Nihon Jyoho Create : Results of Operations for the First Half of the Fiscal Year Ending June 30, 2021

Nihon Jyoho Create Co., Ltd. (Stock code: 4054)

Results of Operations for the First Half of the Fiscal Year Ending June 30, 2021

February 19, 2021

Contents

• 1 Our Mission

  3

• 2 First Half Results of Operations and Highlights

  - First Half Results of Operations

  - First Half Highlights (Business alliances, etc.)

• 3 Activities for More Growth

  6

  16

• 4 Appendix

21

Become a platformer in the real estate domain

Our goal is to build platforms that transform dreams into reality and make many people happy.

Real 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.

Kenichi Yo代ne表ts取u,締 P役res社id長ent and Representative Director

Building integrated platforms covering many categories of the real estate domain

Real estate portal sites

Real estate companies

Property purchasing/sharing

Advertising/Attracting customers

Lifeline agents

Real estate owners

Rent guarantee companies

Accounting software companies

Insurance companies

Tenant

Lifestyle info services

Property and rent management

Maintenance companiesFinancial institutions

Business analysis

Applications and contracts

Tenant/owner management

Company Profile

Company name

Nihon Jyoho Create Co., Ltd.

Establishment

August 1994

OfficesMiyazaki Headquarters/Sapporo/Sendai/Tokyo/Saitama /Nagoya/Hokuriku

Osaka/Hiroshima/Shikoku/Fukuoka (11 locations in Japan)

Location

13-18 Kanmachi, Miyakonojo-shi, Miyazaki prefectureNumber of employees

239 (As of June 30, 2020)Business activitiesBusiness support system and services for real estate companies

Executive officersKenichi Yonetsu, President and Representative Director

Hideaki Maruta, Director and General Manager, Development Department

Atsushi Arai, Director and General Manager, Sales Department

Naohiro Senokuchi, Director and General Manager, Administration Department

Daisuke Unno, Director and Member of the Audit & Supervisory Committee

Hiroshi Miura, Outside Director and Member of the Audit & Supervisory Committee

Osamu Yamamoto, Outside Director and Member of the Audit & Supervisory Committee

Listed market

Tokyo Stock Exchange (Mothers)Stock code: 4054

Kenichi Yonetsu,

President and Representative Director

First Half Results of Operations and Highlights

Sales Aiming for 30 Consecutive Years of Growth

Low cancelation rate and increasing number

of new customers

4,000

3,500

3,000

2,500

The cancelation rate is the decrease in monthly fees caused by contract cancelations divided by fees in that month from existing contracts.

2,000

1,500

1,000

500

0

1

2

3

(Millions of yen)

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

28

20

FY6/20

21

22

23

24

25

26

27

29

30

FY6/21

First-half Results

Achieved big increase in operating profit (+24.2% YoY)

Record Quarterly Sales in 2Q of FY6/21

Big increase in steady-revenue from one year earlier

900

(Millions of yen)

800 700 600 500 400 300 200

100

0

2020年6月期

2Q FY6/20 (3 months)

2021年6月期

2Q FY6/21 (3 months)

Sales activities produce growth

• • Success at targeting DX demand

• • Increased the number of salespeople

• • Enlarged the lineup of products

• • Upselling current customers Successful cross-selling activities

Components of Change in Operating Profit

• • Growth of monthly recurring revenue

• • Hiring more people Operating profit: ¥339 million

Operating margin: 26.0%

(Millions of yen)

Growth of MRR

Recruiting

Increasing Number of Customers

Progress with using the freemium model to attract prospective customers

More no-fee customers

Fudosan BB

B-to-B Property Listing Platform

■ Number of companies using Fudosan BB (B-to-B internet listing service)

グラフ タイトル

Increase value provided to users

Aug. 2020 release

Electronic apartment application service

(An online service linked with Fudosan BB)

■ Growth in the number of companies using the electronic apartment

application service グラフ タイトル

At the end of 2Q

At the end of 2Q

18,000

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000

0

201F7Y年66/1月7期

201F8Y年6/61月8期

201F9Y年6/61月9期

202F0Y年6/62月0期

202F1Y年6/62月1 期

800

700 600 500 400 300 200 100

0

１1Q

２2Q

Sales and Earnings vs. the Fiscal Year Plan

Performance far ahead of the plan due to successful upselling activities

Planned FY6/21 sales ¥2,566 millionPlanned FY6/21 ordinary profit ¥626 million

(Millions of yen)

3,000

Initial salesSteady revenue

2,500

Plan 2,566

2,375

2,000

Progress

1,302

(50.8%)

1,451

1,678

1,500

1,000

500

0

924

FY6/20

888

FY6/21

1H FY6/21

FY6/20

30%

25%

20%FY6/21

1H FY6/21

Four activities to increase the value

Property purchasing/sharing

Advertising/Attracting customers

Business analysis

Applications and contracts

1

Tenant/owner managementProperty and rent management

Started a Chintai Smocca link

1

More real estate portal site links

Started an electronic apartment application service

2

Service linked to Fudosan BB

2

3

E-contract *Under development

3

New services reflecting amended laws

4

Released owner app

4

Addition of the Chintai Kakumei option

1	More real estate portal site links

Started a Chintai Smocca link

This link, initiated in December 2020, allows receiving data directly from the Chintai Smoccawebsite of ZIGExN Co., Ltd., which is used to search for residential rental properties.

2	Service linked to Fudosan BB

Started an electronic apartment application service

To increase the value of Fudosan BB, agreements for this service, released in August 2020, were quickly established with several companies and the number of business locations using this service is increasing rapidly.

No need to visit an office or use postal mail, a fax or a telephone!

Broker

Tenant

Everything is online

Property manager

Data links with rent guarantee companies

Digital documentation replaces fax/telephone communications for the guarantee approval process by real estate brokers and rent guarantee companies.

20 companies are using this service (Started Aug.

2020)

Data links with lifeline agents

Digital instead of fax transmission of tenant information and information received by tenants is directly passed on to agents. (Started Feb. 1, 2021)

Agent fees are shared with real estate companies

3	New services reflecting amended laws

E-contract *Under development

Significant interest is expected due to this proposed amendment

Nihon Jyoho Create is developing an e-contract service in order to provide the bestpossible interface for real estate companies. This will include seamless links with related Nihon Jyoho Create services.

For real estate rentals and transactions, explanation of important items and contracts can be performed online (including public tests under way). However, procedures cannot be completed using electromagnetic media for explanations of important items (Article 35 documents) and contracts (Article 37 documents). (Public tests are under way for rentals and are to begin in March 2021 for transactions.)

The Japanese government has agreed on the goal of allowing electromagnetic media for the completion of explanations of important items for real estate transactions. All proposed amendments are planned to be submitted during the ordinary 2021 Diet session.

4	Addition of the Chintai Kakumei option

Owner app

This app, launched in January 2021, reduces expenses for analog tasks by facilitating online owner reports. A chart function ensures efficient and reliable communications.

Activities for More Growth

Growth Backed by Our Innovative Platform

More fee-paying customers and growth of steady revenue

Use the DX to improve the productivity of the real estate industry

Improve productivity by supplying IT services for customers' business processes

Centralized management of all broker tasks

Centralized management of property management tasks

Property purchasing/management

Contract with the customerStart to end of occupancyOwner/tenant management

Brokerage contract

Sharing of info

Purchase

Advertising

Marketing/ follow-up

Application

Explanations

Contract

Tenant in/out management

Contract extension

Invoices/ payments

Collection of late payments

Payments to owners

Building/ maintenance management

Tenant communications

Owner communications

Contribute to Improving Real Estate Industry Productivity

In Japan's real estate industry, IT investments are 10% and labor productivity is 40% of the levels in the U.S.

IT investments by industry

(U.S.=1, 2000-2006 average)

Labor productivity by industry

(U.S.=1, 2000-2006 average)

(2000-2006 Average) IT Investments in Japan (U.S.=1)

Chemicals Metals Data/com-munications Electricity/ gas/water

Finance/ insurance

Elec. machinery

Manufac-turing Others

Retail/ wholesale

Transport products

Restaurants/ hotels

MachineryConstruction

Source: Ministry of Health, Labour and Welfare using data from the Groningen Growth and Development Center

Cargo transport/ warehouses

Note: IT investments are based on manhours. Width shows the volume of labor used (working hours x number of workers).

(2000-2006 Average) Labor Productivity in Japan (U.S.=1)

Machinery

Chemicals

Transport products

Finance/ insuranceMetalsData/com-munications

Construc-tion

Elec. machinery

Electricity/ gas/water

Cargo transport/ warehouses

Retail/ wholesaleReal estate Manufac-turing Others

Restaurants/ hotels

Source: Ministry of Health, Labour and Welfare using data from the Groningen Growth and Development Center

Note: Labor productivity are based on manhours. Width shows the volume of labor used (working hours x number of workers).

Source: 2015 Analysis of Labor Economics (September 2015), Ministry of Health, Labour and Welfare

- Property management to contract -

Improving efficiency (1)

Switching from telephone and fax to the internet speeds up receipt of property info and sharing info with other companies

Fudosan BB

Services are free for purchases and at the entrance point for transactions, such as sharing info, confirming vacancies and other tasks.

Improving efficiency (2)

• • A specialized tool reduces time needed to produce and update websites

• • A dedicated service registers property info on all real estate portal sites

Improving efficiency (4)

• • Online real estate contracts replace paper documents and seals

• • Better efficiency because there is no need for sending paper documents

- Contract to final customer communications -

Improving efficiency (5)

• • Higher efficiency by using specialized services for procedures between the contract to occupancy, collection of rent and payments to the owner, and all other tasks until the tenant leaves

Fees received for services

Chintai Kakumei

Online communications with tenants eliminate the need for telephone and fax for contract extensions, maintenance/repair information and other activities

Improving efficiency (8)

Inspection Management OptionAccounting Link Option

inspections and preparation of documents

Improving efficiency (6)

More efficient periodic condominium

Improving efficiency (7)

Accounting software links for daily accounting data reduces the time needed for inputting accounting data

Tenant Communication Service

Improving efficiency (9)

Move to the internet monthly owner reports, postal mail procedures and other activities for communications with owners

Owner Communication Service

Appendix

Japan's Growing Real Estate Technology Industry

Rapid growth of Japan's real estate technology industry is expected, which will increase the need for the products of Nihon Jyoho Create

(Billions of yen)

Yano Research Institute, November 28, 2018

700

Real estate technology industry sales

¥626.7 bn

Homebuilders in Japan

The number of homebuilders has increased slightly, remaining generally steady at about 120,000

The number of companies is increasing and the number of operations by individuals is decreasing

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2014

2015

2016

2017

2018

Source: Statistics for Homebuilders and Residential Land and Building Transaction Brokers, end of fiscal 2018,

Real Estate Transaction Improvement Organization

Change in Number of Homebuilders in Japan

More than 5,000 homebuilders are starting operations every year

The number of homebuilders is steady at about 120,000 as new customers constantly replace previous ones

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

0

(1,000)

(2,000)

Source: Statistics for Homebuilders and Residential Land and Building Transaction

Net increase

New homebuilders

Homebuilders out of business

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 Tourism

Japanese Government Support for Digitalization

Many government actions for the digitalization of the real estate industry

Support for business owners to implement working style reforms

Measures to give people many choices for how to do their jobs, increase job opportunities, and create an environment where people are motivated and can achieve their full potential.

Chintai Kakumei is eligible for IT use subsidies and can contribute to improving efficiency (elimination of extended working hours).

1

2

Increase the use of cashless transactions

The Japanese government aims to raise the share of cashless purchases from 18.4% in 2015 to 40% in 2025.

The number of real estate e-transactions (payments of security deposits and rent) is increasing and Nihon Jyoho Create is using e-transaction services using alliances with payment processors to play a role in the growth of cashless payments.

3

Declaration of creating the world's most advanced IT nation

Create a digital society where people can live with confidence by using digital technologies and data utilization as well as enjoy fulfilling life styles.

Ministry of Land, Infrastructure, Transport and Tourism

Broker services with no face-to-face contact is a new real estate broker format proposed by Nihon Jyoho Create, using IT explanations and other measures that can make big contributions to improving efficiency.

Appendix - Activities for More Growth -

Create New Services That Use Big Data

Use Nihon Jyoho Create products to collect enormous amounts of real estate information Create services with added value that utilize big data

Use Nihon Jyoho Create products to collect real estate information

Create new services

• ◼ Property database

• ◼ Detection of fraudulent properties

• ◼ Property input assistance

• ◼ Rent information in nearby areas

• ◼ Earnings forecasts for new stores

• ◼ Identify significant events and market trends and use this information to create proposals for owners, and other services

Management Support Linked with Business Support Services

Plan to start a management support service for business operators

Management support

Management support services

Accounting, data utilization (under development), business matching, finance, and others

Business support

Use Management Support to Provide a Broader Range of Support Services Target current market trends for the growth of brokerage business support

C	and expand outward from business support services categories of support services rrent coverage (listings, brokerage, management, consumers)
Add capabilities to cover a broader range of customers' Management support services Accounting, use of data analysis (under development), other services business processes Business support services rrent coverage (listings, brokerage, management, consumers)

Vision for Medium to Long-term Growth

Use the increasing number of customers in current businesses for more growth driven by new businesses

Sales

3．Management support services 2．Data utilization services

1．Brokerage business support services/

Brokerage services with no face-to-face contact

Fudosan BB - An Internet Platform for B-to-B Sharing of Property Listings

A free internet service for the real-time sharing among real estate agents of their listings

Fudosan BB

B-to-B Property Listing PlatformFudosan 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/managers

Using Fudosan BB allows simultaneously distributing the latest information about available properties to many real estate agents who serve people looking for an apartment.

Fudosan BB

B-to-B Property Listing Platform

Agents serving customers

Application form

Company

A

Explanations

Easily checks listings with a PC

ListingsKey info

Company

B

Views listings of other companies

Company

C

More efficient information sharing and document production!

Receives notices of renewal

information

WebManagerPro Series

Real estate website production tool

WebManagerPro 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 phones

• • Responsive web design template

• • Entry form optimization (EFO)

• • Long tail optimization (LTO)

• • SSL for secure internet communications

• • Heat map function (optional)

Property listings registered on Fudosan BB are automatically Fudosan BB listed on real estate websites, greatly improving the efficiency of inputting information about vacancies.

Property Data Links

Real estate portal site registrations

Brokerage business support

B-to-B Property Fudosan BB Listing Platform

Administration support

Chintai Kakumei Baibai Kakumei

This 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.

Chintai Kakumei 10

Centralizes every administrative task from tenant changes to rent

Seamless data linkage for B-to-B property listing sharing and support for brokerage business and consumers for all services

Chintai Kakumei

Centralized management of rent invoicing, collection and payment processing significantly reduces data processing errors and lost data.

Survey

Based on perception of rental management systems of individuals nationwide between the ages of 20 and 59.

Date: May 2018

Method: Internet questionnaire

Kurasapo Connect

A smartphone app with a link to Chintai Kakumei for simple communications with tenants about late rent payments, lease renewals and other matters

Constant System Updates that Incorporate the Latest Technologies

Using artificial intelligence to make business processes more efficient

On-site Support for a Quick Launch of an IT System

Support from local service providers prevents delays in starting a system and quick measures to meet new needs, after confirming the company's business processes. This support also leads to the addition of new functions and other services.

Software utilization rate for business processes

Proposal

New needCompletionStartInstallation

A third party provides follow-up services for business process improvements in order to solve system operation problems quickly.

Time

A Fully Integrated Infrastructure Ensures Services of a Consistently High Quality

A fully integrated internal infrastructure for planning, development, sales and support services

Integrated operations create a

powerful cycle of accumulating knowledge and using that know-how to further upgrade products and services

Disclaimer

Precautions Regarding This Presentation

Precautions Concerning Forward-looking Statements

• • 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. NJC has no obligation to update or revise the forward-looking statements in this presentation even if there is new information, a future event or any other reason for an update or revision.

• • 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.

Dedicated to the happiness of everyone we serve!