Nihon Jyoho Create : Non-consolidated Financial Results for the Third Quarter of the Fiscal Year Ending June 30, 2022

(All amounts are rounded down to the nearest million yen.)

Non-consolidated Financial Results for the Third Quarter

of the Fiscal Year Ending June 30, 2022

(Nine Months Ended March 31, 2022)

[Japanese GAAP]

May 13, 2022

Company name:	Nihon Jyoho Create Co., Ltd.	Listing: Tokyo Stock Exchange
Stock code:	4054	URL: https://www.n-create.co.jp/
Representative:	Yonetsu Kenichi, Representative Director, President
Contact:	Senokuchi Naohiro, Director, Head of Administration Department
	Tel: [phone]
Scheduled date of filing of Quarterly Report:	May 13, 2022
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for financial results:	Yes
Holding of financial results meeting:	None

1. Financial Results for the Third Quarter of the Fiscal Year Ending June 30, 2022 (July 1, 2021 to March 31, 2022)

(1) Results of operations					(Percentages represent year-on-year changes.)
	Net sales	Operating profit	Ordinary profit	Profit
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%
Nine months ended Mar. 31, 2022	2,197	13.2	449	(0.9)	487	(3.4)	339		(3.4)
Nine months ended Mar. 31, 2021	1,942	11.4	453	19.9	504	27.2	351		34.7
	Net income per share	Diluted net income per
			share
		Yen		Yen
Nine months ended Mar. 31, 2022		23.80		23.40
Nine months ended Mar. 31, 2021		25.94		24.71

Notes: 1. Nihon Jyoho Create conducted a 2-for-1 common stock split on December 1, 2020. The amounts of net income per share and diluted net income per share were calculated as if the stock split had taken place at the beginning of the fiscal year ended June 30, 2021.

1. 2. The shares of Nihon Jyoho Create were listed on the Tokyo Stock Exchange Mothers market on July 31, 2020. As a result, diluted net income per share for the nine months ended March 31, 2021 is calculated by using the average stock price from the date of listing to the end of the third quarter of the previous fiscal year as the average stock price during the period.

2. Financial position

	Total assets		Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of Mar. 31, 2022	4,585		3,256		71.0
As of Jun. 30, 2021	4,323		2,983		69.0
Reference: Shareholders' equity (millions of yen)	As of Mar. 31, 2022: 3,256	As of Jun. 30, 2021: 2,983

2. Dividends

			Dividend per share
	1Q-end	2Q-end		3Q-end		Year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended Jun. 30, 2021	-	0.00		-		5.00	5.00
Fiscal year ending Jun. 30, 2022	-	0.00		-
Fiscal year ending Jun. 30, 2022 (forecast)						5.00	5.00

Note: Revisions to the most recently announced dividend forecast: None

3. Earnings Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)

(Percentages represent year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit		Net income per share
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	3,084		17.8	450	(23.2)	495	(22.8)	325	(21.5)	22.91

Note: Revisions to the most recently announced earnings forecast: None

* Notes

1. Application of special accounting methods for preparing quarterly non -consolidated financial statements: Yes
2. Changes in accounting policies and accounting estimates, and restatements
3. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of shares outstanding (common shares)
5. 1. Number of outstanding shares as of the end of the period (including treasury shares)

As of Mar. 31, 2022:

14,260,440 shares

As of Jun. 30, 2021:

14,226,440 shares

1. Number of treasury shares as of the end of the period

As of Mar. 31, 2022:	30 shares	As of Jun. 30, 2021:	30 shares
3) Average number of outstanding shares during the period
Nine months ended Mar. 31, 2022:	14,247,915 shares	Nine months ended Mar. 31, 2021:	13,533,298 shares

Note: Nihon Jyoho Create conducted a 2-for-1 common stock split on December 1, 2020. The number of outstanding shares as of the end of the period and the average number of outstanding shares during the period were calculated as if the stock split had taken place at the beginning of the fiscal year ended June 30, 2021.

• This quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
• Explanation of appropriate use of earnings forecasts, and other special items
  Forecasts of future performance in these materials are based on estimates and assumptions judged to be valid and information available at the time these materials were prepared, but are not guarantees by Nihon Jyoho Create regarding future performance. Actual results may differ from these forecasts for various reasons.

	Nihon Jyoho Create Co., Ltd. (4054) Financial Results for the Third Quarter of FY6/22
Contents of Attachments
1. Qualitative Information on Quarterly Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Earnings Forecast and Other Forward -looking Statements	4
2. Quarterly Non-consolidated Financial Statements and Notes	5
(1)	Quarterly Non-consolidated Balance Sheet	5
(2)	Quarterly Non-consolidated Statement of Income	6
(3)	Notes to Quarterly Non-consolidated Financial Statements	7
	Going Concern Assumption	7
	Significant Changes in Shareholders' Equity	7
	Application of Special Accounting Methods for Preparing
	Quarterly Non-consolidated Financial Statements	7
	Changes in Accounting Policies	7
	Subsequent Events	8
3. Other
	Important Information about Going Concern Assumption	10

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Nihon Jyoho Create Co., Ltd. (4054) Financial Results for the Third Quarter of FY6/22

1. Qualitative Information on Quarterly Financial Performance

(1) Explanation of Results of Operations

Forward-looking statements stated herein are based on the estimates and assumptions of Nihon Jyoho Create as of March 31, 2022.

During the nine-month period ended March 31, 2022, the Japanese economy was in a challenging environment because of the impact of the COVID-19 pandemic but there are expectations for a recovery because of various preventive measures and the upturn in overseas economies. However, there is a risk of an economic downturn because of uncertainty created by the Ukraine crisis, the high cost of raw materials, financial market volatility and limitations on the supply of many items. Furthermore, caution is still required regarding the pandemic. In the market for real estate support services, including the SaaS -type cloud services and other services that we provide, opportunities for the digital transformation of the entire real estate industry are increasing ahead of the May 2022 start of the use of electronic formats (elimination of seal impressions) for all real estate contracts. In addition, demand for IT capital expenditures is growing for the increasing use of telework for safety during the pandemic and improving productivity. As a result, the business climate is remaining favorable for operations of Nihon Jyoho Create.

Under the circumstances we are implementing various strategies to build optimum platforms for the real estate industry and achieve the goals of our Three-Year Plan Growth Strategy that lays down the plan for the next three years.

• Details of the Three-Year Growth Strategy can be found in the "Results of Operations for the Fiscal Year Ended June 30, 2021" posted on our IR website.

Our basic strategy is to propose the introduction of free of charge services such as "Fudosan BB," a B-to-B property listing platform, and "Electronic Rent Application" to increase contact with real estate agents throughout Japan, and then to sell value-added paid solutions. The significant feature of our service is that it offers integrated lineup of services that cover all operations of the real estate companies. Selection of optimum combinations of services offers additional benefits. In addition, we have been proactively proposing solutions to new customers and upsells and cross-sells to existing customers since many services have a billing system that matches the growth of customers.

In one step involving the May 2022 start of electronic real estate contracts, we established an agreement with Century 21 Real Estate of Japan Ltd. for the OEM provision of our e -contract system. This will give the 991 member stores (as of December 31, 2021) of this company access to this system. Nihon Jyoho Create and Century 21 Real Estate of Japan plan to use this alliance for creating new synergies that result in progress involving the goals of both companies as well as more progress of the real estate industry. Furthermore, we will continue to conduct extensive e-contract sales activities that leverage our ability to develop products internally in order to increase the number of new customers for this service and the number of current customers who use this service.

Creating platforms is the central theme of our medium -term vision. As in the fiscal year's first half, we continued activities for forging alliances with many companies in order to accompl ish this vision. One step is the start of data linkage involving the Fudosan BB free B-to-B property listing platform service and the property information of Daikyo Anabuki Real Estate Inc. This adds more value to Fudosan BB. We also started an alliance with AIG General Insurance Co., Ltd. that facilitates a data link with an insurance company. In addition, we started an alliance with Credit Saison Co., Ltd. involving rent guarantees. There are now rent guarantee alliances with more than 30 companies. These alliances will expand the scope of our platform, and, with our partners, we will continue to contribute to the digital transformation of the real estate industry.

The increase in the number of sales consultants, which are critically important elements of the Three-Year Plan, is progressing generally as planned, although there are delays in when some new employees are starting their jobs. Recently hired sales consultants are already working at one of our 29 sales offices. Recruiting activities a re

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Nihon Jyoho Create Co., Ltd. (4054) Financial Results for the Third Quarter of FY6/22

continuing in order to achieve the goal of adding 60 people to our sales consultant team during the current fiscal year. A department dedicated solely to education and training activities is providing highly effective support for new employees. We are upgrading education tools and taking other steps to make these new employees productive quickly.

The impact of the COVID-19 pandemic on our financial results was not significant.

Our results of operations for the first nine-month period from July 1, 2021 to March 31, 2022 were as follows:

Net sales: 2,197 million yen, an increase of 255 million yen (13.2%) over the same period last year

Operating profit: 449 million yen, a decrease of 4 million yen (0.9%) over the same period last year

Ordinary profit: 487 million yen, a decrease of 16 million yen (3.4%) over the same period last year

Profit: 339 million yen, a decrease of 11 million yen (3.4%) over the same period last year

The performance by service category is as follows.

Solutions for Brokers

In the Solutions for Brokers segment, there are many sales activities involving our tools and services to solve issues, such as promotions using our website, web advertisements and solutions related to real estate portal sites.. In addition, we are using many activities for the conversion of customers from free services to services with fees. Our freemium strategy (see note) involves giving customers currently using the free B -to-B property listing platform service to start using services for the secondary use of data.

This has led to significant upselling, making the sales of this category to 682 million yen.

Note: Business model in which basic services or products are provided free of charge, and a fee is charged for the use of more advanced functions or services.

Solutions for Property Management

Sales to new customers, sales of version upgrades to existing customers, additions of options and other activities are going well. Monthly fees continued to increase as the result of promotions involving IT investment subsidies and of the demand for upgrading "Chintai Kakumei" to its cloud-based version. The sales of this category was 1,487 million yen.

• In addition to above sales of 2,170 million yen from the Solutions for Brokers and the Solutions for Property Management, sales of 27 million yen were recorded from other activities.

(2) Explanation of Financial Position

1) Assets

Total assets at the end of the third quarter of the current fiscal year increased by 261 million yen from the end of the previous fiscal year to 4,585 million yen. The balance of current assets decreased by 17 million yen from the end of the previous fiscal year to 3,396 million yen. The balance of non-current assets increased by 279 million yen from the end of the previous fiscal year to 1,189 million yen.

The decrease in current assets is primarily attributable to a decrease in accounts receivable-trade. The increase in non-current assets is primarily attributable to an increase in intangible assets involving pre-release software that was developed internally.

2) Liabilities

Total liabilities at the end of the third quarter decreased by 11 million yen from the end of the previous fiscal year to 1,328 million yen. The balance of current liabilities decreased by 10 million yen from the end of the previous fiscal year to 1,323 million yen.

This is mainly attributable to a decrease in income taxes payable as income taxes for the previous fiscal year were paid and an increase in the provision for bonuses for the payment of summer bonuses.

3