August 10, 2022

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2023
(Three Months Ended June 30, 2022)[Japanese GAAP]
Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange4323
URL: https://www.jast.jp
Takeaki Hirabayashi, President and CEO
Toshinori Hamada, General Manager of Planning & Administration Division
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
August 12, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on August 10, 2022 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2022
(April 1, 2022 – June 30, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Profit attributable toowners of parent% Million yen%(16.8)
223
(5.8)
237
-

Ordinary income

Million yen%
Million yen%
Million yen
Three months ended Jun. 30, 2022
5,119
4.5
261 (23.6)
289
Three months ended Jun. 30, 2021
4,900
342
348
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2022:
297 (up 4.4%)
Three months ended Jun. 30, 2021:
285 (-%)

Diluted net income per
share
Yen
Yen
Three months ended Jun. 30, 2022
36.51
Three months ended Jun. 30, 2021
43.08
42.96
Note: Beginning with the first quarter of 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 threemonths ended Jun. 30, 2021 incorporate this accounting standard and comparisons with the previous fiscal year are omitted.
Net income per share(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2022
16,417
9,242
As of Mar. 31, 2022
15,5399,194
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2022:
9,198

Equity ratio
%
56.0
58.9
As of Mar. 31, 2022:

Net assets per shareYen
1,499.99
1,493.72
9,159

2. Dividends
1Q-endYen-

2Q-endYen
0.00

Fiscal year ended Mar. 31, 2022
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

0.00

Year-end
Yen
40.00

-

50.00

Total
Yen
40.00
50.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Million yen

Operating income%

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

Ordinary income%

Million yen%

Yen

Full year
22,400
4.7
2,120
6.0
2,160
5.2
Note: Revisions to the most recently announced consolidated earnings forecasts: None%

Million yen

1,370

3.0

223.41

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2022:

6,209,230 shares

As of Mar. 31, 2022:

6,209,230 shares

As of Mar. 31, 2022:

76,966 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2022:

76,966 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2022:

6,132,264 shares

Three months ended Jun. 30, 2021:

5,519,393 shares

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

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

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

2(2) Explanation of Financial Position

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

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

8(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Additional Information

10

Segment and Other Information

11

Business Combinations

121

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) in the first quarter of the current fiscal year were 5,119 million yen(up 4.5% year on year). Operating income was 261 million yen (down 23.6% year on year), ordinary income was 289
million yen (down 16.8% year on year), and profit attributable to owners of parent was 223 million yen (down 5.8%
year on year).
Business segment performance was as follows.
In the first quarter of the current fiscal year, JAST revised its reportable segments and the method used for calculating
segment profit and loss. Comparisons and analysis of first quarter results of operations are based on the revised
segments and profit and loss calculation method. Please refer to “2. Quarterly Consolidated Financial Statements andNotes, (4) Notes to Quarterly Consolidated Financial Statements, Segment and Other Information, Segment
information, 3. Information related to revisions for reportable segments” for further information.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 4.8% from one year earlier to 3,253 million yen and the operating income increased 23.2% to
512 million yen. Sales of hardware to universities and public-sector companies, which was in the system sales businessin prior years, decreased and sales from development projects in the retail and telecommunications sectors, which wasin the software business in prior years, increased.
(Package business)
Segment sales decreased 12.9% from one year earlier to 864 million yen and the operating income was down 58.2% to132 million yen. Orders for the GAKUEN Series, consisting of the GAKUEN RX and GAKUEN UNIVERSALPASSPORT RX strategic university management systems, and BankNeo integrated informational systems for financial
institutions, remained firm. However, there were a large number of sales of program products, which have high profit
margins, for both the GAKUEN Series and BankNeo in the same period of the previous fiscal year. In addition, sales ofequipment required to start using the GAKUEN Series decreased.
(Medical big data business)
Segment sales decreased 10.9% from one year earlier to 319 million yen and the operating income was down 79.5% to
10 million yen. Sales of support services for health insurance organizations were higher than one year earlier but salesof analysis services, which have a high profit margin, decreased.
(Global business)
Sales increased 53.4% from one year earlier to 681 million yen and the operating income increased from 6 million yen
to 119 million yen. Higher sales and earnings were mainly the result of the large number of orders received in Malaysia
for support services for the use of SAP software.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 14.5% from one year earlier to 512 million yen mainly
because of higher personnel expenses as more people were hired.
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the first quarter were 13,116 million yen, up 727 million yen from the end of the previous
fiscal year. This was mainly due to increases in cash and deposits due to collection of accounts receivable-trade andhigher contract liabilities. Non-current assets were 3,301 million yen, up 150 million yen from the end of the previous
fiscal year.
Current liabilities at the end of the first quarter were 5,453 million yen, up 832 million yen from the end of the previous
fiscal year. This was mainly due to an increase in accrued expenses, which is included in other, and contract liabilities,
and decreases in provision for bonuses and income taxes payable. Non-current liabilities were 1,721 million yen, down
2

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

2 million yen from the end of the previous fiscal year.
Net assets at the end of the first quarter were 9,242 million yen, up 47 million yen from the end of the previous fiscal
year.
2) Cash flows
Cash and cash equivalents increased 1,808 million yen from 6,463 million yen at the beginning of the current fiscal
year to 8,272 million yen at the end of the first quarter of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 2,099 million yen, an increase of 291 million yen from 1,808 million
yen provided in the same period of the previous fiscal year. This increase was mainly due to increases in proceeds fromthe collection of trade receivables and a decrease in payments of other payables, primarily accounts payable.
Net cash used in investing activities totaled 63 million yen, a decrease of 69 million yen from 5 million yen provided in
the same period of the previous fiscal year. This was due to an increase in purchase of investment securities and adecrease in proceeds from sales of investment securities.
Net cash used in financing activities totaled 265 million yen, an increase of 183 million yen from 82 million yen usedin the same period of the previous fiscal year. This was due to decreases in repayments of short-term borrowings,
proceeds from disposal of treasury shares and proceeds from issuance of shares.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 13, 2022 forecasts for the fiscal year ending March 31, 2023: net sales of 22,400
million yen (up 4.7% year on year), operating income of 2,120 million yen (up 6.0% year on year), ordinary income of
2,160 million yen (up 5.2% year on year), and profit attributable to owners of parent of 1,370 million yen (up 3.0%
year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)First quarter of FY3/23(As of Jun. 30, 2022)

AssetsCurrent assets
Cash and deposits

6,464,852

8,273,518

Notes and accounts receivable-trade, and contract assets

5,533,330

4,174,799

Merchandise and finished goods

147,538

250,947

Work in process

99,301

121,786

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

5,761

8,446

144,293297,297(5,875)(10,243)

12,389,203

13,116,553

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

842,406

847,258

Accumulated depreciation(548,763)(567,027)

Buildings and structures, net

293,643

280,231

142,361

142,361

Land
Other
Accumulated depreciation
Other, net

565,150

584,187(454,587)(470,313)

110,562

113,873546,567

536,466

Goodwill

102,785

102,846

Customer-related assets

83,113

83,163

Software80,90977,467

Other

7,626

7,626

274,435

271,103

Investment securities

542,531590,756

Retirement benefit asset

705,144705,878

Deferred tax assets

536,929

652,022

Guarantee deposits

457,167

456,986

Other

89,93491,505

Allowance for doubtful accounts(1,925)(3,303)

Total investments and other assets

2,329,781

2,493,846

3,150,785

3,301,416

15,539,989

16,417,970

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)First quarter of FY3/23(As of Jun. 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,380,056

1,061,951

Short-term borrowings

8,518

-

Income taxes payable

563,468

180,441

Contract liabilities

430,851

1,536,553

Provision for bonuses

1,194,536

443,692

Provision for bonuses for directors (and other officers)

77,5307,152

Provision for loss on construction contracts

52,96051,164

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

2,173,019

4,621,074

5,453,976

120,728

126,603

6,646-

1,058,791

1,065,716

24,65525,297

513,608

504,118

1,724,430

1,721,735

6,345,505

7,175,711

Share capital

1,535,409

1,535,409

Capital surplus

1,703,991

1,702,732

Retained earnings

5,865,484

5,841,098

Treasury shares(175,264)(175,459)

Total shareholders’ equity

8,929,621

8,903,780

121,768

123,696

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(2,240)63,126

Remeasurements of defined benefit plans

110,706

107,731

Total accumulated other comprehensive income

230,234

294,554

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

534,62843,9239,194,483

9,242,258

15,539,989

16,417,970

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)

Net sales

4,900,462

5,119,276

Cost of sales

3,629,283

3,826,933

Gross profit

1,271,179

1,292,342

Selling, general and administrative expenses

929,042

1,030,962

Operating income

342,136

261,380

Interest income

1,541

3,656

Dividend income

2,766

4,401

Rental income

806

604

-

13,683

Subsidy income

1,801

4,231

Other

1,973

3,559

Total non-operating income

8,888

30,137

Interest expenses

408

172

Commission expenses

403

361

Provision of allowance for doubtful accounts

223

1,011

Foreign exchange losses

603-

Share acquisition rights issuance costs

864-

Non-operating income

Foreign exchange gains

Non-operating expenses

Other

16

8

2,519

1,554

Ordinary income

348,505

289,963

Profit before income taxes

348,505

289,963

Income taxes

103,50358,768

Profit245,001

231,194

Total non-operating expenses

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

6

7,211

7,305

237,790

223,888

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)

245,001

231,194

Valuation difference on available-for-sale securities(7,925)

1,928

Foreign currency translation adjustment

54,14567,699Remeasurements of defined benefit plans, net of tax(5,951)(2,974)

Total other comprehensive income

40,26866,653285,269

297,847

277,173

288,131

8,095

9,716

ProfitOther comprehensive income

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

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23(3) Quarterly Consolidated Statement of Cash FlowsFirst three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)

Profit before income taxes

348,505

289,963

Depreciation

26,57826,906

Amortization of software

5,695

6,044

Amortization of goodwill

9,296

5,713

Amortization of customer-related assets

4,902

4,620

Amortization of trademark

235-

Amortization of technology assets

418-(524,262)(751,675)

5,850

4,933

Cash flows from operating activities

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses

(715)

(734)

(4,307)(8,057)408

172

Decrease (increase) in trade receivables and contract assets

808,673

1,399,913

Increase (decrease) in contract liabilities

922,770

1,104,121

Decrease (increase) in inventories

297,574(128,579)

Increase (decrease) in trade payables(114,634)(326,413)

Other, net

484,015

981,150

Subtotal

2,271,004

2,608,080

Interest and dividends received

4,307

10,024

Interest paid

(444)

(174)

Income taxes paid

(466,466)(517,984)

Net cash provided by (used in) operating activities

1,808,401

2,099,947

8

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

First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)

Cash flows from investing activities
Purchase of property, plant and equipment(14,604)(18,291)

Proceeds from sale of property, plant and equipment

6,269

-

Purchase of software(7,439)(2,273)(298)(44,009)

Purchase of investment securities
Proceeds from sale of investment securities

22,601-

Loan advances

-

(673)

Collection of loans receivable

-

2,073

Proceeds from refund of guarantee deposits

-

1,383

(921)

(713)

Payments of guarantee deposits
Proceeds from sale of membership

282-

Other, net(237)(1,111)

Net cash provided by (used in) investing activities

5,652(63,615)(300,000)(9,047)

Repayments of lease obligations(6,647)(6,467)

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

Proceeds from issuance of shares

135,625

-

-

(195)

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

Purchase of treasury shares
Proceeds from disposal of treasury shares

242,854-

Dividends paid

(152,028)(248,274)

Dividends paid to non-controlling interests-(1,680)(82,295)(265,665)

32,50137,925

Net increase (decrease) in cash and cash equivalents

1,764,259

1,808,591

Cash and cash equivalents at beginning of period

4,853,695

6,463,823

Cash and cash equivalents at end of period

6,617,955

8,272,414

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

9Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
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 74,600 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 74,600 shares with a book value of 171,700
thousand yen as of the end of the first quarter of the current fiscal year.

10Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/23

Segment and Other Information
Segment information
I. First three months of FY3/22 (Apr. 1, 2021 – Jun. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment

DX&SI
business

Packagebusiness

Medical big
databusiness

Globalbusiness

Total(Thousands of yen)Amounts shownon quarterly
Adjustment
consolidated(Note 1)statement ofincome (Note 2)

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

3,104,177

993,112358,652

444,5214,900,462-

4,900,462

14,353

67

-

3,900

18,321(18,321)-

3,118,530

993,179

358,652

448,421

4,918,783(18,321)4,900,462

Segment profit
415,742
316,514
51,291
6,307
789,855(447,719)
342,136
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 profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First three months of FY3/23 (Apr. 1, 2022 – Jun. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

Globalbusiness

Total

Adjustment(Note 1)(Thousands of yen)Amounts shown onquarterly consolidated
statement of income(Note 2)

Net sales
1. External sales
2. Inter-segment sales
and transfers

3,253,221

864,897

319,470

681,687

5,119,276-

5,119,276

19,620

67

-

6,173

25,860(25,860)-

Total

3,272,842

864,965

319,470

687,860

5,145,137(25,860)

5,119,276

Segment profit
512,139
132,186
10,519119,125
773,971(512,590)
261,380
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 profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments(Revisions to reportable segments)
During the past several years, the scale and composition of business operations of the JAST Group as well as the types of 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 first quarter of the fiscal year ending in March 2023. The purposes of
the new segments are to facilitate more accurate and thorough management and decision-making concerning growth strategies andother 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 business and medical big data business. The new segments are the digitaltransformation 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 the commitment of thisbusiness to providing even more added value and creating seeds for new businesses. This business aims to continue the steady
growth of system integration, currently the largest source of JAST’s earnings, while shifting emphasis to co-creation digitaltransformation activities. The goal of these activities with customers is to use digital technologies for business process innovationand 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 to11

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

provide comprehensive digital transformation services and aim for growth. The package business includes the BankNeo integrated
informational systems for financial institutions that was in the software business in prior years. The activities of the global businesswere included in the former software business in prior years. Beginning with this fiscal year, global operations are a separatebusiness segment to more accurately provide information about the distinctive characteristics and growth strategies of the JAST
Group’s businesses, such as solutions and wide-area activities in the ASEAN region and China.
Segment information for the first three months of FY3/22 is based on the new reportable segments.

(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 the importance ofproperly managing these activities has increased. To more appropriately evaluate the performance of the group’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 accordance with expense allocation standards. Beginning with thefirst quarter of the current fiscal year, these expenses are instead recognized as corporate expenses that are part of the adjustment tosegment profit.
Segment profit and loss for the first three months of FY3/22 is based on the new calculation method.

Business Combinations
This information is omitted due to immateriality.
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.

12