Nojima : Summary of Consolidated Financial Results for the Three-month Period Ended June 30, 2020

Summary of Consolidated Financial Results for the Three-month Period Ended June 30, 2020 (Japanese accounting standards)

														Released: July 31, 2020
Name of listed firm:	Nojima Corporation					Listed on the Tokyo Stock Exchange
Code No.:	7419								URL		http://www.nojima.co.jp
Representative:	Hiroshi Nojima, President & Representative Executive Officer						Tel.: [phone]
Contact:	Satoshi Hisaka, Executive Officer/General Manager, Finance and Accounting Division
Scheduled date of quarterly report filing:	August 14, 2020
Scheduled start date of dividend payments:			-
Supplemental materials on quarterly financial results:	No
Briefing session for quarterly financial results for analysts: No
										(Amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for the three-month period ended June 30, 2020 (April 1, 2020 - June 30, 2020)
(1) Consolidated results of operations							(Percentages indicate year-on-year	changes.)
														Net income attributable
		Net sales			Operating income	Ordinary income	EBITDA			to shareholders of the
														parent company
		Million yen		%		Million yen	%	Million yen	%	Million yen		%		Million yen		%
Three-month period ended	106,330		-18.0		6,022	64.6	6,655	61.6	10,339		25.3		4,413		49.0
June 30, 2020
Three-month period ended	129,688		11.0		3,658	16.3	4,118	15.0	8,254		25.2		2,962		4.7
June 30, 2019

Note: Comprehensive income: Three-month period ended June 30, 2020: 9,724 million yen (558.1%)

Three-month period ended June 30, 2019: 1,477 million yen (-44.9%)

• For detailed information, including definitions and methods used to calculate indicators, see p. 2, "1. Qualitative Information on Quarterly Consolidated Financial Performance: (1) Explanation of operating results."

	Net income per share	Diluted net income per share
	Yen	Yen
Three-month period ended June 30, 2020	88.09	86.73
Three-month period ended June 30, 2019	59.16	58.43

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of June 30, 2020	306,308	98,202	31.4	1,927.74
As of March 31, 2020	286,247	90,268	30.8	1,759.32

Reference: Equity: As of June 30, 2020: 96,063 million yen	As of March 31, 2020: 88,246 million yen
2. Dividends
		Dividends per share
	End of 1Q	End of 2Q	End of 3Q	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
FY ended March 2020	-	20.00	-	20.00	40.00
FY ending March 2021	-
FY ending March 2021 (planned)		20.00	-	20.00	40.00

Note: Revisions to the most recently announced dividend forecast: No

End of 2Q FY2020: Ordinary dividend 18.00 yen, 60th anniversary dividend 2.00 yen

3. Forecasts of consolidated financial results for the fiscal year ending March 2021 (April 1, 2020 - March 31, 2021)

Percentages indicate changes from the previous year for full-year forecasts and changes from the same quarter of the previous fiscal year for quarterly forecasts.)

	Net sales		Operating income	Ordinary income	EBITDA		Net income attributable	Net income per
			to shareholders of the
			share
											parent company
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Million yen	%	Yen
2Q (cumulative)	244,000		-9.5	14,000	19.3	38,000	191.5	22,000		6.8	33,000	256.7	662.22
Full-year	507,000		-3.2	27,000	19.6	51,000	110.6	44,000		10.5	41,000	157.7	822.76

Note: Revisions to the most recently announced consolidated earnings forecast: Yes

• Notes
• 1. Significant changes in subsidiaries during this period

(changes in designated subsidiaries resulting in changes in the scope of consolidation):	No
Added: ___ company(ies) (name(s): ____________)	Removed: ___ company(ies)	(name(s): ____________)

1. Application of special accounting methods in the preparation of the quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

i.	Changes in accounting policies due to revisions in accounting standards and other regulations:	No
ii.	Changes in accounting policies for reasons other than i.:				No
iii.	Changes in accounting estimates:					No
iv.	Restatement of prior period financial statements:				No
(4) Number of shares issued and outstanding (common stock)
i.	Number of shares issued and outstanding at	As of	51,289,616	shares	As of		51,289,616	shares
	the end of the period (including treasury stock)
	June 30, 2020			March 31, 2020
ii.	Number of shares of treasury stock at the end	As of	1,457,527	shares	As of		1,129,909	shares
	of the period
	June 30, 2020			March 31, 2020
iii.	Average number of shares during the period	Three-month period	50,105,841	shares	Three-month period	50,079,046	shares
		ended June 30, 2020			ended June 30, 2019

Note: The number of shares of treasury stock above includes shares held in trust accounts (500,400 shares as of June 30, 2020 and 14,000 shares as of March 31, 2020) for the employee stock ownership plan (ESOP). Shares of the Company's own stock held in ESOP trust accounts are included in treasury stock subtracted from the calculation of the average number of shares during the period (84,064 shares for the three-month period ended June 30, 2020 and 306,867 shares for the three-month period ended June 30, 2019).

• Quarterly financial statements are not subject to audits by certified public accountants or auditing firms
• Explanation concerning the appropriate use of forecasts of business performance and other notes
  Note on forward-looking statements:
  Forecasts of business performance and other forward-looking statements in this release are based on information currently available and certain assumptions the Company deems reasonable at the time of preparation. They do not constitute a guarantee of future results. Actual results may differ materially from those of any forward-looking statements for various reasons.

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

• Contents of attached documents

1. Qualitative Information on Quarterly Consolidated Financial Performance.........................................................................	2
(1)	Explanation of operating results......................................................................................................................................	2
(2)	Explanation of financial position ....................................................................................................................................	4
(3)	Information on forward-looking statements forecasts of consolidated financial results .................................................	4
2. Quarterly Consolidated Financial Statements.......................................................................................................................	5
(1)	Consolidated balance sheet .............................................................................................................................................	5
(2)	Consolidated income statement and consolidated statement of comprehensive income .................................................	7
Consolidated income statement
(For the three-month period) .............................................................................................................................................	7
Consolidated statement of comprehensive income
(For the three-month period) .............................................................................................................................................	8
(3)	Notes on consolidated financial statements.....................................................................................................................	9
(Notes on going concern assumption) ...............................................................................................................................	9
(Significant changes in shareholders' equity)....................................................................................................................	9
(Segment information, etc.) ..............................................................................................................................................	9
(Important subsequent events)...........................................................................................................................................	10

1

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

1. Qualitative Information on Quarterly Consolidated Financial Performance

1. Explanation of operating results

During the three-month period ended June 30, 2020, Japan's economy was affected by the global spread of the new coronavirus infection. Economic activity and personal consumption were stagnant, and the outlook for the economy is expected to remain uncertain.

In the home electronics market, sales of digital cameras and other products remained sluggish due to the governmental request to refrain from going out as a countermeasure against the new coronavirus infection. However, with an increase in teleworking, sales of related equipment and home appliances, such as air conditioners, were solid.

In the market for mobile phones and other mobile devices, the number of mobile phones of carrier brands sold decreased significantly because of a suppression of market competition and a longer purchase replacement cycle caused by the amendment to the Telecommunications Business Act that took effect on October 1, 2019, and the spread of the new coronavirus infection.

In the Internet business service market, where there is fierce competition for customers, the growth rate of subscribership to fixed and mobile high-speed broadband services remained stable due to the spread of teleworking and smart devices. Moreover, the Internet advertising market continued to expand, supported by Search Advertising and programmatic advertising, including video advertising.

In overseas markets, the economies of Singapore, Malaysia, and Indonesia are in an extremely severe state, with governmental lockdown measures restricting long-term social activities.

Under these circumstances, the Nojima Group focused on being the leader in the digital field and achieving the industry's highest customer satisfaction. To achieve these goals, we sought to establish sales floors where shoppers can easily find what they want, and provide customer services reflecting the perspectives of customers, while working to improve consulting-based sales and enhancing customer services to meet their needs.

As a result, sales of mobile phones and other mobile devices of the Group were affected by that consumers increasingly felt prices being overvalued when purchasing devices due to the Amendments to Telecommunications Business Act, sluggish replacement demand, and the closure of some stores due to the expansion of the new coronavirus infection. However, the Group as a whole worked to improve the efficiency of business processes and reviewed expenses. As a result, for the three-month period ended June 30, 2020, we recorded net sales of 106,330 million yen (82.0% of the figure for the three-month period ended June 30, 2019), operating income of 6,022 million yen (164.6% of the figure for the three-month period ended June 30, 2019), ordinary income of 6,655 million yen (161.6% of the figure for the three- month period ended June 30, 2019), and net income attributable to shareholders of the parent company of 4,413 million yen (149.0% of the figure for the three-month period ended June 30, 2019).

EBITDA(*), which the Group considers to be an important indicator of business performance, stood at 10,339 million yen (125.3% of the figure for the three-month period ended June 30, 2019).

(*) EBITDA = ordinary income + interest expenses + interest on bonds + depreciation + amortization of goodwill

In the future, despite the lifting of the emergency declaration, the number of new cases of coronavirus will continue to increase. Under these circumstances, our company will continue to thoroughly implement epidemic prevention measures at all stores, which include sales floors that place the highest priority on the safety and security of customers, while strengthening consulting sales to ensure continued customer satisfaction.

Business performance by segment is outlined below. (Operation of digital home electronics retail stores)

In response to the government's emergency declaration to prevent the spread of the new coronavirus infection, one- third of all stores were closed temporarily and operating hours of all stores were shortened; however, sales of high-end home appliances such as TVs and refrigerators, as well as PCs and related equipment, performed well due to an increase in teleworking.

As a result, net sales in this segment totaled 50,893 million yen (97.4% of the figure for the three-month period ended June 30, 2019), segment income was 4,668 million yen (188.2% of the figure for the three-month period ended June 30, 2019).

(Operation of mobile carrier stores)

With the revision of the Telecommunications Business Act, and the spread of the new coronavirus infection, the number of mobile phones declined significantly due to the suspended operation of some stores and shorter operating hours. However, collaborating with telecommunications carriers, we endeavored to transform into a high-quality career shop by enhancing recruitment, education, and training, with the aim of developing human resources with a view to the future.

As a result, net sales in this segment totaled 35,578 million yen (69.8% of the figure for the three-month period ended June 30, 2019), segment income was 1,178 million yen (137.1% of the figure for the three-month period ended June 30, 2019).

2

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(Internet business)

Under fiercely competitive market conditions in the Internet service provider section, we concentrated on measures for effectively attracting new customers, including direct sales on websites and proactive sales activities at our group stores of @nifty Hikari and Docomo Hikari, a wholesale service of FLET'S Hikari provided by NTT East and NTT West.

As a result, net sales in this segment totaled 11,606 million yen (95.7% of the figure for the three-month period ended June 30, 2019), segment income was 1,036 million yen (150.1% of the figure for the three-month period ended June 30, 2019).

(Overseas business)

Under a severe environment with long-term restrictions on economic activity to prevent the spread of the new coronavirus infection in individual countries, we are focusing on recruiting and educating human resources in order to introduce Nojima-style consulting sales, which aim to increase the number of our company's customers who derive satisfaction from enriching their lives with good products and services. In Singapore, where sales were restricted at all stores, we focused on strengthening online sales.

As a result, net sales in this segment totaled 6,659 million yen (52.0% of the figure for the three-month period ended June 30, 2019), segment loss was 406 million yen (-% of the figure for the three-month period ended June 30, 2019).

(Stores in operation)

With seven new store openings and one store closure, including scrap-and-build, the number of digital home electronics retail stores stood at 187, or 212 including dedicated communications device stores.

In the operation of mobile carrier stores, following acquisition of one store and closure and sellout of six stores, including scrap-and-build, the number of stores, including both directly-operated carrier stores and franchises, stood at 614.

In the overseas business, with three store closures, the number of stores stood at 74.

In the light of these factors, the number of stores as of June 30, 2020 is as shown below. Stores in operation

	Classification	Directly operated	Franchises	Total
Operation of digital home electronics retail stores	212	stores		-	212	stores
	Digital home electronics retail stores	187	stores		-	187	stores
	Dedicated communications device stores	25	stores		-	25	stores
Operation of mobile carrier stores	411	stores	203	stores	614	stores
	Carrier stores	399	stores	197	stores	596	stores
	Others	12	stores	6	stores	18	stores
Overseas business	74	stores		-	74	stores
Total	697	stores	203	stores	900	stores

3

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(2) Explanation of financial position

Assets, liabilities and net assets

(Assets)

Total assets as of June 30, 2020 were 306,308 million yen, up 20,061 million yen from the end of the previous fiscal year.

This increase was due mainly to an increase of 17,094 million yen to 151,377 million yen in current assets and an increase of 2,966 million yen to 154,930 million yen in non-current assets.

The primary factors underlying the increase in current assets included an increase of 27,462 million yen in cash and deposits, despite a decrease of 11,363 million yen in accounts receivable-trade.

The main causes of the increase in non-current assets included an increase of 5,155 million yen in investment securities, despite decreases of 1,063 million yen and 719 million yen in contractual intangible assets and goodwill, respectively.

(Liabilities)

Total liabilities as of June 30, 2020 were 208,105 million yen, up 12,127 million yen from the end of the previous fiscal year.

This increase was due mainly to an increase of 10,916 million yen to 125,298 million yen in current liabilities and an increase of 1,210 million yen to 82,807 million yen in non-current liabilities.

The primary factors underlying the increase in current liabilities included an increase of 28,595 million yen in short-term loans payable, despite decreases of 10,000 million yen and 7,645 million yen in current portion of bonds and accounts payable-trade, respectively.

The main causes of the increase in non-current liabilities included an increase of 1,688 million yen in long-term loans payable, despite decreases of 261 million yen and 220 million yen in lease liabilities and deferred tax liabilities, respectively.

(Net assets)

Net assets as of June 30, 2020 totaled 98,202 million yen, up 7,934 million yen from the end of the previous fiscal year, due to factors including increases of 5,237 million yen and 3,410 million yen in valuation difference on available- for-sale securities and retained earnings, respectively.

These factors resulted in an equity ratio of 31.4%, up 0.5 points from the end of the previous fiscal year.

(3) Information on forward-looking statements forecasts of consolidated financial results

There is uncertainty over the consolidated financial forecasts for the fiscal year ending March 2021, because it is difficult to reasonably grasp the impacts on our Group of the expansion of the new coronavirus infection. In Japan, with the lifting of the government's emergency declaration, a movement toward resuming economic activities began to appear. All of our group stores resumed operations, and sales were strong-mainly for digital home appliances-during the first quarter under review.

In addition to the above, with the posting of negative goodwill associated with the application of the equity method by Suruga Bank Ltd. and the impacts of equity in net income (losses) in affiliates, we have calculated consolidated financial forecasts based on information available at this time.

For details, please refer to the "Forecasts of consolidated financial results for the fiscal year ending March 2021" announced today (July 31, 2020).

4

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

2. Quarterly Consolidated Financial Statements

1. Consolidated balance sheet

(Million yen)

			Previous fiscal year	First quarter of
			the current fiscal year
			(as of March 31, 2020)
			(as of June 30, 2020)
Assets
	Current assets
		Cash and deposits	17,181	44,644
		Accounts receivable-trade	69,978	58,614
		Merchandise and products	40,923	40,924
		Accounts receivable-other	6,250	6,737
		Other	2,984	3,346
		Allowance for doubtful accounts	-3,035	-2,890
		Total current assets	134,283	151,377
	Non-current assets
		Tangible non-current assets
		Buildings and structures (net)	15,808	15,844
		Tools, fixtures, and facilities (net)	2,243	2,286
		Lease assets (net)	8,010	7,766
		Land	8,488	8,488
		Other (net)	822	626
		Total tangible non-current assets	35,372	35,012
		Intangible assets
		Goodwill	24,758	24,039
		Software	1,563	1,473
		Trademark rights	937	820
		Contractual intangible assets	46,412	45,348
		Customer-related intangible assets	1,985	1,819
		Other	179	186
		Total intangible assets	75,836	73,687
		Investments and other assets
		Investment securities	17,415	22,570
		Deferred tax assets	9,159	8,709
		Lease and guarantee deposits	12,004	12,879
		Other	2,262	2,163
		Allowance for doubtful accounts	-86	-91
		Total investments and other assets	40,755	46,231
		Total non-current assets	151,964	154,930
	Total assets	286,247	306,308

5

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(Million yen)

			Previous fiscal year	First quarter of
			the current fiscal year
			(as of March 31, 2020)
			(as of June 30, 2020)
Liabilities
	Current liabilities
		Accounts payable-trade	50,244	42,599
		Short-term loans payable	7,226	35,822
		Current portion of long-term loans payable	7,031	7,953
		Current portion of bonds	10,010	10
		Accounts payable-other	7,433	6,656
		Accrued income taxes	4,921	1,492
		Accrued consumption tax	2,203	1,983
		Accrued expenses	3,414	3,689
		Advances received	3,067	6,326
		Unearned revenue	7,218	6,790
		Deposits received	2,283	3,585
		Reserve for points	5,075	4,607
		Reserve for bonuses	1,524	850
		Reserve for promotion of admissions	90	150
		Lease liabilities	2,140	2,205
		Other	495	571
		Total current liabilities	114,381	125,298
	Non-current liabilities
		Bonds	5,005	5,005
		Long-term loans payable	38,014	39,702
		Reserve for guarantees for merchandise sold	3,794	3,825
		Reserve for directors' retirement benefits	210	200
		Retirement benefit liabilities	8,423	8,616
		Deferred tax liabilities	13,506	13,286
		Lease liabilities	6,437	6,176
		Other	6,204	5,994
		Total non-current liabilities	81,596	82,807
	Total liabilities	195,978	208,105
Net assets
	Shareholders' equity
		Capital stock	6,330	6,330
		Capital surplus	6,046	6,002
		Retained earnings	83,795	87,205
		Treasury stock	-2,358	-3,217
		Total shareholders' equity	93,814	96,321
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	-4,938	298
		securities
		Currency conversion adjustments	-535	-468
		Accumulated adjustment to retirement	-94	-88
		benefits
		Total accumulated other comprehensive	-5,567	-258
		income
	Stock acquisition rights	2,008	2,124
	Non-controlling interests	12	14
	Total net assets	90,268	98,202
Total liabilities and net assets	286,247	306,308

6

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(2) Consolidated income statement and consolidated statement of comprehensive income

Consolidated income statement
(For the three-month period)
		(Million yen)
	Three-month period of	Three-month period of
	the previous fiscal year	the current fiscal year
	(April 1, 2019 - June 30, 2019)	(April 1, 2020 - June 30, 2020)
Net sales	129,688	106,330
Cost of sales	95,141	73,422
Gross profit on sales	34,546	32,907
Sales, general, and administrative expenses	30,888	26,884
Operating income	3,658	6,022
Non-operating income
Interest income	17	28
Dividend income	80	283
Purchase discounts	412	432
Other	175	247
Total non-operating income	686	991
Non-operating expenses
Interest expenses	152	169
Interest on bonds	27	17
Donations	4	82
Other	42	89
Total non-operating expenses	226	359
Ordinary income	4,118	6,655
Extraordinary income
Gain on negative goodwill	28	-
Gain on reversal of share acquisition rights	1	4
Gain on sales of non-current assets	140	13
Total extraordinary income	171	17
Extraordinary losses
Impairment loss	-	10
Total extraordinary losses	-	10
Net income before taxes and other adjustments	4,289	6,662
Income taxes-current	1,099	2,066
Income taxes-deferred	225	180
Total income taxes	1,325	2,246
Net income	2,964	4,415
Net income attributable to shareholders of	1	1
the non-controlling interests
Net income attributable to shareholders of	2,962	4,413
the parent company

7

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

Consolidated statement of comprehensive income (For the three-month period)

			(Million yen)
		Three-month period of	Three-month period of
		the previous fiscal year	the current fiscal year
		(April 1, 2019 - June 30, 2019)	(April 1, 2020 - June 30, 2020)
Net income	2,964	4,415
Other comprehensive income
	Valuation difference on available-for-sale	-1,091	5,237
	securities

Currency conversion adjustments

Adjustments for retirement benefit obligations

Total other comprehensive income

Comprehensive income

(Breakdown)

Comprehensive income attributable to shareholders of the parent company Comprehensive income attributable to non-controlling interests

-407	66
12	5
-1,486	5,309
1,477	9,724
1,476	9,723
1	1

8

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(3) Notes on consolidated financial statements

(Notes on going concern assumption) Not applicable

(Significant changes in shareholders' equity)

At the Board of Directors meeting held on May 12, 2020, the Company resolved to distribute dividends of 1,003 million yen from retained earnings.

As a result, retained earnings as of June 30, 2020 were 87,205 million yen.

(Segment information, etc.) [Segment information]

1. Three-monthperiod of the previous fiscal year (April 1, 2019 - June 30, 2019)

1. Net sales and income (loss) by reporting segment

									(Million yen)
		Reporting segment						Amount on
								Adjustments	quarterly
	Operation of
	Operation of				Other (*1)	Total	consolidated
	digital home	Internet	Overseas		(*2)
	mobile carrier	Subtotal			income statement
	electronics	stores	business	business					(*3)
	retail stores
Net sales
Net sales to external	51,991	50,910	12,066	12,804	127,772	1,916	129,688	-	129,688
customers
Internal sales or transfers	261	30	66	-	358	147	505	-505	-
between segments
Subtotal	52,252	50,940	12,132	12,804	128,130	2,063	130,193	-505	129,688
Segment income (loss)	2,480	859	690	-35	3,995	169	4,164	-46	4,118

Notes:

*1. The "Other" business segment consists of businesses not included in the reporting segments above. These include the shopping mall business, the sports business, the training business, the mega-solar business, the animal medical business, and the software development business.

*2. Adjustments to segment income (loss) consist of companywide costs not distributed among reporting segments.

*3. Segment income (loss) is adjusted with ordinary income on the quarterly consolidated income statement.

1. Three-monthperiod of the current fiscal year (April 1, 2020 - June 30, 2020)

1. Net sales and income (loss) by reporting segment

									(Million yen)
		Reporting segment						Amount on
								Adjustments	quarterly
	Operation of
	Operation of				Other (*1)	Total	consolidated
	digital home	Internet	Overseas		(*2)
	mobile carrier	Subtotal			income statement
	electronics	stores	business	business					(*3)
	retail stores
Net sales
Net sales to external	50,616	35,531	11,529	6,659	104,337	1,992	106,330	-	106,330
customers
Internal sales or transfers	277	47	76	-	401	131	532	-532	-
between segments
Subtotal	50,893	35,578	11,606	6,659	104,738	2,123	106,862	-532	106,330
Segment income (loss)	4,668	1,178	1,036	-406	6,477	230	6,708	-53	6,655

Notes:

*1. The "Other" business segment consists of businesses not included in the reporting segments above. These include the shopping mall business, the sports business, the training business, the mega-solar business, the animal medical business, and the software development business.

*2. Adjustments to segment income (loss) consist of companywide costs not distributed among reporting segments.

*3. Segment income (loss) is adjusted with ordinary income on the quarterly consolidated income statement.

2. Information on impairment losses on non-current assets or goodwill for each reportable segment (Significant impairment losses on non-current assets)

The carrying amount of a group of assets that have recorded a continued loss from business activities is reduced to the recoverable amount and the reduced amount is recorded as an impairment loss under extraordinary loss.

The amount recorded in the reporting segment was 8 million yen for the operation of digital home electronics retail stores, and 2 million yen for the operation of mobile carrier stores.

(Significant change in amount of goodwill) Not applicable

9

Nojima Corporation (7419) summary of consolidated financial results for the three-month period ended June 30, 2020 (Japanese accounting standards)

(Important subsequent events)

(Stock options)

At the Board of Directors meeting held on July 21, 2020, the Company resolved detailed terms for the issuance of

stock options following the approval of the proposal on the "Issuance of Stock Acquisition Rights as Stock Options Free of Charge" at the 58th Ordinary General Meeting of Shareholders and issued them on July 31, 2020.

1. Reason for issuing stock acquisition rights as stock options

The objective of adopting a program of stock options is to increase corporate value by strengthening moral and motivation in order to improve Group business performance. To achieve this objective, stock options are issued gratis.

2. Overview of issuance of stock acquisition rights

Date of issuing stock acquisition rights		July 31, 2020
		Director of the Company:		12
Classification and number of people to be granted		Executive Officer of the Company:		3
	Employees of the Company:		1,197
		Directors and employees of our subsidiaries:	600
Number of stock acquisition rights		15,850
Type, content, and number of shares subject to		Common stock
stock acquisition rights		Number of shares constituting one unit: 100
Amount to be paid for exercising stock acquisition rights	263,800 yen
(2,638 yen per share)
Period of exercise of stock acquisition rights		From July 22, 2023 to July 21, 2025
Price of issued shares and amount of capital incorporation	1. Issuance price:	2,638 yen
in the case of issuing shares upon exercise of	stock
2. Amount of capital incorporation: 1,319.00 yen
acquisition rights

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