February 10, 2022

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2022
(Nine Months Ended December 31, 2021)[Japanese GAAP]
Listing: Tokyo Stock Exchange, First Section
Company name: Japan System Techniques Co., Ltd.
4323
URL: https://www.jast.jp
Stock code:
Representative:
Takeaki Hirabayashi, President and CEO
Hiroyuki Norimoto, General Manager of General Affairs Department
Contact:
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
February 14, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on February 10, 2022 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, 2021
(April 1, 2021 – December 31, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Profit attributable toowners of parent% Million yen%
914(22.2)(246)-

Operating income

Ordinary income

Million yen%
Million yen%
Million yen
Nine months ended Dec. 31, 2021
14,9851,297
1,331
Nine months ended Dec. 31, 2020
12,142(3.0)
86 (39.2)
144
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2021:
901 (-%)
Nine months ended Dec. 31, 2020: (193) (-%)
Diluted net income per
Net income per share
share
Yen
Yen
Nine months ended Dec. 31, 2021
156.15
Nine months ended Dec. 31, 2020
(45.94)
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue
Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the ninemonths ended December 31, 2021 incorporate this accounting standard and comparisons with the first nine months of theprevious fiscal year are omitted.

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Dec. 31, 2021
13,7508,753
63.4
1,421.54
As of Mar. 31, 2021
12,8616,850
53.0
1,265.96
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2021:
8,717
As of Mar. 31, 2021:
6,813
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020). All figures as of December 31, 2021 incorporate this accounting
standard.

2. Dividends
1Q-endYen-

2Q-end
Yen
0.00
0.00

Fiscal year ended Mar. 31, 2021
Fiscal year ending Mar. 31, 2022
Fiscal year ending Mar. 31, 2022 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
28.00
40.00

Total
Yen
28.00
40.00

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

Operating income%

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

Ordinary income%

Million yen%

Yen

Full year
21,000 11.8
1,700
39.8
1,730
32.0
Note: Revisions to the most recently announced consolidated earnings forecasts: None%

Million yen

1,050

81.4

177.28

* 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, 2021:

6,209,230 shares

As of Mar. 31, 2021:

5,612,230 shares

As of Mar. 31, 2021:

230,423 shares

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

76,766 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2021:

5,854,313 shares

Nine months ended Dec. 31, 2020:

5,362,125 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 Third Quarter of FY3/22

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

2(2) Explanation of Financial Position

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6

Quarterly Consolidated Statement of Income
For the Nine-month Period

6

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

8(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Changes in Accounting Policies

10

Additional Information

11

Segment and Other Information

11

Business Combinations

121

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, consumer spending and corporate activities in Japan wereseverely restricted by extended states of emergency declared because of the pandemic and other measures toprevent the spread of infections. In addition, new ways of working and new life styles have emerged because of
the pandemic. Although there are expectations for the economy to improve as more people are vaccinat ed andother measures are taken to stop the pandemic, the outlook for the Japanese economy remains uncertain.
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 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. The latest figures for
November 2021 were up 7.6% year on year.
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) in the first nine months were 14,985 million yen (up 23.4% year
on year). Operating income was 1,297 million yen (vs. operating income of 86 million yen in the same period of
the previous fiscal year), ordinary income was 1,331 million yen (up 819.2% year on year), and profit attributableto owners of parent was 914 million yen (vs. loss attributable to owners of parent of 246 million yen in the same
period of the previous fiscal year).
Business segment performance was as follows.
(Software business)
The performance of this business benefited from the year-on-year increase in orders including large projects andstrong sales of BankNeo, a data integration package for financial institutions. A recovery in sales and earnings in
the ASEAN region also contributed to a big improvement in the profitability of the software business. Net s alesin the first nine months totaled 10,560 million yen (up 22.9% year on year) and the operating income was 545
million yen (vs. operating loss of 122 million yen in the same period of the previous fiscal year).
(GAKUEN business)
Sooner than expected demand at current customers for replacing the current series of university program productswith the new GAKUEN RX and GAKUEN UNIVERSAL PASSPORT RX series, which have high profit margins,
contributed to the performance of this business. In addition, there was faster than expected progress with sales ofthese two new series to new customers. An increase in the volume of end user computing (EUC: individualized
contracted development of related systems) orders associated with the use of these two new series also
contributed to higher profitability in this business. In previous fiscal years, sales for support services for the useof new software and other work in progress was recognized when the final approval of customers was received.
Due to the application of the Accounting Standard for Revenue Recognition beginning with the current fiscal year,
this revenue is recognized based on progress with fulfilling performance obligations involving individual projects.
As a result, net sales in this business totaled 2,462 million yen (up 45.6% year on year) and the operating income
was 602 million yen (up 343.5% year on year).
(System sales business)
Delays in the procurement of IT equipment due to the global semiconductor shortage caused sales of IT
equipment to universities, the main activity of this business, to decline. As a result, net sales totaled 825 million
yen (down 19.9% year on year) and operating income was 40 million yen (down 63.6% year on year).
(Medical big data business)
Sales of automated inspection services for health insurance claims started to recove r in the current fiscal year
following the downturn in one year earlier when the number of people using healthcare institutions decreased dueto the pandemic. There were also improvements in the performance of analysis services, services for the
notification of the cost of medical care, cloud services for managing welfare public assistance version of health2Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

insurance claims, support services for health insurance organizations and other highly profitable businesses.
These positive factors increased profitability of this business. In previous fiscal years, sales for a range ofservices and other work in progress was recognized when the final approval of customers was received. Due tothe application of the Accounting Standard for Revenue Recognition beginning with the current fiscal year, thisrevenue is recognized based on progress with fulfilling performance obligations involving individual projects. As
a result, net sales in this business totaled 1,137 million yen (up 37.4% year on year) and operating income was
107 million yen (vs. operating loss of 39 million yen in the same period of the previous fiscal year).
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the third quarter were 10,747 million yen, up 1,051 million yen from the end of theprevious fiscal year. This was mainly due to an increase in the collection of accounts receivable -trade linked toperformance, and an increase in cash and deposits resulting from the issuance of new shares through the exerciseof share acquisition rights and the disposal of treasury shares. Non-current assets were 3,002 million yen, down
162 million yen from the end of the previous fiscal year.
Current liabilities at the end of the third quarter were 3,314 million yen, down 1,073 million yen from the end of
the previous fiscal year. This was mainly due to a decrease in provision for bonuses and repayments of short-termborrowings. Non-current liabilities were 1,682 million yen, up 59 million yen from the end of the previous fiscal
year.
Net assets at the end of the third quarter were 8,753 million yen, up 1,903 million yen from the end of theprevious fiscal year. This increase was mainly due to exercise of share acquisition rights and an increase inretained earnings of 81 million yen at the beginning of the fiscal year due to the application of the AccountingStandard for Revenue Recognition.
2) Cash flows
Cash and cash equivalents increased 802 million yen from 4,853 million yen at the beginning of the current fiscal
year to 5,656 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 351 million yen, a decrease of 650 million yen from 1,001
million yen provided in the same period of the previous fiscal year. This decrease was mainly due to increase s ininventories and contract liabilities, and a decrease in proceeds from the collection of trade receivables.
Net cash used in investing activities totaled 88 million yen, a decrease of 192 million yen from 103 million yen
provided in the same period of the previous fiscal year. This was due to a decrease in proceeds from redemptionof investment securities.
Net cash provided by financing activities totaled 514 million yen, an increase of 1,368 million yen from 853
million yen used in the same period of the previous fiscal year. This was due to increases in proceeds fromissuance of shares and proceeds from disposal of treasury shares.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the January 26, 2022 forecasts for the fiscal year ending March 31, 2022: net sales of
21,000 million yen (up 11.8% year on year), operating income of 1,700 million yen (up 39.8% year on year),ordinary income of 1,730 million yen (up 32.0% year on year), and profit attributable to owners of parent of
1,050 million yen (up 81.4% year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Third quarter of FY3/22(As of Dec. 31, 2021)

FY3/21(As of Mar. 31, 2021)
AssetsCurrent assets
Cash and deposits

4,854,727

5,657,269

Notes and accounts receivable-trade
Notes and accounts receivable-trade, and contract
assetsMerchandise and finished goods

3,953,965--

4,361,956

185,543

248,820

527,715

198,042Work in process
Raw materials and supplies

2,544

2,970

Other

184,859

290,949

Allowance for doubtful accounts(13,034)(12,187)

9,696,321

10,747,821

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

829,063

823,839

Accumulated depreciation(533,263)(531,209)

Buildings and structures, net

295,799292,629Land

142,361

142,361

Other

518,695

557,512

Accumulated depreciation(414,255)(443,515)

Other, net

104,440

113,997542,601

548,988

Goodwill

175,722160,677

Customer-related assets

Total property, plant and equipment
Intangible assets

106,056

96,210Trademark right

7,602

7,309

Technology assets

13,496

12,975

Software

68,32977,682

Other

7,626

7,626

378,834

362,481

Investment securities

632,126

568,109

Retirement benefit asset

666,814

669,422

Deferred tax assets

416,291

325,727

Guarantee deposits

439,769

439,393

Other

104,01089,954

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(15,208)(1,348)

Total investments and other assets

2,243,803

2,091,259

3,165,239

3,002,729

12,861,561

13,750,551

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22(Thousands of yen)
Third quarter of FY3/22(As of Dec. 31, 2021)

FY3/21(As of Mar. 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings

1,021,837

881,223

407,800

25,5152,800-

Income taxes payable

473,761

121,049

Advances received

605,148-

Contract liabilities-

811,551

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on construction contracts

885,138

480,082

62,31923,167

12,79788,505

Other916,547

883,130

4,388,151

3,314,224

84,228114,280

4,239

6,042

1,017,504

1,032,249

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

34,89028,184

Other482,171

501,744

1,623,034

1,682,501

6,011,185

4,996,726

1,076,669

1,535,409

Capital surplus

1,128,115

1,703,991

Retained earnings

4,605,874

5,449,055

Treasury shares(218,515)(175,264)

Total shareholders’ equity

6,592,143

8,513,192

Valuation difference on available-for-sale securities

186,775

140,377

Foreign currency translation adjustment(81,346)(33,717)

Remeasurements of defined benefit plans

115,566

97,711

Total accumulated other comprehensive income

220,996

204,372

5,530-

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

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

31,70536,2596,850,375

8,753,824

12,861,561

13,750,551

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Thousands of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)

Net sales

12,142,877

14,985,989

Cost of sales

9,515,273

11,068,084

Gross profit

2,627,603

3,917,904

Selling, general and administrative expenses

2,541,555

2,620,693

86,0481,297,211

Interest income

14,357

9,349

Dividend income

6,867

6,391

Rental income

2,065

1,904

Operating income
Non-operating income

Foreign exchange gains

5,121

4,063

Subsidy income

15,833

11,116

Other

17,8909,441

Total non-operating income

62,13442,266

Non-operating expenses
Interest expenses
Share issuance costs

2,591

901

-

5,148

Rental expenses

133

-

Other

602

1,970

3,327

8,020

144,854

1,331,457

Impairment losses

313,252-

Loss on valuation of investment securities

29,535-

Total extraordinary losses

342,788-

Profit (loss) before income taxes

Total non-operating expenses
Ordinary income
Extraordinary losses(197,933)

1,331,457

Income taxes

40,185412,562

Profit (loss)(238,118)

918,894

Profit attributable to non-controlling interests

8,206

4,764

Profit (loss) attributable to owners of parent(246,325)

914,1306Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Thousands of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(238,118)

918,894

Valuation difference on available-for-sale securities

90,321(46,397)

Foreign currency translation adjustment(50,305)

46,903Remeasurements of defined benefit plans, net of tax

4,477(17,855)

Total other comprehensive income

44,492(17,349)(193,625)

901,545(199,876)

897,506

6,250

4,038

Profit (loss)
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 Third Quarter of FY3/22(3) Quarterly Consolidated Statement of Cash FlowsFirst nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Thousands of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)

Cash flows from operating activities
Profit (loss) before income taxes(197,933)

1,331,457

Depreciation

79,902

81,958

Impairment losses

313,252-

Amortization of software

12,533

17,603

Amortization of goodwill

37,78923,394

Amortization of customer-related assets

18,08814,733

Amortization of trademark

2,097

707

Amortization of technology assets

3,723

1,255

(365,735)(405,471)

Increase (decrease) in retirement benefit liability

10,392

15,819Decrease (increase) in retirement benefit asset(731)(2,607)(21,224)(15,741)

Increase (decrease) in provision for bonuses

Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in trade receivables and contract
assetsIncrease (decrease) in advances received

2,591

901

1,876,710--(151,182)

154,352--

416,870

Decrease (increase) in inventories(743,232)

111,652

Increase (decrease) in trade payables(177,395)(153,652)

Other, net

259,715(215,366)

Subtotal

1,264,898

1,072,335

21,86916,644

Increase (decrease) in contract liabilities

Interest and dividends received
Interest paid

(2,607)(808)

Income taxes paid

(282,384)(736,576)

Net cash provided by (used in) operating activities

1,001,774

351,5958

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Thousands of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(66,107)(41,577)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

-

6,283

Purchase of software(21,203)(29,971)

Purchase of investment securities(20,399)(1,229)9,909

22,601

Proceeds from sale of investment securities
Proceeds from redemption of investment securities

200,000-

Loan advances-(47,279)

Collection of loans receivable

-

3,066

Proceeds from refund of guarantee deposits

4,431

821

Payments of guarantee deposits(1,166)(933)

Proceeds from sale of membership-

690

Other, net(1,486)(712)

Net cash provided by (used in) investing activities

103,977(88,241)(692,266)(382,710)

Repayments of lease obligations(3,814)(20,438)

Repayments of long-term borrowings(5,600)(2,800)-914,768

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

Proceeds from issuance of shares
Purchase of treasury shares(62)(89,957)-

248,042Dividends paid

(151,509)(152,028)

Net cash provided by (used in) financing activities(853,252)

514,875

Proceeds from disposal of treasury shares

Effect of exchange rate change on cash and cash equivalents(31,689)

24,354

Net increase (decrease) in cash and cash equivalents

220,810

802,583

Cash and cash equivalents at beginning of period

3,908,254

4,853,695

Cash and cash equivalents at end of period

4,129,065

5,656,279

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
The following changes in equity resulted from the issuance of new shares and disposal of treasury shares due tothe exercise of the second series of warrants with an adjustable exercise price that were issued on March 22, 2021
and sold by using a third-party allotment in accordance with a resolution approved by the JAST Board of
Directors on March 5, 2021: Increases of 458,739 thousand yen in share capital, 458,739 thousand yen in capitalsurplus and 117,136 thousand yen in other capital surplus and a decrease of 43,251 thousand yen in treasury
shares. At the end of December 2021, share capital was 1,535,409 thousand yen, capital surplus was 1,703,991
thousand yen and treasury shares was 175,264 thousand yen.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
JAST started to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) at the beginning of the first quarter of the current fiscal year. Based on this standard, revenue expected tobe received in exchange for the provision of goods and services is recognized when the control of the goods andservices is transferred to customers. As a result, the major change involves some contracts where sales wererecognized when a final acceptance inspection was performed in accordance with the applicable inspection
standards. For contracts where JAST has fulfilled its obligation to the customer over a specified period, theamount of progress of fulfilling the obligation is estimated, except when the period is extremely short , andrevenue based on the progress is recognized for that period. In addition, the total payment received from
customers for a product or service was recognized as revenue in prior years. Now, for transactions where theGroup functions as an agent for the provision of a product or service to a customer, the amount paid to the
supplier of the product or service is deducted from the payment received from a customer and the resulting net
amount is recognized as revenue.
For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional
measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective application of
the new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or
subtracted from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard
is then applied beginning with this amount of retained earnings. In addition, JAST has applie d the method
prescribed in Paragraph 86, Article 1 of the Accounting Standard for Revenue Recognition, and accounted forcontract changes made prior to the beginning of the first quarter of the current fiscal year based on the contract
terms after reflecting all contract changes, and added or subtracted the cumulative effect of such changes toretained earnings at the beginning of the first quarter of the current fiscal year.
As a result, the application of the new standard resulted in reductions of 252,989 thousand yen in net sales and46,859 thousand yen in cost of sales, and an increase of 206,129 thousand yen each in operating income, ordinary
income and profit before income taxes. In addition, the new standard increased retained earnings at the beginningof the current fiscal year by 81,080 thousand yen.
“Notes and accounts receivable-trade” that was presented in the current assets section of the consolidated balance
sheet in the previous fiscal year is presented as “Notes and accounts receivable-trade, and contract assets,” and“Advances received” that was presented in the current liabilities section is presented as “Contract liabilities” fromthe first quarter of the current fiscal year. In accordance with the transitional measures prescribed in Paragraph89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been made to the prior year ’s
consolidated financial statements to conform to the new presentation. Furthermore, in accordance with thetransitional measures prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly Financial
Reporting (ASBJ Statement No. 12, March 31, 2020), JAST has not presented information on revenue fromcontracts with customers broken down for the first nine months of the previous fiscal year.

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

Application of the Accounting Standard for Fair Value Measurement
JAST has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019)and other standards from the beginning of the first quarter of the current fis cal year.
JAST has applied the new accounting policies set forth by the Accounting Standard for Fair Value Measurement
prospectively in accordance with the transitional measures in Paragraph 19 of the Accounting Standard for Fair
Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement
No. 10, July 4, 2019).
There is no effect of the application of these standards on the quarterly consolidated financial statements.
Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on June 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 74,600 shares with a book value of 171,700
thousand yen as of the end of the third quarter of the current fiscal year.
Segment and Other Information
Segment information
I. First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020)
1. Information related to net sales and profit or loss for each reportable segment(Thousands of yen)

Softwarebusiness

GAKUEN System sales
businessbusiness

Medicalbig data
business

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

8,593,054

1,690,835

1,031,248

827,738 12,142,877

42,568

7,942

998

Total

8,635,623

1,698,778

1,032,247

Total

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

Net sales-

12,142,877

51,509(51,509)-827,738 12,194,387(51,509)

12,142,877-

Segment profit (loss)(122,393)
135,865
111,519(39,924)85,067980
86,048Notes: 1. Segment profit (loss) in the above adjustment represents eliminations of inter-segment transactions.
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
Significant impairment losses related to non-current assets
In the software business, there was an impairment loss for goodwill, customer-related assets, trademark rights andtechnology assets. The amount of this loss in the first nine months of FY3/21 was 313,252 thousand yen.

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Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/22

Significant change in goodwill
In the software business, there was an impairment loss for goodwill.
The amount of this loss in the first nine months of FY3/21 was 196,841 thousand yen.
II. First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

GAKUEN System sales Medical big
businessbusiness data business(Thousands of yen)

Total

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

Net sales
1. External sales
10,560,384
2. Inter-segment sales
48,717and transfers
Total

10,609,101

2,462,259

825,746

2,691

3,393

2,464,950

829,139

1,137,600 14,985,989-

14,985,989

54,801(54,801)-

1,137,600 15,040,791(54,801)

14,985,989-

Segment profit
545,240
602,555
40,587
107,307 1,295,690
1,521
1,297,211
Notes: 1. Segment profit in the above adjustment represents eliminations for inter-segment transactions.
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.
3. Information related to revisions for reportable segments
As described in Changes in Accounting Policies, JAST has applied the Accounting Standard for Revenue Recognition fromthe beginning of the first quarter of FY3/22 and changed the accounting method for revenue recognition. Accordingly, themethod for calculating segment profit has been changed as well.
The effect of this change was to decrease net sales by 30,054 thousand yen and to increase segment profit by 6,026 thousand
yen for the first nine months of FY3/22 in the software business. Net sales and segment profit in creased 263,977 thousand
yen and 123,857 thousand yen, respectively, in the GAKUEN business. Furthermore, net sales and segment profit decreased
166,078 thousand yen and 14,390 thousand yen, respectively, in the system sales business, and increased 185,145 thousand
yen and 90,636 thousand yen, respectively, in the medical big data business.

Business Combinations
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.

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