Rozetta : Partial Corrections of “Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2021

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.

May 10, 2021

To whom it may concern:

Company name: Rozetta Corp.

Representative: Junichi Goishi, Representative Director and CEO

(Stock Code: 6182)

Contact: Executive Officer, General Manager of Group Administration Division

Taketo Arakawa

(TEL. [phone])

(Corrections and Corrections of Numerical Data) Partial Corrections of "Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending February 28, 2021 [Japanese GAAP]

We hereby announces that there have been corrections made partly to the "Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2021 [Japanese GAAP]" that was disclosed on January 14, 2021.In addition, there were corrections to the numerical data, so we will transmit the revised numerical data.

Notes

1. Reason for corrections

The consolidated financial results for the third quarter of the fiscal year ending February 28, 2021 on January 14, 2021 were corrected due to some errors.

For details, 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" released today (May 10, 2021).

2. Details of corrections

Corrections appear with an underline.

Since there are many corrections, the entire text is presented only for the corrected version.

The End.

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes

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.

[UPDATED] Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending

		February 28, 2021 [Japanese GAAP]
					January 14, 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, Executive Officer, General Manager of Group Administration Division	TEL [phone]
Scheduled date of filing of quarterly report:	January 14, 2021	Scheduled date of commencement of	－
dividend payment

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2021 (March 1, 2020 to November 30, 2020)

(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 of		%		Millions of		%		Millions			%		Millions	%
		yen					yen			of yen				of yen
Q3 FY2/21		3,019		2.9			261		(35.4)		230	(42.9)		136	(42.3)
Q3 FY2/20		2,933		42.5			405		125.9		403	124.8		236	83.3
(Note)
Comprehensive Q3 FY2/21	134	Millions of yen	((42.4)%）		Q3 FY2/20	234	Millions of yen	(81.6%）
income
		Net income per share		Diluted net income per
					share
				Yen						Yen
Q3 FY2/21			13.03						12.71
Q3 FY2/20			22.95						22.28
(2) Consolidated Financial Position
		Total assets						Net assets			Shareholders' equity ratio
				Millions of yen		Millions of yen						%
Q3 FY2/21					5,990				2,788						45.1
FY2/20					3,753				1,504						40.1
(Reference)	Q3 FY2/21			2,699	Millions of yen		FY2/20	1,503	Millions of yen
Shareholders' equity

(2) Dividend payment

			Annual dividend per share
	End of Q1	End of Q2		End of Q3		Year-end	Total
	Yen	Yen		Yen		Yen	Yen
FY2/20	－	0.00		－		0.00	0.00
FY2/21	－	0.00		－
FY2/21 (Forecast)						0.00	0.00

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

3. Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2021 (March 1, 2020 to February 28, 2021) (Percentages indicate year-on-year changes.)

	Net sales		Operating income
	Millions of yen	%	Millions of yen	%
Full year	3,910	0.0	450	0.4

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

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.

However, after the commencement of the Travel DX business, if the business reaches PMF (product market fit: the situation where the product/service provided is accepted by the market as the optimal means of solving the problems of the target users), and if it is determined that the time of the game is over, we will concentrate our upfront investment, and therefore we reserve the possibility that profits will be reduced only by the amount of increased expenses. In such cases, we will promptly provide concrete indicators that suggest the achievement of PMF in the business.

The impact of COVID-19 pandemic on our business results is as follows.

As for the MT business during the third quarter and December, the number of orders from new customers had been recovering moderately, but the number of orders received per project was low due to their tight budgets and receiving large-scale orders continued to be difficult.

Accordingly, we have worked to further promote the use of our services to existing customers, who have already experienced the effectiveness of our services, and have implemented measures to expand orders from existing customers.

As a result, the MT business as a whole recovered to the level of orders received of 277 million yen and 296 million yen in November and December.

However, it is impossible to predict the impact on economic activities, including the slowdown of decision-making process at each company, due to the government's declaration of a state of emergency that was reinstated on January 7, 2021, and the impact on the fourth quarter, including January 2021 and February 2021, is uncertain.

The HT business, which undertakes manual tasks, has recovered since bottoming out in August due to the establishment of economic activities under COVID-19 pandemic and online language training. However, the recovery has leveled off since November, and a full-fledged recovery is expected to take time. The interpretation business conducted on a face-to-face and group basis is significantly affected by restrictions on entry and travel to overseas, and the timing of the recovery remains uncertain.

The forecasts here are based on actual results and conditions actually affected by COVID-19 pandemic as of January 14, 2021, and do not incorporate any predictions, such as when the medical, political, or economic problems caused by COVID-19 pandemic will subside.

*Notes

(1) Changes in significant subsidiaries during the period

(changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

Newly consolidated: Event DX Corporation, Travel DX Corporation, and MATRIX Corporation

Excluded: -

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial Statements (Changes in Scope of Consolidation or Scope of Equity Method Application)" on page 6 of the Appendix.

(2) Adoption of special accounting methods for presenting quarterly consolidated financial statements: Yes

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements, (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 revision 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)
4. 1. Number of shares outstanding at the end

of the period (including treasury stock)	Q3 FY2/21	10,657,660	shares	FY2/20	10,330,260	shares
2) Treasury shares at the end of the year	Q3 FY2/21	422	shares	FY2/20	422	shares
3) Average number of shares outstanding	Q3 FY2/21	10,478,344	shares	Q3 FY2/20	10,302,137	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.

Rozetta Corp. Consolidated Financial Results

For the Third Quarter of the Fiscal Year Ending February 28, 2021

○ Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results ……………………………………………………………………	2
(1) Results of Operations ……………………………………………………………………………………………………	2
(2) Consolidated 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 Nine-month Period ………………………………………………………………………………………	5
Quarterly Consolidated Statements of Comprehensive Income
For the Nine-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 application of the equity method) ………………………………………………	6
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial
Statements) ………………………………………………………………………………………………………………	6
(Segment Information) …………………………………………………………………………………………………	7
(Per share Information) …………………………………………………………………………………………………	8
(Significant Subsequent Events) ………………………………………………………………………………………	9

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