two shares ofcommon stock for each share held on the record date.
(3) Number of shares increased by the stock split
Total number of shares issued prior to the stock split:
Number of shares increased by the stock split:
Total number of shares issued following the stock split:
Total number of authorized shares following the stock split:

12,418,460 shares
12,418,460 shares
24,836,920 shares
64,000,000 shares(4) Schedule
Public notice of record date:
Record date:
Effective date:

March 15, 2024
March 31, 2024
April 1, 2024

2. Partial revision to the Articles of Incorporation following the stock split(1) Reason for the revision
In association with this stock split, the JAST Articles of Incorporation was partially amended on April 1, 2024 inaccordance with Article 184, Paragraph 2 of the Companies Act.
(2) Details of the revision (Underlined parts are revised.)
Current
Article 6: (Total Number of Shares Authorized)
The total number of shares authorized to be issued by theCompany shall be 32,000,000 shares.

After revision
Article 6: (Total Number of Shares Authorized)
The total number of shares authorized to be issued by theCompany shall be 64,000,000 shares.

(3) Effective date
April 1, 2024

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.

18