May 12, 2023

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]
Listing: Tokyo Stock Exchange
Company name: Japan System Techniques Co., Ltd.
4323
URL: https://www.jast.jp
Stock code:
Representative:
Takeaki Hirabayashi, President and CEO
Toshinori Hamada, General Manager of General Affairs Department
Contact:
Tel: +81-6-4560-1000
Scheduled date of Annual General Meeting of Shareholders:June 28, 2023
Scheduled date of payment of dividend:
June 9, 2023
Scheduled date of filing of Annual Security Report:
June 29, 2023
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts)
Note: The original disclosure in Japanese was released on May 12, 2023 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, 2023 (April 1, 2022 – March 31, 2023)(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, 2023
23,519
9.9
2,385
19.3
2,450
19.4
Fiscal year ended Mar. 31, 2022
21,3992,000
2,052
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2023:
1,868 (up 39.2%)
Fiscal year ended Mar. 31, 2022:
1,342 (-%)

Profit attributable toowners of parent
Million yen
%
1,772
33.2
1,330
-

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, 2023
144.50
17.8
14.9
10.1
Fiscal year ended Mar. 31, 2022
112.32
16.7
14.5
9.3
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2023: Fiscal year ended Mar. 31, 2022: Notes: 1. JAST conducted a 2-for-1 common stock split on October 1, 2022. 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, 2022.
2. Beginning with the fiscal year ended March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition(Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the fiscal year ended
March 31, 2022 incorporate this accounting standard and comparisons with the previous fiscal year are omitted.

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2023
17,413
10,81661.8
878.07
As of Mar. 31, 2022
15,5399,194
58.9
746.86
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2023: 10,768
As of Mar. 31, 2022:
9,159
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. 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, 2022.

(3) Consolidated cash flows
Cash flows fromoperating activities
Million yen
1.073
1,162

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

Cash flows from
Cash flows from
Cash and cash equivalents
investing activities
financing activities
at end of period
Million yen
Million yen
Million yen
(541)
(280)
6,793
(80)
486
6,463

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

Total

Total
dividends

Dividend on
equity(consolidated)
%
%
17.8
2.9
22.1
3.9

Payout ratio(consolidated)

Yen
Yen
Yen
Yen
Yen Million yen
Fiscal year ended Mar. 31, 2022
0.00
40.00
40.00
248
Fiscal year ended Mar. 31, 2023
0.00
32.00
32.00
397
Fiscal year ending Mar. 31, 2024
0.00
40.00
40.00
26.1
(forecasts)
Notes: 1. Breakdown of the year-end dividend for the fiscal year ended March 31, 2023:
Commemorative dividend: 5.00 yen; Ordinary dividend: 27.00 yen
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. The dividend per share forecasts for the fiscal year
ended March 31, 2023 are the amount after the stock split.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)
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

25,300

7.6

2,540

6.5

2,600

6.1

1,880

6.1

153.29

* 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, 2023:

12,418,460 shares

As of Mar. 31, 2022:

12,418,460 shares

As of Mar. 31, 2022:

153,932 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2023:

154,268 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2023:

12,264,292 sharesFiscal year ended Mar. 31, 2022:

11,845,742 shares

Notes: 1. JAST conducted a 2-for-1 common stock split on October 1, 2022. The number of shares outstanding at the end of
the period has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31,
2022.
2. The Company’s stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (149,200
shares as of March 31, 2023 and 149,200 shares as of March 31, 2022), 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, 2023 (April 1, 2022 – March 31, 2023)(1) Non-consolidated results of operations

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

Net sales
Million yen%
18,552
8.6
17,082
12.4

Operating income
Million yen
%
1,801
11.2
1,620
61.7

(Percentages represent year-on-year changes)
Ordinary income
ProfitMillion yen% Million yen
%
2,134
21.9
1,630
63.1
1,751
58.3
999 149.1

Net income per share Diluted net income per share
Yen
Yen
Fiscal year ended Mar. 31, 2023
132.94
Fiscal year ended Mar. 31, 2022
84.39
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. 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, 2022.
(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Mar. 31, 2023
15,504
10,20265.8
831.86
As of Mar. 31, 2022
13,9748,805
63.0
717.93
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2023: 10,202
As of Mar. 31, 2022:
8,805
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. 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, 2022.

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 4 for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Outlook

4

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

Segment and Other Information

14

Per-share Information

17

Subsequent Events

17

1

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

1. Overview of Results of Operations(1) Results of Operations
Consumer behavior slowly began returning to normal during the fiscal year that ended in March 2023 as pandemic
restrictions ended as people received vaccinations. Despite this positive trend, the outlook for the economy is still
unclear because of the high cost of resources due to the Ukraine crisis, monetary policies in the United States and Japan,
big foreign exchange rate movements caused by differences in the economies of various countries, and other reasons.
The JAST Group, which is Japan System Techniques (JAST) and its consolidated subsidiaries, operate in the IT
services industry. The outlook for the business climate and performance of companies in this industry is uncertain
because of the yen’s depreciation, inflation and other reasons. However, the volume of IT investments by companies isfirm primarily for digital transformation projects. There is a persistent shortage of people with IT skills and thisshortage is expected to continue.
Consolidated sales of the JAST Group were 23,519 million yen (up 9.9% year on year). Operating income was 2,385
million yen (up 19.3% year on year), ordinary income was 2,450 million yen (up 19.4% year on year), and profit
attributable to owners of parent was 1,772 million yen (up 33.2% year on year). Business segment performance was asfollows. In the current fiscal year, JAST revised its reportable segments and the method used for calculating segment
profit and loss. Fiscal year comparisons and analysis of results of operations are based on the revised segments andprofit and loss calculation method.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 11.1% from one year earlier to 14,335 million yen and the operating income increased 33.3%
to 2,078 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 decreased 2.4% from one year earlier to 4,489 million yen and the operating income was down 18.2% to1,250 million yen. Sales of program products for BankNeo, an information systems integration package for financial
institutions, were higher. However, there was a decline in sales, installation and support services, and other activities
involving the GAKUEN Series, a strategic university management system consisting of GAKUEN RX and GAKUENUNIVERSAL PASSPORT RX. Overall, this segment is performing well, with a larger volume of orders than at the endof the previous fiscal year.
(Medical big data business)
Segment sales increased 11.9% from one year earlier to 2,021 million yen and the operating income was up 19.9% to457 million yen. The profitability of this business improved mainly because of the growth of analysis services, support
services for insurance organizations and other highly profitable services.
(Global business)
Sales increased 28.1% from one year earlier to 2,673 million yen and the operating income increased 448.5% to 271
million yen. This was primarily the result of the growth in Malaysia of support services at new and existing customers
for the use of SAP software and the positive effect of foreign exchange rate movements on the performance of thisbusiness, mainly at subsidiaries outside Japan with strong sales and earnings.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 10.0% from one year earlier to 1,671 million yen mainly
because of higher personnel expenses as more people were hired.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23(2) Financial Position
The balance of current assets at the end of the current fiscal year was 14,187 million yen, up 14.5% 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 3,226 million yen at the end of the current fiscal year, up 2.4% over theend of the previous fiscal year.
The balance of current liabilities at the end of the current fiscal year was 4,703 million yen, up 1.8% over the end of theprevious fiscal year. This was mainly due to increases in accounts payable-trade and provision for bonuses, and adecrease in income taxes payable. The balance of non-current liabilities was 1,893 million yen at the end of the current
fiscal year, up 9.8% over the end of the previous year.
The balance of total net assets was 10,816 million yen at the end of the current fiscal year, up 17.6% over the end of theprevious fiscal year.
(3) Cash Flows
Cash and cash equivalents increased 329 million yen from 6,463 million yen at the beginning of the current fiscal year
to 6,793 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 1,073 million yen, compared with 1,162 million yen provided in theprevious fiscal year. This difference was mainly due to an increase in trade payables.
Net cash used in investing activities totaled 541 million yen, compared with 80 million yen used in the previous fiscal
year. This difference was mainly due to an increase in payments into time deposits.
Net cash used in financing activities totaled 280 million yen, compared with 486 million yen provided in the previous
fiscal year. This difference was mainly due to decreases in proceeds from issuance of shares and proceeds from
disposal of treasury shares.
Reference: Cash flow indicators
FY3/19FY3/20FY3/21

FY3/22

FY3/23Equity ratio (%)

46.8

47.7

53.0

58.9

61.8

Equity ratio based on market value (%)

55.5

42.1

64.2

101.9

128.3

Interest-bearing debt to cash flow ratio (years)

1.2

3.6

0.2

0.0

0.0

Interest coverage ratio (times)
478.5
94.1
615.0
1,009.9
1,730.2
Note:
1. The above figures are calculated as follows.
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments* Market capitalization is calculated by multiplying the closing share price at the end of the period by the 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.

3

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23(4) Outlook
The business climate for the JAST Group is expected to remain uncertain because of concerns about the economic
outlook due to the Ukraine crisis and other sources of geopolitical risk, rising prices of raw materials and energy,
foreign exchange rate movements, and other reasons. In the IT industry, where the business climate is extremely
volatile, JAST understands that it will be difficult to achieve growth if it remains overly dependent on outsourced
development projects, the IT industry’s mainstay source of earnings to date.
Consequently, to define the medium to long-term basic policies for the management of the JAST Group, we establish a
new three-year medium-term plan every year. Each new plan starts with the fiscal year in which the plan wasestablished. The plan includes the type of organization we want to become, our brand image, our business fields, thesize of our operations and other goals. In the fiscal year ending in March 2024, we will continue to take many actions
in order to accomplish the goals of the current medium-term plan.
The central theme of the JAST Group in the fiscal year ending in March 2024 is “use JAST’s strengths to create newvalue backed by speedy and bold initiatives underpinned by sound thinking and by using the co-creation process at allgroup companies.” In the digital transformation and system integration (DX&SI) business, our goal is to enlarge
business domains as our largest core business as we increase earnings by using alliances and further improving our
proposal and negotiation skills. In the package, medical big data and other businesses using our own brands, we willfurther upgrade the quality of every flagship product and move faster for the creation and utilization of newtechnologies and products. The objectives are making our brands more powerful and capturing the largest market sharein every business sector where we operate. Furthermore, in the global business, our goal is consistent growth of sales
and earnings by further upgrading products, targeting broader spectrums of customer segments and markets, andstrengthening governance.
Based on this outlook, we expect increases in sales and earnings in the fiscal year ending March 31, 2024. We forecast
net sales of 25,300 million yen (up 7.6% year on year), operating income of 2,540 million yen (up 6.5% year on year),ordinary income of 2,600 million yen (up 6.1% year on year), and profit attributable to owners of parent of 1,880
million yen (up 6.1% 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 FY3/23

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

AssetsCurrent assets
Cash and deposits

6,464,852

7,206,690

Notes and accounts receivable-trade, and contract assets

5,533,330

6,532,385

Merchandise and finished goods

147,538

172,554Work in process

99,301

100,612Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

5,761

8,239

144,293

174,586(5,875)(7,924)

12,389,203

14,187,144

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

842,406

958,056

Accumulated depreciation(548,763)(589,641)

Buildings and structures, net

293,643

368,415

142,361

142,361

Land
Other
Accumulated depreciation
Other, net

565,150

607,152(454,587)(485,935)

110,562

121,216

546,567

631,994

Goodwill

102,785

88,499Customer-related assets

83,11371,561

Software80,90974,913

Other

7,626

7,626

274,435

242,601

Investment securities

542,531

612,807

Retirement benefit asset

705,144674,681Deferred tax assets

536,929539,732

Guarantee deposits

457,167

435,927

Other

89,934

93,485

Allowance for doubtful accounts(1,925)(4,577)

Total investments and other assets

2,329,781

2,352,057

3,150,785

3,226,652

15,539,989

17,413,797

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 FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,380,056

1,495,532

Short-term borrowings

8,518

-

Income taxes payable

563,468

498,990

Contract liabilities

430,851

354,018

Provision for bonuses

1,194,536

1,270,424

Provision for bonuses for directors (and other officers)

77,530110,250

Provision for loss on construction contracts

52,960

6,801

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

913,152

967,961

4,621,074

4,703,978120,728

141,759

6,646-

1,058,791

1,110,713

24,65528,464

513,608

612,640

1,724,430

1,893,578

6,345,505

6,597,556

Share capital

1,535,409

1,535,409

Capital surplus

1,703,991

1,702,732

Retained earnings

5,865,484

7,389,420

Treasury shares(175,264)(175,703)

Total shareholders’ equity

8,929,621

10,451,859

121,768

137,114

Foreign currency translation adjustment(2,240)119,184

Remeasurements of defined benefit plans

110,706

60,618

Total accumulated other comprehensive income

230,234

316,917

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

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

6

34,62847,4639,194,483

10,816,240

15,539,989

17,413,797

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Net sales

21,399,553

23,519,516

Cost of sales

15,711,508

17,143,676

Gross profit

5,688,045

6,375,839

Selling, general and administrative expenses

3,687,543

3,990,171

Operating income

2,000,501

2,385,668

Interest income

12,02016,012

Dividend income

6,391

8,937

Rental income

2,483

3,086

Non-operating income

Commission income

1,971

2,100

Foreign exchange gains

14,225

12,286

Subsidy income

14,937

20,792

Other

9,268

5,535

Total non-operating income

61,29868,752

1,199

620

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

-

2,345

Commission expenses

1,899

758

Share issuance costs

5,773

-

415

547

9,287

4,271

2,052,512

2,450,148

87,398-

Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Impairment losses
Total extraordinary losses

87,398-

1,965,114

2,450,148

Income taxes-current

773,626

658,607

Income taxes-deferred(140,936)

13,513

Total income taxes

632,689

672,121

1,332,424

1,778,027

Profit before income taxes

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

7

1,866

5,816

1,330,558

1,772,210

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

Consolidated Statement of Comprehensive Income
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

1,332,424

1,778,027

Valuation difference on available-for-sale securities(65,007)

15,346

Foreign currency translation adjustment

79,646125,124

Remeasurements of defined benefit plans, net of tax(4,860)(50,087)

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income

9,779

90,382

1,342,203

1,868,410

1,339,796

1,858,894

2,407

9,516

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 FY3/23(3) Consolidated Statement of Changes in Equity
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,128,115

4,605,874(218,515)

6,592,143

1,076,669

81,0801,076,669

1,128,115

458,739458,739

4,686,954

81,080(218,515)

6,673,223

Changes during period
Issuance of new shares

917,479

Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(152,028)(152,028)

1,330,558

1,330,558

116,125(87,750)(87,750)

131,002247,127

1,011

1,011

458,739575,876

1,178,529

43,251

2,256,397

1,535,409

1,703,991

5,865,484(175,264)

8,929,621

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income186,775(81,346)

115,566

220,996

Share
acquisitionrights

Noncontrollinginterests

Total net
assets

5,530

31,7056,850,375
81,080186,775(81,346)

115,566

220,996

5,530

31,705

6,931,456

Changes during period
Issuance of new shares

917,479

Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares(152,028)

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

1,330,558(87,750)
247,127
1,011(65,007)

79,105(65,007)

79,105

121,768(2,240)(4,860)9,238(5,530)(4,860)9,238

110,706

230,234

9

2,923

6,630

(5,530)2,923

2,263,027-

34,6289,194,483

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,703,991

5,865,484(175,264)

8,929,621

1,535,409

1,535,409

1,703,991

5,865,484(175,264)

8,929,621

Changes during period
Issuance of new shares-

Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares(248,274)

1,772,210

1,772,210(439)

Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(248,274)(439)-(1,258)(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

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income121,768(2,240)110,706

230,234

Share
acquisitionrights

Noncontrollinginterests

Total net
assets-34,6289,194,483-

121,768(2,240)110,706

230,234-

34,6289,194,483

Changes during period
Issuance of new shares-

Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(248,274)
1,772,210(439)(1,258)15,346

121,425(50,087)

86,683-

12,83599,51815,346

121,425(50,087)

86,683-

12,835

1,621,756

137,114

119,184

60,618316,917-47,463 10,816,240

10

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23(4) Consolidated Statement of Cash Flows
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

1,965,114

2,450,148

Depreciation

114,387

118,347

Amortization of software

23,215

25,110

Amortization of goodwill

31,361

23,599Amortization of customer-related assets

20,27919,083

976

-

1,733

-

Cash flows from operating activities
Profit before income taxes

Amortization of trademark
Amortization of technology assets
Impairment loss

87,398-

Increase (decrease) in provision for bonuses

308,751

74,896

Decrease (increase) in retirement benefit asset(38,329)

30,463

Increase (decrease) in retirement benefit liability

41,363

48,816

Interest and dividend income(18,411)(24,950)

1,199

620

(1,316,502)(937,570)

Increase (decrease) in contract liabilities

35,117(79,016)

Decrease (increase) in inventories

309,800(28,805)

Increase (decrease) in trade payables

339,136

101,276

Other, net(72,578)(52,232)

SubtotalInterest expenses
Decrease (increase) in trade receivables and contract assets

1,834,014

1,769,788

Interest and dividends received

38,51924,950Interest paid

(1,151)(620)

Income taxes paid

(708,462)(720,202)

Net cash provided by (used in) operating activities

1,162,919

1,073,916

Proceeds from sale of membership

690-

Decrease (increase) in time deposits-(412,493)(51,486)(80,953)

6,483

1,481

Purchase of software(32,391)(16,724)

Purchase of investment securities(1,532)(46,994)

Cash flows from investing activities

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Proceeds from sale of investment securities

22,601-

Loan advances(51,812)(15,906)

Proceeds from collection of loans receivable

45,405

8,571

Payments of guarantee deposits(19,111)(2,631)

Proceeds from refund of guarantee deposits

1,194

24,945

Other, net

(952)

(950)

(80,912)(541,656)

Net cash provided by (used in) investing activities

11

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(400,000)(9,047)

Repayments of lease liabilities(28,185)(25,115)

Repayments of long-term borrowings(2,800)-

Proceeds from issuance of shares

914,768-

Dividends paid

(152,028)(248,274)

Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid to non-controlling interests(87,750)

(439)

-

3,740

-

(1,680)

Proceeds from disposal of treasury shares

242,854-

Net cash provided by (used in) financing activities

486,858(280,816)

Effect of exchange rate change on cash and cash equivalents

41,26277,782

Net increase (decrease) in cash and cash equivalents

1,610,127

329,226

Cash and cash equivalents at beginning of period

4,853,695

6,463,823

Cash and cash equivalents at end of period

6,463,823

6,793,050

12

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23(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 149,200 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 149,200 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 October 1, 2022. The number of shares has been calculated asif this stock split has taken place at the beginning of the fiscal year ended March 31, 2022.

13

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are JAST and its subsidiaries for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining the allocationof resources and evaluating performance.
The Group has four reportable business segments: the digital transformation and system integration (DX&SI) business,package business, medical big data business and global business. Each segment conducts its business in line with thecomprehensive strategy it has devised for products and services in Japan and other countries.
The DX&SI business uses its distinctive strengths to supply a diverse array of information systems and services in alarge number of business sectors. The package business develops and sells products that use JAST’s own brands andprovides associated environment and system development services, chiefly consulting for the use of these products. The
medical big data business has several healthcare businesses that make it a one-stop source of services for the use of
medical data and business process reform at health insurance organizations. The global business develops and sells
enterprise resource planning (ERP) and human resource management (HRM) products outside Japan, provides
consulting for the use of these products and develops IT systems.
(Revisions to reportable segments)
During the past several years, the scale and composition of business operations of the JAST Group as well as the typesof services provided have changed significantly along with dramatic shifts in the social and business environment. In
response to these changes, the JAST Group started using new business segments in the fiscal year ended in March 2023.
The purposes of the new segments are to facilitate more accurate and thorough management and decision-making
concerning growth strategies and other items and to disclose information to investors in a more suitable format. In
previous fiscal years, the reportable segments were the software business, GAKUEN business, system sales businessand medical big data business. The new segments are the digital transformation and system integration (DX&SI)
business, package business, medical big data business and global business.
The former software business has been renamed the DX&SI business for the purpose of clearly expressing thecommitment of this business to providing even more added value and creating seeds for new businesses. This businessaims to continue the steady growth of system integration, currently the largest source of JAST’s earnings, while shiftingemphasis to co-creation digital transformation activities. The goal of these activities with customers is to use digitaltechnologies for business process innovation and for making customers and the JAST Group more competitive. The
DX&SI business includes former system sales business. The former GAKUEN business has been renamed the package
business because this business uses package systems with JAST brands to provide comprehensive digitaltransformation services and aim for growth. The package business includes the BankNeo financial institution
information systems integration package that was in the software business in prior years. The activities of the global
business were included in the former software business in prior years. Beginning with this fiscal year, global operations
are a separate business segment to provide information more accurately about the distinctive characteristics and growthstrategies of the JAST Group’s businesses, such as solutions and wide-area activities in the ASEAN region and China.
Segment information for FY3/22 is based on the new reportable segments.
2. Calculation method for net sales, profit or loss, assets, liabilities, and other items for each reportable segment
The accounting method used for reportable business segments is generally the same as the methods listed in“Significant Accounting Policies in the Preparation of Consolidated Financial Statements.”
Profits for reportable business segments are operating income figures.
Inter-segment sales and transfers are based on market prices.
(Change in method for calculating segment profit and loss)
In recent years, the scale and characteristics of the business activities of the JAST Group have changed and theimportance of properly managing these activities has increased. To more appropriately evaluate the performance of thegroup’s reportable segments, the allocation of expenses for head office functions has been reexamined. In prior years,
general and administrative expenses that could not be allocated to a reportable segment were allocated in accordancewith expense allocation standards. Beginning with the fiscal year that ended in March 2023, these expenses are instead

14

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

recognized as corporate expenses that are part of the adjustment to segment profit.
Segment profit and loss for FY3/22 is based on the new calculation method.
3. Information related to net sales, profit or loss, assets, liabilities, and other items for each reportable segment
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)

Adjustment(Note 1)
(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

21,399,553-

21,399,553

15,966

94,166(94,166)-

2,103,716

21,493,719(94,166)

21,399,553

DX&SI
business

Packagebusiness

Medical big
databusiness

Globalbusiness

Total

12,903,742

4,601,631

1,806,430

2,087,749

71,8606,339-

12,975,603

4,607,970

1,806,430

Segment profit

1,559,400

1,529,924

381,205

49,408Segment assets

7,404,851

3,257,245

1,238,156

1,884,289

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

3,519,939 (1,519,437)

2,000,501

13,784,541

15,539,989

1,755,447

Other items
Depreciation
57,18627,937
15,93859,530160,593
160,593
Increase in property, plant andequipment and intangible
36,284
23,214
12,69039,874
112,063
112,063
assets
Notes:
1. Segment profit in the above adjustment represents includes 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.
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)

Adjustment(Note 1)
(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)23,519,516-

23,519,516

50,312

182,390(182,390)-

2,021,231

2,723,765

23,701,906(182,390)

23,519,516

1,250,729

457,107271,017

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

2,385,668

3,551,540

1,639,504

2,126,797

15,405,417

17,413,797

DX&SI
business

Packagebusiness

Medical big
databusiness

Globalbusiness

Total

14,335,487

4,489,345

2,021,231

2,673,452

89,92242,155-

14,425,409

4,531,501

Segment profit

2,078,787

Segment assets

8,087,574

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

2,008,379

Other items
Depreciation
61,306
27,62019,21454,400
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 includes 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 FY3/23

Related information
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
1. Information by product or service
This information is omitted because the same information is presented segment information.
2. Information by region(1) Net sales
Geographical information concerning sales to external customers in Japan is not presented since sales to external customers
exceeded 90% of net sales shown on the consolidated statement of income.
(2) Property, plant and equipment
Japan(Thousands of yen)
Total

Overseas479,692

66,875546,567

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

Net sales

TIS Inc.

1,520,224

DX&SI business

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
1. Information by product or service
This information is omitted because the same information is presented 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

Overseas579,046

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 businessInformation related to impairment losses of non-current assets for each reportable segment
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
DX&SI
business

Packagebusiness(Thousands of yen)
Elimination or
Global businessTotal
corporate

Medical big
data businessImpairment losses
87,398
Note: In the software business, there were impairment losses of 55,939 thousand yen for goodwill, 11,129 thousand yen forcustomer-related assets, 7,325 thousand yen for trademark rights and 13,004 thousand yen for technology assets.

87,398

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
Not applicable.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
DX&SI
business
Amortization for the period
Balance at end of period

Packagebusiness(Thousands of yen)
Elimination or
Global businessTotal
corporate

Medical big
data business

2,264

-

-

29,097-31,361---

102,785-

102,785

Note: In the Global business, there was an impairment loss of 55,939 thousand yen for goodwill.

16

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/23

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

-

-

-

88,499-88,499

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

Per-share Information(Yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)
Net assets per share

746.86878.07

Net income per share

112.32144.50Notes: 1. Diluted net income per share is not presented since the Company has no outstanding dilutive securities.
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. Net assets per share and net income per share havebeen calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31, 2022.
3. The basis of calculation is as follows.
(Thousands of yen)
FY3/22
FY3/23(As of Mar. 31, 2022)(As of Mar. 31, 2023)
Net assets per share
Total net assets on balance sheet
Deduction on total net assets(Non-controlling interests)

9,194,483

10,816,240

34,62847,463(34,628)(47,463)

9,159,855

10,768,776

12,264,528 shares

12,264,192 shares

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

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

1,330,558

1,772,210--

Profit attributable to owners of parent applicable tocommon shares

1,330,558

1,772,210

Average number of shares outstanding during period

11,845,742 shares

12,264,292 shares

Note: JAST has established a new Board Benefit Trust (BBT). The Company’s stock remaining in the BBT (149,200 shares as ofMarch 31, 2022 and 149,200 as of March 31, 2023) 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 (149,200 shares in FY3/22 and 149,200 shares in FY3/23) 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.

Subsequent Events
Not applicable.

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.

17