Cumulative 2Q of the Fiscal Year Ending June 30, 2021 (FY2021)

Results of Operations
Explanatory Material

February 12, 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)

173 (as of the end of Dec. 2020, 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, Media Business)

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

Aug. 2014 Started B-to-G marketing business
Jun. 2016 Listed on TSE-Mothers and FSE Q-Board
Dec. 2017 Issued the first edition of“Jichitai Works”

Copyright (C) 2021 HOPE, INC.

Mar. 2018 Registered as an electricity retailer
and launched “GENEWAT”
May 2020 Started Jichitai Works HAxSH
Aug. 2020 Announced the medium-term
management plan [HOPE NEXT 3]
Oct. 2020 Established a wholly owned
subsidiary HOPE ENERGY, INC.
Nov. 2020 Developed AI for forecasting market
prices of electricity (energy business)
Started supplying Kai, a web
conferencing tool created in Japan

03

Contents

I. Cumulative 2Q FY2021 Financial Highlights
II. Topics
III. FY2021 Outlook
IV. Growth Strategies
V. 2020 VISION
VI. Appendices
Copyright (C) 2021 HOPE, INC.

04

I. Cumulative 2Q 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 ending 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.

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/Media BusinessNo significant effect at this time, but some companies may start to reduce their advertising activities. There is also a riskthat financial difficulties at advertisers may delay payments for some receivables or make it impossible to collect somereceivables.

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

Copyright (C) 2021 HOPE, INC.

06

Cumulative 2Q FY2021 Financial Summary (Jul. – Dec. 2020)

Cumulative 2Q
Results(consolidated)

Sales were up 177.9% from one year earlier to an all-time
cumulative 2Q high. Big negative impact on operating
profit from the sharp increase in the cost of electricity■Net sales ¥11,718 million (up 177.9% YoY)
〈Gross recognition method: ¥14,044 million〉■Operating profit ¥ 259 million cumulative 2Q FY2020)(¥(40) million inAdvertising Business

Energy BusinessMedia Business

Sales down due to measures toachieve the proper size of thisbusiness but segment profit
improved

Big increases due to the higher costof purchasing electricity as theprice on the Japan Electricity Power
Exchange (JEPX) increased rapidly
in the second half of December

Sales and earnings growth due
to an increase in B-to-G
marketing orders■Net sales■Net sales■ Net sales¥ 657 million (down 19.1% YoY)
■Segment profit¥ 22 million (up 154.3% YoY)

¥10,989 million (up 226.6% YoY)

〈Gross recognition method: ¥13,314 million〉■Segment profit¥ 390 million (up 297.5% YoY)
Copyright (C) 2021 HOPE, INC.

¥70 million (up 85.8% YoY)
■ Segment profit¥12 million cumulative 2Q FY2020)(¥(110) thousand in07

Cumulative 2Q FY2021 Income Statement Highlights: YoY Change• Changed to consolidated financial statements in the second quarter
following the establishment of wholly owned subsidiary HOPE ENERGY.
Cumulative 2Q FY2020(Millions of yen)

Net sales

Results(non-consolidated)

4,216

422

SG&A expenses

462

Operating profit(40)

Ordinary profit(42)

Profit attributable toowners of parent(50)

Results(consolidated)Comp.

11,718〈4,832〉Gross profit

Net income
per share

Comp.

Cumulative 2Q FY2021+177.9%〈14,044〉

10.0%

738

11.0%

479

(1.0)%

259(1.0)%

243(1.2)%

158〈8.7%〉〈9.6%〉〈(0.8)%〉〈(0.9)%〉〈(1.0)%〉(9.01) yen

YoY change

6.3%+74.8%

4.1%

+3.6%

〈5.3%〉〈3.4%〉

2.2%〈1.8%〉

2.1%〈1.7%〉

1.4%〈1.1%〉

26.29 yen

* Adjusted to reflect the
1-to-4 stock split effective
on Jan. 1, 2020*〈 〉is figures using the gross recognition method. *Cumulative 2Q FY2020 (non-consolidated) figures are the revised figures announced on May 13, 2020.

Copyright (C) 2021 HOPE, INC.

08

Cumulative 2Q FY2021 Income Statement Highlights: Performance vs. Forecasts• Although the earnings forecasts were increased on Dec. 14 because of the performanceof the energy business, the sharp increase in the price of electricity on the JEPX thatstarted on Dec. 16 caused the cost of sales to increase dramatically. As a result,earnings at all levels ended up at the bottom of the initial forecast range.
Cumulative 2Q FY2021(Millions of yen)

Net sales

Initial forecast (non-consolidated)

Results (consolidated)(announced on Aug. 11, 2020)

11,718〈14,044〉

Revised forecast (non-consolidated)(announced on Dec. 14, 2020)

12,200〈14,450〉

11,610〈13,970〉

Gross profit

738

SG&A expenses

479

Operating profit259

250 – 490

900 – 950

Ordinary profit

243

230 – 470

886 – 936

Profit attributable toowners of parent

158

150 – 320

620 – 655

Net income per share

26.29 yen

25.09 – 53.53 yen

102.79 – 108.60 yen*〈 〉is figures using the gross recognition method.
(Reference) More information is in the Jan. 15, 2021 news release titled “Effect on HOPE, INC. of the Rapid Increase in the JEPX Price of Electricity and Upcoming
Actions” (Japanese version only). https://ssl4.eir-parts.net/doc/6195/tdnet/1919946/00.pdf

Copyright (C) 2021 HOPE, INC.

09

Quarterly Sales• Quarterly sales steadily increased, up 122.1% YoY.

Up
122.1%
YoY

7,000

6,052

Others6,000〈7,167〉

5,445Media Business〈6,325〉

Energy Business(Millions of yen)

5,000

32

5,666

〈6,876〉38

80

Advertising Business

4,000

2,551

〈2,934〉

3,000

2,019

〈2,208〉

54

2,000

556

420

1,000

0

〈560〉

〈420〉

6
17〈17〉396

1Q

11
39〈44〉

658

〈672〉

1,055

〈1,244〉15

4,622〈5,503〉

5,721〈6,837〉

5,267〈6,477〉〈1,897〉

14

2,352

2,100

〈2,793〉

386

426

431

1Q

2Q

3Q

1,263

〈2,483〉〈1,496〉505

30
91〈106〉
535

909

2Q

3Q

4Q

FY2019 (non-consolidated)

1,665

23

2,808

〈3,249〉FY2020 (non-consolidated)

742

4Q

298

1Q

359

(non-consolidated)

2Q(consolidated)

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

Copyright (C) 2021 HOPE, INC.

10

Quarterly Operating Profit• A ¥427 million operating loss in 2Q FY2021 because of the significant negative impact of
the higher cost of electricity in the energy business.
• Corporate expenses were about the same as in 2Q FY2020.
1,200

Adjustments (corporate expenses)
1,000(Millions of yen)

800
600

OthersMedia Business

5

Energy Business

808

Advertising Business

105

200

(200)

937

23

400

0

42

2
(43)
(7)
(5)
(68)

(124)

(11)

0

(7)
(7)

43

(100)

(66)

295

(19)

332

19

(87)

(4)
(66)

(74)

149

2

(2)

(56)

79
13
(76)

16

51

122

(3)

(74)

762

686

245

(151)

7

25

(2)
(68)

(371)

(400)
(600)

(427)

(80)

1Q

2Q

3Q

FY2019 (non-consolidated)

4Q

1Q

2Q

3Q

FY2020 (non-consolidated)

4Q

1Q(non-consolidated)

2Q(consolidated)

FY2021*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.

11

Advertising Business

Sales by Segment• Productivity continues to improve because of measures to achieve the proper size of thisbusiness.
1,000

909

Others900

SMART CREATION SERVICE

800

82

742

SMART RESOURCE SERVICE(Millions of yen)

700

94

600
500
400

505
396
33
12

60
52

535
38
89

386
73

300
200

Down
15.8%
YoY

482

17

350

391

407

426
95
37

431

394

42

359

298

82

82

66

35

3
345

100

295

293

305

1Q

2Q

3Q

254

240

228

0

1Q

2Q

3Q

FY2019 (non-consolidated)

4Q

FY2020 (non-consolidated)

Copyright (C) 2021 HOPE, INC.

4Q

1Q

(non-consolidated)

2Q(consolidated)

FY2021

12

Energy Business

Sales by Segment• There were 201 winning bids in 2Q (177 in 1Q).
Services for most of these contracts started in April.

Up
150.7%
YoY

6,000
5,000

(Millions of yen)

4,000
5,721

3,000
4,622

〈6,477〉〈5,503〉

2,000
2,100

1,000
39

17

0

5,267

〈6,837〉91

1,055〈2,483〉

1,263

〈17〉

〈44〉

〈106〉

〈1,244〉〈1,496〉

1Q

2Q

3Q

4Q

1Q

FY2019 (non-consolidated)

2Q

2,352
〈2,793〉

3Q

4Q

1Q

(non-consolidated)

FY2020 (non-consolidated)

2Q(consolidated)

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

■ Winning Bids
*As of confirmationof result of bids

1Q (Jul.-Sep.)

2Q (Oct.-Dec.)

3Q (Jan.-Mar.)

4Q (Apr.-Jun.)

Total

FY2019Not disclosed

Not disclosed

Not disclosed

Not disclosed

142

FY2020 ＊

70

96

337

77

580

FY2021 ＊177

201

Copyright (C) 2021 HOPE, INC.

378

13

Media Business

Sales by Segment• Orders from companies for online seminars and other services increased because ofactivities to strengthen the Jichitai Works brand.
90
80
70

Up
63.0%
YoY

(Millions of yen)

60
50
40

80

30

54

20
10
0

6
1Q

14

11
2Q

3Q

FY2019 (non-consolidated)

38

32

30

4Q

1Q

23

2Q

15

3Q

FY2020 (non-consolidated)

4Q

1Q(non-consolidated)

2Q(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.

14

2Q FY2021 Balance Sheet Highlights
2Q FY2020

Results (nonconsolidated)

2Q FY2021

Comp.

Results (consolidated)

Comp.

Change

752

23.0%

4,358

48.4%

+3,606

1,365

41.8%

3,746

41.6%

+2,381

298

9.1%

252

2.8%

(46)

2,580

78.9%

8,515

94.5%

+5,934

690

21.1%

493

5.5%

(196)

3,270

100.0%

9,008

100.0%+5,737

Accounts payable-trade

1,437

43.9%

4,710

52.3%

+3,272

Short-term borrowings

326

10.0%

ー

ー

(326)

Current portion of
long-term borrowings

279

8.6%

266

3.0%

(13)

Current liabilities

2,271

69.4%

5,389

59.8%

+3,118

Bonds payable

ー

ー

100

1.1%

+100

Long-term borrowings

520

15.9%

563

6.3%

+43

Non-current liabilities

520

15.9%

663

7.4%

+143

Total liabilities

2,791

85.3%

6,053

67.2%

+3,261

Total net assets

479

14.7%

2,955

32.8%

+2,4753,270

100.0%

9,008

100.0%+5,737(Millions of yen)
Cash and deposits
Accounts receivable-trade
Inventories

Current assets
Non-current assets
Total assets

Total liabilities and net assets*2Q FY2020 (non-consolidated) figures are the revised figures announced on May 13, 2020.

Copyright (C) 2021 HOPE, INC.

15

Financial Highlights 1• Operating cash flows were positive in the first and second quarters.
1

Cash flows

Cumulative 2Q FY2020

Cumulative 2Q FY2021

ChangeOperating cash flows

(323)

2,200

+2,524

Investing cash flows

(20)

(2)

+17

Financing cash flows

602

859

+257

(Millions of yen)2(non-consolidated)(consolidated)

Exercise of share acquisition rights sold through a third-party allotment
HOPE, INC. announced on Aug. 11, 2020 the sale of 4,000 share acquisition rights (400,000 shares of stock)through a third-party allotment. As of the end of Dec. 2020, 3,000 rights had been exercised (300,000 shares ofstock), resulting in proceeds of about ¥1.6 billion.

(Reference) • Jan. 4, 2021 news release “Notice of Monthly Exercise of the Seventh Issue of Share Acquisition Rights Sold Through a Third-party Allotment(with Provisions for Exercise Price Revisions and Permission for Exercise of Rights)” (Japanese version only) https://ssl4.eir-parts.net/doc/6195/tdnet/1916857/00.pdf• Dec. 1, 2020 news release “Notice of Monthly Exercise of the Seventh Issue of Share Acquisition Rights Sold Through a Third-party Allotment(with Provisions for Exercise Price Revisions and Permission for Exercise of Rights)” (Japanese version only) https://ssl4.eir-parts.net/doc/6195/tdnet/1910320/00.pdf

Copyright (C) 2021 HOPE, INC.

16

Financial Highlights 2• Actions under consideration to improve financial soundness.
Assumptions and Major Expected Risk Factors• Expect a large operating loss in the third quarter because of the rapid increase in the JEPX price of electricity that started in the middleof Dec. 2020

• Financial risk will increase because of the upcoming need to make pay power shortage imbalance fees. These fees are required when acompany selling electricity is unable to supply the required amount of electricity over any 30-minute period and must purchaseelectricity from a utility to cover the shortfall.

Actions1

Stabilize energy business earnings• Market price volatility risk

2

Stabilize cash flows• Measures concerning debt covenants

Proposals for new risk management policies to reduce vulnerability to theDiscussions are under way with financial

electricity purchased on the JEPX and other sources for each area and season

acceleration clause, requiring the immediate

volatility of market prices of electricity, such as by adjusting the volume of• Installment payments of the Jan. 2021 imbalance fee
After meeting the requirements of the Ministry of Economy, Trade and Industry

program for imbalance fee payments, we plan to apply for this program and pay
the imbalance fee in five installments beginning in Apr. 2021

* For more information about the Ministry of Economy, Trade and Industry response on Jan. 29, 2021
to the sudden increase in the price of wholesale electricity
https://www.meti.go.jp/press/2020/01/20210129002/20210129002.html

Copyright (C) 2021 HOPE, INC.

institutions to prevent the exercise of therepayment of all debt

• Procurement of funds
Discussions are under way with financial

institutions to increase the overdraft facility andreceive additional loans. We are also considering
many other ways to procure funds, including thesale of stock using a third-party allotment.

17

II. Topics

Copyright (C) 2021 HOPE, INC.

18

Topic 1. Kai – A web conferencing system created in Japan for local governments

The Kai web conferencing service started on Nov. 16, 2020

Conferences / Interviews / Meetings

Digital support for many types of local government
meetings and other activities

MainfeatureEasy to start using – No registrations
and only a single link

This system increases the convenience of local
government services and other activities forresidents and is expected to become widely used.

The goal isexpansion
to nationwide use

Contributes to the local government digital transformationand functions as an information infrastructure
The first step of the Government Employee Platform Concept(Reference) More information is in the Nov. 16, 2020 news release titled “HOPE, INC. Formed a Business Alliance with NEOLAB for Supporting the Local Government
Digital Transformation – Aiming for the Widespread Use of the Kai Web Conferencing Tool Created in Japan that Local Governments Can Use with Confidence”(Japanese version only). https://ssl4.eir-parts.net/doc/6195/tdnet/1906927/00.pdf

Copyright (C) 2021 HOPE, INC.

19
62

Topic 2. HOPE, INC.’s First Alliance with a Local Government• A private-public sector alliance agreement between HOPE, INC. and the city of Ogori(Fukuoka prefecture) was signed on Dec. 23, 2020.
• This was HOPE, INC.’s first public-sector alliance and activities will continue to establish
more alliances.
■ Planned alliance activities
1

Trial for Kai

4

Trial for using Kai for online government
services,meetings with people in other locations, andother purposes

2

Assistance for efficient data collection
involving public-private sector alliances

Distribution of information
about the alliance with Ogori
An interview with the mayor, activities based on thisalliance and other information will be distributed
using Jichitai Works, and Jichitai Works Web

Use of Jichitai Works HAxSH by all employees of thecity of Ogori

3

Seminars

Seminars led by HOPE INC.’s employees for employeesof the city of Ogori(Reference) More information is in the Dec. 23, 2020 news release titled “HOPE, INC. and City of Ogori in Fukuoka Prefecture Sign a Public-Private Sector AllianceAgreement – The First HOPE INC.’s Public-Private Sector Alliance with Activities for More Alliances“ (Japanese version only).
https://ssl4.eir-parts.net/doc/6195/tdnet/1915113/00.pdf

Copyright (C) 2021 HOPE, INC.

20

III. FY2021 Outlook

Copyright (C) 2021 HOPE, INC.

21

FY2021 Forecast• We are no longer announcing earnings forecasts for FY2021 because of the difficulty ofdetermining an outlook due to the effects of the sharp increase in the price of electricity
on the JEPX that started in Dec. 2020.

(Millions of yen)

FY2021
non-consolidated forecast

Net sales

25,300(announced on Aug. 11, 2020)〈29,900〉

FY2021
consolidated forecast

25,320(announced on Jan. 29, 2021)(Reference) FY2020 results

OperatingprofitOrdinary
profitProfit attributableto ownersof parent

1,250 ‒
1,750

1,230 ‒
1,730

830 ‒
1,170

1,020

1,012

665

〈29,920〉

12,470〈14,407〉*〈 〉is figures using the gross recognition method.
* There are no differences between the consolidated and non-consolidated forecasts for FY2021.
(Reference) More information is in the Jan. 29, 2021 news release titled “Revisions to Non-consolidated Forecast and Announcement of Consolidated Forecast Due to Start ofConsolidated Financial Statements” (Japanese version only). https://ssl4.eir-parts.net/doc/6195/tdnet/1924250/00.pdf

Copyright (C) 2021 HOPE, INC.

22

FY2021 Plan (Income Statement)
FY2019(Millions of yen)

Net sales

FY2020Results

FY2021(non-consolidated(non-consolidated

Results(consolidated)

Plan

YoY change

3,654

12,47025,320+103.0%〈3,862〉〈14,407〉

Gross profit

1,039

2,261

SG&A expenses

952

1,240

Operating profit

87

1,020

Ordinary profit

95

1,012

Profit attributableto owners of parent

75

665

Net income per share＊

13.55 yen

〈29,920〉〈+107.7%〉＊

117.97yen* More information is in the Jan. 29, 2021 news release titled “Revisions to Non-consolidated Forecast and Announcement of Consolidated Forecast Due to Start of Consolidated Financial Statements” (Japanese version only). https://ssl4.eir-parts.net/doc/6195/tdnet/1924250/00.pdf*〈 〉is figures using the gross recognition method.
* Net income per share is adjusted to reflect the 1-to-4 stock split effective on Jan. 1, 2020.

Copyright (C) 2021 HOPE, INC.

23

Consistent Sales Growth
30,00025,320〈29,920〉
25,000(Millions of yen)

20,00012,47015,000〈14,407〉

10,0003,654〈3,862〉

5,000

198

142

87

695

512

331

1,142

635

1,592

1,774

2,269

Non-consolidated* 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.

2
(p 02
la 1
n)

FY

02
0
FY
2

01
9
FY
2

8
20
1
FY

7
20
1
FY

6
20
1
FY

01
5
FY
2

14
20
FY

13
20
FY

12
20
FY

20
11
FY

20
10
FY

09
20
FY

FY

20

08

0

Consolidated

24

FY2021 Business Segment Sales Plan
30

Approx. ¥ 25.3 billion

Media Business25〈29.9〉

Energy BusinessApprox. ¥0.18 billion

Advertising Business(Billions of yen)

20

15

Approx. ¥ 12.5 billion〈14.4〉

Approx. ¥23.45 billion〈28.05〉

Approx. ¥0.13 billion

10
Approx. ¥10.34 billion〈12.27〉

50

Approx. ¥1.99 billion

Approx. ¥1.68 billion

FY2020

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

Copyright (C) 2021 HOPE, INC.

25

IV. Growth Strategies

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26

Business Development and Growth Phases

Business creation
0-1 creation

Launch1-10 trial and error

GrowthMaturity

10-100 expansion

100-110 profit creation

Decline110- seek new innovations

Advertising
Business

Energy Business▲Media Business

Earnings

Time▶

Copyright (C) 2021 HOPE, INC.

27

Advertising Business

Market Summary• HOPE, INC created a new market with its advertising business, the company’s originalactivity, and has provided advertising services to local governments for about 16 years.
• HOPE, INC’s share of this market is about 12.8%.
The advertising market in Japan

Approx. ¥5.9 trillion *1
The local government advertising market

Approx. ¥14.0 billion *2
Approx. ¥1.8 billion *3

Target market
About 12.8% of thetarget market*1 Source: Survey of Selected Service Industries (Nov. 2020), Ministry of Economy, Trade and Industry*2 Estimate of target market size assuming that all local governments used advertising services*3 FY2020 advertising business sales (excluding contract production of public info publications)

Copyright (C) 2021 HOPE, INC.

28

Advertising Business

FY2021 Policy• Continuing to achieve the proper size of this business to make advertising a profit-generating
business.
• Gross profit per medium is decreasing, but the goal is to use SG&A expenses more efficiently.
Approx.
¥0.55 million

2,500(Millions of yen)

2,000

●

Approx.
¥0.43 million

Approx.
¥0.51 million

●

●

0.6

●
Approx.
¥0.53 million

0.4

●

1,500

Approx.
¥0.37 million
1,000

0.5

●

0.3

Approx.
¥0.3 million(Millions of yen)

■ Gross profit
per medium

0.2

500

0.1

Net sales*
Gross profit per medium

00FY2016FY2017FY2018Non-consolidated

FY2019FY2020

FY2021
Consolidated*Advertising business sales (excluding contract production of public information publications)

Copyright (C) 2021 HOPE, INC.

29

Business Strategy

Advertising Business• Achieve the proper size of this business (sales, people) to continue improving profitability ➡
Make advertising a profit-generating business• Over a medium term, reduce the tendency for the 4Q to account for most sales and earnings,
use expenses more efficiently, and increase the unit price of individual orders in this businessNet sales
Segment profit

2,215

2,347
1,987

(Millions of yen)

2,000

1,581

1,727

450

Temporaryslowdown due tomeasures to evenout sales/earnings
throughout the FY

Approx. 1,900

1,661

1,500

350

319 *
1,000

20.2%

Segment profit margin

314
284

283*
16.4%

500

247

15.8%

12.1%

FY2016FY2017FY2018Non-consolidated

FY201917.0%

FY2020

300

282

11.2%

0

400

FY2021(Millions of yen)

2,500

Further raise profitability
through cost efficiency
and higher unit price oforders

FY2022

Consolidated

250

FY2023200*FY2016 and FY2017 segment profit are provisional figures using the same basis as for the current segment profit because no segment profit was announced in these two fiscal years.

Copyright (C) 2021 HOPE, INC.

30

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 governments

Approx. ¥1 trillion *2

Target market
HOPE, INC. serves lessApprox. ¥33.8 billion *3

than 3.3% of thetarget 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 FY2020

Copyright (C) 2021 HOPE, INC.

31

Energy Business

FY2021 Policy• In FY2020, the number of energy contracts open for bidding was much higher than expected.
• In FY2021, we expect only a small increase in the number of energy contracts open for bidding.
■ Number of bids submitted (only contracts where HOPE, INC. was eligible)
FY2020 plan/actual (contracts)
Plan

FY2021 plan (contracts)

ActualApprox. 3,000

580

Approx.
1,000

Approx. 3,500

Approx. 3,000

Approx. 2,500
Approx. 2,400

Approx. 3,800

Total : Approx. 4,500
Successful bids
Bids submitted
Did not submit bids

Total : Approx. 6,000

Copyright (C) 2021 HOPE, INC.

Total : Approx. 6,300(estimate)32

Media 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 governments

15.2 billion

Local govt.

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

Companies

Approx. ¥ 8.68 trillion * 1
Approx. ¥1.52 trillion * 2

Approx.

¥0.13 billion*3

1%

Potential market

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 Smalland Medium Enterprise Agency*2 HOPE, INC. estimates based on FY2018 Administrative Project Review, Ministry of Internal Affairs andCommunications*3 FY2020 media business sales

Copyright (C) 2021 HOPE, INC.

33

Media Business

Goals for FY2021

Position this business at the very top of upstream information
flows to serve as a link for public-private sector collaboration andfor ties between local governments

Local govt.

Monitor/collect info

Contribute tomarket growth

MonitorCompanies･ Social issues

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

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.

34

Media BusinessBusiness Strategy

The preeminent upstream sourceof local government information

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

Use the Jichitai Works brand to distribute information

Local govt.

Jichitai Works

Jichitai Works Web

Companies

Jichitai Works

Collect and store data
Organizations■ Budgets ■ Issues, needs

Individuals

Establish and enlarge local
governments databases

Copyright (C) 2021 HOPE, INC.

■ Information about

local government andnational government employees

35Reexamination of the HOPE NEXT 3 Medium-term Management Plan
• We plan to create a new HOPE NEXT 3.
■ Assumption• The original HOPE NEXT 3 (announced on Aug. 11, 2020) was based on the assumption that the energy
business will be a very significant component of HOPE, INC.’s business portfolio.

■ Reason and stance for a new plan
• Although the Dec. 2020 surge in the JEPX price of electricity was a highly unusual event, we must
revise our plans to incorporate the possibility of a reoccurrence of this type of event.
• We will reinforce energy business risk management and build business and governance frameworks
with the goal of consistent profitability of the energy business.

■ 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
the advertising business and the media business.
(Reference) More information 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.

36

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
Meetings

135 meetings in six months,
surpassing the FY2021 goal of
120 meetings

120

Goal:

120meetings

100

80

135
60

82

40

20

0

15
9

FY2017FY20186FY2019FY2020

FY2021*Includes online meetings and telephone calls

Copyright (C) 2021 HOPE, INC.

37

V. 2020 VISION

Copyright (C) 2021 HOPE, INC.

38

2020 VISION

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.

•••

Local govt.

Local govt.

Govt. employees•••

The government employee platform concept

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

39

2020 VISION

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
and services for local governments
Copyright (C) 2021 HOPE, INC.

40

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
government revenue

Enlargement of targeted domains

Local
govt.

Public-private sector
collaboration

Ads in public info
publications, banner ads, etc

Jichitai Works

Local government DX…

Machiiro

MachiletB-to-G
Marketing
Jichitai Works

Govt.
employees

Jichitai Works Web

The government employee platform concept

Copyright (C) 2021 HOPE, INC.

41

2020 VISIONF Y2030
Net sales
Operating profit
Services¥

100 billion¥ 10 billion
10 services

Copyright (C) 20202021 HOPE, INC.

42

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

New
business¥¥25.3
billionNew
businessbillionNew
business

ActionsMedia

New
businessNewbusiness

FY2021

FY20303 services

More than 10 services

Copyright (C) 2021 HOPE, INC.

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

43VI. Appendices

Copyright (C) 2021 HOPE, INC.

44

Business Segments and Servicest

Advertising Business
SMARE RESOURCE SERVICESMART CREATION SERVICE

Ads in public info publications,banner ads, etc.

MachiletEnergy BusinessMedia Business
Jichitai Works

Jichitai Works Web

B-to-G Marketing
Jichitai Works

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

Copyright (C) 2021 HOPE, INC.

45

Advertising BusinessCorporate Philosophy

Localgovernment
assetsProviding new value to citizens
through local governments

Utilization•Public info publications,
local govt. websites

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

•Free joint local government/
HOPE, INC. publications

A source ofrevenue

Copyright (C) 2021 HOPE, INC.

Opportunities
for PR

Companies

46

Advertising Business 1 SMART RESOURCE SERVICE■ Business model

Payment forad space

Payment forad space日︵水︶︑グランドハイ回定時株主総会らの言葉で株主の皆さんに語らが執り行われました︒

上 地 さ ん 司 会 の も と︑社 長 のがらもしっかりと話してくれ

座 右 の 銘 を︑緊 張 の 面 持 ち な

1年目の皆さんが自己紹介と報告の後︑サービスの現況を伝える事業

山 監 査 役 か ら の 監 査 報 告︑各挨 拶 で 始 ま っ た 株 主 総 会︒松挨 拶 で 始 ま っ た 株 主 総 会︒松
今回の議題である取締役5名

回定時株主総会

ア ッ ト 福 岡 に お い て︑株 式 会

山 監 査 役 か ら の 監 査 報 告︑各︵社内取締役4名•社外取締役

で︑ホ ー プ の﹁今﹂を 株 主 のわ れ︑賛 成 多 数 で 可 決 さ れ ま
した︒
ま た︑株 主 総 会 と し て の 必 要事項である各報告や議決の後報告の後︑サービスの現況を伝える事業

山 監 査 役 か ら の 監 査 報 告︑各挨 拶 で 始 ま っ た 株 主 総 会︒松

O•部 長 陣 の 紹 介︒そ れ ぞ れCT

ま ず は︑各 部 署 の 長 で あ るた︒

ためのパートも用意されまし

プへの理解を深めていただくには︑第二部として︑よりホー

ま た︑株 主 総 会 と し て の 必 要

今回の議題である取締役5名

上 地 さ ん 司 会 の も と︑社 長 の皆さんへ率直に伝える場とな

1 名︶の 選 任 継 続 の 採 決 が 行

ました︒

りました︒

ドリブで答えていくという形

1 名︶の 選 任 継 続 の 採 決 が 行報告の後︑わ れ︑賛 成 多 数 で 可 決 さ れ ま

事項である各報告や議決の後1 名︶の 選 任 継 続 の 採 決 が 行︵社 内 取 締 役 4 名•社 外 取 締 役

した︒

X

X

X

X

られました︒

自らの言葉で株主の皆さんに語の 部 署 の 今 期 目 標 が︑ト ッ プ

プへの理解を深めていただく

わ れ︑賛 成 多 数 で 可 決 さ れ ま

ためのパートも用意されました︒

O•部 長 陣 の 紹 介︒そ れ ぞ れCT

ま ず は︑各 部 署 の 長 で あ るには︑第二部として︑よりホーした︒︵社内取締役4名•社外取締役

今回の議題である取締役5名

社長と森さんが台本なしのア

新 卒 の 挨 拶 で は︑

上 地 さ ん 司 会 の も と︑社 長 の

社ホープ第ア ッ ト 福 岡 に お い て︑株 式 会

9月

各サービスの現況を伝える事業報告の後、れました︒の部署の今期目標が︑トップ自た株主総会。松山監査役からの監査報告、

社ホープ第

日︵水︶
︑グランドハイ上地さん司会のもと、社長の挨拶で始まっ

続いての

9月

27

が執り行われました︒

27

サービスの現況を伝える事業

17

続いての

上地さん司会のもと、社長の挨拶で始まっ

今回の議題である取締役 5 名（社内取締役

新 卒 の 挨 拶 で は︑

4 名•社外取締役 1 名た︒

ためのパートも用意されまし

プへの理解を深めていただくには︑第二部として︑よりホー事項である各報告や議決の後

ま た︑株 主 総 会 と し て の 必 要

した︒

わ れ︑賛 成 多 数 で 可 決 さ れ ま

1 名︶の 選 任 継 続 の 採 決 が 行︵社 内 取 締 役 4 名•社 外 取 締 役

今回の議題である取締役5名

報告の後︑サービスの現況を伝える事業

山 監 査 役 か ら の 監 査 報 告︑各挨 拶 で 始 ま っ た 株 主 総 会︒松上 地 さ ん 司 会 の も と︑社 長 の率直に伝える場となりました︒

プ の﹁今﹂を 株 主 の 皆 さ ん へ

答 え て い く と い う 形 で︑ホ ーさんが台本なしのアドリブでの テ ー マ に つ い て︑社 長 と 森

変化や現在の課題等いくつか

ん に よ る 対 談︒前 期 と 今 期 のそ し て 最 後 に は︑社 長 と 森 さした︒

た株主総会。松山監査役からの監査報告、

17

今回の議題である取締役 5 名（社内取締役
4 名•社外取締役 1 名

株式会社◯◯◯

広報■■■■■■■■■■■■■■■■■■

××××××47
Copyright (C) 2021 HOPE, INC.

24

Ad

Others2017

24☎000-000-0000

Ad

11■ Ad in a public info publication■ Examples of media

Companies

Sale ofad space
Local gov t.

Purchase ofad space

各サービスの現況を伝える事業報告の後、Payslips forgovernment employees
WebsitebannerPublic info
publications

A new source of revenue for local governments
Local governments sell ad spacein their publications

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

Sale of ad space

Production
and supplyof pamphlets

Payment forad space

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

Child care

Empty houses

Senior care

Advertisement(monetize space)

My ending
OthersCopyright (C) 2021 HOPE, INC.

48

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.

49

Energy BusinessStart of the electricity
sales business

GENEWAT uses the new perception of “electricity as a
generic product” for supplying electricity at a lower price inorder to help 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

•••

50

Media BusinessCorporate Philosophy

Local govt.
information■ Value provided
Local gov t.

Providing new value to citizens
through local governments

AccesspointsPublic-private
sectorcollaboration

Use the private

Opportunity tosector tocollaborate withsolve issues

public sector

Copyright (C) 2021 HOPE, INC.

Companies

51

Media Business 1

Jichitai Works

A government magazine with new info and ideas
A HOPE, INC. publication
with useful info and ideas

Local gov t.

Jichitai Works

Collect
information

Interaction
with local govt.

Provideinformation

Payment
for ad space

Companies

for the jobs of local
government employees■ Issued four times every year (Standard editions)■ Issued as needed■ Jichitai Works Web

1 One of the largest circulations in Japan

Each special edition has asingle advertiser and allcontent 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 the largest 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.

52

Media Business 2

B-to-G Marketing

Market need survey, holding seminars
and sales services for local governments

Support for companies
with products andReports,other info

Local gov t.

services for
local governments.

■ 2Q contracted services• Seminars for local government
employees and other services
Employee seminar x 2 times 320 people
Seminar on attracting people
x 4 times 108 people• Distribution of e-magazines
1,000 municipalities x 1 time
360 municipalities x 1 time
286 municipalities x 1 time

Leveraging our relationships
with local governments

Seminars,sales agent,
research, otherservices

Companies

Requests forassistance• Direct mail marketing

300 municipalities x 3 times
100 municipalities x 4 times
1,500; 1,100; 338; 200 municipalities x 1 time

• Telemarketing

100 municipalities x 9 times
333; 300; 165; 110; 66; 50 municipalities x 1 time

• Distribution of marketing materials and others
1,000 municipalities x 4 times
1,788; 216 municipalities x 2 times
3,576; 498 municipalities x 1 time

Copyright (C) 2021 HOPE, INC.

53

Media Business 2

B-to-G Marketing

Seminars for local government employees

Support for companies

Government-company collaboration
Reports, other info

Local gov t.

with products and services
for local governments

Seminars(Held jointly)

Companies

Requests forseminars■ Outline of the seminars (including planned seminars)• B-to-G seminar• Online seminar for local government employees• B-to-G seminar• Only for local government employees

What types of results do residents want to see from “local
government x company” co-creation?
What approaches are best for leading-edge benefits fromlocal government business?
A discussion for obtaining ideas for solving various issues

Regional revitalization by using “private sector x e-commerce site digital
innovation” – Reform local industries by using simple e-commerce platforms
Free on-line Jichitai Works seminar
Seminar for explaining revised guidelines for data
security measures for local governments

Seminars are held online for safety during the COVID-19 crisis. Seminars covering
themes that reflect current events have been very successful.
More seminars will take place on a regular basis.
Copyright (C) 2021 HOPE, INC.

54

Media Business 3

Jichitai Works HAxSH

A joint assistance platform for
local governments and companies

Jichitai Works

Jichitai Works

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
governments
personnel

55Media Business 4

Machiiro

An app linking local governments and residents

Machiiro•Nationwide local government public info publications•Sends the latest info from the registered local governments •Content for local governments and regions

Local govt.

UploadResidents

Distribution of
governments
information
using an app

Agreement

643,947

cumulative downloads

921 cumulative

local government contracts

Local
governments
share of about

52％*Machiiro screen sample

Copyright (C) 2021 HOPE, INC.

56

Contracts with Local Governments

Apx.1 Advertising Business and Number of Pamphlets Issued
SMART RESOURCE SERVICESMART CREATION SERVICE (Machilet)(Contracts)

458

1,000

462

839
800

400

309
300

280

694

685

Plan
573

600

400

200

65

100

344

200
49

0

C

C

um

ul

at

i
FY ve
20 2Q
21

20
FY
20

19
FY
20

18
FY
20

17

i
FY ve
20 2Q
21

at

20

um
ul

FY
20

19
FY
20

18
FY
20

FY
20

17

0

FY
20

500

(Pamphlets)*For two or more different contracts with the same local government, each contract is counted separately.
*The number of Machilet pamphlets is the number issued during each fiscal year. A different definition is now used to count the number of pamphlets
in each fiscal year and the numbers have changes as a result.

Copyright (C) 2021 HOPE, INC.

57

Apx.2 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 80% of pamphlets are issued between Apr. and Jun.

▶Most sales and cost of sales are recorded in the fourth quarter•Most SMART RESOURCE purchases are single

transactions for an entire year (Apr. to Mar.), resulting
in risk for holding large inventories

300
250

(Pamphlets)

3 Effect on the next fiscal year
•Most purchases using bids submitted during thepeak season for governments contract bids will havean effect on the next fiscal year all the way to Mar.

Pamphlets issued in FY2020

Production and sales period

200
150
100
50
0

6月
Jul. Aug. Sep. Oct.
2019

Copyright (C) 2021 HOPE, INC.

Nov. Dec. Jan. Feb.

Mar. Apr. May. Jun.
2020

58

Apx.3 Energy Business Main Business Characteristics

1

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 or winter weather, and other weather events• Wholesale prices of electricity may vary depending on the cost of buying electricity, thecost of 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 overmany years in the advertising business

Copyright (C) 2021 HOPE, INC.

59

Apx.4 Media Business Jichitai Works Magazine Issues(Issue)12Special editions
Topic-specific editions
Standard editions

11

issued( of which)in 2Q : 2

issued( of which)in 2Q : 42

10

• Tourism/Foreign Tourist Edition

8

11

4

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

Management Edition• Tourism/Foreign Tourist Edition Vol. 3• Home Town Taxes Edition

5

6• Disaster Readiness/Crisis Management Edition Vol. 3

3
4

2

2

4

4

issued( of which)in 2Q : 1

2
0

FY2019FY2020

Copyright (C) 2021 HOPE, INC.

Cumulative 2Q FY2021

60

Apx.5 Additional Local Government Revenue

Since HOPE, INC.’s inception, the advertising business has
generated revenue of about ¥8.29 billion for clients•SMART RESOURCE SERVICE has paid local governments
about ¥ 7.52 billion•Machilet has reduced local government costs byabout ¥ 0.76 billion(From HOPE, INC.’s inception through 2Q FY2021)

23.8

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.

61

Apx.6 Main Shareholders■ Number of shares and shareholders
Total number of authorized shares

18,848,000 shares

Number of shares issued

6,002,800 shares

Number of shareholders(with voting rights)

5,616■ Shareholder distribution by category
Overseas entities 4.8%

Other Japanese entities

1.2%

Financial
institutions/securities
companies

Company
executives*

11.7%

43.5%
Individuals,
others38.8%* Includes their private asset managers■ Top 10 shareholders
No.

Name of shareholders(As of Dec. 31, 2020)
Number ofshares held

1

E.T. Co., Ltd.

1,340,000 shares

2

Takayasu Tokitsu

1,253,000 shares

3

Masaki Kuge

240,000 shares

4

Custody Bank of Japan,
Ltd. (Trust Account)

211,400 shares

5

Shimpei Mori

119,000 shares

6

SBI Securities Co., Ltd.

114,094 shares

7

BNY GCM CLIENT ACCOUNTJPRD AC ISG (FE-AC)

96,797 shares

8

Individual shareholder

91,600 shares

9JAPAN SECURITIESFINANCE CO., LTD.

74,800 shares

10

NOMURA PB NOMINEES LIMITEDOMNIBUS-MARGIN (CASHPB)

62,000 shares

Copyright (C) 2021 HOPE, INC.

62

Apx.7 Stock Information
Period Jun. 15, 2016 to Dec. 31, 2020
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)

PER*

Lowest price since IPO* ¥220 (Dec. 25, 2018)* Calculated based on the stock price on the settlement date.

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

■ Stock price (Jul. 1, 2018 to Dec. 31, 2020)

Nov. 5
Announcement of AI for forecasting market prices of electricity

(yen)
7,000
May 17
Announcement of
the 3rd shareholder
benefits

6,000
5,000
4,000
3,000
2,000

Aug. 11
Earnings andmedium-term
management plan
May 21announcement
Announcement of purchaseof treasury shares

May 26
Announcement of Jichitai Works HAxSH

Aug. 9Earnings announcement
Sep. 3
Changed names ofbusiness segments and services

May 27
Announcementof upward
earnings
forecast

Dec. 10
Announcement of
1-to-4 stock split

May 13
Announcement of upwardearnings forecast

Aug. 8
Earnings announcement

Feb. 10
Business alliancewith Eltes

Sep. 26
Renewal of
corporate logoJul. 27
Announcement of
upward earnings
Dec. 23
Jun.
29
Feb. 6
forecast
A private-public
Renewal ofCommemorative
sector alliance
Jichitai Works
dividendagreement with theSep. 14city of Ogori
Announcement of establishment of a subsidiary (Fukuoka prefecture)

1,000
0

FY2019FY2020Jun. 30, 2019

Copyright (C) 2021 HOPE, INC.

Nov. 16
Start of the Kai
web conferencing
service

FY2021
Jun. 30, 2020

63

Apx.8 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 October issueof 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.

64

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

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 for ward-looking statements in thispresentation even 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.

65