February 26, 2024
NJ Holdings Inc.
Financial Results Briefing for the First Half of the Fiscal Year Ending June 30, 2024
Summary of Key Questions and AnswersQ.1) What is your policy on targets and size in terms of M&A strategy?
The priority is to recover and stabilize performance in the current business structure,and M&A will be considered in business areas related to the game and mobile businesses,
but no specific targets have been set.
Q.2) What has changed compared to six months or a year ago?
This was a review of the structure of the game business. First, the Investment
Management Committee was established to deliberate on orders for major projects andto strengthen ongoing checks on the status of development. Second, a system wasestablished to improve the collection of information. We have improved our ability andaccuracy to collect information on the status and outlook of existing and new projects
and personnel utilization status for the entire group. Information on the status ofpersonnel is collected twice a month and shared with the entire group. As a result,decisions can be made more quickly than before.
Q.3) Regarding 'the posting of sales associated with progress in the development of an
existing project' (page 9) please can you provide additional detail on what this means& how much it contributed towards the 1H Financial Results?
When compared to the same period of the previous year, this means that for titles thathave continued to be developed both in the previous year and in the current year, sales
are greater in the current year. It contributes about half of the increase in development
sales.
Q.4) What other small, medium publicly listed Japanese video game companies does NJ
Holdings look towards when planning the future of its Game Business. Those
primarily involved in contract work like 株式会社トーセ (TOSE) & 株式会社ユーク
ス (Yuke's) or companies that develop & publish games based on their own IP such1

as 日 本 フ ァ ル コ ム 株 式 会 社 (Nihon Falcom) & 株 式 会 社 日 本 一 ソ フ ト ウ ェ ア(Nippon Ichi Software)?
The most similar company in terms of contract development that we are concerned
about is TOSE. But it is not the same. we are also looking at small publishers. In anycase, we believe it is important to acquire the disposition of a publisher.
Q.5) NJ Holdings outline page lists BANDAI NAMCO Entertainment Inc. & SQUAREENIX CO., LTD as two of its main clients. Yet both have been cancelling titles &signaled they intend to reduce the number of titles going forward. What impact does
this have on NJ Holdings current plans & will it be looking to be less dependent on
contract work from these two companies in the next NJ Holdings mid-term plan?
We are moving forward with the completion of the projects we are currently accepting.
There is no possibility of cancellation currently. The trend toward narrowing down thenumber of projects has been emerging for several years, and we have mentioned this as
an industry environment in the past. One of the reasons for the losses in the past two
fiscal years is that we have already been affected by this trend. Therefore, we are taking
a variety of measures in the current period. We are working to detect future risks inadvance and to strengthen our proactive sales activities.
Q.6) What is the average level of performance for the current size of the business? Howmuch is it in terms of potential?
We consider 10 billion yen in sales and 200 million yen in operating income, which isthe same scale as the forecast for the current fiscal year, as the minimum level to beachieved. The potential is an operating margin of 5% and an operating income of 500
million yen in the current business model. Since there are various risks involved in thegame business, we are working to build a structure that will enable us to maintain
operating income at the 200 million yen level even if such risks arise.
Q.7) If you were to expand or change your business areas, what would you consider?
For the time being, we would like to work on the game business, as it is not far off from
where we would like to expand. However, it is conceivable that we will change ourapproach to the game business. If we make any important decisions regarding our2

business strategy, we will announce them promptly.
(note) The forecasts in this document are based on information currently available to theCompany and certain assumptions that the Company believes are reasonable. Actual
results may differ from forecasts.

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