Supplemental Material
For FY2024 Full Year
Financial Results
NJ Holdings Inc.

Tokyo Stock Exchange Standard Market
Code number: 9421

August 9, 2024
1

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

Contents

Ⅰ. FY2024 Full Year Highlights

Ⅱ. Forecasts for FY2025

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

3

Ⅰ. FY2024 Full Year Highlights

41. Consolidated Financial Results（1）Results Summary
Operating profit has turned positive mainly due to outsourcing cost
reductions and transitory profit factors in the game business.
FY2023

FY2024

Change（ in millions of yen ）

9,698

(433)

Breakdown of Change
・game (415)

8,638

7,933

(704)

Breakdown of Change
・game (724)Gross profit

1,493

1,764

271

Selling, general andadministrative expenses

1,732

1,661

(70)

Breakdown of Change
・mobile (97)
Breakdown of Change
・game 296
・mobile 60

10,131

Cost of sales

Net sales

Operating profit

(239)

102

342

Ordinary profit

(260)

96

356

Net income before
income taxes

(377)

284

662

Profit attributable toowners of parent(469)

274

744

EBITDA※(113)213329※ Throughout this document, EBITDA is defined by adding back depreciation and goodwill amortization to operating profit.

214 Extraordinary income
for this fiscal year5

1. Consolidated Financial Results（2）Results by Segment
Profits recovered in the game business, and the mobile businessreturned to profitability.

（in millions of yen）

Net sales
FY2023

FY2024

Operating profit
ChangeFY2023

FY2024

Change

Game

7,995

7,580(415)

43340

296

Mobile

2,070

2,063

(6)

(14)

4660

Other※17170

03735(1)Intersegment
eliminations andcorporate expenses※2(6)

(16)

(10)

(225)

(239)

(13)

goodwill amortization

―――

(80)

(80)

0

10,131

9,698

(433)

(239)

102

342

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.

61. Consolidated Financial Results（3）Quarterly Net Sales by Segment

In the game business, sales declined from 3Q to 4Q due to thetermination of operating titles and the impact of projects whose
development system had passed its peak.
（in millions of yen）
Net Sales
FY2023
1Q

2Q

FY2024
3Q

4Q

1Q

2Q

3Q

4Q

Jul.-Sep.’22

Oct.-Dec.’22

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

Jan.-Mar.’24

Apr.-Jun.’24

Game

1,950

1,962

2,110

1,972

2,278

1,837

1,920

1,543

Mobile

447

561

599

462

475

551

543

493

Other※1

18

17

17

17

16

18

18

17

Intersegment
eliminations

(1)

(1)

(2)

(1)

(2)

(4)

(4)

(4)

―――――――

―

―

2,415

2,540

2,725

2,450

2,767

2,402

2,477

2,050Consolidatedtotal※1 The Other segment is a business segment not included in the reportable segments.

71. Consolidated Financial Results（4）Quarterly Operating Profit by Segment
In the game business, personnel utilization rate declined from 3Q to 4Q
due to the termination of operating titles and the impact of projects
whose development system had passed its peak.
（in millions of yen）
Operating Profit
FY2023
1Q

2Q

FY2024
3Q

4Q

1Q

2Q

3Q

4Q

Jul.-Sep.’22

Oct.-Dec.’22

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

Jan.-Mar.’24Apr.-Jun.’24

Game

2(96)

130

7

212

138

29(39)

Mobile(19)1415(25)1017144

Other※18999８108

7Intersegment
eliminations andcorporate expenses※2(57)

(59)

(55)

(53)

(62)

(60)

(28)

(86)

goodwill
amortization

(19)

(19)

(19)

(20)

(19)

(19)

(19)

(20)

Consolidated total

(86)

(151)

80

(81)

148

86

2(135)※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 Despite the recording of sales from the transfer of rights to game titles that had beendeveloped in-house, sales declined due to the completion of development anddownsizing of the structure of titles in operation.
 Although there were some delay in orders and fewer orders received in the fourth
quarter of the financial year, the impact on profit and loss was reduced by controllingoutsourcing costs.

Net Sales（in millions of yen）

400

10,0008,000

Operating Profit（in millions of yen）

7,995

340

7,580
300

6,000
200
4,000
100

2,0000FY2023

FY2024043FY2023

FY202492. Game Business（2）Sales Breakdown
Operation sales decreased due to the downsizing of thedevelopment team for the operating titles.
（ in millions of yen ）
9,000
8,000

657 [8％]Others
278

7,000
6,000
5,000

3,803
[48％]

Operations and Royalties(544)

935 [12％]

3,247
[43％]

4,000
3,000
2,000
1,0000Development
(137)

3,536
[44％]

FY2023

3,398
[45％]

FY2024Development

Operations and Royalties

Others※Development sales cover sales up to the time of delivery and release.
※Operational sales include sales that involve development, such as version upgrades after delivery and release.
※Other sales cover sales in the peripheral areas of games and other projects related to operation and development.

102. Game Business（3）Quarterly Sales Breakdown
In operation sales, there were terminations of operation titles anddownsizing of the team. In development sales, some projects havepassed the peak of the development team and there were delays inreceiving orders for development projects.
（in millions of yen）
2,500
232
2,000148＋3145＋17165＋10175-7＋63-11169＋23221

1,500＋3933+38-18970

953

244-5961-6＋14947-113

238-67780

847

929-1211,000

659＋166500
704＋155-43
871

827

Jul.-Sep.’22

Oct.-Dec.’22-26
982＋229857

1,086-316＋127769

897-250647

0Apr.-Jun.’22Jan.-Mar.’23

Development

Apr.-Jun.’23

Jul.-Sep.’23

Operations and Royalties

Oct.-Dec.’23

Jan.-Mar.’24

Apr.-Jun.’24

Others※Development sales cover sales up to the time of delivery and release.
※Operational sales include sales that involve development, such as version upgrades after delivery and release.
※Other sales cover sales in the peripheral areas of games and other projects related to operation and development.

112. Game Business（4）Quarterly Operating Profit
Profitability deteriorated in the fourth quarter due to shrinking
orders and delays in receiving orders for development projects.

（in millions of yen）
250

212

200
138

130

150
100
50

29

7

20
Apr.-Jun.’22

Jul.-Sep.’22

Oct.-Dec.’22

Jan.-Mar.’23

Apr.-Jun.’23

Jul.-Sep.’23

Oct.-Dec.’23

Jan.-Mar.’24-50

Apr.-Jun.’24-39-100-96-150-200-187-250※The breakdown of operating income by development and operation and others is not disclosed.

12

2. Game Business（5）Other Information
Number of current developments, etc.
 Number of projects under development※1

・console type※2 ※3（console and PC）

5 （±0 from May 10, 2024）

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

0 （±0 from May 10, 2024）

 Business Size Information

・employees※5（-11 from Mar. 31, 2024）

809 （-27 from Jun. 30, 2023）※1 as of August 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 June 30, 2024（including some fixed-term contract workers.）

13

3. Mobile Business（1）Overview
Summary
 Sales volume continued to fall below the previous year's level due to the withdrawal of
unprofitable shops at the end of the previous year. However, sales conditions recovered
somewhat in the fourth quarter, with unit sales prices rising in line with rising handset prices,
resulting in sales levels on par with the previous fiscal year.
 In the carrier shop division, profit per customer increased due to strengthened sales ofaccessories and other peripheral products, etc. In the non-carrier shop division, profitability
improved due to withdrawal from unprofitable stores implemented at the end of the previous
period. Operating income returned to the black.

Net Sales（in millions of yen）
2,500

2,070

（in millions of yen）
50

2,063

2,000

Operating Profit
46

4030

1,500

20
10

1,000

0500
0

FY2023

FY2024-10
FY2023

FY2024-20-1414

4. Recent topics（1-1）Game segment■July 26, 2024
『AOONI』 is released on Nintendo Switch and STEAM®.
（published and developed by Game Studio Inc.）© LiTMUS / noprops / Game Studio Inc.

15

4. Recent topics（1-2）Game segment■July 8, 2024
『 BARRAGE ARENA 3v3 』 is released on Fortnite. It is a projectthat utilizes the UEFN.
（developed by Game Studio Inc.）16

4. Recent topics（1-3）Game segment■June 6, 2024 (※)
『50 PINCH BARRAGE!!』 is released on Nintendo SwitchSTEAM®.
（published and developed by Game Studio Inc.）and© LiTMUS / noprops / Game Studio Inc.

※STEAM® version is released on August 1, 202417

4. Recent topics（1-4）Game segment■March 7, 2024
『Kagonotori: THE BIRD IN THE CAGE』 is released on Fortnite.
It is a project that utilizes the UEFN.
（developed by Game Studio Inc.）18

4. Recent topics（1-5）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.

19

4. Recent topics（1-6）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.)20

4. Recent topics（2）Mobile segment■July 6, 2023
・Opened “iCracked Store in Beisia Maebashi SouthMall” in Gunma.
(NEPRO CREATE Co., Ltd.)21

Ⅱ. Forecasts for FY2025

22

1. Forecasts for FY2025（1）Consolidated Full-Year Forecasts（in millions of yen）

FY2024
Results

FY2025
Forecastchange9,698

8,870(828)

Operating profit

102100(2)Ordinary profit

9660

(36)

Profit attributable toowners of parent

274

40(234)

EBITDA※

216

240

(23)

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

23

1. Forecasts for FY2025（2）Business Outlook
GameThe effects of the contraction in orders and delay in orders for development projects
that began to appear in the fourth quarter of the current fiscal year (ended June 30,2024) are expected to continue for some time in the next fiscal year (ending June 30,2025), but we expect to receive orders for projects for which planning proposals arein progress from the second quarter onward.
Accordingly, the business is expected to be in a deficit in the first half of the next
fiscal year, but we expected to generally break even in the second quarter of thefinancial year and to be profitable for the full year.

MobileIn the next fiscal year, the mobile business will continue to work on securing profit
earned per customer by strengthening sales of peripheral products and othermeasures. And we will strengthen our dominant strategy and push ahead with theexpansion of our community-based shop business.

24

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
FY2024 Forecast

FY2023 ResultMobileMobile21%
Game
78%

24%
Game
75%

25

2. Forecasts by Segment（2）Breakdown of full-year operating income forecast
The full-year operating income forecast is 100 million yen.

（in millions of yen）
600

OthersMobile

400

200

Game

Goodwill
amortization

Intersegment
eliminations andCorporateexpenses※Operatingincome0※ Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

26

3. Dividend
Year-end dividend We consider the return of profits to shareholders to be one of its
most important management policies, and its basic policy is to pay
stable dividends on a continuous basis while taking into
consideration internal reserves for medium- to long-term businessexpansion and the development of new businesses.
 Although we returned to profitability on a consolidated basis in thecurrent fiscal year (ended June 30, 2024), we regret to inform youthat we will pay no dividend, as our efforts to recover our businessperformance are still halfway through and we need to improve ourfinancial position and secure working capital amidst the increasingly
severe business environment. As for the dividend for the next fiscal
year (ending June 30, 2025), it is undecided.

27

Ⅲ. Company Profile28

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, 2024)
Number of Employees: consolidated 961 (as of June 30, 2024. It includes 74 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.

29

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.

Game

MobileGame 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.
30

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.

31

2. Game Business（2）Services for mobile app games
 Scope of each company’s game business
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

32

（reference data）Consolidated Cash Flow（in millions of yen）

FY2023Full YearFY2024First HalfFY2024
Full Year

Cash flow fromoperating activities

339

352

661

Cash flow frominvestment activities

(253)

470

421

Cash flow fromfinancing activities

(43)

(183)

(526)

1,136

1,777

1,693

Cash and cash
equivalents33

（reference data）Goodwill■ Amount of goodwill recognized in the balance sheet（in millions of yen）
1,400

1,168

1,200

1,000

1,067
982
857

834
733

800

625
600

500

420

400

340

200

0
2015/3

2016/32017/3

2018/3

2019/32020/62021/62022/62023/62024/634

（reference data）Segment Percentage of Net Sales

100%
90%1.1%
3.9%

1.6%

1.4%

1.0%

10.6%

11.8%

9.7%

3.4%

0.7%

0.6%

0.6%

0.7%

0.7%

78.1%

76.2%

78.9%

78.1%

21.4%

23.1%

20.4%

21.2%

2021/62022/62023/62024/6

14.6%

80%
70%

41.8%

60%

59.2%
48.3%

53.7%

72.0%

50%
40%

80.4%

30%

46.0%

20%

38.5%

35.6%

37.4%
27.3%

10%
0%
2015/3

2016/32017/3

2018/3
Mobile

2019/3Game

2020/6

Personnel Dispatch

Others35

（reference data）Net Assets/Equity Ratio/ROE（in millions of yen）
4,000

3,500

200.0%

3,773

146.0%
3,092

3,079

3,213

3,198

150.0%

3,067

3,000

2,500

2,000

100.0%

2,444
48.1%

48.7%

46.2%

49.7%

18.8%

1,500

51.1%

43.5%

53.2%

38.8%
1,801

5.9%

0.8%

-17.4%

1,305

40.1%

50.0%

1,580
19.0%
0.0%

-2.9%

-22.8%

1,000

31.1%

-30.2%-50.0%-50.6%

500-100.0%0
2015/3

2016/32017/3

2018/3
Net Assets

2019/32020/6Equity Ratio

2021/62022/62023/62024/6ROE

36

（reference data）Operating income and ratio of
it/Net income attributable to parent and ratio of it（in millions of yen）
3,500

35.0%
3,147

3,000

25.1%

25.0%

2,500
15.0%

2,000
5.9%

1,500

1,000

500

-0.2%

-0.4%

2.8%

4.6%
-5.6%

665

-3.8%

-2.8%
-6.6%

1.7%
519
308

-6.7%

185

0.2%
206

2.8%

1.8%

1.4%

-2.4%
-0.8%

△ 43
△ 500

△ 51

△ 481

-11.6%
△ 92

△ 510
△ 597

△ 1,000

-5.0%
-4.6%

0

1.1%

-8.2%

221
27

5.0%

103

275

-15.0%
△ 239

△ 358

△ 469

△ 632

-25.0%△ 869△ 1,232△ 1,500
2014/3

2015/3

2016/3Operating income

2017/3Net income

2018/3

2019/32020/6

Operating income ratio

2021/62022/6-35.0%
2023/62024/6

Net income ratio37Inquiries regarding this document

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

38