May 13, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
[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 Planning & Administration
Tel: +81-6-4560-1000
Division
Scheduled date of Annual General Meeting of Shareholders:June 23, 2022
Scheduled date of payment of dividend:
June 9, 2022
Scheduled date of filing of Annual Security Report:
June 24, 2022
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts)
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on May 13, 2022 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Ordinary income

Million yen%
Million yen%
Million yen
Fiscal year ended Mar. 31, 2022
21,3992,000
2,052
Fiscal year ended Mar. 31, 2021
18,789
4.3
1,216
25.3
1,310
Note: Comprehensive income (million yen) Fiscal year ended Mar. 31, 2022:
1,342 (-%)
Fiscal year ended Mar. 31, 2021:
749 (-%)%
28.3

Profit attributable toowners of parent
Million yen
%
1,330
578
-

Net income per
Diluted net
Ordinary income Operating income
Return on equity
share
income per shareon total assets
to net sales
Yen
Yen
%
%
%
Fiscal year ended Mar. 31, 2022
224.65
16.7
14.5
9.3
Fiscal year ended Mar. 31, 2021
107.90
10.1
6.5
107.95
8.9
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: Note: Beginning with the fiscal year ended 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 fiscal year ended March
31, 2022 incorporate this accounting standard and comparisons with the previous 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 Mar. 31, 2022
15,5399,194
58.9
1,493.72
As of Mar. 31, 2021
12,8616,850
53.0
1,265.96
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2022:
9,159
As of Mar. 31, 2021:
6,813
Note: Beginning with the fiscal year ended March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29, March 31, 2020). All figures as of March 31, 2022 incorporate this accounting standard.

(3) Consolidated cash flows
Cash flows fromoperating activities
Million yen
1,162
2,131

Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

Cash flows from
Cash flows from
Cash and cash equivalents
investing activities
financing activities
at end of period
Million yen
Million yen
Million yen
(80)
486
6,463
87
(1,247)4,853

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

Total

Total
dividends

Dividend on
equity(consolidated)
%
%
25.9
2.3
17.8
2.9

Payout ratio(consolidated)

Yen
Yen
Yen
Yen
Yen Million yen
Fiscal year ended Mar. 31, 2021
0.00
28.00
28.00
152
Fiscal year ended Mar. 31, 2022
0.00
40.00
40.00
248
Fiscal year ending Mar. 31, 2023
0.00
50.00
50.00
22.4
(forecasts)
Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2022: Ordinary dividend: 40.00 yen

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Full year

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

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

22,400

4.7

2,120

6.0

2,160

5.2

1,370

3.0

223.41

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: -Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:
Please refer to “Notes to Consolidated Financial Statements” for further information

None(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2022:

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 Mar. 31, 2022:

76,966 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2022:

5,922,871 sharesFiscal year ended Mar. 31, 2021:

5,362,310 shares

Note: The Company’s stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (74,600
shares as of Mar. 31, 2022 and 47,800 shares as of Mar. 31, 2021), and is deducted from the number of shares that isused to calculate the average number of shares outstanding during the period.

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Non-consolidated results of operations
Operating income
Million yen
%
1,620
61.7
1,001
(1.1)

(Percentages represent year-on-year changes)
Ordinary income
ProfitMillion yen% Million yen
%
1,751
58.3
999 149.1
1,106
(1.3)
401
-

Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

Net sales
Million yen%
17,082
12.4
15,203
5.4

Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

Net income per share Diluted net income per share
Yen
Yen
168.7874.83
74.79(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Mar. 31, 2022
13,9748,805
As of Mar. 31, 2021
11,785
6,897
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2022:
8,805

Equity ratio
%
63.0
58.5
As of Mar. 31, 2021:

Net assets per share
Yen
1,435.85
1,280.62
6,892

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

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

Contents of Attachments

1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Outlook

3

2. Basic Approach to the Selection of Accounting Standards

4

3. Consolidated Financial Statements and Notes

5(1) Consolidated Balance Sheet

5(2) Consolidated Statements of Income and Comprehensive Income

7

Consolidated Statement of Income

7

Consolidated Statement of Comprehensive Income

8(3) Consolidated Statement of Changes in Equity

9(4) Consolidated Statement of Cash Flows

11(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Changes in Accounting Policies

13

Additional Information

14

Segment and Other Information

14

Per-share Information

17

Subsequent Events

17

1

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

1. Overview of Results of Operations(1) Results of Operations
Although restrictions on economic activity decreased due to progress with COVID -19 vaccinations during the
fiscal year that ended in March 2022, the outlook for the Japanese economy remained uncertain because ofworries about another wave of infections, the Ukraine crisis and other reasons.
In the IT industry in Japan, according to the latest statistics in the “Survey of Selected Service Industries” by the
Ministry of Economy, Trade and Industry (the final February 2022 figures), net sales continued to climb, rising
3.5% year on year in fiscal 2021 compared with 0.4% annual growth in fiscal 2020. Despite this growth, theoutlook for the IT industry is extremely uncertain because of the pandemic and other reasons.
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) in the current fiscal year were 21,399 million yen (up 13.9%
year on year). Operating income was 2,000 million yen (up 64.5% year on year), ordinary income was 2,052
million yen (up 56.6% year on year), and profit attributable to owners of parent was 1,330 million yen (up129.9% year on year) due to booking of impairment losses of 87 million yen. Business segment performance was
as follows.
(Software business)
The number of orders for large and prime new customers was larger than one year ea rlier and the volume oforders from current customers remained high. In addition, there were strong sales of BankNeo, a data integration
package for financial institutions, growth of business in the ASEAN region, primarily Malaysia, and a decrease indevelopment expenses due to the end of some unprofitable projects. Due to this performance, there was a big
improvement in the profitability of this business. As a result, net sales in this business totaled 14,375 million yen(up 13.3% year on year) and the operating income was 585 million yen (up 263.7% year on year).
(GAKUEN business)
There was firm demand at current customers for replacing the current series of university program products with
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 were increases in orders for end user computing(EUC: outsourced development of individual related systems) and sales of IT equipment in association with theuse of these two new series. The result was the maintenance of the high profitability of this business, which rosesignificantly in the previous fiscal year. In previous fiscal years, sales for support services for the use of new
software 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 3,832 million yen (up 19.2% year on year) and the operating income was
1,060 million yen (up 23.9% 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 1,384 million
yen (down 5.5% year on year) and operating income was 106 million yen (down 11.6% year on year).
(Medical big data business)
Sales of automated inspection services for health insurance claims started to recover 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, support services for health insurance organizations and other highly
profitable businesses. These positive factors increased profitability of this business. As a result, net sales in thisbusiness totaled 1,806 million yen (up 27.2% year on year) and operating income was 245 million yen (up2Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22

170.0% year on year).
(2) Financial Position
The balance of current assets at the end of the current fiscal year was 12,389 million yen, up 27.8% over the endof the previous fiscal year. This was mainly due to an increase in the collection of accounts receivable -trade
linked to performance, and an increase in cash and deposits resulting from the issuance of new shares through theexercise of share acquisition rights and the disposal of treasury shares. Non -current assets were 3,150 million yen(down 0.5% year on year).
The balance of current liabilities at the end of the current fiscal year was 4,621 million yen, up 5.3% over the endof the previous fiscal year. This was mainly due to increases in accounts payable -trade and provision for bonuses,
and a decrease in short-term borrowings. The balance of non-current liabilities was 1,724 million yen at the endof the current fiscal year, up 6.2% over the end of the previous year.
The balance of total net assets was 9,194 million yen at the end of the current fiscal year, up 34.2% over the endof the previous fiscal year.
(3) Cash Flows
Cash and cash equivalents increased 1,610 million yen from 4,853 million yen at the beginning of the current
fiscal year to 6,463 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 1,162 million yen, compared with 2,131 million yen provided in
the previous fiscal year. This difference was mainly due to a decrease in proceeds from the collection of tradereceivables, an increase in income taxes paid, an increase in trade payables and a decrease in inventories.
Net cash used in investing activities totaled 80 million yen, compared with 87 million yen provided in theprevious fiscal year. This difference was mainly due to a decrease in proceeds from redemption of investment
securities.
Net cash provided by financing activities totaled 486 million yen, compared with 1,247 million yen used in theprevious fiscal year. This difference was mainly due to a decrease in short-term borrowings and increases inproceeds from issuance of shares and proceeds from disposal of treasury shares.
Reference: Cash flow indicators
FY3/18

FY3/19FY3/20FY3/21

FY3/22Equity ratio (%)

50.4

46.8

47.7

53.0

58.9

Equity ratio based on market value (%)

56.4

55.5

42.1

64.2

101.9

Interest-bearing debt to cash flow ratio (years)

0.4

1.2

3.6

0.2

0.0

Interest coverage ratio (times)
431.8
478.5
94.1
615.0
1,009.9
Note:
1. The above figures are calculated as follows.
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments* Market capitalization is calculated by multiplying the closing share price at the end of the period by the numberof shares outstanding at the end of the period, excluding treasury shares.
* Interest-bearing debt is calculated using total loans-payable on the consolidated balance sheet.
* Interest payments use the amount of interest expenses paid stated on the consolidated statement of cash flows.

(4) Outlook
Although there are increasing expectations for an economic recovery in Japan backed by govern ment measures tosupport the economy, the business climate for the JAST Group is likely to remain challenging. The main reasons
are the high prices and limited supplies of raw materials caused by the Ukraine crisis and uncertainty about theoutlook for the COVID-19 pandemic. In the IT industry, where the business climate is extremely volatile, JAST

3

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

understands that it will be difficult to achieve growth if it remains overly dependent on outsourced development
projects, the IT industry’s mainstay source of earnings to date.
Consequently, to define the medium to long-term basic policies for the management of the Group, we establish a
new three-year medium-term plan every year. Each new plan starts with the fiscal year in which the plan wasestablished. The plan includes the type of organization we want to become, our brand image, our business fields,
the size of our operations and other goals. In this fiscal year, we will continue to take many actions in order toaccomplish the goals of the current medium-term plan.
The JAST Group has established “produce results by using rapid and bold initiatives and thoughtful actions” as
its slogan for the fiscal year ending in March 2023. The goal is the use of the “co -creation DX” to expand tobusiness domains with substantial added value while using the outsourced development business model as theprimary base for earnings growth. In the GAKUEN, medical big data and other businesses using our own brands,
we will focus on making all our brands stronger and increasing our market share as well as on R&D for new
technologies and products and on starting new businesses in order to continue the growth of these businesses.
Based on this outlook, we expect increases in sales and earnings in the fiscal year ending March 31, 202 3. We
forecast net sales of 22,400 million yen (up 4.7% year on year), operating income of 2,120 million yen (up 6.0%
year on year), ordinary income of 2,160 million yen (up 5.2% year on year), and profit attributable to owners ofparent of 1,370 million yen (up 3.0% year on year).
2. Basic Approach to the Selection of Accounting Standards
The Group will continue to prepare consolidated financial statements using generally accepted accounting
principles in Japan for the time being to permit comparisons with prior years and with the financial data of othercompanies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS)
by taking into account associated factors in Japan and other countries.

4

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

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Thousands of yen)
FY3/22(As of Mar. 31, 2022)

FY3/21(As of Mar. 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract
assets
Notes and accounts receivable-trade

4,854,727

6,464,852-

5,533,330

3,953,965-

Merchandise and finished goods

185,543

147,538

Work in process

527,715

99,301

Raw materials and supplies

2,544

5,761

Other

184,859

144,293

Allowance for doubtful accounts(13,034)(5,875)

9,696,321

12,389,203

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

829,063

842,406

Accumulated depreciation(533,263)(548,763)

Buildings and structures, net

295,799

293,643

Land

142,361

142,361

Other

518,695

565,150

Accumulated depreciation(414,255)(454,587)

Other, net

104,440

110,562542,601

546,567

Goodwill

175,722

102,785

Customer-related assets

Total property, plant and equipment
Intangible assets

106,056

83,113

Trademark right

7,602

-

Technology assets

13,496-

Software

68,32980,909

Other

7,626

7,626

378,834

274,435

Investment securities

632,126

542,531Retirement benefit asset

666,814705,144

Deferred tax assets

416,291

536,929

Guarantee deposits

439,769

457,167

Other

104,01089,934

Total intangible assets
Investments and other assets

Allowance for doubtful accounts(15,208)(1,925)

Total investments and other assets

2,243,803

2,329,781

3,165,239

3,150,785

12,861,561

15,539,989

Total non-current assets
Total assets

5Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22(Thousands of yen)
FY3/22(As of Mar. 31, 2022)

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

1,380,056

407,800

8,518

2,800

-

Income taxes payable

473,761

563,468

Advances received

605,148-

Contract liabilities-

430,851

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

885,138

1,194,536

62,31977,53012,79752,960

Other

916,547

913,152

4,388,151

4,621,074

84,228120,728

4,239

6,646

1,017,504

1,058,791

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

34,89024,655

Other482,171

513,608

1,623,034

1,724,430

6,011,185

6,345,505

1,076,669

1,535,409

Capital surplus

1,128,115

1,703,991

Retained earnings

4,605,874

5,865,484

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

Total shareholders’ equity

6,592,143

8,929,621

Valuation difference on available-for-sale securities

186,775

121,768

Foreign currency translation adjustment(81,346)(2,240)Remeasurements of defined benefit plans

115,566

110,706

Total accumulated other comprehensive income

220,996

230,234

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

6

31,70534,6286,850,375

9,194,483

12,861,561

15,539,989

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Net sales

18,789,152

21,399,553

Cost of sales

14,169,048

15,711,508

Gross profit

4,620,104

5,688,045

Selling, general and administrative expenses

3,403,779

3,687,543

Operating income

1,216,324

2,000,501

Interest income

24,242

12,020

Dividend income

6,919

6,391

Rental income

2,603

2,483

Commission income

1,451

1,971

Foreign exchange gains

12,251

14,225

Subsidy income

36,874

14,937

Non-operating income

Other

19,143

9,268

Total non-operating income

103,485

61,298

3,449

1,199

929

1,899

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

134

-

4,545

-

-

5,773

265

415

9,323

9,287

1,310,486

2,052,512

315,925

87,398Extraordinary losses
Impairment losses
Loss on valuation of investment securities

29,535-

Total extraordinary losses

345,461

87,398

Profit before income taxes

965,025

1,965,114

Income taxes-current

481,462

773,626

Income taxes-deferred(99,559)(140,936)

Total income taxes

381,903632,689

Profit583,122

1,332,424

4,242

1,866

578,879

1,330,558

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

7

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

Consolidated Statement of Comprehensive Income
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

583,122

1,332,424

73,379(65,007)

Foreign currency translation adjustment(51,831)

79,646

Remeasurements of defined benefit plans, net of tax

144,545(4,860)Total other comprehensive income

166,094

9,779

749,216

1,342,203

746,171

1,339,796

3,045

2,407

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

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

8

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22(3) Consolidated Statement of Changes in Equity
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

1,113,912

4,178,503(233,240)

6,135,844-

1,076,669

1,113,912

4,178,503(233,240)

6,135,844

Changes during period
Issuance of new shares-

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares
Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(151,509)(151,509)

578,879

578,879

14,203(62)(62)

14,78728,991--

14,203427,370

14,724456,298

1,076,669

1,128,115

4,605,874(218,515)

6,592,143

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasurements
accumulateddifference on
currencyof defined benefit
otheravailable-for- translationplanscomprehensive
sale securities adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

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

53,704

Shareacquisitionrights

Noncontrollinginterests

Total net
assets-

28,6686,218,217-

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

53,704-

28,6686,218,217

Changes during period
Issuance of new shares-

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares(151,509)

Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period

28,991

Balance at end of period

578,879(62)-

73,379(50,633)

144,545

167,291

5,530

3,037

175,859

73,379(50,633)

144,545

167,291

5,530

3,037

632,158

186,775(81,346)

115,566

220,996

5,530

31,7056,850,375

9

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

FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity1,076,669

1,128,115

4,605,874(218,515)

6,592,143

81,0801,076,669

1,128,115

458,739458,739

4,686,954

81,080(218,515)

6,673,223

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

917,479(152,028)(152,028)

1,330,558

1,330,558

116,125(87,750)(87,750)

131,002247,127

1,011

1,011

458,739575,876

1,178,529

43,251

2,256,397

1,535,409

1,703,991

5,865,484(175,264)

8,929,621

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasurements
accumulateddifference on
currencyof defined benefit
otheravailable-for- translationplanscomprehensive
sale securities adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

186,775(81,346)

115,566

220,996

Share
acquisitionrights

Noncontrollinginterests

Total net
assets

5,530

31,7056,850,375
81,080186,775(81,346)

115,566

220,996

5,530

31,705

6,931,456

Changes during period
Issuance of new shares

917,479

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury shares
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ equity
Total changes during period(152,028)

Balance at end of period

1,330,558(87,750)
247,127
1,011(65,007)

79,105(4,860)9,238(5,530)

2,923

6,630

(65,007)

79,105(4,860)9,238(5,530)2,923

2,263,027

121,768(2,240)110,706

230,234-

34,6289,194,483

10

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22(4) Consolidated Statement of Cash Flows
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Profit before income taxes

965,025

1,965,114

Depreciation

134,863

114,387

Amortization of software

18,46023,215

Amortization of goodwill

46,986

31,361

Amortization of customer-related assets

22,891

20,279Amortization of trademark

2,338

976

Amortization of technology assets

4,151

1,733

315,925

87,398

Increase (decrease) in provision for bonuses

110,440

308,751

Decrease (increase) in retirement benefit asset(200,870)(38,329)

Cash flows from operating activities

Impairment losses

Increase (decrease) in retirement benefit liability

26,81041,363

Interest and dividend income(31,161)(18,411)

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

3,449

1,199

532,377--(1,316,502)(216,632)--

35,117

Decrease (increase) in inventories

55,563309,800

Increase (decrease) in trade payables

33,402

339,136

Other, net

599,636(72,578)

Subtotal

2,423,657

1,834,014

31,80638,519

Increase (decrease) in contract liabilities

Interest and dividends received
Interest paid

(3,465)(1,151)

Income taxes paid

(320,531)(708,462)

Net cash provided by (used in) operating activities

2,131,466

1,162,919-

690(80,639)(51,486)-

6,483

Purchase of software(22,453)(32,391)

Purchase of investment securities(21,120)(1,532)

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

Proceeds from sale of investment securities
Loan advances
Collection of loans receivable

9,909

22,601-(51,812)-45,405

Proceeds from redemption of investment securities

200,000-

Payments of guarantee deposits(1,389)(19,111)

Proceeds from refund of guarantee deposits

4,458

1,194

Other, net(1,735)(952)

Net cash provided by (used in) investing activities

87,030(80,912)11

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

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(1,092,200)(400,000)

Repayments of lease obligations(29,593)(28,185)

Repayments of long-term borrowings(8,400)(2,800)-914,768(151,509)(152,028)(62)(87,750)

Proceeds from disposal of treasury shares

28,842242,854

Other, net

5,680

-

(1,247,242)

486,858

Proceeds from issuance of shares
Dividends paid
Purchase of treasury shares

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(25,813)

41,262

Net increase (decrease) in cash and cash equivalents

945,440

1,610,127

Cash and cash equivalents at beginning of period

3,908,254

4,853,695

Cash and cash equivalents at end of period

4,853,695

6,463,823

12

Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/22(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
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 current fiscal year. Based on this standard, revenue expected to be received in
exchange for the provision of goods and services is recognized when the control of the goods and services istransferred to customers. As a result, the major change involves some contracts where sales were recognizedwhen 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 spec ified period, the amount of progressof fulfilling the obligation is estimated, except when the period is extremely short, and revenue based on the
progress is recognized for that period. In addition, the total payment received from customers for a product orservice was recognized as revenue in prior years. Now, for transactions where the Group functions as an agent forthe provision of a product or service to a customer, the amount paid to the supplier of the product or service isdeducted from the payment received from a customer and the resulting net amount is recognized a s 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 current fiscal year, is added to or subtracted from retaine dearnings at the beginning of the current fiscal year. The new standard is then applied beginning with this amountof retained earnings. In addition, JAST has applied the method prescribed in Paragraph 86, Article 1 of the
Accounting Standard for Revenue Recognition, and accounted for contract changes made prior to the beginningof the current fiscal year based on the contract terms after reflecting all contra ct changes, and added or subtracted
the cumulative effect of such changes to retained earnings at the beginning of the current fiscal year.
As a result, the application of the new standard resulted in reductions of 260,039 thousand yen in net sales and
344,003 thousand yen in cost of sales, and an increase of 83,963 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. The effect of these changes on per-share information is shownin the corresponding section.
“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 current fiscal year. In accordance with the transitional measures prescribed in Paragraph 89-2 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 the transitional
measures prescribed in Paragraph 89-3 of the Accounting Standard for Revenue Recognition, JAST has notpresented the Revenue Recognition, Note, for the previous fiscal year.
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 current fiscal year.
JAST has applied the new accounting policies set forth by the Accounting Standard fo r 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 on the consolidated financial statements.

13

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

Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Sh areholders, 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 compe nsation only after theindividual is no longer a JAST director.
2) JAST stock held by the BBT
The book value (excluding associated expenses) of JAST stock held by the BBT is shown as treasury shares in the
net assets section of the consolidated balance sheet. The BBT held 47,800 shares of JAST with a book value of
87,713 thousand yen as of the end of the previous fiscal year, and the BBT held 74,600 shares with a book valueof 171,700 thousand yen as of the end of the current fiscal year.
Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are JAST and subsidiaries’ constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of
resources and evaluating performance.
The Group has four reportable business segments: software business, GAKUEN business, system sales business and medical
big data business each of which conducts its business in line with the comprehensive strategy it has devised for products andservices in both domestic and overseas markets.
The software business handles the contracted software development. The GAKUEN business is engaged in development, sale,and provision of related services of operational reform packages for schools. The system sales business conducts IT
equipment sales, IT/telecom infrastructure construction. The medical big data business provides a full line of services
including automated inspection services for health insurance claims, data analysis and not ification of the cost of medical care.
2. Calculation method for net sales, profit or loss, assets, liabilities, and other items for each reportable segment
The accounting method used for reportable business segments is generally the same as the methods l isted in “Significant
Accounting Policies in the Preparation of Consolidated Financial Statements.”
Profits for reportable business segments are operating income figures.
Inter-segment sales and transfers are based on market prices.
As described in Changes in Accounting Policies, JAST has applied the Accounting Standard for Revenue Recognition fromthe beginning of FY3/22 and changed the accounting method for revenue recognition. Accord ingly, the method for
calculating segment profit has been changed as well.
The effect of this change was to decrease net sales by 208,604 thousand yen and to decrease segment profit by 20,703
thousand yen for FY3/22 in the software business. Net sales and segment profit increased 150,841 thousand yen and 117,117
thousand yen, respectively, in the GAKUEN business. Furthermore, net sales and segment profit decreased 198,642 thousand
yen and 14,390 thousand yen, respectively, in the system sales business, and decreased 3,634 thousand yen and increased
1,940 thousand yen, respectively, in the medical big data business.

14

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

3. Information related to net sales, profit or loss, assets, liabilities, and other items for each reportable segment
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)

Adjustment(Note 1)
(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

18,789,152-

18,789,152

13

72,228(72,228)-

1,480,387 1,419,469

18,861,380(72,228)

18,789,152

1,228,929(12,605)

1,216,324

11,009,718

1,851,843

12,861,561

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

12,687,772

3,216,146

1,465,779 1,419,455

38,75918,846

12,726,531

3,234,992

160,996856,302120,798

90,8316,810,264

2,185,172

1,137,765

876,515

Total

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

14,608Other items
Depreciation
139,286
24,001
2,264
17,151
182,705
182,705
Increase in property, plantand equipment and intangible
93,378
22,102
1,107
16,095
132,685
132,685
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)Amounts
shown onAdjustment
consolidated(Note 1)
financial(Note 2)statements(Note 3)

Softwarebusiness

GAKUENbusiness

Systemsales
business

Medicalbig data
business

Total

14,375,818

3,832,613

1,384,900

1,806,220

21,399,553-

21,399,553

69,399

6,339

5,323

-

81,061(81,061)-

14,445,217

3,838,952

1,390,223

1,806,220

21,480,614(81,061)

21,399,553

585,498

1,060,939

106,826

245,209

1,998,473

2,028

2,000,501

8,367,843

2,877,693

1,247,998

1,257,172

13,750,709

1,789,279

15,539,989

Net sales
1. External sales
2. Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
119,937
22,888
1,878
15,889160,593
160,593
Increase in property, plantand equipment and intangible
78,532
20,252588
12,690112,063
112,063
assets
Notes:
1. Segment profit (loss) in the above adjustment represents eliminations for inter-segment transactions.
2. Segment assets in the above adjustment consist mainly of corporate assets that cannot be attributed to any of thereportable segments.
3. Segment profit (loss) is adjusted with operating income shown on the consolidated statement of income.

15

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

Related information
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Net sales
Geographical information concerning sales to external customers in Japan is not presented since sales to externalcustomers exceeded 90% of net sales shown on the consolidated statement of income.
(2) Property, plant and equipment
Japan

Overseas479,692 thousand yen

Total

66,875 thousand yen

546,567 thousand yen

3. Information by major client
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Company name
NTT COMWARE CORPORATIONNet sales

Business segment

1,716,652 thousand yen

Software businessNet sales

Business segment

1,520,224 thousand yen

Software business

FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Company nameTIS Inc.

Information related to impairment losses of non-current assets for each reportable segment
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Softwarebusiness

GAKUENbusiness

System sales
business

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

Impairment losses
315,925
315,925
Note: In the software business, there were impairment losses of 1 98,521 thousand yen for goodwill, 45,255 thousand yen forcustomer-related assets, 25,997 thousand yen for trademark rights and 46,152 thousand yen for technology assets.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Softwarebusiness

GAKUENbusiness

System sales
business

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

Impairment losses
87,39887,398
Note: In the software business, there were impairment losses of 55,939 thousand yen for goodwill, 11,129 thousand yen forcustomer-related assets, 7,325 thousand yen for trademark rights and 13,004 thousand yen for technology assets.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Softwarebusiness

GAKUENbusiness

System sales
business

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

Amortization for the period

46,986----

46,986

Balance at end of period

175,722

-

-

-

-

175,722

Note: In the software business, there was an impairment loss of 198,521 thousand yen for goodwill.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Softwarebusiness

GAKUENbusiness

System sales
business

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

Amortization for the period

31,361----

31,361

Balance at end of period

102,785

-

-

-

-

102,785

Note: In the software business, there was an impairment loss of 55,939 thousand yen for goodwill.
Information related to gain on bargain purchase for each reportab le segment
Not applicable.

16

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

Per-share Information
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Net assets per share

1,265.96

1,493.72

Net income per share

107.95224.65

Diluted net income per share

107.90-Notes: 1. Diluted net income per share for FY3/22 is not presented since the Company has no outstanding dilutive securities.
2. As described in the Changes in Accounting Policies, JAST has applied the Accounting Standard for Revenue
Recognition. As a result, net income per share for FY3/22 increased by 14.18 yen.
3. The basis of calculation is as follows.
(Thousands of yen)
FY3/21
FY3/22(As of Mar. 31, 2021)(As of Mar. 31, 2022)
Net assets per share
Total net assets on balance sheet

6,850,375

9,194,483

Deduction on total net assets

37,236

34,628(Non-controlling interests)(31,705)(34,628)

6,813,139

9,159,855

5,381,807 shares

6,132,264 shares

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

578,879

1,330,558--

578,879

1,330,558

5,362,310 shares

5,922,871 shares--

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

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

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

shares(-)

Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effectNote: JAST has established a new Board Benefit Trust (BBT). The Company’s stock remaining in the BBT (47,800 shares asof March 31, 2021 and 74,600 as of March 31, 2022) is included in treasury shares in shareholders’ equity and dedu cted
from the number of shares outstanding at the end of the period that is used to calculate net assets per share. Moreover,the BBT shares (47,800 shares in FY3/21 and 55,100 shares in FY3/22) are included in treasury shares deducted fromthe number of shares used to calculate the average number of shares outstanding during the period that is used to
calculate net income per share.

Subsequent Events
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, includi ng 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.

17