May 13, 2021

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
[Japanese GAAP]
Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange, First Section
4323
URL: https://www.jast.jp
Takeaki Hirabayashi, President and CEO
Hiroyuki Norimoto, General Manager of General Affairs Department,
Tel: +81-6-4560-1000
Personnel & General Affairs Division
Scheduled date of Annual General Meeting of Shareholders:June 25, 2021
Scheduled date of payment of dividend:
June 11, 2021
Scheduled date of filing of Annual Security Report:
June 28, 2021
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts)
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on May 13, 2021 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, 2021 (April 1, 2020 – March 31, 2021)(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, 2021
4.3
25.3
18,7891,216
1,310
Fiscal year ended Mar. 31, 2020
6.8
13.9
18,019970
1,021
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2021:
749 (-%)
Fiscal year ended Mar. 31, 2020:(119) (-%)

%
28.3
17.9

Profit attributable toowners of parent
Million yen
%
578
(30)
-

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, 2021
107.95107.90
8.9
10.1
6.5
Fiscal year ended Mar. 31, 2020
(5.76)
(0.5)
7.7
5.4
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2021: Fiscal year ended Mar. 31, 2020: -(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Mar. 31, 2021
12,861
6,850
As of Mar. 31, 2020
12,988
6,218
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2021:
6,813

Equity ratio
%
53.0
47.7
As of Mar. 31, 2020:

Net assets per share
Yen
1,265.96
1,154.07
6,189(3) Consolidated cash flows
Cash flows fromoperating activities
Million yen
2,131
417

Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020

Cash flows from
Cash flows from
Cash and cash equivalents
investing activities
financing activities
at end of period
Million yen
Million yen
Million yen
87(1,247)
4,853
(527)
(185)
3,908

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

Total

Total
dividends

Dividend on
equity(consolidated)
%
%
2.4
25.9
2.3

Payout ratio(consolidated)

Yen
Yen
Yen
Yen
Yen Million yen
Fiscal year ended Mar. 31, 2020
0.00
28.00
28.00
151
Fiscal year ended Mar. 31, 2021
0.00
28.00
28.00
152
Fiscal year ending Mar. 31, 2022
0.00
30.00
30.00
19.7
(forecasts)
Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend: 28.00 yen

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)
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

19,500

3.8

1,330

9.3

1,360

3.8

820

41.7

152.37

* 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

Please refer to “Notes to Consolidated Financial Statements” for further information.

(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, 2021:

5,612,230 shares

As of Mar. 31, 2020:

5,612,230 shares

As of Mar. 31, 2020:

248,984 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2021:

230,423 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2021:
5,362,310 sharesFiscal year ended Mar. 31, 2020:
5,324,711 shares
Note: The Company’s stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (47,800
shares each as of Mar. 31, 2021 and 2020, and is deducted from the number of shares that is used to calculate theaverage 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, 2021 (April 1, 2020 – March 31, 2021)(1) Non-consolidated results of operations
Net sales
Million yen
15,203
14,427

Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020

%
5.4
4.6

Operating income
Million yen
%
1,001
(1.1)
1,013
38.7

(Percentages represent year-on-year changes)
Ordinary income
ProfitMillion yen% Million yen
%
1,106
(1.3)
401
1,121
43.8
21
(93.4)

Diluted net income per
share
Yen
Yen
74.83
74.79
4.07
-

Net income per share
Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020
(2) Non-consolidated financial position

Total assets
Net assets
Million yen
Million yen
As of Mar. 31, 2021
11,785
6,897
As of Mar. 31, 2020
12,1096,539
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2021:
6,892

Equity ratio
%
58.5
54.0
As of Mar. 31, 2020:

Net assets per share
Yen
1,280.62
1,219.41
6,539

Note 1: The current financial report is not subject to audit by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to theCompany’s management at the time the materials were prepared, but are not promises by the Company regarding future
performance. Actual results may differ materially from the forecasts. Please refer to “1. Overview of Results of Operations, (4)Outlook” on page 3 for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

Contents of Attachments

1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

2(3) Cash Flows3(4) Outlook

3

2. Basic Approach to the Selection of Accounting Standards

4

3. Consolidated Financial Statements and Notes

5(1) Consolidated Balance Sheet

5(2) Consolidated Statements of Income and Comprehensive Income

7

Consolidated Statement of Income

7

Consolidated Statement of Comprehensive Income

8(3) Consolidated Statement of Changes in Equity

9(4) Consolidated Statement of Cash Flows

11(5) Notes to Consolidated Financial Statements

12

Going Concern Assumption

12

Reclassifications

12

Additional Information

12

Segment and Other Information

12Per-share Information

15

Subsequent Events

15

1

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

1. Overview of Results of Operations(1) Results of Operations
The Japanese economy was impacted by the global COVID-19 pandemic throughout the fiscal year that ended on
March 31, 2021 and there are still concerns about the economy due to this crisis.
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 February 2021 figures), net sales continued to climb, rising
0.4% year on year in fiscal 2020 compared with 4.0% annual growth in fiscal 2019. However, due to the current
increase in the impact of COVID-19 and other reasons, the outlook for the IT industry is extremely uncertain.
Consolidated sales and earnings of the Japan System Techniques Group (Japa n System Techniques Co., Ltd.
(JAST) and its consolidated subsidiaries, hereafter “the Group”) in the current fiscal year posted net sales of
18,789 million yen (up 4.3% year on year), operating income of 1,216 million yen (up 25.3% year on year),ordinary income of 1,310 million yen (up 28.3% year on year), and profit attributable to owners of parent of 578
million yen (vs. loss attributable to owners of parent of 30 million yen in the previous fiscal year) due to an
impairment loss of 315 million yen. Business segment performance was as follows.
In the software business (individualized contracted software development), there was a decrease in orders fromthe service/retail industry but orders from the telecommunications and manufacturing industries and thefinance/insurance/brokerage industry increased. As a result, net sales in this business totaled 12,687 million yen(up 5.0% year on year) and the operating income was 160 million yen (up 105.5% year on year).
In the GAKUEN business (sale and related services of operational reform packages for schools), there wereincreases in sales of program products (PP) to universities and implementation support and maintenance services
sales. End user computing (EUC: individualized contracted development of related sys tems) sales decreased. Net
sales in this business totaled 3,216 million yen (up 5.2% year on year) and the operating income was 856 million
yen (up 20.4% year on year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construc tion), sales in the core
university and public sector categories decreased but there were strong sales at highly profitable projects andselling and other expenses decreased. Net sales in this business totaled 1,465 million yen (down 6.4% year onyear) and operating income was 120 million yen (up 27.3% year on year).
In the medical big data business (inspections, analysis and related services for medical information data), sales of
the automated inspection service for health insurance claims and services fo r notification of the cost of medicalcare decreased. Sales of support services for health insurance organizations and cloud services for managing
welfare public assistance version of health insurance claims were higher than one year earlier. Despite strong
sales, R&D and other expenses increased. As a result, net sales in this business totaled 1,419 million yen (up8.0% year on year) and operating income was 90 million yen (down 3.0% year on year).
(2) Financial Position
The balance of current assets at the end of the current fiscal year was 9,696 million yen, up 1.0% over the end of
the previous fiscal year. The balance of non-current assets was 3,165 million yen at the end of the current fiscal
year, down 6.5% over the end of the previous fiscal year. This was mainly due to impairment loss for goodwill
and customer-related assets.
The balance of current liabilities at the end of the current fiscal year was 4,388 million yen, down 15.1% over theend of the previous fiscal year. This was mainly due to a decrease in short-term borrowings. The balance of
non-current liabilities was 1,623 million yen at the end of the current fiscal year, up 1.3% over the end of theprevious year.
The balance of total net assets was 6,850 million yen at the end of the current fiscal year, up 10.2% over the endof the previous fiscal year.

2Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(3) Cash Flows
Cash and cash equivalents increased 945 million yen from 3,908 million yen at the beginning of the current fiscal
year to 4,853 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 2,131 million yen, compared with 417 million yen provided in
the previous fiscal year. This difference was mainly due to a decrease in payments of other payables, primarily
accounts payable, and an increase in proceeds from the collection of trade receivables .
Cash flows provided by investing activities totaled 87 million yen, compared with 527 million yen used in theprevious fiscal year. This difference was mainly due to a decrease in payment for the purchase of shares ofsubsidiaries and proceeds from redemption of investment securities.
Cash flows used in financing activities totaled 1,247 million yen, compared with 185 million yen used in theprevious fiscal year. This difference was mainly due to a decrease in short-term borrowings.
Reference: Cash flow indicators
FY3/17

FY3/18

FY3/19FY3/20FY3/21Equity ratio (%)

55.4

50.4

46.8

47.7

53.0

Equity ratio based on market value (%)

50.0

56.4

55.5

42.1

64.2

Interest-bearing debt to cash flow ratio (years)

0.5

0.4

1.2

3.6

0.2

Interest coverage ratio (times)
78.0
431.8
478.5
94.1
615.0
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 numberof shares outstanding at the end of the period, excluding treasury shares.
* Interest-bearing debt is calculated using total loans-payable on the consolidated balance sheet.
* Interest payments use the amount of interest expenses paid stated on the consolidated statement of cash flows.

(4) Outlook
The outlook for the business climate for the Group in the fiscal year ending in March 2022 is uncertain because of
the continuing impact of the global COVID-19 pandemic. Particularly in the IT industry where the environment isextremely volatile, JAST understands that it will be difficult to achieve growth if it remains overly dependent on
contract development, 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 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,
the size of our operations and other goals. In this fiscal year, we will continue to take many actions in order toaccomplish the goals of the current medium-term plan.
To express the central theme of the fiscal year ending in March 2022, the Group has selected the following
slogan: Use innovations for a better future and create value-added businesses to conquer our markets. In thecontracted development business, our goal is to increase the earnings of this core business while launchingbusinesses that can become next-generation activities of our group. In the GAKUEN, medical big data and otherbusinesses using our own brands, we will focus on making all our brands stronger and increasing our market
share as well as on R&D for new technologies and products and on starting new businesses in order to continue
the growth of these businesses.
Based on this outlook, we expect increases in sales and earnings in th e fiscal year ending March 31, 2022. We
forecast net sales of 19,500 million yen (up 3.8% year on year), operating income of 1,330 million yen (up 9.3%
year on year), ordinary income of 1,360 million yen (up 3.8% year on year), and profit attributable to owners ofparent of 820 million yen (up 41.7% year on year).
3Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

2. Basic Approach to the Selection of Accounting Standards
The Group will continue to prepare consolidated financial statements using generally accepted accounting
principles in Japan for the time being to permit comparisons with prior years and with the financial data of othercompanies.
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 FY3/21

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Thousands of yen)
FY3/21(As of Mar. 31, 2021)

AssetsCurrent assets
Cash and deposits

3,909,343

4,854,727

Notes and accounts receivable-trade

4,502,676

3,953,965

Merchandise and finished goods

71,634

185,543

Work in process

698,017

527,715

1,516

2,544

Raw materials and supplies
Securities

200,644-

Other

238,579

184,859

Allowance for doubtful accounts(19,471)(13,034)

9,602,941

9,696,321

763,597

829,063

Accumulated depreciation(462,594)(533,263)

Buildings and structures, net

301,002295,799

142,361

142,361

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

Land
Other

487,040

518,695

Accumulated depreciation(358,559)(414,255)

Other, net

128,480

104,440

571,845542,601

Goodwill

437,343

175,722

Customer-related assets

181,063

106,056

Trademark right

37,348

7,602

Technology assets

66,303

13,496

Software64,54568,329Total property, plant and equipment
Intangible assets

Other

7,626

7,626

794,230

378,834

Investment securities

558,208

632,126

Retirement benefit asset

465,943666,814

Deferred tax assets

436,814416,291

Guarantee deposits

443,489439,769

Other

162,906

104,010

Allowance for doubtful accounts(48,036)(15,208)

Total investments and other assets

2,019,325

2,243,803

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

53,385,400

3,165,239

12,988,341

12,861,561

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(Thousands of yen)
FY3/21(As of Mar. 31, 2021)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings

990,491

1,021,837

1,500,000

407,800

8,400

2,800

Income taxes payable

307,068

473,761

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Advances received

774,631885,138

30,67662,319823,126

605,148

Other

733,742929,345

5,168,137

4,388,151

2,800

-

47,64384,228

Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

1,845

4,239

992,271

1,017,504

Deferred tax liabilities

61,062

34,890Other496,364

482,171

1,601,987

1,623,034

6,770,124

6,011,185

Share capital

1,076,669

1,076,669

Capital surplus

1,113,912

1,128,115

Retained earnings

4,178,503

4,605,874

Treasury shares(233,240)(218,515)

Total shareholders’ equity

6,135,844

6,592,143

Valuation difference on available-for-sale securities

113,396

186,775

Foreign currency translation adjustment(30,713)(81,346)

Remeasurements of defined benefit plans(28,978)

115,566

Total accumulated other comprehensive income

53,704

220,996

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

Accumulated other comprehensive income

Share acquisition rights

-

5,530

Non-controlling interests

28,66831,705

6,218,217

6,850,375

12,988,341

12,861,561

Total net assets
Total liabilities and net assets

6Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

Net sales

18,019,792

18,789,152

Cost of sales

13,607,485

14,169,048

Gross profit

4,412,307

4,620,104

Selling, general and administrative expenses

3,441,497

3,403,779

970,809

1,216,324

Interest income

15,55024,242

Dividend income

6,833

6,919

Rental income

4,921

2,603

Commission income

1,514

1,451

Operating income
Non-operating income

Foreign exchange gains-

12,251

Subsidy income

36,63536,874

Other

9,843

19,143

Total non-operating income

75,299103,485

Interest expenses

4,471

3,449

Foreign exchange losses

17,639-Non-operating expenses

Rental expenses
Share acquisition rights issuance costs
Other
Total non-operating expenses
Ordinary income

139

134

-

4,545

2,278

1,194

24,527

9,323

1,021,581

1,310,486

738,103

315,925-

29,535Extraordinary losses
Impairment losses
Loss on valuation of investment securities

738,103345,461

Profit before income taxes

Total extraordinary losses

283,477

965,025

Income taxes-current

301,727

481,462

Income taxes-deferred

19,156(99,559)

Total income taxes

320,884

381,903

Profit (loss)(37,406)

583,122

Loss attributable to non-controlling interests(6,730)

4,242

Profit (loss) attributable to owners of parent(30,675)

578,8797

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

Consolidated Statement of Comprehensive Income
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(37,406)

583,122(771)

73,379Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

8,002(51,831)

Remeasurements of defined benefit plans, net of tax(89,142)

144,545

Total other comprehensive income(81,911)

166,094(119,317)

749,216(113,957)

746,171(5,360)3,045

Comprehensive income
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 FY3/21(3) Consolidated Statement of Changes in Equity
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

1,085,695

4,359,161(277,050)

6,244,476

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares(149,982)(30,675)(30,675)

29,001

Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity

(80)

(80)

43,89072,891(785)

Total changes during period
Balance at end of period(149,982)

(785)

-

28,216(180,657)

43,810(108,631)

1,076,669

1,113,912

4,178,503(233,240)

6,135,844

Accumulated other comprehensive income
Valuation
Foreigndifference on
currency
available-for- translation
sale securities adjustment
Balance at beginning of
period114,167(37,345)

Total
Share
Non-controlling
Remeasurements accumulatedacquisitioninterestsof defined benefit
otherrightsplans
comprehensive
income60,163

136,986-

37,010Total net
assets6,418,472

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(149,982)(30,675)(80)
72,891

(785)

(771)

6,632

(89,142)(83,281)

(771)

6,632

(89,142)(83,281)

113,396(30,713)(28,978)

53,7049(8,342)(91,624)-(8,342)(200,255)-

28,6686,218,217

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

1,113,912

4,178,503(233,240)

6,135,844

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares(151,509)(151,509)

578,879

578,879

14,203(62)(62)

14,78728,991

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-

14,203427,370

14,724456,298

1,076,669

1,128,115

4,605,874(218,515)

6,592,143

Non-controllinginterests

Total net
assets

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasurements accumulateddifference on
currencyof defined
otheravailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
period113,396(30,713)(28,978)

53,704

Shareacquisitionrights-

28,6686,218,217

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(151,509)
578,879(62)
28,991-73,379(50,633)

144,545

167,291

5,530

3,037

175,859

73,379(50,633)

144,545

167,291

5,530

3,037

632,158

186,775(81,346)

115,566

220,996

5,530

31,7056,850,375

10

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(4) Consolidated Statement of Cash Flows
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

283,477
91,06526,37773,07545,2271,965
3,489
738,10352,31133,19376,976(22,384)
4,471(132,187)
174,516(69,890)(138,982)(608,886)

965,025
134,863
18,46046,98622,891
2,338
4,151
315,925
110,440(200,870)
26,810(31,161)3,449
532,377(216,632)
55,56333,402599,636

Subtotal

631,9212,423,657

Interest and dividends received
Interest paid
Income taxes paid

23,355(4,433)(233,577)

31,806(3,465)(320,531)

Net cash provided by (used in) operating activities

417,265

2,131,466

58,080(65,702)(30,162)(72,011)-(80,639)(22,453)(21,120)
9,909
200,000(416,822)-(30,259)
1,042
28,674(1,389)4,458(1,735)(527,162)

87,030(43,772)(19,712)(37,719)(149,982)(80)
69,999(1,092,200)(29,593)(8,400)(151,509)(62)
28,842(3,759)-Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of software
Amortization of goodwill
Amortization of customer-related assets
Amortization of trademark
Amortization of technology assets
Impairment losses
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Increase (decrease) in advances received
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of software
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Proceeds from disposal of treasury shares
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

-

5,680

(185,027)(1,247,242)(1,543)(25,813)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(296,467)
4,204,722

945,440
3,908,254

Cash and cash equivalents at end of period

3,908,254

4,853,695

11

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Reclassifications
Not applicable.

Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on Ju ne 26, 2018 terminatedthe 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 amountequivalent to the market value of the stock in lieu of stock compensation in accordance with the rules on the stockcompensation plan for directors. In principle, a director becomes eligible for stock compensation only after theindividual 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 47,800 shares of JAST with a book value of
87,713 thousand yen as of the end of the previous fiscal year, and the BBT held 47,800 shares with a book valueof 87,713 thousand yen as of the end of the current fiscal year.
Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are JAST and subsidiaries’ constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the pur poses of determining the allocation of
resources and evaluating performance.
The Group has four reportable business segments: software business, GAKUEN business, system sales business and medical
big data business each of which conducts its business in line with the comprehensive strategy it has devised for products andservices in both domestic and overseas markets.
The software business handles the contracted software development. The GAKUEN business is engaged in development, sale,and provision of related services of operational reform packages for schools. The system sales business conducts IT
equipment sales, IT/telecom infrastructure construction. The medical big data business provides a full line of services
including automated inspection services for health insurance claims, data analysis and notification of the cost of medical care.
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.

12

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

3. Information related to net sales, profit or loss, assets, liabilities, and other items for each reportable segment
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

12,080,881

3,058,369

1,566,820 1,313,721 18,019,792

62,96737,39012,143,848

3,095,760

78,330711,038

94,9197,581,888

1,750,550

1,268,596

Total

Amounts shown
Adjustment on consolidated(Note 1)
financial(Note 2)statements(Note 3)

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets-

18,019,792

131,567(131,567)-

1,598,029 1,313,721 18,151,359

31,208-(131,567)

18,019,792

977,922(7,112)970,809

802,403 11,403,439

1,584,902

12,988,341

93,634

Other items
Depreciation
135,365
15,2402,005
15,513
168,126
168,126
Increase in property, plantand equipment and intangible
79,08912,806914
22,768
115,577
115,577
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

12,687,772

3,216,146

1,465,779 1,419,455 18,789,152

38,75918,846

12,726,531

3,234,992

160,996856,302120,798

6,810,264

2,185,172

1,137,765

Total

Amounts shown
Adjustment on consolidated(Note 1)
financial(Note 2)statements(Note 3)

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets-

18,789,152

72,228(72,228)-

1,480,387 1,419,469 18,861,380(72,228)

18,789,152

1,228,929(12,605)

1,216,324

876,515 11,009,718

1,851,843

12,861,561

14,608

13

90,831Other items
Depreciation
139,286
24,001
2,264
17,151
182,705
182,705
Increase in property, plantand equipment and intangible
93,378
22,102
1,107
16,095
132,685
132,685
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.
Related information
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Net sales
Geographical information concerning sales to external customers in Japan is not presented since sales to externalcustomers exceeded 90% of net sales shown on the consolidated statement of income.

13

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21(2) Property, plant and equipment
Geographical information concerning property, plant and equipment is not presented since property, plant and equipment
in Japan exceed 90% of property, plant and equipment on the consolidated balance sheet.
3. Information by major client
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Company nameTIS Inc.

Net sales

Business segment

1,283,936 thousand yen

Software businessNet sales

Business segment

1,716,652 thousand yen

Software business

FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Company name
NTT COMWARE CORPORATION

Information related to impairment losses of non-current assets for each reportable segment
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Softwarebusiness

GAKUENbusiness

System sales
business

Medical big
data business(Thousands of yen)
Elimination or
Total
corporate

Impairment losses
738,103
738,103
Note: In the software business, there were impairment losses of 408,103 thousand yen for goodwill and 329,999 thousand yen
for customer-related assets.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Softwarebusiness

GAKUENbusiness

System sales
business

Medical big
data business(Thousands of yen)
Elimination or
Total
corporate

Impairment losses
315,925
315,925
Note: In the software business, there were impairment losses of 198,521 thousand yen for goodwill, 45,255 thousand yen forcustomer-related assets, 25,997 thousand yen for trademark rights and 46,152 thousand yen for technology assets.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Softwarebusiness

GAKUENbusiness

System sales
business

Medical big
data business(Thousands of yen)
Elimination or
Total
corporate

Amortization for the period

73,075----73,075

Balance at end of period

437,343

-

-

-

-

437,343

Notes: 1. In the software business, there was an impairment loss of 408,103 thousand yen for goodwill.
2. In the software business, JAST purchased the stock of AG NET PTE. LTD. (AG NET) located in Singapore andmade it a consolidated subsidiary in FY3/20. Goodwill of 303,284 thousand yen emerged related to the purchases.
The amount of goodwill is based on the revised method to reflect reviewed allocation of the acquisition cost arisingfrom finalization of the provisional accounting treatment.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Softwarebusiness

GAKUENbusiness

System sales
business

Medical big
data business(Thousands of yen)
Elimination or
Total
corporate

Amortization for the period

46,986----

46,986

Balance at end of period

175,722

-

-

-

-

175,722

Note: In the software business, there was an impairment loss of 198,521 thousand yen for goodwill.
Information related to gain on bargain purchase for each reportable segment
Not applicable.

14

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21

Per-share Information
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)
Net assets per share(Yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

1,154.07

1,265.96

Net income (loss) per share(5.76)

107.95

Diluted net income per share-

107.90Note: The basis of calculation is as follows.
(Thousands of yen)
FY3/21(As of Mar. 31, 2021)

FY3/20(As of Mar. 31, 2020)
Net assets per share
6,218,217

6,850,375

Deduction on total net assets

28,66837,236(Non-controlling interests)(28,668)(31,705)

6,189,549

6,813,139

5,363,246 shares

5,381,807 shares

FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(30,675)

578,879--(30,675)

578,879

5,324,711 shares

5,362,310 shares

Total net assets on balance sheet

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

Net income (loss) per share
Profit (loss) attributable to owners of parent
Amount not available to common shareholders
Profit (loss) attributable to owners of parent
applicable to common shares
Average number of shares outstanding during period
Diluted net income per share--

Increase in the number of common shares- shares

2,603 shares(Share acquisition rights)( - shares)

Adjustment to profit attributable to owners of parent(

2,603 shares)

Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effectNote: JAST has established a new Board Benefit Trust (BBT). The Company’s stock remaining in the BBT (47,800 shareseach as of March 31, 2020 and 2021) is included in treasury shares in shareholders’ equity and deducted from thenumber of shares outstanding at the end of the period that is used to calculate net assets per share. Moreover, the BBT
shares (48,177 shares in FY3/20 and 47,800 shares in FY3/21) are included in treasury shares deducted from thenumber of shares used to calculate the average number of shares outstanding during the period that is used to calculate
net income (loss) per share.

Subsequent Events
Not applicable.

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.

15