Robot Home : Consolidated Financial Results for the six Months Ended June 30,2022

Consolidated Financial Results

for the Six Months Ended June 30, 2022

[Japanese GAAP]

August 10, 2022

Company name: Robot Home, Inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 1435

URL: https://corp.robothome.jp/

Representative: Daisaku Furuki, Representative Director/CEO

Contact: Shinji Yasui, Executive Officer/CFO

Phone: [phone]

Scheduled date of filing quarterly securities report: August 12, 2022

Scheduled date of commencing dividend payments: September 5, 2022

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for securities analysts and institutional investors)

(Amounts of less than one million yen are truncated) 1. Consolidated Financial Results for the Six Months Ended June 30, 2022 (January 1, 2022 to June 30, 2022)

(1) Consolidated operating results				(% indicates changes from the previous corresponding period)
					Net sales				Operating profit		Ordinary profit		Profit attributable to
										owners of parent
	Six months ended				Million yen	%		Million yen	%		Million yen	%		Million yen	%
	June 30, 2022	2,392	-	225	(6.0)	259	(2.5)	251	6.1
	June 30, 2021		2,119	(47.4)		239	-		266	-		236	-
	(Note) Comprehensive				income: Six months ended June 30, 2022: ¥199 million [(24.1)%]
					Six months ended June 30, 2021: ¥262 million [-%]
					Basic earnings		Diluted earnings
					per share		per share
	Six months ended				Yen				Yen
	June 30, 2022	2.79			-
	June 30, 2021			2.60			-

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards since the beginning of the consolidated first quarter of this fiscal year. Therefore, for the net sales for the six months ended June 30, 2022, the change from the previous corresponding period is not shown.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June 30, 2022	10,423	7,554	72.0
As of December 31, 2021	9,905	7,527	75.7

(Reference) Equity: As of June 30, 2022: ¥7,504 million

As of December 31, 2021: ¥7,496 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

-

0.00

-

1.00

1.00

December 31, 2021

Fiscal year ending

-

1.00

December 31, 2022

Fiscal year ending

December 31, 2022

-

1.00

2.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)

(% indicates year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	7,000	-	500	66.7	450	26.7	400	7.0	4.44

(Note) 1. Revision to the financial results forecast announced most recently: No

2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the consolidated first quarter of this fiscal year. Therefore, the figure for the net sales in the financial results forecast above reflects these accounting standards, and the year-on-year change is not shown.

* Notes:

(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in

changes in scope of consolidation): No
New: -	Exclusion: -

1. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of shares outstanding (common stock)
5. 1. Total number of shares outstanding at the end of the period (including treasury shares):

June 30, 2022: 91,127,000 shares

December 31, 2021: 91,127,000 shares

1. Total number of treasury shares at the end of the period: June 30, 2022: 1,242,800 shares
   December 31, 2021: 761,600 shares
2. Average number of shares during the period:

Six months ended June 30, 2022: 90,016,783 shares

Six months ended June 30, 2021: 90,969,956 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes
  The earnings forecasts and other forward-looking statements herein are based on information currently available and certain assumptions judged to be reasonable. The Company makes no warranty as to the achievability of these forecasts. Actual performance, etc. may differ significantly from these forecasts due to a wide range of factors.

Table of Contents of the Attachments
1. Qualitative Information of Quarterly Financial Results ...................................................................................	2
(1)	Explanation of operating results...................................................................................................................	2
(2)	Explanation of financial position .................................................................................................................	3
(3)	Explanation of consolidated financial results forecast and other forward-looking information ..................	3
2. Consolidated Financial Statements and Primary Notes....................................................................................	4
(1)	Consolidated balance sheets.........................................................................................................................	4
(2)	Consolidated statements of income and comprehensive income .................................................................	6
(3)	Notes to quarterly consolidated financial statements ...................................................................................	8
	(Notes on going concern assumption) .....................................................................................................	8
	(Notes on significant changes in shareholders' equity) ...........................................................................	8
	(Changes in accounting policies).............................................................................................................	8
	(Segment information, etc.) .....................................................................................................................	9
	(Matters related to revenue recognition) ...............................................................................................	11
	(Significant subsequent events).............................................................................................................	12

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1. Qualitative Information of Quarterly Financial Results

(1) Explanation of operating results

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter referred to as the "Revenue Recognition Accounting Standard"), etc. since the beginning of the three months ended March 31, 2022. Therefore, the operating results for the six months ended June 30, 2022 are explained without the amount of increase/decrease in net sales from the previous rate (%) of net sales.

The Japanese economy during the six months ended June 30, 2022 showed signs of recovery as restrictions on social activities have been gradually mitigated thanks to various policies and widespread vaccination amid the continuing impact of COVID-19 pandemic. Meanwhile, in the world economy, uncertainty about the future persists as evidenced by the higher geopolitical risks and the rising prices of resources due to the situation in Ukraine as well as concern about the rapid depreciation of the yen and other factors.

Under these circumstances, the Group has proceeded to secure stable profit through the transformation to a stock business (subscription) that it has been focusing on since the previous fiscal year, while making strategic IT investments to further enhance the system for DX (digital transformation). Meanwhile, the Group has promoted its environment-friendly initiatives such as reduction of CO2 emissions to create a sustainable society. As an example of such initiatives, "CRASTINE +e," an investment apartment with superior energy-efficiency performance developed by the Group, received the highest five-star rating in the Building-HousingEnergy-efficiency Labeling System (BELS) under which a third-party organization evaluates the energy-efficiency performance of buildings in accordance with evaluation standards provided by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

As a result, the performance for the six months ended June 30, 2022 was ¥2,392 million in net sales, ¥225 million in operating profit (down 6.0% year on year), ¥259 million in ordinary profit (down 2.5% year on year) and ¥251 million in profit attributable to owners of parent (up 6.1% year on year).

The performance of each segment is as follows.

Since the three months ended March 31, 2022, the Company has changed the name of the reportable segment "real estate consulting business" to "income club business." The only change was that of the reportable segment name and has no impact on segment information.

1. AI/IoT business
   In the AI/IoT business, the Company offers its DX (digital transformation) consulting service, drawing on its experience with the ongoing

development and operation of its IoT platform for rental housing, "Residence kit," which aims for the automation of real estate management. Together with making inroads into the DX domain through its accumulated in-house real estate and technological expertise, it caters not only to the real estate industry but to other industries as well.

As a result, net sales for the six months ended June 30, 2022 were ¥185 million and operating profit was ¥114 million (up 111.4% year on year).

1. PM platform business
   In the PM platform business, the Company strived to secure stable recurring income by conducting streamlined PM operations through

the introduction of the rental management RPA system, "Residence kit for PM," which uses core technologies such as AI and IoT. Further, the Company focused its efforts on the sustainable expansion of its profit foundations through such initiatives as increasing brand

recognition through the launch of an advertisement for the IoT platform for rental housing, "Residence kit," to increase the number of contract management properties resulting from proposals to introduce IoT into rental housing properties, the provision of insurance services such as rental guarantees, and the expansion of its business domains into the maintenance domain.

As a result, net sales for the six months ended June 30, 2022 were ¥1,352 million and operating profit was ¥655 million (up 3.2% year on year).

1. income club business
   In the income club business, although occupancy rates of smart hotels remained low under the impact of the continued downturn in

demand for accommodation due to COVID-19, the Company started providing services that allow its users to view, examine and purchase real estate for investment on "income club," its new real estate investment marketplace, and focused on measures to stabilize its profit

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foundations.

As a result, net sales for the six months ended June 30, 2022 were ¥857 million and operating profit was ¥32 million (operating loss of ¥33 million for the same period of the previous fiscal year).

(2) Explanation of financial position

(Assets)

Total assets at the end of the six months ended June 30, 2022 increased by ¥518 million from the end of the previous fiscal year to ¥10,423 million. This is mainly attributable to increases in real estate for sale of ¥522 million and real estate for sale in process of ¥123 million and a decrease in cash and deposits of ¥412 million.

(Liabilities)

Total liabilities at the end of the six months ended June 30, 2022 increased by ¥491 million from the end of the previous fiscal year to ¥2,869 million. This is mainly attributable to increases in short-term borrowings of ¥336 million and accounts payable - trade of ¥102 million.

(Net assets)

Total net assets at the end of the six months ended June 30, 2022 increased by ¥27 million from the end of the previous fiscal year to ¥7,554 million. This is mainly attributable to the recording of profit attributable to owners of parent of ¥251 million, the repurchase of Company shares worth ¥99 million and a decrease in retained earnings resulting from the dividend of surplus worth ¥90 million.

(3) Explanation of consolidated financial results forecast and other forward-looking information

No revisions have been made to the consolidated financial results forecast announced on February 14, 2022.

The Company will promptly disclose information if the consolidated financial results forecast needs revising due to the spread of COVID- 19 infections or other reasons.

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