Supplemental Material
For FY2023 First Nine
Months Financial Results
NJ Holdings Inc.

Tokyo Stock Exchange Standard Market
Code number: 9421

May 12, 2023
1

Cautionary notes on this document
 The current strategies, plans, and perceptions of the Company and its
subsidiaries contained in this document regarding future businessperformance are subject to risks and uncertainties, and actual results may
differ materially from those projected due to a variety of factors.
 Major factors that may affect actual results include economic conditions
surrounding the Company and its subsidiaries' business areas, social trends,
demand trends for products and services offered by the Company and its
subsidiaries, price declines due to increased competition, and technologicalcapabilities to meet customers' demands. Factors that may affect businessresults are not limited to those mentioned above.
 While every care has been taken to ensure the accuracy of this document, wecannot guarantee its accuracy or completeness.
 This document is subject to change without notice.
 The names of companies, products and services mentioned in this document
are trademarks or registered trademarks of the relevant companies.

2

Contents

Ⅰ. FY2023 First Nine Months Highlights

Ⅱ. Forecasts for FY2023

Ⅲ. Company Profile(Note) FY2023 is Fiscal Year Ending June 30, 2023.

3

Ⅰ. FY2023 First Nine Months Highlights

41. Consolidated Financial Results（1）Results Summary
Operating loss narrowed. Gross profit margin is also on an improving
trend.
FY2022

FY2023

ChangeJul.ʼ21-Mar.ʼ22Jul.ʻ22-Mar.ʼ23

Net sales

8,300

7,681(619)

Cost of sales

7,524

6,531(993)

Gross profit775

1,149374

Selling, general andadministrative expenses

1,3961,306(89)

Operating profit

(620)

(157)

463

Ordinary profit

(623)

(172)

450

Net income before
income taxes

(843)

(172)

671

Profit attributable toowners of parent

(796)

(215)

581

EBITDA※(449)(61)※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

387（ in millions of yen ）・(237) in this half.

・goodwill amortizationin this first Ninemonths is 58mil.

51. Consolidated Financial Results（2）Results by Segment
Game business became profitable. Mobile business also recoveredfrom the loss in the first half and returned to operating profit.

（in millions of yen）

Net sales
FY2022

FY2023

Jul.ʼ21-Marʼ22

Jul.ʼ22-Marʼ23

Game

6,346

6,023

Mobile1,909

Other※1

Operating profit
FY2022

ChangeFY2023

ChangeJul.ʼ21-Marʼ22

Jul.ʼ22-Marʼ23

(322)

(421)

36

457

1,608(301)42

11(31)

5053

3

23

27

3

Intersegment
eliminations andcorporate expenses※2

(6)

(4)

1(171)(172)

0

goodwill amortization

―――

(93)

(59)

33

8,300

7,681(619)

(620)

(157)

463

Consolidated total※1 The Other segment is a business segment not included in the reportable segments.
※2 Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

61. Consolidated Financial Results（3）Quarterly Net Sales by Segment
In the game business, there was no big deviation in the cost in thethird quarter, and sales recovered to over 2 billion yen.

（in millions of yen）

Net Sales
FY2022
1Q

2Q

FY2023
3Q

4Q

1Q

2Q

3Q

Jul.-Sep.ʼ21

Oct.-Dec.ʼ21

Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22Jan.-Mar.ʼ23

Game

2,366

2,116

1,863

1,777

1,950

1,962

2,110

Mobile

626

628

655

558

447

561599Other※1

16

16

17

17

18

17

17Intersegment
eliminations

(2)

(1)

(2)

(1)

(1)

(1)

(2)

――――――――

3,006

2,760

2,533

2,352

2,415

2,540

2,725

Consolidated total※1 The Other segment is a business segment not included in the reportable segments.

71. Consolidated Financial Results（4）Quarterly Operating Profit by Segment
Game business returned to profitability and profit levels recovered.
Mobile business remained flat in recovery.

（in millions of yen）

Operating Profit
FY2022
1Q

2Q

FY2023
3Q

4Q

1Q

2Q

3Q

Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22

Jul.-Sep.ʼ22

Oct.-Dec.ʼ22Jan.-Mar.ʼ23

Game

89(199)

(311)

(187)

2(96)

130

Mobile

32(4)

14

3(19)

1415

Other※1

87

6

7

８

9

9

Intersegment
eliminations andcorporate expenses※2(58)

(59)

(53)

(52)

(57)

(59)

(55)

goodwill amortization

(36)

(36)

(19)

(20)

(19)

(19)

(19)

Consolidated total

35(292)

(363)

(248)

(86)

(151)

80

※1 The Other segment is a business segment not included in the reportable segments.
※2 Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

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2. Game Business（1）Overview
Summary In terms of sales, in the operation support field, orders related to newly released titles
and localization support for overseas markets were favorable, but revenues declined
due to the gradual downward trend in operation sales.
 In the development field, although there was no huge increase in cost of sales as in theprevious fiscal year, profit declined due to a lower profit margin resulting from anincrease in total estimated cost of sales and a gradual decrease in operating sales.
However, Operating income in the segment returned to the black as a result of steadyprofit growth in the operation support field in line with strong orders.
Net sales（in millions of yen）

（in millions of yen）

Operating profit
36

100

8,000

6,346
6,000

6,023

0-100-200

4,000-300
2,000-400-500

0FY2022
Jul.ʼ21-Mar.ʼ22

FY2023
Jul.ʼ22-Mar.ʼ23-421
FY2022
Jul.ʼ21-Mar.ʼ22

FY2023
Jul.ʼ22-Mar.ʼ2392. Game Business（2）Sales Breakdown
In the operation and royalty, sales declined YoY due to the gradualdecline in operation sales, but the impact on profit was minimal dueto the contribution of the operation support business.
（ in millions of yen ）
7,000
6,000
5,000
4,000

3,126（49％）

Operations and Royalties

2,856（47％）

3,000
2,000
1,000

3,220

Development（51％）

3,168（53％）

0FY2022
Jul.ʻ21-Mar.ʼ22
Development

FY2023
Jul.ʻ22-Mar.ʼ23
Operations and Royalties※Operation sales include sales that involve development, such as version upgrades after delivery and release.
※The breakdown of operation sales and royalties is not disclosed.
※Development sales cover sales up to the time of delivery and release. It also includes sales of other games, such asdispatch services.

102. Game Business（3）Quarterly Sales Breakdown
Operating revenues have stopped declining since the current fiscal
year due to the contribution of the operational support business.
（in millions of yen）
3,000

2,500

2,000

1,316 -120 1,196 -128

1,068

-22

1,500

1,045

-32

1,013

-84

933

+38

970

＋169 1,018

-26

992

+4929

-18

953

1,0005000

1,080＋48Jan.-Mar.ʼ21

1,129＋169 1,298Apr.-Jun.ʼ21Jul.-Sep.ʼ21-227

1,072-221

Oct.-Dec.ʼ21Development

850

Jan.-Mar.ʼ22-1849

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22165

1,157

Jan.-Mar.ʼ23

Operations and Royalties※Operation sales include sales that involve development, such as version upgrades after delivery and release.
※The breakdown of operation sales and royalties is not disclosed.
※Development sales cover sales up to the time of delivery and release. It also includes sales of other games, such asdispatch services.

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2. Game Business（4）Quarterly Operating Profit
In the development field, there were no new cost increase
estimates in the third quarter, and profits recovered. Strong orders
in the operation support field also underpinned profits.
（in millions of yen）
200

162
107

100

130
89
20Jan.-Mar.ʼ21

Apr.-Jun.ʼ21Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22Jan.-Mar.ʼ23-100

-96
-200

-187

-199
-300

-311-400※The breakdown of operating income by development and operation is not disclosed.

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2. Game Business（5）Other Information
Number of current developments, etc.
 Number of projects under development※1・console type※2 ※3（condole, PC）

3 （±0 from Feb. 10, 2023）

・mobile app type※2 ※4（mobile phone, PC）

2 （±0 from Feb. 10, 2023）

 Business Size Information

・employees※5（+14 from Dec. 31, 2022）

808 （+11 from Jun. 30, 2022）※1 as of February 10, 2023. It does not indicate the number of titles that will be completed within this fiscal year.
※2 Multi-platform title counts as one. Small titles are not counted.
※3 Download sales and additional content are also included in the console type.
※4 including the free-to-play type.
※5 as of December 31, 2022（including some fixed-term contract workers.）

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3. Mobile Business（1）Overview
Summary
 Sales: As the number of visitors continued to fall below the previous year's level, sales
volume fell short of the plan despite efforts to hold events to attract customers.
 Operating profit: Despite the continuing downward trend in sales volume, efforts toincrease profit per customer resulted in a positive segment profit, recouping the loss inthe first half.

（in millions of yen）
2,000

1,909

Net sales

Operating profit（in millions of yen）

1,608

1,50050424030

1,00020111050000-10
FY2022
Jul.ʼ21-Mar.ʼ22

FY2023
Jul.ʼ22-Mar.ʼ23

FY2022
Jul.ʼ21-Mar.ʼ22

FY2023
Jul.ʼ22-Mar.ʼ2314

4. Recent Topics（1-1）Game■October 27, 2022
・『StarOcean6 THE DIVINE FORCE』
released（developed by tri-Ace Inc.）[PS5、PS4、Xbox Series X|S、Xbox One、Steam]© 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
Developed by tri-Ace Inc. CHARACTER DESIGN︓akiman

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4. Recent Topics（1-2）Game■August 25, 2022
・Presented at CEDEC 2022
「The Road to QA Automation for Efficient 3D Action Game Development: AJourney of a Thousand Miles Begins With a Single Step」（Tech Flag Corporation）■August 28, 2022
・Opened a booth at the 5th Working Kids Adventure, a work experience event
We provided an opportunity to experience game development at the Shiroi-shi
Shiroi Community Center. We will support and cooperate with activities that
support the future of children in the community.
（Game Studio Inc.）■December 19, 2022
・Released “Labyrinth”, a strategic simulation battle game for smartphones
We have started representing game titles developed and marketed by PLAYDEK,INC. in Japan. We translate and localize the products for sale in Japan.
（Wit One Inc.）16

4. Recent Topics（1-3）Game■February 22, 2023
We have released “telegur”, a service forSlack integration with time and attendancesystems.
（Tech Flag Corporation）■May 2, 2023
The cooperative card game “OSHIKATSU:KIRAKIRA LIVE!” will be exhibited and soldat Game Market 2023 Spring.
（Wit One Inc.）17

4. Recent Topics（2）Mobile■September 1, 2022
・Opened “PiPoPark Hatanodai” in Tokyo.
（NEPRO CREATE Co., Ltd.）18

Ⅱ. Forecasts for FY2023

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1. Forecasts for FY2023
 There is no change to the full-year earnings forecast announced on
February 10, 2023.
Although the company still posted an operating loss for the first ninemonths of the current fiscal year, its performance for the thirdquarter of the current fiscal year is generally progressing according
to plan（in millions of yen）
FY2023First Nine Months
Jul.ʼ22-Mar.ʼ23

FY2023
Forecastprogress（Reference）
FY2022 Results
Jul.ʼ21-Jun.ʼ22Jul.ʼ22-Jun.ʼ23

Net sales

7,681

10,47073.4％

11,652

Operating profit(157)

15―(869)

Ordinary profit(172)

5―(865)

Profit attributableto owners of parent

(215)

(95)

―(1,231)

EBITDA※(61)

145―652※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

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Ⅲ. Company Profile21

1. Company Profile（1）Basic Information and History■Basic Information
Date of Establishment: December 11, 1991
Head Office Address: 7F, Shibakoen First Building, 3-8-2 Shiba, Minato-ku, Tokyo 105-0014, Japan
Capital: JPY592,845,020 (as of June 30, 2022)
Number of Employees: consolidated 963 (as of March 31, 2023. It includes 70 average temporary employees)
Fiscal Year End: June 30■History
・Dec. 1991
・Nov. 1995
・Mar. 1997
・Jul. 2000
・Apr. 2006
・Sep. 2011
・Apr. 2014
・Dec. 2014
・Mar. 2015
・Sep. 2015
・Dec. 2015
・Jun. 2017
・Dec. 2017
・Jul. 2018
・Oct. 2018
・Jun. 2019・Nov. 2019・Mar. 2020・Jul. 2020
・Apr. 2022

Established as 株式会社新都市科学研究所.
Started mobile communications business (now mobile business).
Company name changed to Nepro Japan Co., Ltd.
Started suburban cell phone store business (now PiPoPark).
Listed on JASDAQ stock exchange.
Mobile & Game Studio (now Game Studio Inc.) becomes a consolidated subsidiary.
Transitioned to holding company structure.
docomo shop business transferred to ranet Co.,Ltd.
tri-Ace Inc. becomes a consolidated subsidiary.
TOTEC Corporation becomes a consolidated subsidiary.
Company name changed to NJ Holdings Inc.
Acquisition of Boom's business.
Established Wit One Inc., a game operation/customer support company.
Transfer of a portion of TOTEC's stock to DELTA Holdings.
Wit One acquired ISAO's game operational business.
Changed fiscal year end from March to June.
Merger of three companies, Wit One, Boom and NJ One.
Wit One Okinawa joined our group.
Tech Flag Corporation was established.
Moved to the Tokyo Stock Exchange Standard Market due to the revision of the market classification.

22

1. Company Profile（2）Our Business and Main Group Companies

NJ holdings Inc.

Game Studio Inc.

tri-Ace Inc.

Wit One Inc.

NEPRO CREATE Co., Ltd.

GameMobile

Game development, post-launch operations and customer support

au shop andcell phone store PiPoPark※ Wit One Okinawa joined our group in March 2020.
※ Tech Flag Corporation was established in July 2020 to strengthen the Group's technological collaboration and promote productivity improvement.

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2. Game Business（1）The Main Field of Our Game Business Our game business consists mainly of contracted development,
post-launch operations and customer support.
Our business

DeveloperDevelopment

Selling

Operation

distribution

Product

Publisher

Purchase

ConsumerContentPaying
Royalty※※ Sales and other conditions may need to be met for royalty accrual.

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2. Game Business（2）Services for mobile app games
 Scope of each company's business in mobile app games
Post-launch Operations
Planning and Development

Event planning
Development ofadditional content

Monitoringuser voice andapp behavior

User support
Web site/SNSKPI Analysis

Localization
Translation
Market Analysis

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Inquiries regarding this document

Contact details
NJ Holdings Inc.
Investor Relations Office
Email︓ir＠njhd.jp
URL︓https://www.njhd.jp/ir/26