August 10, 2023

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2024
(Three Months Ended June 30, 2023)[Japanese GAAP]
Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange4323
URL: https://www.jast.jp
Takeaki Hirabayashi, President and CEO
Toshinori Hamada, General Manager of General Affairs Department
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
August 14, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on August 10, 2023 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2023
(April 1, 2023 – June 30, 2023)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Profit attributable toowners of parent
Million yen%
61 (72.4)
223
(5.8)

Ordinary income

Million yen% Million yen% Million yen%
Three months ended Jun. 30, 2023
5,640
10.2
122 (53.3)
134 (53.6)
Three months ended Jun. 30, 2022
5,119
4.5
261 (23.6)
289 (16.8)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2023:
89 (down 70.0%)
Three months ended Jun. 30, 2022:
297 (up 4.4%)
Diluted net income per
Net income per share
share
Yen
Yen
Three months ended Jun. 30, 2023
5.05
Three months ended Jun. 30, 2022
18.26
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. Net income per share has been calculated as if this stock split
has taken place at the beginning of the fiscal year ended March 31, 2023.

(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2023
18,30010,506
As of Mar. 31, 2023
17,413
10,816
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2023:
10,458Equity ratio
%
57.2
61.8
As of Mar. 31, 2023:

Net assets per shareYen
852.79878.07
10,768

2. Dividends
1Q-endYen-

2Q-endYen
0.00

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

Dividend per share
3Q-endYen-

0.00

Year-end
Yen
32.00

-

40.00

Total
Yen
32.00
40.00

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

Operating income

Ordinary income

Million yen

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

%

Million yen%

Yen

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

1,880

6.1

153.29

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2023:

12,418,460 shares

As of Mar. 31, 2023:

12,418,460 shares

As of Mar. 31, 2023:

154,268 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:

154,398 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2023:

12,264,114 shares

Three months ended Jun. 30, 2022: 12,264,476 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 First Quarter of FY3/24

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

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

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

8(4) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Additional Information

9

Segment and Other Information

10

Business Combinations

101

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) in the first quarter of the current fiscal year were 5,640 million yen (up10.2% year on year). Operating income was 122 million yen (down 53.3% year on year), ordinary income was 134
million yen (down 53.6% year on year), and profit attributable to owners of parent was 61 million yen (down 72.4% year
on year). The order backlog has increased consistently year-on-year across all segments. Nonetheless, the decrease inearnings, as mentioned earlier, is attributed to anticipated cost escalations linked to up-front investments, outlined in thesection titled “General and administrative expenses not allocated to a reportable segment” on the same page. As a result,
we maintain confidence in our ability to meet the projected consolidated earnings forecast for the fiscal year ending on
March 31, 2024.
Business segment performance was as follows.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 6.3% from one year earlier to 3,457 million yen and the operating income decreased 5.8% to
482 million yen. The primary factor behind the decline was that while revenue witnessed growth owing to brisk projectinquiries from both current and new clients, the decrease in profit stemmed from elevated unit labor costs andsubcontracting expenses.
(Package business)
Segment sales increased 11.0% from one year earlier to 960 million yen and the operating income was up 11.4% to 147
million yen. Sales of program products for BankNeo, an information systems integration package for financial
institutions, were slightly lower. However, there was an increase in sales, installation and support services, and otheractivities involving the GAKUEN Series, a strategic university management system consisting of GAKUEN RX andGAKUEN UNIVERSAL PASSPORT RX.
(Medical big data business)
Segment sales increased 30.0% from one year earlier to 415 million yen and the operating income was up 52.0% to 15
million yen. The performance of this business improved primarily due to increased sales of analysis services, support
services, and other highly profitable services.
(Global business)
Sales increased 18.4% from one year earlier to 806 million yen and the operating income decreased 12.6% to 104 million
yen. This can be largely attributed to reduced sales in SI development projects and ERP package sales and installation
consulting in Thailand, even though there were robust sales of SAP installation support services in Malaysia.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 22.5% from one year earlier to 627 million yen. This was mainly
because of higher personnel expenses as more people were hired, in addition to an increase in various expenses associatedwith enhanced training and recruitment, and other events specific to the first quarter.
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the first quarter were 14,817 million yen, up 629 million yen from the end of the previous
fiscal year. This was mainly due to increases in cash and deposits due to collection of accounts receivable-trade andhigher contract liabilities. Non-current assets were 3,483 million yen, up 256 million yen from the end of the previous
fiscal year.
Current liabilities at the end of the first quarter were 5,914 million yen, up 1,210 million yen from the end of the previous
fiscal year. This was mainly due to increases in accrued expenses, which is included in other, and contract liabilities, anddecreases in provision for bonuses and income taxes payable. Non-current liabilities were 1,878 million yen, down 14
million yen from the end of the previous fiscal year.

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

Net assets at the end of the first quarter were 10,506 million yen, down 309 million yen from the end of the previous
fiscal year.
2) Cash flows
Cash and cash equivalents increased 1,780 million yen from 6,793 million yen at the beginning of the current fiscal year
to 8,573 million yen at the end of the first quarter of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 2,319 million yen, an increase of 219 million yen from 2,099 million
yen provided in the same period of the previous fiscal year. This increase was mainly due to an increase in proceeds fromthe collection of trade receivables and a decrease in payments of other payables, primarily accounts payable.
Net cash used in investing activities totaled 137 million yen, a decrease of 73 million yen from 63 million yen used in
the same period of the previous fiscal year. This was due to increases in payments of guarantee deposits and loan advances,
and a decrease in purchase of investment securities.
Net cash used in financing activities totaled 404 million yen, a decrease of 139 million yen from 265 million yen used in
the same period of the previous fiscal year. This was due to an increase in dividends paid.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 12, 2023 forecasts for the fiscal year ending March 31, 2024: net sales of 25,300
million yen (up 7.6% year on year), operating income of 2,540 million yen (up 6.5% year on year), ordinary income of
2,600 million yen (up 6.1% year on year), and profit attributable to owners of parent of 1,880 million yen (up 6.1% year
on year).

3

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Thousands of yen)First quarter of FY3/24(As of Jun. 30, 2023)

AssetsCurrent assets
Cash and deposits

7,206,690

9,002,256

Notes and accounts receivable-trade, and contract assets

6,532,385

5,036,460

Merchandise and finished goods

172,554295,716Work in process

100,612

106,688

8,239

6,047

174,586

374,436

Raw materials and supplies
Other
Allowance for doubtful accounts(7,924)(4,463)

14,187,144

14,817,140

958,056

959,889

Accumulated depreciation(589,641)(609,208)

Buildings and structures, net

368,415350,681

142,361

142,361

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

Land
Other

607,152

621,267

Accumulated depreciation(485,935)(491,556)

Other, net

121,216

129,711

631,994622,753

Goodwill

88,49983,093Customer-related assets

71,561

67,190Software

74,913

101,883

Other

7,626

7,626

242,601

259,793

Investment securities

612,807640,488

Retirement benefit asset

674,681675,316

Deferred tax assets

539,732

689,170

Guarantee deposits

435,927

518,436

Other

93,485112,972

Allowance for doubtful accounts(4,577)(35,910)

Total investments and other assets

2,352,057

2,600,474

3,226,652

3,483,022

17,413,797

18,300,162

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

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

FY3/23(As of Mar. 31, 2023)(Thousands of yen)First quarter of FY3/24(As of Jun. 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,495,532

1,078,682

498,990258,132

Contract liabilities

354,018

1,433,267

Provision for bonuses

1,270,424

562,238

110,250

21,015

6,801

33,910967,961

2,527,415

4,703,9785,914,662

141,759

145,668

Income taxes payable

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

1,110,713

1,099,056

Deferred tax liabilities

28,46425,972

Other612,640

608,262

1,893,578

1,878,960

6,597,556

7,793,623

Share capital

1,535,409

1,535,409

Capital surplus

1,702,732

1,702,732

Retained earnings

7,389,420

7,054,094

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

Treasury shares(175,703)(175,861)

10,451,859

10,116,375

Valuation difference on available-for-sale securities

137,114

155,587

Foreign currency translation adjustment

119,184

129,239

Total shareholders’ equity
Accumulated other comprehensive income

Remeasurements of defined benefit plans

60,61857,496

Total accumulated other comprehensive income

316,917342,323

47,46347,84010,816,240

10,506,539

17,413,797

18,300,162

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

5Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)(Thousands of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

Net sales

5,119,276

5,640,211

Cost of sales

3,826,933

4,280,524

Gross profit

1,292,342

1,359,686

Selling, general and administrative expenses

1,030,962

1,237,668

261,380122,018

Interest income

3,656

8,230

Dividend income

4,401

4,172

Rental income

604

791

13,683

7,078

Operating income
Non-operating income

Foreign exchange gains
Insurance claim income-

14,700

4,231

2,398

Other

3,559

10,828

Total non-operating income

30,137

48,200Subsidy income

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

172

72

1,011

35,510

369

195

1,554

35,777

Ordinary income

289,963

134,440

Profit before income taxes

289,963

134,440

Income taxes

58,76871,554

Profit231,194

62,886

Total non-operating expenses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

7,305

983

223,888

61,902

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)
Profit(Thousands of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

231,194

62,886

Valuation difference on available-for-sale securities

1,928

18,473Foreign currency translation adjustment

67,699

11,200Remeasurements of defined benefit plans, net of tax(2,974)(3,121)

Total other comprehensive income

66,65326,551

297,847

89,437288,131

87,309

9,716

2,128

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/24(3) Quarterly Consolidated Statement of Cash FlowsFirst three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)(Thousands of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

Profit before income taxes

289,963

134,440

Depreciation

26,90632,119Amortization of software

6,044

6,183

Amortization of goodwill

5,713

5,935

Amortization of customer-related assets

4,620

4,799

(751,675)(708,385)

4,933(12,455)

Cash flows from operating activities

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses

(734)

(635)

(8,057)(12,402)

172

72

Decrease (increase) in trade receivables and contract assets

1,399,913

1,497,910

Increase (decrease) in contract liabilities

1,104,121

1,078,813

Decrease (increase) in inventories(128,579)(127,045)

Increase (decrease) in trade payables(326,413)(417,950)

Other, net

981,150

1,295,333

Subtotal

2,608,080

2,776,733

10,024

12,129

(174)

(73)

Income taxes paid

(517,984)(469,659)

Net cash provided by (used in) operating activities

2,099,947

2,319,130

Payments into time deposits-(338,348)

Proceeds from withdrawal of time deposits-

327,401

Purchase of property, plant and equipment(18,291)(11,530)

Purchase of software(2,273)(8,763)Purchase of investment securities(44,009)(302)

Loan advances(673)(38,252)

Proceeds from collection of loans receivable

2,073

631

Proceeds from refund of guarantee deposits

1,383

-

Payments of guarantee deposits(713)(83,100)

Interest and dividends received
Interest paid

Cash flows from investing activities

Other, net(1,111)

14,686

Net cash provided by (used in) investing activities(63,615)(137,577)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(9,047)-

Repayments of lease liabilities(6,467)(5,531)

Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests

(195)

(157)

(248,274)(397,228)(1,680)(1,752)(265,665)(404,669)

37,925

3,287

Net increase (decrease) in cash and cash equivalents

1,808,591

1,780,171

Cash and cash equivalents at beginning of period

6,463,823

6,793,050

Cash and cash equivalents at end of period

8,272,414

8,573,221

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 First Quarter of FY3/24(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on June 26, 2018 terminated the
directors’ retirement benefit system and established a Board Benefit Trust (BBT) for the purpose of increasing motivation
for contributing to the medium to long-term growth of sales and earnings and an increase in corporate value. The BBT
plan clearly links the compensation of directors with the JAST stock price. Furthermore, directors share with shareholders
the benefits of a higher stock price as well as the risk of a lower stock price.
1) Overview
This is a stock compensation plan in which directors receive stock compensation through a BBT. The BBT acquires JAST
stock using cash contributions from JAST as the source of funds. Directors (excluding external directors; same afterward
unless indicated otherwise) receive stock compensation or a monetary amount equivalent to the market value of the stockin lieu of stock compensation in accordance with the rules on the stock compensation plan for directors. In principle, adirector becomes eligible for stock compensation only after the individual is no longer a JAST director.
2) JAST stock held by the BBT
The book value (excluding associated expenses) of JAST stock held by the BBT is shown as treasury shares in the net
assets section of the consolidated balance sheet. The BBT held 149,200 shares of JAST with a book value of 171,700
thousand yen as of the end of the previous fiscal year, and the BBT held 149,200 shares with a book value of 171,700
thousand yen as of the end of the first quarter of the current fiscal year.
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. The number of shares has been calculated as if
this stock split has taken place at the beginning of the fiscal year ended March 31, 2023.

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

Segment and Other Information
Segment information
I. First three months of FY3/23 (Apr. 1, 2022 – Jun. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

Globalbusiness

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

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

3,253,221

864,897

319,470

681,687

5,119,276-

5,119,276

19,620

67

-

6,173

25,860(25,860)-

Total

3,272,842

864,965

319,470

687,860

5,145,137(25,860)

5,119,276

Segment profit
512,139
132,186
10,519119,125
773,971(512,590)
261,380
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First three months of FY3/24 (Apr. 1, 2023 – Jun. 30, 2023)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

Globalbusiness

Total(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

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

3,457,736

960,279

415,418

806,776

5,640,211-

5,640,211

27,997407-

18,511

46,917(46,917)-

3,485,734

960,687

415,418

825,288

5,687,128(46,917)5,640,211

Segment profit
482,334
147,286
15,987104,134
749,743(627,725)
122,018
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.

Business Combinations
Not applicable.

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

10