Supplemental Material
For FY2024 First Half
Financial Results
NJ Holdings Inc.

Tokyo Stock Exchange Standard Market
Code number: 9421

February 9, 20241

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

2

目次

Ⅰ. FY2024 First Half Highlights

Ⅱ. Forecasts for FY2024

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

3

Ⅰ. FY2024 First Half Highlights

41. Consolidated Financial Results（1）Results Summary
Net income returned to the black mainly due to reinforcement of orderacquisition and transitory profit factors in the game business.
FY2023 1HJul.-Dec.’22

FY2024 1HJul.-Dec.’23

ChangeNet sales

4,955

5,170

214

Cost of sales

4,319

4,096

(223)

Gross profit

636

1,073

437

Selling, general andadministrative expenses

874

838

(35)

Operating profit

(237)

234

472

Ordinary profit

(243)

237

480

Net income before
income taxes

(243)

452

695

Profit attributable toowners of parent(237)

365

602

EBITDA※(119)287※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

460（ in millions of yen ）Breakdown of Change
・game 202
Breakdown of Change
・game (255)

Breakdown of Change
・mobile (40)
Breakdown of Change
・game 455
・mobile 32

214 Extraordinary income
for this first half・goodwill amortizationin this first half is 39mil.

5

1. Consolidated Financial Results（2）Results by Segment
Both the game and mobile businesses increased sales and turned toblack.

（in millions of yen）

Net sales
FY2023 1H

FY2024 1H

Game

3,913

4,115

Mobile1,009

Other※1

Operating profit
FY2023 1H

FY2024 1H

202(94)351445

1,026

17(4)

27323635(2)1719

1Intersegment
eliminations andcorporate expenses※2

(2)

(7)

(4)

(116)

(123)

(6)

goodwill amortization

―――

(39)

(39)

0

4,955

5,170

214

(237)

234

472

Jul.-Dec’22

Consolidated total

Jul.-Dec’23

ChangeJul.-Dec’22

Jul.-Dec’23

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（3）Quarterly Net Sales by Segment
In the game business, sales declined due to the completion ofdevelopment projects and a gradual decline in operating revenue.

（in millions of yen）

Net Sales
FY2023
1Q

2Q

FY2024
3Q

4Q

1Q

Oct.-Dec.’22

Jan.-Mar.’23

Apr.-Jun.’23

Game

1,950

1,962

2,110

1,972

2,278

1,837

Mobile

447

561

599

462

475

551

Other※118

17

17

17

16

18

Intersegment eliminations

(1)

(1)

(2)

(1)

(2)

(4)

―――――――

2,415

2,540

2,725

2,450

2,767

2,402

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

Jul.-Sep.’23

2Q

Jul.-Sep.’22

Oct.-Dec.’23

7

1. Consolidated Financial Results（4）Quarterly Operating Profit by Segment
Transitory profit factors contributed to the profit in the game business.
Mobile business increased sales profit per customer.
（in millions of yen）

Operating Profit
FY2023
1Q

Jul.-Sep.’22

2Q

Oct.-Dec.’22

FY2024
3Q

4Q

1Q

2Q

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

Game

2(96)

130

7

212

138

Mobile(19)1415(25)

1017

Other※189998

10Intersegment eliminations
and corporate expenses※2(57)

(59)

(55)

(53)

(62)

(60)

goodwill amortization

(19)

(19)

(19)

(20)

(19)

(19)

Consolidated total

(86)

(151)

80

(81)

14886

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

8

2. Game Business（1）Overview
Summary In addition to firm orders in the operation support field, sales increased due to thetransfer of rights to a game title that had been under in-house development and theposting of sales associated with progress in the development of an existing project.
 Operating income increased due to transitory profit factors, including the transfer ofgame title rights as mentioned above and a decrease in development costs.

Net sales（in millions of yen）
5,000
4,000

3,913

4,115

351

400
300

3,000

200

2,000

100

1,000

00-100
FY2023 1H
Jul.-Dec.’22

Operating profit（in millions of yen）

FY2024 1H
Jul.-Dec.’23-94
FY2023 1H
Jul.-Dec.’22

FY2024 1H
Jul.-Dec.’239

2. Game Segment（2）Sales Breakdown
Operating sales decreased due to the downsizing of thedevelopment team for the operation. Development sales increased
due to orders for new development projects.
(in millions of yen)
4,500
4,000
3,500
3,000

1,903(49％)

2,500

1,808
Operations and Royalties

(44％)

(94)

2,000
1,500
1,000

2,011

Development and others

(51%)

+297

500
0

FY2023 1HJul.-Dec.’22

2,308(56％)

FY2024 1HJul.-Dec.’23
Development and others

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
Operating sales decreased due to the downsizing of thedevelopment team for the operation. Development sales decreased
due to the completion of some projects in 1Q.
（in millions of yen）
2,500

2,000
961
1,500

1,045
-32

1,013

-84

929

+4

933

+38

970

-18

953

-6

947

-113

+14

847

1,000

500

1,072

-1-221
850

＋169
849

1,018

-26

992

+165 1,157-132

1,025+292

1,318-346

990

0Oct.-Dec.’21

Jan.-Mar.’22

Apr.-Jun.’22

Jul.-Sep.’22

Oct.-Dec.’22

Development and others

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

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.

11

2. Game Segment（4）Quarterly Operating Profit
In the development field, one-time factors continued to drive
profits in 2Q. Operating income declined slightly due to a reduction
in titles in the operational support field.
（in millions of yen）
300
212
200

138

130
100
720
Oct.-Dec.’21Jan.-Mar.’22

Apr.-Jun.’22-100

Jul.-Sep.’22

Oct.-Dec.’22

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

-96

-200

-187

-199
-300
-311-400※The breakdown of operating income by development and operation is not disclosed.

12

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

5 （＋1 from Nov. 10, 2023）

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

0 （±0 from Nov. 10, 2023）

 Business Size Information

・employees※5from Jun. 30, 2023）
835 （-1（-5 from Sep. 30, 2023）※1 as of February 9, 2024. It does not indicate the number of titles that will be completed within this fiscal year.
※2 Multi-platform title counts as one. Small titles are not counted.
※3 Download sales and additional content are also included in the console type.
※4 including the free-to-play type.
※5 as of December 31, 2023（including some fixed-term contract workers.）

13

3. Mobile Segment（1）Overview
Summary of MD&A
 Net sales: While the number of visitors continued to fall below the previous year's level,
the closure of unprofitable stores at the end of the previous fiscal year also contributed
to a decrease in unit sales, but the increase in sales was due to the impact of higher
phone prices.
 Operating income: In the carrier shop division, increase in profit per customer due tosales of peripheral products, etc. In the non-carrier shop division, return to profitability
due to the above store closures. Overall mobile business also returned to profitability.

Net sales（in millions of yen）

Operating profit（in millions of yen）
40

1,500

1,009

1,026

1,0002730
20105000-100
FY2023 1H
Jul.-Dec.’22

FY2024 1H
Jul.-Dec.’23-4

FY2023 1H
Jul.-Dec.’22

FY2024 1H
Jul.-Dec.’23

14

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

15

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

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

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

4. Recent topics（2）Mobile segment■July 6, 2023
・Opened “iCracked Store in Beisia Maebashi SouthMall” in Gunma.
(NEPRO CREATE Co., Ltd.)18

Ⅱ. Forecasts for FY2024

19

1. Forecasts for FY20244（1）Full Year Consolidated Earnings Forecast We have revised our full-year earnings forecasts as follows in the"Notice of Revision of Earnings Forecasts" dated February 9, 2024.
（in millions of yen）

FY2024Previous Forecast

FY2024
New Forecast

Change10,370

9,950(440)

10,131

Operating profit

2002000(239)

Ordinary profit

1801800(260)Profit attributable toowners of parent

120360+240(469)

EBITDA※300

310+10(113)

Jul.’23-Jun.’24

Net sales（Reference）
FY2023 Results
Jul.’22-Jun.’23

Jul.’23-Jun.’24※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

201. Forecasts for FY2024（2）Business Outlook
Game
Operating income and other profit figures for the first half of the current fiscal year
exceeded the previous forecast, but this is mainly due to transitory profit factors
such as the posting of sales associated with the transfer of the rights to game titles
that had been developed in-house in the game business and a decrease indevelopment costs.
For the second half of the fiscal year, net sales are expected to be lower than theprevious forecast, mainly due to the trend toward downsizing of the operationrelated team and the continued trend toward short-term and small-scale orders.
Operating income is expected to be at the same level as the previous forecast, as
the impact of the above-mentioned decrease in sales on profits is expected to belimited due to cost controls such as outsourcing expenses.

MobileThe mobile business is generally progressing as planned. There are no changes inthe forecast of the mobile segment as of this moment.

21

2. Forecasts by Segment（1）Sales Forecast by Segment（in millions of yen）
10,0007,500
5,000
2,5000Game

MobileFY2023 Result

FY2024 Forecast

Percentage of net sales by segment
FY2023 Result

FY2024 Forecast
MobileMobile

21%

20%
Game
79%

Game78%22

2. Forecasts by Segment（2）Breakdown of full-year operating income forecastThe full-year operating income forecast is 200 million yen.

（in millions of yen）
600

OthersMobileGame

Goodwill
amortization

Intersegment
eliminations andCorporateexpenses※400

Operatingincome2000※ Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

23

Ⅲ. Company Profile24

1. Company Profile（1）Basic Information and History■Basic Information
Date of Establishment: December 11, 1991
Head Office Address:
7F, Shibakoen First Building, 3-8-2 Shiba, Minato-ku, Tokyo 105-0014, Japan
Capital:
JPY592,845,020 (as of June 30, 2023)
Number of Employees: consolidated 998 (as of December 31, 2023. It includes 81 average temporary employees)
Fiscal Year End:
June 30■History
・Dec. 1991
・Nov. 1995
・Mar. 1997
・Jul. 2000
・Apr. 2006
・Sep. 2011
・Apr. 2014
・Dec. 2014
・Mar. 2015
・Sep. 2015
・Dec. 2015
・Jun. 2017
・Dec. 2017
・Jul. 2018
・Oct. 2018
・Jun. 2019・Nov. 2019・Mar. 2020・Jul. 2020
・Apr. 2022

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

25

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 shopcell phone store PiPoPark
iCracked Store※ Wit One Okinawa joined our group in March 2020.
※ Tech Flag Corporation was established in July 2020 to strengthen the Group's technological collaboration andpromote productivity improvement.
26

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

DeveloperDevelopment

Selling

Operation

distribution

Product

Publisher

Purchase

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

27

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

28

Inquiries regarding this document

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

29