August 4, 2014

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2015
(Three Months Ended June 30, 2014)[Japanese GAAP]
Company name: Japan System Techniques Co., Ltd.
Listing: Tokyo Stock Exchange, Second Section
Stock code:
4323
URL: http://www.jast.jp
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Director and CFO
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
August 5, 2014
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 August 4, 2014 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, 2014 (April 1, 2014 – June 30, 2014)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen

Three months ended Jun. 30, 2014
Three months ended Jun. 30, 2013
Note: Comprehensive income (million yen)%

Million yen

%

2,678
5.2
(11)
2,544
14.1
(105)
Three months ended Jun. 30, 2014:
Three months ended Jun. 30, 2013:

Million yen%

Million yen

%

18
(95)
(16) (n.a.)(60) (n.a.)

-

(4)
(75)

-

Net income per share

Diluted net income per
share

Yen

Yen

(0.81)(15.90)-Three months ended Jun. 30, 2014
Three months ended Jun. 30, 2013
(2) Consolidated financial position

Total assets

Net assets

Million yen

As of Jun. 30, 2014
As of Mar. 31, 2014
Reference: Shareholders’ equity (million yen)

Equity ratio

Million yen

8,397
8,817
As of Jun. 30, 2014:

Net assets per share
%

5,102
5,066
5,039

Yen

60.0
56.6
As of Mar. 31, 2014:

960.28954.534,992

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2014
Fiscal year ending Mar. 31, 2015
Fiscal year ending Mar. 31, 2015 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

0.00

-

25.00

25.00

0.00

-

25.00

25.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 – March 31, 2015)(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Net income per share%

Million yen%

Yen

First half
5,334
6.5
1
16 (24.4)
Full year
11,900
9.9
525
22.8
555
17.1
Note: Revisions to the most recently announced consolidated earnings forecasts: None

Million yen%

Million yen%

Million yen

1
290

4.0

0.19
55.26

* 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 stock)1) Number of shares outstanding at the end of period (including treasury shares)
As of Jun. 30, 2014:

5,612,230 shares

As of Mar. 31, 2014:

5,594,230 shares

As of Mar. 31, 2014:

364,210 shares

2) Number of treasury shares at the end of period
As of Jun. 30, 2014:

364,210 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2014:

5,246,951 shares

Three months ended Jun. 30, 2013:

4,769,375 shares

Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly summary report is exempted from quarterly review procedures based on the Financial Instruments andExchange Act. At the time of disclosure, the review procedures for the quarterly financial statements have been completed.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to theCompany’s management at the time the materials were prepared, but are not promises by the Company regarding future
performance. Actual results may differ materially from the forecasts. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements” on page 3
for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

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

2(2) Explanation of Financial Position

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

3

2. Matters Related to Summary Information (Notes)

5(1) Changes in Consolidated Subsidiaries during the Period

5(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

5(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

5

3. Important Information about Going Concern Assumption

5

4. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Three-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

11

Going Concern Assumption

11

Significant Changes in Shareholders’ Equity

11

Segment and Other Information

11

5. Supplementary Information

121

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, consolidated results of the Japan System Techniques Group (Japan
System Techniques Co., Ltd. and its consolidated subsidiaries, hereafter “the Group”) showed higher sales andprofits as follows: net sales of 2,678 million yen (up 5.2% from the same period of the previous fiscal year),
operating loss of 11 million yen (vs. operating loss of 105 million yen in the same period of the previous fiscal year),ordinary income of 18 million yen (vs. ordinary loss of 95 million yen in the same period of the previous fiscal year),and net loss of 4 million yen (vs. net loss of 75 million yen in the same period of the previous fiscal year). Resultsby segment were as follows.
In the software business (individualized contracted software development), net sales and profits increased. Orders
from the public sector and medical institutions declined, but increased from the finance/insurance/brokerageindustry, the telecommunications industry and the service/retail industry. Net sales totaled 1,993 million yen (up30.7% from the same period of the previous fiscal year) and operating income totaled 112 million yen (vs. operating
loss of 49 million yen in the same period of the previous fiscal year).
In the package business (development, sale and related services of operational reform packages for schools), net
sales and profits also increased. Operation services, IT equipment sales, and implementation support decreased, but
end user computing (EUC: contracted development of package-related systems) increased. Net sales totaled 366
million yen (up 15.7% from the same period of the previous fiscal year) and operating loss totaled 40 million yen(vs. operating loss of 60 million yen in the same period of the previous fiscal year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construction), net sales and profits
decreased. Orders from system integration (SI) projects for public sectors, and equipment sales to universities
declined. As a result, net sales totaled 248 million yen (down 62.1% from the same period of the previous fiscal
year), and operating loss totaled 35 million yen (vs. operating income of 49 million yen in the same period of theprevious fiscal year).
Lastly, in the medical big data business (inspection, analysis and related services of medical information), net sales
increased but profits declined. In addition to automated inspection services for health insurance claims, theexpansion of notification and data analysis services, and cloud services for checking service providers resulted inincreases in workforce and capital investment. Net sales totaled 70 million yen (up 45.0% from the same period of
the previous fiscal year), and operating loss totaled 49 million yen (vs. operating loss of 45 million yen in the same
period of the previous fiscal year).
Features of the Group’s quarterly results
A feature of the Group’s software, package and systems sales businesses is that the delivery inspection period of
most customers concentrates in March, the last month of the fiscal year for most companies, and then in September,the last month of the second quarter. This means that the Group’s earnings in the first and third quarters tend to bemuch smaller than in the second and fourth quarters.
(2) Explanation of Financial Position
1) Balance sheet position
The balance of current assets at the end of the first quarter of the current fiscal year was 6,157 million yen, down 406
million yen over the end of the previous fiscal year. This was mainly the net result of an increase in cash and deposits
from advances received and other items, and a decrease in accounts receivable-trade following the payment for orders
received at the end of the previous fiscal year. The balance of non-current assets was 2,240 million yen at the end of thefirst quarter, down 13 million yen over the end of the previous fiscal year. This was mainly due to the net result of anincrease in net defined benefit asset and a decrease in deferred tax assets, following the application of the accounting
standard for retirement benefits.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

The balance of current liabilities at the end of the first quarter was 2,147 million yen, down 217 million yen over theend of the previous fiscal year. This was mainly the net result of an increase in advances received and decreases for thepayments for accounts payable-trade and income taxes paid. The balance of non-current liabilities was 1,147 million
yen at the end of the first quarter, down 238 million yen over the end of the previous fiscal year. This was mainly due toa decrease in net defined benefit liability following the application of the accounting standard for retirement benefits,
and a decrease in provision for directors’ retirement benefits following the retirement of directors.
The balance of net assets was 5,102 million yen at the end of the first quarter, up 36 million yen over the end of theprevious fiscal year. This was mainly the net result of an increase in retained earnings following the application of theaccounting standard for retirement benefits, and a decrease in retained earnings due to the payment of dividends.
2) Cash flows
Cash and cash equivalents increased 247 million yen from 2,144 million yen at the start of the current fiscal year to
2,391 million yen at the end of the first quarter of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 404 million yen, a decrease of 319 million yen from 723 million yen
provided in the same period of the previous fiscal year. This was mainly due to a decrease in income from notes andaccounts receivable-trade, and an increase in outlays for provision for bonuses, while there was an increase in income
before income taxes and minority interests, and a decrease in outlays for notes and accounts payable-trade.
Cash flows used in investing activities totaled 31 million yen, a decrease of 199 million yen from 167 million yen
provided in the same period of the previous fiscal year. This was mainly due to a decrease in income fromwithdrawal of time deposits and collection of guarantee deposits, while there was a decrease in outlays for thepurchase of investment securities.
Cash flows used in financing activities totaled 123 million yen, a decrease of 259 million yen from 135 million yen
provided in the same period of the previous fiscal year. This was mainly due to a decrease in income from short-termloans payable.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
In the first quarter of the current fiscal year, the Japanese economy remained on a gradual recovery path, and fallingdemand following the April 2014 consumption tax hike has started to ease. However, a risk of economic stagnation
or a downturn remains because of external factors such as slowing growth in China and other major emerging
countries, and weakness in global economies.
In the IT industry in Japan, according to latest statistics in “Survey of Selected Service Industries” by the Ministry of
Economy, Trade and Industry (the final May figures), net sales began to rise on a year-on-year basis from October 2011
after declining for many years. Since then, net sales have continued to climb as the IT industry as a whole stages arecovery. However, the recovery is still weak.
The Group will be guided by the fiscal year’s slogan of “act with thought and speed.” Everyone at the Group has astrong commitment to adapt swiftly to changes involving clients, technologies and markets. The objective is to achieve
consistent growth in association with the shift from the previous business model centered on contracted development
activities. The Group is establishing a business model in which we take our own initiatives centered on proprietarybrand products.
Structural reforms have established a framework in which executive officers oversee each business unit and where the
newly established Management Planning Department oversees implementation of group business strategies. In addition,a global management executive has been appointed to take the lead in the full-scale expansion of activity by the Group
companies and the start of operations in China and other countries. Strategies in each business unit are as follows.
In the software business, a regional-based business structure has been established with the head offices in Tokyo and3

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

Osaka. There are three business divisions in the Tokyo head office: the division of contracted development operations
that has been reorganized into three units, each specializing in a particular field; the convergence business division
which is an independent division as in the previous fiscal year; and the sales division. At the Osaka head office,operations has been realigned into three business divisions, each specializing in a particular field. To build new profit
centers, the BankNeo business has become a separate business division of the financial-related business and has beenrealigned into two business divisions with the Financial Business Department, which consists of three regional–based
departments. The aim of these organizational changes is support consistent growth in earnings.
In the package business, the Group established business divisions in the greater Kanto and greater Kansai to localize
operations and firmly expand its market share in each region. Also, the Group plans to develop next-generation
mainstay products, enter the education market and grow faster in China. Furthermore, we will continue to work on
making the school operations reform package GAKUEN the dominant brand in the education market in Japan and othercountries.
In the system sales business, the Group will focus on expanding business from core clients and acquiring new clients inhigh-margin SE services, and new solutions utilizing security technology to build a new business platform and maintainearnings expansion.
Lastly, in the medical big data business, the Group will work to expand cloud services for claims checking service
providers, and also strengthen the sales and service organizations in the Tokyo and Osaka regions in order to capture
more orders and improve productivity.
Based on the above, we expect increases in sales and profits for the fiscal year ending March 31, 2015; net sales of
11,900 million yen (up 9.9% from the previous fiscal year), operating income of 525 million yen (up 22.8% from theprevious fiscal year), ordinary income of 555 million yen (up 17.1% from the previous fiscal year), and net income of
290 million yen (up 4.0% from the previous fiscal year).

4Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

2. Matters Related to Summary Information (Notes)(1) Changes in Consolidated Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ
Guidance No. 25, May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in the mainclauses of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on
Accounting Standard for Retirement Benefits. Accordingly, the Company reviewed the methods for calculating
retirement benefit obligations and service costs, and revised the method of attributing estimated retirement benefit
obligations to periods from the straight-line basis to the benefit formula basis, and revised the method of determining
the discount rate from the method using the approximate number of years of expected average length of remaining
service period of employees to the method using a single weighted average discount rate.
The application of this accounting standard, etc. in accordance with the transitional accounting treatments set forth inParagraph 37 of the Accounting Standard for Retirement Benefits, and thus the adjustments associated with the change
in calculation methods of retirement benefit obligations and service costs are recorded in retained earnings at the
beginning of the first quarter of the current fiscal year.
The result was decreases of 97,473 thousand yen in deferred tax assets and 169,824 thousand yen in net defined
benefit liability, and increases of 103,978 thousand yen in net defined benefit asset and 176,328 thousand yen inretained earnings at the beginning of the first quarter of the current fiscal year.
The effect of this change was to increase operating income, ordinary income and income before income taxes andminority interests by 1,470 thousand yen each in the first quarter of the current fiscal year.
3. Important Information about Going Concern Assumption
Not applicable.

5Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
FY3/14(As of Mar. 31, 2014)(Thousands of yen)First quarter of FY3/15(As of Jun. 30, 2014)

AssetsCurrent assets
Cash and deposits

3,319,585

3,572,687

Notes and accounts receivable-trade

2,607,749

1,895,202

Merchandise and finished goods

97,39430,997Work in process

167,776

240,079

Raw materials and supplies

2,347

5,464

Deferred tax assets

259,362

318,096

Other

112,940

96,907

Allowance for doubtful accounts(3,863)(2,394)

6,563,292

6,157,041

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

551,886

562,623

Accumulated depreciation(270,155)(279,903)

Buildings and structures, net

281,730

282,720Land

142,361

142,361

Other

252,174

254,387(171,771)(178,254)

80,402

76,132504,495

501,214Goodwill

27,02324,944

Software96,422

93,044

Other

7,189

7,189

130,635

125,179

Investment securities

362,629364,561

Net defined benefit asset

257,001

371,072

Deferred tax assets

234,645

103,226

Guarantee deposits

299,440

309,656

Other

519,352

519,869

Allowance for doubtful accounts(54,288)(54,288)

Total investments and other assets

1,618,782

1,614,098

2,253,912

2,240,492

8,817,204

8,397,533

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

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

6Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15(Thousands of yen)First quarter of FY3/15(As of Jun. 30, 2014)

FY3/14(As of Mar. 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

906,653

531,422

-

570

2,400

2,400

Income taxes payable

293,658

55,525

Provision for bonuses

531,526

238,215

Provision for directors’ bonuses

28,477

10,916

Other

601,663

1,308,047

2,364,379

2,147,097

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

1,800

1,200

Provision for directors’ retirement benefits

422,029

333,887

Net defined benefit liability

903,730

744,491

Other

58,856

67,912

1,386,415

1,147,491

3,750,795

3,294,589

Capital stock

1,071,446

1,076,669

Capital surplus

1,033,084

1,038,308

Retained earnings

3,025,811

3,067,135

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

Total shareholders’ equity

4,863,803

4,915,573

Valuation difference on available-for-sale securities

52,19153,147

Foreign currency translation adjustment(14,936)(15,600)

Remeasurements of defined benefit plans

91,15086,456

Total accumulated other comprehensive income

128,405

124,003

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

Accumulated other comprehensive income

Subscription rights to shares

514-

Minority interests

73,68663,367

Total net assets

5,066,409

5,102,944

8,817,204

8,397,533

Total liabilities and net assets

7Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/14(Apr. 1, 2013 – Jun. 30, 2013)(Thousands of yen)First three months of FY3/15(Apr. 1, 2014 – Jun. 30, 2014)

Net sales

2,544,482

2,678,014

Cost of sales

2,161,278

2,163,128

Gross profit

383,204

514,886

Selling, general and administrative expenses

489,063

526,867

Operating loss

(105,859)(11,981)Non-operating income
Interest income

2,833

3,401

Dividend income

1,164

2,717

Rent income

4,000

3,886

Subsidy income

576

14,986

Other

5,524

7,378

Total non-operating income

14,09832,371Non-operating expenses
Interest expenses

401

21

Rent expenses

2,334

1,965

791

399

Other

3,526

2,386

Ordinary income (loss)

Total non-operating expenses(95,287)

18,003

Income (loss) before income taxes and minority interests(95,287)

18,003

Income taxes(21,560)

28,162

Loss before minority interests(73,726)(10,159)

2,096(5,905)(75,823)(4,254)

Minority interests in income (loss)
Net loss8

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/14(Apr. 1, 2013 – Jun. 30, 2013)(Thousands of yen)First three months of FY3/15(Apr. 1, 2014 – Jun. 30, 2014)(73,726)(10,159)

Valuation difference on available-for-sale securities

5,352

955

Foreign currency translation adjustment

7,649(2,460)-(4,694)

Loss before minority interests
Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

13,001(6,198)(60,725)(16,357)

Comprehensive income attributable to owners of parent(67,621)(8,656)Comprehensive income attributable to minority interests

6,895(7,701)

Comprehensive income
Comprehensive income attributable to9Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15(3) Quarterly Consolidated Statement of Cash FlowsFirst three months of FY3/14(Apr. 1, 2013 – Jun. 30, 2013)(Thousands of yen)First three months of FY3/15(Apr. 1, 2014 – Jun. 30, 2014)

Income (loss) before income taxes and minority interests(95,287)

18,003

Depreciation

17,833

17,303

Amortization of software

2,554

6,252

Cash flows from operating activities

Amortization of goodwill

2,078

2,078

Increase (decrease) in provision for bonuses(150,210)(293,301)

Increase (decrease) in provision for retirement benefits(18,110)-Decrease (increase) in prepaid pension costs(3,859)-

Increase (decrease) in net defined benefit liability-(10,092)

Decrease (increase) in net defined benefit asset

-

3,423

(3,997)(6,119)401

21

Decrease (increase) in notes and accounts receivable-trade932,030

710,803

Increase (decrease) in advances received

245,578

182,194

Interest and dividend income
Interest expenses

Decrease (increase) in inventories

36,758(9,048)

Increase (decrease) in notes and accounts payable-trade(431,639)(375,216)

Other, net

326,048432,686

Subtotal

860,177

678,988

4,756

7,141

Interest and dividend income received
Interest expenses paid

(401)

(25)

Income taxes paid

(140,982)(282,077)

Net cash provided by (used in) operating activities

723,550

404,027

172,012(6,345)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of investment securities
Payments for guarantee deposits(813)(10,466)(100,252)

(448)

(354)

(12,185)

Proceeds from collection of guarantee deposits

106,818

992

Other, net(9,675)(3,310)Net cash provided by (used in) investing activities

167,735(31,763)

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

248,863570

Repayments of long-term loans payable

(600)

(600)

Proceeds from issuance of common shares

6,952

9,932

Purchase of treasury shares

(44)

-

(119,104)(130,750)

Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(190)(2,569)135,876(123,417)

2,355(1,174)

Net increase (decrease) in cash and cash equivalents

1,029,517

247,671

Cash and cash equivalents at beginning of period

1,609,962

2,144,070

Cash and cash equivalents at end of period

2,639,479

2,391,742

10

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Significant Changes in Shareholders’ Equity
Not applicable.

Segment and Other Information
Segment information
I. First three months of FY3/14 (Apr. 1, 2013 – Jun. 30, 2013)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

Packagebusiness

System sales Medical big
business data business

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

Net sales
1. External sales
1,524,837
316,710654,569
48,3652,544,482
2,544,482
2. Inter-segment sales
3,168
14,54017,708(17,708)
and transfers
Total
1,528,005
316,710669,110
48,3652,562,191(17,708)2,544,482
Segment profit (loss)(49,328)(60,157)
49,070(45,444)(105,859)(105,859)
Notes: 1. There is no adjustment to segment profit or loss because all of the operating expenses are allocated to each reportablesegment.
2. Segment loss is consistent with operating loss shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First three months of FY3/15 (Apr. 1, 2014 – Jun. 30, 2014)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

Packagebusiness

System sales Medical big
business data business

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

Net sales
1. External sales
1,993,395
366,297248,178
70,142
2,678,014
2,678,014
2. Inter-segment sales
3,416
11,355
14,771(14,771)
and transfers
Total
1,996,812
366,297259,533
70,142
2,692,786(14,771)2,678,014
Segment profit (loss)
112,843(40,444)(35,334)(49,046)(11,981)(11,981)
Notes: 1. There is no adjustment to segment profit or loss because all of the operating expenses are allocated to each reportablesegment.
2. Segment loss is consistent with operating loss shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ)
Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25,
May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in the main clauses of Paragraph 35 of the
Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits.
Accordingly, the Company reviewed the methods for calculating retirement benefit obligations and service costs, and revised themethod of attributing estimated retirement benefit obligations to periods from the straight-line basis to the benefit formula basis,and revised the method of determining the discount rate from the method using the approximate number of years of expected
average length of remaining service period of employees to the method using a single weighted average discount rate. The effectof this change on segment profit is insignificant.

11

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/15

5. Supplementary Information
Goods Manufactured, Orders Received and Sales(1) Goods Manufactured
Goods manufactured in the period under review are broken down by segment as follows.
Operating segment

First three months of FY3/15(Apr. 1, 2014 – Jun. 30, 2014)(Thousands of yen)
Year-on-year (%)

Software business

1,588,100

125.3

Package business

270,541

99.5

System sales business

221,21439.7

83,271128.2

2,163,128

100.1

Medical big data business
Total

Notes: 1. The above amounts are based on cost of sales; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.
(2) Orders Received
Orders received in the period under review are broken down by segment as follows.
Operating segment

Orders received

Year-on-year (%)(Thousands of yen)Order backlog

Year-on-year (%)

Software business

2,690,986

175.7

1,744,448

129.3

Package business

946,989274.0

979,303

221.8

System sales business

276,00733.5

182,73159.3

114,846270.4

247,497

92.1

4,028,829

146.8

3,153,981

133.2

Medical big data business
Total

Notes: 1. The above amounts are based on selling prices; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.
(3) Sales
Sales in the period under review are broken down by segment as follows.
First three months of FY3/15
Operating segment(Apr. 1, 2014 – Jun. 30, 2014)
Software business
1,993,395(Thousands of yen)
Year-on-year (%)
130.7

Package business

366,297

115.7

System sales business

248,17837.9

Medical big data business

70,142145.0

2,678,014

105.2

Total

Notes: 1. Inter-segment transactions have been eliminated.
2. The following table indicates sales amounts to major customers and their ratios to total sales amount.
(Thousands of yen)First three months of FY3/14
First three months of FY3/15(Apr. 1, 2013 – Jun. 30, 2013)(Apr. 1, 2014 – Jun. 30, 2014)
Customers
Amount%Amount%NTT COMWARE
WEST CORPORATION

147,0385.8

287,514

10.7

DUSKIN CO., LTD.

146,607

5.8

187,748

7.0

TIS Inc.

108,4544.3

120,438

4.5

3. The above amounts do not include consumption taxes.

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

12