Tokyo Stock Exchange Prime Market Stock code: 4323

FY2023.３
Financial Results Briefing
Japan System Techniques Co., Ltd.

©2023 Japan System Techniques Co., Ltd.

Contents

Ⅰ．FY2023.3 Summary
Ⅱ．Performance Overview
Ⅲ．Forecast for FY2024.3 and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

1

Ⅰ．FY2023.3 Summary

１．Consolidated results
2021.3Full year

Net sales
Gross profit
Gross profit rate（％）

Operating income
Operating margin（％）

Ordinary income

Profit attributable toowners of parent

Total assets
Net assets
Equity ratio（％）
PER（times）
PBR（times）
ROE（％）ROIC (invested capital)（％）
WACC*（％）
Number of
employees（person）

Comparison with the same period of the previous year
2022.3Full year

2023.3Full year

（M¥）

YoY

23,519
6,375
27.1
2,385
10.1
2,450

1,330

1,772

+9.9%
+12.1%+0.5+19.3%+0.8+19.4%

12,861

15,539

6,850

9,194

53.0

58.9

17,413
10,81661.84+12.1%+17.6%
+2.9

14.08

11.88

1.20

1.71

8.90

16.66

11.10

16.54

5.85

4.58

12.46
2.05
17.78
17.08
6.09

+0.6
+0.3
+1.1
+0.5
+1.51

1,320

1,448

1,687

+16.5%

18,78921,399

4,620

5,688

1,216

2,000

1,310

2,052

578

24.6
6.5

26.5
9.3

+33.2%

 Performance• Net sales increased for 12 consecutive years andreached a record high for 10 consecutive years• Ordinary income increased for 8 consecutive years
and reached a record high for 4 consecutive years• Operating margin continued to improve and reached the
10% level Financial condition• Continuing stability of financial base due to continuous
increase in profit and good liquidity on hand, Capital efficiency• Both ROE and ROIC increased for three consecutive years• EVA spread continuously positive• PBR achieved a level above 2 times

 Number of employees• Recruitment of new graduates fulfilled as initiallyplanned• Increased demand for human resources, mainly
experienced personnel, due to brisk orders*The formula for calculating WACC is provided on page 26.
©2023 Japan System Techniques Co., Ltd.

2

Ⅰ．FY2023.3 Summary

２． Digest by Segment
Segment

Business Conditions and Factors of Increase/Decrease

DX&SI
business• Expansion of large prime projects for new and existingcustomers• Quarterly profit margin improvement due to stable project
operations

PackageBusiness• GAKUEN sales and income down due to lower PP sales• BankNeo grew in both revenue and profit due to strong PP
sales• Orders for both services increased from the previous quarter

Medical big
data business• Expansion of high-profit businesses such as analytical services
and insurer business support services

Globalbusiness• New customer expansion in Malaysia SAP business• Currency fluctuations have a positive effect on profit＜Net sales＞（M¥）

25,00020,00015,00010,0005,000
021,399
2,087
1,806
4,601
12,9032022.3

DX&SI business

23,519
2,673
2,021
4,489

14,3352023.3 （Full year）

Package business

（M¥）

4,500

2023.3Full year

Net sales

14,335

2,700

+2.4

4,489

1,250

27.8%

YoY

▲2.4%

▲18.2%▲5.4

2023.3Full year

2,021+11.9％

457

22.6%+19.9%+1.6+28.0%+453.0%2023.3Full year

YoY

YoY

1,529

1,800
900

0
▲900

▲1,800

2,385
271
457
1,250

1,559

2,078

▲1,51

▲1,67

9

2022.312023.3 （Full year）

Medical big data business*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

14.5%+33.2%＜Operating income＞

3,600

2,078

+11.0%

YoY

2023.3Full year

2,000
49
381

Operatingincome（M¥）
Operatingincome rate

2,673

（％）

35.0
30.0
25.0
20.0
15.0
10.0

5.0
0.0

271

10.1%

+7.8

＜Operating margin＞
33.2

27.8

21.1

22.6

12.0

14.5
10.1

2.3
2022.3Global business2023.3 （Full year）

Common to all©2023 Japan System Techniques Co., Ltd.

3

Ⅰ．FY2023.3 Summary

３．Topics（From 3Q FY2023.3）

Business Activities••

Established Virtual Calibre Consulting India Pvt. Ltd. in Chennai, India to expand SAP*1 business in South Asia and the Middle East [2023/1/6]
Determined GAKUEN would be implemented at Tohoku University [2023/3/22]

Shareholder Returns / Corporate Value••

Dividend forecast revised upward from ¥25.00 to ¥32.00 yen (as a dividend increase and the 50th anniversary commemorative dividend) [2023/1/26]
Market capitalization of tradable shares reaches 10.9 billion yen* and meets criteria for maintaining prime listing [2023/4/20]

Alliance••

Started providing medical data on AWS [2022/11/8]
Started collaboration with Kindai University students “YARUKA YARANKA Inc.” for the development of a new service targeting Generation Z students••

Reported joint analysis results with Professor Hirata from Nagoya Institute of Technology in the “ Cabinet Office COVID-19 AI Simulation Project” [2023/1/5]
Started joint research on fracture treatment using medical big data initiated with Research Associate Hiroyuki Okada from the Center for Disease Biology
and Integrative Medicine, Graduate School of Medicine, The University of Tokyo [2023/1/10]
Signed collaboration agreement with the Graduate School of Human Life Sciences, Osaka Metropolitan University, regarding "Research Promotion in the
Healthcare Field utilizing Medical Big Data" [2023/3/29]
Starting system integration for enhancing sales capabilities through CRM "SMART BankNeo" and business digitalization tool "POWER EGG" for regional
financial institutions [2023/4/3]••[2022/12/22]

Non-financials/others••

Certified as a "Excellent Corporation for Health Management (Large Corporation Category)" for three consecutive years [2023/3/22]
JAST celebrates its 50th anniversary since its foundation [2023/3/26]*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

©2023 Japan System Techniques Co., Ltd.

4

Contents

Ⅰ．FY2023.3 Summary
Ⅱ．Performance Overview
Ⅲ．Forecast for FY2024.3 and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

5

Ⅱ．Performance Overview

１． Consolidated Financial Results (1) Consolidated Statements of Income
2021.32022.32023.3First
half

Second
half

Full
year

First
half

Second
half

Full
year

Net sales

8,042

10,747

18,78910,042

11,357

21,399

Cost of sales

6,267

7,902

14,169

7,323

8,388

15,711Gross profit

1,775

2,845

4,620

2,719

2,969

5,688

22.1

26.5

24.6

27.1

26.1

26.6

26.6

1,752

1,651

3,403

1,726

1,961

3,687

1,924

195

204

399

160

276

436

Operating income

23

1,193

1,216

992

1,008

2,000

Operating margin（％）

0.3

11.1

6.5

9.9

8.9

9.3

Ordinary income

58

1,252

1,310

1,004

1,048

Ordinary income rate
（％）

0.7

11.6

7.0

10.0

Profit attributable tonon-controllinginterests

▲309

887

578

Net income rate（％）

▲3.8

8.3

Comprehensive
income

▲258

1,007

Gross profit rate（％）

Selling, general andadministrative
expensesof which R&D
expenses

First half

Secondhalf

Full year

2023.3 initial forecast
Full year

Percentagechangewith actual+9.9%

22,4006,375+12.0%
+0.5

-

-

-

2,066

3,990

+8.2%

-

-

199

270

469

+7.6%

-

-

1,003

1,382

2,385

+19.3%

2,120+12.5%

10.1

+0.8

9.4

+0.7

2,052

1,037

1,413

2,450

+19.4%

2,160+13.4%

9.2

9.6

9.4

11.2

10.4

+0.8

9.6

+0.8

686

644

1,330

737

1,035

1772

+33.2%

1,370+29.3%

3.1

6.8

5.7

6.2

6.7

8.2

7.5

+1.3

6.1

+1.4

749

706

636

1,342

908

960

1868

+39.2%--

11,004

12,515

2,927

3,448

8,076

9.1

23,519Comparedto theprevious
period

（M¥）

9,067

17,143

27.6

27.1

11

+9.1%

-

+5.0%
-

-

©2023 Japan System Techniques Co., Ltd.

6

Ⅱ．Performance Overview

１ Consolidated Financial Results (2) Consolidated Balance Sheets
2020.32021.3End ofperiodTotal assets
Total current assets
Total property, plant and equipment
Total intangible assets
Total investments and other assets

Total liabilities and net assets
Total liabilities
Total current liabilities
Total non-current liabilities
Total net assets
Total shareholder’s equity
Share capital
Capital surplus
Retained earnings
Treasury shares

Total accumulated othercomprehensive income
Share acquisition rights

Non-controlling interests

2022.3End ofperiodEnd ofperiodEnd of period

12,98812,861

15,539

571

542

546

9,602
794

2,019

9,696
378

2,243

12,389274

2,329

12,98812,861

15,539

5,168

4,388

4,621

6,770

6,011

6,345

1,601

1,623

1,724

6,218

6,850

9,194

1,076

1,076

1,535

6,135
1,113
4,178

6,592
1,128
4,605

8,929
1,703
5,865

▲233

▲218

▲175

53

220

230

-

5

-

28

31

YoY

2023.334

17,413
14,187
631
242
2,352
17,413
6,597
4,703
1,893
10,816
10,451
1,535
1,702
7,389
▲175
316
47

Composition
ratio

100.0%
81.5%
3.6%
1.4%
13.5%
100.0%
37.9%
27.0%
10.9%
62.1%
60.0%
8.8%
9.8%
42.4%
▲1.0%
1.8%
0.3%

Difference（M¥）
Percentagechange+1,874 +12.1%+1,798 +14.5%+85 +15.6%▲32 ▲11.7%
+23
+1.0%
+1,874 +12.1%
+252
+4.0%
+82
+1.8%
+169
+9.8%
+1,622 +17.6%+1,522 +17.0%
+0
+0.0%
▲1
▲0.1%
+1,524 +26.0%+0+0.0%+86 +37.4%+13 +38.2%©2023 Japan System Techniques Co., Ltd.

7

Ⅱ．Performance Overview

１． Consolidated Financial Results (3) Consolidated Cash Flow

Cash flows from operating activities
Cash flows from investing activities
Free cash flow
Cash flows from financing activities
Cash and cash equivalents at the endof period（M¥）

2018.3Full year

2019.3Full year

2020.3Full year

2021.3Full year

2022.3Full year

2023.3Full year

642

1,342

417

2,131

1,162

1,073
▲541
532
▲280

147

▲1,063

▲527

▲110

2,218

1,082

38

1,157

▲185

▲1,247

486

2,785

4,204

3,908

4,853

6,463

789

279

2,000

500
0

6,793
（M¥）

6,463

2,500

1,000

▲80

87

＜Consolidated
Cash Flow＞＜連結キャッシュフロー推移＞

3,000

1,500

（M¥）

4,204

3,908

2,785
789

4,853

6,000
4,800
2,400

1,082

▲110

▲500

7,200

3,600
2,218

279

6,793

532

1,200
0
▲1,200▲1,000▲2,400▲1,500▲3,600

Left-hand scale：
Right-hand scale：2018.32019.32020.3

Cash flows from operating activities
Cash flows from financing activities
Cash and cash equivalents at the end of period

2021.32022.3

Cash flows from investing activities
Free cash flows

2023.3 （FY）

©2023 Japan System Techniques Co., Ltd.

8

Ⅱ．Performance Overview

１． Consolidated Results (4) Sales by Business Segment（M¥）

25,00023,51921,39920,00016,86815,000401

18,01918,789
1,383

977

1,072
1,367

1,419

2,958

3,613

3,912

2,087
1,806
4,784

2,673
2,021
4,480

10,0005,000

012,53011,965

12,073

12,721

2019.32020.32021.32022.3

DX&SI business

Package business

Medical big data businessNote: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).

Global business

14,3352023.3（Full year）©2023 Japan System Techniques Co., Ltd.

9

Ⅱ．Performance Overview

１． Consolidated Results (5) Operating Income by Business Segment

（M¥）

2,385

4,200

2,000

3,600
3,000
2,400

856

1,800

532

17

381

1,216

970

1,196

1,008

1,581
▲20

0
▲600

▲1,255▲1,200▲1,8002019.3

1,273

457

1,529

1,200
600

271

1,250

219

213

49

1,317
▲217

1,559

2,078

▲50

▲1,307▲1,467▲1,519▲1,6712020.32021.32022.32023.3

DX&SI business
Package business
Medical big data business
Global businessNote: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).

Consolidated Eliminations and Corporate SG&A

（Full year）©2023 Japan System Techniques Co., Ltd.

10

Ⅱ．Performance Overview

１． Consolidated Financial Results (6) Consolidated Number of Employees（person）

1,800

1,687

1,600

1,320

1,400
1,200
1,000
800
600

1,111
77

234
80

0

107
587

106

1,164
87

332

247

88

83

418
95

107
206

146

158

187

200

574

589

607

628

669

2022.3Global businessCommon to all

2023.3

400
200

1,448

118

2019.3
DX&SI business2020.3
Package business2021.3
Medical big data businessNote: Figures at the top of the graph are the number of consolidated employees.

（End of FY）©2023 Japan System Techniques Co., Ltd.

11

Ⅱ．Performance Overview

２． Share Price (1) JAST's share price and volume

Prime Market
Conformity with listing maintenance standards（¥）

Stock Split
1 share → 2 shares

2,400
2,100

Transition to
Tokyo Stock Exchange Prime Market

First series of stock acquisition rights
Completed exercise of the rights

1,800
1,500

UK determined
withdrawing from EU

1,200Consumption tax 8％

COVID-19
Consumption tax 10％

1,200
Formation of
Kishida Cabinet

300 The second Abe Cabinet0April-12

April-13

April-14

April-15

April-16

April-17

April-18

JAST stock price (Left-hand scale)
Stock price information (as of June 1, 2023)

Stock
price

¥ 2,219

April-19

April-20

April-21

April-22*Share prices prior to the stock split (effective date: October 1, 2022) are retroactively adjusted.

¥ 153.29

PER

14.48 times

600

April-23

0（Thousands of shares）

JAST production volume (Right-hand scale)

EPS

2,400

COVID-19
Changed to Category 5 Infectious Disease 1,800

900
600

3,000

G7 held in Hiroshima

Determined Osaka World Expo
to be held

4,200
3,600

Second series ofstock acquisition rights
Completed exercise of the rights

Listed on the First Sectionof the Tokyo Stock Exchange

Off-floor trading

4,800

PBR

2.53 times©2023 Japan System Techniques Co., Ltd.

12

Ⅱ．Performance Overview

２． Stock price (2) Correlation between JAST stock price and Nikkei average

Prime Market
Conformity with listing maintenance standards

（¥）

2,400
2,100

1,500

UK determined
withdrawing from EU

1,200
900

COVID-19

Consumption tax 8％

14,000Consumption tax 10％
Formation of
Kishida Cabinet

Apr-13Apr-14

Stock price information (as of June 1, 2023)

Apr-15

Apr-16

Apr-17

JAST stock price (Left-hand scale)
Stock
price

¥2,219EPS*Share prices prior to the stock split (effective date: October 1, 2022) are retroactively adjusted.

Apr-18Apr-19Apr-20

Nikkei Average Stock (Right-hand scale)¥153.29PER

22,000COVID-19
Changed to Category 5 Infectious Disease 18,0003000Apr-1226,000G7 held in Hiroshima

Determined Osaka World Expo
to be held

The second Abe Cabinet

30,000

Second series ofstock acquisition rights
Completed exercise of the rights

Listed on the First Sectionof the Tokyo Stock Exchange

Off-floor trading

34,000Transition to
Tokyo Stock Exchange Prime Market

First series of stock acquisition rights
Completed exercise of the rights

1,800

600

（¥）
38,000Stock Split
1 share → 2 sharesApr-21

14.48 times

Apr-22

PBR

10,000

Apr-236,000

2.53 times©2023 Japan System Techniques Co., Ltd.

13

Ⅱ．Performance Overview

３． Performance by Category (1) Package Business GAKUEN Sales by Category

（M¥）

3,832

4,000

7%

3,500

3,058

3,000

2,500

2,000

2,586
9%

8%
23%

26%
24%

1,500

1,000

500

0

24%
18%
13%
10%
2019.3

16%
11%

3,216
8%

23%

3,615
8%
23%

22%

22%

14%

Content

Operation
service

System operation
support• Recurring revenue model

Purchaseand sales

Purchase and sales of
hardware and third
party’s products• Enhancement of product lineup
through OEM

Individual contracted

22%

16%

Legend

15%
13%

18%

19%

19%

2020.32021.32022.3

Note: Figures at the top of the graph are total sales of GAKUEN business.

EUC
development associateddevelopment• High unit price SE• High profit

Maintenance contracts
Packagemaintenance for packaged products• Stock revenue

with package sales

25%

16%
11%
17%

FeatureImplementation
service

Packagesales

Consulting for package
product implementation• Moves in tandem with package sales
and revenue• Very high unit priceSales of packaged
products• Development investment in advance• Extremely high profitability

2023.3 （Full year）©2023 Japan System Techniques Co., Ltd.

14

Ⅱ．Performance Overview

３． Performance by Category (2) Sales by End user’s Industry（M¥）

25,00023,51921,39920,00016,86815,0007%
3%

22%
10,00015%
26%

18,78918,019

6%
4%

7%
3%

21%

23%
13%

23%

24%

15%

14%

22%

26%

5,000

0

7%
4%

6%
4%

16%
30%

23%

14%

14%

12%

14%

15%

13%

11%

15%

13%

14%

2019.32020.32021.32022.32023.3 （Full year）

Telecommunications

Finance, Insurance, Securities

Service, Distribution

Manufacture

Note: Figures at the top of the graph are consolidated net sales (after consolidation and elimination).

Education Institution

MedicalGovernment and others©2023 Japan System Techniques Co., Ltd.

15

Ⅱ．Performance Overview

３． Performance by Category (3) Sales by Customer Group

Maintain and continue to build on our ultra-long-term customer base while expanding new customer
groups as we diversify our business.
Customer group※(XX years) indicates number of years in business.

2022.32023.3Full year Full year

NTT(28 years)

15.4%

16.9%

Honda Motor(39 years)

5.0%

4.7%

Duskin(34 years)

3.3%

4.4%

Fujitsu(46 years)

6.1%
29.7%

3.6%
29.6%

Above 4 companies

Domestic Prime Transactions

10.7%

14.7%

Universities and other educational institutions

15.2%

10.2%

7.4%

8.6%

Other foreign business transactions

5.2%

7.9%

Sales agent of GAKUEN

3.5%

7.8%

TIS

6.2%

5.8%

Overseas energy-related public companies

4.0%

4.1%

Financial institutions

4.6%

3.6%

Highway-related public companies

1.8%

1.6%

Others

11.6%
100%

6.1%
100%

Health insurance associations, local
governments, other healthcare-relatedcompanies

Total

Others, 6.1%
Highway-related public companies, 1.6%
Foreign energy -related
public companies, 3.6%
Financial institutions,
4.1%

Honda Motor,
4.7%
NTT, 16.9%

TIS, 5.8%

Duskin, 4.4%

GAKUEN Business Agent, 7.8%

Fujitsu, 3.6%

Domestic Prime
Transactions, 14.7%

Universities and other educational
institutions,
Other foreign business transactions, 7.9%
10.2%
Health insurance associations, local goverments, other healthcarerelated companies, 8.6%©2023 Japan System Techniques Co., Ltd.

16

Contents

Ⅰ．FY2023.3 Summary
Ⅱ．Performance Overview
Ⅲ．Forecast for FY2024.3 and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

17

Ⅲ．Forecast for FY2024.3 and latest initiatives

１． Fiscal Year 2024.3 Fiscal Year Policy
Corporate Policy ： Creating new value with JAST's strengths, driven by quick and resolute
thinking and action and co-creation in cross-sectional activities

Pursuing high profits and expansion of scale through "alliances" x “proposal ability and negotiation
ability”

DX & SI business
Package business

GAKUEN

Expanding and growing toward providing a new learning environment through "productenhancement" x "further high profitability”

BankNeo

Expanding market and business performance toward regional DX through "new products" x"collaboration with other companies”

Medical big data business

Expanding "Share" x "Service" x "Alliances" to become a top insurer DX company

Global business

Achieve both growth in business performance and a stronger foundation through "productenrichment“ x "expansion of customer base and geographic regions" x "improvement of governance”

Businessmanagement

Finance・IR

Strengthening our presence in the prime market with an IR strategy directly linked to corporate valueHR

Maximizing engagement and performance by strengthening the systems and skills of eachorganization and promoting health management

R&D

Fostering a challenging corporate culture to boldly take on the challenge of discovering seeds andinvestment activities

Publicity

Maximizing awareness and brand image through company-wide strategic public relations

Sustainability

Promoting "Sustainability Management” for the Betterment of “All Four Sectors" rooted in the next
generation JAST Group Image©2023 Japan System Techniques Co., Ltd.

18

Ⅲ．Forecast for FY2024.3 and latest initiatives

２． Forecast of Business Performance (1) Earnings Forecasts
Aiming for 13th consecutive year of sales growth and 9th consecutive yearof ordinary income growth2022.3Results

Net sales（M¥）

Operatingincome（M¥）

Ordinary
income（M¥）

Net income（M¥）

2023.3

Sales ratio

Results2024.3

Sales ratio

Forecast

YoY

Sales ratio

Increase/decrease

Percentagechange21,399 100.0%

23,519 100.0%

25,300 100.0%

1,781 +7.6%

2,000

9.3%

2,385

10.1%

2,540

10.0%

155 +6.5%

2,052

9.6%

2,450

10.4%

2,600

10.3%

150 +6.1%

1,330

6.2%

1,772

7.5%

1,880

7.4%

108 +6.1%©2023 Japan System Techniques Co., Ltd.

19

Ⅲ．Forecast for FY2024.3 and latest initiatives

２． Forecast of Business Performance (2) Sales and Order Backlog
Business/ Period

2019.9DX&SI business

Package businessTotal order backlog

4,500

2020.92021.32021.92022.32022.9

2,622

2,937

3,099

2,766

3,121

3,857

4,138

549

532

782

692

900

727

1,095

1,251

Medical big data business（M¥）

2020.3
1,349

4,423

4,818

2,764

6,645

2,301

2,423

5,760

<Order backlog by business segment>

6,446

（M¥）

4,000

14,0003,500

12,0003,000

10,000

2,500

1,902

6,486

2,521

7,754

2023.3

4,098
2,187
814
7,099

（M¥）
Percentagechange from2022.3+6.2%+15.0%+12.0%+9.5%<Total order backlog and sales for thefollowing two quarters>

8,000

2,000

6,000

1,500

4,000

1,000
500

2,000

0

0

2019.92020.3

DX&SI business2020.92021.32021.9Package business2022.32022.92023.3（FY）

Medical big data business*Global business is omitted due to the short-term nature of the remaining order period.

2019.9 2020.3 2020.9 2021.3 2021.9 2022.3 2022.9 2023.3 （FY)
Total order backlog

Sales for the following two quarters©2023 Japan System Techniques Co., Ltd.

20

Ⅲ．Forecast for FY2024.3 and latest initiatives

２． Forecast of Business Performance (3) Research and Development Expenses
Investing actively in technological development and joint research in addition to productdevelopment
Continuing R&D on a wide range of topics（M¥）

DX & SI business
Packagebusiness
Medical big databusiness2022.3Full year

2023.3Full year

98

108

145

179

81

73

Others110

107

R&D Total

436

469

2024.3Full Year
Forecast*The arrow angle in the full-year forecast for FY2024 is an image of the percentage increase/decrease.

＜R&D Themes＞
DX & SI business- Strengthening Mega Solutions- JAST branding of SI business

GAKUEN- RX Product Enhancement- Related Solution Expansion- New services Expanded for graduates- New product development for university
students

BankNeo
Medical big data business- Product Development for Medical
Institutions- iBss Function Expansion- RPA Product Development- Sales Support System Development- SMART BankNeo Function expansion- product enhancementNew service
development (AI NLP, co-creation withcustomers)- New product development for large banks

Others- New productdevelopment- New technology
research- Joint research with industrial,academic and public sector industrial
and academic officials- Commercial product development
through co-creation DX©2023 Japan System Techniques Co., Ltd.

21

Ⅲ．Forecast for FY2024.3 and latest initiatives

３． Corporate Value (1) Policy for increasing market capitalization
The following plan released in November 2021 aimed for maintaining prime listing is
progressing one year ahead of schedule.

DemandEPS
improvement

Performance growth- Net sales : ¥30.0 billion- Ordinary profit : ¥3.0 billion※Medium-term plan for the fiscal year ending March 31, 2026

Stock price evaluation index

PER
improvement- Dividend policy- Strengthening IR activities- Branding strategy (PR activities)

SupplyExpansionof market capitalizationof tradable shares

Market supply of our shares- Increase the supply of tradable
sharesIncrease in
the ratio of tradable shares

Excerpt from "Plan for Compliance with Listing Maintenance Criteria for New Market Classifications," released November 24, 2021.

©2023 Japan System Techniques Co., Ltd.

22

Ⅲ．Forecast for FY2024.3 and latest initiatives

３． Corporate Value (2) Progress Toward Compliance with Prime Market Standards
＜EPS＞

（¥）

160

112.32

120
80

53.98

0

2021.3End of FY

20
15

66.03
2022.3End of FY

68.22
2023.3End of FY＜PER＞（Times）

18.00

14.08

10

200

16.00
14.00
11.88

223

184

158
85

100

115

50
0

2021.3End of FY

136

2022.3End of FY

12.46(100M¥)

120
100

80
60
40

109

110

81
46

67

Reached planned market capitalization
one year ahead of schedule
Meets prime criteria

2023.3End of FY＜ Total market capitalization of tradable shares ＞

5
0

250
150

82.28

40

144.50（100M¥）＜Market capitalization＞

80

Market capitalization of 4050 billion yen

Aiming to further increase our presencein the prime market

20
2021.3End of FY

2022.3End of FY

2023.3End of FY

Track record
Initial plan (at the time of plan submission)
Targeted value to achieve the standard

02021.3End of FY

2022.3End of FY

2023.3End of FY

Track record
Initial plan (at the time of plan submission)
Targeted value to achieve the standard©2023 Japan System Techniques Co., Ltd.

23

Ⅲ．Forecast for FY2024.3 and latest initiatives

３． Corporate Value (3) Initiatives to Improve PER
Corporate value base: Growth in EPS and ROE through earnings expansion＋ Strengthening relationships with investors through various measures
Strengthening information dissemination to individual
and institutional investors•••

1-on-1 meetings with domestic and international institutional
investors
Exposure to IR media (TV, magazines)
Briefings for individual investors

Strengthening branding as a DX provider••••

Launching of DX Image
Website revision
Focus on DX business by changing reporting segment
Strengthen press releases⇒ Increased awareness through increased contact
and exposure opportunities⇒ Maximize business activities and strengthen branding
Aiming to increase positive perception among individual
and institutional investors

IR Globalization

Improvement of liquidity of stock transactions andactivation of trading•••

Enhancement of various English disclosures⇒・Financial statements ・Press releases
・Financial Results Briefing Materials ・Website••⇒ Strengthening the approach to foreign institutional investors,
whose influence on Japanese equities is increasing

Future Priority Initiatives

•
•
•
•

Stock split
Dividend policy in line with profit growth⇒ Stimulate market trading by improving
the attractiveness of JAST stock

Strengthening shareholder return policies, including dividend policy
Converting non-tradable shares into tradable shares
Expanding public recognition by further strengthening public relations
Strengthening communication of sustainability-related information©2023 Japan System Techniques Co., Ltd.

24

Ⅲ．Forecast for FY2024.3 and latest initiatives

３． Corporate Value (4) Perceptions Regarding Enhancement of Corporate ValuePBR is stably expanding at over 1.0

Continuing to rise further through equity spread* conscious management＜PBR＞（Times）

2.5

20.0

2.05
2.0

1.71

1.5

15.0

5.0

0.88

0.0

0.65

9.74

5.92
5.43
4.43
3.85

Continuing to
generate ROE in
excess of cost ofshareholders' equity
and growing as a highP/B ratio company

5.05

2023.32022.32021.32020.32019.32018.32017.32016.3ROE

2015.32014.32013.32023.32022.32021.32020.32019.32018.3

1.0 Boundaries（End of FY）

Positive/negative ofequity spread are
liked to PBR

8.90

7.41

▲0.49
2017.32016.32015.32014.3

PBR

16.66

10.0

-5.0
2013.30.5

0.69 0.69

0.81

0.9

17.78

1.2

1.12 1.17
1.0

＜ROE＞

（％）

（End of FY）※2
株主資本コスト（4.98～6.04）
Cost of equity (4.71-5.85)*Equity Spread: Calculated as ROE - Cost of Equity, a positive value indicates the creation of shareholder value.
*Cost of Equity: Risk-free Rate + β (sensitivity) × Equity Risk Premium.
The risk-free rate is based on the 10-year government bond yield as of March 31, 2023 (0.322%), and the Equity Risk Premium is derived from historical risk premium data over the past 50 years (5.45%) sourced from SPEEDA.
The β value is adjusted using past data of stock prices (including dividends) and TOPIX (including dividends) with the following formula: Adjusted β = 2/3 × β + 1 × 1/3. The upper and lower bounds are calculated based on the data forthe past 15 years, 10 years, and 5 years.

©2023 Japan System Techniques Co., Ltd.

25

Ⅲ．Forecast for FY2024.3 and latest initiatives

３．Corporate Value（５） Continuous Improvement of ROIC

Profit growth rate exceeded the rate of expansion of invested capital and improved by about 12
points in 10 fiscal years
EVA Spread* remained positive(%)
18＜ROIC＞

16

16.54

17.08

10,036

1,200
11.1

12
10

8.7

8

9.37

8.25

6.32

8,000

4,000
2,000
2023.32022.32021.32020.32019.32018.32017.32016.32

10,000600 4,792
240
300
2015.35.01

12,000

6,000

0

4.29

(M¥)

900

2014.3

6

0

NOPAT(Left-hand scale）
Invested capital (average for period) (Right-hand scale)3

2014.3 end - 2023.3 end CAGR（10 fiscal year）
2023.32022.32021.32020.3

ROIC (Invested capital)

2019.32018.32017.32016.32015.32014.3

0

1,713

1,500

14

4

(M¥) ＜NOPAT・Invested capital＞
1,800※
WACC（4.58～6.09）

NOPAT

24.4％

Invested capital(average for period)

8.6％*Equity Spread: ROIC (invested capital) minus WACC. If this value is positive, the company is creating economic value in excess of the cost required by shareholders and creditors (WACC).
*WACC: Calculated as follows.
Interest-bearing debt / (market capitalization less treasury stock + interest-bearing debt) x (1 - effective tax rate) x cost of debt* + market capitalization less treasury stock / (market capitalization less treasury stock) + interest-bearingdebt) x cost of equity*Debt cost is the median of several listed companies with the same level of equity capital and equity ratio.
©2023 Japan System Techniques Co., Ltd. 26

Ⅲ．Forecast for FY2024.3 and latest initiatives

３．Corporate Value（６） Shareholder Returns

（¥）

190

YoY

Increase/
Decrease

PercentagechangeFY2024.3
Plan

Dividends per share

（¥）

20

32

+12 +60.0％

40Year-end dividend
yield

（％）

1.6

1.8

+0.2

-

－

Number ofshareholders at endof period（person）

2,699

2,572

▲127 ▲4.7％－

Market capitalization
at end of period（M¥）

15,83322,353 +6,520 +42.3%－（％）＜Dividend payout ratio and net income per share＞

57

46

45
32

90

▲ 10

FY2023.3
Result※The figures for the fiscal year ended March 31 represent the full-year performance figures, respectively.
※Amounts are rounded down to the nearest million yen.

140

40

FY2022.3
Result21.8

27.8

2015.32016.3

39.1

25
55.2

144.5
26
54.0

30.3

112.3
18

22

2018.3

Net income per share (Left-hand scale)2019.32020.32021.3

45

26

30
15

▲2.9
2017.3153.2

602022.3

Dividend payout ratio (Right-hand scale)2023.302024.3(forecast)（End of fiscal year）©2023 Japan System Techniques Co., Ltd.

27

Contents

Ⅰ．FY2023.3 Summary
Ⅱ．Performance Overview
Ⅲ．Forecast for FY2024.3 and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

28

Ⅳ．Long-term growth strategy

１． JAST Style of DX Concept

Creating a cyclical structure for business development, productivity improvement, andmarket value enhancement by fully utilizing DX promotion activities in the core businessand business management.
New Normal society

Capital market- SDGs/TCFD/ESG- Changing attitudes about thevalue of the company

Industrial circle- The Cliffs of 2025
- Japan Digital Agency- Development of related laws

DXification of society and life

- Working innovation- Change in values- 5G/6G, Society 5.0

CorebusinessDX- DX & SI business：Co-creation DX- GAKUEN business：Educational DX- BankNeo business：Financial DX- Medical big data business：Medical DX- New/Derivative business：Office DX etc

Internal use

Commercialization

Businessmanagement
DX- Health Management through datautilization- Office DX and Workstyle Development
leading New Normal

Market value
CI- Stable foothold in the TSE prime market- From SI’er to “Launch the Future” DX’er- Sustainability initiatives©2023 Japan System Techniques Co., Ltd.

29

Ⅳ．Long-term growth strategy

２． Core Business DX (1) DX & SI Business Strategy Overview
Redefining the business portfolio, maintaining and expanding a stable
growth base and promote high value-added businesses
Sales composition

Service- Data collection, utilization and analysis support- Provided one-stop service from infrastructure
construction to operation and maintenance withcloud computing

High value-added

40%

12%

Solution48%- Launching new businesses- Building large scale businesses with high grossprofit margin- Developing mega solution businesses such as
SAP/SFDC

Stable growth platform

SI

Targets for the FY2026.3
23%
7%
70%
FY2022.3- Maintaining and expanding SI (System
Integration) business with existing customers
as the primary revenue base- Building a framework for SI projects that canbe driven by a minimal number of senior SEs(Systems Engineers)- Creating new branded products

Accompanying
Customer DX- Providing consulting services
for planning and promotion- Building a business ecosystem

JAST Brandingof SI business
Branding development
methods and frameworks
cultivated over 50 years as the
JAST Method to add value andenhance market
competitiveness©2023 Japan System Techniques Co., Ltd.

30

Ⅳ．Long-term growth strategy

２．Core Business DX（２）Package Business：GAKUEN Strategy Overview
Expanding target markets with new services based on the foundation as a top brand×２times
TAM

Subscription

GAKUEN

IoT

×Consultation

AI

CashlessOEMequipment

Stable performance growththrough expansion of current business using DX technology

×７times（ JAST Brand Cross-sector Solutions ）JAST-X-Tech

Life-long learning

Platform business

Marketing support

Data utilization business

Education

Expanding alliance

Publishing and Media

Expanding business domain（Graduates, Business persons, Primary and secondary education)

Formation of the foundation
for the next generation of GAKUEN through new business

Local Services
Expanding beyond IT to other services©2023 Japan System Techniques Co., Ltd.

31

Ⅳ．Long-term growth strategy

２． Core Business DX（3）Package Business：BankNeo Strategy Overview
Releasing continuously new solutions based on the concept of Smart/Niche/Cloud
Expanding target market with our unique products to become a financial DXer that
contributes to local communities

×５times

TAM

Front
compliance

Competitive
price

TQSM
Navi
E-formIntroducing to
all domestic
financial institutions

Continuous
Solution Creation

Easy
installationHigh
scalability

×７times

CRM
SFA

Cloud
BankNeomanagement system

Revitalizing the industry
and the region
through financial DX

CRM-basedbusiness expansion

Number of banks

30（FY） 2018.3

34

46

50

53

58

2019.32020.32021.32022.32023.3- Expanding sales channels
through collaboration- Expanding SMART
BankNeo functions and sales- Strengthening non-face-toface channels andadministrative efficiency
functions2026.3- Encouraging Financial Institutions to Move to the Cloud- Tie-up with existing users to plan new products- Supporting business transformation of banks in line with
regional characteristics/issues by introducing sales support
and CRM and utilizing data
©2023 Japan System Techniques Co., Ltd.

32

Ⅳ．Long-term growth strategy

２． Core Business DX（4）Medical Big Data Business Strategy Overview
Leveraging an unparalleled receipt processing volume and insurer platform
Becoming a top player in insurer DX
JMICS

Automatic receipt
inspection system-Completion of inspection
model for all insureds- Strengthening data analysis
and health project consulting

Top in Japan

Data Provider

×

iBss

Insurer operations
BPR/BPO System- Expanding product lineup- Expansion of recognition and numberof users- Platformization

Top in Japan

Insurer Platform

To the top playersof Insurer DX

Data utilization
business model building

New services・Market expansion

M&A/ Alliances

Evolving into a comprehensive
medical DX service- Health management- Pharmaceutical industry/ Healthcare- D2C Business etc.
©2023 Japan System Techniques Co., Ltd.

33

Ⅳ．Long-term growth strategy

２． Core Business DX （5） Medical Big Data Business Mid-term Business Expansion
Initial～Present
Net Sales Image

Mid-term Growth Theme

Mid
term

New Business
M&A

Number of iBss users exceeds
70 health insurers. Accelerating
business expansion as aninsurer platform.

Other

Started Life Innovation Lab(Current name: Future CoCreation Lab) toward expanding
data utilization

iBss

Data Utilization

Non-inspection sales
using medical data exceed
receipt inspections

Accelerate business expansion by creatingsynergies between existing & upcoming services
 Expansion of data base (quantity, quality, scope) Expansion of data-driven services (wearable tools, PHR, etc.)
 Increase human resources and expertise

Establishment of insurer platform Deepen the differentiation point of System & BPO
 Expand services to adjacent markets by enhancing web functions forsubscribers

Expanding data coverage and revenue basethrough alliances Expansion of alliances with data providers
 Expansion of data range for new RWD business

Expansion of JMICS
offerings receipt:
inspection with processing
volume up to 10 million
cases/month

Data HealthExpansion of human resources x
De-personalization through AI

 Capturing commercial opportunities in the 3rd Data Health Plan Expansion of organizational scale to accelerate subsequent growth x
increased efficiency through AI

Receipt inspection

Completion of inspection business through fully
automated JMICS applicable to all types of insurer Becoming market-leading data holders and the top provider ofreceipt data

FY2010.3

FY2023.3©2023 Japan System Techniques Co., Ltd.

34

Ⅳ．Long-term growth strategy

２．Core Business DX（６） Future Co-Creation Lab （JAST Lab）

Utilizing the data as assets, we aim to contribute to society through collaborative researchwith academia and other partners, and to discover business opportunities through thedevelopment of new products with other companies Services
１）Medical Data PROVISION：MDP

DX activities and a package for promoting DX using medical big data

MDP

 Collaborative research partners[Commencing from the second half of FY2023.3]
The Graduate School of Human Life Sciences,
Osaka Metropolitan University [2023.3.29]
Center for Disease Biology and Integrative Medicine, Graduate School of Medicine,
The University of Tokyo
Research Associate Hiroyuki Okada [2023.1.5]

Medical big data

＋There are 10 ongoing collaborative research projects

 Output [From the second half of FY3.2023]“Cabinet Secretariat COVID-19 AI・Simulation project” [2023.1.5]

Secure research environment

Lab room

Data analysis and proposal

JAST data advisor

２）REZULT

User-intuitive dataset leveraging JAST's medical big data
Patient countOver 8 million people

Number of receipt

Over 3.9 billion claims  Anonymization processing Statistical processing

TV Asahi “Oshita Yoko WIDE! SCRAMBLE” [2023.01.16]
At DEIM2023, Seki, Y. Laboratory, University of Tsukubapresented a research paper [2023.03.16]
Started offering free access to dashboards
on Tableau Public, JAST Lab HP[2023.4.13]

 Data recipients [As of 2023.6.9]
Japan Alternative Data Accelerator
Association

Cabinet Secretariat COVID-19
AI・Simulation project

National Institute of Informatics
Informatics Research Data Repository(IDR)

AWS Data Exchange/
AWS Marketplace©2023 Japan System Techniques Co., Ltd.

35

Ⅳ．Long-term growth strategy

２．Core Business DX（7）Global Business

Establishing a base in India, a rapidly growing market in the pursuit of a digital transformation
Expanding SAP business to ASEAN + South Asia and Middle East to accelerate global growth
HRM

ThailandNEW
Malaysia

India

Singapore

JASTEC(THAILAND) CO., LTD.
JAST Asia Pacific CO., LTD.
Bright & Better Co., Ltd. NEW
Virtual Calibre Group

PMS

*3

GLOVIA smart
PRONES

Domestic Business in ChinaSI
Development

ASEAN
Merchandise
Collaboration

New product development/sales
through alliances*4

Strengthening wide-area deployment of solutions andbusiness expansion / Creation of new businesses*1

Enhancing function
to total HRM solution

AG NET PTE. LTD.
GuiLin Anxin Software Co., Ltd.

China

ERP/ACCOUNTING

VAR business development andfurther strengthening
global procurement capabilities＜ Global Business Sales Change＞（100M¥）

30

20.8

24
18
12
6
0

1.3

1.4

1.6

2016.32017.32018.3*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

4.0
2019.3

10.7

2020.326.7

13.8

2021.32022.32023.3©2023 Japan System Techniques Co., Ltd.

36

Ⅳ．Long-term growth strategy

２．Core Business DX（8）M&A/ Strategy for Group Expansion

Creating
new domestic markets with “JAST IT” for same industry/other industries
350
Continuing domestic and overseas M&A with an eye on expanding products andarea and creating synergies

Organic growthof existing businesses andextra revenue from M&A

300

250

200

(M&A)
Alpha Computer Co., Ltd.
[ICT Infrastructure]

JAST Techniques
JASTEC Thailand(M&A)
Virtual Calibre
[SAP]

(M&A)
NewNeeds Co., Ltd.
GuiLin Anxin Software Co., Ltd.
[SI, Offshore, Expanding in China](M&A)
AG NET[AGHRM]

Mid-termmanagement
plan

(M&A)
ISR Co., Ltd.
[IBM i-RPG]

Forecast

150

100

50

0

(100M¥）

2006.32007.32008.32009.3

JAST None-consolidated net sales

2010.32011.32012.32013.3

Consolidated net sales

2014.32015.32016.32017.3

Appearing Quantum leap

2018.32019.32020.32021.32022.32023.32024.32025.32026.3※ Consolidation adjustments are deducted from group company sales （Full year）©2023 Japan System Techniques Co., Ltd.

37

Ⅳ．Long-term growth strategy

２．Core Business DX（9）Adapting to New Areas and Alliance Strategy
Targeted new areas are multifaceted.

Aggressive R&D and alliance strategies will accelerate the creation of the next growth driver
Big data
Data science

DX & SI business Expansion of data science
projects
 「BankNeo for CRM/SFA」

BankNeo（Package business）

GAKUEN（Package business）

Medical big databusiness
Global business・Alliance
・New businesscreation through inhouse ventures

 Management Decision Support
(BI)
 IR
Big Data in Education
 Expansion of monthly receipts
processed
 Expansion of data utilization
services Medical Big Data Services“REZULT”

NewNormalDX E-commerce site  SAP*1
construction
 mieHR（HRM）

 MaaS data platform Web service “iBss”
 Predictive model for severe
disease
BtoBtoC products Office DX －Facial recognition－

Current business areas and measures*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

Cloud Expanding application in SI
development
 SAP*1
 “SMART BankNeo”

Application to Package Functions
 Package function AI

 GAKUEN Subscription

Applying additions to the package
 Academia collaboration
 Cloud version receipt
 AI health management systeminspection
AI for receipt processing

 mcframe*3

New Service for Generation Z
Students※Package business

AI、Biometric identification、VR Office Cashless payment

 Cloud E-form
BankNeomanagement
system Sales Productivity Improvement
SupportNon-personal/ Office efficiency
enhancements Smartphone app
 On-campus electronic E-learningmoney
 Linkage with Textbook
Blockchain Utilization
Selection DB

 SAP*1
 Co-Creation DX Service "MDP”
 Industry-academia-government
collaboration*Future Co-Creation Lab

Blockchain
Fintech AGHRM

 SAP*1

Business Applications of Natural
Language Processing*DX&SI business

JAST brand

Areas under planning/development©2023 Japan System Techniques Co., Ltd.

38

Ⅳ．Long-term growth strategy

２．Core Business DX（10） Activities to Enhance Human Capital
Health Management Promotion

Excellent Health Management
Corporation（Large corporate division）

Enhancement of health education① Group Education Training

Certified for② Health Events

3 consecutive years

Eliminating Long Working Hours
JAST's Unique Labor Policy”Kaeru! JAST”

Promoting stress checkexaminations

90

Continuation of% or higher
inspection rate

(93.2% of the full-year results for FY2023.3)

Attendance Data Analysis

Pick up & follow up
persons at high risk ofphysical and mental healthDX Human Resource Development

SAP*1 Number ofqualified employee
Total Qualifications ２０９
Qualified persons ８２persons- Health Management Training- Woman’s Activity Support Forum- “Walking Events”- “Stretching for Functional Improvement”- “Smoking Cessation Events”③ Personal interviews(As of April 30, 2023)”JCPL”
Beginner５２８persons
Intermediate１０５persons

In-house certifications

with industrial physicians
and public health nurses

Regular health checkups
Promotion of medical checkups(2010.3～2023.3 Cumulative number of certified recipients)

１００％② Percentage of re-examination
Continuing efforts toward

１００％（Re-examination rate: 84.6% for the full year of FY2023.3）

１４３courses(2023.3 Full year results, number of days held)

DX related external
e-learning course campaign

１０categories
１９courses(Full year results for FY2023.3)

JCPL：The abbreviation for JAST Certified Project Leader.
In-house independent certification in JAST-style project management

Advancing workstyle reform

Average annual recuperation time

① Periodic health checkup rate
Continuing

DX Human Resource
Development Group Training
１０categories

Acquisition rate６６.３％

Number of days１０.８days(Full year results for FY2023.3)

Recipients of parental leave
２８personsMale７persons(Full year results for FY2023.3)*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

Average overtime hours(Average monthly overtime hours)

１７.６hours(Full year results for FY2023.3)

Reduced working hours aftermaternity/paternity leave

９yearsMaximum of(１.５times the legal requirement)©2023 Japan System Techniques Co., Ltd.

39

Ⅳ．Long-term growth strategy

３．Efforts Towards Sustainability（１）Overall Policy

Appealing to various stakeholders through appropriate disclosure ofcorporate activities aimed at sustainable growthAppealing to
Sustainable Development Goals

ＳＤＧｓ

Stakeholders

Related elements

Goals (Targets)
when building a business model

Disclosure of climate-related financial
information by companies as adecision-making tool for investors

Society in general
General consumers

IR

Employeeengagement

Task Force on Climate-related
Financial Disclosures

Corporate Social
Responsibility

ＣＳＲ

Sustainability

Sustainability ofsociety and businesses

Specific activities
including non-business-related volunteer work, etc.

Appealing toEnvironment / Social/ Governance

E

S

G

How to manage
while maintaining sustainability

IR

Investors
Financial institute©2023 Japan System Techniques Co., Ltd.

40

Ⅳ．Long-term growth strategy

３． Sustainability Initiatives（２） SDGs Initiatives （Main Activities）
Key issue

Industry and ICT innovation

Support for learning activities
using ICTBusiness field
General business

GAKUEN

Contents

Making society a better place by creating and providing new types of IT services
Supporting the structural transformation of industry with ICT
Contributing to co-creation and cooperative system establishment and ecosystemtransformation
Working in solidarity with Group and partner companies








Providing a comprehensive solution in building the future of universities
ICT-driven, high-quality classroom support and technology-based education
Facilitating improved educational quality through the use of educational big data
Realization of recurrent education (lifelong learning) environments
AI and IoT research development aimed at the digitalization of education
Providing new services for Generation ZUsing medical big data to contribute to health care cost optimization for insurers
and promotion of the health of the insured
Joint research efforts with academia and others to help find solutions to address
disease, including infectious diseases, and medical challenges
Open-sourcing medical big dataOptimization of medical costs
and contribution to healthpromotion

Medical big databusiness

Improving the efficiency offinancial operations with an
integrated information
system package

BankNeoContributing to society via information systems integration package businessaimed at financial institutions

Contribute to corporatetransformation by promoting
digitalization

DX＆SI businessCashless service for employee cafeterias and offices“mieHR” human resources data platform
Office DX -Facial recognition-based attendance recording-*Excerpt from our corporate website section "Initiatives for SDGs"

SDGs theme©2023 Japan System Techniques Co., Ltd.

41

Ⅳ．Long-term growth strategy

３．Sustainability Initiatives（３） SDGs Initiatives（Business Management）
Key issue

Business field

Initiatives for healthmanagement

Healthmanagement

Providing opportunities
for learning

Training andeducation

Diversity initiatives

Recruitment andtreatment

Reduction ofenvironmental impact

General business
management*Excerpt from our corporate website section "Initiatives for SDGs"

Contents

Health management promotion
Promotion of regular health examinations and multiphasic health screenings
Elimination of long working hours
Communication promotion initiatives (e.g., events)
Physical and mental health promotion

A robust in-house training system (e.g., in-house professional certification
programs)
Internships (providing students with systems engineering work experience)
Supporting education and learning through systems development









SDGs theme

Hiring and fair treatment without consideration of race, nationality, gender,etc.
A variety of in-house systems for supporting a variety of work styles
Contract with “Work Happiness Farm” run by S-POOL Plus Inc.
Initiatives to promote paperless offices via DX promotion
Initiatives to address environmental issues in our offices, data centers andelsewhere©2023 Japan System Techniques Co., Ltd.

42

Contents

Ⅰ．FY2023.3 Summary
Ⅱ．Performance Overview
Ⅲ．Forecast for FY2024.3 and latest initiatives
Ⅳ．Long-term growth strategy
Ⅴ．Appendix©2023 Japan System Techniques Co., Ltd.

43

Ⅴ．Appendix

１．Company Information
Company name

Japan System Techniques Co., Ltd. (JAST）

Listed Market

Tokyo Stock Exchange Prime Market（Stock code: 4323）

FoundedMarch 26, 1973

Capital1,535 million yen（as of March 31, 2023）
Osaka Head Office

Location

Business
Segment

1.
2.
3.
4.

DX & SI business
Package business
Medical big data business
Global business

Qualifications

•
•
•
•
•
•

Privacy Mark Certification
ISO9001 registered company
ISO14001 registered company
ISO27001 registered company
ISO20000 registered company*
Excellent Health Management
Corporation 2023

2-3-18 Nakanoshima, Kita-ku, Osaka-shi, Osaka（Nakanoshima Festival Tower 29F）

Tokyo Head Office

2-16-2 Konan, Minato-ku, Tokyo（Taiyo Seimei Shinagawa Building 27F）
Representative

Takeaki Hirabayashi, President and CEO

Employees

Consolidated：1,687（as of March 31, 2023）

Business
Affiliation

Completely independent

Office Locations

New employees effective April 1, 2023 (Consolidated)：117

Certification
mark

Tokyo, Osaka, Singapore, Thailand, Malaysia, India and China※ Registered with our Healthcare Innovation Division©2023 Japan System Techniques Co., Ltd.

44

Ⅴ．Appendix

２．Group Companies
GuiLin Anxin Software Co., Ltd.

★ Guilin, China★Offshore development ★Sales base in China

Shanghai Jiafeng Information
Technology Co., Ltd.

★ Shanghai, China★Development and product sales base in China

JASTEC(THAILAND) CO., LTD.

★ Thailand, Bangkok★IT service for local Japanese companies

JAST Asia Pacific CO., LTD.

★ Thailand, Bangkok★Deployment of JAST brand service in ASEAN★

Bright & Better Co., Ltd.

Thailand, Bangkok★Consultation of implementing integrated software
package
Software Contract Development

Virtual Calibre Group（4 companies）★ Kuala Lumpur, Malaysia

Chennai, India★Deployment of SAP business

AG NET PTE. LTD.

★ Singapore★Deployment of HRM businessOsaka Head Office

Tokyo Head OfficeOsaka Head Office

Festival Tower 28-29F,★ Nakanoshima
2-3-18 Nakanoshima, Kita-ku, Osaka-shi,
Osaka

NewNeeds Co., Ltd.

★ Osaka★Local based IT service

Tokyo Head Office★ Taiyo Seimei Shinagawa Building 5F, 26F, 27F,
2-16-2 Konan, Minato-ku, Tokyo

Alpha Computer Co., Ltd.

★ Shinagawa-ku, Tokyo★ Multi-vendor IT infrastructure design

ISR Co., Ltd.

Tokyo
★ Chiyoda-ku,★ Contract development, package development
and sales©2023 Japan System Techniques Co., Ltd.

45

Ⅴ．Appendix

2020

３．History- Launched “iBss” service- Launched “mieHR”- Launched “GAKUEN
Subscription”- Launched “GAKUEN RX”

IT bubble
burst

2022

- Announced transition to
Tokyo Stock Exchange Prime market- Established Bright & Better

2017

TohokuEarthquake

2003－ Listed on the First Section of theTokyo stock Exchange

2012-Acquired three companies

2006

１５０

- 50th anniversary of the foundation- Certified as a "DX Certified Business Operator”- Conformed to TSE Prime Market listing
maintenance standards- Virtual Calibre Consulting
India Pvt. Ltd. to be subsidiary company- Launched “SMART BankNeo”

Economic downturn
precipitated by the
Lehman Brothers
bankruptcy

Net sales（100M¥）
２００

2023

2021

- Acquired shares of
Alpha Computer Co., Ltd.

NewNeeds Co., Ltd.
SafeNeeds Co., Ltd.
GuiLin Anxin Software Co., Ltd.

- Listed on the Second Section of
the Tokyo Stock Exchange

１００

2001

Economic
bubbleburst- Listed on JASDAQ market- Launched “UNIVERSAL PASSPORT”- Acquired shares of JASTEC (THAILAND)

1973- Founded1982- Launched “GAKUEN”- Launched “JMICS” service

Russianinvasionof Ukraine- Acquired shares of
Shanghai Jiafeng Information Technology Co., Ltd.

United Kingdom
decided to leave EU

2018- Launched “UNIVERSAL PASSPORT RX”- Established JAST Asia Pacific- Acquired shares of Virtual Calibre

2019• Established JAST TECHNIQUES

1973～- Acquired shares of ISR
Co., Ltd.

- Launched “BankNeo”

2010

1994

５０

COVID-19

2015

2011

2000

2016

- Acquired shares of AG NET

2000～

2010～

2015～

2020～
©2023 Japan System Techniques Co., Ltd.

46

Ⅴ．Appendix

４．Business（１）List of Businesses
DX＆SI business

Package business

Medical big data business

Global businessContracted Development
Development Support
Solution development and implementation

In-house packaged solutions
Development and Sales

Global DX business with a focus
on the Asia-Pacific region

Taking advantage of our strength as a completely
independent company, we provide a wide variety
of information systems and services across awide range of fields

Providing development and sales of our own
branded products, along with implementation
consulting services. Additionally, we offer related
services such as environment setup and systemdevelopment

Inspection and analysis of
medical information data andrelated services◆SI

Providing system development services toa wide range of industries and businessdomains◆Solution

Development, collaboration,
implementation, analysis, and related
system development of in-house solutions
and cooperative solutions◆Service

From consultation and data science tocloud infrastructure construction,
operation and maintenance, and data
analysis and utilization, we provide
comprehensive services to support theneeds<JAST brand product>
・HR data platform

・In-house Cashless service
・Office DX-Face recognition attendance system-◆GAKUEN

Providing development, sales, andimplementation and consulting services
for the "GAKUEN series," acomprehensive package system foruniversities. With a top market share in
Japan (adopted by over 400 universities
and junior colleges nationwide), oursystem is tailored to meet the specificneeds of educational institutions.

Providing a one-stop service by offering multiple
healthcare businesses and promoting theutilization of medical data and insurance
business reforms◆Receipt automatic inspection
system◆Countries
Malaysia

India

Thailand◆Insurer Business Support Services◆Receipt Management for Public
Assistance System*5◆BankNeo

Providing development, sales, andimplementation for the "BankNeo"
package solution for financial institutions.
In 2021, it was adopted by major banks,
and we currently have a total of 58
financial institutions using the system.

We have group companies in five countries
overseas and provide services such as
development, sales, and implementation
consulting of ERP and HRM products, as well as
system development◆Data health business◆Data utilization*Trademarks of other companies' solutions are listed under "Trademarks" at the end of this document.

Singapore

China◆Business

・SAP* implementation consulting andrelated services(in Malaysia and India)
・ERP implementation and related services(in Thailand)・Cloud-based HRM solution
Developing “AGHRM®” (in Singapore)

・Offshore development (in Guilin, China)©2023 Japan System Techniques Co., Ltd.

47

Ⅴ．Appendix

４．Business（２）JAST Brand：GAKUEN

Top brand with more than 437 schools installed
An integrated platform that comprehensively supports the activities ofhigher education institutions.
SchoolAffairs

UNIVERSALPASSPORT
Portal system

Providing comprehensive services
using integrated campus data
to students/faculty/staff

Centralized
data management

Portfolio- Learning portfolio- My step- Course record

Providinginformation- Portal- Smartphone app- WEB application

Smartphone

Subscription

GAKUEN
Core back-office system- School affairs- Classroom- Syllabus batch printing- Syllabus disclosure

Centralized management of student information
From admission to graduation and contributing toManagement strategy formulation and business improvement

Entrance
examination- Employment- Student- E-money- Point management

Education
support- Class- Teacher’s tablet
E-learning- Attendance management
ーSmartphone
attendance/
IC attendance coordination

Schoolaffairs- Research information

Employment

Schoolexpenses

CreateReportAutomatic
issuing
machine*Under developing
OEM equipment

EmploymentStudent
supportInformationdisclosure

DX main theme

CashlessCashchargerTicketmachinePOS
register

IC attendance
management
deviceERP
ScholarshipAI*
Organizingtime schedule

Automatic
issuing machineAI©2023 Japan System Techniques Co., Ltd.

48

Ⅴ．Appendix

４．Business（３）JAST Brand：BankNeo
Offering a wide range of smart and niche solutions that leverage easy implementation and scalability
Our integrated package drives digital transformation (DX) in financial institutions

Scheduled forreleased in
FY2024.3

Front-end
compliance

Scheduled forreleased in
FY2023.3- Unified workflow and paperless operations- Compliance with regulations- Integration with CRM

CRM/SFA
Scheduled forreleased in
FY2022.3- Centralized customer
management and sales
support.

Cloud

Scheduled forreleased in
FY2022.3- Improved productivity in external activities andexternal affairs management- Enhancement of sales skills for personnel- Strengthening the organization.

Electric
form

Cloud BankNeo
management systemt- Reduction of administrative burdens- Paperless initiatives- Ensuring comprehensive security- reducing administrative burdens inmanagement and operations

TQSM NAVI

Other
solutions

Scheduled forreleased in
FY2020.3- Strengthening information
management- Paperless initiatives- Comprehensive estate management
and business administration- Versatile scalability and expandability

Proven track record of
implementation in numerous
financial institutions nationwide

Ease of implementation througha small start approach.

High scalability after
implementation

A wealth of expertise
accumulated over 30 years

A service lineupthat captures customer needs©2023 Japan System Techniques Co., Ltd.

49

Ⅴ．Appendix

４．Business（４）JAST Brand：JMICS

Providing comprehensive support ranging from insurance business assistance to analysis,business consulting, and implementation of healthcare services by leveraging a large
volume of medical data. Our monthly claims processing ranges from 7 to 10 million sheets
Benefit and applicationrelated services

Utilizing the system for receipt inspection,
dependent investigation, and assistancewith subsidy application
Inspection 【JMICS】
 Receipt inspection
 Inspection of overseas medical cost,
Inspection for judo therapy andosteopathy• Web application 【iBss】
 Dependent investigation system(Verification)
 Various applications(influenza vaccination subsidy)

Receipt data

Data of subscriber

Medical cost
optimization

Result data of
medical check-up

JMICS

Analysis

Notification services
Identification of eligible individuals andissuance of corrective notices for medical
expense rationalization
WEB notifications• Promotion of generic medicine usage
notification• Identification of individuals with duplicate or
frequent visits and issuance of corrective
notices• Identification of individuals with duplicate
medicine administration and issuance ofcorrective notices• Dispatch of notices recommending medical
examinations• Other notifications for appropriate
healthcare behavior, etc.

Medical cost optimization
services

ConsultingIT
technology

Healthpromotion

Providing support for various healthinitiatives and caregiving data, with a focus
on receipt and health check-up data
Providing comprehensive support from data
health strategy formulation to execution.
• Analysis of receipt and health check-up
data• Evaluation of the effectiveness of healthinitiatives• Various analytical reports and benchmarks• Geographic Information System (GIS)
analysis of regional medical expenses• Analysis of caregiving data

Health guidance services

Business
supportOffering health guidance provided byhealth counselors, registered dietitians,
nurses, and other professionals• Extraction of target individuals for healthguidance• Prevention of the exacerbation of lifestylerelated diseases• Prevention of the exacerbation of lifestylerelated diseases• Specific health guidance (face-to-face andICT-based)• Guidance on appropriate medical check-ups(reducing duplications, frequent visits, etc.)©2023 Japan System Techniques Co., Ltd.

50

Ⅴ．Appendix

５．Philosophy-based Management

Since its founding, we have consistently adhered to the philosophy of “Starting with a vision" under
the guiding principle of "the quality of management is determined by the quality of people,"embodying the concept of the integration of business and ethics.

天爵を修めて人爵これに従う
Basicphilosophy

Through steadfast adherence to morality and fundamental principles, andthe continuous cultivation of personal character, integrity, and virtue, one
naturally attains a position of respect and trust, bestowed upon those who
possess a dignified character.

There are artificial or nominal ranks bestowed upon individuals byorganizations or superiors based on performance and experience. These
ranks are primarily attributed to external appearances

By bestowing a knighthood upon someone first, they may mistakenly believe they have also attained a higher rank. However,
our ultimate goal in business activities and talent development is for each individual to strive to "attain the higher rank" or"excellence" itself, considering it as the supreme theme.
Firmly maintain a position of complete
independenceManagement
policyBenefit in all directions

We firmly maintain a position of complete independence, allowing us to fully
engage with our customers and tackle challenges without any constraints.
Our strength lies in the accumulated achievements and knowledge we havegained across various industries and technological fields. This enables us toprovide the utmost value to our clients.

We uphold the principle of "Shihouyoshi" to establish a win-win relationshipwith our customers, shareholders, employees, and society. By maximizing
the value of each stakeholder and enhancing the overall corporate value, we
strive for long-term stable growth.

Management focused on
developing people

One should strive to discover that which is true and unchanging,but to also learn from the changes taking place all around

Based on the belief that the cultivation of human abilities should take precedence
above all else, we foster a "people-centric" management approach at JAST. We
nurture the passion for information technology, which serves as the driving force
behind our company's growth, and instill a genuine commitment to providing
wholehearted services to our customers in each and every individual at JAST

We follow the philosophy of "Fueki Ryūkō" established by Matsuo Basho, which
embodies the idea of preserving the essential while incorporating new changes andcreating value. In accordance with this philosophy, we provide proper leadership byadhering to a consistent management principle of "Fueki" (unchanging) while
effectively embracing the dynamic nature of the business world ("Ryūkō" or trends).

©2023 Japan System Techniques Co., Ltd.

51

Ⅴ．Appendix

６．Management Policy
Management policy is incorporated into the four principles of human resources, production,
sales, and finance, and serves as a guideline for long-term, stable growth
HR Philosophy

A person is an
asset
Production
Philosophy

Focusing on
the personalCommitment toquality andreliability

Quality first
Productive R&D
Business
Philosophy

Customer first
Financial
Philosophy

Operatingindependently andself-supporting

Business tactics

Thorough cost
control• Recruitment activities focused on long-term talentdevelopment, aiming to nurture technical professionals
regardless of their background in humanities or sciences• Utilizing career recruitment to secure specialist talent andacquire new insights• Prioritizing employee satisfaction through growth, evaluation,
and a favorable work environment, leading to a high employee
retention rate.

• Employee-centric project organization• Commitment to seeing projects through to completion
without dropping out halfway• Research and development expenditure ratio exceeding theindustry average in terms of revenue• Promoting M&A and business alliances to generate synergy• Facilitating the acquisition of DX (digital transformation)technologies within the company• Promoting collaborative research through industry-academiagovernment partnerships to create societal value• Promoting proposal-driven SI business that accompanies andsupports our customers’ industries and operations anduncovering repeat projects• Problem-solving and co-creation proposals by specialized sales.
• Utilizing alliances to provide a wide range of proposals andeffectively address various customer challenges• Projectization of all activities, including indirect departments,
for cost management• Compacting headquarters with streamlined indirect
departmentsStable quality
Accumulation of knowledge andcompatibility with changeHigh repeat order rateLong-term business with major
customers

Cycle creation of new products
and businesses
Refinement of in-house technologies andutilization of other companies' knowledge







Long-term customer formation
DX-providing business
Co-prosperity of 4 different businesses

Low-cost structure
Stable performance growth©2023 Japan System Techniques Co., Ltd.

52

奥付

Japan System Techniques Co., Ltd.
https://www.jast.jp/
Inquiry
https://www.jast.jp/contact/【Notice】
The data and future projections disclosed in this document are based on the judgment and information available as of the date of this document and are subject
to change due to various factors. They do not guarantee the achievement of these objectives or forecasts or future performance. Additionally, this information is
subject to change without notice. Unless otherwise noted, all performance-related figures are presented on a consolidated basis.
【Trademarks】*1: SAP and the SAP logo, SAP products are trademarks or registered trademarks of SAP AG in Germany and various other countries.
*2: Salesforce and the Salesforce logo are registered trademarks of Salesforce.com, inc. Other service names are also registered trademarks or trademarks ofSalesforce.com, inc.
*3: The mcframe logo, as well as all mcframe products, features, and service names, are registered trademarks or trademarks of Business Engineering
Corporation.
*4: GLOVIA smart PRONES and GLOVIA smart products are trademarks or registered trademarks of Fujitsu Limited in Japan and other countries.
*5: RezeptPlus and the RezeptPlus logo are registered trademarks of Fujitsu Japan Limited.
©2023 Japan System Techniques Co., Ltd.