February 13, 2024

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2024
(Nine Months Ended December 31, 2023)[Japanese GAAP]
Company name:
Stock code:
Representative:
Contact:

Japan System Techniques Co., Ltd.
4323
Takeaki Hirabayashi, President and CEO
Taku Hirabayashi, Director

Listing: Tokyo Stock Exchange
URL: https://www.jast.jp

Tel: +81-6-4560-1000
February 14, 2024
None
None

Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:Note: The original disclosure in Japanese was released on February 13, 2024 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2023
(April 1, 2023 – December 31, 2023)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Profit attributable toowners of parent
Million yen
%
1,099
(5.8)
1,167
27.7

Ordinary income

Million yen% Million yen% Million yen%
Nine months ended Dec. 31, 2023
18,527
11.4
1,614
3.5
1,648
2.7
Nine months ended Dec. 31, 2022
16,635
11.0
1,559
20.3
1,605
20.6
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2023: 1,190 (down 12.7%)
Nine months ended Dec. 31, 2022: 1,363 (up 51.3%)
Diluted net income per
Net income per share
share
Yen
Yen
Nine months ended Dec. 31, 2023
89.62
Nine months ended Dec. 31, 2022
95.16
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, 2023.

(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2023
17,63911,607
As of Mar. 31, 2023
17,413
10,816
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2023:
11,560Equity ratio
%
65.5
61.8
As of Mar. 31, 2023:

Net assets per shareYen
942.60878.07
10,768

2. Dividends
1Q-endYen-

2Q-end
Yen
0.00
0.00

Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
Fiscal year ending Mar. 31, 2024 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
32.00
40.00

Total
Yen
32.00
40.00

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

Operating income

Ordinary income

Million yen

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

%

Million yen%

Yen

Full year
25,300
7.6
2,540
6.5
2,600
6.1
Note: Revisions to the most recently announced consolidated earnings forecasts: None

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) 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 Dec. 31, 2023:

12,418,460 shares

As of Mar. 31, 2023:

12,418,460 shares

As of Mar. 31, 2023:

154,268 shares

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

154,384 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2023:

12,264,117 shares

Nine months ended Dec. 31, 2022: 12,264,324 shares

Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. 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.
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 Third Quarter of FY3/24

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 Nine-month Period

6

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

8(4) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Additional Information

9

Segment and Other Information

10

Business Combinations

101

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

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 nine months of the current fiscal year were 18,527 million
yen (up 11.4% year on year). Operating income was 1,614 million yen (up 3.5% year on year), ordinary income was
1,648 million yen (up 2.7% year on year), and profit attributable to owners of parent was 1,099 million yen (down 5.8%
year on year).
Business segment performance was as follows.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 6.8% from one year earlier to 11,102 million yen and the operating income increased 11.3% to
1,796 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 7.2% from one year earlier to 3,211 million yen and the operating income decreased 2.1% to721 million yen. There was an increase in sales, installation and support services, and other activities involving the
GAKUEN Series, a strategic university management system consisting of GAKUEN RX and UNIVERSAL PASSPORT
RX. However, sales of program products for BankNeo, an information systems integration package for financial
institutions, were lower. The overall number of orders in this business remains firm.
(Medical big data business)
Segment sales increased 31.4% from one year earlier to 1,557 million yen and the operating income was up 66.7% to285 million yen. The performance of this business improved primarily due to increased sales of analysis services, support
services, and other highly profitable services.
(Global business)
Sales increased 28.9% from one year earlier to 2,657 million yen and the operating income increased 19.3% to 330
million yen. This can be largely attributed to the large number of orders received for SAP installation support services in
Malaysia, even though there were lower sales in SI development projects and ERP package sales and installation
consulting in Thailand.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 22.5% from one year earlier to 1,519 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. These expenses
involve short-term investments made during the fiscal year’s first half. Corporate general and administrative expenses
are consistent with the initial plan for this fiscal year.
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the third quarter were 14,068 million yen, down 118 million yen from the end of the previous
fiscal year. This was mainly due to a decrease in accounts receivable-trade. Non-current assets were 3,570 million yen,up 343 million yen from the end of the previous fiscal year.
Current liabilities at the end of the third quarter were 4,087 million yen, down 616 million yen from the end of theprevious fiscal year. This was mainly due to a decrease in provision for bonuses. Non-current liabilities were 1,944
million yen, up 50 million yen from the end of the previous fiscal year.
Net assets at the end of the third quarter were 11,607 million yen, up 791 million yen from the end of the previous fiscal
year.

2

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

2) Cash flows
Cash and cash equivalents increased 348 million yen from 6,793 million yen at the beginning of the current fiscal year
to 7,141 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 1,286 million yen, an increase of 803 million yen from 482 million yen
provided in the same period of the previous fiscal year. This increase was mainly due to an increase in proceeds from thecollection of trade receivables.
Net cash used in investing activities totaled 552 million yen, a decrease of 480 million yen from 72 million yen used in
the same period of the previous fiscal year. This was due to an increase in purchase of property, plant and equipment.
Net cash used in financing activities totaled 414 million yen, a decrease of 138 million yen from 275 million yen used in
the same period of the previous fiscal year. This was due to an increase in dividends paid.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 12, 2023 forecasts for the fiscal year ending March 31, 2024: 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).

3

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Thousands of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

AssetsCurrent assets
Cash and deposits

7,206,690

7,592,061

Notes and accounts receivable-trade, and contract assets

6,532,385

5,325,274

Merchandise and finished goods

172,554602,771

Work in process

100,612164,157

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

8,239

4,161

174,586

408,815(7,924)(28,348)

14,187,144

14,068,893

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

958,056

1,253,160

Accumulated depreciation(589,641)(632,877)

Buildings and structures, net

368,415620,283

142,361

142,361

Land
Other

607,152

639,799

Accumulated depreciation(485,935)(457,968)

Other, net

121,216

181,831631,994

944,476

Total property, plant and equipment
Intangible assets
Goodwill

88,49975,011

Customer-related assets

71,56160,655

Software

74,913

143,338

Other

7,626

7,626

242,601

286,631

Investment securities

612,807634,609

Retirement benefit asset

674,681

676,828

Deferred tax assets

539,732

316,666

Guarantee deposits

435,927

495,779

Other

93,485

253,263

Allowance for doubtful accounts(4,577)(37,730)

Total investments and other assets

2,352,057

2,339,417

3,226,652

3,570,524

17,413,797

17,639,418

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/24

FY3/23(As of Mar. 31, 2023)(Thousands of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,495,532

1,128,213

498,990

189,975

Contract liabilities

354,018

956,992

Provision for bonuses

1,270,424

582,377

110,250

77,174

6,801

39,770967,961

1,112,725

4,703,9784,087,229

141,759

153,415

Income taxes payable

Provision for bonuses for directors (and other officers)
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Provision for share awards for directors (and otherofficers)
Retirement benefit liability

1,110,713

1,090,979

Asset retirement obligations

239,628

273,492

Deferred tax liabilities

28,46427,800

Other373,011398,661

1,893,578

1,944,348

6,597,556

6,031,578

Share capital

1,535,409

1,535,409

Capital surplus

1,702,732

1,702,732

Retained earnings

7,389,420

8,091,312

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

10,451,859

11,153,507

Valuation difference on available-for-sale securities

137,114148,103

Foreign currency translation adjustment

119,184

207,349

Remeasurements of defined benefit plans

60,61851,252

Total accumulated other comprehensive income

316,917406,705

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

547,46347,627

10,816,240

11,607,839

17,413,797

17,639,418

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(Thousands of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

Net sales

16,635,219

18,527,947

Cost of sales

12,188,064

13,565,027

Gross profit

4,447,155

4,962,920

Selling, general and administrative expenses

2,887,203

3,348,520

Operating income

1,559,952

1,614,400

Interest income

12,101

17,858Dividend income

8,937

8,499

Rental income

2,314

4,079

Foreign exchange gains

12,094

9,053

Non-operating income

Insurance claim income-

14,700

10,31914,752

Other

5,058

15,356

Total non-operating income

50,82584,299Subsidy income

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

377

231

4,185

49,387

918

757

5,481

50,375

Ordinary income

1,605,296

1,648,323

Profit before income taxes

1,605,296

1,648,323

427,866

550,658

1,177,429

1,097,664

Total non-operating expenses

Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

10,325(1,455)

1,167,103

1,099,120

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

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)
Profit(Thousands of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

1,177,429

1,097,664

Valuation difference on available-for-sale securities

21,061

10,988Foreign currency translation adjustment

179,947

91,536

Remeasurements of defined benefit plans, net of tax(14,673)(9,365)

Total other comprehensive income

186,335

93,1591,363,764

1,190,824

1,348,886

1,188,908

14,878

1,915

Other 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 Third Quarter of FY3/24(3) Quarterly Consolidated Statement of Cash FlowsFirst nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(Thousands of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

1,605,296

1,648,323

Depreciation

83,335

107,910

Amortization of software

18,84918,946

Amortization of goodwill

18,37618,752

Amortization of customer-related assets

14,85915,163(731,123)(689,050)

22,057(22,132)

Cash flows from operating activities
Profit before income taxes

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset(2,440)(2,147)

Interest and dividend income(21,039)(26,357)

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

377

231

323,483

1,276,141

Increase (decrease) in contract liabilities

462,097

601,429

Decrease (increase) in inventories(105,976)(489,683)

Increase (decrease) in trade payables(397,433)(376,894)

Other, net(140,567)(124,426)

Subtotal

1,150,152

1,956,206

22,98827,792

(376)

(230)

Income taxes paid

(690,485)(697,627)

Net cash provided by (used in) operating activities

482,279

1,286,141

Payments into time deposits-(693,471)

Proceeds from withdrawal of time deposits-

681,171

Purchase of property, plant and equipment

Interest and dividends received
Interest paid

Cash flows from investing activities(38,209)(359,760)

Proceeds from sale of property, plant and equipment

1,080

6,097

Purchase of software(9,491)(92,078)

Purchase of investment securities(48,418)(1,532)

Loan advances(3,491)(59,998)

Proceeds from collection of loans receivable

5,071

11,432

Proceeds from refund of guarantee deposits

25,03523,763

Payments of guarantee deposits(2,659)(83,082)

Other, net(1,650)14,686

Net cash provided by (used in) investing activities(72,733)(552,772)

Net increase (decrease) in short-term borrowings(9,047)-

Repayments of lease liabilities
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares(20,011)(15,487)

3,740

-

(439)

(244)

Dividends paid

(248,274)(397,228)(1,680)(1,752)(275,712)(414,712)

Cash flows from financing activities

Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

109,804

30,049Net increase (decrease) in cash and cash equivalents

243,638

348,707

Cash and cash equivalents at beginning of period

6,463,823

6,793,050

Cash and cash equivalents at end of period

6,707,462

7,141,757

8

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/24(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 with shareholders
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; same afterward
unless indicated otherwise) receive stock compensation or a monetary amount equivalent to the market value of the stockin lieu of stock compensation in accordance with the rules on the stock compensation plan for directors. In principle, adirector 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 third quarter of the current fiscal year.

9Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/24

Segment and Other Information
Segment information
I. First nine months of FY3/23 (Apr. 1, 2022 – Dec. 31, 2022)
1. Information related to net sales and profit or loss for each reportable segment
Globalbusiness(Thousands of yen)Amounts shown onquarterly consolidated
statement of income(Note 2)

DX&SI
business

Packagebusiness

Medical big
data business

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

10,392,405

2,996,685

1,185,412

2,060,715

16,635,219-

16,635,219

65,94642,200-35,299143,446(143,446)

-

Total

10,458,352

3,038,886

1,185,412

2,096,015

16,778,665(143,446)

16,635,219

Total

Adjustment(Note 1)

Net sales

Segment profit
1,614,877
736,708
171,071
277,2422,799,900 (1,239,948)
1,559,952
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 nine months of FY3/24 (Apr. 1, 2023 – Dec. 31, 2023)
1. Information related to net sales and profit or loss for each reportable segment
Globalbusiness

DX&SI
business

Packagebusiness

Medical big
data business

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

11,102,428

3,211,247

1,557,054

2,657,216

18,527,947-

18,527,947

91,375407-

45,637

137,420(137,420)

-

Total

11,193,803

3,211,655

1,557,054

2,702,854

18,665,367(137,420)

18,527,947

Total

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

Net sales

Segment profit
1,796,996
721,060
285,129
330,662
3,133,849 (1,519,449)
1,614,400
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.

Business Combinations
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.

10