Supplemental Material
For FY2023 First Quarter
Financial Results
NJ Holdings Inc.

Tokyo Stock Exchange Standard Market
Code number: 9421

November 11, 2022
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Cautionary notes on this document
 The current strategies, plans, and perceptions of the Company and its
subsidiaries contained in this document regarding future businessperformance are subject to risks and uncertainties, and actual results may
differ materially from those projected due to a variety of factors.
 Major factors that may affect actual results include economic conditions
surrounding the Company and its subsidiaries' business areas, social trends,
demand trends for products and services offered by the Company and its
subsidiaries, price declines due to increased competition, and technologicalcapabilities to meet customers' demands. Factors that may affect businessresults are not limited to those mentioned above.
 While every care has been taken to ensure the accuracy of this document, wecannot guarantee its accuracy or completeness.
 This document is subject to change without notice.
 The names of companies, products and services mentioned in this document
are trademarks or registered trademarks of the relevant companies.

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Contents

Ⅰ. FY2023 First Quarter Highlights

Ⅱ. Forecasts for FY2023

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

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Ⅰ. FY2023 First Quarter Highlights

41. Consolidated Financial Results（1）Results Summary
While there was an operating loss in the first quarter, the deficit
narrowed in the most recent quarterly transition.
FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1Q
Jul.-Sep.ʼ22

ChangeNet sales

3,006

2,415(591)

Cost of sales

2,488

2,073(414)Gross profit

517341(176)

Selling, general andadministrative expenses

482

428(54)

Operating profit

35(86)(121)

Ordinary profit

33(89)(122)

Net income before
income taxes

33(89)(122)

Profit attributable toowners of parent

13(88)(102)

EBITDA※

98(54)(153)※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

（in millions of yen）

・Most recent quarter(248)

・goodwill amortization
1951. Consolidated Financial Results（2-1） Results by Segment
Segment profit in the game business was slightly in the black.
（in millions of yen）

Net sales
FY2022 1Q

FY2023 1Q

Game

2,366

1,950Mobile626

Other※1

Operating profit
FY2022 1Q

FY2023 1Q(415)89２(87)447(178)

32(19)

(51)

16

18

188(0)

Intersegment
eliminations andcorporate expenses※2(2)(1)

1△58(57)

0

goodwill amortization―――△36(19)16

3,006

2,415(591)

35(86)(121)

Jul.-Sep.ʼ21

Consolidated total

Jul.-Sep.ʼ22

ChangeJul.-Sep.ʼ21

Jul.-Sep.ʼ22

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

61. Consolidated Financial Results（2-2）Quarterly Net Sales by Segment
The game business is on a recovery trend. In the mobile business,sales volume declined.

（in millions of yen）

Net Sales
FY2022
1Q

Jul.-Sep.ʼ21

2Q

Oct.-Dec.ʼ21

FY2023
3Q

Jan.-Mar.ʼ22

4Q

Apr.-Jun.ʼ22

1Q

Jul.-Sep.ʼ22

Game

2,366

2,116

1,863

1,777

1,950

Mobile

626

628

655

558

447

Other※11616

17

1718Intersegment eliminations

(2)

(1)

(2)

(1)

(1)――――――

3,006

2,760

2,533

2,352

2,415

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

71. Consolidated Financial Results（2-3）Quarterly Operating Profit by Segment
The game business returned to profitability in the quarter.
（in millions of yen）

Operating Profit
FY2022
1Q

2Q

Jul.-Sep.ʼ21

FY20233Q

Oct.-Dec.ʼ21

4Q

Jan.-Mar.ʼ22

1Q

Apr.-Jun.ʼ22

Jul.-Sep.ʼ22Game

89(199)

(311)

(187)

2Mobile32(4)143(19)Other※187678Intersegment eliminationsand corporate expenses※2(58)

(59)

(53)

(52)

(57)

goodwill amortization

(36)

(36)

(19)

(20)

(19)

35

(292)

(363)

(248)

(86)

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

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2. Game Segment（1）Overview
Summary of MD&A Net sales are recovering, although not to the level of the same period last year, as aresult of careful management of the progress of existing projects and efforts to winorders for new projects with top priority on improving utilization ratio.
 Operating income in the development field, although small, showed improvement due
to new orders, while in the management support field, profits remained stable due tosteady orders for support services related to newly released titles, etc.

（in millions of yen）

（in millions of yen）

Net sales

3,000
2,500

Operating profit

120

2,366

100

1,950

2,000

80

1,500

60

1,000

40

500

20089

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FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1Q
Jul.-Sep.ʼ22

FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1QJul.-Sep.ʼ2292. Game Segment（2）Sales Breakdown
Development sales in the first quarter recovered to the billion yen
level. Operation sales were firm in the operation support field.
(in millions of yen)
2,500

2,000

1,068
45％

Operations and Royalties

1,500

933
48％

1,000

1,298
500

055％

Development

1,018
52％

FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1Q
Jul.-Sep.ʼ22
Development

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

102. Game Segment（3）Quarterly Sales Breakdown（in millions of yen）
3,000

2,500

2,000

1,500

1,238

1,326 -89+78

1,316-120 1,196 -128

1,068-22

1,045-32

1,013-84929

850-1849

933

+4

1,000

500+179951

1,130-49

1,080+48

1,129+169 1,298-27

1,072 -221+169 1,018

0Jul.-Sep.ʼ20

Oct.-Dec.ʼ20Jan.-Mar.ʼ21

Apr.-Jun.ʼ21

Development

Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

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

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2. Game Segment（4）Quarterly Operating Profit（in millions of yen）
200

139

162
107

107

100

89
2

0Jul.-Sep.ʼ20

Oct.-Dec.ʼ20Jan.-Mar.ʼ21

Apr.-Jun.ʼ21Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22-100-200-187-199-300-311-400※The breakdown of operating income by development and operation is not disclosed.

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

3 （-1 from Aug. 10, 2022）

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

3 （+2 from Aug. 10, 2022）

 Scale of development system・employees※5791 （-6 from Jun. 30, 2022）※1 as of November 11, 2022. It does not indicate the number of titles that will be completed within this fiscal year.
※2 Multi-platform title counts as one. Small titles are not counted.
※3 Download sales and additional content are also included in the console type.
※4 including the free-to-play type.
※5 as of September 30, 2022（including some fixed-term contract workers.）

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3. Mobile Segment（1）Overview
Summary of MD&A Net sales: Down due to lower-than-planned sales volume. As the number of visitors
continued to decline, the number of new contracts and replacement of handsets slowed
down due to the high price of new handsets.
 Operating income: Despite efforts to increase profit per customer, strengthen aftersales service, and appeal to local communities, these efforts were not enough to makeup for the lower-than-planned sales, resulting in an operating loss.

Net sales（in millions of yen）
700

（in millions of yen）
40626

600

Operating profit
3230

447

500

20400

10300

0200-10100-200-30

FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1Q
Jul.-Sep.ʼ22-19
FY2022 1Q
Jul.-Sep.ʼ21

FY2023 1Q
Jul.-Sep.ʼ2214

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

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4. Recent topics（2）Mobile Segment■September 1, 2022
・Opened “PiPoPark Hatanodai” in Tokyo(NEPRO CREATE Co., Ltd.)16

Ⅱ. Forecasts for FY2023

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1. Forecasts for FY2023
 Not change from the most recently announced forecasts.
（in millions of yen）

FY2023 1Q
ResultsJul.-Sep.ʼ22

FY2023
Forecast

Progress(Reference)
FY2022 Results

Jul.ʼ22-Jun.ʼ23Jul.ʼ21-Jun.ʼ22

2,415

10,71022.6％

10,652

Operating profit(86)

160－(869)

Ordinary profit(89)

150－(865)

Profit attributable toowners of parent(88)

70－(1,218)

EBITDA※(54)320－(652)

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

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Ⅲ. Company Profile191. Company Profile（1）Basic Information and History■Basic Information
Date of Establishment: December 11, 1991
Head Office Address: 7F, Shibakoen First Building, 3-8-2 Shiba, Minato-ku, Tokyo 105-0014, Japan
Capital: JPY592,845,020 (as of June 30, 2022)
Number of Employees: consolidated 935 (as of September 30, 2022. It includes 55 average temporary employees)
Fiscal Year End: June 30■History
・Dec. 1991
・Nov. 1995
・Mar. 1997
・Jul. 2000
・Apr. 2006
・Sep. 2011
・Apr. 2014
・Dec. 2014
・Mar. 2015
・Sep. 2015
・Dec. 2015
・Jun. 2017
・Dec. 2017
・Jul. 2018
・Oct. 2018
・Jun. 2019・Nov. 2019・Mar. 2020・Jul. 2020
・Apr. 2022

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

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

NJ holdings Inc.

Game Studio Inc.

tri-Ace Inc.

Wit One Inc.

NEPRO CREATE Co., Ltd.

GameMobile

Game development, post-launch operations and customer support

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

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

Developer

Development

Selling

Operation

distribution

Product

Publisher

Purchase

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

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

Event planning
Development ofadditional content

Monitoringuser voice andapp behavior

User support
Web site/SNS
KPI Analysis

Localization
Translation
Market Analysis

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Inquiries regarding this document

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

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