November 5, 2018

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2019
(Six Months Ended September 30, 2018)[Japanese GAAP]
Company name: Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange, First Section
Stock code:
4323
URL: http://www.jast.jp
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Director and CFO
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
November 6, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for analysts)
Note: The original disclosure in Japanese was released on November 5, 2018 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2018
(April 1, 2018 – September 30, 2018)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen% Million yen%
14.9
175 189.6
Six months ended Sep. 30, 2018
8,024
263 182.6
280 136.9
Six months ended Sep. 30, 2017
6,984
12.2
93 278.9
118 213.1
60 618.4
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2018:
147 (up 68.5 %)Six months ended Sep. 30, 2017:
87 (- %)

Six months ended Sep. 30, 2018
Six months ended Sep. 30, 2017

Net income per share

Diluted net income per
share

Yen

Yen

33.45
11.55

-

(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
13,116
6,246
As of Sep. 30, 2018
As of Mar. 31, 201812,3086,246
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2018:
6,208

Equity ratio
%
47.3
50.4
As of Mar. 31, 2018:

Net assets per share
Yen
1,182.94
1,181.54
6,200

2. Dividends
1Q-endYen-

Fiscal year ended Mar. 31, 2018
Fiscal year ending Mar. 31, 2019
Fiscal year ending Mar. 31, 2019 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
2Q-end3Q-endYear-end
Yen
Yen
Yen
0.00
28.00
0.00
28.00

Total
Yen
28.00
28.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Net sales

Operating income

Ordinary income

Million yen% Million yen% Million yen%
Full year
15,765
0.9
865
16.7
875
11.4
Note: Revisions to the most recently announced consolidated earnings forecasts: None

(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
shareMillion yen
%
Yen
585
1.0
111.47

* 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 Sep. 30, 2018:

5,612,230 shares

As of Mar. 31, 2018:

5,612,230 shares

As of Mar. 31, 2018:364,210 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2018:364,210 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2018:

5,248,020 shares

Six months ended Sep. 30, 2017:

5,248,020 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 Second Quarter of FY3/19

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

2(2) Explanation of Financial Position

3(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 Six-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Six-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

9

Subsequent Events

10

Contingent liabilities

111Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the Japanese economy continued to recover at a moderate pace despite
the continuation of geopolitical risk in eastern Asia. The recovery was supported by improvements in corporate
profits, the number of jobs and personal income due to the benefits of economic initiatives by the Japanese
government.
In the IT industry in Japan, according to the latest statistics in the “Survey of Selected Service Industries” by the
Ministry of Economy, Trade and Industry (the final August figures), net sales continued to climb, rising 2.5%
year on year in Fiscal 2017 (compared with 1.3% annual growth in Fiscal 2016). Despite the higher sales, theoutlook for the IT industry is uncertain because there were some months in fiscal 2017 when sales were lower
than one year earlier.
Consolidated results of operations of the Japan System Techniques Group (Japan System Techniques Co., Ltd.
(JAST) and its consolidated subsidiaries, hereafter “the JAST Group”) were strong in the first half of the current
fiscal year. Sales and earnings at all levels increased as follows: net sales of 8,024 million yen (up 14.9% year onyear), operating income of 263 million yen (up 182.6% year on year), ordinary income of 280 million yen (up136.9% year on year), and profit attributable to owners of parent of 175 million yen (up 189.6% year on year).
In the first quarter of the current fiscal year, the Package business segment was renamed the GAKUEN businesssegment. Results by segment were as follows.
In the software business (individualized contracted software development), sales in the manufacturing industry
and the telecommunications industry, the service/retail industry, and to educational institutions increased while
there was a decrease in sales in public sector. Net sales in this business totaled 5,492 million yen (up 13.9% year
on year) and operating income was 277 million yen (up 275.4% year on year).
In the GAKUEN business (development, sale and related services of operational reform packages for schools),
there were increases in implementation support sales, IT equipment sales and end user computing (EUC:
contracted development of package-related systems) sales. However, there was a decline in sales of program
products (PP) to universities, which are a highly profitable category of this business. Net sales in this businesstotaled 969 million yen (down 1.9% year on year) and operating loss was 60 million yen (vs. operating income of
62 million yen in the same period of the previous fiscal year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construction), sales to univ ersities
and the public sector increased. Net sales in this business totaled 1,180 million yen (up 48.3% year on year), andoperating income was 145 million yen (vs. operating loss of 9 million yen in the same period of the previous
fiscal year).
Lastly, in the medical big data business (inspection, analysis and related services of medical information), sales ofautomated inspection services for health insurance claims and services for data analysis and notification of thecost of medical care were strong. However, expenses increased faster than sales growth in order to build astronger organization in this business and for other activities. Net sales in this business totaled 382 million yen(up 1.6% year on year), and operating loss totaled 103 million yen (vs. operating loss of 36 million yen in thesame period of the previous fiscal year).
Features of the Group’s quarterly results
A feature of the Group’s software, GAKUEN and systems sales businesses is that the delivery inspection periodof most customers concentrates in March, the last month of the fiscal year for most companies, and then in
September, the last month of the second quarter. This means that the Group’s earnings in the first and third
quarters tend to be much smaller than in the second and fourth quarters.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19(2) Explanation of Financial Position
1) Balance sheet position
The balance of current assets at the end of the second quarter of the current fiscal year was 8,692 million yen,down 748 million yen from the end of the previous fiscal year. This was mainly due to decreases in accounts
receivable-trade and merchandise and finished goods. The balance of non-current assets was 4,424 million yen at
the end of the second quarter, up 1,556 million yen from the end of the previous fiscal year. This was mainly due
to long-term deposits.
The balance of current liabilities at the end of the second quarter was 5,405 million yen, up 841 million yen fromthe end of the previous fiscal year. This was mainly due to increases in short-term loans payable and advances
received, and a decrease in notes and accounts payable-trade. The balance of non-current liabilities was
1,463million yen at the end of the second quarter, down 34 million yen from the end of the previous fiscal year.
The balance of net assets was 6,246 million yen at the end of the second quarter, up 0 million yen from the end of
the previous fiscal year.
2) Cash flows
Cash and cash equivalents increased 1,627 million yen from 2,785 million yen at the beginning of the current
fiscal year to 4,412 million yen at the end of the first six months of the current fiscal year. (vs. 2,689 million yen
at the end of the same period of the previous fiscal year). Cash flows by category were as follows.
Cash flows provided by operating activities totaled 1,385 million yen, an increase of 483 million yen from 901
million yen provided in the same period of the previous fiscal year. This increase was mainly due to an increase inproceeds from collection of notes and accounts receivable-trade and a decrease in outlays for inventories while
there was an increase in payments for accounts payable-trade.
Cash flows used in investing activities totaled 1,508 million yen, a decrease of 1,514 million yen from 6 million
yen provided in the same period of the previous fiscal year. This decrease was mainly due to long-term deposits.
Cash flows provided by financing activities totaled 1,751 million yen, an increase of 1,921 million yen from 169
million yen used in the same period of the previous fiscal year. This increase was mainly due to an increase in
short-term loans payable.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
We maintain the May 11, 2018 forecasts for the fiscal year ending March 31, 2019: net sales of 15,765 million
yen (up 0.9% year on year), operating income of 865 million yen (up 16.7% year on year), ordinary income of
875 million yen (up 11.4% year on year), and profit attributable to owners of parent of 585 million yen (up 1.0%
year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

FY3/18(As of Mar. 31, 2018)
AssetsCurrent assets
Cash and deposits

2,994,700

4,466,523

Notes and accounts receivable-trade

4,991,576

2,989,189

Merchandise and finished goods

576,41284,427Work in process

711,654864,507

2,272

1,472

Other

201,206

321,076

Allowance for doubtful accounts(36,900)(34,898)

9,440,922

8,692,298

Raw materials and supplies

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

657,805

690,561

Accumulated depreciation(375,281)(391,914)

Buildings and structures, net

282,523

298,647Land

142,361

142,361

Other

381,968

417,231(283,798)(298,883)

Accumulated depreciation
Other, net

98,170118,348

523,055

559,356

Goodwill

29,43424,906

Software

86,99771,758

Total property, plant and equipment
Intangible assets

Other

7,626

7,626

124,058

104,291

Investment securities

705,240

693,680

Net defined benefit asset

535,482545,673

Deferred tax assets

389,352

346,674

Guarantee deposits

390,110409,075-

1,680,374

245,123

129,650

Total intangible assets
Investments and other assets

Long-term deposits
Other
Allowance for doubtful accounts(44,609)(44,609)

Total investments and other assets

2,220,698

3,760,518

2,867,812

4,424,166

12,308,734

13,116,464

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

FY3/18(As of Mar. 31, 2018)(Thousands of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

2,040,633

816,718

218,592

2,132,336

8,400

8,400

Income taxes payable271,70275,896

Advances received

652,455

1,048,494

Provision for bonuses

638,152

628,856

Provision for directors’ bonuses

29,087

12,910Other705,120682,1424,564,144

5,405,754

Long-term loans payable

20,300

16,100

Provision for directors’ retirement benefits

426,250

12,084

Net defined benefit liability

920,209943,602

Other

131,268

492,0491,498,027

1,463,837

6,062,172

6,869,591

1,076,669

1,076,669

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

994,621994,621

Retained earnings

4,188,119

4,216,719

Treasury shares(266,539)(266,539)

Total shareholders’ equity

5,992,871

6,021,470

Valuation difference on available-for-sale securities

126,589

118,086

Foreign currency translation adjustment(10,428)(14,182)

Remeasurements of defined benefit plans

91,694

82,695

Total accumulated other comprehensive income

207,856

186,599

45,83538,802

6,246,562

6,246,873

12,308,734

13,116,464

Accumulated other comprehensive income

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

5Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

Net sales

6,984,487

8,024,719

Cost of sales

5,602,511

6,319,197

Gross profit

1,381,975

1,705,521

Selling, general and administrative expenses

1,288,868

1,442,429

93,107

263,092

Interest income

2,779

2,725

Dividend income

2,938

3,218

Rent income

6,687

2,089

Foreign exchange gains

3,923

675

Insurance premiums refunded cancellation

5,226

-

Subsidy income

5,519

8,416

Operating income
Non-operating income

Other

4,072

2,546

Total non-operating income

31,14819,670Interest expenses

711

982

Rent expenses

3,455

976

Other

1,849

683

Total non-operating expenses

6,016

2,642

Ordinary income

118,239

280,120

Profit before income taxes

118,239

280,120

Income taxes

60,321110,003

Profit57,917

170,117

Non-operating expenses

Loss attributable to non-controlling interests(2,691)(5,426)

Profit attributable to owners of parent

60,609175,5446

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

57,917

170,117

Valuation difference on available-for-sale securities

40,659(8,503)Foreign currency translation adjustment(3,455)(5,370)Remeasurements of defined benefit plans, net of tax(7,748)(8,999)Total other comprehensive income

29,455(22,872)

87,373

147,244

89,537

154,287(2,164)(7,042)

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 Second Quarter of FY3/19(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Thousands of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

Profit before income taxes

118,239

280,120

Depreciation

56,18936,334

Amortization of software

21,176

21,284

Amortization of goodwill

6,528

4,528

Cash flows from operating activities

Increase (decrease) in provision for bonuses(61,772)(9,110)

Increase (decrease) in net defined benefit liability

21,23524,325Decrease (increase) in net defined benefit asset(9,515)(10,190)

Interest and dividend income(5,718)(5,943)

Interest expenses
Decrease (increase) in notes and accounts
receivable-trade
Increase (decrease) in advances received

711

982

1,251,184

1,998,868

498,327

408,895

Decrease (increase) in inventories(573,647)

339,505

Increase (decrease) in notes and accounts payable-trade(71,183)(1,223,794)

Other, net(120,049)(234,720)

Subtotal

1,131,705

1,631,084

6,361

6,434

Interest and dividend income received
Interest expenses paid

(712)

(964)

Income taxes paid

(235,775)(251,161)

Net cash provided by (used in) operating activities

901,578

1,385,392(17)

153,108

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment(11,144)(47,819)

Proceeds from sales of real estate for rent-

109,183(16,060)(21,127)(992)(1,181)

9,260-

Purchase of software
Purchase of investment securities
Proceeds from sales of short-term and long-term
investment securities
Proceeds from cancellation of insurance funds
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for long-term deposits paid

12,275

162(861)(19,775)

12,149705-(1,680,374)

Other, net

1,886(1,122)

Net cash provided by (used in) investing activities

6,494(1,508,241)

Net increase (decrease) in short-term loans payable(22,659)

1,914,551

Repayments of lease obligations(11,259)(11,737)

Repayments of long-term loans payable(3,500)(4,200)(131,200)(146,944)

(764)

-

(169,384)

1,751,669(385)(1,769)Net increase (decrease) in cash and cash equivalents

738,303

1,627,050

Cash and cash equivalents at beginning of period

1,951,458

2,785,193

Cash and cash equivalents at end of period

2,689,762

4,412,244

Cash flows from financing activities

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

8Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Significant Changes in Shareholders’ Equity
Not applicable.

Additional Information
Application of the Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.
Effective from the beginning of the first quarter of the current fiscal year, JAST has applied the “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February
16, 2018), etc. Accordingly, deferred tax assets are reclassified and included in the investments and other assets section.
Provision for directors’ retirement benefits
The JAST Board of Directors resolved at a meeting held on May 11, 2018 to terminate the current system for directors’
retirement benefits at the end of the 46th Annual General Meeting of Shareholders scheduled for June 26, 2018. At thismeeting, shareholders approved a resolution to make benefit plan termination payments to directors. JAST plans to makethese termination payments when eligible directors reach the end of their final terms or resign or retire.
Accordingly, the entire amount of the provision for directors’ retirement benefits, which was included in non -current
liabilities, has been deleted and there is instead a long-term accounts payable-other of 356.395 million yen for these benefit
plan termination payments that is included in the “other” item of non-current liabilities.
Some consolidated subsidiaries will maintain a provision for directors’ retirement benefits in non -current liabilities for thepayment of retirement benefits to benefits in accordance with the payment rules of these companies.

Segment and Other Information
Segment information
I. First six months of FY3/18 (Apr. 1, 2017 – Sep. 30, 2017)
1. Information related to net sales and profit or loss for each reportable segment(Thousands of yen)Amounts shown onquarterly
Adjustment
consolidated(Note 1)statement of income(Note 2)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

Total

4,823,911

988,229795,615

376,730

6,984,487-

6,984,487

32,370-19,152-

51,523(51,523)-

4,856,281

988,229814,768

376,730

7,036,010(51,523)

6,984,487

Segment profit (loss)
73,82962,243(9,056)(36,226)
90,7902,317
Notes: 1. Adjustment to segment profit (loss) represents eliminations for inter-segment transactions.

93,107

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

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.

9Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

II. First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
1. Information related to net sales and profit or loss for each reportabl e segment(Thousands of yen)Amounts shown onquarterly
Adjustment
consolidated(Note 1)statement of income(Note 2)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

Total

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

5,492,773

969,201

1,180,017

382,727

8,024,719-

8,024,719

32,049

5,833

2,775

-

40,658(40,658)-

Total

5,524,823

975,034

1,182,792

382,727

8,065,378(40,658)

8,024,719

Net sales

Segment profit (loss)
277,154(60,523)
145,917(103,161)
259,387
3,704
Notes: 1. Segment profit (loss) in the above adjustment represents eliminations for inter -segment transactions.

263,092

2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.
3. In the first quarter of the current fiscal year, the Package business segment was renamed to the GAKUEN businesssegment. The change does not influence the segment information. The segment information for the first six monthsof the previous fiscal year is prepared and disclosed using the new segment name.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.

Subsequent Events
Business combination through acquisition
The JAST Board of Directors resolved at a meeting held on August 21, 2018 to purchase the stock of following companies
located in Malaysia: Virtual Calibre SDN. BHD. (VCSB) and Virtual Calibre MSC SDN. BHD. (VCMSC). Resolutions also
include VCMSC to purchase the stock of Virtual Calibre Consulting SDN. BHD. (VCC) and all three companies (the Virtual
Calibre Group) to become consolidated subsidiaries of JAST. A contract to purchase these shares was signed on August 27,
2018, and the shares of VCSB and VCMSC were purchased on October 11, 2018. As for VCC, stock acquisition procedures
are currently under way.
(1) Summary of business combinations
1) Acquired companies and their business activitiesi) Virtual Calibre SDN. BHD.
Business activities: Software development and consultation servicesii) Virtual Calibre MSC SDN. BHD.
Business activities: Software development and multimedia app design
2) Reasons for acquisition
The JAST Group has been active in the ASEAN region for more than 25 years, primarily at JAST TECHNIQUES PTE.
LTD. in Singapore and JASTEC (THAILAND) CO., LTD. in Thailand. JAST believes this region is a highly attractive
market because of the outlook for a continuation of rapid economic expansion and a growing middle class that will
create a large consumer market.
Adding the Virtual Calibre Group to the JAST Group will expand our operations in Malaysia as well as the entire
ASEAN region. This expansion is expected to contribute to the growth of JAST subsidiaries in the ASEAN region andto more opportunities for the growth of the SAP business in Japan over the medium and long term. These benefits are
expected to enable the JAST Group to grow even faster. Due to this outlook, the decision was made to acquire the
Virtual Calibre Group.
3) Acquisition date
October 1, 2018 (assumed acquisition date)10Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/19

4) Legal form of acquisition
Acquisition of shares
5) Company’s name after acquisition
There is no change in the company’s name.
6) Percentage of voting rights acquiredi) Virtual Calibre SDN. BHD.
100%ii) Virtual Calibre MSC SDN. BHD.
100%7) Basis for choosing the companies to acquire
JAST acquired the shares in exchange for consideration in cash.
(2) Acquisition cost of acquired companies and breakdown by type of consideration
Payment for the acquisition:

Cash1,680.374 million yen

Acquisition cost:

1,680.374(3) Details of major acquisition-related costs
Not yet determined.
(4) Goodwill resulting from the acquisition
Not yet determined.
(5) Breakdown of assets acquired and liabilities assumed on the acquisition date
Not yet determined.

Contingent liabilities
On November 10, 2015 JAST was sued by Plesion Co., Ltd. for payment of incentives (initial demand 40.798 million yen,which the plaintiff later increased to 145.000 million yen) based on the basic business alliance and other agreement related to
medical insurance inspection systems. At the trial on August 10, 2018, the Osaka District Court delivered judgement to order
JAST to pay 145.000 million yen.
Nevertheless, because the factual premises for the judgement were at variance with its perceptions, JAST has appealed thejudgement to the Osaka High Court.
The judgement came with a declaration of provisional execution. In order to seek exemption from the provisional execution,
JAST on August 16, 2018 deposited 120.000 million yen (“Others” under current assets) with the Regional Legal Affairs
Bureau.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

11