February 9, 2015

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2015
(Nine Months Ended December 31, 2014)
Company name: Japan System Techniques Co., Ltd.
Stock code:
4323
Representative:
Takeaki Hirabayashi, President and CEO
Contact:
Noriaki Okado, Director and CFO
Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:[Japanese GAAP]
Listing: Tokyo Stock Exchange, Second Section
URL: http://www.jast.jp
Tel: +81-6-4560-1000
February 10, 2015
None
None

Note: The original disclosure in Japanese was released on February 9, 2015 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, 2014
(April 1, 2014 – December 31, 2014)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen% Million yen%
Nine months ended Dec. 31, 2014
7,999
12.4
(93)
(41)
(57)
Nine months ended Dec. 31, 2013
7,116
8.4
(57)
(19)
(50)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2014: (75) (- %)Nine months ended Dec. 31, 2013: (22) (- %)Diluted net income per
share
Yen
Yen
(11.04)(10.46)-

Net income per share
Nine months ended Dec. 31, 2014
Nine months ended Dec. 31, 2013
(2) Consolidated financial position

Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2014
8,419
5,042
As of Mar. 31, 2014
8,817
5,066
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2014:
4,967

Equity ratio

Net assets per share
%
Yen
59.0
946.55
56.6
954.53As of Mar. 31, 2014:
4,992

2. Dividends
1Q-endYen-

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

Dividend per share
2Q-end3Q-endYear-end
Yen
Yen
Yen
0.00
25.00
0.00
25.00

Total
Yen
25.00
25.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 – March 31, 2015)(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Net income per share
Million yen% Million yen% Million yen%
Million yen%
Yen
Full year
11,900
9.9
525
22.8
555
17.1
290
4.0
55.26
Note: Revisions to the most recently announced consolidated earnings forecasts: None

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

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

None4) Restatements:

None(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of period (including treasury shares)
As of Dec. 31, 2014:

5,612,230 shares

As of Mar. 31, 2014:

5,594,230 shares

As of Mar. 31, 2014:

364,210 shares

2) Number of treasury shares at the end of period
As of Dec. 31, 2014:

364,210 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2014:

5,247,666 shares

Nine months ended Dec. 31, 2013:

4,809,941 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 FY3/15

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

2(2) Explanation of Financial Position

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

3

2. Matters Related to Summary Information (Notes)

5(1) Changes in Consolidated Subsidiaries during the Period

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

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

5

3. Important Information about Going Concern Assumption

5

4. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheet

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

8

Quarterly Consolidated Statement of Income
For the Nine-month Period

8

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

10(4) Notes to Quarterly Consolidated Financial Statements

11

Going Concern Assumption

11

Significant Changes in Shareholders’ Equity

11

Segment and Other Information

12

5. Supplementary Information

13

1

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

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”) showed higher sales and lower
profits as follows: net sales of 7,999 million yen (up 12.4% from the same period of the previous fiscal year),
operating loss of 93 million yen (vs. operating loss of 57 million yen in the same period of the previous fiscal year),ordinary loss of 41 million yen (vs. operating loss of 19 million yen in the same period of the previous fiscal year),and net loss of 57 million yen (vs. net loss of 50 million yen in the same period of the previous fiscal year). Resultsby segment were as follows.
In the software business (individualized contracted software development), net sales increased but profits decreased.
Sales remained strong because orders from the service/retail industry, the finance/insurance/brokerage industry, andthe telecommunications industry increased while there was a decrease in orders from medical institutions. Generaland administrative expenses increased due to higher costs associated with the expansion of the Tokyo Head Officeand the rebuilding of internal systems. As a result, net sales in this business totaled 5,743 million yen (up 19.1%
from the same period of the previous fiscal year) and operating income totaled 34 million yen (down 43.0% from thesame 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 increased. Operation services and implementation support decreased, but end user computing(EUC: contracted development of package-related systems) and IT equipment sales increased. Net sales in thisbusiness totaled 1,323 million yen (up 24.7% from the same period of the previous fiscal year) and operating income
totaled 45 million yen (vs. operating loss of 1 million yen in the same period of the previous fiscal year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construction), net sales and profits
decreased. Orders from system integration (SI) projects for public sectors, and equipment sales to universities
declined. As a result, net sales in this business totaled 692 million yen (down 35.5% from the same period of theprevious fiscal year), and operating loss totaled 58 million yen (vs. operating income of 16 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), net sales
totaled 239 million yen (up 52.1% from the same period of the previous fiscal year), and operating loss totaled 114
million yen (vs. operating loss of 131 million yen in the same period of the previous fiscal year). This was due to the
expansion of notification and data analysis services, and cloud services for checking service providers in addition toautomated inspection services for health insurance claims.
Features of the Group’s quarterly results
A feature of the Group’s software, package and systems sales businesses is that the delivery inspection period of
most customers concentrates in March, the last month of the fiscal year for most companies, and then in September,the last month of the second quarter. This means that the Group’s earnings in the first and third quarters tend to bemuch smaller than in the second and fourth quarters.
(2) Explanation of Financial Position
1) Balance sheet position
The balance of current assets at the end of the first nine months of the current fiscal year was 6,278 million yen,down 284 million yen from the end of the previous fiscal year. This was mainly due to an increase in work inprocess and a decrease in accounts receivable-trade. The balance of non-current assets was 2,141 million yen at theend of the first nine months, down 112 million yen from the end of the previous fiscal year. This was mainly due toan increase in net defined benefit asset, a decrease in deferred tax assets and cancellation of long-term time deposits.

2

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

The balance of current liabilities at the end of the first nine months was 2,171 million yen, down 193 million yen
from the end of the previous fiscal year. This was mainly due to increases in short-term loans payable and advances
received, and decreases due to notes and accounts payable-trade and payments for income taxes payable. Thebalance of non-current liabilities was 1,206 million yen at the end of the first nine months, down 180 million yen
from the end of the previous fiscal year. This was mainly due to decreases in net defined benefit liability andprovision for directors’ retirement benefits following the retirement of directors.
The balance of net assets was 5,042 million yen at the end of the first nine months, down 23 million yen from theend of the previous fiscal year. This was mainly due to decreases in remeasurements of defined benefit plans andretained earnings.
2) Cash flows
Cash and cash equivalents decreased 269 million yen from 2,144 million yen at the start of the current fiscal year to
1,874 million yen at the end of the first nine months of the current fiscal year.
Cash flows by category were as follows.
Cash flows used in operating activities totaled 436 million yen, a decrease of 704 million yen from 267 million yen
provided in the same period of the previous fiscal year. This was mainly due to a decrease in income from notes andaccounts receivable-trade and an increase in outlays for inventories, while at the same time there is a decrease inoutlays for notes and accounts payable-trade and an increase in income from advances received.
Cash flows provided by investing activities totaled 4 million yen, an increase of 27 million yen from 22 million yen
used in the same period of the previous fiscal year. This was mainly due to an increase in income from withdrawal oftime deposits, while there was a decrease in proceeds from the collection of guarantee deposits.
Cash flows provided by financing activities totaled 161 million yen, a decrease of 90 million yen from 251 million
yen provided in the same period of the previous fiscal year. This was mainly due to a decrease in proceeds fromissuance of common shares.
(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 pathbecause of the falling crude oil prices and the benefits of measures of the Japanese government. However, a risk of
economic stagnation or a downturn remains because of the weakness in consumer sentiment and downturn in global
economies.
In the IT industry in Japan, according to latest statistics in “Survey of Selected Service Industries” by the Ministry of
Economy, Trade and Industry (the final November figures), net sales began to rise on a year-on-year basis from
October 2011 after declining for many years. Since then, net sales have continued to climb as the IT industry as awhole stages a recovery. However, the recovery is still weak.
The Group will be guided by the fiscal year’s slogan of “act with thought and speed.” Everyone at the Group has astrong commitment to adapt swiftly to changes involving clients, technologies and markets. The objective is toachieve consistent growth in association with the shift from the previous business model centered on contracted
development activities. The Group is establishing a business model in which we take our own initiatives with acentral focus on proprietary brand products.
Structural reforms have established a framework where executive officers oversee each business unit and where the
newly established Management Planning Department oversees implementation of group business strategies. In
addition, a global management executive has been appointed to take the lead in the full-scale expansion of activity
by the Group companies and the start of operations in China and other countries. Strategies in each business unit are
as follows.

3

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

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

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

2. Matters Related to Summary Information (Notes)(1) Changes in Consolidated Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits(ASBJ Guidance No. 25, May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in
the main clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph 67 of the
Guidance on Accounting Standard for Retirement Benefits. Accordingly, the Company reviewed the methods forcalculating retirement benefit obligations and service costs, and revised the method of attributing estimatedretirement benefit obligations to periods from the straight-line basis to the benefit formula basis, and revised themethod of determining the discount rate from the method using the approximate number of years of expected
average length of the remaining service period of employees to the method using a single weighted average discountrate.
For the application of these accounting standards, etc. in accordance with the transitional accounting treatments set
forth in Paragraph 37 of the Accounting Standard for Retirement Benefits, the adjustments associated with thechange in calculation methods of retirement benefit obligations and service costs are recorded in retained earnings at
the beginning of the first nine months of the current fiscal year.
The result was decreases of 97,473 thousand yen in deferred tax assets and 169,824 thousand yen in net defined
benefit liability, and increases of 103,978 thousand yen in net defined benefit asset and 176,328 thousand yen inretained earnings at the beginning of the first nine months of the current fiscal year.
The effect of this change was to decrease operating loss, ordinary loss and loss before income taxes and minority
interests by 4,410 thousand yen each in the first nine months of the current fiscal year.
3. Important Information about Going Concern Assumption
Not applicable.

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

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

AssetsCurrent assets
Cash and deposits

3,319,585

3,070,818

Notes and accounts receivable-trade

2,607,749

2,350,814

Merchandise and finished goods

97,394116,046

Work in process

167,776

337,758

Raw materials and supplies

2,347

4,264

Deferred tax assets

259,362

303,938

Other

112,940

97,440Allowance for doubtful accounts(3,863)(2,626)

6,563,292

6,278,456

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

551,886

612,788

Accumulated depreciation(270,155)(260,445)

Buildings and structures, net

281,730

352,342Land

142,361

142,361

Other

252,174

279,252(171,771)(180,007)

80,402

99,245504,495

593,949

Goodwill

27,02320,002

Software96,422

88,597

Other

7,189

7,189

130,635

115,789

Investment securities

362,629

348,011Net defined benefit asset

257,001

371,838

Deferred tax assets

234,645

104,757

Guarantee deposits

299,440

342,320

Other

519,352

319,160

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

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

Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

6

1,618,782

1,431,799

2,253,912

2,141,538

8,817,204

8,419,995

Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/15(Thousands of yen)
Third quarter of FY3/15(As of Dec. 31, 2014)

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

906,653

558,594-

286,867

2,400

2,400

Income taxes payable

293,658

5,803

Provision for bonuses

531,526

285,901

Provision for directors’ bonuses

28,477

17,011

Other

601,663

1,014,518

2,364,379

2,171,096

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

1,800

-

Provision for directors’ retirement benefits

422,029

344,975

Net defined benefit liability

903,730

766,079

Other

58,856

95,3501,386,415

1,206,405

3,750,795

3,377,502

Capital stock

1,071,446

1,076,669

Capital surplus

1,033,084

1,038,308

Retained earnings

3,025,811

3,013,438

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

Total shareholders’ equity

4,863,803

4,861,876

Valuation difference on available-for-sale securities

52,191

41,521

Foreign currency translation adjustment(14,936)(12,936)

Remeasurements of defined benefit plans

91,15077,068

Total accumulated other comprehensive income

128,405

105,652

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

Accumulated other comprehensive income

Subscription rights to shares

514-

Minority interests

73,68674,964

Total net assets

5,066,409

5,042,493

8,817,204

8,419,995

Total liabilities and net assets

7Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/15(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/14(Apr. 1, 2013 – Dec. 31, 2013)(Thousands of yen)First nine months of FY3/15(Apr. 1, 2014 – Dec. 31, 2014)

Net sales

7,116,854

7,999,035

Cost of sales

5,855,410

6,564,529

Gross profit

1,261,443

1,434,505

Selling, general and administrative expenses

1,318,450

1,527,706

Operating loss

(57,007)(93,200)

Non-operating income
Interest income

9,785

8,311

Dividend income

5,371

6,175

Rent income

10,982

11,649Subsidy income

19,766

19,913

Other

11,038

15,108

Total non-operating income

56,94361,158Interest expenses

3,469

1,088

Rent expenses

14,524

7,541

Other

1,620

1,296

Non-operating expenses

19,614

9,926

Ordinary loss

Total non-operating expenses(19,678)(41,969)

loss before income taxes and minority interests(19,678)(41,969)

Income taxes

28,834

14,054

loss before minority interests(48,512)(56,023)

Minority interests in income

1,795

1,927

(50,307)(57,951)

Net loss8

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

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/14(Apr. 1, 2013 – Dec. 31, 2013)(Thousands of yen)First nine months of FY3/15(Apr. 1, 2014 – Dec. 31, 2014)(48,512)(56,023)

Valuation difference on available-for-sale securities

24,461(10,670)

Foreign currency translation adjustment

1,361

4,836

-

(14,082)

loss before minority interests
Other comprehensive income

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

25,822(19,917)(22,689)(75,940)

Comprehensive income attributable to owners of parent(29,578)(80,704)

Comprehensive income attributable to minority interests

6,888

4,763

Comprehensive income
Comprehensive income attributable to9Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/15(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First nine months of FY3/14
First nine months of FY3/15(Apr. 1, 2013 – Dec. 31, 2013) (Apr. 1, 2014 – Dec. 31, 2014)
Cash flows from operating activities
loss before income taxes and minority interests(19,678)(41,969)

Depreciation

54,986

71,339Amortization of software

9,122

18,392

Amortization of goodwill

6,236

6,236

(120,035)(245,648)

Increase (decrease) in provision for retirement benefits

14,209-Decrease (increase) in prepaid pension costs(11,794)-

Increase (decrease) in provision for bonuses

Increase (decrease) in net defined benefit liability-

31,736

Decrease (increase) in net defined benefit asset-(10,858)(15,156)(14,486)

3,469

1,088

Decrease (increase) in notes and accounts receivable-trade958,800

256,313

Increase (decrease) in advances received

102,064

169,524

Decrease (increase) in inventories(24,049)(192,976)

Increase (decrease) in notes and accounts payable-trade(537,995)(348,094)

Other, net(17,050)

139,751

Subtotal

403,128(159,650)Interest and dividend income received

15,828

16,225Interest and dividend income
Interest expenses

Interest expenses paid

(3,564)(1,050)

Income taxes paid

(147,632)(292,452)

Net cash provided by (used in) operating activities

267,759(436,928)

Decrease (increase) in time deposits(6,653)

182,707

Purchase of property, plant and equipment(15,605)(120,497)

Purchase of software(44,161)(10,567)

Purchase of investment securities

Cash flows from investing activities(101,602)(1,950)

Proceeds from cancellation of insurance funds

8,642

-

Payments for guarantee deposits(1,186)(46,067)

Proceeds from collection of guarantee deposits

138,420

2,403

(705)

(1,596)(22,852)

4,431

Net increase (decrease) in short-term loans payable

243,031

286,867

Repayments of long-term loans payable(1,800)(1,800)

Proceeds from issuance of common shares

131,437

9,932

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

Purchase of treasury shares

(44)

-

(119,104)(130,750)(1,283)(2,435)

(388)

(134)

251,847

161,679

2,758

1,646

499,514(269,170)

Cash and cash equivalents at beginning of period

1,609,962

2,144,070

Cash and cash equivalents at end of period

2,109,476

1,874,900

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
Net increase (decrease) in cash and cash equivalents

10Japan System Techniques Co., Ltd. (4323) Financial Results for the Third Quarter of FY3/15(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.

11

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

Segment and Other Information
Segment information
I. 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
business

Medical big
databusiness

Total(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(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 statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First nine months of FY3/15 (Apr. 1, 2014 – Dec. 31, 2014)
1. Information related to net sales and profit or loss for each reportable segment
Softwarebusiness

Packagebusiness

System sales
business

Medical big
databusiness

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

Net sales
1. External sales
5,743,091
1,323,881
692,269
239,793
7,999,035
7,999,035
2. Inter-segment sales
46,83728,55575,392(75,392)
and transfers
Total
5,789,929
1,323,881
720,824
239,7938,074,428(75,392)
7,999,035
Segment profit (loss)
34,29545,073(58,271)(114,298)(93,200)(93,200)
Notes: 1. There is no adjustment to segment profit or loss because all of the operating expenses are allocated to each reportablesegment.
2. Segment loss is consistent with operating loss shown on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information related to revisions for reportable segments
Application of the accounting standard for retirement benefits
The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ)
Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25,
May 17, 2012)” from the first quarter of the current fiscal year, for provisions set forth in the main clauses of Paragraph 35 of
the Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement
Benefits. Accordingly, the Company reviewed the methods for calculating retirement benefit obligations and service costs, andrevised the method of attributing estimated retirement benefit obligations to periods from the straight-line basis to the benefit
formula basis, and revised the method of determining the discount rate from the method using the approximate number of yearsof expected average length of remaining service period of employees to the method using a single weighted average discountrate. The effect of this change on segment profit is insignificant.

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

5. Supplementary Information
Goods Manufactured, Orders Received and Sales(1) Goods Manufactured
Goods manufactured in the period under review are broken down by segment as follows.
First nine months of FY3/15
Operating segment(Apr. 1, 2014 – Dec. 31, 2014)
Software business
4,916,486(Thousands of yen)
Year-on-year (%)
122.6

Package business

813,418

112.5

System sales business

585,62463.8

249,000

122.3

6,564,529

112.1

Medical big data business
Total

Notes: 1. The above amounts are based on cost of sales; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.

(2) Orders Received
Orders received in the period under review are broken down by segment as follows.
Operating segment

Orders received

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

Year-on-year (%)

Software business

6,310,525

130.8

1,614,291

120.1

Package business

1,916,171

131.4

990,901

122.4

775,64961.8

238,282

74.4

194,971230.1

157,972

78.3

9,197,316

120.6

3,001,447

112.2

System sales business
Medical big data business
Total

Notes: 1. The above amounts are based on selling prices; inter-segment transactions have been eliminated.
2. The above amounts do not include consumption taxes.

(3) Sales
Sales in the period under review are broken down by segment as follows.
First nine months of FY3/15
Operating segment(Apr. 1, 2014 – Dec. 31, 2014)
Software business
5,743,091
Package business(Thousands of yen)
Year-on-year (%)
119.1
124.7

1,323,881

System sales business

692,269

64.5

Medical big data business

239,793

152.1

7,999,035

112.4

Total

Notes: 1. Inter-segment transactions have been eliminated.
2. The following table indicates sales amounts to major customers and their ratios to total sales amount.
(Thousands of yen)First nine months of FY3/14
First nine months of FY3/15(Apr. 1, 2013 – Dec. 31, 2013)(Apr. 1, 2014 – Dec. 31, 2014)
Customers
Amount%Amount%NTT COMWARECORPORATION (Note 4)

529,853

7.4

774,273

9.7

DUSKIN CO., LTD.

531,6287.5

488,426

6.1

TIS Inc.

328,3294.6

391,473

4.9

3. The above amounts do not include consumption taxes.
4. On July 1, 2014, NTT COMWARE CORPORATION merged its five regional group companies including NTT
COMWARE WEST CORPORATION. Accordingly, total sales amount of NTT COMWARE CORPORATION includes
results of NTT COMWARE WEST CORPORATION.

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

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