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

Tokyo Stock Exchange Standard Market
Code number: 9421

November 10, 2023
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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. FY2024 First Quarter Highlights

Ⅱ. Forecasts for FY2024

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

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Ⅰ. FY2024 First Quarter 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 1Q
Jul.-Sep.ʼ22

FY2024 1Q
Jul.-Sep.ʼ23

ChangeNet sales

2,415

2,767

352

Cost of sales

2,073

2,203

129

Gross profit

341564

222

Selling, general andadministrative expenses

428

415

(12)

Operating profit(86)148234

Ordinary profit

(89)

153

242

Net income before
income taxes

(89)

188

277

Profit attributable toowners of parent

(88)

142

231

EBITDA※

(54)

173

228

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

（in millions of yen）

・Game

327

・Mobile27・Mobile

(17)

・Game

210

・Mobile29

5

1. Consolidated Financial Results（2） Results by Segment
Game business increased both sales and profit. Mobile businessturned to black.
（in millions of yen）
Net sales
FY2023 1Q

FY2024 1Q

Game

1,950

2,278Mobile447

Other※1

Operating profit
FY2023 1Q

FY2024 1Q

327

2212210475

27(19)

1029

1816(1)880Intersegment
eliminations andcorporate expenses※2

(1)

(2)

(1)

(57)

(62)

(5)

goodwill amortization

―――

(19)

(19)

0

2,415

2,767

352(86)148

234

Jul.-Sep.ʼ22

Consolidated total

Jul.-Sep.ʼ23

ChangeJul.-Sep.ʼ22

Jul.-Sep.ʼ23

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
Game business recovered to over 2 billion yen. Mobile businessincreased YoY in Q1 due to higher handset prices.

（in millions of yen）

Net Sales
FY2023
1Q

Jul.-Sep.ʼ22

2Q

Oct.-Dec.ʼ22

FY2024
3Q

Jan.-Mar.ʼ23

4Q

Apr.-Jun.ʼ23

1Q

Jul.-Sep.ʼ23

Game

1,950

1,962

2,110

1,972

2,278

Mobile

447

561

599

462

475

Other※118

17

17

17

16Intersegment eliminations

(1)

(1)

(2)

(1)

(2)

――――――

2,415

2,540

2,725

2,450

2,767

Consolidated total※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
Profits grew due to transitory profit factors in the game business.
Mobile business increased sales profit per customer.
（in millions of yen）
Operating Profit
FY2023
1Q

2Q

Jul.-Sep.ʼ22

FY2024
3Q

Oct.-Dec.ʼ22

4Q

Jan.-Mar.ʼ23

1Q

Apr.-Jun.ʼ23Jul.-Sep.ʼ23

Game

2(96)

130

7212

Mobile(19)1415(25)

10Other※189998

Intersegment eliminations
and corporate expenses※2(57)

(59)

(55)

(53)

(62)

goodwill amortization

(19)

(19)

(19)

(20)

(19)

Consolidated total

(86)

(151)

80

(81)

148

※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 increased due to firm orders in the operation support field, where thecompany has expanded its workforce since the previous fiscal year, as well as 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）

（in millions of yen）

3,000

250

2,278

2,500
2,000

Operating profit

1,950

212

200
150

1,500
100

1,000500

50002
FY2023 1QJul.-Sep.ʼ22FY2024 1Q
Jul.-Sep.ʼ23

FY2023 1QJul.-Sep.ʼ22

FY2024 1Q
Jul.-Sep.ʼ2392. Game Segment（2）Sales Breakdown
Development and other sales increased, due in part to transitory
factors. In operation and royalty sales, sales of operated titles
declined, but orders in the operation support field increased.
(in millions of yen)
2,500

2,000

1,500

961
933(48%)Operations and Royalties

(42%)

+28

1,000

500

01,018Development and others

(52%)

+299

FY2023 1Q
Jul.-Sep.ʼ221,318(58%)

FY2024 1Q
Jul.-Sep.ʼ23
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
Operational sales remained generally flat due to personnel
expansion of the operational support field.
（in millions of yen）
2,500

2,000

1,068

-22

1,045

1,500

-32

1,013

-84

850

-1+4933

＋169

1,018

+38

929

970

-18

961

953

-6

1,157-132

947

+14

1,000

500

1,298-227

1,072 -221849

165-26992

1,025+292 1,318

0Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Development and others

Oct.-Dec.ʼ22

Jan.-Mar.ʼ23

Apr.-Jun.ʼ23

Jul.-Sep.ʼ23

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
Profits in the development field temporarily increased. Profitability
in the operation support field was maintained.
（in millions of yen）
300

212
200

100

130
89
7

20Jul.-Sep.ʼ21

Oct.-Dec.ʼ21Jan.-Mar.ʼ22

Apr.-Jun.ʼ22Jul.-Sep.ʼ22

Oct.-Dec.ʼ22Jan.-Mar.ʼ23

Apr.-Jun.ʼ23Jul.-Sep.ʼ23-100-96-200-187-199-300-311-400※The breakdown of operating income by development and operation is not disclosed.

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

4 （±0 from Aug. 14, 2023）

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

0 （±0 from Aug. 14, 2023）

 Business Size Information

・employees※5840 （+4 from Jun. 30, 2023）※1 as of November 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 September 30, 2023（including some fixed-term contract workers.）

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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）

（in millions of yen）

70040600

30500

447475

20400

10300

0200-10100-200-30
FY2023 1Q
Jul.-Sep.ʼ22

FY2024 1Q
Jul.-Sep.ʼ23

Operating profit

10-19
FY2023 1Q
Jul.-Sep.ʼ22

FY2024 1Q
Jul.-Sep.ʼ2314

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.

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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
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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

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1. Forecasts for FY2023（1）Full Year Consolidated Earnings Forecast
No change from the most recently announced forecasts on August 14, 2023.
（in millions of yen）

FY2024 1Q
Results
Jul.-Sep.ʼ23

FY2024
ForecastProgress(Reference)
FY2023 Results

Jul.ʼ23-Jun.ʼ24Jul.ʼ22-Jun.ʼ232,76710,370

26.7％

10,131

Operating profit

148

200

74.1％

(239)

Ordinary profit

153

180

85.1％

(260)

Profit attributable toowners of parent

142

120

119.0％(469)

EBITDA※

173300

57.9％

(113)

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

201. Forecasts for FY2023（2）Progress Toward Financial Forecasts
Game
The high progress rate toward the full-year operating income forecast in the firstquarter was mainly due to transitory profit factors in the game business, including
the transfer of rights to game titles that had been undergoing in-house development
and a decrease in development costs. The personnel utilization rate, which declined
due to the cancellation of development projects that occurred in the fourth quarterof the previous fiscal year, is improving. With several projects coming to an end in
the first quarter of the current fiscal year, the anticipated downward impact onearnings was covered by orders of short-term projects. Therefore, the downside risk
may be delayed to the second quarter of the fiscal year. There are no changes in theforecast of the game segment as of this moment.

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

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2. Forecasts by Segment（1）Sales Forecast by Segment（in millions of yen）
10,000
7,500
5,000
2,500
0Game

MobileFY2023 Result

FY2024 Forecast

Percentage of net sales by segment
FY2024 Forecast

FY2023 ResultMobileMobile

20%

16%
Game
79%

Game
83%

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

（in millions of yen）
600Others
MobileGame

Goodwill
amortization

Intersegment
eliminations andCorporateexpenses※400

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

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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 1,006 (as of September 30, 2023. It includes 82 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.

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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 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.
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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

DeveloperDevelopment

Selling

Operationdistribution

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/SNSKPI 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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