Rozetta : Partial Corrections of “Consolidated Financial Results for the Fiscal Year Ended 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 Fiscal Year Ended February 28, 2021 [Japanese GAAP]

We hereby announces that there have been corrections made partly to the "Consolidated Financial Results for the Fiscal Year Ended February 28, 2021 [Japanese GAAP]" that was disclosed on April 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 fiscal year ended February 28, 2021 on April 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.

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 Fiscal Year

	Ended February 28, 2021 [Japanese GAAP]
					April 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 annual general shareholders meeting	May 25, 2021	Scheduled date of commencement	May 26, 2021
of dividend payment
Scheduled date of filing of annual securities report	May 26, 2021

Preparation of supplementary materials for financial results: Yes

Holding of financial results briefing: Yes

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)

(1) Consolidated Results of Operation

(Percentages indicate year-on-year changes.)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of parent

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

FY2/21

4,075

4.2

300

(33.1)

275

(38.2)

140

(54.4)

FY2/20

3,910

34.5

448

32.8

445

32.2

308

20.5

(Note)

Comprehensive

FY2/21

210

Millions of yen

((31.1)%)

FY2/20

306

Millions of yen

(20.0%)

income

Diluted net income per

Net income to

Ordinary income

Operating income

Net income per share

shareholders'

share

to total assets

to net assets

equity

Yen

Yen

%

%

%

FY2/21

13.35

13.02

6.7

5.6

7.4

FY2/20

29.91

29.05

22.9

13.9

11.5

(Reference) Income on

FY2/21

(0)

Millions of yen

FY2/20

－

Millions of yen

equity method investments

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity ratio

Net asset per share

Millions of yen

Millions of yen

%

Yen

FY2/21

6,166

2,790

43.8

253.66

FY2/20

3,753

1,504

40.1

145.60

(Reference)

FY2/21

2,703

Millions of yen

FY2/20

1,503 Millions of yen

Shareholders' equity

(3) Consolidated Cash Flows

Cash flows from operating

Cash flows from investing

Cash flows from financing

Cash and cash equivalent at

activities

activities

activities

the end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY2/21

1,351

(1,919)

1,866

2,288

FY2/20

963

(1,256)

430

989

2. Dividend payment

Annual dividend per share

Total amount of

Payout ratio

Dividend on

equity

End of Q1

End of Q2

End of Q3

Year-end

Total

dividends (Total)

(Consolidated)

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

FY2/20	－	0.00	－	0.00	0.00	－	－	－
FY2/21	－	0.00	－	6.00	6.00	63	44.9	3.0
FY2/22 (Forecast)	－	0.00	－	7.00	7.00		32.0

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 yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	4,910	20.5	610	103.0	450	63.3	260		85.1	21.89

(Note) 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 fiscal year ending February 28, 2022, we will integrate the current HT business and the current crowdsourcing business to disclose 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.

As described in "Financial Results for the Nine-month Period (17th Fiscal Period) of the Fiscal Year Ending February 28, 2021 _P.19 (Cash Cow of the MT Business)" on January 14, 2021, 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).

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 350million yen in the calculation of the consolidated business forecasts. This is the amount that is calculated by converting the operating loss of 168million 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. This disclosure (Consolidated Financial Results for the Fiscal Year Ended February 28, 2021) was revised and disclosed on May 10, 2021 after being disclosed on April 14, 2021. Accordingly, the policy of the GU business from the fiscal year ended February 28, 2022 has been changed. For details, please refer to the "Notice Regarding Amendments to Accounting Procedures for the GU Business and Related Documents for the Fiscal Year Ended February 28, 2021 Due to the Amendments" disclosed on May 7, 2021.

• 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 "3. Consolidated Financial Statements and Major Notes, (5) Notes on Consolidated Financial Statements (Changes in Scope of Consolidation or Scope of Equity Method Application)" on page 12 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

1. Number of shares outstanding (common stock)
2. 1. Number of shares outstanding at the end of the period (including treasury stock)
   2. Treasury shares at the end of the year
   3. Average number of shares outstanding during the period

FY2/21	10,657,660	shares	FY2/20	10,330,260shares
FY2/21	422	shares	FY2/20	422 shares
FY2/21	10,522,454	shares	FY2/20	10,309,025shares

(Reference) Summary of Non-consolidated Results of Operation
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
(1) Non-Consolidated Results of Operation			(Percentages indicate year-on-year changes.)
	Net sales		Operating income	Ordinary income	Net income
	Millions of		%	Millions of	%	Millions of	%	Millions of		%
	yen		yen	yen	yen
FY2/21	2,772		25.1	142	(28.7)	285	(64.4)	247		(68.2)
FY2/20	2,217		66.9	200	932.5	800	－	780		－

(Note) Since the year-on-year increase (decrease) in ordinary income and net income for the fiscal year ended February 28, 2020 exceeds 1,000%, these figures are indicated as "-."

In the non-consolidated results of operations, the main reasons for the changes in ordinary income and net income are as follows.

• Non-operatingincome from dividends from 100% subsidiaries was 200 million yen in the fiscal year ended February 28, 2021, compared to 600 million yen in the fiscal year ended February 28, 2020.
• In the fiscal year ended February 28, 2021, non-operating expenses related to the issuance of shares and share subscription rights were 38 million yen.

	Net income per share	Diluted net income per share
	Yen	Yen
FY2/21	23.56	22.99
FY2/20	75.69	73.51

(2) Non-consolidated Financial Position

	Total assets	Net assets	Shareholders' equity ratio	Net asset per share
	Millions of yen	Millions of yen	%	Yen
FY2/21	6,320	2,764	43.1	255.56
FY2/20	3,587	1,415	39.5	137.05

			Milli			Milli
(Reference)	FY2/21	2,723	ons	FY2/20	1,415	ons
Shareholders' equity	of	of
			yen			yen

• This consolidated financial report is not subject to audit 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. Overview of Results of Operation, (2) Consolidated Business Forecasts" on page 3 of the Appendix for the assumptions underlying the forecasts and cautions concerning the use thereof.