Freee K K : Financial Results for Q4 FY2020.6

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

	Consolidated Financial Results
	for the Fiscal Year Ended June 30, 2020
	[Japanese GAAP]
	August 12, 2020
Company name:	freee K.K.
Listing:	Tokyo Stock Exchange
Securities code:	4478
URL:	http://www.freee.co.jp
Representative:	Daisuke Sasaki, Representative Director and CEO
Inquiries:	Sumito Togo, Director and CFO
TEL:	[phone]

Scheduled date of ordinary general meeting of shareholders:	September 29,2020
Scheduled date to commence dividend payment:	-
Scheduled date to file annual securities report:	September 29,2020
Preparation of supplementary materials on financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)

(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended June 30, 2020

	(from July 1, 2019 to June 30, 2020)
(1)	Consolidated operating results								(Percentages indicate year-on-year changes.)
			Net sales			Operating profit		Ordinary profit		Profit attributable to
								owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen			%	Millions of yen		%	Millions of yen		%
June 30, 2020	6,895		52.7	(2,681)			-		(2,938)		-		(2,972)		-
June 30, 2019	4,516		-	(2,830)			-		(2,850)		-		(2,778)		-
Note:	Comprehensive income	For the fiscal year ended June 30, 2020:	¥(2,972) million [-%]
			For the fiscal year ended June 30, 2019:	¥(2,778) million [-%]
			Basic earnings per		Diluted earnings				Return	Ordinary profit to	Operating profit
					on shareholders'
			share			per share				equity	total assets	to net sales
Fiscal year ended	Yen			Yen				%			%			%
June 30, 2020	(66.18)			-				(33.7)			(23.2)	(38.9)
June 30, 2019	(68.27)			-				(66.3)			(38.6)	(62.7)
Note:	1.	The Company conducted a 3-for-1 stock split of common stocks as of September 25, 2019. The "Earnings per share" is calculated
		assuming that the said stock split was conducted at the beginning of the previous consolidated fiscal year.

1. 2. Diluted earnings per share is not stated because, although potential shares exist, basic loss per share was recorded.

2. Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
June 30, 2020	17,898	13,854	75.1	278.29
June 30, 2019	7,380	4,510	56.8	(287.97)

Reference:	Equity
		As of June 30, 2020:	¥13,447 million
		As of June 30, 2019:	¥4,189 million
Note:	In calculating net assets per share of the previous consolidated fiscal year, distribution amount of residual assets to the preferred stocks was
	deducted.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the
	operating activities	investing activities	financing activities
	end of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
June 30, 2020	(1,380)	(1,306)	11,970	15,136
June 30, 2019	(1,726)	(539)	6,484	5,852

2. Cash dividends

	Annual dividends		Total	Payout ratio	Dividends
					to net
First	Second	Third	Fiscal
	dividends	(consolidated)	assets
quarter-	quarter-	quarter-	Total
year-end			(consolidated)
end	end	end

	Yen	Yen	Yen	Yen	Yen	Millions	%	%
	of yen
Fiscal year ended	-	0.0	-	0.0	0.0	-	-	-
June 30, 2019
					-	-	-
Fiscal year ending	-	0.0	-	0.0	0.0
June 30, 2020
Fiscal year ending	-	0.0	-	0.0	0.0		-
June 30, 2021
(Forecast)

3. Consolidated earnings forecasts for the fiscal year ending June 30, 2021 (from July 1, 2020 to June 30, 2021) (Percentages indicate year-on-yearchanges.)

	Net sales		Adjusted operating
		profit
Fiscal year ending	Millions of yen	%	Millions of yen		%
9,657	40.1	(2,212)		-
June 30, 2021
Note: Adjusted operating profit is the sum of the operating profit, share-based compensation expenses, expenses for amortization of
acquisition-related intangible assets, and one-time cost. For details, please refer to "(4) Explanation of Consolidated Financial Results
Forecasts and Other Forward-looking Statements" under "1. Qualitative information on consolidated financial results" on page 3 of the
attached materials.

• Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (Common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2020		48,320,822 shares
	As of June 30, 2019		41,204,691 shares
b. Number of treasury shares at the end of the period
	As of June 30, 2020		-
	As of June 30, 2019		-
c. Average number of outstanding shares during the period
	As of June 30, 2020		44,920,449 shares
	As of June 30, 2019		40,695,293 shares

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Note: The Company conducted a 3-for-1 stock split of common stocks as of September 25, 2019. The " Total number of issued shares " and " Number of treasury shares " and "Average number of outstanding shares" are calculated assuming that the said stock split was conducted at the beginning of the previous consolidated fiscal year.

(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2020(from July 1, 2019 to June 30, 2020)
(1)	Non-Consolidated operating results							(Percentages indicate year-on-year changes.)
		Net sales			Operating profit		Ordinary profit		Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
June 30, 2020	6,928		51.3	(2,632)		-	(2,852)		-	(2,886)	-
June 30, 2019	4,579		89.6	(2,759)		-	(2,764)		-	(2,692)	-
		Basic earnings per		Diluted earnings
		share			per share
Fiscal year ended	Yen			Yen
June 30, 2020	(64.26)			-
June 30, 2019	(66.15)			-
Note:	1. The Company conducted a 3-for-1 stock split of common stocks as of September 25, 2019. The "Earnings per share" is calculated
	assuming that the said stock split was conducted at the beginning of the previous non-consolidated fiscal year.

1. 2. Diluted earnings per share is not stated because, although potential shares exist, basic loss per share was recorded.

2. Non-Consolidatedfinancial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
June 30, 2020	18,078	14,027	75.3	281.86
June 30, 2019	7,464	4,596	57.3	(285.88)
Reference: Equity
As of June 30, 2020:		¥13,619 million
As of June 30, 2019:		¥4,276 million

Note: In calculating net assets per share of the previous non-consolidated fiscal year, distribution amount of residual assets to the preferred stocks was deducted.

• Financial results reports are exempt from audit conducted by certified public accountants or audit firms.
• Proper use of earnings forecasts, and other special matters

Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Results may differ materially from the consolidated forecasts due to various factors.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Table of contents
1. Qualitative information regarding results for the period	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	2
(3)	Explanation of cash flows	3
(3)	Explanation of consolidated financial results forecasts and other forward-looking statements	3
2. Basic concept regarding selections of accounting standards	4
3. Consolidated financial statements and significant notes thereto	5
(1)	Consolidated balance sheets	5
(2)	Consolidated statement of income and consolidated statement of comprehensive income	6
	Consolidated statements of income	6
	Consolidated statements of comprehensive income	7
(3)	Consolidated statement of changes in equity	8
(4)	Consolidated statement of cash flows	9
(5)	Notes to the consolidated financial statements	11
Notes on premise of going concern	11
Segment information	11
Per share information	11
Significant events after reporting period	11

―1―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Qualitative information regarding results for the period

(1) Explanation of operating results

We estimate that the TAM (*1) for cloud accounting and payroll software for small businesses is around 1.2 trillion yen (*2). On the other hand, only 54.1% of businesses with 300 or fewer employees used accounting software, and among these businesses only 14.5% used cloud-based accounting software (*3). We believe that this relatively low adoption rate represents an opportunity for us to further expand the use of cloud ERP software among SMBs. In line with our corporate mission "Empower Small Businesses to Take Center Stage," (*4) we develop and offer services aimed at realization of "a platform that allows anyone with ideas, passion, and skills to easily grow a robust and streamlined business."

During the consolidated fiscal year, we made progress towards realization of our mission, seeking to expand direct sales organizations for further expansion in our customer base and also strengthening collaboration with financial institutions and other partners, and launched a new product named "Project Management freee." In addition, we invested in development to improve the functions of our core services "Accounting freee" and "HR freee" while also expanding the app portfolio on "freee App Store" and strengthening linkage with third-party software and services, and we also made a shift of means of linkage with financial institutions to connections via API for improved usability.

As a result, as of June 30, 2020, ARR (*5) was 7,898 million yen, up 49. 8% from June 30, 2019, the number of paying customers (*6) was 224,106, up 40.0%, and ARPU (*7) was 35,246 yen, up 7.0%.

Consequently, results for the consolidated fiscal year were net sales of 6,895 million yen, up 52.7% from June 30, 2019, an adjusted operating loss (*8) of 2,587 million yen (compared with 2,660 million yen in the previous consolidated fiscal year; the same shall apply hereinafter), an operating loss of 2,681 million yen (2,830 million yen), an ordinary loss of 2,938 million yen (2,850 million yen), and a net loss attributable to owners of parent of 2,972 million yen (2,778 million yen).

Trends in ARR, Number of Paying Customers and ARPU

	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2020
ARR (¥ million)	811	1,720	2,986	5,273	7,898
Number of paying	54,749	84,517	115,808	160,132	224,106
customers
ARPU (¥)	14,821	20,351	25,786	32,930	35,246

(Notes) 1. TAM：Total Addressable Market. This figure represents our estimate of our maximum market opportunity and is not intended as an objective indicator of the actual size of the market for our businesses as of the date of submission of this report. Our estimate of the TAM for accounting software and HR software for small businesses is based on certain assumptions and was calculated using statistical data and publications from external sources by the calculation method shown in 2 below. Actual market size may differ from this estimate due to the limitations peculiar to such statistical data and publications in terms of their accuracy.

2.Total annual spending of all potential customers assuming that all potential customers in Japan adopted Accounting freee and HR freee. All potential customers is the total of self-employed and SMBs with less than 1,000 employees. (Number of businesses in each category among all potential customers of Accounting freee and HR freee ("Tax Statistics 2017" by National Tax Agency and "Economic Census for Business Activity, June 2016" by Ministry of Internal Affairs and Communications) × Annual base charge of Accounting freee and HR freee for each category) + (Estimated average number of employees in each category ("Employment Status Survey, 2017" by Ministry of Internal Affairs and Communications) × Annual charge per ID) .

3.Survey of businesses that use cloud accounting software conducted by MM Research Institute in August 2017. 4.Small Businesses refers to businesses with 1,000 or fewer employees as well as self-employed individuals. 5.ARR: Annual Recurring Revenue. Monthly Recurring Revenue for last month of relevant period, multiplied by 12.

Monthly Recurring Revenue is defined as the amount of fees contracted to be paid by customers on a monthly basis as of the end of a particular month (excludes one-time fees). Upon this results announcement, the managerial accounting indicators (SaaS metrics) used as leading indicators for financial accounting figures were redefined to refine their accuracy as leading indicators. For example, ARR figures of users in the trial period are not booked and those of users receiving a discounted are also discounted accordingly to make the figures closer to actual net sales in financial accounting. The changes are retrospectively applied to past financial figures already disclosed.

6.Refers to both self-employed and SMBs that use our services. Upon this results announcement, following changes are applied: users in the trial period and users receiving a discount of whole monthly fees are excluded from the number of paying customers; and paying customers for all our paid subscription services (including sub-products available via Founding freee, such as electronic public notice service) are included in the count while only paying customers of our

―2―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

core services - Accounting freee and HR freee - were counted conventionally. The changes are retrospectively applied to past financial figures already disclosed.

7.ARPU: Average Revenue Per User. Annual Recurring Revenue as of the end of the relevant period divided by the number of paying customers as of the end of the same period.

8.Adjusted operating profit is the sum of the operating profit, share-based compensation expenses, expenses for amortization of acquisition-related intangible assets, and one-time cost.

(2) Explanation of financial position

(Assets)

Total assets as of June 30, 2020 stood at 17,898 million yen, up 10,517 million yen from June 30, 2019. This was mainly due to an increase of 9,783 million yen in cash and deposit primarily owing to the issuance of new shares.

(Liabilities)

Total liabilities as of June 30, 2020 stood at 4,043 million yen, up 1,172 million yen from June 30, 2019. This was mainly due to an increase of 858 million yen in unearned revenue.

(Net assets)

Total net assets as of June 30, 2020 stood at 13,854 million yen, up 9,344 million yen from June 30, 2019. This was due to increases of 6,115 million yen in common stock and capital surplus respectively due to the issuance of new shares associated with listing on the Tokyo Stock Exchange Mothers.

(3) Explanation of cash flows

Cash and cash equivalent (hereinafter "cash") as of June 30, 2020 stood at 15,136 million yen. Net cash flows and factors associated therewith in the consolidated fiscal year are as stated below.

(Cash flows from operating activities)

Net cash used in operating activities stood at 1,380 million yen. This was mainly due to the loss before income taxes of 2,964 million yen and an increase of 858 million yen in unearned revenue.

(Cash flows from investing activities)

Net cash used in investing activities stood at 1,306 million yen. This was mainly due to the payments of 500 million yen for time deposits of, the spending of 218 million yen for acquisition of tangible fixed assets and the spending of 505 million yen for acquisition of intangible assets.

(Cash flows from financing activities)

Cash provided by financing activities was 11,970 million yen. This chiefly reflects proceeds from issuance of new shares of 12,186 million yen associated with listing on Tokyo Stock Exchange Mothers.

(4) Explanation of consolidated financial results forecasts and other forward-looking statements

Our SaaS business, which generates the highest proportion of our earnings, provides services to users in the subscription business model, in which earnings are built up through users' continuous subscription of services over time. Meanwhile, this business model is characterized by prior investment in development and acquisition of customers, which generally entails an operating loss in the short term.

For the fiscal year ending June 30, 2021, we forecast net sales of 9,657 million yen (up 40.1% from the previous fiscal year) in view of expansion in our user base under the SaaS business model and an increase in revenue through factors including increased customer values. For profits, as mentioned above, we forecast an adjusted operating loss (*1) of 2,212 million yen (compared with a loss of 2,587 million yen in the previous fiscal year) due to the increase in prior investment in development and customer acquisition.

(Notes) 1. Adjusted operating profit is the sum of the operating profit, share-based compensation expenses, expenses for amortization of acquisition-related intangible assets, and one-time cost.

―3―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

2. Basic concept regarding selections of accounting standards

We have been compiling its consolidated financial statements according to the Japanese accounting standards considering comparability of consolidated financial statements of different periods and performance between domestic companies.

―4―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

3. Consolidated financial statements and significant notes thereto

(1) Consolidated balance sheets

				(Thousands of yen)
			As of June 30, 2019	As of June 30, 2020
Assets
	Current assets
		Cash and deposit	5,852,912	15,636,430
		Trade accounts receivable	638,027	765,297
		Other current assets	144,349	200,721
		Allowance for doubtful receivables	(19,135)	(14,821)
		Total current assets	6,616,153	16,587,628
	Non-current assets
		Property, plant and equipment
		Buildings and structures	124,089	170,248
		Accumulated depreciation	(98,855)	(103,287)
		Buildings and structures, net	25,233	66,960
		Tools, furniture and fixtures	147,930	296,464
		Accumulated depreciation	(32,811)	(89,093)
		Tools, furniture and fixtures, net	115,118	207,371
		Total property, plant and equipment	140,352	274,331
		Intangible assets
		Software	316,243	706,183
		Software in progress	61,108	64,629
		Total intangible assets	377,351	770,813
		Investments and other assets
		Investment securities	29,991	600
		Lease and guarantee deposits	164,021	211,586
		Other	53,087	61,763
		Allowance for doubtful receivables	-	(8,410)
		Total investments and other assets	247,100	265,540
		Total non-current assets	764,804	1,310,685
	Total assets	7,380,958	17,898,314
Liabilities
	Current liabilities
		Other payables	463,867	532,771
		Accrued expenses	487,835	592,571
		Income taxes payable	8,527	183,464
		Unearned revenue	1,726,254	2,584,770
		Other current liabilities	184,417	150,164
		Total current liabilities	2,870,902	4,043,742
	Total liabilities	2,870,902	4,043,742
Net assets
	Shareholders' equity
		Common stock	100,000	6,215,195
		Capital surplus	16,006,038	22,121,234
		Retained earnings (Accumulated deficit)	(11,916,199)	(14,889,185)
		Total shareholders' equity	4,189,838	13,447,244
	Stock acquisition rights	320,217	407,327
	Total net assets	4,510,056	13,854,571
Total liabilities and net assets	7,380,958	17,898,314

―5―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Consolidated statement of income and consolidated statement of comprehensive income consolidated statement of income

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	June 30, 2019	June 30, 2020
Net sales	4,516,950	6,895,240
Cost of sales	986,369	1,557,961
Gross profit	3,530,580	5,337,278
Selling, general and administrative expenses	6,361,251	8,018,375
Operating loss	(2,830,671)	(2,681,097)
Non-operating income
Commission income	1,226	183
Revenue from lecture fees	1,173	853
Foreign exchange gains	-	6,023
Other	1,344	449
Total non-operating income	3,744	7,509
Non-operating expenses
Share issuance costs	22,750	42,708
Listing related expenses	-	216,818
Other	1,260	5,014
Total non-operating expenses	24,010	264,542
Ordinary loss	(2,850,936)	(2,938,129)
Extraordinary income
Gain on reversal of stock acquisition rights	81,023	3,843
Total extraordinary income	81,023	3,843
Extraordinary losses
Valuation loss of investment securities	-	29,990
Total extraordinary losses	-	29,990
Loss before income taxes	(2,769,913)	(2,964,276)
Income taxes	8,527	8,708
Total income taxes	8,527	8,708
Loss	(2,778,440)	(2,972,985)
Loss attributable to owners of parent	(2,778,440)	(2,972,985)

―6―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Consolidated statement of comprehensive income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2019	June 30, 2020
Loss	(2,778,440)	(2,972,985)
Comprehensive income	(2,778,440)	(2,972,985)
Comprehensive income attributable to
	Comprehensive income attributable to owners of parent	(2,778,440)	(2,972,985)
	Comprehensive income attributable to owners of	－	－
	Minority interest

―7―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Consolidated statement of changes in equity Fiscal year ended June 30, 2019

					(Thousands of yen)
		Shareholders' equity		Stock
					Total
				Total
	Common	Capital	Retained	acquisition
	shareholders'	net assets
	stock	surplus	earnings	rights
	equity
Balance at
beginning of period	100,000	9,506,038	(9,137,759)	468,278	224,597	692,875
Changes during period
Issuance of new shares	3,250,000	3,250,000		6,500,000		6,500,000
Exercise of stock
acquisition right
Capital deduction	(3,250,000)	3,250,000		-		-
Profit attributable
to owners of parent			(2,778,440)	(2,778,440)		(2,778,440)
Net changes in items
other than shareholders'
equity					95,620	95,620
Total changes during
period	-	6,500,000	(2,778,440)	3,721,560	95,620	3,817,180
Balance at end of period	100,000	16,006,038	(11,916,199)	4,189,838	320,217	4,510,056

Fiscal year ended June 30, 2020

					(Thousands of yen)
		Shareholders' equity		Stock
					Total
				Total
	Common	Capital	Retained	acquisition
	shareholders'	net assets
	stock	surplus	earnings	rights
	equity
Balance at	100,000	16,006,038	(11,916,199)	4,189,838	320,217	4,510,056
beginning of period
Changes during period
Issuance of new shares	6,101,238	6,101,238		12,202,476		12,202,476
Exercise of stock	13,957	13,957		27,914		27,914
acquisition right
Profit attributable			(2,972,985)	(2,972,985)		(2,972,985)
to owners of parent
Net changes in items
other than shareholders'					87,110	87,110
equity
Total changes during	6,115,195	6,115,195	(2,972,985)	9,257,405	87,110	9,344,515
period
Balance at end of period	6,215,195	22,121,234	(14,889,185)	13,447,244	407,327	13,854,571

―8―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(4) Consolidated statement of cash flows

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	June 30, 2019	June 30, 2020
Cash flows from operating activities
Loss before income taxes	(2,769,913)	(2,964,276)
Depreciation and amortization	49,853	179,067
Stock-based compensation expenses	169,865	91,355
Increase in allowance for doubtful receivables	16,735	4,095
Stock issuance costs	22,750	42,708
Payment for listing related expenses	-	216,818
Valuation loss of investment securities	-	29,990
Gain on reversal of stock acquisition rights	(81,023)	(3,843)
Increase in trade accounts receivable	(207,120)	(135,681)
Increase in other payables	167,414	93,102
Increase in accrued expenses	132,290	99,311
Increase in unearned revenue	648,041	858,515
Other-net	133,159	116,931
Subtotal	(1,717,948)	(1,371,903)
Interest received	48	61
Interest paid	-	(14)
Income taxes-paid	(8,371)	(8,527)
Net cash provided by (used in) operating activities	(1,726,271)	(1,380,383)
Cash flows from investing activities
Payments into time deposits	-	(500,000)
Purchases of property and equipment	(72,435)	(218,891)
Payment for software	(407,220)	(505,370)
Purchases of investment securities	(29,991)	(600)
Purchases of lease and guarantee deposits	(30,471)	(47,625)
Other-net	1,117	(34,073)
Net cash provided by (used in) investing activities	(539,000)	(1,306,560)

―9―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2019	June 30, 2020
Cash flows from financing activities
Proceeds from issuance of new shares	6,477,250	12,186,171
Proceeds from issuance of new stock acquisition rights	6,778	1,110
Payment for listing related expenses		-	(216,818)
Net cash provided by (used in) financing activities	6,484,028	11,970,462
Net increase (decrease) in cash and cash equivalents		4,218,756	9,283,517
Cash and cash equivalents at the beginning of period	1,634,156	5,852,912
Cash and cash equivalents at the end of period		5,852,912	15,136,430

―10―

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Notes to consolidated financial statements (Notes on premise of going concern)

Not applicable.

(Segment information)

Segment information, etc. is omitted as the Group operates a single segment of the platform business.

(Per share information)

			(Yen)
		Fiscal year ended June 30, 2019	Fiscal year ended June 30, 2020
		(from July 1, 2018 to June 30, 2019)	(from July 1, 2019 to June 30, 2020)
Net assets per share	(287.97)	278.29
Basic earnings (loss) per share	(68.27)	(66.18)
Note: 1.	The Company conducted a 3-for-1 stock split of common stocks as of September 25, 2019 by a resolution of the Board of Directors
	on August 26, 2019 . The "Earnings per share" is calculated assuming that the said stock split was conducted at the beginning of the
	previous consolidated fiscal year.

2. In calculating net assets per share of the previous consolidated fiscal year, distribution amount of residual assets to the preferred stocks was deducted.

1. Information on diluted net income per share is omitted since the recorded figure was a net loss.
2. Basis for calculation of basic loss per share is as follows:

	Fiscal year ended June 30, 2019	Fiscal year ended June 30, 2020
	(from July 1, 2018 to June 30, 2019)	(from July 1, 2019 to June 30, 2020)
Profit (loss) attributable to owners of	(2,778,440)	(2,972,985)
parent (Thousands of yen)
Amounts not attributable to common	-	-
shareholders (Thousands of yen)
Profit (loss) attributable to owners of	(2,778,440)	(2,972,985)
parent related to common shares
(Thousands of yen)
Average number of common shares	40,695,293	44,920,449
outstanding during the period (Shares)
Overview of dilutive shares that are not	6,177,000 shares of stock acquisition rights	5,491,260 shares of stock acquisition rights
included in the calculation of diluted	(20 types of stock acquisition rights)	(20 types of stock acquisition rights)
earnings per share as they have no dilutive
effects

(Significant events after reporting period)

Not applicable.

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