AMBITION DX : (Delayed)Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year 2022 (FY06/2022)

FOR TRANSLATION PURPOSE ONLY

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.

In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail.

February 14, 2022

Summary of Consolidated Financial Results

for the Second Quarter of the Fiscal Year 2022 (FY06/2022)

[Japanese standards] (Consolidated)

Company name:	AMBITION DX HOLDINGS Co., Ltd.
Stock exchange listing:	Tokyo
Securities code:	3300	URL:	https://am-bition.jp/
Representative:	President & Representative Director	Takeshi Shimizu
Inquiries:	Executive Officer & General Manager of Corporate Management Division

					Fuminori Ozeki	TEL: [phone]
Scheduled date to file Quarterly Securities Report:	February 14, 2022
Scheduled date to commence dividend payments:	N/A
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		Yes (for institutional investors)
					(Amounts less than one million yen are rounded down)
1. Consolidated financial results of the second quarter of FY06/2022 (July 1, 2021 - December 31, 2021)
(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes)
	Net sales		Operating		Ordinary		Net profit (loss)attributable to
		profit (loss)		profit (loss)		owners of parent
	million yen	%	million yen	%	million yen	%	million yen	%
2Q of FY06/2022	14,538	(11.6)	541	13.2	506	17.5	267	35.9
2Q of FY06/2021	16,440	35.8	478	－	431	－	197	－

(Note) Comprehensive profit	2Q of FY06/2022:	(19) million yen [－%]
		2Q of FY06/2021: (213) million yen [－%]
		Net profit (loss) per share	Diluted net profit (loss) per share
			yen	yen
2Q of FY06/2022			39.35	38.69
2Q of FY06/2021			28.96	27.77

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

million yen

million yen

%

yen

2Q of FY06/2022

16,430

3,417

20.7

500.40

FY06/2021

17,648

3,852

21.7

564.05

(Reference) Shareholders equity

2Q of FY06/2022:

3,404 million yen

FY06/2021:

3,838 million yen

2. Cash dividends

Annual dividends per share

1Q-end

2Q-end

3Q-end

Year-end

Total

yen

yen

yen

yen

yen

FY06/2021

－

0.00

－

13.60

13.60

FY06/2022

－

0.00

FY06/2022 (forecasts)

－

14.90

14.90

(Note) Revisions to dividend forecasts published most recently: No

3. Consolidated performance forecasts for FY06/2022 (July 1, 2021 - June 30, 2022)

(Percentages indicate year-on-year changes)

Net sales

Operating

Ordinary

Net profit (loss) attributable

Net profit

profit (loss)

profit (loss)

to owners of parent

(loss) per share

million yen

%

million yen

%

million yen

%

million yen

%

yen

Full term

30,605

0.2

1,301

33.0

1,165

29.8

646

8.6

94.94

(Note) Revisions to performance forecasts published most recently: No

In the Incubation Business segment, operational investment securities were successfully sold and therefore the above Consolidated Performance Forecasts were revised accordingly. For detail, please refer to "(3) Descriptions regarding future prospects such as consolidated performance forecasts" on page 4.

FOR TRANSLATION PURPOSE ONLY

*Notes

(1)	Changes in significant subsidiaries during the current quarter consolidated cumulative period
	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement:	No
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	①	Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
	②	Changes in accounting policies due to other reasons:	No
	③	Changes in accounting estimates:	No
	④	Restatement of prior period financial statements:	No

1. Number of issued shares (common shares)
   ① Total number of issued shares at the end of the period (including treasury stock)

2Q of FY06/2022:

6,804,400 shares

FY06/2021:

6,804,400 shares

• Number of treasury stock at the end of the period

2Q of FY06/2022:

48 shares

FY06/2021:

48 shares

• Average number of shares during the period (quarterly cumulative)

2Q of FY06/2022:

6,804,352 shares

2Q of FY06/2021:

6,804,352 shares

• Quarterly summary of financial results is not included in a quarterly review by a certified public accountant or an auditing firm.
• Explanation regarding appropriate use of the earnings forecast and other special notes
  Descriptions about the future such as performance forecasts contained in this document are based on information currently available to the Company and certain presumptions considered as reasonable, and those are not intended to indicate the Company should assure that it would realize such forecasts. Meanwhile, actual performance in the future may differ substantially, influenced by a wide variety of factors. For preconditions for performance forecasts and precaution statements in using such forecasts, please see the appendix, page 4, "1. Qualitative Information regarding the Financial Results of the Current Quarter: (3) Descriptions regarding future prospects such as consolidated performance forecasts".

FOR TRANSLATION PURPOSE ONLY	AMBITION DX HOLDINGS Co., Ltd. (3300)
	Summary of Consolidated Financial Results for the Second Quarter of FY06/2022
○ Table of Contents: Appendix
1. Qualitative Information regarding the Financial Results of the Current Quarter	.............................................................	2
(1)	Descriptions regarding operating results.....................................................................................................................	2
(2)	Descriptions regarding financial position ...................................................................................................................	4
(3)	Descriptions regarding future prospects such as consolidated performance forecasts................................................	4
2. Quarterly Consolidated Financial Statements and Principal Notes ..................................................................................	5
(1)	Quarterly Consolidated Balance Sheets ......................................................................................................................	5
(2)	Quarterly Consolidated Statements of Income and Statements of Comprehensive Income .......................................	7
	Quarterly Consolidated Statements of Income
	For the second quarter consolidated cumulative period .........................................................................................	7
	Quarterly Consolidated Statements of Comprehensive Income
	For the second quarter consolidated cumulative period .........................................................................................	8
(3)	Quarterly Consolidated Cash Flow Statements..................................................................................................	9
(4)	Notes on Quarterly Consolidated Financial Statements..............................................................................................	11
	(Going Concern Assumption).....................................................................................................................................	11
	(Notes in Case of Significant Changes in the Amount of Shareholders' Equity) .......................................................	11
	(Segment Information, etc.) .......................................................................................................................................	12
	(Significant Post-Balance Sheet Events) ....................................................................................................................	14

1

Current

Leasing DXProperty Management Business Sales/Purchase DXInvestment Business Leasing DXLeasing Brokerage Business Incubation Business

(unchanged)

FOR TRANSLATION PURPOSE ONLY	AMBITION DX HOLDINGS Co., Ltd. (3300)
	Summary of Consolidated Financial Results for the Second Quarter of FY06/2022

1. Qualitative Information regarding the Financial Results of the Current Quarter

1. Descriptions regarding operating results

During the current second quarter consolidated cumulative period, the environment surrounding the Group once showed some movement towards recovery in economic activities in the context of full lift of State of Emergency Declaration and Stricter Countermeasures. In addition, rising rate of domestically requested vaccination led to relaxing various restrictions on people's activities and the situation appeared to improve. However, emergence of the new mutant strains provoked concerns about repetitive widespread infections and there remains some uncertainty for the future.

In such a situation, the Group aims at its own business reform and industry reform through DX (digital transformation). In August 2021, the Company announced its new vision of "To reform real estate business through DX and become a sole real estate digital platformer which fuses digital and real world together", and in October, changed its name to AMBITION DX HOLDINGS Co., Ltd. (formerly AMBITION Co., Ltd.). Also in August, AMBITION VENTURES Ltd. was established as the Company's consolidated subsidiary to undertake investment business. Besides, Incubation Business segment was newly created and started full-swing operation during the current second quarter consolidated cumulative period, so the way of describing this segment has been revised to present it as one of the reportable segments. Meanwhile, since the current second quarter consolidated fiscal period, names of reportable segments have been changed as follows: from "Property Management Business" to "Leasing DX Property Management Business"; from "Investment Business" to "Sales/Purchase DX Investment Business"; and from "Leasing Brokerage Business" to "Leasing DX Leasing Brokerage Business".

Changes in names of the segments (changed portions are underlined)

Former

Property Management Business

Investment Business

Leasing Brokerage Business

Other Business

The Company has its policy for FY06/2022 as "Reform of existing business by promoting DX and growth of Real Estate DX Business". Firstly, the Company seeks to promote DX in its principal Leasing DX Property Management Business segment on a priority basis, and has worked proactively on building up its next-generation management system named "AMBITION Cloud". Sales/Purchase DX Investment Business segment foresees seasonal fluctuations linked to market changes in its target of Tokyo premium area and its results in the current second quarter consolidated cumulative period were as initially planned. On the other hand, because not only Leasing DX Leasing Brokerage Business segment achieved better results as initially predicted but also Incubation Business segment greatly contributed to overall results, the Company could achieve much higher profitability than as planned for the first half of the current term.

Consequently, consolidated performance of the current second quarter consolidated cumulative period was as follows: Net sales of 14,538,812 thousand yen (decrease by 11.6% YoY); Operating profit of 541,940 thousand yen (increase by 13.2% YoY); Ordinary profit of 506,609 thousand yen (increase by 17.5% YoY); and Net profit attributable to owners of parent of 267,733 thousand yen (increase by 35.9% YoY).

Operating results of individual business segments are as follows.

(Leasing DX Property Management Business)

This business segment is the Group's principal one which undertakes mainly subleasing of residential real estates, and has its basic policies as to increase number of houses under its management and to maintain high occupancy rates. During the current term, the Company seeks to promote DX in this business on a priority basis and has put its efforts to building up a next-generation management system named "AMBITION Cloud" which facilitates higher operational efficiency.

Again during current second quarter consolidated cumulative period, as a result of putting efforts strategically to obtaining future profit, number of houses under its management which represents a KPI (Key Performance Indicator) substantially increased to 23,084 (increase by 2,097 [10.0%] YoY), as well as 12,883 subleased houses (increase by 1,378 [12.0%] YoY). Please note that by ongoing measures for improved occupancy rate into which offering cost is put, as well as DX measures, occupancy rate after excluding newly contracted properties has maintained a high level as of the end of the current second quarter consolidated cumulative period. Meanwhile, by proactively obtaining new contracts, overall occupancy rate was 94.4% (in comparison, it was 95.5% at the end of 2Q of the previous FY).

These operations resulted in Net sales of 8,102,664 thousand yen (increase by 7.9% YoY), and Segment profit (Operating profit) of 442,751 thousand yen (decrease by 2.4% YoY).

2

FOR TRANSLATION PURPOSE ONLY

AMBITION DX HOLDINGS Co., Ltd. (3300)

Summary of Consolidated Financial Results for the Second Quarter of FY06/2022

(Sales/Purchase DX Investment Business)

This business segment is, with its strength of "Good location (Tokyo premium area) by Good design (fashionable designers)", in collaboration with VERITAS INVESTMENT Co., Ltd., a subsidiary of the Company, which develops its business around selling self-developed studio apartments offered for investment in new building, and by means of its ability to purchase properties from diverse routes, undertaken by Investment Division of the Company which develops its business around selling renovated condominium apartments with emphasis on location. During the current second quarter consolidated cumulative period, 122 properties (decrease by 44 YoY) were sold by VERITAS and 46 properties (decrease by 5 YoY) were sold by Investment Division.

These operations resulted in Net sales of 5,641,631 thousand yen (decrease by 33.2% YoY) and Segment profit (Operating profit) of 656,033 thousand yen (decrease by 28.0% YoY). Despite decrease in revenues and earnings, these results are in line with the plan.

(Leasing DX Leasing Brokerage Business)

This business segment undertakes brokerage business for leased properties, mainly those managed by the Company. AMBITION AGENCY Co., Ltd. (which operates "ROOMPIA") and VALOR Co., Ltd. (which operates "VALOR"), both of which are subsidiaries, run total 13 shops: 5 in Tokyo, 7 in Kanagawa Pref. and 1 in Saitama Pref. High leasing ability of this segment contributes to the high occupancy rates maintained by the principal Leasing DX Property Management Business segment.

During the current second quarter consolidated cumulative period, by making use of an AIxRPA tool named "RAC·TECH", the Company succeeded in personnel downsizing for inputting work and substantial increase in the number of response. In addition, attracting guests on the WEB by strengthened advertising strategies is doing well, and measures for attracting guests including enhanced non-face-to-face services such as remote customer services, VR preview, electronic contract, are also successful.

These operations resulted in Net sales of 294,305 thousand yen (increase by 3.9% YoY) and Segment profit (Operating profit) of 15,633 thousand yen (as opposed to Segment loss of 29,231 thousand yen in the same period of the previous year). Improved productivity per shop provided the first black figure for the first quarter which is a off season and further, much higher profit than as predicted could be registered during the current second consolidated cumulative period as well.

(Incubation Business)

Incubation Business segment manages investment in venture companies which carry out businesses highly compatible with those of the Group, capital tie-up, support for invested companies and other operations, which is undertaken by AMBITION VENTURES Ltd., a subsidiary. As of the end of the current second quarter consolidated cumulative period, the Company has invested in 22 venture companies, and four of them have already got listed.

During the current second quarter consolidated cumulative period, some of investment securities of invested companies were sold.

These operations resulted in Net sales of 294,102 thousand yen and Segment Profit (Operating profit) of 288,405 thousand yen.

(Other Business)

Real Estate DX Business, Overseas Systems Business, Small Amount Short-term Insurance Business, and Hotel Business are collectively included in this category.

For Real Estate DX Business, the next-generation management system "AMBITION Cloud" has been developed by the overseas subsidiary, AMBITION VIETNAM Co., Ltd., which is promoted on a priority basis for internal DX. During the current second quarter consolidated cumulative period, the AIxRPA tool named "RAC·TECH" developed by

1. subsidiary, Re-Tech RaaS Inc. has been functionally enhanced, and a new brand "RAC·TECH Auto-input" was also released in December 2021. In addition, the application for searching for rooms named "Room concierge" which is the Group's first BtoC matching service has been deployed in full-swing and has increasing number of registered users. Moreover, efforts are put to development of an electronic contract package in which IT explanation of important matters and the electronic contract system named "Cloud Sign" developed by Bengo4.com, Inc., on which test introduction has started since August 2021 for Leasing DX Leasing Brokerage Business segment.
   Small Amount Short-term Insurance Business has obtained new contracts smoothly during the current second quarter consolidated cumulative period, along with playing a role in DX in the Group by using the new system named "MONOLITH" introduced during the previous term in which the whole process from application through to payment can be completed on a paperless basis. However, following returning to the black in the previous term and thus change in the funding method for underwriting reserve, lower earnings are expected for the current term.
   Hotel Business has still been severely impacted by declined demand from inbound tourists also during the current second quarter consolidated cumulative period, and shrank its business such as termination of a contract with one facility.

3