February 6, 2017

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2017
(Nine Months Ended December 31, 2016)
Company name: Japan System Techniques Co., Ltd.
Stock code:
4323
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Director and CFO
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:[Japanese GAAP]
Listing: Tokyo Stock Exchange, Second Section
URL: http://www.jast.jp
Tel: +81-6-4560-1000
February 7, 2017
None
None

Note: The original disclosure in Japanese was released on February 6, 2017 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, 2016
(April 1, 2016 – December 31, 2016)(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%
Nine months ended Dec. 31, 2016
9,574
19.4
(38)
10
(28)
Nine months ended Dec. 31, 2015
8,016
0.2
(117)
(90)
(79)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2016: (30) (- %)Nine months ended Dec. 31, 2015: (121) (- %)Nine months ended Dec. 31, 2016
Nine months ended Dec. 31, 2015

Net income per share

Diluted net income per
share

Yen

Yen

(5.50)(15.06)-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2016
9,397
5,280
As of Mar. 31, 2016
9,019
5,448
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2016:
5,237

Equity ratio

Net assets per share
%
Yen
55.7
998.0359.8
1,028.31
As of Mar. 31, 2016:
5,396

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2016
Fiscal year ending Mar. 31, 2017
Fiscal year ending Mar. 31, 2017 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

0.00
0.00

-

25.00

25.00

25.00

25.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Net sales

Operating income

Ordinary income

Million yen%
Million yen% Million yen%
Full year
13,120
11.0
600
49.4
610
38.3
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
355
21.6
67.64

* 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:

Yes2) 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, 2016:

5,612,230 shares

As of Mar. 31, 2016:

5,612,230 shares

As of Mar. 31, 2016:

364,210 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2016:

364,210 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2016:

5,248,020 shares

Nine months ended Dec. 31, 2015:

5,248,020 shares

Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly summary report is exempted from quarterly review procedures based on the Financial Instruments andExchange Act. At the time of disclosure, the review procedures for the quarterly financial statements have been completed.
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 FY3/17

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. Matters Related to Summary Information (Notes)

4(1) Changes in Consolidated Subsidiaries during the Period

4(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

4(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4(4) Additional Information

4

3. Important Information about Going Concern Assumption

4

4. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Segment and Other Information

10

5. Supplementary Information

11

1

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, consolidated results of the Japan System Techniques Group (Japan
System Techniques Co., Ltd. and its consolidated subsidiaries, hereafter “the Group”) were as follows: net sales of
9,574 million yen (up 19.4% from the same period of the previous fiscal year), operating loss of 38 million yen (vs.
operating loss of 117 million yen in the same period of the previous fiscal year), ordinary income of 10 million yen (vs.
ordinary loss of 90 million yen in the same period of the previous fiscal year), and loss attributable to owners of parentof 28 million yen (vs. loss attributable to owners of parent of 79 million yen in the same period of the previous fiscal
year). Results by segment were as follows.
In the software business (individualized contracted software development), net sales and profits increased. Sales
remained strong because orders from the service/retail industry, the finance/insurance/brokerage industry, the public
sector, and the telecommunications industry increased while there was a decrease in orders from the manufacturingindustry and medical institutions. As a result, net sales in this business totaled 7,114 million yen (up 24.5% from thesame period of the previous fiscal year) and operating income was 100 million yen (vs. operating loss of 71 million
yen in the same period of the previous fiscal year).
In the package business (development, sale and related services of operational reform packages for schools), both
net sales and profits declined. The IT equipment sales and operation/maintenance services increased, but there was a
decline in sales of highly profitable items including end user computing (EUC: contracted development of
package-related systems) sales, implementation support and program product (PP) sales to universities. Net sales inthis business totaled 1,300 million yen (down 4.1% from the same period of the previous fiscal year) and operating
loss was 43 million yen (vs. operating income of 50 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 from system
integration (SI) projects for public sectors increased, while equipment sales to universities declined. As a result,sales totaled 655 million yen (up 14.5% from the same period of the previous fiscal year), and there was an
operating loss of 25 million yen (vs. operating loss of 48 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), net sales
totaled 504 million yen (up 35.6 % from the same period of the previous fiscal year), and operating loss totaled 64
million yen (vs. operating loss of 48 million yen in the same period of the previous fiscal year). Sales remained
strong due to the expansion of cloud services for checking service providers, services for data analysis and notificationof the cost of medical care, and support services for data health plans and other services in addition to automatedinspection services for health insurance claims. However, there was an increase in up-front costs involving
enhancement of organization for future growth.
Features of the Group’s quarterly results
A feature of the Group’s software, package and systems sales businesses is that the delivery inspection period of
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 bemuch smaller than in the second and fourth quarters.
(2) Explanation of Financial Position
1) Balance sheet position
The balance of current assets at the end of the third quarter of the current fiscal year was 6,889 million yen, up 291
million yen from the end of the previous fiscal year. This was mainly due to the collection of accounts
receivable-trade and increases in advances received, cash and deposits caused by short-term loans payable, and workin process. The balance of non-current assets was 2,508 million yen at the end of the third quarter, up 85 million yen
from the end of the previous fiscal year. This was mainly due to the introduction of new equipment for improving
internal systems and network environment.
2

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

The balance of current liabilities at the end of the third quarter was 2,679 million yen, up 414 million yen from theend of the previous fiscal year. This was mainly due to an increase in advances received, short-term loans payable
and a decrease in provision for bonuses. The balance of non-current liabilities was 1,436 million yen at the end of
the third quarter, up 130 million yen from the end of the previous fiscal year. This was mainly due to increases in net
defined benefit liability and provision for directors’ retirement benefits, and long-term loans payable.
The balance of net assets was 5,280 million yen at the end of the third quarter, down 167 million yen from the end of
the previous fiscal year. The main factor of the change was the payment of dividends.
2) Cash flows
Cash and cash equivalents increased 427 million yen from 1,447 million yen at the beginning of the current fiscal
year to 1,875 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 292 million yen, an increase of 29 million yen from 262 million
yen provided in the same period of the previous fiscal year. This increase was mainly due to a decrease in proceedsfrom collection of notes and accounts receivable-trade while there was a decrease in outlays for notes and accounts
payable-trade.
Cash flows provided by investing activities totaled 29 million yen, a decrease of 28 million yen from 58 million yen
provided in the same period of the previous fiscal year. This decrease was mainly due to an increase in outlays forthe purchase of property, plant and equipment.
Cash flows provided by financing activities totaled 108 million yen, a decrease of 42 million yen from 151 million
yen provided in the same period of the previous fiscal year. This decrease was mainly due to a decrease in short-termloans payable.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
In the first nine months of the current fiscal year, the overall Japanese economy continued to recover at a moderatepace. The recovery is backed by the benefits of economic initiatives along with ongoing improvements in thenumber of jobs and personal income. However, the outlook remained unclear mainly because of concerns overincreased uncertainty about overseas economies, such as policy changes of the new US government, slowing
economic growth in China and other emerging countries in Asia, and the U.K. leaving the EU.
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 November figures), net sales rose 1.5% year on year in Fiscal
2015 (compared with 3.0% annual growth in Fiscal 2014), keeping a positive trend. The monthly sales figuresincreased year on year for four straight months since August 2016, indicating that the IT industry as a whole is on amoderate growth path.
The Group’s slogan for the fiscal year ending March 31, 2017 is “make a commitment to reaching targets yourcustomary thoughts and actions.” We will go back to the basics for development operations, sales techniques,internal administrative procedures and all other aspects of our operations. To achieve the goals of every department
and person in our Group, we will make “thinking and translating thoughts into actions” the basis for everything we
do. As a result, we aim to boost orders volume and enhance profitability in the contracted development business, aswell as to achieve sustained growth by further expanding JAST-driven business centering on proprietary brandproducts.
Based on the above, we maintain the May 12, 2016 forecasts for the fiscal year ending March 31, 2017, in which we
expect increases in sales and profits: net sales of 13,120 million yen (up 11.0% year on year), operating income of
600 million yen (up 49.4% year on year), ordinary income of 610 million yen (up 38.3% year on year), and profit
attributable to owners of parent of 355 million yen (up 21.6% year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

2. Matters Related to Summary Information (Notes)(1) Changes in Consolidated Subsidiaries during the Period
Not applicable.
While it is not subject to the disclosure requirement regarding changes in specified subsidiaries, the Company newly
included ISR Co.,Ltd. in the scope of consolidation due to acquisition of this company’s shares in the first quarter ofthe current fiscal year.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016
Following the revision of the Corporation Tax Act, the Company has applied the “Practical Solution on a Change inDepreciation Method due to Tax Reform 2016” (Accounting Standards Board of Japan (ASBJ) Practical Issues Task
Force (PITF) No. 32, June 17, 2016) from the first quarter of the current fiscal year, and changed the depreciation
method for facilities attached to buildings and structures acquired on or after April 1, 2016, from thedeclining-balance method to the straight-line method.
This change has no effect on profit or loss in the first nine months of the current fiscal year.
(4) Additional Information
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
Effective from the first quarter of the current fiscal year, the Company has applied the “Implementation Guidance on
Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016).
3. Important Information about Going Concern Assumption
Not applicable.

4

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
FY3/16(As of Mar. 31, 2016)(Thousands of yen)
Third quarter of FY3/17(As of Dec. 31, 2016)

AssetsCurrent assets
Cash and deposits

2,436,624

2,840,588

Notes and accounts receivable-trade

3,436,003

2,967,688

Merchandise and finished goods

78,43470,652Work in process

326,978

706,841

2,692

1,900

Deferred tax assets

191,764

173,686

Other

129,132

129,647

Allowance for doubtful accounts(4,139)(1,948)6,597,491

6,889,057

Raw materials and supplies

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

616,203

667,697

Accumulated depreciation(310,047)(344,543)

Buildings and structures, net

306,156

323,154Land

142,361

142,361Other284,375

372,225(208,302)(224,125)

76,072148,099524,591

613,615

Goodwill

10,00144,756

Software120,195

95,005

Other

7,189

7,626

137,385

147,388

Investment securities

564,136

612,520

Net defined benefit asset

447,426

460,006

Deferred tax assets

65,58082,250

Guarantee deposits

376,493

376,087

Other351,708

261,381

Allowance for doubtful accounts(45,119)(45,119)

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

5

1,760,225

1,747,127

2,422,202

2,508,131

9,019,694

9,397,188

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17(Thousands of yen)
Third quarter of FY3/17(As of Dec. 31, 2016)

FY3/16(As of Mar. 31, 2016)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

907,911894,180-

254,863-

8,400

Income taxes payable

104,706

554

Provision for bonuses

419,637

295,345

Provision for directors’ bonuses

20,935

20,353

Provision for loss on construction contracts

6,079

53,657

Other805,784

1,152,378

2,265,055

2,679,732-

30,800

Provision for directors’ retirement benefits

372,585

405,118

Net defined benefit liability

800,914850,886

Other

132,686

149,678

Total current liabilities
Non-current liabilities
Long-term loans payable

Total non-current liabilities
Total liabilities

1,306,186

1,436,483

3,571,242

4,116,216

1,076,669

1,076,669

Net assets
Shareholders’ equity
Capital stock
Capital surplus

998,790994,621

Retained earnings

3,460,641

3,300,555

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

Total shareholders’ equity

5,269,562

5,105,307

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

50,966

76,589Foreign currency translation adjustment(14,352)(20,626)

Remeasurements of defined benefit plans

90,40076,433

Total accumulated other comprehensive income

127,013132,396

51,87543,2685,448,452

5,280,971

9,019,694

9,397,188

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

6Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/16(Apr. 1, 2015 – Dec. 31, 2015)(Thousands of yen)First nine months of FY3/17(Apr. 1, 2016 – Dec. 31, 2016)

Net sales

8,016,741

9,574,776

Cost of sales

6,493,312

7,909,908

Gross profit

1,523,429

1,664,867

Selling, general and administrative expenses

1,640,523

1,703,538

Operating loss

(117,094)(38,670)

Interest income

6,915

6,065

Dividend income

6,097

5,894

Rent income

10,873

10,406

Non-operating income

Compensation income-

15,107

4,056

11,264

Other

8,415

12,544

Total non-operating income

36,35861,283

Interest expenses

1,434

1,028

Rent expenses

6,154

9,931

Other

2,088

1,469

Total non-operating expenses

9,677

12,429Ordinary income (loss)(90,413)

10,183

Profit (loss) before income taxes(90,413)

10,183

Income taxes

10,432

39,221

Loss(100,845)(29,038)

Loss attributable to non-controlling interests(21,789)(153)

Loss attributable to owners of parent(79,055)(28,885)

Subsidy income

Non-operating expenses

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/16(Apr. 1, 2015 – Dec. 31, 2015)(Thousands of yen)First nine months of FY3/17(Apr. 1, 2016 – Dec. 31, 2016)(100,845)(29,038)

10,80525,623Foreign currency translation adjustment(8,248)(12,655)

Remeasurements of defined benefit plans, net of tax(23,655)(13,966)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income(21,098)(999)(121,944)(30,037)(95,988)(23,502)(25,955)(6,534)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 the Third Quarter of FY3/17(3) Quarterly Consolidated Statement of Cash FlowsFirst nine months of FY3/16(Apr. 1, 2015 – Dec. 31, 2015)(Thousands of yen)First nine months of FY3/17(Apr. 1, 2016 – Dec. 31, 2016)

Profit (loss) before income taxes(90,413)

10,183

Depreciation

57,84959,510

Amortization of software

28,06429,900

Amortization of goodwill

12,92910,529(151,865)(128,388)

43,83051,532

Decrease (increase) in net defined benefit asset(13,337)(12,580)

Interest and dividend income(13,013)(11,959)-(15,107)

Cash flows from operating activities

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

Compensation income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade

1,434

1,028

648,842

501,555

Increase (decrease) in advances received

306,013318,231

Decrease (increase) in inventories(285,712)(369,629)

Increase (decrease) in notes and accounts payable-trade(227,699)(41,557)

Other, net

39,597(1,229)Subtotal

356,521402,019

Interest and dividend income received

14,555

12,987

Interest expenses paid

(1,357)(1,145)(107,004)(136,350)-

15,107

262,714292,618

Income taxes paid
Proceeds from compensation
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits

106,422

114,230

Purchase of property, plant and equipment(15,706)(50,701)

Purchase of software(24,712)(4,119)Purchase of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for investments in capital of subsidiaries andassociates resulting in change in scope of consolidation
Payments for guarantee deposits(1,829)(1,440)-(26,827)(2,007)-(1,500)(564)

Proceeds from collection of guarantee deposits

387

591

Other, net(2,751)(1,814)

Net cash provided by (used in) investing activities

58,302

29,354

Net increase (decrease) in short-term loans payable

346,147

254,863

Repayments of lease obligations(11,634)(10,701)-

42,000Cash flows from financing activities

Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid

(1,800)(45,235)(131,200)(131,200)

Dividends paid to non-controlling interests
Payments for investments in capital of subsidiaries andassociates that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities(2,324)(1,164)(48,000)-

151,188

108,562

Effect of exchange rate change on cash and cash equivalents(2,057)(2,969)Net increase (decrease) in cash and cash equivalents

470,148427,566

Cash and cash equivalents at beginning of period

1,559,743

1,447,493

Cash and cash equivalents at end of period

2,029,892

1,875,059

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Significant Changes in Shareholders’ Equity
Not applicable.

Segment and Other Information
Segment information
I. First nine months of FY3/16 (Apr. 1, 2015 – Dec. 31, 2015)
1. Information related to net sales and profit or loss for each reportable segment(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Softwarebusiness

Packagebusiness

System sales
business

Medicalbig data
business

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

5,716,318

1,355,852

572,315372,255

8,016,741-

8,016,741

91,972-

11,378-103,351(103,351)

-

Total

5,808,291

1,355,852

583,694372,255

8,120,093(103,351)

8,016,741

Segment profit (loss)(71,225)

50,862(48,119)(48,827)(117,311)

216(117,094)

Total

Net sales

Notes: 1. Adjustment to segment profit (loss) represents eliminations for inter-segment transactions.
2. Segment loss is consistent with operating loss 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 FY3/17 (Apr. 1, 2016 – Dec. 31, 2016)
1. Information related to net sales and profit or loss for each reportable segment(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Softwarebusiness

Packagebusiness

System sales
business

Medicalbig data
business

7,114,250

1,300,150

655,582504,792

9,574,776-

9,574,776

124,982-

190,005(190,005)

-

Total

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

65,023-

7,179,274

1,300,150

780,564

504,792

9,764,782(190,005)

9,574,776

Segment profit (loss)

100,698(43,983)(25,087)(64,359)(32,732)(5,938)(38,670)

Notes: 1. Adjustment to segment profit (loss) represents eliminations for inter-segment transactions.
2. Segment loss is consistent with operating loss shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Significant change in goodwill
In the software business, the Company purchased the stock of ISR Co.,Ltd. and made it a consolidated subsidiary in the first
three months of FY3/17. Goodwill of 45,284 thousand yen emerged related to the purchases.

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/17

5. Supplementary Information
Goods Manufactured, Orders Received and Sales(1) Goods Manufactured
Goods manufactured in the period under review are broken down by segment as follows.
(Thousands of yen)First nine months of FY3/17
Operating segment
Year-on-year (%)(Apr. 1, 2016 – Dec. 31, 2016)
Software business
6,206,792
123.0
Package business
101.0
807,656
System sales business
514,223
125.8
Medical big data business
160.9
381,236
Total
7,909,908
121.8
Notes: 1. The above amounts are based on cost of sales; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.

(2) Orders Received
Orders received in the period under review are broken down by segment as follows.
Operating segment
Orders received
Year-on-year (%)
Order backlog
Software business
7,761,228
126.4
2,192,619
Package business
1,586,251
108.0
960,726
System sales business
501,187
67.6
221,646
Medical big data business
355,493102.6
534,741
Total
10,204,161
117.4
3,909,733
Notes: 1. The above amounts are based on selling prices; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.

(Thousands of yen)
Year-on-year (%)
129.8
133.8
58.6
290.6
131.6

(3) Sales
Sales in the period under review are broken down by segment as follows.
(Thousands of yen)First nine months of FY3/17
Operating segment
Year-on-year (%)(Apr. 1, 2016 – Dec. 31, 2016)
Software business
7,114,250
124.5
Package business
1,300,150
95.9
System sales business
655,582
114.5
Medical big data business
504,792
135.6
Total
9,574,776
119.4
Notes: 1. Inter-segment transactions have been eliminated.
2. The following table indicates sales amounts to major customers and their ratios to total sales amount.
(Thousands of yen)First nine months of FY3/16
First nine months of FY3/17(Apr. 1, 2015 – Dec. 31, 2015)(Apr. 1, 2016 – Dec. 31, 2016)
Customers
Amount%Amount%NTT COMWARECORPORATION

984,735

12.3

1,051,761

11.0

TIS Inc.

398,880

5.0

631,694

6.6

DUSKIN CO., LTD.

401,2965.0

523,501

5.5

3. The above amounts do not include consumption taxes.

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.

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