日本情報クリエイト（4054） – [Delayed]Business Plan and Growth Potential

Business Plan and Growth PotentialNihon Jyoho Create Co., Ltd. ｜ Tokyo Stock Exchange Mothers Market: 4054December 22, 2021Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 1Mission ＆ VisionMissionDedicated to the happiness of everyone we serve!VisionUse technology to create innovative platforms for the real estate sectorCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 22Making real estate transactions an even greater source of happinessOur goalReal estate transactions produce happiness and appreciation by fulfilling customers’ dreams in the form of a property that precisely matches their requirements. This is our belief. Real estate companies are dedicated to achieving the simple goal of transforming customers’ dreams into reality and making them happy. We play a role in this happiness by using the latest technologies to create extremely convenient platforms for real estate companies.Yonetsu Kenichi, Representative Director, PresidentCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 3Contents1．Business Activities2．Financial Results and Growth of Our Services3．Market Environment4．Three-year Growth Strategy 5．Business Risk and Policy for Risk ManagementP5P19P25P30P42Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 4Business ActivitiesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 5Business ActivitiesCompany ProfileCompany nameNihon Jyoho Create Co., Ltd.Offices EstablishmentAugust 1994Location13-18 Kanmachi, Miyakonojo-shi, Miyazaki prefectureNumber of employees266 including 242 full-time employees (As of June 30, 2021)Business activitiesDevelopment and sales of application systems andservices for real estate industryExecutive officersYonetsu Kenichi, Representative Director, PresidentMaruta Hideaki, Director, Head of Development DeptArai Atsushi, Director, Head of Sales DeptSenokuchi Naohiro, Director, Head of Administration DeptUmino Daisuke, Director, Chair of Audit & Supervisory CommitteeMiura Hiroshi, External Director, Audit & Supervisory Committee memberYamamoto Osamu, External Director, Audit & Supervisory Committee memberListed marketTokyo Stock Exchange (Mothers) code: 4054KumamotoSapporo/Asahikawa/Sendai/Koriyama/Takasaki/NiigataShinjuku/Tachikawa/Saitama/Funabashi/Chiba/Yokohama/MachidaOsaka/Kyoto/Kobe/Kanazawa/Nagoya/Hamamatsu/ShizuokaHiroshima/Okayama/Matsuyama/Fukuoka/Kitakyusyu/Nagasaki/Kumamoto/Miyazaki (Headquarters)28 locations in Japan (As of September 30, 2021)AsahikawaSapporoNiigataKanazawaSendaiKoriyamaTakasakiSaitamaFunabashiHiroshimaOkayamaShizuokaKyotoKitakyusyuFukuokaNagasakiKobeMatsuyamaOsakaTachikawaChibaNagoyaMachidaYokohamaHamamatsuShinjukuMiyakonojo (Headquarters)Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 6Business ActivitiesA Record of Continuous Growth(Millions of yen)Consecutive sales growth for 27 years since the founding in 1994FY6/21cancelation rate: 0.5%*Average of monthly cancelation rates6,0005,0004,0003,0002,0001,00001.0%0.0%Steady-revenue growth as well as large IT investments in many industriesThree-year planned growth123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30FY6/21(fiscal periods)0.6%0.6%0.6%0.6%0.5%0.3%0.4%0.4%0.5%0.3%0.5%0.4%0.3%1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年6月期FY6/192020年6月期FY6/202021年6月期FY6/21The cancelation rate is the decrease in monthly fees caused by contract cancelations divided by fees in that month from existing contracts.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 7Business ActivitiesOne-stop Solutions for the DX of the Real Estate IndustryThe Fudosan BB property listing platform for real estate brokers, which is offered at no charge, is used to attract customers and provide an entry point for cross-selling and upselling activities.Nihon Jyoho Create businessesProperty management solutionsBrokerage solutionsProperty purchasing/managementContract with the customerStart to end of occupancyOwner/tenant managementReal estate businessescontractBrokerage Sharingof i nfoPurchaseAdvertisingfollow-upMarketing/ApplicationlExpanationsContractmanagementTenant in/out extensionContract paymentsInvoices/l atepaymentsCollectionof ownersPayments to managementimantenance Builidng/communicationsTenant communicationsOwner Real estate website production toolOnline service system Broker services with no face-to-face contactA comprehensive rental property management systemChintai KakumeiB-to-B Property Listing PlatformOwner communication serviceTenant communication serviceKurasapo ConnectApp for ownersKurasapo ConnectApp for tenantsReal estate website production toolProperty Data LinksFees received Fees received Fees received Online apartment applicatione-apartment applicationSystem for online contractse-contractDX of real estate businessesBusiness Analysis OptionProductsFully integrated solutions covering all real estate business processesNo feesSales strategyNo feesNo feesFees received Fees received Both brokerage or property management services can be switched to services with feesFees received for servicesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 8Fees received for servicesBusiness ActivitiesPlatform StrategyPlatformFull coverage of real estate business processesStepping up the pace of growth of a platform with substantial added value by forging alliances with a variety of companies associated with the real estate industryB-to-B Property Listing PlatformCompanies operating real estate portal sitesKurasapoReal estate information portal closely linked to local marketsReal estate companesiand more…Business 経営分析analysisProperty purchasing/sharingReal estate website production toolReal estate website production toolProperty Data LinksBusiness analysisAdvertising/attracting customersTenant communication serviceKurasapo Connect App for tenants Tenant/owner managementApplications and contractsLifestyle info services companiesOwner communication serviceKurasapo ConnectApp for ownersProperty and rent managementA comprehensive rental property management systemChintai KakumeiOnline service system Brokerage services with no face-to-face contactWeb previewLifeline agentsOnline apartment applicatione-apartment applicationOnline explanation of key itemsIT explanationsSystem for online contractse-contractMaintenance companiesAccounting software companiesFinancial institutionsInsurance companiesRent guarantee companiesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 9Business ActivitiesWhy Customers Choose Our Services FirstSeamless data linkage for efficiency of all real estate business processesB-to-B Property Listing PlatformA database for nationwide real estate informationUtilizing the information once it has been entered improves the efficiency of the entire operationEliminates “analog” work with phone calls, faxes and documentsTenant applicationsPreviews / tenant applicationsFollow-upMarketingNext pageReal estate companyNo feesFees receivedConsumersownersBusiness New info can be posted with no changes on a website or portal siteWebsite production toolPosting on real estate portal siteProperty Data LinksAllows follow-up on responsesCRM(Customer management)Contactless web previewsOnline service system Brokerage services with no face-to-face contactOnline completion of application proceduree-apartment application Prospective tenantsPotential customersPotential customersData about individualsResponsesWeb previewEfficiently attracts customersEfficiently manages customersRent guarantee companiesLifeline agentsLinkage of tenant dataCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 10Business ActivitiesWhy Customers Choose Our Services FirstData encompasses every step from purchasing properties to managing new and departing tenantsContractsTenant management (Rent management, etc.)Tenant communicationsOwner communicationsInternet e-contractsNewCentralized management extending from new and departing tenants to data about rentOnline communications with tenantsOnline provision of info to ownersSystem for online contractse-contractIT explanationsA comprehensive rental property management systemChintai KakumeiTenant communication serviceKurasapo Connect App for tenants Owner communication serviceKurasapo ConnectApp for ownersTenantConsumersAble to sign the contract at homeEfficient management of rent paymentsLinks with payments received at financial institutionsInsurance companiesFinancial institutionsTenantowner No need for phone callsManagement analysisNo need to send paper documentsUse digitalized info to identify issuesBusiness analysis toolownersBusiness Efficient preparation of materials needed for management analysisCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 11Business ActivitiesProducts and Services Internet platform for B-to-B sharing of property listingsFudosan BB B-to-B Property Listing PlatformA free internet service for the real-time sharing among real estate agents of their listingsFudosan BB allows real estate agents to view listings any time of the day, resulting in the more efficient sharing of information among property management companies and real estate brokers Property owners/managersB-to-B Property Listing PlatformAgents serving customersUsing Fudosan BB allows simultaneously distributing the latest information about available properties to many real estate agents who serve people looking for an apartment. Property flyerApplicationformExplana-tionsListingsKey infoBrokerage feeAd feeOthersCompany AEasily checks listings with a PCCompany BCompany CViews listings of other companiesReceives notices of renewal informationMore efficient information sharing and document production!Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 12Business ActivitiesProducts and Services Real estate website production toolWebManagerPro SeriesWebManagerPro was created specifically to produce real estate websites designed to attract more customers. Many templates are available for the simple production of original websites.•••••Compatible with mobile phonesResponsive web design templateEntry form optimization (EFO)Long tail optimization (LTO)SSL for secure internet communications■ Drag-and-drop website productionThis format allows even real estate companies with no website production experience to create a website with ease. Using the management screen allows performing tasks that would normally require a website production company. ■ Allows simultaneous PC/Smartphone editingPC and smartphone editing at the same time cuts the time needed for website production. Websites easy to view on a smartphone are also useful for searches.■ Linkage with NJC’s real estate system makes businesses tasks more efficientLinkage with Chintai Kakumei and Fudosan BB allows incorporating registered properties in the website. Efficiency is higher due to elimination of the need for manual input of data. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. B-to-B Property Listing PlatformChintai Kakumei 1013Business ActivitiesProducts and Services Real estate portal site registrationsProperty Data LinksReal estate portal site registrationsProperty Data LinksNew property information entries are automatically incorporated in the portal site■ Property Data LinksThis service can post property information registered on Fudosan BB, Chintai Kakumei and Baibai Kakumei simultaneously on many types of portal sites. Using this service saves time and prevents input errors because there is no need to use the input forms of each site. With Property Data LinksLinkage with Fudosan BB and Chintai Kakumei allows posting real estate information on many portal sites simultaneously with no need for the re-entry of data. Time for inputting data is reduced.B-to-B Property Listing Platform Real estate portal site registrationsProperty Data LinksData linkageData linkageConventional methodNormally, data about a property must be input individually because every portal site has its own input page. Portal site APortal site BPortal site CPortal site APortal site BPortal site CInput individually Portal site APortal site BPortal site CCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 14Business ActivitiesProducts and Services A comprehensive rental property management systemChintai Kakumei 10Centralizes every property management task from tenant changes to rentRental Management System AwardsImprovement of supportCustomer satisfactionReliabilitySurveyBased on perception of rental management systems of individuals nationwide between the ages of 20 and 59. Date: May 2018Method: Internet questionnaireChintai KakumeiCentralized management of rent invoicing, collection and payment processing significantly reduces data processing errors and lost data. Higher volume of brokerage business!Chintai KakumeiMore efficient property management tasks!■ Efficient rent management raises the value of companiesChintai Kakumei facilitates the centralized management of information about properties, owners and tenants. The scale of this information makes it possible to use Chintai Kakumei for many other tasks. Examples include property management and the management of leases, rent payments, tenant inquiries, repairs and maintenance, and other items. Eliminating wasted time and reducing mistakes helps companies become a more trusted partner for owners and customers. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 15Business ActivitiesProducts and Services Tenant communication serviceKurasapo ConnectApp for tenantsOwner communication serviceKurasapo ConnectApp for ownersCommunication ServiceKurasapo ConnectA smartphone app with a link to Chintai Kakumei for simple communications with tenants and ownersThis tenant app allows tenants to use a smartphone to submit questions about their residences, receive notices, apply for lease renewals or terminations, confirm date and amount of rent payment, and perform other activities.This app is used by a property management company to send owners payment remittance notices, income and expense reports, and reports following visits to buildings. Communications also include notices sent to owners and questions and other messages from owners to property management companies.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 16Business ActivitiesProducts and Services Online service system Contactless brokerage services Use contactless brokerage services to attract customersFully integrated: Web preview – e-apartment application – IT explanationsWeb sales activities Web previewe-apartment application IT explanationse-contract An online customer interaction service for fully contactless activities for sales, previews, tenant applications and explanation of key items.Online communication tools for previews and explanation of key items are also products developed by Nihon Jyoho Create. This ensures easy and efficient communications with customers with no need to switch to a different tool.Copyright ©2020, Nihon Jyoho Create Co.,Ltd. All rights reserved. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 1717Business ActivitiesProducts and Services Online service system Electronic apartment application/e-contractCombining e-applications with the new e-contract service further raises the speed of the digitalization of real estate transactionsElectronic apartment applicatione-contractReal estate businessNew• Started on Nov. 19, 2021• An original NJC serviceFees received* Currently, Articles 35 and 37 of the Home Building Business Law require paper documents for new contracts. The personal seal requirement for new transactions is expected to end by May 2022 with enactment of laws involving reforms for the use of digital technologies.TenantProperty management companyNo feesReal estate brokerOnline interactionElectronic apartment applications are a function provided to property management companies using Fudosan BB (no fee) in order to perform every step of the application process online. No need for paper applications, faxes and phone calls. These e-applications reduce tasks and are ideal for telework. Copyright ©2020, Nihon Jyoho Create Co.,Ltd. All rights reserved. Customers pay a fee for the online signing of agreements for the renewal of a real estate lease or a rented parking space. This online service improves the ease and safety of some procedures for rental agreements that previously required face-to-face meetings and sending documents by postal mail. 18Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. Financial Results and Growth of Our ServicesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 19Financial Results and Growth of Our ServicesFinancial HighlightsIn FY6/21, both sales and earnings increased to a record high(Millions of yen)Net salesBrokerage solutionsProperty management solutions Gross profitGross profit marginOperating profitOperating marginEBITDAOrdinary profitProfitFY6/202,3757891,5631,74473.4%52422.1%567565367FY6/212,6178501,7431,89572.4%58522.4%633642414YoY change+10.2%+7.8%+11.6%+8.7%+0.4pt+11.6%+0.3pt-+13.5%+12.9%Brokerage solutions is sales of brokerage support services provided to real estate brokers.Property management solutions is sales of administration support services provided to rental management companies.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 20Financial Results and Growth of Our ServicesHigh Levels of Profitability and Financial SoundnessA high profit margin due to products and services with substantial added value ■ Gross profit margin売上高総利益率の推移(Millions of yen)売上高Net sales売上総利益Gross profit売上総利益率Gross profit margin71.1%1,921 71.9%2,148 1,365 1,545 73.4%2,375 72.4%2,617 1,744 1,895 74.0%72.0%70.0%68.0%66.0%64.0%62.0%60.0%3,5003,0002,5002,0001,5001,00050002018.6FY6/182019.6FY6/192020.6FY6/202021.6FY6/21Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 21Financial Results and Growth of Our ServicesHigh Levels of Profitability and Financial SoundnessFinancial soundness backed by consistent growth of steady revenue ■ Growth of initial sales and steady revenueFY6/21 net sales ¥2,617 million2,617 2,375 65% are steady revenueイニシャルInitial salesストックSteady revenue35.0%1,700 1,451 65.0%(Millions of yen)イニシャル ストックInitial salesSteady revenue2,148 1,282 1,921 1,692 1,162 1,017 3,0002,5002,0001,5001,0005000675 759 866 924 917 FY6/172017.6FY6/182018.6FY6/192019.6FY6/202020.6FY6/212021.6•Initial salesThe cost of starting to use software and the software license, which are all recorded at the time of the sale.• Steady revenueLicense fees and service utilization fees that are recognized as sales during the corresponding maintenance and utilization periods. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 22Steady operating profit growth as investments in people and R&D continueFY6/20FY6/21YoY changeFinancial Results and Growth of Our ServicesOperating Profit(Millions of yen)Net salesCost of salesPersonnel expensesAdvertising expensesOther SG&A expensesOperating profit5242,375631691344932,617+242721787+90+96-6+0+6128493585Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 23Financial Results and Growth of Our ServicesCompanies Using NJC Products and Services◼ Companies using the free B-to-B Property◼ Companies using services provided for a feeListing Platform (Fudosan BB)Focusing on cross-selling and upselling current customerswhile continuing to increase the number of companiesusing the free serviceグラフ タイトル(No. of companies)(No. of companies)Steady growth in the number of companies paying afee for services as companies switch from free services to services with fees新規導入数New users新規導入数New users16,64415,0251,619 2,499 6,390 6,102 2885,825 2773405,485 3335,152 15,025 5,00035312,526 10,662 6,102 5,825 5,485 5,152 479918,00016,00014,00012,00010,0008,0006,0004,0002,000012,5261,864 10,6624,482 5,496 6,180 6,180684 2017.6FY6/177,0006,5006,0005,5004,5004,0003,5002018.6FY6/182019.6FY6/192020.6FY6/202021.6FY6/212017.6FY6/172018.6FY6/182019.6FY6/192020.6FY6/202021.6FY6/21Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 24Market EnvironmentCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 25Market EnvironmentHomebuilders in JapanConsistently about 120,000 homebuilders with 6,000 new businesses every yearグラフ タイトル法人Companies個人Individuals合計126,421125,771123,872 122,615122,046 122,631 123,249123,333 123,712124,377125,585127,21515,17114,73821,82721,15720,14319,36618,68818,16117,62016,89816,23615,618140,000120,000100,00080,00060,00040,00020,00008,0006,0004,0002,000104,594104,614103,729103,249103,358104,470105,629106,435107,476108,759110,414112,477200920102011201220132014201520162017201820192020Source: Statistics for Homebuilders and Residential Land and Building Transaction Brokers, end of fiscal 2020, Real Estate Transaction Improvement Organization6,382 5,125 7,131 5,232 5,878 5,309 5,421 5,580 4,836 4,962 5,917 5,833 6,003 6,037 5,624 5,298 020112012201320142015201620172018Source: 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 TourismCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 128,000127,000126,000125,000124,000123,000122,000121,000120,000119,000開業New homebuildersNew 廃業homebuilders out of business26Market EnvironmentJapan’s Growing Real Estate Technology IndustryRapid growth of Japan’s real estate technology industry is expected, which will increase the need for the products of Nihon Jyoho Createグラフ タイトル(Billions of yen)消費者向けB to C領域B-to-C domain事業者向けB to B領域B-to-B domainJapanese Real Estate Technology Market Survey (2021)1,40014,00012,0001,20010,0001,0008,0008006,0006004,0004002,00020000512.8100.2562.5119.8611.0125.7412.6442.8485.2428.686.7341.92017年度FY20172018年度FY20182019年度FY20192020年度FY2020Source: 2021 Japanese Real Estate Technology Market Survey by Yano Research Institute, August 17, 2021Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 271,246.1244.51,001.7FY20252025年度(Forecast)（予測）Market EnvironmentA Favorable Business Climate TooAcceleration of the DX due to new laws involving digital reformsEstablishment of a Digital Agency and faster move to fully electronic real estate transactionsDigital technology reform laws passed in May 2021 allow an electronic format (e-contract) for important items and contracts for real estate transactions. Enactment is planned for no later than May 2022.May 2021Passage of digital reform lawsParking lot contracts and renewal contracts can still be signed electronically at this time.Enactment expected by May 2022Completely electronic transactionsIn Japan’s enormous real estate sector, which has a GDP of about ¥65 trillion,the real estate industry’s labor productivity index is still lower than the average for all industries. The establishment of a Digital Agency and a legal framework for fully electronic real estate transactions are expected to increase the pace of the DX in all markets.Law for Proper Management of Rental HousingStart of registration system for rental management companies (Enacted on June 15, 2021)Companies managing at least 200 rental housing units must be registered with the Minister of Land, Infrastructure, Transport and Tourism.Japan is more closely overseeing rental property management to ensure the proper operation of this business. The even greater need to conduct operations properly is expected to increase demand for support services for property management tasks at rental management companies.In Japan, about 6,000 homebuilding companies start operating every yearThe constantly changing residential construction sector is creating many potential new customers every year.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. The establishment of companies by young people who grew up with digital technologies is expected to generate an even higher level of demand for the use of IT systems.28Market EnvironmentCompetitive SuperiorityMarket share growth backed by superior products, sales and support capabilities, accomplishments, and experience12345Products encompass all stepsA large sales networkSupportMarket shareExpertise acquired over 27 yearsA broad lineup of products for solving many issues for customers, resulting in one-stop solutions extending from brokerage to property management tasks.Consulting closely linked to regional needs and characteristics for real estate companies nationwide; earns customers’ trust by providing proposals as well as valuable support.A nationwide IT system advisory network to assist customers after starting to use Nihon Jyoho Create’s service; support includes remote assistance by Nihon Jyoho Create’s own call center and other forms of support.The rental management system market has high barriers to new entrants because of the complexity of rental management tasks. Nihon Jyoho Create has a large share of this market. Furthermore, up-to-date property data is used for new analysis services.As the speed of the DX increases, regional rules are emerging in the real estate sector and each company uses its own method for digitalization. With 27 years of experience, Nihon Jyoho Create has the knowledge needed to implement the DX in the best possible manner for the real estate industry.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 29Three-year Growth StrategyCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 30Three-year Growth StrategyTargets of the Three-year Growth StrategyUse investments for building platforms for the following goals:(1) Advance to overall optimization of customers’ business processes rather than for only some processes.(2) Use upselling and cross-selling backed by a larger customer base and stronger lineup of products and services for the growth of sales and earnings as well as corporate value.(3) Step up to a First Section (Prime Market) Tokyo Stock Exchange listing by becoming a company that plays vital roles in Japan’s real estate industry.Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 31Three-year Growth StrategyStructure of the Three-year Growth Strategy2022 – 2024Before2025 -The platform building stageBuild a platform like no other by investing in three categoriesThe platformer stage CreationInnovationBecome more than a software companyThe DX of the real estate industryOptimization of individual business processes for customersGrowthProduct strategiesPeople strategiesCustomer strategiesStronger productsStronger sales teamUse upselling and cross-selling supported by even more competitive products and newly developed products for sales growth and higher profitability.More salespeople to aim for a larger market share. Establish a training program for quickly transforming people with no experience into productive salespeople.Marketing and the sales networkStronger marketing and more sales bases because increasing points of contact with customers is vital for differentiating Nihon Jyoho Create regarding the real estate DX. Vision： Dedicated to the happiness of everyone we serve!Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 32Three-year Growth Strategy Three-year Growth Strategy – The First Year -Faster growth to build platformsNet salesGross profitEBITDAOrdinary profitFY6/21 resultsFY6/22 planFY6/23 planFY6/24 plan¥2,610 million¥3,080 million¥3,900 million¥5,000 million¥580 million¥630 million¥640 million¥450 million¥580 million¥490 million¥850 million¥980 million¥920 million¥1,560 million¥1,700 million¥1,600 millionAdvance to overall optimization of customers’ business processesGrowth of sales and earnings as well as corporate value◼ Plan for increasing sales growthFY6/21→FY6/22+17.8%FY6/22→FY6/23+26.4%FY6/23→FY6/24+28.2%◼ Plan for operating margin growthAiming for a Prime Market listingFY6/2214.6%FY6/2321.8%FY6/2431.2%Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 33Three-year Growth StrategyAdditional Three-year Plan Information◼ Sales planMore sales from steady revenue due to hiring more people, launching new services and increasing brokerage solution sales(Millions of yen)(Thousands of yen)◼ Monthly recruiting revenue planUpselling and cross-selling supported by more marketing activities, sales offices and salespeopleInitial salesイニシャルSteady revenueストック5,000 3,550 3,900 2,650 3,080 2,050 2,617 1,700 6,0005,0004,0003,0002,0001,0000Property 管理ソリューションmanagementsolutionsBrokerage 仲介ソリューションsolutions338,000 248,000 163,322 188,000 114,002 150,889 68,986 81,121 174,678 133,998 400,000350,000300,000250,000200,000150,000100,0000917 1,030 1,250 1,450 50,00081,902 106,879 2021年6月期 2022年6月期 2023年6月期 2024年6月期FY6/24FY6/23FY6/21FY6/222021年6月期 2022年6月期 2023年6月期 2024年6月期FY6/24FY6/23FY6/21FY6/22Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 34Three-year Growth StrategyAdditional Three-year Plan Information◼ Employees (plan for salespeople)Hiring many people, training programs to make new employees productive quickly, and a low attrition rate◼ New customers and upselling/cross-selling to current customersHigher sales to new and current customers due to the growth of the workforceNumber of employees450その他従業員数 営業人員数Other categoriesSalespeople(No. of companies)3,000New 新規顧客customers既存顧客（アップセル・クロスセル社数）Current customers (upselling, cross-selling)381158351138321118242581842032132234003503002502001501005002,550 1,600 1,950 1,350 1,200 886 598 288850 5007509502,5002,0001,5001,00050002021年6月期 2022年6月期 2023年6月期 2024年6月期FY6/23FY6/24FY6/21FY6/222021年6月期 2022年6月期 2023年6月期 2024年6月期FY6/21FY6/23FY6/24FY6/22Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 35Three-year Growth StrategyAdditional Three-year Plan Information◼ Companies using the free B-to-B Property Listing Platform (Fudosan BB)Forecast growth due to more salespeople and an effective marketing strategy◼ Companies using services provided for a feeForecast growth due to a marketing strategy aimed at shifting users from free services to services with a fee(No. of companies)新規導入数New users(No. of companies)10,000New users新規導入数27,644 4,000 23,644 4,000 8,590 9507,640 7506,890 5006,390 28823,644 19,644 3,0006,102 6,390 6,890 7,640 30,00025,00020,00015,00010,0005,000019,644 3,000 16,644 1,619 15,025 16,644 9,0008,0007,0006,0005,0004,0002,0001,00002021年6月期FY6/212022年6月期FY6/222023年6月期FY6/232024年6月期FY6/242021年6月期FY6/212022年6月期FY6/222023年6月期FY6/232024年6月期FY6/24Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 36Explanation of StrategiesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 37Components of the Three-year Growth StrategyProduct StrategyComplete linkage from B-to-B property listings to contractsDevelop products to build a platformUpgraded services by using big data・Stronger management support service・ Property appraisals using artificial intelligence・ Assistance for inputting property dataStrengthen services by using the enormous volume of property data at Nihon Jyoho CreateProperty purchasing/sharingNew servicesBusiness analysisCRM (Customer management)Advertising/attracting customersAn integrated real 一気通貫システムestate platformApplications and contractsTenant/owner managementE-contractProperty and rent managementDeveloped a new version of Chintai KakumeiDeveloped a next-generation service that supports rental management service tasksThe new version incorporates improvements that reflect requests from customers following the release of the current Ver. 10 due to amendments to laws and other events.Upgrade of the Fudosan BB property listing platform・Stronger CRM functions・Services for buying and selling propertiesCRM functions for managing customers and listings of available properties. The update is expected to speed up the process of expanding relationships with customers. E-contractsDeveloped entirely by Nihon Jyoho CreateIncreases the UI and UX in the real estate industryThe enactment of digital reform laws in Japan made it possible for Nihon Jyoho Create to develop an e-contract service that is easy for real estate companies to use.New service domainCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 38Components of the Three-year Growth StrategyCustomer StrategyUse an expanded product lineup for cross-selling to current customers and adding new customers for sales growthA larger lineup of productsNo feesFees received for current servicesFudosan BBB-to-B Property Listing PlatformReal estate website production toolReal estate portal site registrationsProperty Data LinksA comprehensive rental property management systemChintai KakumeiOwner communication serviceKurasapo ConnectApp for ownersTenant communication serviceKurasapo ConnectApp for tenantsCurrent major products and servicesNew products and servicesCRME-contractBusiness analysisProperty appraisals using artificial intelligenceNew customersCurrent customers upselling/cross-sellingSales growthCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 39Components of the Three-year Growth StrategyCustomer StrategyMore sales offices and salespeople for strategic investmentsExpansion of consulting closely linked to specific areasMore sales officesMore salespeople1166(July 31, 2021)(June 30, 2022)29118(June 30, 2022)Stronger recruiting and training frameworksEstablished a department solely for these activitiesCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 40Components of the Three-year Growth StrategyPeople StrategyProgress with the real estate industry DX by using consulting-linked sales closely connected to regional needs and characteristicsConsulting is vital for progress with the DXSupport based on a dialogue with customers for solving the issues of every companyConsulting・Customer explains issues・Proposals for solutionsSales consultantCustomerIssues at customersResponses to new and amended lawsIncrease profitability and growthThe need for higher productivityActivities for attracting more customersBusiness and management analysis◼ Marketing to attract more customers◼ Consulting for closing sales contracts*Use online and face-to-face consulting to increase customer satisfaction27 consecutive years of sales growth, outstanding customer satisfaction and a low cancelation rate among current usersConsultingIdentify issues by using webinars, etc.Ad strategy using web ads and marketing automationCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. SaeslcustomersMore 41Business Risk and Policy for Risk ManagementCopyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 42Risk FactorsSignificant risk factors from among business and other risk factors in the Securities ReportRisk categoryDescriptionLevel of riskCountermeasuresLaws and regulationsThere may be new laws and regulations for information services due to the rapid pace of changes in this industry. New laws and regulations may affect the financial position and results of operations of NJC.Possibility: MediumImpact on NJC: HighWe believe there are no legal restrictions at this time on our business operations. Although there are risks of revisions to laws and regulations, new laws like Japan’s proposed digital reform laws are a positive development for our businesses. We will respond quickly to changes in the regulatory environment while constantly monitoring the latest information. Defects and other problems with products and servicesSignificant expenses may be incurred if a defect or other problem with a product or service is discovered after it is launched. Furthermore, this type of incident could damage the reputation of NJC’s products and services. These events could affect the financial position and results of operations of NJC. Possibility: LowImpact on NJC: MediumWe use rigorous software tests and other measures when developing products and services to identify and resolve issues in order to prevent defects and other problems. Recruiting and retaining employeesThere may be difficulties in conducting business operations and achieving growth if NJC is unable to hire people as required or if a significant number of employees leave. Furthermore, there may be an increase in expenses for recruiting, retaining and training the skilled people needed for business operations. These issues could affect the financial position and results of operations of NJC. Possibility: LowImpact on NJC: MediumAs stated in our three-year plan, recruiting and training skilled people will be essential for our growth. We will continue to place priority on recruiting and training activities, mainly for engineers and sales consultants, and further upgrade these activities. We have established a new department solely for training programs as one step to lower the employee attrition rate. Information securityNJC receives personal information and other highly confidential information from customers in conjunction with business activities. There is a risk of leaks, losses, unauthorized use and other problems involving this information due to unauthorized external access, an IT system defect or malfunction, an error or intentional act by an employee handling this information, or some other cause. Depending on the actions needed following this type of incident, there could be a loss of public trust in NJC as well as the payment of damages. Any of these events could affect the financial position and results of operations of NJC. Possibility: LowImpact on NJC: HighWe have received ISMS (ISO27001) certification concerning the proper management of highly confidential information and have many activities to ensure that employees are aware of internal rules about information management based on our Information Security Management Rules, Basic Rules for Personal Information Protection and other rules. There are also activities involving our employees to further upgrade the information management framework.Information about other risk factors is in the “Business and Other Risk Factors” section of the Securities Report. These risk factors are potential problems that NJC has identified at the time this presentation was prepared and do not cover every problem that could occur. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 43Disclaimer and Disclosure Policy (Disclaimer)••••••This presentation contains forecasts and other forward-looking statements based on information that is currently available. Nihon Jyoho Create Co., Ltd. (NJC) makes no guarantees of assurance for the outcome of these forecasts as they include inherent uncertainties and risks. Actual performance, therefore, may differ from these forecasts due to changes in the business environment and other factors.Factors that could have an impact on actual performance may include changes in the economies of Japan and other countries, industries associated with NJC’s business operations or other items. Information in this presentation that is not related to NJC is based on information available to the public and other sources. NJC has not verified in any way the accuracy or suitability of this information and makes no guarantees about the accuracy or suitability of this information.Information in this presentation about companies other than NJC is based on sources available to the public.This presentation does not constitute a solicitation for the purchase or sale of securities of any type, even if there are statements to this effect. Furthermore, this presentation cannot be used as the basis for a contract or obligation of any type. Investors should rely on their judgment after reading without fail the prospectus (including amendments) on the new share issue and application for share sale prepared by NJC.(Disclosure policy for information concerning business plan and growth potential)Information about progress concerning business plans and related items will be provided when earnings are announced. NJC plans to disclose financial and business plan progress information with every quarterly earnings announcement. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 44Dedicated to the happiness of everyone we serve!Nihon Jyoho Create Co., Ltd. Copyright ©2021, Nihon Jyoho Create Co.,Ltd. All rights reserved. 45