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

Non-consolidated Financial Results for the First Quarter

of the Fiscal Year Ending June 30, 2022

(Three Months Ended September 30, 2021)

		[Japanese GAAP]
		November 15, 2021
Company name: Nihon Jyoho Create Co., Ltd.	Listing: Tokyo Stock Exchange (Mothers)
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:	November 15, 2021
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting:	None

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

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

(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	%
Three months ended Sep. 30, 2021	743		14.7	176	8.2	214	42.4	149	42.4
Three months ended Sep. 30, 2020	648		-	163	-	150	-	104	-
	Net income per share	Diluted net income per
				share
			Yen		Yen
Three months ended Sep. 30, 2021			10.51		10.31
Three months ended Sep. 30, 2020			8.09		7.71

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 three months ended September 30, 2020 is calculated by using the average stock price from the date of listing to the end of the first 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 Sep. 30, 2021	4,348		3,063		70.5
As of Jun. 30, 2021	4,323		2,983		69.0
Reference: Shareholders' equity (millions of yen)	As of Sep. 30, 2021: 3,063	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		-
Fiscal year ending Jun. 30, 2022 (forecast)			0.00		-		5.00	5.00

Note: 1. 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 Sep. 30, 2021:

14,238,440 shares

As of Jun. 30, 2021:

14,226,440 shares

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

As of Sep. 30, 2021:	30 shares	As of Jun. 30, 2021:	30 shares
3) Average number of outstanding shares during the period
Three months ended Sep. 30, 2021:	14,230,797 shares	Three months ended Sep. 30, 2020:	12,983,106 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 First 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
	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	7

1

Nihon Jyoho Create Co., Ltd. (4054) Financial Results for the First 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 September 30, 2021.

During the three-month period ended September 30, 2021, 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. Nevertheless, we need to keep an eye on the pandemic situation at home and abroad and effects of supply chain issues as these pose downside risk to the economy, fluctuations in the financial and capital markets and other factors.

Nihon Jyoho Create provides IT solutions like SaaS -type cloud services to the real estate industry. The passage of the Digital Reform Bill and establishment of Digital Agency means that dig ital transformation (DX) (elimination of seal impressions) of real estate transactions is just around the corner and will accelerate. In addition, there is a growing movement to promote IT-related investment in the industry, such as in the "real estate tech" that combines real estate transactions and technology. There is a growing number of companies that are enhancing operational efficiency through digital transformation.

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 follow up with proposals for 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. Sele ction 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.

We plan to release on November 19, 2021 the "Chintai Kakumei E-Contract Option" developed inhouse for complete digitalization of the real estate industry. The new user-friendly product offers enhanced operability and advanced screen design. We have received positive responses from existing customers. In addition, the expansion of sales office network is progressing smoothly. While we are run ning somewhat behind on our annual recruiting plan for salesforce (consultants), we have received many applications nationwide and are working to achieve the target.

As for alliances with partner companies for creation of platform to best fit real estate industry, we have started alliances with SBI Nihon SSI Co., Ltd. and Nihon Kyosai Co.,Ltd. regarding application for rental property insurance. We also have collaboration agreements with rent guarantee companies and lifeline agents. Going forward, we will actively promote business alliances with insurance companies.

We were concerned that the impact of the COVID-19 pandemic would be prolonged because of the issuance of a state of emergency to curb the spread of infections nationwide. However, the impact on our financial results was not significant as infections in Miyazaki were limited, and thanks to the utilization of video - and teleconference as before for our sales activities.

We have received a notification from Tokyo Stock Exchange on July 9, 2021, that Nihon Jyoho Create has met the listing maintenance standards for the Growth Market of the Tokyo Stock Exchange based on the initial assessment of compliance with the listing requirements for the new market segment. After a Board resolution based on this assessment, we will proceed with the application for the selection of new market segment.

2

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

Our results of operations for the first three-month period from July 1, 2021 to September 30, 2021 were as follows:

Net sales: 743 million yen, increase of 95 million yen (14.7%) over the same period last year

Operating profit: 176 million yen, an increase of 13 million yen (8.2%) over the same period last year

Ordinary profit: 214 million yen, an increase of 64 million yen (42.4%) over the same period last year

Profit: 149 million yen, an increase of 44 million yen (42.4%) over the same period last year

The performance by service category is as follows.

Solutions for Brokers

In the Solutions for Brokers segment, we have actively made proposals of our too ls and services such as promotion with own website, operation of web advertisement, and solutions relate d to real estate portal sites to address the needs and solve issues facing real estate companies that use our products. We have also taken actions as a freemium strategy (see note) to increase values of our product by adding links of services with rent gua rantee companies to our "Electronic Rent Application" function of inter -agent platform that we currently provide free of charge. This has led to significant upselling, making the sales of this category to 220 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

Both the sales to new and existing customers were strong. Earnings from 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 515 million yen.

• In addition to above sales of 735 million yen from the Solutions for Brokers and the Solutions for Property Management, sales of 8 million yen were recorded from other activities.

3