Japan System Techniques : 【Delayed】Plan for Compliance with Listing Maintenance Criteria in the New Market Segment

News Release Dated November 24, 2021

Company: Japan System Techniques Co., Ltd.

Representative: Takeaki Hirabayashi, President and CEO

Stock code: 4323, Tokyo Stock Exchange, First Section

Contact: Hiroyuki Norimoto,

General Manager of General Affairs Department

Tel: [phone]

Plan for Compliance with Listing Maintenance Criteria in the New Market Segment

Japan System Techniques Co., Ltd. (JAST) has today submitted an application to select the Prime Market in relation to the review of the market classification of the Tokyo Stock Exchange, Inc. scheduled for April 2022. As JAST does not meet the listing maintenance criteria for the Prime Market as of the record date for transition (June 30, 2021), JAST has prepared a plan to meet the listing maintenance criteria for the new market segment, as set out below.

1. JAST's status of compliance with the listing maintenance criteria, and the planning period

The status of JAST's compliance with the listing maintenance criteria of the Prime Market as of the record date for the transition was as follows, and the criteria for the market capitalization of tradable shares was not met. JAST is taking steps to ensure that, in the period from the date of submission of the plan until March 2024, the market capitalization of its tradable shares will satisfy the criteria for maintaining its listing.

		Number of	Market	Ratio of	Average daily
	Number of	capitalization of
	tradable shares	tradable shares	trading value
	shareholders	tradable shares
	(units)	(%)	(billion yen)
		(billion yen)
Status of JAST as of	2,556	30,061	4.6	53.5	0.07
the transition date
Listing maintenance	800	20,000	10.0	35	0.02
criteria
Items included in	-	-	〇	-	-
the plan

*The status of JAST' conformity is calculated based on the distribution of JAST's share certificates and other securities, and on other information available to the Tokyo Stock Exchange as of the record date.

2. Basic policy, issues, and initiatives for compliance with the listing maintenance criteria (market capitalization of tradable shares)

Please refer to "Plan for Compliance with Listing Maintenance Criteria in the New Market Segment".

As described in "1. Basic Policy for Compliance with the Listing Maintenance Criteria (1)" on page 2 of the plan, the market capitalization of tradable shares (as calculated by JAST) was 6.7 billion yen at the end of September 2021, and reached 10 billion yen as of November 19, 2021, reflecting the recent rise in JAST's share price and the increase in the ratio of tradable shares. At present, we believe that we are on the borderline of "conformity" with the listing maintenance criteria. Henceforth, JAST will continue to maintain a market capitalization of 10 billion yen in tradable shares and a stable presence in the Prime Market in accordance with said plan.

TSE, First Section Stock code: 4323

November 24, 2021

Plan for Compliance with Listing Maintenance Criteria in the New Market Segment

Japan System Techniques Co., Ltd.

Take on Future Challenges.

©2021 Japan System Techniques Co., Ltd.

Contents

1. Basic Policy for Compliance with Listing Maintenance Criteria
2. Issues and Initiatives for Compliance with Listing Maintenance Criteria
3. Milestones for Major Measures

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1

©2021 Japan System Techniques Co., Ltd.

1. Basic Policy for Compliance with Listing Maintenance Criteria (1)

Transitioning to the Prime Market on April 4, 2022

We plan to continue to meet the criteria for the market capitalization of tradable shares and to establish a stable presence in the market

	Number of	Number of tradable	Market capitalization	Ratio of tradable	Average daily trading
	of tradable shares	value
	shareholders	shares (units)	shares (%)
	(billions of yen)	(billions of yen)
Status of JAST as of the end of	2,556	30,061	4.6		53.5	0.07
June 2021 (*1)
Status of JAST as of the end of	2,380	35,820	6.7		57.7	-
September 2021 (*2)
Status of JAST as of November	2,380	42,028	10.0		67.7	-
19, 2021 (*3)
Listing maintenance criteria	800	20,000	10.0		35.0	0.02
			×
Conformity status	○	○		○	○
*1. JAST's status as of the end of June 2021 is calculated based on the distribution of JAST's share certificates and other securities available to the Tokyo Stock Exchange as of the record date (June 30, 2021).
*2. JAST's status as of the end of September 2021 is calculated by JAST (average daily trading value is omitted; share price is calculated using the average daily closing price for the month prior to the end of
September 2021).
*3. JAST's status as of November 19, 2021 is calculated by JAST (average daily trading value is omitted, the number of shareholders is the same as at the end of September, and the number of tradable shares
and the ratio of tradable shares have been changed from those at the end of September to current shares by adding JAST's Employee Shareholding Association (10.0%) to liquid shares (disclosed in a timely
manner in the "Announcement of Changes in Major Shareholders" dated November 1, 2021). The share price is calculated based on the average of the daily closing prices for the month prior to November	2
19, 2021.)

©2021 Japan System Techniques Co., Ltd.

1. Basic Policy for Compliance with Listing Maintenance Criteria (2)

We aim to achieve a market capitalization of tradable shares of 11 billion yen by the end of March 2024

			Tokyo Stock Exchange
As of JAST record	Target for the year	Average of peer	First Section	Tokyo Stock Exchange
Information	First Section Average
date (*1)	ending March 2024	companies (*2)
Technology Industry	(*3)

Average (*3)

PER	(times)	14.1	18.0	27.2	27.7	26.3
PBR	(times)	1.1	1.8	3.4	2.7	1.2
EPS	(yen)	107.95	165.00	115.42	92.81	91.97
Market capitalization	(billions of yen)	8.6	18.3
Market capitalization	(billions of yen)	4.6	11.0
of tradable shares
Ratio of tradable	（％）	53.5	60.0
shares (%)

*1.	As of JAST record date: PER, PBR and EPS are actual figures for the fiscal year ended March 2021; market capitalization, market capitalization of tradable shares and tradable shares ratio are as of
	the reference date (end of June 2021).
*2. Average of peer companies (PER, PBR, EPS): Average of selected 84 peer companies (TSE1, TSE2, JASDAQ) with sales between 10 and 60 billion yen, as of the end of March 2021 (calculated by
	JAST)	3
*3.	TSE First Section Information Technology Industry Average and TSE First Section Average (PER, PBR, EPS): as of the end of June 2021.

©2021 Japan System Techniques Co., Ltd.