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

Tokyo Stock Exchange Standard Market
Code number: 9421

February 10, 2023
1

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.

2⽬次Ⅰ. FY2023 First Half Highlights

Ⅱ. Forecasts for FY2023

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

3

Ⅰ. FY2023 First Half Highlights

41. Consolidated Financial Results（1）Results Summary
In the first half of the current fiscal year, the deficit widened to nearly
the same level as in the same period of the previous year.
FY2022 1HJul.-Dec.ʼ21

FY2023 1HJul.-Dec.ʼ22

ChangeNet sales

5,766

4,955(810)

Cost of sales

5,074

4,319(755)Gross profit

691636(55)Selling, general andadministrative expenses

949

874

(74)

Operating profit

(257)

(237)

19

Ordinary profit

(258)

(243)

15

Net income before
income taxes

(479)

(243)

236

Profit attributable toowners of parent

(468)

(237)

230

EBITDA※

(129)

(174)

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

(43)（ in millions of yen ）・goodwill amortizationin this first half is 39mil.

5

1. Consolidated Financial Results（2）Results by Segment
The game business posted a loss close to the previous year. The
mobile business fell just short of returning to profitability.

（in millions of yen）

Net sales
FY2022 1H

FY2023 1H

Game

4,482

3,913

Mobile1,254

Other※1

Operating profit
FY2022 1H

FY2023 1H

(569)

(109)

(94)

15

1,009(245)

27(4)

(32)

33

36

2

16

17

1

Intersegment
eliminations andcorporate expenses※2(4)(2)

1(118)(116)

1

goodwill amortization

―――

(73)

(39)

33

5,766

4,955(810)

(257)

(237)

19Jul.-Decʼ21

Consolidated totalJul.-Decʼ22

ChangeJul.-Decʼ21Jul.-Decʼ22Change※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
Sales remained flat in the game business. Mobile business sales
recovered slightly, but sales volume continued to decline YoY.

（in millions of yen）

Net Sales
FY2022
1Q

2Q

FY2023
3Q

4Q

1Q

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Game

2,366

2,116

1,863

1,777

1,950

1,962

Mobile

626

628

655

558

447561Other※11616

17

17

18

17

Intersegment eliminations

(2)

(1)

(2)

(1)

(1)

(1)

―――――――

3,006

2,760

2,533

2,352

2,415

2,540

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

Jul.-Sep.ʼ22

2Q

Jul.-Sep.ʼ21

Oct.-Dec.ʼ22

7

1. Consolidated Financial Results（4）Quarterly Operating Profit by Segment
The game business again posted a loss for the quarter. Mobile businessreturned to the black.
（in millions of yen）

Operating ProfitFY2022
1Q

Jul.-Sep.ʼ21

2Q

Oct.-Dec.ʼ21

FY2023
3Q

Jan.-Mar.ʼ224Q

Apr.-Jun.ʼ22

1Q

Jul.-Sep.ʼ222Q

Oct.-Dec.ʼ22

Game89(199)

(311)

(187)

2(96)

Mobile32(4)143(19)14

Other※18767

８9Intersegment eliminations
and corporate expenses※2

(58)

(59)

(53)

(52)

(57)

(59)

goodwill amortization

(36)

(36)

(19)

(20)

(19)

(19)

35(292)

(363)

(248)

(86)

(151)

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.

82. Game Business（1）Overview
Summary In the operation support field, orders for newly released titles were favorable. On theother hand, in the development field, there were many new development projects thatwere small or completed in a short period of time, which delayed the recovery of thepersonnel utilization ratio tied to earnings, and the progress ratio declined due to theincrease in the total estimated cost of game development.
 As mentioned above, profits increased steadily in the operation support field as orders
were received. However, profitability deteriorated due to the significant impact ofdeclining profitability in the development field.
Net sales（in millions of yen）
5,000

4,482

4,000

（in millions of yen）

Operating profit

50

3,913
0

3,000-50
2,000-100

1,0000-150
FY2022 1HJul.-Dec.ʼ21

FY2023 1HJul.-Dec.ʼ22-109
FY2022 1HJul.-Dec.ʼ21-94
FY2023 1HJul.-Dec.ʼ229

2. Game Business（2）Sales Breakdown
Development sales revenue declined due to a delay in new orders
and a lower progress rate resulting from an increase in estimatedcosts. Operation sales bottomed out due to the contribution of theoperation support field.
（ in millions of yen ）
5,000
4,500
4,000
3,500
3,000

2,113
47%

Operations and Royalties

1,903
49%

2,500
2,000
1,500
1,000

2,370

Development

53%

51%

500
0

2,011

FY2022 1HJul.-Dec.ʼ21
Development

FY2023 1H
Jul.-Dec.ʼ22
Operations and Royalties※Operation sales include sales that involve development, such as version upgrades after delivery and release.
※The breakdown of operation 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 Business（3）Quarterly Sales Breakdown
Operating revenues increased slightly from the current fiscal year
due to the contribution of the operation support field.
（in millions of yen）
3,000

2,500

2,000

1,238 ＋78 1,316 -120 1,196 -128

1,068-22

1,045 -32

1,500

1,013-84933+449701,018
849 ＋169

-32

992

929

+4

1,000

500

1,130-49

1,080

＋48

1,129＋169 1,298-227

1,072-221

850-10Oct.-Dec.ʼ20Jan.-Mar.ʼ21

Apr.-Jun.ʼ21Jul.-Sep.ʼ21

Development

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22

Operations and Royalties※Operation sales include sales that involve development, such as version upgrades after delivery and release.
※The breakdown of operation 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 Business（4）Quarterly Operating Profit
Improvement in business performance stalled due to an increasein the total estimated cost of development projects.
（in millions of yen）

162

200

107

107

100

89
20

Oct.-Dec.ʼ20Jan.-Mar.ʼ21

Apr.-Jun.ʼ21Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22-100-96
-200

-187

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

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

3 （±0 from Nov. 11, 2022）

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

2 （-1 from Nov. 11, 2022）

 開発・運営体制の状況

・employees※5（+3 from Sep. 30, 2022）

794 （-3 from Jun. 30, 2022）※1 as of February 10, 2023. 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, 2022（including some fixed-term contract workers.）

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3. Mobile Business（1）Overview
Summary
 Sales: As the number of visitors continued to fall below the previous year's level, sales
volume fell short of the plan despite efforts to hold events to attract customers.
 Operating profit: Profitability is on a recovery trend due to efforts to increase profit per
customer, including efforts to propose more convenient and reliable use of smartphones,
as well as efforts to strengthen after-sales service, but was not enough to recoup theloss in the first quarter.

Net sales（in millions of yen）
1,400

1,254

1,200

Operating profit（in millions of yen）
40

1,009

1,000

30

27208006001040002000-4-10
FY2022 1HJul.-Dec.ʼ21

FY2023 1HJul.-Dec.ʼ22

FY2022 1HJul.-Dec.ʼ21

FY2023 1HJul.-Dec.ʼ2214

4. Recent Topics（1）Game■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）Game■August 25, 2022
・Presented at CEDEC 2022
「The Road to QA Automation for Efficient 3D Action Game Development: AJourney of a Thousand Miles Begins With a Single Step」（Tech Flag Corporation）■August 28, 2022
・Opened a booth at the 5th Working Kids Adventure, a work experience event
We provided an opportunity to experience game development at the Shiroi-shi
Shiroi Community Center. We will support and cooperate with activities that
support the future of children in the community.
（Game Studio Inc.）■December 19, 2022
・Released "Labyrinth“, a strategic simulation battle game for smartphones
We have started representing game titles developed and marketed by PLAYDEK,INC. in Japan. We translate and localize the products for sale in Japan.
（Wit One Inc.）16

4. Recent Topics（2）Mobile■September 1, 2022
・Opened “PiPoPark Hatanodai” in Tokyo.
（NEPRO CREATE Co., Ltd.）17

Ⅱ. Forecasts for FY2023

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1. Forecasts for FY2023
 We have revised our full-year earnings forecasts as follows in the"Notice of Revision of Earnings Forecasts" dated February 10, 2023.
In the game business, results in the development field have been below
projections. However, profits in the operation support field have been steadily
increasing. We will still aim to return to profitability by partially compensatingfor the decline in profits in the development field.

（in millions of yen）

FY2023
Previous Forecast

FY2023
New Forecast

Change10,71010,470△24011,652

Operating profit

16015△145△869

Ordinary profit

1505△145△86570△95△160△1,231

320

145△175652

Jul.ʼ22-Jun.ʼ23

Net sales

Profit attributable toowners of parent
EBITDA※Jul.ʼ21-Jun.ʼ22Jul.ʼ22-Jun.ʼ23※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

（Reference）
FY2022 Results

19

Ⅲ. Company Profile20

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 943 (as of December 31, 2022. It includes 63 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.

21

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.

GameMobileGame 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.

23

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/SNSKPI Analysis

Localization
Translation
Market Analysis

24Inquiries regarding this document

Contact details
NJ Holdings Inc.
Investor Relations Office
Email︓ir＠njhd.jp
URL︓https://www.njhd.jp/ir/25