JAPAN PROPTECH CO.,LTD. Results of Operations for
the First Quarter of the Fiscal Year
Ending June 30, 2022
A growth strategy for creating platforms
November 15, 2021
Nihon Jyoho Create Co., Ltd.
(Tokyo Stock Exchange Mothers Market: 4054)
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Three-year Growth Strategy
Three-year Growth Strategy - The First Year -
Faster growth to build platforms
FY6/21 results | FY6/22 plan | FY6/23 plan | FY6/24 plan | ||||||
Net sales | ¥2,610 million | ¥3,080 million | ¥3,900 million | ¥5,000 million | |||||
Gross profit | ¥580 million | ¥450 million | ¥850 million | ¥1,560 million | |||||
EBITDA | ¥630 million | ¥580 million | ¥980 million | ¥1,700 million | |||||
Ordinary profit | ¥640 million | ¥490 million | ¥920 million | ¥1,600 million | |||||
Advance to overall optimization | ◼ Plan for increasing sales growth | ||||||||
of customers' business processes | FY6/21→FY6/22 | FY6/22→FY6/23 | FY6/23→FY6/24 | ||||||
Growth of sales and earnings as | +17.8% | +26.4% | +28.2% | ||||||
well as corporate value | ◼ Plan for operating margin growth | ||||||||
Aiming for a Prime Market | FY6/22 | FY6/23 | FY6/24 | ||||||
14.6% | 21.8% | 31.2% | |||||||
listing | |||||||||
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Three-year Growth Strategy
Summary of the Three-year Plan
External factors - Fast market growth fueled by the digital transformation (DX) in three areas
(1) Industry DX: | New mindsets in the entire real estate industry due to amended laws |
- Business process DX: More online activities by real estate companiesbecause of the pandemic
(3) Consumer DX: | Rising pct. of the public who were born and grew up during the | |
internet/information age (digital natives) |
Passage of digital reform laws
Personal and corporate seals are no longer needed on real estate transaction contracts. Digitalization of contracts is expected to speed up the DX of all real estate transactions. NJC has developed its own e-contract format. This contract was released on November 19, 2021 with the goal of quickly targeting the demand for digital real estate contracts.
Changes due to telework demand
Telework demand is moving Chintai Kakumei from on-premises to the cloud. NJC uses cloud and other support to enable real estate companies to shift to online business processes.
Chintai Kakumei
for the Cloud
OfficeHome
About 6,000 homebuilding companies start operating every year
There are more than 120,000 homebuilding companies in Japan and 5,000 to 6,000 of companies in this business start operating every year.Some businesses will be started by digital natives, which will speed up the DX. NJC has added a service plan (the Start Value Plan) to serve this customer segment.
Start Value Plan
Source:
Statistics for Homebuilders and Residential Land and Building Transaction Brokers, end of fiscal 2018, Real Estate Transaction Improvement Organization and Number of Residential Land and Building Transaction Companies, Ministry of Land, Infrastructure, Transport and Tourism
Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. | 3 |
Three-year Growth Strategy
Summary of the Three-year Plan
NJC plans to grow rapidly along with the real estate industry DX
(1) Platform strategy: | A product lineup covering all real estate business processes |
- Investments in people/assets: Up-front expenditures for hiring people, adding sales offices and developing products
- As the real estate DX market emerges, market share growth is the highest priority
A platform encompassing all real estate business processes
Property
purchasing/sharing
Advertising/
Business analysisAttracting customers
Applications
Tenant/ownerand contracts management
Property and rent
management
Recruiting and Network Expansion
Continue upgrading sales consulting linked to local markets, a core
strength of NJC.The digitalization of Japan's real estate companies will require a nationwide network of physical offices and more sales consultants. Starting in FY6/22, NJC
is making big investments for more sales offices and more people.
More sales offices and salespeople
Growth of the Real Estate DX Market
Real estate industry IT capital expenditures in Japan are only about 10% of these expenditures in the U.S. Productivity is only 40% of the U.S. level. Furthermore, real estate industry productivity in Japan is far below the average for all industries*1.
NJC believes that the real estate DX era is just beginning and plans to make up-front expenditures to capture market share.
*1 Source: Survey for Economic Analysis of ICT in fiscal 2018 (2019), Ministry of Internal Affairs and Communications
Source: 2015 Analysis of Labor Economics (September 2015), Ministry of Health, Labour and Welfare
Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. | 4 |
Contents
1. 1Q FY6/22 Financial Results | P 6 |
2. Efforts to Achieve the Three-Year Plan | P 13 |
3. Activities for More Growth | P 20 |
4. Appendix | P 25 |
Three-year Growth Strategy
Explanations of Individual Strategies
(Product Strategy / People Strategy / Customer Strategy)
Business Climate / Competitive Superiority
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Nihon Jyoho Create Co. Ltd. published this content on 24 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 December 2021 06:16:19 UTC.
