Ambition : (Delayed)Supplementary Financial Materials Fiscal Year Ended June 2021 (Q2)

Q2

Securities Code

3300

2021

Supplementary Financial Materials

Fiscal Year Ending June 2021 (Q2)

February 12, 2021（Friday）

Ambition Corporation

ISIN JP3128650003

AGENDA

ISIN JP3128650003
01	About Ambition Group	P. 4
02	Financial Summary	P. 14
03	Individual Business	P. 21
04	Forecast for the Current Fiscal Year	P. 52
05	Mid-Term Policy	P. 55
06	APPENDIX	P. 59

今期方針

Executive Summary

Policy for the Fiscal Year

Ending June 2021

A year of establishing a growth base as a real estate DX company

Plan to continue focusing on the promotion of company-wide digital transformation (DX) and the growth of RPA business, and make appropriate conduct upfront investment.

H1 Results

Bolstered by a strong performance in the Investment Business, net sales totalled 16.44 billion yen (up 35.8% year on year) and operating profit was 478 million yen (compared with an operating loss of 21 million yen in the same period a year earlier), both surpassing H1 forecasts.

01

About Ambition Group

Segment Configuration (3 Segments + Other)

Investment Business

Developing and selling properties with favorable location and design

Small Amounts and Short-Term Insurance Business

Stock business expected to turn into the black in the current fiscal year

Rental Brokerage Business

Developing properties centering on properties managed by

Ambition targeting mainly young singles

"New Business with High Growth Potential"

Real Estate DX Business

Transforming the analog real estate industry mainly through the RPA business

Other Businesses

Major Topics During the Fiscal Year Ending June 2021

- 1Q -

Aug. 14, 2020 [Hope] Announced development of "MONOLITH," a new system for small amounts and short-term insurance that promotes InsurTech (introduced Sep.)

Sep. 2, 2020	[Hope] Launched "New Living Security Insurance," a new product for small amounts and short-term insurance
Sep. 30, 2020	Announced business partnership with Market Enterprise Co., Ltd. <3135> engaged in the online reuse business
- 2Q -
Oct. 2, 2020	[Veritas] Launch of sales of new designer condominium for investment "PREMIUM CUBE
Komagome"
Oct. 2, 2020	[Veritas] Launch of sales of new designer condominium for investment "PREMIUM CUBE
Morishita"
Nov. 1, 2020	[Ambition Agency] Opened "Roompia Ikebukuro Higashiguchi"

Nov. 13, 2020	Announced change of name from Real Estate Tech Business to "Real Estate DX Business" in
Other Businesses
Nov. 13, 2020	Announced business partnership in real estate DX product collaboration with Bengo4.com, Inc.
<6027> providing electronic contract system "Cloudsign"
Nov. 19, 2020	Commenced solicitation of funds for fourth project of "A funding," a crowd-funding service for
real estate investment

Reference - Q3 Onwards -

Jan. 6, 2021 [Veritas] Launch of sales of new designer condominium for investment "PREMIUM CUBE Nakano"

Jan. 13, 2021 [Ambition Agency] Participated in "Project to energize Japan from small and medium-sized enterprises" for which Atsushi Tamura of London Boots comedy duo serves as official ambassador

Feb. 12, 2021 Announced the release this spring of "Room Concierge," an app matching users who are searching for rooms with real estate brokers/salespeople

Feb. 12, 2021 Notification of selection by MLIT as business operator enrolled in social experiment to realize society where important matters related rental transactions and sales transactions are explained online

Change of Name to Real Estate DX Business and New Strategy (Q2: Announced on November 13)

Changed name of "Real Estate Tech Business" to "Real Estate DX Business" in the current fiscal year

Basic policy: Focusing on product development by combining development by the

Group and alliances in a balanced way, and transforming labor-intensive real estate business through DX

Strengths of Ambition

Product Development Structure

Development by the Group

Development subsidiary in

Vietnam, etc.

New DX Strategy - Step (1):

Development and Sales of Products in the Real Estate Field

As ST2E0P21,年in６itia月lly期focus on efforts on DX in the real estate industry with the aim of

2020年６月期総括

"accelerating growth in Group businesses" and "creating new revenue sources in an SaaS format" in the real estate field

Business Value Chain

New DX Strategy - Steps (2) and (3): Future DevelopmentNext, as STEP 2, use the know-how we have accumulated to launch new customer-oriented serv2i0c2e0s年(fo６r月co期n総su括mers) in the real estate field.

2021年６月期

Finally, as STEP 3, consider branching out into new fields beyond the real estate field.

Hankyoubaizou-kun

(Contract progress management system)

Collaborative product

AI algorithm inferring optimum rent

An app matching users who are searching for rooms with real estate brokers/salespeople (P.13)

Business Alliance with Bengo4.com, Inc. (2Q: Announced Nov. 13)As STEP 1 of our DX strategy, we will integrate the web-based cloud contract service "Cloud Sign" provided by BENGO4.COM, INC. (6027) to improve the efficiency of our own business operations initially and then to conduct external sales to real estate companies.

We will conduct product development along the following two axes and plan to release products gradually from this spring.

External product development

◼ Plan to introduce electronic contracts using CLOUDSIGN in own Rental Brokerage Business this spring (P.11)

◼ Plan to conduct external sales to real estate companies later

Improvement of own productivity

• ◼ Utilization of CLOUDSIGN in communication with existing customers in the Property Management Business

• ◼ Plan to integrate the contract progress management system CPMA in the Property Management Business before the end of the year

  Also aiming to introduce for new contracts (P.12)

[External Sales Model]

Electronic Contract Package Integrating of CLOUDSIGNWe are currently developing an electronic contract package integrating the CLOUDSIGN service provided by BENGO4.COM, INC. After releasing the package this spring, we plan to start using it in our own Rental Brokerage Business first and then to branch out into external sales.0

Electronic contract packaging integrating CLOUDSIGN

Re-Tech RaaS inc. will then begin external sales to real estate companies

*Parent company AMBITION CORPORATION has been participating in the experiment since January 2021. AMBITION AGENCY Co., Ltd. andVALOR Co.., Ltd.

in the Rental Brokerage Business plan to participate in the future.

[Own Model]

Integration of "CPMA" and "CLOUDSIGN" by the End of the Year

By integrating CLOUDSIGN with "CPMA," the contract progress management system used in the Property Management Business, we will achieve greater business efficiency and higher productivity.

Current CPMA functions

Progress management prior to contract conclusion

Enhanced functions integrating

Explanation of Real Estate Contract Disclosure Statement

Lease Agreement

New Service in Real Estate FieldAs STEP 2, of our new DX strategy, we will develop new customer-oriented services (for consumers). We plan to launch a new service this spring.

App matching users who are searching for rooms and Room Concierge (real estate brokers/salespeople)

Room Concierge

Main functions

• ◼ Viewing of posts introducing properties via SNS-type UI/UX

• ◼ Rating of posts through "Likes" or comments

• ◼ Room Concierge chat function

• ◼ Room Concierge search and registration functions

Service charge

◼

Completely free for users

Assumed revenue

◼

Advertising revenue and revenue from servicecharges on the business operator side

Room Concierge

(Real estate brokers/salespeople)

User searching for a room

02 Financial Summary

Impact of COVID-19 on Business Results and H2 Forecasts

: No impact : Adverse impact : Significant adverse impact

Property Management Business

Investment Business

[H1 Result]

[H2 Forecast]Occupancy rate

(1) During Q2, the occupancy rate fell temporarily due to an increase in new properties managed and the impact of COVID-19

(3) Control cost of finding tenants whilst monitoring trend of occupancy rate

(4) Continue to focus on further improving the occupancy rate in Q3

(5) Aim for occupancy rate of 97% at the end of the fiscal year

No adverse impact either in H1 or H2

Rental Brokerage Business

Aim to maintain recovery seen in H1 in H2 as well, despite lower-than-normal moving demand, especially among students

Real Estate DX Business

Avoidance of adverse impact of COVID-19 both in H1 and H2 through online initiatives to acquire new customers and deal with existing customers

Insurance Business and Overseas System Business

No adverse impact either in H1 or H2

Hotel Business

Hit by decreased inbound demand both in H1 and H2

Profit and Loss StatementH1 net sales increased 35.8% year on year due to the strong performance of the Investment Business.

EBITDA was 5.86 times the level a year earlier, and operating profitability (improvement of 499 million yen year on year) was achieved.

* EBITDA ＝ Operating profit + Depreciation + Software Depreciation + Amortization of Goodwill

Difference between H1 Forecasts and ResultsNet sales, operating profit, ordinary profit and profit all surpassed H1 forecasts thanks to the strong performance of the Investment Business.

-Ordinary profit:Significant improvement of 20%, mainly due to 10% improvement in operating profit and the recording of non-operating income such as COVID-19 grants

―EBITDA:Slightly worse than forecast due to decrease in depreciation owing to losses in Hotel Business which was badly hit by COVID-19

431

V.s. forecast

Net sales

+5.0%

Operating profit

+10.3%

Ordinary profit

+20.2%

Profit

+2.0%

Quarterly Changes in Net Sales

◼ Bolstered by the accelerated sale of some properties scheduled for H2 in the Investment

Business, Q2 net sales rose 79.1% year on year to set a new Q2 record.

◼

While sales in core businesses tend to be concentrated on H2, this fiscal year, sales in the Investment Business were more concentrated on H1 and sales are expected to even out on a full-year basis.

YoY comparison

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ending

June 2018

June 2019

June 2020

June 2021

Quarterly Changes in Operating profit and Operating Profit Margin

◼ Q2 operating profit improved significantly year on year mainly due to improvement in the number of units for which payment was received as a result of an increase in new prime properties handled in the Investment Business.

◼

This fiscal year, operating profit is expected to be achieved in all four quarters.

(Unit: million yen)

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

2Q

-3.5%
Fiscal year ended	Fiscal year ended	Fiscal year ended	Fiscal year ending
June 2018	June 2019	June 2020	June 2021

Balance Sheet

Net assets decreased due to decline in the market value of investment securities.

End of the fiscal year ended June 2020	End of H1 of fiscal year ending June 2021	Amount of change
Current assets	9,395	10,680	+1,285
Non-current assets	5,819	4,723	-1,096
Deferred assets	4	3	-1
Total assets	15,219	15,407	+188
Current liabilities	5,639	5,507	-132
Non-current liabilities	5,682	6,265	+583
Net assets	3,897	3,634	-263
Total of liabilities and net assets	15,219	15,407	+188

Equity ratio

25.5%

23.5%

-2%

03 Individual Business

Property Management Business

(Mainly engaged in by AMBITION with some engagement by Veritas Investment and VALOR)

Business Performance in Property Management (Rental Property Management Business for H1 of the Fiscal Year Ending June 2021

◼ Net sales rose 4.8% year on year due to an increase in the number of units managed, which is the KPI.

◼

Segment income fell 19.9% year on year. This was due to special factors such as investment made in DX, in addition to expenditure and the implementation of measures (p.26) to address a fall in the occupancy rate in Q2, caused by a combination of more new properties managed and COVID-19.

Segment Income (million yen)

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

Key Performance Indicator (KPI): Change in the Number of Managed Units

Our mainstay Property Management Business is a stock business, and the number of managed units, which is the KPI, regardless of economic situation, is increasing steadily.

- Usually, the growth rate tends to slow when the number of managed units exceeds 20,000, but Ambition continues to maintain a growth rate higher than the industry average with its unique know-how and network.

Change in Number of Managed Units and Sublease Management Units

20,000

15,000

10,000

5,000

(units)

0

Fiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year ended

June 2013

June 2014

June 2015

June 2016

June 2017

June 2018

Fiscal year ended	Fiscal year ended	End of H1 of
June 2019	June 2020	fiscal year ending
June 2021

Quarterly Changes in Occupancy Rate

Owning several quality properties, such as designer condominiums, mainly in the 23 wards of Tokyo, which sees high demand.

Also maintaining a high occupancy rate compared to many competitors by operating a rental

brokerage business within the Group.

◼	Managed properties:	Mainly quality studio condominiums such as designer condominiums
◼	Area:	Concentrated in Tokyo (mainly in the 23 wards) + Kanagawa, Chiba and Saitama prefectures
◼	Target group:	Mainly young demographic

Quarterly Changes in Occupancy Rate

(%)

YoY

96.5

95.5

60

45

End of H1 of fiscal year ended June 2020	End of H1 of fiscal year ending June 2021
Occupancy rate	96.5%	95.5%

30

15

The occupancy rate fell in Q2 due to a combination of more new properties managed and COVID-19⇒Aim for occupancy rate of 97% by the end of the fiscal year

0

Fiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year endedFiscal year ended

June 2013

June 2014

June 2015

June 2016

June 2017

June 2018

June 2019

June 2020

End of H1 of fiscal year ending

June 2021

Measures to Improve Occupancy Rate Implemented in Q2

We implemented appropriate measures to address the downward trend in the occupancy rate resulting from a combination of more new properties managed and COVID-19, and we succeeded in raising the occupancy rate.

Moving forward, we will continue to control the cost of finding tenants whilst monitoring change in the occupancy rate.

Monthly changes in the occupancy rate

Raised occupancy rate through expenditure to find tenants

Busy period

State of emergency

2019/12

2020/1

2020/2

2020/3

2020/4

2020/5

2020/6

2020/7

2020/8

2020/9

2020/10

2020/11

2020/12

Property Sharing Pipeline Leading to Increase in Number of Units Management

Construct business scheme for stable acquisition of properties to self-manage

Continue to strengthen property supply pipeline for increasing the number of managed units, which is the KPI

Property Supply Pipeline

Development and purchase/

sale of for-investment studio

Business Partnership with Market Enterprise Co., Ltd. (Formed in Q1)

We are expanding our initiatives with Market Enterprise Co., Ltd. <3135>, which operates the "Oikura" purchasing platform, aiming to create a one stop shop for all moving needs including real estate appraisal and purchasing.

Assessment and comparison of the purchase price as well as the sale of unnecessary items is possible in a single request

Additional initiative

Launch real estate appraisal and purchasing service from

January 2021

Build new real estate purchasing pipeline

Main DX Promotion Measures

Further promote real estate DX in the current fiscal year

Measure 1.

Continue to promote RPA in typical work

("Rakutech" was developed for other companies)

Measure 2.

Introduce multiple new systems for the promotion of next-generation management

Q1:Test introduction of CRM (Customer RelationshipManagement System) combining CTI (Computer Telephony Integration) and IVR (Interactive Voice Response)

Q2: Introduction of repair and maintenance management system

Q3:Planning test introduction of property management system, etc.

Improving customer satisfaction through real estate DX

Measure 3.

Develop a unique AI algorithm that maximizes LTV strategies (lifetime value), and realize automated calculation of optimum rent

※画像の記載データはイメージ

Customization of "CPMA" Contract Progress Management System

Measure 4.

Introduced "CPMA*," a contract progress management system for the online "visualization" of communication with brokers conducted via phone or FAX, in October 2018  Q2: Customized to encourage further improvement in business efficiency

"CPMA," contract progress management system

• ◼ Unified management of vacancy confirmation, property viewing and contract process management on the website

• ◼ "Enhancement of customer satisfaction" by spending more time for clients

• ◼ Realization of work-style reform

* Acronym of Contract Process Management Automation

Investment Business

(Mainly engaged in by Veritas Investment with some engagement by AMBITION's Investment Department)

Investment Business Performance Trends for H1 of Fiscal Year ending June 2021

◼ Net sales increased sharply, up 88.9% year on year, reflecting the earlier sale of some properties scheduled for H2 as settlement periods, which had grown longer due to COVID-19, returned to normal, in addition to sales (around 1.5 billion yen) postponed from the previous fiscal year.

◼

Segment income grew substantially to 3.6 times the level a year earlier, mainly due to an increase in new prime properties handled and also because the sales postponed from the previous fiscal year were properties with high profit margins.

4,468 911

Segment Income (million yen)

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

Characteristics and Strengths

Mainly engaged in by Veritas, which is a subsidiary having strengths in new properties developed by the Group

Veritas Investment (Consolidated subsidiary)

Investment Department

Sale of new studio condominiums for investment

Characteristics and strengths

Favorable location

Tokyo Premium Area

×

Favorable design

Stylish designer condominiums

Number of units where

Payment settlement completed in H1

166 units (up 41 units year on year)

"PREMIUM CUBE" series curated by a famous designer is very popular

Renovation/sale of for-sale condominiums

Renovation brand

Focusing on location (Tokyo Premium Area)

Capable of purchasing properties through various channels

51 units (up 22 units year on year)Also developing a crowdfunding business

Promotion of DX

Veritas adds IoT to "Tokyo x Designers x Studio Condominiums"

Creation of a new condominium standard in Tokyo realizing support for safer, more comfortable urban living

Residents

Using remote controllers for home appliances

Using smartphones when going out Using smart speakers at home Controlling home appliances

Status of property management and notification function

Owners

Notification of management status Smooth contact through chats

Provision of information on condominium management

Owners

Information on real estate investment and condominium management Distribution of property information and provision of useful information

Status of Crowdfunding Business

"A funding," a crowdfunding service for real estate investment, enables online real estate investment in small amounts from 10,000 yen per unit.

Conduct speedy distribution with high return exceeding the industry average

First projectSecond projectThird project

Fourth project

January 2020 Distribution yield 6%

Priority and Subordination Scheme

Investors

July 2020 Distribution yield 5%

Completion

July 2020 Distribution yield 5%November 2020 Distribution yield 5%

Even if the price of real estate in which investments are made decreases, it will be covered with the amount invested by Ambition

It is popular as a low-risk financial instrument as it preferentially protects the amount invested by investors

It is enjoying a favorable reputation as many people are on the waiting list immediately after the start of solicitation

Rental Brokerage Business

(Engaged in by Ambition Rent and Ambition Partner in addition to Ambition Agency and VALOR)

Rental Brokerage Business Performance Trends for H1 of Fiscal Year ending June 2021

◼ Net sales increased by 18.5% year on year due to successful measures for attracting customers including online customer attraction and remote customer attraction through the strengthening of advertising strategy.

◼

In terms of segment profit and loss, improvement in productivity per store (reduction of selling, general and administrative expenses through the introduction of AI x RPA tool "Rakutech") has caused loss to decrease. It is expected to turn into the black during the current fiscal year.

Net Sales (million yen)

Segment Profit and Loss (million yen)

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

-98

-29

(‒%)

YoY comparison +69 million yen

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

Number of Branches and Promotion of DX

Although Ambition intends to change the area of focus to attracting customers mainly through websites, it possesses as one of its strengths the leasing capabilities of brick-and-mortar stores, which contributes to maintaining a high occupancy rate in the mainstay Property Management Business

(Ambition Agency)

(VALOR)

Promotion of DX

As of Q1

5 branches

7 branches

◼ Successfully reduced personnel in input operations and increased the number of inquiries substantially with the introduction of "Rakutech for brokers"

Opened "Roompia Ikebukuro Higashiguchi," which will become a model branch of "next- generation room searches," in November

Opening of branch in Q2

+1 branch

ー

• ◼ Customer attraction through websites is favorable

• ◼ Strengthen non-face-to-face services such as remote customer service, VR

Number of current branches

6 branches

7 branches

property viewing and electronic contract

New PR Strategy

AMBITION AGENCY's PR Strategy

PR strategy using celebrities

Announced January 13, 2021 (3Q)

Participated in "Project to energize Japan from small and medium- sized enterprises" for which Atsushi Tamura of London Boots comedy duo serves as official ambassador

Digital Marketing

• ◼ Strengthen communication and PR capabilities by using influential celebrities in online ads

• ◼ Seek to create a buzz and improve recognition and ability to attract customers

Project URL:https://nippon-smes-project.com/

Other Businesses

• ■ Real Estate DX Business (Re-Tech RaaS, a new company)

• ■ Small Amounts and Short-Term Insurance Business (Hope)

• ■ Hotel Business (Ambition)

• ■ Overseas System Business (Ambition Vietnam)

Other

Other Businesses Performance Trends for H1 of Fiscal Year ending June 2021

(Real Estate DX, Small Amounts and Short-Term Insurance, Hotel, and Overseas System)

◼ Net sales increased in the Small Amounts and Short-Term Insurance Business due to an increase in the number of new contracts, but decreased 10.8% year on year in the Hotel Business, which experienced a significant adverse impact from COVID-19.

◼

In terms of segment profit and loss, the loss in the Hotel Business and upfront investment in DX (approx. 130 million yen) resulted in an increased loss.

Net Sales (million yen)

Segment Profit and Loss (million yen)

-85

-129

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

H1 of fiscal year ended June 2020

H1 of fiscal year ending June 2021

Initiatives in Real Estate DX Business

A range of initiatives to realize DX in the "residential" field

Rakutech, a Tool Combining AI and RPA Provided by Re-Tech RaaS inc.ISIN JP3128650003

Rakutech, a tool combining AI and RPA launched as a SaaS in December 2019, has hitherto been marketed under three brand names, but "Rakutech Hankyoubaizou-kun" will be the main brand moving forward.

Rakutech

for brokers

Hankyoubaizou-kun

Rakutech

Hankyoubaizou-kun

Plan to integrate with Rakutech for brokers and market as main brand. Aim for expansion in customer base.

Rakutech	for management	for management
companies	companies

Rakutech

Updating of Rakutech, Tool Combining AI and RPA, Currently Underway

AI + RPA + BPO + big data on leasing = overwhelming improvement in work efficiency

Moreover, the accuracy of the AI improves autonomously through continuous learning and inference cycles

Hankyoubaizou-kun

H2 Strategy for Rakutech, Tool Combining AI and RPA

Approach around 120,000 real estate management and brokerage companies nationwide through implementation of the following initiatives.

Aiming to expand our share in the real estate RPA market all at once.

• ◼ Strengthen online advertising strategy

• ◼ Continuously conduct market research related to AI and RPA

◼ Expand sales force

◼ Expand customer service team

◼ Expand sales network by entering into new agency agreements

Medium-to-Long-Term Strategy for Real Estate DX Business

Re-Tech RaaS will endeavor to maximize the number of customers acquired in the current fiscal year.

Scheduled to make appropriate upfront investments

Previous fiscal year:

Focused on system development staff

Current fiscal year:

Marketing/sales staff and advertising, etc.

Also eyeing expansion into industries other than real estate in the future

Insurance New Product in Small Amounts and Short-Term Insurance Business

"Shin Sumai no Anshin Hoken Wide (Home Insurance in Japan)" which offers wider coverage than "Shin Sumai no Anshin (Home Insurance in Japan)" launched in September 2020 (Q1), will be released in February 2021 (Q3).

Aim for growth in new contracts by further strengthening market competitiveness.

• • Covering the risk of facility damages

• • Rapid Solution Service for House Problems (24/7 service) and other services in enhanced coverage

Around 20,000 contracts held currently

Residents

Gaining around 1,000 contracts every month

Change in the Number of Contracts Held

(illustrative drawing)

Insurance DX in Small Amounts and Short-Term Insurance Business

MONOLITH, system for small amounts and short-term insurance provided by HOPE SSI which promotes InsurTech

(Q1: Introduced in September)

Resolute

DX

The system completes bothersome insurance procedures in a paperless and cashless manner

Advantage for customers

No need to attend in person for any part of the process from application to payment

Advantage for agents

No need to print or send documents, eliminating the labor involved in sending, collecting the original and checking. The contract rate will also rise by shortening the period from proposal to conclusion of contract

Insurance Future Policy for Small Amounts and Short-Term Insurance Business

Hope is projected to turn into the black in the current fiscal year, the fourth year since it started operations

Projected change in number of HOPE users at properties managed by

AMBITION CORPORATION

• ◼ Aim to expand our share by increasing the number of new contracts and agents by promoting InsurTech

• ◼ Aim to win contracts with property management companies having a large number of managed units

Stock business stably accumulating profits after turning into the black

Currently

In 3 years

Hotel

&HOSTEL

• ◼ [Tokyo] Kanda

  Plan to terminate contract at the end of March

• ◼ [Tokyo] Asakusa

  Suspended operations again in November in respond to weak inbound demand due to COVID-19

• ◼ [Osaka] Hommachi East

  Currently operating with thoroughgoing implementation of COVID-19 prevention measures

Measures to Prevent Infection from COVID-19

• • In consideration of the health and safety of staff, staff are to wear a face mask while working

• • Health checks and measurements of body temperature are required of staff upon arrival at work (rest at home if 37.5ºC or higher)

• • Thoroughly ensuring frequent washing of hands and gargling during and out of work

• • All guest rooms have the inside of rooms disinfected using hypochlorous acid prior to check-in

• • All guest rooms are equipped with hand soap and mouthwash

• • Guests can rent thermometers free of charge to measure their body temperature

Overseas

Overseas System Business (Ambition Vietnam)

International operations are implemented through our affiliate in Vietnam since it was established in April 2015

Addressing the shortage of engineers in the real estate industry by offshoring

• ◼ Web system development outsourced from companies in Vietnam and Japanese venture firms

• ◼ BPO operations for the Ambition Group (data entry service)

• ◼ Real estate purchase/sale and leasing brokerage services for foreigners in Vietnam

<>

We are engaged in development and renovation not only for the real estate business but also for the creation of a better life.

In operating a real estate business, Ambition Vietnam provides brokerage services centering on real estate leasing and purchase/sale by fusing IT and Ambition's businesses

Model Diagram of Outsourced System Development

Outsource system development

Clients

Develop systems

Ambition Vietnam

04 Forecast for the Current Fiscal Year

Consolidated Forecasts for Fiscal Year Ending June 2021

Forecast for the Current Fiscal Year

Sales and profit are expected to see double-digit increases. Net sales is expected to exceed 30 billion yen.

(Note 1) Business forecasts and other forward-looking statements in this document are based on information currently available to Ambition as well as certain assumptions deemed to be rational. Therefore, actual results may differ significantly due to various factors.

(Note 2) The EBITDA forecast for fiscal year ending June 2021 is lower than the figure in previously disclosed materials due to a change in the conditions for inclusion of depreciation in the Hotel Business. The other forecasts are unchanged.

Distribution Policy

We will continue with a plan for stable shareholder return going forward while conducting proactive upfront investment in growth areas

Expect a significant increase in the current fiscal year

Fiscal year ended June 2020 (actual)

Fiscal year ending June 2021 (forecast)

Maintain payout ratio as in the previous fiscal year and increase period-end distribution amount by 6 yen

Payout ratio: 15.7%

05 Mid-Term Policy

Medium-Term Policy of the Ambition Group

Mid-Term Policy

We will expand the stable revenue base of existing real estate businesses centered on the Property Management Business, which is a stock business.

While actively promoting new businesses centering on DX in the residential field, we will aim to become a leading company in the real estate industry in both the physical and digital realms.

* The medium-term goal will be reviewed in light of the situation with COVID-19, status of progress of new businesses, etc.

Direction Existing Businesses and New Businesses Respectively

Existing Businesses

The growth of the Property Management Business, which is relatively unaffected by the economy and whose revenue base keeps growing, will be the core. Promote an increase in managed units (KPI) centering on studio condominiums in Tokyo, which already holds a large share.

In the Investment Business and Rental Brokerage Business, aim for revenue contribution by actively and carefully accelerating activities.

New Businesses

Aim for an expansion of the share of "Rakutech," a tool combining AI and RPA in the Real Estate DX Business.

Given the SaaS model, large contributions to revenue can be expected after becoming profitable.

Meanwhile, continue to promote InsureTech in the Small Amounts and Short-Term Insurance Business, a stock business, focusing on increasing the number of contracts and agents.

Future Performance Growth

Ambition Group aims for rapid growth of its performance after turning new businesses positive while strongly improving performance of existing businesses

06 APPENDIX

Businesses of Ambition Group

Ambition's real estate SPA handles development, purchase, sales, brokerage of transactions and leasing, insurance and system development, centering on real estate property management to address the diverse needs of customers.

Recently, we have been focusing on the RPA business, which is anticipated to become a new growth driver in the Real Estate DX Business

Ratio of Net Sales by Segment (Results for Fiscal Year Ended June 2020 and H1 of Fiscal Year Ending June 2021)

In the fiscal year ended June 2020, the mainstay Property Management Business accounted for the largest share of net sales.

In H1 of the fiscal year ending June 2021, the Investment Business performed strongly and its share surpassed that of the Property Management Business.

[Ratio of Net Sales (Fiscal Year Ended June 2020)]

[Ratio of Net Sales (H1 of fiscal year ending June 2021)]

Fields in Which Ambition Group Is Concentrating Its Efforts

Promotion and research of digital transformation (DX) in the "residential" field utilizing the assets of existing real estate businesses

Business Axis of DX

Industrial transformation through digitalization (business-oriented)

◼ "RPA" improving business efficiency

◼ AI business based on big data, etc.

Evolution of customer experience (customer-oriented)

• ◼ Smart home (IoT)

• ◼ Preview system utilizing AR and VR

• ◼ Token community utilizing blockchain, etc.

Reason for Promoting Real Estate DX

Promoting DX due to the following reasons in order to realize our mission

◼ Departure from labor-intensive business

As the labor shortage is becoming a social issue, improvements in productivity are required also in real estate businesses.

◼ Room for evolution from the viewpoint of customers

There is infinite room for evolution in the "residential" field, which has not evolved significantly over the past several decades.

Becoming a leading company in the real estate industry that can realize the mission of creating the "future" of residences and offering "dreams" in living

Property Management Business

While inbound demand is stagnant due to COVID-19, the rate of foreign residents in the 20,987 units managed by Ambition was maintained at 9.6% (as of the end of Q2), the same level as before the outbreak of COVID-19 (9.1% at the end of Dec. 2019), through the incorporation of relocations of foreign residents by way of brokers specializing in foreign nationals.

Number of Contracts with Foreign Residents in Properties Managed by Ambition

(cases)

4,213

4,330

Number of Foreign Residents in Japan

3,830

3,330

2,830

2,330

1,830

Approx. 8 times

2,939,000

(Approx. 2.2% of total population)

YoY comparison +202,000(Note)

1,330

830

556

330

(Note) Ministry of Justice "Statistics on

Foreign Residents," Dec. 2019

(170)

2007-2015

2016-end of December 2020

Investment Business (Veritas Investment)

Sales of Veritas Investment's new designer condominiums for investment was favorable

The most important thing in sales of studio condominiums for investment is to minimize risk for investors

The properties of Veritas have helped many investors avoid risks by realizing "high rent x high occupancy rate = high return"

PREMIUM CUBE Series

Realized the creation of premium asset value from "location," "design" and "facility specifications" (CUBE)Curation by a famous designer + Tokyo Premium Area(Note)

High rent x High occupancy rate = High return

PREMIUM CUBE KomagomePREMIUM CUBE MorishitaPREMIUM CUBE Nakano

(Note) Tokyo Premium Area: Meguro Ward, Shibuya Ward, Shinjuku Ward, Minato Ward, Shinagawa Ward, and Chuo Ward

Investment Business (AMBITION's Investment Department)

The Investment Department at the main unit of AMBITION excels in "maximization of value" of used properties with a focus on location (Tokyo Premium Area)

[Business]

◼

Sale of entire real estate

◼ Renovation/resale of for-sale condominiums

◼

Real estate brokerageDeveloping a unique renovation brand "AMBITION＋RENO," and creating and providing new value to housing.

The "Rakutech" series by Re-Tech RaaS is a real estate RPA package offering advanced functions such as AI forecasts and BPO in addition to regular RPA functions

Forecasting responses to properties using AI based on abundant big data on leasing provides a major market advantage

(Patent No. 6670406)

Rakutech

Hankyoubaizou-kun

AI-based robot to forecast responses to rental properties

With real estate knowledge installed in RPA, AI analyzes property information to predict "properties that customers want to rent."

AI-related patents have been obtained to establish market advantage for Rakutech.

Advantages of Customers Using the Product

Well received as a robot for increasing work efficiency and capturing customer needs, as shown in a comment: "Even a part-time worker can enter property information instead of the shop manager and receive more inquiries (customer reactions) than the shop manager."

The more Rakutech is used, the more its accuracy improves, as it creates a model utilizing the user's original features, repeatedly conducts learning, and forecasts inquiries from customers in consideration of the seasonal characteristics.

Other: Hotel Business

About the &AND HOSTEL Smart Hostel Brand

&AND HOSTEL produced by the company 'and factory' is an experiential lodging facility which consolidates cutting-edge IoT devices in one place and provides an enjoyable near-future IoT space. It is a smart hostel to connect to the world, providing not only IoT experiences but also a place for encounters and gatherings of lodgers with vibrant communication only possible at hostels

Sublease agreements concluded for 2 facilities in Tokyo and 1 facility in Osaka

History of AMBITION GROUP

AMBITION VIETNAM

CO., LTD. [Company established

(overseas)]

(Apr. 2015)

Investment Business launched

Property Management Business and Rental Brokerage Business

Launched (Dec. 2007)

Founding of AMBITION Sep. 2007

(May 2012)

Acquired through M&A (Jan. 2010)

Roompia

Listed on TSE

Mothers Sep. 2014

Hope Small Amounts and Short-Term

Insurance

[Companies established]

(Nov. 2016)

VALOR

Acquired through M&A (Jun. 2015)PC-DOCTORS (current: RPA Retech Lab)Re-Tech RaaS [Joint company established]

(Jul. 2019)

"A funding," a crowd-funding service for real estate investment launched

(Jan. 2020)

Acquired through M&A (Dec. 2018)Veritas Investment Acquired through M&A (Oct. 2017)Ambition Rent Co., Ltd. (brokerage for students) Ambition Partner Co., Ltd. (brokerage for business) [Companies established]

(Jul. 2019)

Ambition Roompia renamed Ambition Agency Co., Ltd.

(May 2020)

Profile of Ambition Group Companies

Takeshi Shimizu

Ambition Corporation

September 14, 2007

Tokyo Stock Exchange (Mothers)September 19, 2014

379,780,200 yenEnd of June each yearTakumi Suzuki, Executive Managing Director; Masaaki Yamaguchi, Director Fumio Nagase, Director (Supervisory Auditor, etc.);

Miki Hayashi, Director (Supervisory Auditor, etc.); Hiroto Kawano, Director (Supervisory Auditor, etc.)

Minister of Land, Infrastructure, Transport and Tourism (3) No. 8023

Sumitomo Fudosan Harajuku Building 18F, 2-34-17 Jingumae, Shibuya-ku, Tokyo

Property Management Department:

Investment Department: Information Strategy Division / Leasing Brokerage Division

Business Administration Department: Corporate Planning Office /Financial Affairs Division / Internal Audit Office

Ambition Agency Co., Ltd. Ambition Partner Co., Ltd. Ambition Rent Co., Ltd. VALOR Co., Ltd.

Veritas Investment Co., Ltd.

Hope Small Amounts and Short-Term Insurance Co., Ltd. VISION Co., Ltd.

AMBITION VIETNAM CO., LTD. RPA Retech Lab Inc.

Re-Tech RaaS Inc.

MUFG Bank, Resona Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, ORIX Bank Corporation, Chiba Bank, etc.

Company name	Ambition Agency Co., Ltd.
Representative	Toru Oishi
Directors	Takumi Suzuki, Director; Masaaki Yamaguchi, Director; Fumiyoshi Ozeki,
Auditor
License number	Minister of Land, Infrastructure, Transport and Tourism (1) No. 9692

Sumitomo Fudosan Harajuku Building 16F, 2-34-17 Jingumae,

Head office location

Shibuya-ku, Tokyo

Branches

Naka-Meguro Branch, Takadanobaba Branch, Ginza Branch, Web Division, Higashi-Omiya Branch, Ikebukuro Higashiguchi Branch

Company name

Representative

Naoto Tamura

Takumi Suzuki, Director; Kazuto Sato, Director; Fumiyoshi Ozeki, AuditorMinister of Land, Infrastructure, Transport and Tourism (1) No. 9662Nagaoka Building 3F, 2-1-22 Kitasaiwai, Nishi-ku, Yokohama, Kanagawa

VALOR Co., Ltd.

Directors License number

Head office location

Branches

Yokohama Branch, Hiyoshi Branch, Kamiooka Branch, Futamatagawa Branch, Tsurumi Branch, Yokohama Okano Branch, Sagami-Ono BranchTomohiko Maeda, Representative Director and Vice President; Yoshio

Company name Representative Directors

Hideki Kawada

Maruyama, Director; Takeshi Shimizu,

Director; Takumi Suzuki, Director; Masaaki Yamaguchi, Director; Fumiyoshi Ozeki, Auditor

Veritas Investment Co., Ltd.

Building Lots and Building Transaction Business, Governor of Tokyo (3)

License number

No. 89191

Condominium Management Business, Minister of Land, Infrastructure, Transport and Tourism (2) No. 033520

First-class architect office, registered with the Governor of Tokyo, No. 55840

Shibuya Mark City West 19F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo

Head office location

Ryohei Fukumoto

Company name

Representative

Takeshi Shimizu, Director; Takumi Suzuki,

Directors

Registration number

Sumitomo Fudosan Harajuku Building 18F, 2-34-17 Jingumae, Shibuya- ku, Tokyo

Head office location

Disclaimer

This document has been prepared by Ambition Corporation ("Ambition") solely for the purpose of providing information on Ambition and Ambition's group companies (the "Group") and such, and does not constitute an offer to solicit investment in the stock or other securities issued by Ambition in Japan or abroad.

Outlooks, forecasts, plans, targets and other performance forecasts and future outlooks concerning Ambition and the Group described in this document are Ambition's judgements based on information available as of the date of this document.

Forecasts include various uncertain factors and actual performance may differ significantly from these future outlook.

Contact for IR-related inquiries

AMBITION IRhttps://www.am-bition.jp/ir/contact/