Nihon Jyoho Create : Results of Operations for the Third Quarter of the Fiscal Year Ending June 30, 2022

Results of Operations for

the Third Quarter of the Fiscal Year

Ending June 30, 2022

A growth strategy for creating platforms

May 13, 2022

Nihon Jyoho Create Co., Ltd.

(Tokyo Stock Exchange Growth Market: 4054)

Copyright ©2022, Nihon Jyoho Create Co., Ltd. All rights reserved.

1

Contents

1.	Redefinition of the Growth Strategy
	-Addition of M&A as a Strategy for Growth)	P3
2.	3Q Financial Highlights	P7
3. M&A Activity and Outlook	P20
4. Activities in 4Q	P29

5. Appendix

P36

Three-year Growth Strategy

Explanations of Individual Strategies

(Product Strategy / People Strategy / Customer Strategy)

Business Climate / Competitive Superiority

Copyright ©2022, Nihon Jyoho Create Co., Ltd. All rights reserved.

2

1. Redefinition of the Growth Strategy

Past and Future Strategies for Growth

Aiming to use M&A to speed up growth

In prior years

Growth Strategies

・People Strategy ・Customer成長戦Strategy略

・Product Strategy

Issue

A business model where low-return成長assets戦略(cash) accumulate

From now on

New Growth Strategies

・People Strategy

・Customer Strategy

成長戦略

・Product Strategy

・M＆A Strategy

Countermeasures

Shift from low-return to high-return assets by using M&A,成長戦shareholder略 distributions and other measures

Copyright ©2022, Nihon Jyoho Create Co., Ltd. All rights reserved.

3

1. Redefinition of the Growth Strategy

A Growth Strategy for Building Platforms

Platforms of Nihon Jyoho Create

Sales	Platform Business

Maximize value

Use business growth and M&A to establish an ecosystem

Property

purchasing/sharing

M&A

Select acquisition candidates that can strengthen and enlarge human resources, geographic coverage and the product lineup

Organic Growth

Enlarge the customer base and make the product lineup more powerful

*PMI: Post merger integration is a process with the goal of maximizing the benefits of a merger or acquisition.

	Advertising/
Business	Attracting
analysis	customers

Tenant/owner	Applications and
management	contracts

Property and rent

management

Platform

Business

M&A

Organic Growth

2020	2030
Copyright ©2022, Nihon Jyoho Create Co., Ltd. All rights reserved.	4

1. Redefinition of the Growth Strategy

Examples of the Growth Strategy Using M&A

■ The first acquisition (announced April 25)

■ Outlook for sales and operating profit after the integration

*Specific numbers, goodwill amortization and period, and other information

RealNetPro Management Integration

have not yet been determined.

*The operating profit outlook does not include goodwill amortization.

6,000

2,500

(Millions of yen)

Three-year

RealNetPro Co., Ltd. is a provider of cloud

plan

Operating profit

Net sales

net sales

services for real estate business support, just as

5,000

5,000

Post-integration

Post-integration

NJC. This management integration is expected to

operating profit

sales outlook

2,000

outlook

maximize synergies by using the customer bases

of both companies and enable the two

companies to make an even bigger contribution

4,000

Three-year

to progress in the real estate industry.

plan

1,500

net sales

*A profile of RealNetPro and other

3,900

information is on pages 22 to 25.

3,000

Three-year

plan

Three-year

net sales

Exchange of stock and purchase of

2,617

plan

3,084

operating

1,000

treasury shares

profit

2,000

An exchange of some stock will be used as part

Three-year

1,560

plan

of measures to make RealNetPro a wholly owned

operating

Now3営業利益カ年計画

profit

subsidiary. The goal is the sustained growth of

500

850

this company while supporting the digital

1,000

Three-year

transformation (DX) of the real estate industry.

plan

585

operating

Treasury shares will be purchased for use for the

profit

450

exchange of stock.

0

0

FY6/21 results

FY6/22

FY6/23

FY6/24

5

Copyright ©2022, Nihon Jyoho Create Co., Ltd. All rights reserved.