Fiscal Year Ended June 30, 2021 (FY2021)

Results of Operations
Explanatory Material

August 11, 2021
HOPE, INC.
[6195]

Corporate Philosophy

Providing new value to citizens
through local governments,

and promoting growth of the company
and its people

Copyright (C) 2021 HOPE, INC.

02

Company Overview
Company name

HOPE, INC.

EstablishedFeb. 2005 (fiscal year-end: Jun.)

Representative

Takayasu Tokitsu, CEO

Securities code

6195 (listed on the TSE-Mothers/FSE Q-Board on Jun. 15, 2016)

Employees(consolidated)

168 (as of the end of Jun. 2021, including temporary employees)

Business

Services created specifically for local governments

Head office

MG Yakuin Building 1-14-5, Yakuin, Chuo-ku, Fukuoka, Japan

History

Feb. 2005 Founded(Advertising Business, Energy Business, Jichitai Works Business)

Oct. 2020

Jun. 2006 Launched SMART RESOURCE SERVICE
Sep. 2013 Launched SMART CREATION SERVICE“Machilet”
Jul. 2014

Launched “Machiiro,” an app that connects
local governments and local residents

Established a wholly owned
subsidiary HOPE ENERGY, INC.

Nov. 2020 Developed AI for forecasting market pricesof electricity (Energy Business)
Started supplying Kai, a web conferencing tool
created in Japan

Jun. 2016 Listed on TSE-Mothers and FSE Q-Board

Mar. 2021 Announced participation in the private-sector
trainee program of the city of Shijonawate
in Osaka prefecture

Dec. 2017 Issued the first edition of“Jichitai Works”

Jun. 2021

Mar. 2018 Registered as an electricity retailer
and launched “GENEWAT”

Launched SMART FR CONSULTING SERVICE
Launched the Jichitai Works Free Name Card service

Jul. 2021

Renamed the Media Business“Jichitai Works Business”

Aug. 2014 Started B-to-G solutions business

May 2020

Started Jichitai Works HAxSH
Copyright (C) 2021 HOPE, INC.

03

Contents

I. FY2021 Financial Highlights
II. Topics
III. FY2022 Outlook
IV. Business Environment and Growth Strategies
V. 2020 VISION
VI. Appendices

Copyright (C) 2021 HOPE, INC.

04

I. FY2021 Financial Highlights
Application of the netting method in the Energy Business• Unless specified otherwise, all figures in this presentation use the netting method* that is expected to be used due to the application of the Accounting Standard for Revenue Recognition(Accounting Standards Board of Japan Statement No. 29).
• The use of this standard is required beginning with the fiscal year ending in Jun. 2022. However, because the performance of the Energy Business, which is a major component ofconsolidated results of operations, has a significant effect on investment decisions, both net and gross figures are shown in this presentation in order to facilitate easy comparisons withperformance in prior years and to provide a thorough explanation of results of operations.
• The application of the netting method will have no effect on earnings at all levels.
*With the netting method, in accordance with the renewable energy feed-in tariff system in Japan, fees received from customers (sales) and payments to the cost adjustment organization(cost of sales), which are equal to fees received, offset each other, resulting in the recognition of net revenue. Figures that do not use netting are designated in this presentation as using thegross recognition method.

Start of consolidated financial statements• Due to the establishment of HOPE ENERGY, INC., which is a wholly owned subsidiary, HOPE, INC. changed from non-consolidated to consolidated financial statements beginning with thesecond quarter of the fiscal year ended in Jun. 2021. As a result, this presentation has both consolidated and non-consolidated financial information.
• Numbers are rounded down and percentages are rounded up or down to the first decimal place.
• All documents referenced in the following pages are in Japanese version only.

Copyright (C) 2021 HOPE, INC.

05

Impact of COVID 19

Response to COVID-19
Started a COVID-19 Response Team

Monitors health of employees and makes preparations for responses to outbreaks.

Established a teleworking infrastructure

Created an environment that facilitates teleworking for a broad range of tasks.

Online activities and no outings for businessAs a rule, the internet is used for all meetings with people outside the company.

Effect on business operations
Advertising/Jichitai Works BusinessNo significant effect at this time, but some companies may start to reduce their advertising activities.
There is also a risk that financial difficulties at advertisers may delay payments for some receivables or make it
impossible to collect some receivables.

Energy BusinessAlthough the downturn in the demand for electricity associated with temporary closings of schools and other public-sector
buildings has stopped, the COVID-19 crisis may continue to have effects on electricity demand and the purchases ofelectricity.

Copyright (C) 2021 HOPE, INC.

06

Financial Summary (FY2021)

FY2021 Results(consolidated)

Sales were up 128.1% from one year earlier to an all-time highHigh market price of electricity and power shortage imbalancefees* had a big negative impact on operating profit■Net sales¥28,446 million (up 128.1% YoY)

〈Gross recognition method: ¥34,617 million〉■Operating profit¥(6,897) million (¥1,020 million in FY2020)

Advertising Business

Energy Business

Jichitai Works Business

Sales down and earnings up due
to measures for the proper sizeof this business

Earnings were less than planned because
market price of electricity stayed high inthe fourth quarter of FY2021

Sales and earnings growth due to anincrease in B-to-G solutions orders■Net sales■Net sales■ Net sales¥1,719 million (down 13.5% YoY)
■Segment profit¥ 328 million (up 7.5% YoY)

¥ 26,494 million (up 156.2% YoY)

<Gross recognition method: ¥32,665 million>■Segment profit¥(6,926) million in FY2020)(¥1,056 million¥ 228 million (up 71.2% YoY)
■ Segment profit¥58 million (up 48.6% YoY)

* < > is ﬁgures using the gross recognition method.
*An imbalance fee is paid when a company selling electricity is unable to supply the required amount of electricity over any 30-minute period and must purchase electricity
from a utility to cover the shortfall. This fee is included in the cost of sales of the energy business.
Copyright (C) 2021 HOPE, INC.

07

FY2021 Income Statement Highlights
FY2020(Millions of yen)

Net sales

Results(non-consolidated)

Comp.

SG&A expenses

1,240

Operating profit

1,020

Ordinary profit

1,012
665

Comp.

28,446〈14,407〉

2,261

Results(consolidated)

12,470Gross profit

Profit attributable toowners or parent

FY2021+128.1%〈+140.3%〉〈34,617〉18.1%(5,843)

10.0%

1,053

8.2%

(6,897)

8.1%(6,937)

5.3%(6,963)〈15.7%〉〈8.6%〉〈7.1%〉〈7.0%〉〈4.6%〉

YoY change(20.5)%〈(16.9)%〉3.7%〈3.0%〉(15.1)%(24.2)%〈(19.9)%〉(24.4)%〈(20.0)%〉(24.5)%〈(20.1)%〉* < > is figures using the gross recognition method.

Copyright (C) 2021 HOPE, INC.

08

Quarterly Sales• Quarterly sales increased 90.5% YoY due to higher volume of electricity soldin the Energy Business in 4Q.

Up
90.5%
YoY

12,00010,372〉〈12,806〉

Others111

Jichitai Works Business

10,000

Energy Business
Advertising Business(Millions of yen)

8,000

5,445

〉
〈6,325〉6,000〉〈7,167〉

32

80

4,000

420

2,000

6,052

〉
〈420〉

6
17〈17〉
17〉

556

〉
〈560〉

11
39〈44〉
44〉

396

505

1Q

2Q

2,019

658

〉
〈672〉

30
91〈106〉106〉〉〈2,208〉54
1,055〈1,244〉
1,244〉535

03Q

FY2019 (non-consolidated)

909

4Q

2,551

〉
〈2,934〉

1,665〉〈1,897〉

14

23
2,100

5,666

〉
〈6,876〉

46

38

9,571

〈12,005〉
12,005〉

2,808〉〈3,249〉

15

4,622

5,721

5,267

5,934

〈5,503〉
5,503〉〈6,837〉
6,837〉〈6,477〉
6,477〉〈7,345〉
7,345〉

298

359

372

1Q

2Q

2,352

1,263

〈2,483〉2,483〉〈2,793〉
2,793〉

386

426

431

742

1Q

2Q

3Q

4Q

〈1,496〉
1,496〉

6,355〉〈7,765〉

FY2020 (non-consolidated)(non-consolidated) (consolidated)

3Q(consolidated)

689

4Q

(consolidated)

FY2021*〈 〉is figures using the gross recognition method.
Copyright (C) 2021 HOPE, INC.

09

Quarterly Operating Profit• The market price of electricity on the Japan Electricity Power Exchange (JEPX) was higher than
expected. The Energy Business fourth quarter segment profit was down 75.8% from one year earlier.
• The advertising and Jichitai Works Businesses achieved record-high earnings.
• Corporate expenses increased temporarily in 4Q FY2020 mainly due to fiscal year end bonus
payments and revisions to office space layouts.
FY2019 (non-consolidated)
1Q

2Q

Advertising
Business

(43)

(11)

Energy Business(7)

Jichitai WorksBusiness

FY2021
2Q

3Q

4Q(consolidated)(consolidated)(consolidated)

(2)

25

59

245

808

762

(371)

(7,513)

195

(3)

42

5

7

1

44

(1)

0

(7)

(9)

(8)

(8)

(21)

(66)

(76)

(74)

(150)

(68)

(80)

(75)

(85)

(56)

16

122

937

686

(427)

(7,535)

379

1Q

43

295

(4)

13

51

244

(7)

2

105

19

79

149

(5)

(7)

0

23

(2)

2

Others

0

0

0

(4)

(2)

Adjustments

(68)

(74)

(66)

(87)

Total

(124)

(100)

(19)

332

(corporate expenses)

2Q

3Q

1Q

4Q

(Millions of yen)

3Q

FY2020 (non-consolidated)
4Q(nonconsolidated)*Standards for the allocation of corporate expenses were revised to more accurately show segment earnings. As a result, segment earnings and corporate expenses havechanged beginning with 1Q FY2020. The changes were not applied to FY2019 because the effect is negligible. The new standards have no effect on total earnings.

Copyright (C) 2021 HOPE, INC.

10

Advertising Business

Sales by Segment• Productivity continues to improve because of measures to achieve the proper size of this business;
activities were strengthened for development of new services
Others900

SMART CREATION SERVICE
800

Down
7.1%
YoY

909
82

742

SMART RESOURCE SERVICE(Millions of yen)

700

689

94

77
600
500
400

505
396
33

60
52

535

482

38
89

386

12

200

95

73

300

37

17

350

391

407

426

431

394

42

298

82

66
3

345

295

293

305

1Q

2Q

3Q

100

254

359

372
40

82

75

35

228

240

1Q

2Q

372

256

239

0

1Q

2Q

3Q

FY2019 (non-consolidated)

4Q

FY2020 (non-consolidated)
Copyright (C) 2021 HOPE, INC.

4Q

(non-consolidated) (consolidated)

3Q(consolidated)

4Q(consolidated)

FY202111

Energy Business

Sales by Segment• The number of contracts submitted for bids is normally low in the fourth quarter of every fiscal year.
For most fourth quarter winning bids, electricity sales start in July.
• HOPE, INC. plans to start using a consolidated subsidiary to operate the electricity
Up
107.1%
retail sales business of the Energy Business.
YoY
10,0009,000
8,000(Millions of yen)

7,000
6,000
5,000

9,571

〈12,005〉

4,000
3,000

1,055

2,000
1,000
0

17

39

91

〈17〉

〈44〉

〈106〉

1Q

2Q

3Q

〈1,244〉〈1,496〉4Q

1Q

FY2019 (non-consolidated)■ Winning Bids
*As of confirmationof result of bids

FY2019FY2020＊
FY2021＊

4,622

1,263

2,352

2,100

〈2,483〉〈2,793〉

2Q

3Q〈5,503〉

4Q

5,721〈6,837〉

1Q(non-consolidated)

FY2020 (non-consolidated)

5,934

5,267

〈6,477〉2Q(consolidated)〈7,345〉

3Q(consolidated)

4Q(consolidated)

FY2021*〈 〉is figures using the gross recognition method.

1Q (Jul.-Sep.)

2Q (Oct.-Dec.)

3Q (Jan.-Mar.)

4Q (Apr.-Jun.)

Total

Not disclosed

Not disclosed

Not disclosed

Not disclosed

70
177

96
201

337
426

77
55

142
580
859

Copyright (C) 2021 HOPE, INC.

12

Energy Business

Segment Profit• The Energy Business segment profit amounted to ¥(6,926) million• There was a big negative impact from the high market price of electricity and the January imbalance
fee of about ¥6.5 billion (including tax), resulting in a higher cost of purchasing electricity.

Directpurchases

Supply of electricity (retail)

Procurement ofelectricity

Local governments(customers)Openmarketpurchases

Requirement to pay
imbalance fees

Energy company

How the energy business electricity(1) Direct purchases

Uses fixed-rate agreements with suppliers ofelectricity for the supply of electricity in the future.
The cost of this electricity is usually higher thanmarket prices.

(2) Open market purchases using the JEPXElectricity is purchased on the JEPX andprices are determined by seasonal factors
as well as the weather and other considerations.

Payment for electricity

Supplementary supply of electricity

How shortfall imbalance fees are triggered

When the demand for electricity at a customer exceeds the amount of electricity
provided by the retailer of electricity, the company distributing electricity covers
the shortfall. If this happens, the retailer of electricity is required to pay am
imbalance fee to the electricity distribution company to cover the cost ofelectricity purchased to cover the shortfall.
Electricity retailers purchase and sell electricity based on forecasts for the power
requirements of their customers. Imbalance fees are normally very small but can be
incurred at any time. The large imbalance fee in FY2021 occurred because of the difficultyof open market electricity purchases and the effects of market prices and the tight supplyof electricity on the cost of electricity.

Copyright (C) 2021 HOPE, INC.

13

Segment Profit

Energy Business• The high market price of electricity affected the cost of procuring electricity and the imbalance fee
rate and volume（

Higher open market price ofelectricity

JEPX Market Price of Electricity Period: Jan. 1, 2011 – Jun. 30, 2021
DA-24(¥/kWh)160（

Increase in the imbalance fee
rate and volume

HOPE, INC. Electricity Supply Imbalance

Period: Jul. 1, 2019 – Mar. 31, 2021

(kWh)45,000,000*On Jan. 17, 2021, the Ministryof Economy, Trade and Industry
announced a ¥200/kWh cap forthe imbalance fee.

40,000,000

140

35,000,000

120

40,000,000

100

25,000,000*HOPE, INC.’s imbalance fees inJan. 2021:
Jan.1 - Jan. 16: About ¥4.8 billion
Jan. 17 - Jan. 31: About ¥1.7 billion

20,000,000

80

15,000,000

60

10,000,000

40

Mar . 2021

Jan . 2021

Nov . 2020

Sep . 2020

Jul . 2020

May . 2020

Mar . 2020

Jan . 2020

Jul . 2019

Jan. 1.2021

Jan. 1.2020

Jan. 1.2019

Jan. 1.2018

Jan. 1.2017

Jan. 1.2016

Jan. 1.2015

Jan. 1.2014(5,000,000)
Jan. 1. 2013

0Jan. 1. 2012

0
Jan. 1. 201120

Nov . 2019

5,000,000

Sep . 2019

(yen)
180

Big increasein
JEPX price(Reference) Ministry of Economy, Trade and Industry
Special approval for an imbalance fee rate cap of ¥200/kWh in response to the rapid increase in the wholesale market price of electricity was announced on Jan. 15, 2021.
https://www.meti.go.jp/press/2020/01/20210115007/20210115007.html
Copyright (C) 2021 HOPE, INC.

14

Jichitai Works Business

Sales by Segment• The Media Business was renamed the Jichitai Works Business on July 1, 2021 to strengthen
the Jichitai Works brand.
• Achieved year-on-year growth in all quarters

120

Up
39.5%
YoY

(Millions of yen)

100

80

60

111
80

40

54
20

30

6
0

14

11

1Q

2Q

3Q

FY2019 (non-consolidated)

4Q

1Q

23
2Q

32

38

1Q

2Q

46

15
3Q

4Q

(non-consolidated) (consolidated)

FY2020 (non-consolidated)

3Q(consolidated)

4Q(consolidated)

FY2021*The first issue of Jichitai Works magazine was Dec. 22, 2017 and the magazine’s new design and format started in Jun. 2020.

Copyright (C) 2021 HOPE, INC.

15

Components of Changes in Operating Profit■ Major components of changes
Advertising Business
30,00025,000

Energy Business(267)

Advertising Business+16,154

Energy Business(223)+24,291

Jichitai Works Business+95

Jichitai Works Business

+18

Other

(6)

Other

(4)

Personnel expenses

(20)

Other

(167)

20,000(Millions of yen)

15,000

Increasein sales

10,0005,000

0FY2020Operating profit

1,020+15,975

Increase incost of sales

FY2021
Operating profit(24,080)

Increase in
SG&A expenses(6,897)(187)(5,000)(10,000)

Copyright (C) 2021 HOPE, INC.

16

Balance Sheet Highlights• Negative equity at the end of FY2021 was ¥2,482 million, about ¥2 billion less than negative equityof ¥4,514 million at the end of the third quarter.
• We are continuing to study numerous potential measures to return to positive equity.
FY2020(Millions of yen)(non-

Results consolidated)

FY2021Comp.

Results（consolidated)

Comp.

ChangeCash and deposits

1,300

20.0%

1,932

17.7%

+632

Notes and accounts receivable-trade

3,629

55.7%

7,338

67.1%

+3,709

477

7.3%

429

3.9%

(48)

5,750

88.2%

10,356

94.7%+4,606

769

11.8%

584

5.3%

(184)

6,519

100.0%

10,941100.0%+4,422

Accounts payable-trade

2,747

42.1%

11,294103.2%+8,546

Short-term borrowings

433

6.6%

950

8.7%

+517

Current portion of long-termborrowings

386

5.9%

366

3.4%

(20)

4,485

68.8%

12,841117.4%+8,356

Bonds payable

100

1.5%

100

0.9%

+0

Long-term borrowings

674

10.3%

482

4.4%

(191)

Non-current liabilities

774

11.9%

582

5.3%

(191)

Total liabilities

5,259

80.7%

13,424122.7%+8,164

Total net assets

1,259

19.3%

(2,482)(22.7%)(3,742)

Total liabilities and net assets

6,519

100.0%

10,941100.0%+4,422Inventories

Current assets
Non-current assets
Total assets

Current liabilities

Copyright (C) 2021 HOPE, INC.

17
62

Financial Highlights• Results of fund procurement activities

To return to positive equity, HOPE, INC. sold stock through a third-party allotment on April
30, 2021 and issued and exercised the Ninth Share Acquisition Rights. This resulted in the
procurement of about ¥2,100 million. (As of August 2)
1

Stabilize Energy
Business earnings• Respond to market price volatility risk
Increase direct purchases of electricity fromsuppliers in the future as much as possible
while taking into consideration the availabilityof funds.

• Installment payments of theimbalance fee
HOPE, INC. made the fifth installment payment
on August 11 for the January 2021 imbalancefee. About ¥3.6 billion of the imbalance fee ofabout ¥6.5 billion has been paid.

2

Fund procurement activities• Issued and exercised the Ninth Share Acquisition Rights
Although the share acquisition rights have been exercised, the price of HOPE,
INC.’s stock is currently below the minimum exercise price of the rights.

• Maintaining sound relationships with financial institutions,primarily the main banks serving HOPE, INC., and continuing
to explore many options for procuring funds• Plan to amend the Articles of Incorporation to increase theauthorized number of shares in order to increase the flexibility
for any upcoming fund procurement activities*On May 18, 2021, HOPE, INC. purchased and canceled all remaining 1,000 units of the Seventh Share Acquisition
Rights allotted to Mizuho Securities that was announced on Aug. 11, 2020.

*(Reference) Refer to the following for more information.
Responses to the Sudden Increase in the Wholesale Price of Electricity, Jan. 29, 2021 (Ministry of Economy, Trade and Industry)
https://www.meti.go.jp/press/2020/01/20210129002/20210129002.html
Additional Responses to the Sudden Increase in the Wholesale Price of Electricity in Jan. 2021, Mar. 19, 2021 (Ministry of Economy, Trade and Industry)
https://www.meti.go.jp/press/2020/03/20210319010/20210319010.html
Notice of Acquisition and Cancelation of Seventh Share Acquisition Rights (with Exercise Price Adjustment and Exercise Permission Clauses) through Third-party Allotment, Apr. 30, 2021
https://ssl4.eir-parts.net/doc/6195/tdnet/1960048/00.pdf

Copyright (C) 2021 HOPE, INC.

18

II. Topics

Copyright (C) 2021 HOPE, INC.

19

Divestiture of Electricity Retail Sales Business andTopics1. Absorption by HOPE ENERGY, INC.
• The electricity retail sales business of the Energy Business will be transferred to HOPE ENERGY, INC.
• The transfer is to take place on December 1, 2021 (tentative), which will allow a subsidiary to focus
resources on the operation of this business.

■ Purpose of this divestiture•Increase the speed of the electricity retail sales businessand make it more competitive■ Goals for the Energy BusinessSubsidiary• Reduce risk exposure by continuing to operate this businessat a subsidiary while downsizing operations to reflect market
conditions• Continue to seek more ways to hedge risks→Establish a framework for the consistent profitability ofthis businessSubsidiary■ Basic policy for group management•Continue to study ways for the proper allocation of thegroup’s resources among the energy and all otherbusinesses, based on reorganizations and other measures inevery business and activities to start new businesses.

Subsidiary(Reference) More information is in the Aug. 11, 2021 press release “Notice concerning Company Divestiture (Absorption and Divestiture).”Copyright (C) 2021 HOPE, INC.

20

Topics2.

Advertising Business

Order Received for Japan Meteorological
Agency Website Advertisements• On July 1, 2021, HOPE, INC. started performing services for advertisements placed on the websiteof the Japan Meteorological Agency*.
• HOPE, INC. and Geniee, Inc. (Securities code: 6562) jointly developed an own advertisement
distribution system and plan to provide this service for other local governments.

Efficient use of advertisements on public sector websites■ Conventional public sector websites• To post banner advertisements on their websites
are the mainstream format among the public sectors.
• Although this simplified the oversight of advertisements, it
was difficult to determine the benefits of these advertisements
in relation to the cost.

■ Advantages of the new jointly developed system• Only advertisements that have been approved in advance are posted to maintain the trustworthy of the website.
• Advertisers have many options for ad placement fee structures, such as fees based on impressions or clicks andother formats.
*Advertisements are suspended while streaming press conferences, announcing warnings, asking people to evacuate and when the website is used to distribute other vital information.
See the Jun. 25, 2021 press release titled “Restart of Advertisements on the Japan Meteorological Agency Website”
https://www.jma.go.jp/jma /press/2106/25c/20210625_koukoku.pdf(Reference) For more information, see the May 26, 2021 press release titled “HOPE,INC. to Support Advertisements on the Japan Meteorological Agency Website Starting in Jul. 2021 – Usesa system developed with Geniee and to be provided to local governments too” https://ssl4.eir-parts.net/doc/6195/tdnet/1977906/00.pdf

Copyright (C) 2021 HOPE, INC.

21

Topics3. Advertising Business Start of New Services• Started SMART FR CONSULTING SERVICE in the Advertising Business in June 2021
• More efficient increase in revenue for local governments by providing assistance beginningwith development of advertisement menus

More than ad sales – Starts with support for ad menu development■ Assistance for developing public sector website ad menus• The SMART FR CONSULTING SERVICE is designed as asolution for local governments that want income fromadvertisements but do not know how to accomplish this.

■ SMART FR CONSULTING SERVICE• Based on the concept of generating income that helps
improve communities, this service encompasses everythingfrom ad sales to consulting for ad menu expansion• The “FR” is short for financial resources• A source of comprehensive proposals covering much morethan simply advertisements in order to generate income for
local governments(Reference) For more information, see the Jun. 15, 2021 press release titled “HOPE,INC. Starts SMART FR CONSULTING in the Advertising Business – Every step from attracting advertisers
to creating media and media use consulting in order to generate income for local governments”
https://ssl4.eir-parts.net/doc/6195/tdnet/1989442/00.pdf

Copyright (C) 2021 HOPE, INC.

22

Topics4.

Jichitai Works BusinessPhysician Recruiting Support for
COVID-19 Vaccinations• Established an alliance with CHANGE,Inc. (Securities code: 3962), which provides assistancefor the physician and pharmacist recruiting service of the M3 Group.
This alliance uses public-private sector cooperation to help local governments recruit physicians
to give people COVID-19 vaccinations• This alliance is an example of how HOPE,INC. is fully utilizing its local government sales skills,
a core strength of the company.

■ Joint activities with CHANGE,Inc.
• This alliance combines different strengths in the local government
services category. CHANGE,Inc. has digital technology skills and
HOPE, INC. has local government sales and bidding skills.
• HOPE, INC. will use its local government sales expertise tosupport CHANGE,Inc..

■ Uses a B-to-G solutions* service• Strengthens marketing activities centered on public-private sector cooperation in order to provide vaccinations
faster and to more people• Information about the vaccination needs of local governments, telemarketing, joint seminars, assistance for
attracting people, physician recruiting needs, and other items is passed on to the M3 Group*Formerly B-to-G marketing(Reference) For more information, see the Jun. 21, 2021 press release titled “HOPE,INC. Helps Meet Local Government Physician Recruiting Needs for COVID-19 Vaccinations – Alliance With
CHANGE,Inc. which Provides Assistance for the Physician and Pharmacist Recruiting Service”
https://ssl4.eir-parts.net/doc/6195/tdnet/1990702/00.pdf

Copyright (C) 2021 HOPE, INC.

23

Topics5. Jichitai Works Business Start of New Services• In June 2021, the Jichitai Works Business started the Jichitai Works Free Name Card service• This service will expand the government employee database, which is the key element of the
Jichitai Works BusinessSupports government employees and expands the database■ The Jichitai Works Free Name Card service
Our survey revealed that most local government employees
do not receive name cards. This is why we started a namecard service that gives each employee 100 name cards
every year at no charge.
For more information: https://meishi.jichitai.works/■ A tool that supports local government
employees while expanding our database
Free name cards meet an important need of government employees and enable us to build a larger local government employee database. We plan to use this information to further enlarge and upgrade our lineup of services(as a step for accomplishing our government employee platform concept).
(Reference) For more information, see the Jun. 15, 2021 press release titled “HOPE,INC. Starts the Jichitai Works Free Name Card Service for Government Employees – Preliminary sales
activities in Jun. 2021 and full-scale launch in August”
https://ssl4.eir-parts.net/doc/6195/tdnet/1990019/00.pdf

Copyright (C) 2021 HOPE, INC.

24

III. FY2022 Outlook

Copyright (C) 2021 HOPE, INC.

25

FY2022 Plan (Income Statement)
FY2020(Millions of yen)

Net sales

Results(non-consolidated)

12,470

FY2021Results(consolidated)

28,446FY2022(consolidated)

Plan

YoY change

34,850+22.5%〈14,407〉〈34,617〉Gross profit

2,261(5,843)

SG&A expenses

1,240

1,053

Operating profit

1,020(6,897)479

Ordinary profit

1,012(6,937)

424

Profit attributableto owners of parent

665(6,997)398

Net income per share

117.97yen＊(1,106.57)yen

32.18yen* < > is figures using the gross recognition method. HOPE, INC. is using the new revenue recognition standard starting in FY2022, so gross figures are not shown for FY2022.
* Net income per share is adjusted to reflect the 1-to-4 stock split effective on Jan. 1, 2020.

Copyright (C) 2021 HOPE, INC.

26

Assumptions Used for the FY2022 Plan
• For the FY2022 earnings forecast, the following assumptions are used for estimates for
major variable items in the Energy Business.
Estimated regional composition of energy to be supplied
Hokkaido

Tohoku

Tokyo

Chubu

Hokuriku

Kansai

Chugoku

Shikoku

KyushuTotal

12.34%

4.32%

26.48%

35.30%

1.51%

7.33%

8.91%

2.62%

1.19%

100.00%1 Cost of open market purchases of electricity■• Forecast for cost of electricity purchased on the JEPX
These estimates are weighted averages using the expected electricity prices and amount purchased bycustomers of HOPE, INC. in each region
Market priceforecast(Yen/including tax)

2021

2022

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

9.82

10.69

9.50

8.09

8.30

9.84

11.07

8.39

7.47

7.28

7.65

7.75

2 Fuel cost adjustment■• Forecast for the fuel cost adjustment
These estimates are weighted averages using the expected electricity prices and amount supplied tocustomers of HOPE, INC. in each region*The fuel cost adjustment allows revising electricity rates paid by customers in order to reflect an increase or decrease in the cost of imported fuel used at thermal power plants.
The adjustment is based on the difference between the average price of fuel (using 3-month trade statistics for prices of crude oil, LNG and coal) and reference fuel prices.

Weighted
average fuelcost adjustment(Yen/including tax)

2021

2022

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

¥(2.73)¥(2.65)¥(2.57)¥(2.46)¥(2.38)¥(2.29)¥(2.21)¥(2.13)¥(2.06)¥(1.91)¥(1.92)¥(1.91)

Copyright (C) 2021 HOPE, INC.

27

Consistent Sales Growth

40,00034,85035,00028,446〈34,617〉25,00020,00012,47015,000〈14,407〉

10,000

3,654

5,000

695

512

635

1,142

1,592

1,774

2,269

〈3,862〉

Non-consolidated

FY
2
(P 02
la 2
n)

21
20
FY

20
20
FY

19
20
FY

8
01
FY
2

17
20
FY

01
6
FY
2

5
01
FY
2

20
14
FY

20
13
FY

01

2

0

FY
2

(Millions of yen)

30,000Consolidated* FY2014 was an irregular nine-month period because of a change in fiscal year-end.
* < > is figures using the gross recognition method.
Copyright (C) 2021 HOPE, INC.

28

FY2022 Business Segment Sales Plan

Jichitai Works Business
40

Energy BusinessApprox. ¥34.8 billion

Advertising Business
35

Approx. ¥28.4 billion

30

Approx. ¥0.43 billion〈34.6〉(Billions of yen)

Approx. ¥0.22 billion
25

20

Approx. ¥32.87 billion
15

Approx. ¥26.49 billion〈32.66〉10

50

Approx. ¥1.71 billion

Approx. ¥1.53 billion

FY2021

FY2022(Plan)*〈 〉is figures using the gross recognition method.

Copyright (C) 2021 HOPE, INC.

29

IV. Business Environment and
Growth Strategies

Copyright (C) 2021 HOPE, INC.

30

Advertising Business

Market Summary• HOPE, INC. created a new market with its Advertising Business, the company’s original activity,and has provided advertising services to local governments for about 16 years.
• HOPE, INC.’s share of this market is about 11.0%.
The advertising market in Japan

Approx. ¥5.3 trillion *1
The local govt. advertising market

Approx. ¥14.0 billion *2
Approx. ¥1.5 billion *3

Target market
About 11.0%of the target market*1 Source: Survey of Selected Service Industries (May 2021), Ministry of Economy, Trade and Industry*2 Estimate of target market size assuming that all local governments used advertising services*3 FY2021 Advertising Business sales (excluding contract production of public info publications)

Copyright (C) 2021 HOPE, INC.

31

Advertising Business

Goals for FY2022• Improve profitability by achieving the proper size of this business• Aim for consistent earnings by raising productivity per employee, a new performance indicator,
while holding sales steady at a certain level■ Gross profit per medium in the Advertising Business
Gross profit per medium

Net sales *1

2,500

1,000

15,000

2,188

2,188
2,051

2,051

2,000

1,810

1,727

438
374

400

●

(Millions of yen)

600

(Thousands of yen)

(Millions of yen)

2,000

1,810
1,546

●

●

1,000

800

1,546
557

518

●

725

●

1,581
1,500

Gross profit per person *2

2,500

●

1,500

●
●

1,000

6,893

●

9,510

10,912

12,000

●

1,400

9,000

8,166

6,942

6,000

(Thousands of yen)

Net sales *1■ Gross profit per person in the Advertising Business

●

301
500

0

FY2016FY2017FY2018FY2019FY2020

FY2021

200

500

0

0

3,000

FY2018FY2019FY2020

FY2021

FY20220*1 Advertising business sales (excluding contract production of public information publications)*2 Number of advertising employees is the average for every year and excludes advertisement designers.

Copyright (C) 2021 HOPE, INC.

32

Energy Business

Market Summary

Leverage current businesswith local governments

Submit bids for new contracts by taking advantage ofexisting vendor registrations with the local governments
and other measures

Japan’s electricity market

Approx. ¥15 trillion *1
Electricity sales to local govts.

Approx. ¥1 trillion *2

Target market
HOPE, INC. serves approx.

Approx. ¥54.0 billion *3 5.4% of the target market*1 Source: Electricity and Gas Market Surveillance Commission*2 The target market as defined by HOPE, INC.
*3 Expected total sales of energy supplied for contracts received in FY2021(Includes one-year of multi-year contracts and excludes fuel adjustments and renewable energy fees)

Copyright (C) 2021 HOPE, INC.

33

Energy Business

Goals for FY2022• In FY2021, the number of winning bids was generally as expected.
• In FY2022, the electricity retail sales business will continue as a business of a group company
following the divestiture.

■ Number of bids submitted (only contracts where HOPE, INC. was eligible)
FY2021 plan/actual (contracts)
ActualPlan

Approx.4,000

859

Approx.
2,500
Approx.
3,800

Approx. 3,000

Approx. 3,000

FY2022 plan and policy◆Assumptions(1)Prices are low usually during the spring but in 2021,
JEPX prices have been higher than expected.
(2)There are concerns about the possibility of a tightsupply of electricity during the winter of 2021-2022.
Risk hedges will have to be increased because these risk
factors cannot be ignored. The cost of hedges is expected
to raise expenses, making it difficult to achieve the highlevel of profitability of prior years.

◆Plan to submit bids on fewer contracts

Total : Approx. 6,300
Successful bids
Bids submitted
Did not submit bids

Total : Approx. 7,000• Downsize to maintain proper balance
The Energy Business is more than 80% of total sales,
but exposes HOPE, INC. to substantial market risk.
HOPE, INC. will allocate resources properly from thestandpoint of maintaining a sound base for business
operations.

Copyright (C) 2021 HOPE, INC.

34

Jichitai Works Business

Market Summary• Substantial public-sector demand and still considerable growth potential
The market for promotions targeting local governments still has
much more potential, including public-private sector matching
and measures to become more competitive
Market for promotions
targeting local govts.

15.2 billion

Local govt.

Approx. ¥Public-sector demand(except national govt., construction)

Companies

Approx. ¥ 8.68 trillion * 1
Approx. ¥1.52 trillion

Approx.

¥0.22 billion*3

1%

Potential market*2

Portion for companies operating nationwide
Assumes about 1% is used for promotional activities(market for promotions targeting local governments.)

Approx. ¥ 15.2 billion*1 Calculated by HOPE, INC. using Summary of Guide to Contracts in the Public Sector – FY2018,
The Small and Medium Enterprise Agency*2 HOPE, INC. estimates based on FY2018 Administrative Project Review, Ministry of Internal Affairs andCommunications*3 FY2021 Jichitai Works Business sales

Copyright (C) 2021 HOPE, INC.

35

Jichitai Works Business

Goals for FY2022

Become a link for public-private sector collaboration and ties
among local governments based on the concept of energizing“experiences and people” at local governments.

Monitor/collect info
Local govt.

Contribute tomarket growth

Monitor･ Social issues

Need for ways
to contact local
governments･ Need for the useof private sector
partners

Companies

Provide many types of services• Broad range of activities using the Jichitai Works brand• More matching by using the internet, telemarketing and other methods

Copyright (C) 2021 HOPE, INC.

36

Jichitai Works BusinessBusiness Strategy

Business strengthening, support and creation made possible by the local government database

Local govt.

Information
Jichitai Works

Jichitai Works

Companies

Sales

Information

Jichitai Works Web

Machiiro

Sales

B-to-G solutions

Open data

Partnerships
with regional banks

Partnerships
with local govts.

Collect and store data
Establish and enlarge local govt. databases
Individuals

Organizations• Budgets• Issues, needs• Information about local govt.
and national govt. employees

Copyright (C) 2021 HOPE, INC.

37

Jichitai Works BusinessBusiness Strategy• The government employee platform concept :Enlarge business operations to cover the government employee sector in order to become theleader in businesses and services for local governments.
• The government employee sector will be a growing market for the Jichitai Works Business.

Current core competence(local govt. relations)・・・

Local govt.

Govt. employees

Local govt.

Govt. employees

Local govt.

Govt. employees

The govt. employee platform concept

Core competence enlargement
Copyright (C) 2021 HOPE, INC.

・・・
Market sectors
covered by the
Jichitai WorksBusiness

38

Reexamination of the HOPE NEXT 3 Medium-term Management Plan
• Reestablish HOPE NEXT 3 based on the elimination of negative equity• The goal is to eliminate negative equity by the end of June 2022
■ Assumptions• The original medium-term plan made the Energy Business a large share of sales and earnings.
• We reexamined the business portfolio, including new businesses, to establish a strategy for growth.

■ Timing for establishing a new plan
• In FY2022, we are focusing on making steady progress with measures to eliminate negative equity andachieving this goal by the end of June 2022.
• A new medium-term plan will be established after equity becomes positive.

■ Other items• There is no change at this time in the 2020 VISION goals for FY2030: sales of ¥100 billion, operating
profit of ¥10 billion, and a business portfolio with at least 10 services.
• There are no revisions to the expected business environment changes or business policies regarding theAdvertising Business and the Jichitai Works Business.
(Reference) Information about the Medium-term Management Plan before the reexamination is in “Medium-term Management Plan HOPE NEXT 3” announced on Aug. 11,
2020. https://ssl4.eir-parts.net/doc/6195/tdnet/1873672/00.pdf

Copyright (C) 2021 HOPE, INC.

39

FY2021 Investor Relations Activities• Plan to continue increasing the number of meetings with institutional investors by using
online meetings and expanding English-language disclosure activities.
■ Number of institutional investor meetings
240
220
200
180

233

(Meetings)

160
140

Goal:

120

120meetings

100
80
60

82

40
20
0

15

FY20179

6FY2018FY2019FY2020

FY2021*Includes online meetings and telephone calls

Copyright (C) 2021 HOPE, INC.

40

V. 2020 VISION

Copyright (C) 2021 HOPE, INC.

41

Expansion of Core Competence• Enlarge local government relations, HOPE, INC.’s core competence, to encompass the entire
government employee sector.

Current core competence(local govt. relations)・・・

Local govt.

Local govt.

Local govt.

Govt. employees

Govt. employees

Govt. employees・・・The govt. employee platform concept

Core competence enlargement
Copyright (C) 2021 HOPE, INC.

42

Expansion of Core Competence

Business domain
expansion

Govt. employees

Local govt.

Use the enlargement of the corecompetence for the diversificationof business activities in a domain
expanded to include thegovernment employee sector

Business domain
expansion

Become the leader in businesses andservices for local governments
Copyright (C) 2021 HOPE, INC.

43

Positioning of Business Units• Enlarge every business domain and increase actions for the expansion of HOPE, INC.’s corecompetence.
Measures for providing value
Additional
local govt. revenue

Enlargement of targeted domains

Local
govt.

Public-private sector
collaboration

Ads in public info
publications, banner ads, etc

Jichitai Works

Local govt. DX…

Machiiro

Machilet

SMART FR CONSULTING

B-to-G
Solutions
Jichitai Works

Jichitai Works Web

Govt.
employees

The Jichitai Works Free Name Card service

The govt. employee platform concept

Copyright (C) 2021 HOPE, INC.

44

2020 VISIONF Y2030
Net sales
Operating profit
Services¥

100 billion¥ 10 billion
10 services

Copyright (C) 20202021 HOPE, INC.

45

2020 VISION Initiatives• Start and implement initiatives for accomplishing the FY2030 goals of the 2020 VISION:
Sales of ¥100 billion, operating profit of ¥10 billion and a business portfolio with at least
10 services.

Advertising Energy

100

JichitaiWorks
Newbusiness¥¥28.4
billionNew
businessbillionNew
business

ActionsNewbusinessNewbusiness

FY2021

FY20303 services

More than 10 services

Copyright (C) 2021 HOPE, INC.

• Improve profitability ofexisting businesses• Develop new businesses•Use all existing businesses asa base for new businesses• M&A• Financial and investment
strategies

46

VI. Appendices

Copyright (C) 2021 HOPE, INC.

47

Business Segments and Services

Advertising Business
SMARE RESOURCE SERVICESMART CREATION SERVICE

Ads in public info publications,banner ads, etc.

Energy Business

Machilet

Jichitai Works Business
Jichitai Works

Jichitai Works Web

B-to-G Solutions
Jichitai Works

Machiiro*Beginning with FY2020, Machiiro has been moved from the Jichitai Works segment to others.

Copyright (C) 2021 HOPE, INC.

48

Advertising BusinessCorporate Philosophy

Local govt.
assetsProviding new value to citizens
through local governments

Utilization•Public info publications,
local government websites

Additional
local govt. revenue•Use of media space•Information distributed to residents■ Value provided
Local gov t.

•Free joint publications by local
governments and HOPE, INC.

A sourceof revenue

Copyright (C) 2021 HOPE, INC.

Opportunities
for PR

Companies49

Advertising Business 1

SMART RESOURCE SERVICE

Local governments sell ad spacein their publications

A new source of revenue for local governments

Local gov t.

Purchaseof ad spaceSaleof ad space

Payment
for ad space

Payment
for ad space

Companies■ Business model■ Examples of media■ Ad in a public info publication

Ad
Public info
publications

Websitebanner

Payslips forgovernment employees
OthersCopyright (C) 2021 HOPE, INC.

50

Advertising Business 2

SMART CREATION SERVICE (Machilet)

Production and supply of local government
pamphlets for various fields with space for ads

Local gov t.

Free joint production of pamphlets
with even more useful info

Agreement

Saleof ad space

Companies■ Business model
Production
and supplyof pamphlets■ Examples of pamphlets■ Ad in a pamphlet (child care information)
Content(child careinformation)

Child care

Empty houses

Payment
for ad space

Senior care

Advertisement(monetize space)

My ending
OthersCopyright (C) 2021 HOPE, INC.

51

Advertising BusinessContracts with Local Governments
and Number of Publications Issued

SMART RESOURCE SERVICESMART CREATION SERVICE (Machilet)(Contracts)(Publications)
1,000

462

839
800

0

21
20
FY

20
FY

FY
20
2

FY
20
1

FY
20
1

FY
20
1

344

FY
20
2

0

21

0

0

200

9

100

8

400

7

200

9

258

572

600

FY
20
1

300

280

8

309

694

685

7

400

FY
20
1

458

FY
20
1

500

*For two or more different contracts with the same local government, each contract is counted separately.
*The SMART CREATION SERVICE includes conventional pamphlets (Machilet) as well as Clear File and other special publications issued in each fiscal year. A revised definition is used fornumber of publications between FY2017 and FY2021 and these figures have been revised accordingly.

Copyright (C) 2021 HOPE, INC.

52

Advertising Business

Main Business Characteristics

SMART RESOURCE SERVICESMART CREATION SERVICE (Machilet)

1 Bids used to purchase products

1 Most production and sales at the sametime of the year

•Big swings in bids (cost of purchases)•Risk of inability to purchase a sufficient volume due to

The production and sales period starts after signing contracts

bids of other companies, etc.

2 Seasonal nature of purchases andinventory risk

with local governments

2 Large pct. of sales in the fourth quarter
About 70% of publications are issued between Apr. and Jun.

▶Most sales and cost of sales are recorded in the fourth quarter•Most SMART RESOURCE SERVICE purchases are
single transactions for an entire year (Apr. to Mar.),resulting in risk for holding large inventories

3 Effect on the next fiscal year
•Most purchases using bids submitted during the peakseason for government contract bids will have aneffect on the next fiscal year all the way to Mar.

250

Publications issued in FY2021

200

Production and sales period

150
100
50

0

Jul. Aug. Sep. Oct.
2020

Copyright (C) 2021 HOPE, INC.

Nov. Dec. Jan. Feb.

Mar. Apr. May. Jun.
2021

53

Energy BusinessCorporate Philosophy

Local govt.
electricity use

Providing new value to citizens
through local governments

New electricity
service

Lower cost ofelectricity■ Value provided
Local gov t.

Cost reduction

Copyright (C) 2021 HOPE, INC.

54

Energy BusinessStart of the electricity
sales business

GENEWAT uses the new perception of “electricity as a genericproduct” for supplying electricity at a lower price in order tohelp local governments reduce costs.

Electricity• Sale of electricity*Business does not include

generation and distribution

Local govt.

■ Business model
Payments■ GENEWAT users(mainly local governments)

Hospitals• HOPE, INC. posts sales/cost of sales
based on monthly utilization

SewageplantsCopyright (C) 2021 HOPE, INC.

Schools

City halls

•••

55

Energy Business

1

Main Business Characteristics

Contracts are received by submitting bids
• Business may be lost to competing bids of other companies when new bidding takes place
every year

2

Vulnerability to the economy and weather• Electricity sales may vary depending on the health of the economy, unseasonable summer orwinter weather, and other weather events• Wholesale prices of electricity may vary depending on the cost of buying electricity, the costof fuel, and the balance between the supply and demand of electricity

3

A low-cost business• When determining bids, the Energy Business utilizes bidding expertise acquired over many
years in the Advertising Business

Copyright (C) 2021 HOPE, INC.

56

Jichitai Works BusinessCorporate Philosophy

Local govt.

Providing new value to citizens
through local governments

Use the private sector
to solve issues

Opportunity
to collaborate
with public sector

Companies

Public-private sector collaboration
Copyright (C) 2021 HOPE, INC.

57

Jichitai Works Business 1

A Government Magazine
with New Info and Ideas

Jichitai Works• Use of advertisements to monetize publications

A HOPE, INC. publication
with useful info and ideas

Local gov t.

Collect
information

Interaction
with local govt.

Provideinformation

Payment
for ad space

Companies

for the jobs of local
government employees■ Issued four times every year

■ Issued as needed■ Jichitai Works Web

1 One of the largest circulations in Japan

Each special edition has asingle advertiser and all content
involves the advertiser’s
products and services

Articles in the printed edition of Jichitai
Works magazine are also posted on theinternet.

A comprehensive info magazine for local government
employees; circulation of up to 70,000, one of thelargest in Japan in this category(Special editions)

2 Extensive coverage

Distributed at no charge to 1,788 municipalities
and all 47 prefectural governments

3 Upgrading sharing of knowledge
Magazines include examples of innovative ideas, avariety of know-how and other content for improving
government services throughout Japan

Copyright (C) 2021 HOPE, INC.

58

Jichitai Works Business 2

B-to-G Solutions• In the B-to-G solutions, local government relationships are used for surveys to identify needs
and for holding seminars, and other activities.
In addition, sales promotion and other promotion fees from companies and a revenue sharing
model will be used for monetization.
Support for marketingand promotional
activities of companies
with products andservices for local
governments

Local gov t.

Data collection

Reports, other info

Seminars, needs surveys,
other services

Requests for assistance■ Contracted service orders received in the fourth quarter (Apr.-Jun.)•Seminars for local government employees and other services(orders from 11 companies)

Companies•Distribution of marketing materials(orders from 11 companies)•Direct mail marketing(orders from 11 companies)

Use database
to attract customers•Telemarketing(orders from 10 companies)

Identify needs•Distribution of e-magazines(orders from 2 companies)

Others* B-to-G solutions has two components: (1) B-to-G promotions (formerly B-to-G marketing), which receives orders that generate promotion fees, and (2) B-to-G comprehensive support,
which receives orders with a revenue sharing structure.

Copyright (C) 2021 HOPE, INC.

59

Jichitai Works Business 3

Jichitai Works HAxSH

Jichitai Works• A joint assistance platform for local governments and companies

Jichitai Works

Register their own
services

Service searches andexaminations

Sharing of informationof person who
downloaded their
documents

Download
documents about
services of interest

Payment of fees

Register contact
and other
information

Collaboration with local
governments creates newopportunities

Solve problems byusing private-sector
services

Companies
providingservices

Copyright (C) 2021 HOPE, INC.

Local govt.
personnel

60

Jichitai Works Business 4

An App Linking Local
Governments and Residents

Machiiro• The app provides the latest info from registered local governments by giving users access topublic info publications of local governments nationwide.
• Distribution of content for local governments and regions

Local govt.

UploadAgreement

Residents

Distribution of
governments
information
using an app*Machiiro screen sample

712,012

cumulative downloads

938 cumulative

local government contracts

Local governments
share of about

52 .5%*Total as of Jun. 30, 2021

Copyright (C) 2021 HOPE, INC.

61

Jichitai Works Business(Issue)Jichitai Works Magazine Issues

11

issued( of which)
in 4Q: 7

12

issued( of which)
in 4Q: 4

2

10•Tourism/Foreign Tourist Edition

8

11•Tourism/Foreign Tourist Edition Vol. 2•Disaster Readiness/Crisis Management Edition Vol. 2•Education and ICT Edition•Tourism/Foreign Tourist Edition Vol. 3•Disaster Readiness/Crisis Management Edition Vol. 3

4•Disaster Readiness/Crisis
Management Edition•Home Town Taxes Edition

5

6

3

(

5

of which issued
in 4Q: 2)・公務員特別号•Special
edition forgovernment employees

14

Others24

4

4Special editions
Topic-specific editions
Standard editions

0

FY2019FY2020

Copyright (C) 2021 HOPE, INC.

FY202162

Additional Local Government Revenue

Since HOPE, INC.’s inception, the Advertising Businesshas generated revenue of about ¥8.67billion for clients•SMART RESOURCE SERVICE has paid local governments
about ¥7.80 billion•Machilet has reduced local government costs byabout ¥ 0.87 billion(From HOPE, INC.’s inception through 4Q FY2021)

32.5

Cost reduction of about ¥billionsince the start of the Energy Business(Estimated cost reduction during the entire length of all current contracts)

Copyright (C) 2021 HOPE, INC.

63

Main Shareholders■ Number of shares and shareholders■ Top 10 shareholders

Number ofshares held

Total number of authorized shares

18,848,000 shares

No.

Number of shares issued

7,775,100 shares

1

E.T. Co., Ltd.

1,340,000 shares

Number of shareholders(with voting rights)

5,352

2

Takayasu Tokitsu

1,077,400 shares

3

GOLDMAN SACHS INTERNATIONAL

352,817 shares

4

BNY GCM CLIENT ACCOUNTJPRD AC ISG (FE-AC)

317,180 shares

5

MACQUARIE BANK LIMITEDDBU AC

250,000 shares

6

Individual shareholder

247,800 shares

7

Masaki Kuge

240,000 shares

8

Custody Bank of Japan, Ltd.
(Trust Account)

214,500 shares

9

Morgan Stanley MUFG Securities
Co., Ltd.

193,700 shares

10

Individual shareholder

127,000 shares■ Shareholder distribution by category
Other Japaneseentities

1.2%

Overseas
entities

15.3%

33.0%

Financial
institutions/securities
companies

8.1%

Company
executives*

Individuals,
others42.4%

Name of shareholders(As of Jun. 30, 2021)* Includes their private asset managers

Copyright (C) 2021 HOPE, INC.

64

Stock Information
PeriodJun. 15, 2016 to Mar. 31, 2021

IPO price¥350

Initial price¥805 (Jun. 15, 2016)

ROE

FY2015FY2016FY2017FY2018FY2019FY2020

23.7%

23.9%

3.2%

(25.4)%

15.7%

75.4%

FY2016FY2017FY2018FY2019FY202027.9x116.3x

32.3x

30.5x

Highest price since IPO* ¥7,910 (Nov. 11, 2020)
Lowest price since IPO*

PER*¥220 (Dec. 25, 2018)■ Stock price (Jul. 1, 2018 to Jun. 30, 2021)

Mar. 26
Announcement of participationin the private-sector
Nov. 5trainee program
Announcement of AI for forecasting market prices of electricity of the city of Shijonawate

9,000

(yen)

8,000
7,000

May 26
Announcement of Jichitai Works HAxSH

6,000

May 21
Announcement ofpurchase of treasury shares

4,000
3,000
2,000

Dec. 10
Announcement of
1-to-4 stock split
May 17
Announcement of the 3rd shareholder benefits
Aug. 9Earnings announcement
Sep. 3
Changed names ofbusiness segments and services

Aug. 8
Earnings announcement
May 27
Announcementof upward
earnings
forecast

Sep. 26
Renewal of
corporate logo

May 13
Announcement of
upward earnings forecast
Feb. 10
Businessalliance with Eltes

Feb. 6
Commemorative
dividend

1,000
0

FY2019Feb. 17
HOPE, INC.’sstockapproved for
margintrading

Jun. 29
Renewal of
Jichitai Works

Jul. 27
Announcementof upward
earnings forecast
Aug. 11
Earnings and medium-term
management plan announcement

FY2020Jun. 30, 2019

FY2021* Calculated based on the stock price at the end of each fiscal year.

* Including stock prices during trading hours.
* Stock prices are adjusted to reflect a 1-to-4 stock split.

5,000

FY2021

Apr. 30
Issued the Ninth Share Acquisition
Rights and unsecured bonds
through a third party allotment
Jun. 15
Launched SMART
FR CONSULTING SERVICE
Jun. 17
Launched the Jichitai
Works Free Name
Card service
Jun. 21
Started providing
physician recruiting
support for
COVID-19 vaccinations

Nov. 16
Start of the Kai
webconferencing
serviceSep. 14
Announcementof establishmentof a subsidiary

Dec. 23
A private-public sector allianceagreement with the city of Ogori (Fukuoka prefecture)

FY2021
Jun. 30, 2020

Copyright (C) 2021 HOPE, INC.

Jun. 30, 2021

65

HOPE, INC. Major Media Exposure
Date

Summary

Date

Summary

Jun. 7, 2016

Investment Information – New IPO Stocks,
Nihon Keizai Shimbun

Aug. 7, 2017

Information about HOPE, INC. in Japan Digest,
Nihon Keizai Shimbun

Sep. 1, 2016

Included in an article in the Oct.
issue of Project Design magazine

Jan. 18, 2018

Information about HOPE, INC’s electricity sales businessin the economy section of the Yomiuri Shimbun

Sep. 25, 2016

Information about HOPE, INC. on the TBS TV
program Gacchiri Monday!

Feb. 15, 2018

Information about the Machiiro app forchecking how much money is coming,
Nonstop TV program of Fuji TelevisionNov. 7, 2016

Interview with the HOPE, INC. president inMichishirube, Nihon Keizai Shimbun

Apr. 23, 2018

Information about HOPE, INC. on the TV Asahi
Bakumon Fund! Money Success Graph

Jan. 10, 2017

Interview with the HOPE, INC. president in
Dash Venture, Nihon Sangyo Shimbun

May 21, 2018

HOPE, INC. president featured in a daily column on
business executives in the Nihon Keizai Shimbun

Jan. 16, 2017

Interview with the HOPE, INC. president inFuji Sankei Business i.

Oct. 31, 2018

Information about a HOPE, INC.’s Halloween event on
NHK TV programs Rokuichi! Fukuoka, NHK News 7,
News Watch 9, and News 11

Feb. 23, 2017

Interview with the HOPE, INC. president in
God of Happiness Diary, Kabushiki Shimbun

Dec. 1, 2019

Information about HOPE, INC. in an article
about innovative companies in Nikkei Veritas

Mar. 24, 2017

Included in The First Companies 2017,an article about newly listed companies

Dec. 31, 2019

Included in an article about companies
with the biggest market cap increases of 2019,
Nihon Keizai Shimbun

May 12, 2017

Included in Gatchiri Monday! The Secret of
Making Money on 40 Little Known Companies

Jan. 31, 2020

Information about the condolence guidebookof HOPE, INC’s Machilet, Chunichi Shimbun

Aug. 3, 2017

Interview with the HOPE, INC. president in CEOs Explain
Management Strategies, Nikkei Sangyo Shimbun

Sep. 4, 2020

Interview with the HOPE, INC. president on the Nikkei
CNBC program Hiru Express

Copyright (C) 2021 HOPE, INC.

66

Disclaimer
Information in this presentation includes forward-looking statements that are based on the current
outlook, forecasts and assumptions vulnerable to risk factors. As a result, this information
incorporates uncertainties that may cause actual performance to differ from these statements.

Risk factors and uncertainties include economic trends in Japan and other countries, such aschanges in industries and markets, interest rates, and foreign exchange rates.

HOPE, INC. has no obligation to update or revise forward-looking statements in this presentationeven in the event of new information or events.

- IR contact HOPE, INC.

E-Mail: ir@zaigenkakuho.com
URL: https://www.zaigenkakuho.com/en/ir

Copyright (C) 2021 HOPE, INC.

67