August 29, 2024
NJ Holdings Inc.
Financial Results Briefing for the Full Year of the Fiscal Year Ended June 30, 2024
Summary of Key Questions and AnswersQ.1) Although the company returned to profitability in the current period, the Notes
Related to Going Concern has not yet erased. When do you think this will be erased?
The company's performance turned profitable during the period and its cash reserves
have increased. The Notes require a viewpoint of whether the company's ability tocontinue over the next year is certain. The Company's short-term borrowings haverecently been renewed for a period of six months, not one year, and if we strictly look atwhether the Company has sufficient funds to repay these borrowings, we cannot say thatit has sufficient working capital, taking into account the increased demand for working
capital due to the recovery in business performance, and therefore the Note is still
applicable. The company has a good relationship with its financial institutions and iscurrently negotiating with them to renew the loan in one year at the earliest possible
date.
Q.2) Will interest rates increase if the maturity date of short-term debt is changed to oneyear?
Interest rates are agreed upon based on market interest rates, and since this is still ashort-term loan, we will negotiate to maintain at least the same conditions.
Q.3) Will the outstanding loan balance continue to decrease?
Since cash outflows precede cash inflows in the game business, working capital needs
will increase as business performance recovers. We intend to maintain a close
relationship with financial institutions so that we can obtain additional financing in thefuture.
Q.4) What are your thoughts on other ways to raise funds besides borrowing?
We are aware that there are various means of financing, and we will continue to1

consider obtaining financing from sources other than financial institutions.
Q.5) In the forecast for the next fiscal year, profits are maintained while sales decrease.
Are the decreasing expenses cost of sales? Or is it SG&A expenses?
Cost of Sales. In the current fiscal year, while sales declined, the impact was controlled
mainly by controlling the cost of subcontracting. In the next fiscal year as well, we willcontrol the costs so that there will be no impact on profits.
Q.6) Is the cause of the small size of orders and delays in receiving orders internal orexternal? And what is the probability of recovery in the next fiscal year?
Our analysis indicates that external factors are having a significant impact. As projects
are becoming larger in size, clients are launching fewer new projects and deliberations
are becoming more protracted. Under these circumstances, we are taking a serious lookat the order plan. We will conduct sales activities always assuming the possibility thatprojects will not start as expected. We are also working across the group to identify
human resources, and we are building a system that enables us to match humanresources wherever in the group they are available to receive orders.
Q.7) According to the financial cash flow, it looks like the Company have made a lot ofrepayments. Is this long term or short term? Were there any special repayments?
Long-term loans have been repaid as agreed. In the current period, short-term
repayments have been made in step with these repayments. No lump-sum repayments
have been made.
(note) The forecasts in this document are based on information currently available to theCompany and certain assumptions that the Company believes are reasonable. Actual
results may differ from forecasts.
(note) This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated document and theJapanese original, the original shall prevail.

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