News Release Dated September 24, 2019
Company: Japan System Techniques Co., Ltd.
Representative: Takeaki Hirabayashi, President and CEO
Stock code: 4323, Tokyo Stock Exchange, First Section
Contact: Noriaki Okado, Managing Director and CFO
Tel: +81-6-4560-1000

Notice of Establishment of Capital and Business Alliance with TerraSky
The Board of Directors of Japan System Techniques Co., Ltd. (JAST) approved a resolution on September
24, 2019 to sign a capital and business alliance agreement with TerraSky Co., Ltd., which is listed on thefirst section of the Tokyo Stock Exchange (stock code 3915).
1. Background and purpose of the alliance
TerraSky is one of the leading companies in the field of cloud integration, having provided these integration
services since the emergence of cloud technology. The company’s mission is share success with clients byproviding advanced technologies and the best choices. Since its inception, TerraSky has assisted customers
with using the cloud and worked on increasing the use of cloud technology as a consulting partner ofSalesforce.com. TerraSky has assisted more than 4,000 companies use of the cloud, including companies in
the finance, insurance, health care, services and other business sectors. As a result, the company is one of thebest performing Salesforce.com consulting partners in Japan. Furthermore, TerraSky has used knowledge
gained from providing cloud services to create and provide a cloud service that makes product and technology
development activities much more efficient.
JAST has taken full advantage of its position as a software firm with no affiliations with other companies toconduct a broad range of information services. Activities encompass customers in many industries andtechnologies and are not restricted by equity relationships. JAST is distinguished by its diverse array ofsolutions that match the needs of specific business sectors. For example, BankNeo is a data integration
package for financial institutions and GAKUEN centralizes the management of university administrative dataand is used by more than 300 universities in Japan. Overall, JAST has the expertise to help create solutions
for the requirements of customers.
One goal of this alliance is to increase customer satisfaction by effectively utilizin g the solution expertise andaccomplishments of the two companies. Another goal of the alliance is the further growth of the corporate
value of JAST and TerraSky backed by activities to encourage more companies to implement a digitaltransformation.
2. Outline of the business alliance
JAST and TerraSky have reached an agreement regarding the following activities concerning the businessalliance. The two companies will continue to hold discussions for the purpose of using this alliance toincrease customer satisfaction and corporate value.
Activities:
1) Development of products and personnel training for BankNeo business operations
2) More customers and personnel training for operations involving Salesforce.com
3) More customers and personnel training for the Amazon Web Services business4) More customers and more added value for operations involving TerraSky products5) Cooperation for the growth of business activities outside Japan1

3. Outline of the capital alliance
JAST and TerraSky have agreed to use stock exchange purchases to acquire approximately 70 million yen ofeach other’s stock within six months. Purchasing this stock will reinforce the relationship between thecompanies that is rooted in trust and cooperation. These investments are also intended to maximize thebenefits of joint activities of the two companies and ensure the effectiveness of the alliance.
4. Profile of TerraSky (As of February 28, 2019)(1) Name(2) Address(3) Representative(4) Business
Capital stock(As of May 31, 2019)(6) Established(5)

TerraSky Co., Ltd.
Tokyo Head Office15-17th Floor Taiyo Life Nihonbashi Building,
2-11-2 Nihombashi, Chuo-ku, Tokyo 103-0027
Hideya Sato, Representative Director, President
Support for developing the best possible IT systems using thecloud, outsourced development of these systems, and development
and sale of services and products created specifically for the cloud1,128.49 million yen

March 2006
Hideya Sato:29.59%NTT TechnoCross Corporation:
11.22%
Major shareholders and(7)MareSky Co., Ltd.:
8.10%
shareholding ratios
J.P. MORGAN BANK LUXEMBOURG S.A.1300000:
6.30%
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC): 4.35%
CapitalNot applicable.
Personnel
Not applicable.
Relationships between(8)
JAST and TerraSky have a business relationship
JAST and TerraSky
Business
involving the development of IT systems.
Related parties
Not applicable.
(9) Results of operations and financial conditions of TerraSky for the last three years (Millions of yen)
Fiscal years ended
February 2017
February 2018
February 2019
Consolidated net assets
1,238
1,661
3,212
Consolidated total assets
2,552
3,817
5,655
Consolidated net assets per share (Yen)103.65130.41
242.39Consolidated sales
3,534
4,864
6,558
Consolidated operating income
202
268
125
Consolidated ordinary income
216
305
192
Profit attributable to owners of parent
128
171
156
Consolidate earnings per share (Yen)
11.66
15.32
13.38
Dividend per share (Yen)
0.00
0.00
0.00
5. Schedule(1) Resolution of the Board of Directors(2) Signing of capital and business alliance agreement

September 24, 2019
September 25, 2019 (tentative)

6. Outlook
JAST believes that this capital and business alliance will have only a negligible effect on results of operationsin the fiscal year ending in March 2020. An announcement will be made promptly if the disclosure of any
further information regarding this alliance is needed.

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