Supplemental Material
For FY2024 First Nine
Months Financial Results
NJ Holdings Inc.

Tokyo Stock Exchange Standard Market
Code number: 9421

May 10, 2024
1

Cautionary notes on this document
 This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.
 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. FY2024 First Nine Months Highlights

Ⅱ. Forecasts for FY2024

Ⅲ. Company Profile(Note) FY2024 is Fiscal Year Ending June 30, 2024.

3

Ⅰ. FY2024 First Nine Months Highlights

41. Consolidated Financial Results（1）Results Summary
Operating profit has turned positive mainly due to transitory profit
factors in the first half of the fiscal year in the game business.
FY2023

FY2024

ChangeJul.ʼ22-Mar.ʼ23

Jul.ʻ23-Mar.ʼ24

Net sales

7,681

7,647

(33)

Cost of sales

6,531

6,159

(371)

Gross profit

1,149

1,487

338

Selling, general andadministrative expenses

1,306

1,249

(57)

Breakdown of Change
・game 344・mobile 30

(157)

237

395

Ordinary profit

(172)

234

407

Net income before
income taxes

(172)

449

621

Profit attributable toowners of parent

(215)

382

597

(61)

318

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

Breakdown of Change
・game (348)

Breakdown of Change
・mobile (61)

Operating profit

EBITDA※（ in millions of yen ）379

214 Extraordinary income
for this first nine months

・goodwill amortizationin this first Ninemonths is 59mil.

5

1. Consolidated Financial Results（2）Results by Segment
Profits recovered in both the game and mobile businesses.
（in millions of yen）

Net sales
FY2023

FY2024Jul.ʼ22-Mar.ʼ23

Jul.ʼ23-Mar.ʼ24

Game

6,023

6,036

Mobile1,608

Other※1

Operating profit
FY2023

ChangeFY2024

ChangeJul.ʼ22-Mar.ʼ23

Jul.ʼ23-Mar.ʼ24

12

36

380

344

1,569

(38)

11

42

30

53

53

0

27

27

0

Intersegment
eliminations andcorporate expenses※2

(4)

(12)

(7)

(172)

(152)

20

goodwill amortization

―

―

―

(59)

(59)

0

7,681

7,647

(33)

(157)

237

395

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, sales increased due to projects that
progressed in the development phase in 3Q.

（in millions of yen）

Net Sales
FY2023
1Q

2Q

FY2024
3Q

4Q

1Q

2Q

3Q

Jul.-Sep.ʼ22

Oct.-Dec.ʼ22

Jan.-Mar.ʼ23

Apr.-Jun.ʼ23

Jul.-Sep.ʼ23

Oct.-Dec.ʼ23

Jan.-Mar.ʼ24

Game

1,950

1,962

2,110

1,972

2,278

1,837

1,920

Mobile

447

561

599

462

475

551

543

Other※1

18

17

17

17

16

18

18

Intersegment
eliminations

(1)

(1)

(2)

(1)

(2)

(4)

(4)

―

―

―

―

―

―

―

―

2,415

2,540

2,725

2,450

2,767

2,402

2,477

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
In the game business, profits declined due to the absence of transient
profit factors as well as the effects of delays in new orders.

（in millions of yen）

Operating Profit
FY2023
1Q

2Q

FY2024
3Q

4Q

1Q

2Q

3Q

Jul.-Sep.ʼ22

Oct.-Dec.ʼ22

Jan.-Mar.ʼ23

Apr.-Jun.ʼ23

Jul.-Sep.ʼ23

Oct.-Dec.ʼ23

Jan.-Mar.ʼ24

Game

2

(96)

130

7

212

138

29

Mobile

(19)

14

15

(25)

10

17

14

Other※1

8

9

9

9

8

10

8

Intersegment
eliminations andcorporate expenses※2

(57)

(59)

(55)

(53)

(62)

(60)

(28)

goodwill amortization

(19)

(19)

(19)

(20)

(19)

(19)

(19)

Consolidated total

(86)

(151)

80

(81)

148

86

2

※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.

8

2. Game Business（1）Overview
ゲーム事業 Despite the completion of development of some titles and a reduction in the scale ofoperations, sales increased slightly due to firm orders in the operation support field, as well as
the transfer of rights to game titles that were being developed in-house and the posting ofsales associated with progress in the development of existing projects.
 The impact on profit and loss was limited by cost control measures, such as outsourcing
costs, to counter the factors that reduced sales due to the completion of development and the
reduced scale of operations. While sales were on a par with the previous year, cost of sales
decreased, resulting in an increase in profit.

Net sales（in millions of yen）
7,000
6,000

6,023

6,036

380

400

300

5,000
4,000

200

3,000
2,000

100
36

1,000
0

Operating profit（in millions of yen）

FY2023
Jul.ʼ22-Mar.ʼ23

FY2024Jul.ʼ23-Mar.ʼ24

0

FY2023
Jul.ʼ22-Mar.ʼ23

FY2024Jul.ʼ23-Mar.ʼ24

9

2. Game Segment（2）Sales Breakdown
Operating sales decreased due to the downsizing of thedevelopment team for the operation.
(in millions of yen)
7,000
6,000

Other
＋208

488 [8％]696 [11％]

5,000
4,000

Operations and Royalties
(267)

2,856
[47％]

2,588
[43％]

3,000
2,000
1,000

Development
+72

2,680
[45％]

2,752
[46％]

0
FY2023
Jul.ʼ22-Mar.ʼ23
Development

FY2024Jul.ʼ23-Mar.ʼ24
Operations and Royalties

Others※Development sales cover sales up to the time of delivery and release.
※Operational sales include sales that involve development, such as version upgrades after delivery and release.
※Other sales cover sales in the peripheral areas of games and other projects related to operation and development.

10

2. Game Segment（3）Quarterly Sales Breakdown
Sales increased due to projects that progressed in thedevelopment phase in 3Q. Operational sales continue to decline.
（in millions of yen）
2,500
232
2,000
106

＋39

＋3

145

148

＋17

1,013

＋3

175

＋10

△7

＋63

169

△11

+38

933

970

961

953

△18

244

＋23

221

1,500
△84

165

△6

947

＋14

△113

△67

780

847

929

1,000

0

＋166

△40

500
744

704

Jan.-Mar.ʼ22

Apr.-Jun.ʼ22

＋155

△43
871

827

Jul.-Sep.ʼ22

Oct.-Dec.ʼ22

Development

982

△126

Jan.-Mar.ʼ23

＋229
857

Apr.-Jun.ʼ23

Operations and Royalties

1,086 △316

＋127
897

769

Jul.-Sep.ʼ23

Oct.-Dec.ʼ23

Jan.-Mar.ʼ24

Others※Development sales cover sales up to the time of delivery and release.
※Operational sales include sales that involve development, such as version upgrades after delivery and release.
※Other sales cover sales in the peripheral areas of games and other projects related to operation and development.

11

2. Game Segment（4）Quarterly Operating Profit
Profits declined due to the absence of transient profit factors aswell as the effects of delays in new orders.
（in millions of yen）
300
212
200

138

130

100

29

7

2
0
Jan.-Mar.ʼ22

Apr.-Jun.ʼ22-100

Jul.-Sep.ʼ22

Oct.-Dec.ʼ22

Jan.-Mar.ʼ23

Apr.-Jun.ʼ23

Jul.-Sep.ʼ23

Oct.-Dec.ʼ23

Jan.-Mar.ʼ24

-96

-200

-187

-300
-311
-400

※The breakdown of operating income by development and operation and others is not disclosed.

12

2. Game Segment（5）Other Information
Number of current developments, etc.
 Number of projects under development※1

・console type※2 ※3（console and PC）

5 （±0 from Feb 9, 2024）

・mobile app type※2 ※4（smart phone and PC）

0 （±0 from Feb. 9, 2024）

 Business Size Information

・employees※5from Dec. 31, 2023）
820 （-15（-16 from Jun. 30, 2023）※1 as of May 10, 2024. 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 March 31, 2024（including some fixed-term contract workers.）

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3. Mobile Segment（1）Overview
モバイル事業 Although unit sales prices increased due to higher product prices, the number of customers
visiting stores continued to fall below the previous year's level, and the withdrawal of
unprofitable stores implemented at the end of the previous fiscal year also contributed to adecrease in sales volume.
 In the carrier store division, profits were maintained at the same level as the previous year
by strengthening sales of peripheral products for cell phones. In the non-carrier store division,
profitability improved due to the withdrawal of unprofitable stores implemented at the end of
the previous period. As a result, segment profit increased.

Net sales（in millions of yen）

Operating profit（in millions of yen）

2,000

50
1,608

1,569

1,500

42
40
30

1,000
20
500

0

11

10

FY2023
Jul.ʼ22-Mar.ʼ23

FY2024Jul.ʼ23-Mar.ʼ24

0

FY2023
Jul.ʼ22-Mar.ʼ23

FY2024Jul.ʼ23-Mar.ʼ24

14

4. Recent topics（1-1）Game segment■September 28, 2023
『Infinity Strash: DRAGON QUEST The Adventure Of Dai』
released（developed by Game Studio Inc.）[PS5, PS4, Nintendo Switch, Steam, Xbox Series X|S, Microsoft Store]Ⓒ Riku Sanjo, Inaba Koji／SHUEISHA, The Adventure of Dai Production Committee, TV TOKYO© 2023 SQUARE ENIX CO., LTD. All Rights Reserved.

15

4. Recent topics（1-2）Game segment■July 29, 2023
・Opened a booth at the 6 th Working Kids Adventure, a work
experience event
We provided an opportunity to experience game development at
the Shiroi-shi Shiroi Community Center.
(Game Studio Inc.)■August 1, 2023
“telegur” supports KING OF TIME in addition to TeamSpirit, andTeams in addition to Slack.
(Tech Flag Corporation)■August 24, 2023
Aiming Inc. has released 『Is It Wrong to Try to Pick Up Girls in a
Dungeon?: Battle Chronicle』, a game we helped develop.
(Game Studio Inc.)16

4. Recent topics（1-3）Game segment■September 21, 2023
『EasIS』 released（Wit One Inc.）
EasIS is a “comprehensive social listening service”. Information collected based on
set words is immediately analyzed by AI, scrutinized by humans for higher accuracy,
and provided as an optimal report with narrowed down information and abstracts
to help you make decisions.

・September 21-23, 2023. Exhibited at the Business Day of Tokyo Game Show 2023
・October 25-27, 2023. Exhibited at 14th Japan IT Week Autumn: 10th Next Generation EC & Store EXPO
17

4. Recent topics（1-4）Game segment■March 7, 2024
『Kagonotori: THE BIRD IN THE CAGE』 is released on Fortnite.
It is a project that utilizes the UEFN.
（developed by Game Studio Inc.）18

4. Recent topics（2）Mobile segment■July 6, 2023
・Opened “iCracked Store in Beisia Maebashi SouthMall” in Gunma.
(NEPRO CREATE Co., Ltd.)19

Ⅱ. Forecasts for FY2024

20

1. Forecasts for FY2024（1）Full Year Consolidated Earnings Forecast We have revised our full-year earnings forecasts as follows in the"Notice of Revision of Earnings Forecasts" dated May 10, 2024.
（in millions of yen）

FY2024Previous Forecast

FY2024
New Forecast

Change

9,950

9,690

(260)

10,131

Operating profit

200

100

(100)

(239)

Ordinary profit

180

90

(90)

(260)

Profit attributable toowners of parent

360

260

(100)

(469)

EBITDA※

310

210

(100)

(113)

Jul.ʼ23-Jun.ʼ24

Net sales（Reference）
FY2023 Results
Jul.ʼ22-Jun.ʼ23

Jul.ʼ23-Jun.ʼ24※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

21

1. Forecasts for FY2024（2）Business Outlook
Game
Sales in the game business are expected to be lower than the previous forecast.
From the first quarter onward, the period between the completion of development
and the next round of new orders, we have been able to offset the impact of theinitially anticipated downturn in performance with short-term and small-scale
projects. In addition to the declining trend in sales mainly due to the downsizing andtermination of titles under operation, Orders in the fourth quarter are expected to be
decreasing, and the start of the next projects is also expected to be delayed.
Although part of the negative impact of the above decrease in sales will be containedby controlling outsourcing costs and other costs, operating income in the gamebusiness is expected to be lower than the previous forecast.

MobileThe outlook for the mobile business for the current fiscal year is generally in linewith the previous forecast.

22

2. Forecasts by Segment（1）Sales Forecast by Segment（in millions of yen）
10,000

7,500
5,000
2,500
0

Game

MobileFY2023 Result

FY2024 Forecast

Percentage of net sales by segment
FY2023 Result

FY2024 Forecast
MobileMobile

21%

20%
Game
79%

Game
78%

23

2. Forecasts by Segment（2）Breakdown of full-year operating income forecast
The full-year operating income forecast is 100 million yen.

（in millions of yen）
600

OthersMobile

400

200

Game

Goodwill
amortization

Intersegment
eliminations andCorporate
expenses※

Operatingincome0※ Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

24

Ⅲ. Company Profile25

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, 2023)
Number of Employees: consolidated 979 (as of March 31, 2024. It includes 78 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 (now DELTA ENGINEERING Co.Ltd.) 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.
Transferred a portion of TOTEC (now DELTA ENGINEERING Co.Ltd.) 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.

26

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.

Game

MobileGame development, post-launch operations and customer support

au shopcell phone store PiPoPark
iCracked Store※ Wit One Okinawa joined our group in March 2020.
※ Tech Flag Corporation was established in July 2020 to strengthen the Group's technological collaboration andpromote productivity improvement.
27

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

Developer

Development

Selling

Operation

distribution

Product

Publisher

Purchase

ConsumerContent
PayingRoyalty※※ Sales and other conditions may need to be met for royalty accrual.

28

2. Game Business（2）Services for mobile app games
 Scope of each companyʼs game business
Post-launch Operations
Planning and Development

Event planning
Development ofadditional content

Monitoringuser voice andapp behavior

User support
Web site/SNS
KPI Analysis

Localization
Translation
Market Analysis

29

Inquiries regarding this document

Contact details
NJ Holdings Inc.
Investor Relations Office
Email︓ir＠njhd.jp
URL︓https://www.njhd.jp/ir/30