Rozetta : Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 28, 2022

DISCLAIMER: This document was prepared using our machine translation, and no manual modification has been made to the translated contents. This document is to be used solely as a reference and in cases where any differences occur between English version and the original Japanese version, the Japanese version shall prevail. The consolidated financial statements in this document are unaudited.

Consolidated Financial Results for the First Quarter of the Fiscal Year

	Ending February 28, 2022 [Japanese GAAP]
			July 15, 2021
Company name			Listing Market TSE
	Rozetta Corp.
Stock Code	6182	URL https://www.rozetta.jp
Representative: Junichi Goishi, Representative Director and CEO
Contact: Taketo Arakawa, Director, General Manager of Group Administration Division	TEL [phone]
Scheduled date of filing of quarterly report:	July 15, 2021 Scheduled date of commencement of dividend payment	－

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 28, 2022 (March 1, 2021 to May 31, 2021)

(1) Consolidated Results of Operation (Cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of parent

Millions

%

Millions

%

Millions

%

Millions

%

of yen

of yen

of yen

of yen

Q1 FY2/22

1,048

(1.8)

62

(65.4)

71

(60.7)

49

(59.5)

Q1 FY2/21

1,067

9.4

181

6.5

181

6.7

121

10.2

(Note) Comprehensive

Q1 FY2/22

49

Millions

（(59.5)%）

Q1 FY2/21

121

Millions

（10.8%）

income

of yen

of yen

Net income per share

Diluted net income per

share

Yen

Yen

Q1 FY2/22

4.64

4.55

Q1 FY2/21

11.80

11.51

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen

%

Q1 FY2/22

5,999

2,725

44.7

FY2/21

6,166

2,790

43.8

(Reference) Shareholders' equity

Q1 FY2/22

2,684

Millions of yen

FY2/21

2,703 Millions of yen

2. Dividend payment

Annual dividend per share

End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2/21

－

0.00

－

6.00

6.00

FY2/22

－

FY2/22 (Forecast)

0.00

－

7.00

7.00

(Note) Revisions to the most recently announced dividend forecast: None

3. Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2022 (March 1, 2021 to February 28, 2022) (Percentages indicate year-on-year changes.)

	Net sales		Operating income	Ordinary income	Net income attributable to	Net income per
		owners of parent		share
	Millions of		%	Millions of	%	Millions of	%	Millions of		%	Yen
	yen			yen		yen		yen
Full year	4,910		20.5	610	103.0	450	63.3	260		85.1	21.89

Notes: 1. Revisions to the most recently announced business forecast: None

2. In the consolidated business forecasts and the dividend forecast for the fiscal year ending February 28, 2022, there is a significant impact of the increase in procurement costs and the increase in the number of shares due to the exercise of the share subscription rights issued on July 14, 2020. For the purpose of calculating the forecast, we assume non-operating expenses of 160 million yen and an increase in the total number of shares outstanding by 1,218,800 due to the exercise of

the share subscription rights. Please note that this calculation is based on assumptions at the time this report was prepared. ◆Consolidated Business Forecasts by Segment

(Percentages indicate year-on-year changes.)

	Net sales		Operating income
Full year	Millions of yen	%	Millions of yen	%
MT business	3,480	23.1	720	110.0
HT business	1,430	14.5	260	36.6
GU business	－	－	(350)	－
Other corporate expenses	－	－	(20)	－

(Note) Effective from the first quarter of the fiscal year under review, the former HT business and the former Crowdsourcing business have been integrated and disclosed as the HT business.

This business forecast is based on the assumption that the economic environment is on an extension of the current situation, as it is impossible to predict the full-fledged recovery period for the decline in business performance and the stagnation in purchasing activities of client companies that are closely related to overseas due to COVID-19 pandemic and its secondary phenomenon.

In the MT business, we have continued to reduce selling, general and administrative expenses to an appropriate level in light of the current order intake (20-40% increase in MT sales) that was launched in the fiscal year ended February 28, 2021.

In addition, in the fiscal year ending February 28, 2022, office cancellation and decrease in depreciation of property, plant and equipment are expected, and the MT business is expected to earn around 720 million yen on an operating income basis.

For the GU business, we have assumed an operating loss of 350 million yen in the calculation of the consolidated business forecasts. This is the amount that is calculated by converting the operating loss of 168 million yen that occurred about six months after the commencement of the GU business in the previous fiscal year, to an amount through the entire year, and not set as a business forecast. We made a significant transition to the GU business during the fiscal year ended February 28, 2021. For an overview, please refer to the "Notice Regarding Amendments to Accounting Procedures for the GU Business and Amendments to Related Documents for the Fiscal Year Ending February 28, 2021 due to the Amendments" disclosed on May 10, 2021.

• Notes:
• 1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
  2. Adoption of special accounting methods for presenting quarterly consolidated financial statements: Yes

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes on Quarterly Consolidated Financial Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements)" on page 6 of the Appendix.

1. Changes in accounting policies, changes in accounting estimates and restatements
2. 1. Changes in accounting policies due to revisions of accounting standards, etc.: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatements: None
3. Number of shares outstanding (common stock)

(1) Number of shares outstanding at the end	Q1 FY2/22	10,657,660	shares	FY2/21	10,657,660	shares
of the period (including treasury stock)
2) Treasury shares at the end of the year	Q1 FY2/22	422	shares	FY2/21	422	shares
3) Average number of shares outstanding	Q1 FY2/22	10,657,238	shares	Q1 FY2/21	10,330,924	shares
during the period (cumulative)

* This quarterly financial report is not subject to the quarterly review by a certified public accountant or an auditing firm.

• Explanations and other special notes concerning the appropriate use of business forecasts (Cautionary Statement with Respect to Forward-Looking Statements)
  Forecasts regarding future performance in this material are based on information currently available to the Company and certain assumptions that the Company deems to be reasonable at the time this report was prepared. The Company does not make promises about the achievements. Actual results may differ significantly from the forecasts due to various factors. Please refer to "1. Qualitative Information on Consolidated Financial Results (3) Consolidated Business Forecasts" on page 3 of the Appendix for the assumptions underlying the forecasts and cautions concerning the use thereof.

(Method of Obtaining Financial Results Briefing Materials)

Supplementary materials for financial results were disclosed on the TDnet on the same date.

○ Table of Contents of the Appendix

1. Qualitative Information on Quarterly Financial Results ……………………………………………………………………	2
(1) Results of Operations ……………………………………………………………………………………………………	2
(2) Financial Position ………………………………………………………………………………………………………	2
(3) Consolidated Business Forecasts …………………………………………………………………………………………	3
2. Quarterly Consolidated Financial Statements and Major Notes ……………………………………………………………	4
(1) Quarterly Consolidated Balance Sheets …………………………………………………………………………………	4
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ……	5
Quarterly Consolidated Statements of Income
For the Three-month Period ………………………………………………………………………………………	5
Quarterly Consolidated Statements of Comprehensive Income
For the Three-month Period ………………………………………………………………………………………	5
(3) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………	6
(Notes on Going Concern Assumptions) ………………………………………………………………………………	6
(Notes on Significant Changes in Shareholders' Equity) ………………………………………………………………	6
(Changes in Scope of Consolidation or Scope of Equity Method Application) ………………………………………	6
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)	6
(Additional Information) ………………………………………………………………………………………………	6
(Segment Information) …………………………………………………………………………………………………	8
(Business Combinations) ………………………………………………………………………………………………	9
(Per share Information) …………………………………………………………………………………………………	10
(Significant Subsequent Events) ………………………………………………………………………………………	10

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