Nihon Jyoho Create : Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2021

Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2021

		[Japanese GAAP]
		August 16, 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 Annual General Meeting of Shareholders:	September 28, 2021
Scheduled date of payment of dividend:	September 29, 2021
Scheduled date of filing of Annual Securities Report:	September 29, 2021
Preparation of supplementary materials for financial results:	Yes
Holding of financial results meeting:	Yes

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

1. Financial Results for the Fiscal Year Ended June 30, 2021 (July 1, 2020 to June 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	%
Fiscal year ended Jun. 30, 2021	2,617		10.2		585	11.6		642		13.5		414	12.9
Fiscal year ended Jun. 30, 2020	2,375		10.6		524	69.3		565		49.2		367	57.2
	Net income per			Diluted net	Return on equity		Ordinary profit to	Operating profit to
	share		income per share			total assets	net sales
	Yen				Yen		%				%		%
Fiscal year ended Jun. 30, 2021	30.43			29.81		19.5				18.9		22.4
Fiscal year ended Jun. 30, 2020	31.23			-		33.6				25.9		22.1
Reference: Equity in earnings of affiliates (millions of yen) Fiscal year ended Jun. 30, 2021: -
						Fiscal year ended Jun. 30, 2020: -

Notes: 1. Nihon Jyoho Create conducted a 10-for-1 common stock split on May 31, 2020 and 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 these stock splits had taken place at the beginning of the fiscal year ended June 30, 2020.

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 fiscal year ended June 30, 2021 is calculated by using the average stock price from the date of listing to the end of the fiscal year as the average stock price during the period.

2. Financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of Jun. 30, 2021	4,323	2,983	69.0	209.69
As of Jun. 30, 2020	2,483	1,278	51.5	108.62

Reference: Shareholders' equity (millions of yen) As of Jun. 30, 2021: 2,983 As of Jun. 30, 2020: 1,278

(3) Cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents at
	operating activities	investing activities	financing activities	end of the period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal year ended Jun. 30, 2021	555	(237)	1,264	2,817
Fiscal year ended Jun. 30, 2020	488	70	(8)	1,234

2. Dividends

		Dividend per share				Total	Dividend	Dividends on
	1Q-end	2Q-end	3Q-end	Year-end	Total		dividends	payout ratio		equity
	Yen	Yen	Yen		Yen	Yen	Millions of yen	%	%
Fiscal year ended Jun. 30, 2020	-	0.00	-		0.00	0.00	-	-	-
Fiscal year ended Jun. 30, 2021	-	0.00	-		5.00	5.00	71	16.4	3.1
Fiscal year ending Jun. 30, 2022	-	0.00	-		5.00	5.00			21.8
(forecast)

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

* Notes

1. Changes in accounting policies and accounting estimates, and restatements
2. 1. Changes in accounting policies due to revisions in accounting standards, others: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
3. Number of shares outstanding (common shares)
4. 1. Number of outstanding shares as of the end of the period (including treasury shares)

As of Jun. 30, 2021:

14,226,440 shares

As of Jun. 30, 2020:

11,767,440 shares

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

As of Jun. 30, 2021:	30 shares	As of Jun. 30, 2020:	- shares
3) Average number of outstanding shares during the period
Fiscal year ended Jun. 30, 2021:	13,636,230 shares	Fiscal year ended Jun. 30, 2020:	11,767,440 shares

Note: Nihon Jyoho Create conducted a 10-for-1 common stock split on May 31, 2020 and 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 these stock splits had taken place at the beginning of the fiscal year ended June 30, 2020.

• The current financial report is not subject to audit 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 FY6/21
Contents of Attachments
1. Overview of Results of Operations	2
(1)	Results of Operations	2
(2)	Financial Position	3
(3)	Cash Flows	3
(4)	Outlook	4
2. Basic Approach to the Selection of Accounting Standards	4
3. Non-consolidated Financial Statements and Notes	5
(1)	Non-consolidated Balance Sheet	5
(2)	Non-consolidated Statement of Income	7
(3)	Non-consolidated Statement of Changes in Equity	9
(4)	Non-consolidated Statement of Cash Flows	11
(5)	Notes to Non-consolidated Financial Statements	12
		Going Concern Assumption	12
		Segment Information	12
		Equity in Earnings of Affiliates	12
		Per-share Information	12
		Subsequent Events	12

1

Nihon Jyoho Create Co., Ltd. (4054) Financial Results for FY6/21

1. Overview of Results of Operations

(1) Results of Operations

The economic outlook of Japan during this fiscal year remains uncertain with the COVID-19 pandemic still prevailing and the states of emergency in place as of the date of this report, although there were expectations for a recovery as the result of preventive measures and progress of vaccination as well as effects of various po litical actions.

Looking at the market of support to real estate businesses, there is increasing demand for IT-related capital investment such as teleworking under pandemic environment and digital transformation (DX) of real estate transactions. Nihon Jyoho Create provides IT solutions like SaaS-type cloud services to exactly respond to such market needs. Demands for digitalization of contract documents and elimination of seal impressions are also increasing for real estate transactions, as the Digital Reform Bill passed in May 2021 includes articles related to electronic conclusion of contract.

Under the circumstances, we have worked on the promotion of DX of the real estate industry as well as on the creation of platform as described in our medium-term vision.

As for the DX of real estate industry, we have conducted activities towards the new clients to discover potential issues and eventually provide support with paid solutions, while increasing the number of contacts using "Fudosan BB", the inter-agent platform for listings of rental properties that we provide free of charge, and "Electronic Rent Application" that enables rent applicant to complete the application process on the website. As for support to the existing clients, we have continued to enhance after-salefollow-ups and operational support by call center, seeking adding value to the products with the release of new Business Analysis Option for management of real estate agent, as well as alliance with several rent guarantee companies. We will continue to drive DX of the industry by providing support to more real -estate businesses and acquire higher market share.

As for creation of platform as our medium-term vision, we have started collaboration with Nealle Inc. that operates Park Direct, the market leader of online rental parking. We will accelerate creation of platform to best fit real estate industry together with our partners.

Under the COVID-19 pandemic, the number of our cloud-based projects has been steadily growing to reflect the rising need for telework. Our corporate functions have not been much affected with only a few cases of teleworking, as the situation in Miyazaki has been relatively calm. The impact to our sales operations such as meeting with clients and delivery of products was not significant, thanks to the utilization of video- and teleconference as before.

Our results of operations for this fiscal year from July 1st, 2020 to June 30th, 2021 were as follows:

Net sales: 2,617 million yen, an increase of 241 million yen (10.2%) year on year

Operating profit: 585 million yen, an increase of 61 million yen (11.6%) year on year

Ordinary profit: 642 million yen, an increase of 76 million yen (13.5%) year on year

Profit: 414 million yen, an increase of 47 million yen (12.9%) year on year

The performance by service category is as follows.

Solutions for Brokers

We have actively made proposals of our tools and services such as promotion with own website, operation of web advertisement, and solutions related to real estate portal sites. We have also taken actions as a freemium strategy (see note) to increase values of our product by adding links of services with rent guarantee companies or lifeline agents 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 850 million yen, or 7.8% over last year.

2

Nihon Jyoho Create Co., Ltd. (4054) Financial Results for FY6/21

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 1,743 million yen, or 11.6% over last year.

• In addition to above sales of 1,924 million yen from the Solutions for Brokers and the Solutions for Property Management, sales of 17 million yen was recorded from other activities.

(2) Financial Position

1) Assets

Total assets at the end of the current fiscal year increased by 1,839 million yen from the end of the previous fiscal year to 4,323 million yen. The balance of current assets increased by 1,601 million yen from the end of the previous fiscal year to 3,413 million yen.

This is primarily attributable to an increase of 1,582 million yen in cash and deposits due to issuance of shares and sales growth resulting from proceeds from issuance of shares and IT introduction subsidies.

2) Liabilities

Total liabilities at the end of the current fiscal year increased by 134 million yen from the end of the previous fiscal year to 1,340 million yen. The balance of current liabilities increased by 135 million yen from the end of the previous fiscal year to 1,334 million yen.

This is primarily attributable to an increase of 154 million yen in advances received due to the growth in sales.

3) Net assets

Net assets at the end of the current fiscal year increased by 1,705 million yen from the end of the previous fiscal year to 2,983 million yen.

This is primarily attributable to increases of 1,290 million yen in share capital due to the issuance of shares and 414 million yen in retained earnings brought forward due to the booking of profit .

(3) Cash Flows

Cash and cash equivalents (hereinafter, "cash") at the end of the current fiscal year were 2,817 million yen, an increase of 1,582 million yen, or 128.2%, compared with the end of the previous fiscal year. The cash flow components and the main reasons for changes are as described below.

Cash flows from operating activities

Net cash provided by operating activities was 555 million yen.

Main factors include profit before income taxes of 642 million yen, an increase of 154 million yen in advances received and income taxes paid of 223 million yen.

Cash flows from investing activities

Net cash used in investing activities was 237 million yen.

Main factors include purchase of intangible assets of 212 million yen.

Cash flows from financing activities

Net cash provided by financing activities was 1,264 million yen.

3