February 13, 2014

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2014
(Nine Months Ended December 31, 2013)[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:
February 14, 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 February 13, 2014 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Third Quarter Ended December 31, 2013 (April 1, 2013 – December 31, 2013)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen

Nine months ended Dec. 31, 2013
Nine months ended Dec. 31, 2012
Note: Comprehensive income (million yen)

Million yen%

Million yen

%

7,116
8.4
(57)
(19)
6,565
3.7
(74)
(50)
Nine months ended Dec. 31, 2013: (22) (n.a.)Nine months ended Dec. 31, 2012: (60) (n.a.)%Million yen

%

-

(50)
(62)

-

Net income per share

Diluted net income per
share

Yen

Yen

(10.46)(13.23)-Nine months ended Dec. 31, 2013
Nine months ended Dec. 31, 2012
(2) Consolidated financial position

Total assets

Net assets

Million yen

As of Dec. 31, 2013
As of Mar. 31, 2013
Reference: Shareholders’ equity (million yen)

Equity ratio

Million yen

7,586
8,050
As of Dec. 31, 2013:

Net assets per share
%

4,478
4,489
4,412

Yen

58.2
55.0
As of Mar. 31, 2013:885.70929.704,429

2. Dividends
1Q-end2Q-endYen

Fiscal year ended Mar. 31, 2013
Fiscal year ending Mar. 31, 2014
Fiscal year ending Mar. 31, 2014 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

0.00
0.00

-

25.00

25.00

25.00

25.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2014 (April 1, 2013 – March 31, 2014)(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Net income per share%

Million yen%

Yen

Full year
10,900
7.5
400
27.3
450
26.4
Note: Revisions to the most recently announced consolidated earnings forecasts: None

Million yen%

Million yen%

Million yen

225

33.2

47.32

* 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 stock)1) Number of shares outstanding at the end of period (including treasury stock)
As of Dec. 31, 2013:

5,345,830 shares

As of Mar. 31, 2013:

5,128,330 shares

As of Mar. 31, 2013:

364,140 shares

2) Number of shares of treasury stock at the end of period
As of Dec. 31, 2013:

364,210 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2013:

4,809,941 shares

Nine months ended Dec. 31, 2012:

4,753,536 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 Third Quarter of FY3/14

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)

4(1) Changes in Consolidated Subsidiaries during the Period

4(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

4(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4

3. Important Information about Going Concern Assumption

4

4. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statements of Income
For the Nine-month Period

7

Quarterly Consolidated Statements of Comprehensive Income
For the Nine-month Period8(3) Quarterly Consolidated Statements of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Segment and Other Information

10

5. Supplementary Information

11

1

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months 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”) were as follows: net sales of
7,116 million yen (up 8.4% from the same period of the previous fiscal year), operating loss of 57 million yen (vs.
operating loss of 74 million yen in the same period of the previous fiscal year), ordinary loss of 19 million yen (vs.
ordinary loss of 50 million yen in the same period of the previous fiscal year), and net loss of 50 million yen (vs. net
loss of 62 million yen in the same period of the previous fiscal year). Net sales and profits increased, which trended
generally in line with plans. Results by segment were as follows.
In the software business (individualized contracted software development), net sales and profits increased. Orders
from the telecommunications industry and educational institutions declined, but increased from the service/retailindustry, the manufacturing industry, and the finance/insurance/brokerage industry sector. Net sales totaled 4,823
million yen (up 8.9% from the same period of the previous fiscal year) and operating income 60 million yen (vs.
operating loss of 57 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 declined. End user computing (EUC: contracted development of package-related systems), IT equipment
sales and program product (PP) sales to universities declined, but maintenance, introduction support increased. Net
sales totaled 1,061 million yen (down 8.1% from the same period of the previous fiscal year) and due to an increase inresearch and development expenses for product development, operating loss totaled 1 million yen (vs. operating
income of 179 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
increased. Although equipment sales to universities declined, orders from system integration (SI) projects for public
sectors increased sharply. As a result, net sales totaled 1,073 million yen (up 16.5% from the same period of theprevious fiscal year), and operating income 16 million yen (vs. operating loss of 21 million yen in the same period of
the previous fiscal year).
Lastly, in the medical big data business (inspection, analysis and related services of medical information), in addition toautomated inspection services for health insurance claims, the expansion of notification and data analysis services
steadily expanded contracts, boosting sales and profits. Net sales totaled 157 million yen (up 168.4% from the same
period of the previous fiscal year), and operating loss 131 million yen (vs. operating loss of 174 million yen in thesame period of the previous fiscal year).
Features of the Group’s quarterly results
A feature of the Group’s software, package and systems sales, and medical big data 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 andthird quarters tend to be much 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 third quarter was 5,463 million yen, down 668 million yen over the endof the previous fiscal year. This was mainly due to the net result of an increase in cash and deposits due to short-termloans payable and other items, and a decrease in notes and accounts receivable-trade. The balance of noncurrent assets
was 2,123 million yen at the end of the third quarter, up 204 million yen over the end of the previous fiscal year, mainly
due to increases from the long-term time deposits and purchase of investment securities.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

The balance of current liabilities at the end of the third quarter was 1,704 million yen, down 490 million yen over theend of the previous fiscal year. This was mainly due to the net result of an increase in short-term loans payable, anddecreases due to payments for notes and accounts payable-trade and income taxes paid. The balance of noncurrent
liabilities was 1,404 million yen at the end of the third quarter, up 38 million yen over the end of the previous fiscal
year.
The balance of net assets was 4,478 million yen at the end of the third quarter, down 11 million yen over the end of theprevious fiscal year. This was mainly due to the net result of increases in capital stock and capital surplus due to theexercise of subscription rights to shares, and a decrease in retained earnings due to the payment of dividends.
2) Cash flows
Cash and cash equivalents increased 499 million yen from 1,609 million yen at the start of the current fiscal year to2,109 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 267 million yen, compared with 270 million yen used in the same
period of the previous fiscal year. This was mainly due to the net result of increases from notes and accounts
receivable-trade and a decrease in inventories, and decreases from notes and accounts payable-trade and advances
received.
Cash flows used in investing activities totaled 22 million yen, compared with 265 million yen used in the same periodof the previous fiscal year. The main difference was the net result of a decrease in payments for guarantee deposits andan increase from the collection of guarantee deposits, and decreases from purchases of investment securities andsoftware.
Cash flows provided by financing activities totaled 251 million yen, compared with 130 million yen provided in thesame period of the previous fiscal year. The main difference factor was an increase from issuance of common stock.

(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
In the first nine months of the current fiscal year, the Japanese economy remained on a gradual recovery path due to yen
depreciation and higher share prices triggered by the government's economic stimulus measures and the Bank of Japan's
monetary policy. However, the outlook for the economy remained uncertain due to downside risk factors including
speculation regarding the tapering and ending of quantitative easing in the US and concerns of a slowdown of theeconomies of China and other emerging countries.
In the domestic IT industry, net sales in the information services sector remained positive on a year-on-year basis
according to the Ministry of Economy, Trade and Industry’s latest “Survey of Selected Service Industries” (final figures
as of November 2013), reflecting the ongoing recovery in the overall industry. However, we regard the recovery as
fragile given the aforementioned uncertainties regarding the outlook of the economy.
Despite the difficult business environment, the Group will steadily implement the core strategies it announced early inthe fiscal year to achieve its business targets. The Group’s strategy for each business segment is discussed below.
In the software business, the Group is moving forward with establishing a regional-based business structure with head
offices in Tokyo and Osaka. The Group has reorganized the Tokyo head office into two business divisions targeting the"big data" market. In the Osaka head office, the Group has newly established a department for planning and proposing
new solutions to continue to strengthen its earnings foundation and move forward with proposal-based marketing toachieve continued earnings expansion. Also, the Group has reorganized its financial-related division into three regionalbases, and will continue to expand its contracted development business and work to expand sales of "BankNeo," a data
integration package for financial institutions.

3

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

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, and will provide the latest educational IT services
including information terminals and hosting services. Also, the Group will start development and sales promotion
activities aimed at developing next-generation mainstay products, moving forward with alliances, and achieving sales
results of solutions for universities in China. Furthermore, it will continuously work to ensure that the school operations
reform package “GAKUEN” becomes the dominant brand in the education market.
In the system sales business, the Group will focus on expanding business from core clients and acquiring new clients inhigh-margin SE services, and on launching new solutions utilizing cloud technology to build a new business platform
and maintain earnings expansion.
Lastly, in the medical big data business, the Group will work to ensure the business makes a contribution as anindependent business by appointing a dedicated business head, and an advisor to expand the business's advisory
functions. It will also make its claims checking and analysis systems available over the cloud to third-party claims
checking service providers.
Based on the above, we maintain the initial consolidated earnings forecasts for FY3/14 that we released on May 10,2013; net sales of 10,900 million yen (up 7.5% from the previous fiscal year), operating income of 400 million yen (up27.3% from the previous fiscal year), ordinary income of 450 million yen (up 26.4% from the previous fiscal year), andnet income of 225 million yen (up 33.2% from the previous fiscal year).

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
Not applicable.
3. Important Information about Going Concern Assumption
Not applicable.

4

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY3/13(As of Mar. 31, 2013)(Thousands of yen)
Third quarter of FY3/14(As of Dec. 31, 2013)

AssetsCurrent assets
Cash and deposits

2,938,177

3,349,072

Notes and accounts receivable-trade

2,337,520

1,383,444

Merchandise and finished goods

145,160

51,573Work in process

291,906

409,312Raw materials and supplies

3,112

3,899

Deferred tax assets

194,068

161,102

Other

224,350

110,474

Allowance for doubtful accounts(3,056)(5,664)

6,131,241

5,463,215

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

550,476

551,886

Accumulated depreciation(232,452)(259,908)

Buildings and structures, net

318,024

291,977Land

142,361

142,361

Other

240,953

251,247(144,711)(165,100)

Accumulated depreciation
Other, net

96,242

86,147556,627

520,486

Goodwill

35,338

29,102

Software

18,56353,602

Total property, plant and equipment
Intangible assets

Other

7,189

7,189

Total intangible assets

61,09189,894

233,938

372,558

Investments and other assets
Investment securities
Long-term loans receivable

2,694

-

Deferred tax assets

245,413245,043

Guarantee deposits

329,950

299,532

Prepaid pension cost

115,869

127,664

Other

433,876525,609

Allowance for doubtful accounts(60,549)(57,588)

Total investments and other assets

1,301,192

1,512,819

1,918,912

2,123,199

8,050,153

7,586,415

Total noncurrent assets
Total assets

5Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14(Thousands of yen)
Third quarter of FY3/14(As of Dec. 31, 2013)

FY3/13(As of Mar. 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable-trade901,615363,785

Short-term loans payable

17,309262,040

Current portion of long-term loans payable

2,400

2,400

Income taxes payable

154,452

11,152

Provision for bonuses

383,366

263,330

Provision for directors’ bonuses

24,82923,026

Other710,917778,394

2,194,889

1,704,130

Total current liabilities
Noncurrent liabilities
Long-term loans payable

4,200

2,400

Provision for retirement benefits

888,617903,570

Provision for directors’ retirement benefits

397,697

419,171

Other

75,20979,0871,365,724

1,404,228

3,560,614

3,108,359

Capital stock924,223

990,052

Capital surplus

885,862

951,690

Retained earnings

2,865,993

2,696,581

Treasury stock(266,494)(266,539)

Total shareholders’ equity

4,409,584

4,371,784

Valuation difference on available-for-sale securities

34,41458,876

Foreign currency translation adjustment(14,720)(18,452)

Total accumulated other comprehensive income

19,69440,423984

764

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares
Minority interests

59,27565,082

Total net assets

4,489,539

4,478,056

8,050,153

7,586,415

Total liabilities and net assets

6Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the Nine-month Period)First nine months of FY3/13(Apr. 1, 2012 – Dec. 31, 2012)(Thousands of yen)First nine months of FY3/14(Apr. 1, 2013 – Dec. 31, 2013)

Net sales

6,565,408

7,116,854

Cost of sales

5,379,077

5,855,410

Gross profit

1,186,331

1,261,443

Selling, general and administrative expenses

1,260,459

1,318,450

Operating loss

(74,128)(57,007)

Non-operating income
Interest income

7,478

9,785

Dividends income

3,726

5,371

Rent income

11,42010,982

Subsidy income

2,615

19,766

Other

7,317

11,038

Total non-operating income

32,55756,943Non-operating expenses
Interest expenses

1,204

3,469

Rent expenses

6,075

14,524

Other

1,611

1,620

8,890

19,614

Ordinary loss

Total non-operating expenses(50,461)(19,678)

Loss before income taxes and minority interests(50,461)(19,678)

Income taxes

8,046

28,834

Loss before minority interests(58,507)(48,512)

Minority interests in income

4,404

1,795

(62,912)(50,307)

Net loss7

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

Quarterly Consolidated Statements of Comprehensive Income(For the Nine-month Period)First nine months of FY3/13(Apr. 1, 2012 – Dec. 31, 2012)(Thousands of yen)First nine months of FY3/14(Apr. 1, 2013 – Dec. 31, 2013)(58,507)(48,512)(2,068)24,461

Loss before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

305

1,361

(1,762)25,822(60,269)(22,689)

Comprehensive income attributable to owners of the parent(64,880)(29,578)

Comprehensive income attributable to minority interests

4,610

6,888

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to8

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)First nine months of FY3/13
First nine months of FY3/14(Apr. 1, 2012 – Dec. 31, 2012) (Apr. 1, 2013 – Dec. 31, 2013)
Net cash provided by (used in) operating activities
Loss before income taxes and minority interests(50,461)(19,678)

Depreciation and amortization

40,34054,986

Depreciation of software

6,612

9,122

Amortization of goodwill
Increase (decrease) in provision for bonuses

4,157

6,236

(166,265)(120,035)

Increase (decrease) in provision for retirement benefits

24,015

14,209Decrease (increase) in prepaid pension costs

6,829(11,794)(11,204)(15,156)

1,204

3,469

Decrease (increase) in notes and accounts receivable-trade437,264

958,800

Increase (decrease) in advances received

233,115

102,064

Decrease (increase) in inventories(422,519)(24,049)

Increase (decrease) in notes and accounts payable-trade(292,322)(537,995)

Other, net

81,967(17,050)

Subtotal(107,266)

403,128

12,224

15,828Interest and dividends income
Interest expenses

Interest and dividends income received
Interest expenses paid

(1,204)(3,564)

Income taxes paid

(173,854)(147,632)

Net cash provided by (used in) operating activities(270,101)

267,759(26)(6,653)(47,848)(15,605)-

8,642

Net cash provided by (used in) investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from cancellation of insurance funds
Purchase of software(2,797)(44,161)

Purchase of investment securities
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Payments for guarantee deposits(1,680)(101,602)(18,788)-(196,777)(1,186)

Proceeds from collection of guarantee deposits

6,072

138,420

Other, net(3,383)(705)(265,230)(22,852)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable279,223

243,031

Proceeds from long-term loans payable

7,800

-

Repayment of long-term loans payable(41,687)(1,800)

Proceeds from issuance of common stock

4,516

131,437

Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

-

(44)

(118,689)(119,104)(478)(1,283)

(180)

(388)

130,504

251,847

8,705

2,758

Net increase (decrease) in cash and cash equivalents(396,121)

499,514

Cash and cash equivalents at beginning of period

2,015,704

1,609,962

Cash and cash equivalents at end of period

1,619,582

2,109,476

9

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.

Significant Changes in Shareholders’ Equity
Following the exercise of subscription rights to shares, capital stock and capital surplus increased 65,828 thousand yen eachduring the first nine months of FY3/14, to 990,052 thousand yen and 951,690 thousand yen, respectively, at the end of thethird quarter of the current fiscal year.

Segment and Other Information
I. First nine months of FY3/13 (Apr. 1, 2012 – Dec. 31, 2012)
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
statements of income(Note 1)
(Note 2)

Net sales
1. External sales
4,429,791
1,155,698
921,161
58,756
6,565,408
6,565,408
2. Inter-segment sales
3,260
29,81233,073(33,073)and transfers
Total
4,433,051
1,155,698
950,974
58,756
6,598,481(33,073)
6,565,408
Segment profit (loss)(57,932)
179,704(21,250)(174,650)(74,128)(74,128)
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 statements of income.
2. Information related to impairment losses on noncurrent assets, goodwill, etc. for each reportable segment
Significant change in goodwill
In the software business, the Company purchased the stock of NewNeeds Co., Ltd. and SafeNeeds Co., Ltd. and made themconsolidated subsidiaries in the first six months of FY3/13. Goodwill of 41,574 thousand yen emerged related to the purchases.
II. First nine months of FY3/14 (Apr. 1, 2013 – Dec. 31, 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
statements of income(Note 1)
(Note 2)

Net sales
1. External sales
4,823,994
1,061,795
1,073,361
157,702
7,116,854
7,116,854
2. Inter-segment sales
16,76528,08544,850(44,850)
and transfers
Total
4,840,759
1,061,795
1,101,446
157,702
7,161,704(44,850)
7,116,854
Segment profit (loss)
60,182(1,863)
16,329(131,655)(57,007)(57,007)
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 statements of income.
2. Information related to impairment losses on noncurrent assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments
The Group formerly had three reportable business segments of "software," "package," and "system sales," but added "medical big
data" business (inspection, analysis and related services of medical information) as a reportable business segment beginning fromthe first quarter of the current fiscal year in light of the growing monetary importance of the business. The segment information for
the first nine months of FY3/13 is prepared and disclosed based on the reportable segment categories after the revision as shown in“I. First nine months of FY3/13 (Apr. 1, 2012 – Dec. 31, 2012), 1. Information related to net sales and profit or loss for eachreportable segment.”

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/14

5. Supplementary Information
Goods Manufactured, Orders Received and Sales
Reportable segment categories are revised from the first quarter of the current fiscal year as described in the section “4. Quarterly
Consolidated Financial Statements, (4) Notes to Quarterly Consolidated Financial Statements (Segment and Other Information).”Year-on-year changes are presented by using adjusted figures for the first nine months of FY3/13 according to new reportablesegment categories.
(1) Goods Manufactured
Goods manufactured in the period under review are broken down by segment as follows.
First nine months of FY3/14
Operating segment(Apr. 1, 2013 – Dec. 31, 2013)
Software business
4,010,664(Thousands of yen)
Year-on-year (%)
106.5

Package business

722,786

98.7

System sales business

918,411113.3

Medical big data business

203,547201.0

5,855,410

108.2

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

4,825,728

102.7

1,343,934

97.2

Package business

1,458,510

101.6

809,318

104.6

System sales business

1,254,785

125.2

320,470

52.4

Medical big data business

84,72826.9

201,68574.5

7,623,752

102.3

2,675,408

88.1

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 nine months of FY3/14
Operating segment(Apr. 1, 2013 – Dec. 31, 2013)
Software business
4,823,994(Thousands of yen)
Year-on-year (%)
108.9

Package business

1,061,795

System sales business

1,073,361

116.5

Medical big data business

157,702268.4

7,116,854

108.4

Total

91.9

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 nine months of FY3/13
First nine months of FY3/14(Apr. 1, 2012 – Dec. 31, 2012)(Apr. 1, 2013 – Dec. 31, 2013)
Customers
Amount%Amount%

DUSKIN CO., LTD.

477,6297.3

531,628

7.5

NTT COMWARE
WEST CORPORATION

645,1459.8

481,028

6.8

TIS Inc.

283,204

4.3

328,329

4.6

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.

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