November 10, 2022

Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2023
(Six Months Ended September 30, 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 Division
Tel: +81-6-4560-1000
Scheduled date of filing of Quarterly Report:
November 11, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes (for analysts)
Company name:
Stock code:
Representative:
Contact:

Note: The original disclosure in Japanese was released on November 10, 2022 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended September 30, 2022
(April 1, 2022 – September 30, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Ordinary income

Million yen%
Million yen%
Million yen
Six months ended Sep. 30, 2022
11,004
9.6
1,003
1.1
1,037
Six months ended Sep. 30, 2021
10,042992
1,004
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2022:
908 (up 28.6%)
Six months ended Sep. 30, 2021:
706 (-%)%
3.3-

Profit attributable toowners of parent
Million yen
%
737
7.4
686
-

Diluted net income per
share
Yen
Yen
Six months ended Sep. 30, 2022
60.16
Six months ended Sep. 30, 2021
60.22
Notes: 1. JAST conducted a 2-for-1 common stock split on October 1, 2022. Net income per share has been calculated as if thisstock split has taken place at the beginning of the fiscal year ended March 31, 2022.
2. Beginning with the first quarter of 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 forthe six months ended September 30, 2021 incorporate this accounting standard and comparisons with the previous fiscal
year are omitted.
Net income per share(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As of Sep. 30, 2022
15,687
9,852
62.5
799.37
As of Mar. 31, 2022
15,5399,194
58.9
746.86
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2022:
9,803
As of Mar. 31, 2022:
9,159
Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. Net assets per share are the amount after the stock split, as
if this stock split has taken place at the beginning of the fiscal year ended March 31, 2022.

2. Dividends
1Q-endYen-

2Q-end
Yen
0.00
0.00

Dividend per share
3Q-endYen-

Year-end
Yen
40.00

Total

Yen
Fiscal year ended Mar. 31, 2022
40.00
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023 (forecasts)
25.00
25.00
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. The dividend per share forecasts for the fiscal year
ending March 31, 2023 are the amount after the stock split.

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

Million yen%

Yen

Full year
22,400
4.7
2,120
6.0
2,160
5.2
1,370
3.0
111.70Notes: 1. Revisions to the most recently announced consolidated earnings forecasts: None
2. JAST conducted a 2-for-1 common stock split on October 1, 2022. The net income share forecast is the amount after thestock split.

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

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2022:

12,418,460 shares

As of Mar. 31, 2022:

12,418,460 shares

As of Mar. 31, 2022:

153,932 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2022:

154,232 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2022:

12,264,383 shares

Six months ended Sep. 30, 2021:

11,406,511 shares

Note: JAST conducted a 2-for-1 common stock split on October 1, 2022. The number of shares outstanding at the end of theperiod has been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31,
2022.

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 Second Quarter of FY3/23

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 Six-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Six-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

Additional Information

10

Segment and Other Information

11

Business Combinations

12

Subsequent Events

13

1

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its
consolidated subsidiaries, hereafter “the Group”) in the first half of the current fiscal year were 11,004 million yen (up9.6% year on year). Operating income was 1,003 million yen (up 1.1% year on year), ordinary income was 1,037
million yen (up 3.3% year on year), and profit attributable to owners of parent was 737 million yen (up 7.4% year onyear).
Business segment performance was as follows.
In the first quarter of the current fiscal year, JAST revised its reportable segments and the method used for calculating
segment profit and loss. Comparisons and analysis of first half results of operations are based on the revised segments
and profit and loss calculation method. Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (4)Notes to Quarterly Consolidated Financial Statements, Segment and Other Information, Segment information, 3.
Information related to revisions for reportable segments” for further information.
(Digital transformation and system integration (DX&SI) business)
Segment sales increased 9.5% from one year earlier to 6,870 million yen and the operating income increased 24.5% to
1,044 million yen. The number of large and prime orders, which was included in the software business in prior years,
for existing and new customers was larger than one year earlier. In addition, sales of the mainstay hardware, which was
included in the system sales business in prior years, were higher due to the easing of global semiconductor shortages.
As a result, overall profitability of the business increased.
(Package business)
Segment sales decreased 3.8% from one year earlier to 2,051 million yen and the operating income was down 29.3% to555 million yen. Orders for the GAKUEN Series, consisting of the GAKUEN RX and GAKUEN UNIVERSALPASSPORT RX strategic university management systems, and BankNeo, an information systems integration package
for financial institutions, remained firm. However, there was a large number of sales of program products, which havehigh profit margins, for both the GAKUEN Series and BankNeo in the same period of the previous fiscal year. In
addition, sales of support services to start using the GAKUEN Series decreased. The Group’s performance as of the endof the second quarter of the current fiscal year was ahead the plan. We expect sales to be solid during the fiscal year.
(Medical big data business)
Segment sales decreased 2.9% from one year earlier to 718 million yen and the operating income was down 45.8% to
70 million yen. This was primarily because sales of highly profitable analysis services were heavily concentrated in thesame period of the previous fiscal year. However, orders in this business as a whole remained firm. The Group’s
performance as of the end of the second quarter of the current fiscal year was ahead the plan. We expect sales to besolid during the fiscal year.
(Global business)
Sales increased 52.0% from one year earlier to 1,363 million yen and the operating income increased from 0 million
yen to 184 million yen. Higher sales and earnings were primarily the result of the increase in orders and inquiries in
Malaysia for support services for the use of SAP software, not only from existing major customers but also from newcustomers. This business segment also benefited from the weakening of the yen that lifted profit particularly atoverseas subsidiaries with strong business results.
(General and administrative expenses not allocated to a reportable segment)
Corporate general and administrative expenses increased 11.5% from one year earlier to 851 million yen mainly
because of higher personnel expenses as more people were hired.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the second quarter were 12,611 million yen, up 222 million yen from the end of theprevious fiscal year. This was mainly due to increases in cash and deposits due to collection of accounts
receivable-trade and higher contract liabilities. Non-current assets were 3,075 million yen, down 75 million yen fromthe end of the previous fiscal year.
Current liabilities at the end of the second quarter were 4,068 million yen, down 552 million yen from the end of theprevious fiscal year. This was mainly due to decreases in accrued consumption taxes, which is included in other, andincome taxes payable. Non-current liabilities were 1,765 million yen, up 41 million yen from the end of the previous
fiscal year.
Net assets at the end of the second quarter were 9,852 million yen, up 658 million yen from the end of the previous
fiscal year.
2) Cash flows
Cash and cash equivalents increased 562 million yen from 6,463 million yen at the beginning of the current fiscal year
to 7,026 million yen at the end of the first half of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 818 million yen, a decrease of 19 million yen from 838 million yen
provided in the same period of the previous fiscal year. This decrease was mainly due to an increase in payments oftrade payables.
Net cash used in investing activities totaled 85 million yen, an increase of 28 million yen from 57 million yen used in
the same period of the previous fiscal year. This was due to an increase in purchase of investment securities and adecrease in proceeds from sales of investment securities.
Net cash used in financing activities totaled 273 million yen, a decrease of 866 million yen from 592 million yen
provided in the same period of the previous fiscal year. This was due to decreases in proceeds from disposal of treasury
shares and proceeds from issuance of shares.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
There are no revisions to the May 13, 2022 forecasts for the fiscal year ending March 31, 2023: 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 of parent of 1,370 million yen (up 3.0%
year on year).

3Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

AssetsCurrent assets
Cash and deposits

6,464,852

7,027,339

Notes and accounts receivable-trade, and contract assets

5,533,330

4,978,692

Merchandise and finished goods

147,538

186,919

Work in process

99,301

139,806

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

5,761

7,175

144,293283,752(5,875)(12,332)

12,389,203

12,611,354

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

842,406

857,531

Accumulated depreciation(548,763)(571,882)

Buildings and structures, net

293,643

285,649

142,361

142,361

Land
Other
Accumulated depreciation
Other, net

565,150

593,586(454,587)(478,530)

110,562

115,055

546,567

543,067

Goodwill

102,785

103,499

Customer-related assets

83,113

83,691

Software80,90978,350

Other

7,626

7,626

274,435

273,167

Investment securities

542,531593,925

Retirement benefit asset

705,144706,791

Deferred tax assets

536,929

413,308

Guarantee deposits

457,167

456,784

Other

89,934

94,880Allowance for doubtful accounts(1,925)(6,159)Total investments and other assets

2,329,781

2,259,530

3,150,785

3,075,765

15,539,989

15,687,120

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

4Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,380,056

1,085,624

Short-term borrowings

8,518

-

Income taxes payable

563,468

183,911

Contract liabilities

430,851

1,154,613

Provision for bonuses

1,194,536

867,638

Provision for bonuses for directors (and other officers)

77,53032,940

Provision for loss on construction contracts

52,96063,104

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

913,152

680,670

4,621,074

4,068,504

120,728

132,636

6,646-

1,058,791

1,070,323

24,65540,159513,608

522,748

1,724,430

1,765,867

6,345,505

5,834,371

Share capital

1,535,409

1,535,409

Capital surplus

1,703,991

1,702,732

Retained earnings

5,865,484

6,355,035

Treasury shares(175,264)(175,649)

Total shareholders’ equity

8,929,621

9,417,527

121,768

122,494

Foreign currency translation adjustment(2,240)161,728

Remeasurements of defined benefit plans

110,706

101,882

Total accumulated other comprehensive income

230,234

386,105

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

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

534,62849,116

9,194,483

9,852,748

15,539,989

15,687,120

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Thousands of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

Net sales

10,042,475

11,004,040

Cost of sales

7,323,153

8,076,392

Gross profit

2,719,321

2,927,648

Selling, general and administrative expenses

1,726,850

1,924,054

992,471

1,003,593

Interest income

5,805

6,755

Dividend income

2,920

4,840

Rental income

1,334

1,211

-

14,292

Subsidy income

5,313

5,549

Other

3,232

5,756

Total non-operating income

18,60638,406632

284

Operating income
Non-operating income

Foreign exchange gains

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

-

3,942

Foreign exchange losses

1,921

-

Share acquisition rights issuance costs

3,808

-

536

698

6,899

4,926

Ordinary income

1,004,177

1,037,073

Profit before income taxes

1,004,177

1,037,073

Income taxes

311,841

288,681

Profit692,336

748,391

5,401

10,565686,934

737,825

Other
Total non-operating expenses

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

6

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Thousands of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

692,336

748,391(26,211)725

Foreign currency translation adjustment

52,431

168,234

Remeasurements of defined benefit plans, net of tax(11,903)(8,824)

Total other comprehensive income

14,316160,136

706,652

908,527

701,073893,618

5,579

14,909ProfitOther 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

7

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Thousands of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

1,004,177

1,037,073

Depreciation

52,55355,194

Amortization of software

12,145

12,415

Amortization of goodwill

16,311

12,176

Amortization of customer-related assets

9,790

9,846

Amortization of trademark

471-

Amortization of technology assets

837-

Cash flows from operating activities
Profit before income taxes

Increase (decrease) in provision for bonuses(138,301)(328,630)

Increase (decrease) in retirement benefit liability

3,264

8,027

Decrease (increase) in retirement benefit asset(1,721)(1,647)

Interest and dividend income(8,726)(11,596)

Interest expenses

632

284

4,415

642,867

Increase (decrease) in contract liabilities

681,518

720,591

Decrease (increase) in inventories

233,619(81,300)

Increase (decrease) in trade payables(26,541)(313,474)

Decrease (increase) in trade receivables and contract assets

Other, net(563,446)(425,539)

Subtotal

1,281,000

1,336,288

Interest and dividends received

5,159

11,596

Interest paid

(540)

(285)

Income taxes paid

(447,072)(528,793)

Net cash provided by (used in) operating activities

838,546

818,8058

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Thousands of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)(29,637)(36,400)

6,260

1,080

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of software
Purchase of investment securities(11,414)(4,963)(728)(47,542)

Proceeds from sale of investment securities

22,601-

Loan advances(46,587)(1,292)

Proceeds from collection of loans receivable

2,155

3,378

Proceeds from refund of guarantee deposits

1,171

2,428

Payments of guarantee deposits

(920)

(972)

Proceeds from sale of membership

490-

Other, net(475)(1,406)(57,084)(85,691)

Net increase (decrease) in short-term borrowings(400,000)(9,808)

Repayments of lease liabilities(13,510)(13,273)

Repayments of long-term borrowings(2,800)-

Proceeds from issuance of shares

913,240

-

-

(385)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Proceeds from disposal of treasury shares

248,042-Dividends paid

(152,028)(248,274)

Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-(1,680)592,943(273,422)

31,654

102,663

Net increase (decrease) in cash and cash equivalents

1,406,061

562,355

Cash and cash equivalents at beginning of period

4,853,695

6,463,823

Cash and cash equivalents at end of period

6,259,757

7,026,178

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Additional Information
Board Benefit Trust (BBT)
Based on the resolution of the 46th Annual General Meeting of Shareholders, JAST on June 26, 2018 terminated the
directors’ retirement benefit system and established a Board Benefit Trust (BBT) for the purpose of increasing
motivation for contributing to the medium to long-term growth of sales and earnings and an increase in corporate value.
The BBT plan clearly links the compensation of directors with the JAST stock price. Furthermore, directors share withshareholders 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; sameafterward unless indicated otherwise) receive stock compensation or a monetary amount equivalent to the market valueof the stock in lieu of stock compensation in accordance with the rules on the stock compensation plan for directors. In
principle, a director becomes eligible for stock compensation only after the individual is no longer a JAST director.
2) JAST stock held by the BBT
The book value (excluding associated expenses) of JAST stock held by the BBT is shown as treasury shares in the net
assets section of the consolidated balance sheet. The BBT held 74,600 shares of JAST with a book value of 171,700
thousand yen as of the end of the previous fiscal year, and the BBT held 74,600 shares with a book value of 171,700
thousand yen as of the end of the second quarter of the current fiscal year.

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

Segment and Other Information
Segment information
I. First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment
DX&SI
business

Packagebusiness

Medical big
data business

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

6,273,041

2,131,669

740,496

22,566

2,475

-

Total

6,295,608

2,134,144

740,496

Globalbusiness

Total

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

Net sales
897,267 10,042,475-

10,042,475

33,454(33,454)-905,679 10,075,929(33,454)

10,042,475

8,412

Segment profit
839,188786,028
130,802
203 1,756,224(763,753)
992,471
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating 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 six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
Medical big
data business

Globalbusiness

DX&SI
business

Packagebusiness

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

6,870,153

2,051,526

718,883

1,363,476

11,004,040-

11,004,040

42,06328,015-

18,821

88,900(88,900)-

Total

6,912,216

2,079,542

718,883

1,382,298

11,092,940(88,900)

11,004,040

Total

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

Net sales

Segment profit
1,044,698
555,73170,923
184,168 1,855,521(851,927)
1,003,593
Notes: 1. Segment profit in the above adjustment represents includes corporate expenses. These corporate expenses mainly include
general and administration expenses that cannot be attributed to any of the reportable segments.
2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments(Revisions to reportable segments)
During the past several years, the scale and composition of business operations of the JAST Group as well as the types of services
provided have changed significantly along with dramatic shifts in the social and business environment. In response to these changes,
the JAST Group started using new business segments in the first quarter of the fiscal year ending in March 2023. The purposes of
the new segments are to facilitate more accurate and thorough management and decision-making concerning growth strategies andother items and to disclose information to investors in a more suitable format. In previous fiscal years, the reportable segments were
the software business, GAKUEN business, system sales business and medical big data business. The new segments are the digitaltransformation and system integration (DX&SI) business, package business, medical big data business and global business.
The former software business has been renamed the DX&SI business for the purpose of clearly expressing the commitment of thisbusiness to providing even more added value and creating seeds for new businesses. This business aims to continue the steady
growth of system integration, currently the largest source of JAST’s earnings, while shifting emphasis to co-creation digitaltransformation activities. The goal of these activities with customers is to use digital technologies for business process innovationand for making customers and the JAST Group more competitive. The DX&SI business includes former system sales business. The
former GAKUEN business has been renamed the package business because this business uses package systems with JAST brands toprovide comprehensive digital transformation services and aim for growth. The package business includes the BankNeo financial

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Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

institution information systems integration package that was in the software business in prior years. The activities of the global
business were included in the former software business in prior years. Beginning with this fiscal year, global operations are aseparate business segment to more accurately provide information about the distinctive characteristics and growth strategies of the
JAST Group’s businesses, such as solutions and wide-area activities in the ASEAN region and China.
Segment information for the first six months of FY3/22 is based on the new reportable segments.
(Change in method for calculating segment profit and loss)
In recent years, the scale and characteristics of the business activities of the JAST Group have changed and the importance ofproperly managing these activities has increased. To more appropriately evaluate the performance of the group’s reportable segments,
the allocation of expenses for head office functions has been reexamined. In prior years, general and administrative expenses that
could not be allocated to a reportable segment were allocated in accordance with expense allocation standards. Beginning with thefirst quarter of the current fiscal year, these expenses are instead recognized as corporate expenses that are part of the adjustment tosegment profit.
Segment profit and loss for the first six months of FY3/22 is based on the new calculation method.

Business Combinations
This information is omitted due to immateriality.

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Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/23

Subsequent Events
Following the resolution approved by the Board of Directors meeting held on August 22, 2022, JAST implemented astock split and has made an associated revision to the Articles of Incorporation.
1. Stock split(1) Purpose of stock split
The purpose of the stock split is to make investment easier for investors by reducing the value of JAST’s investment
unit, thereby expanding the investor base and increasing the liquidity of its shares.
(2) Method of stock split
Shareholders listed in the final shareholder register on the record date of September 30, 2022 have received two sharesof common stock for each share held on the record date.
(3) Number of shares increased by the stock split
Total number of shares issued prior to the stock split:
Number of shares increased by the stock split:
Total number of shares issued following the stock split:
Total number of authorized shares following the stock split:

6,209,230 shares
6,209,230 shares
12,418,460 shares
32,000,000 shares(4) Schedule
Public notice of record date:
Record date:
Effective date:

September 15, 2022
September 30, 2022
October 1, 2022

2. Partial revision to the Articles of Incorporation following the stock split(1) Reason for the revision
In association with this stock split, the JAST Articles of Incorporation was partially amended on October 1, 2022 inaccordance with Article 184, Paragraph 2 of the Companies Act.
(2) Details of the revision (Underlined parts are revised.)
Current
Article 6: (Total Number of Shares Authorized)
The total number of shares authorized to be issued by theCompany shall be 16,000,000 shares.

After revision
Article 6: (Total Number of Shares Authorized)
The total number of shares authorized to be issued by theCompany shall be 32,000,000 shares.

(3) Effective date
October 1, 2022

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.

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