PR TIMES : Summary of Consolidated Financial Results for the Year Ended February 28, 2022 (Based on Japanese GAAP)

Translation

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results

for the Year Ended February 28, 2022

(Based on Japanese GAAP)

April 13, 2022

Company name: PR TIMES, Inc.

Stock exchange listing: Tokyo

TAKUMI YAMAGUCHI
AKIHIRO MISHIMA TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	May 25, 2022
Scheduled date to file Securities Report:	May 25, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)
(Amounts less than one million yen are rounded down)

Stock code: Representative:

3922 URLhttps://prtimes.co.jp/ President and CEO

Inquiries: Director

1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended February 28, 2022 Year ended February 28, 2021	Millions of yen 4,854 -	% - -	Millions of yen 1,834 -	% - -	Millions of yen 1,833 -	% - -	Millions of yen 1,281 -	% - -

Earnings per share	Diluted earnings per share	Profit/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended February 28, 2022 Year ended February 28, 2021	Yen 96.96 -	Yen 93.90 -	% 34.3 -	% 38.0 -	% 37.8 -

(1) Consolidated operating results
Reference: Comprehensive income:	Year ended February 28, 2022:	¥1,280 million	[-%]
Year ended February 28, 2021:	¥- million	[-%]
Reference: Equity in earnings (losses) of affiliates:	Year ended February 28, 2022	¥- million
Year ended February 28, 2021	¥- million

Percentages indicate year-on-year changes

Note: Because the Company has prepared consolidated financial statements starting in the year ended February 28, 2022, the Company is not

stating year-on-year changes for the year ended February 28, 2022, or the consolidated operating results and year-on-year changes for the year ended February 28, 2021. In addition, profit/equity and ordinary profit/total assets for the year ended February 28, 2022 were calculated based on year-end equity and year-end total assets respectively as it was the first year of consolidated accounting.

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of February 28, 2022 As of February 28, 2021	Millions of yen 4,831 -	Millions of yen 3,740 -	% 77.4 -	Yen 278.52 -

Reference: Equity	As of February 28, 2022	¥3,739 million
As of February 28, 2021	¥- million

Note: Because the Company has prepared consolidated financial statements starting in the year ended February 28, 2022, the Company is not stating the consolidated financial position as of February 28, 2021.

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended February 28, 2022 Year ended February 28, 2021	Millions of yen 1,408 -	Millions of yen (554) -	Millions of yen (41) -	Millions of yen 3,344 -

Note: Because the Company has prepared consolidated financial statements starting in the year ended February 28, 2022, the Company is not stating the consolidated cash flows for the year ended February 28, 2021.

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended February 28, 2021 Year ended February 28, 2022	Yen - -	Yen 0.00 0.00	Yen - -	Yen 0.00 0.00	Yen 0.00 0.00	Millions of yen - -	% - -	% - -
Year ending February 28, 2023 (Forecast)	-	0.00	-	0.00	0.00	-

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Six months ending August 31, 2022 Full year	Millions of yen 2,823 5,950	% 22.9 22.6	Millions of yen 675 1,600	% (24.8) (12.8)	Millions of yen 673 1,596	% (24.9) (13.0)	Millions of yen 466 1,105	% (24.6) (13.8)	Yen 34.71 82.30

4. 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 of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of February 28, 2022 13,457,200 shares

As of February 28, 2021 13,457,200 shares

As of February 28, 2022

13,457,200 shares As of February 28, 2021

13,457,200 sharesNumber of treasury shares at the end of the period

As of February 28, 2022 30,847 shares

As of February 28, 2021 424,931 shares

30,847 shares As of February 28, 2021

As of February 28, 2022

424,931 shares

Average number of shares during the period

Year ended February 28, 2022 13,214,131 shares

Year ended February 28, 2021 13,040,131 shares

Year ended February 28, 2022

13,214,131 shares Year ended February 28, 2021

13,040,131 sharesNote: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. Total number of issued shares at the end of the period, number of treasury shares at the end of the period and average number of shares during the period have been calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(Reference) Overview of non-consolidated financial results

Non-consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)

(1) Non-consolidated operating results Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit
Year ended February 28, 2022 Year ended February 28, 2021	Millions of yen 4,842 3,765	% 28.6 30.6	Millions of yen 1,852 1,301	% 42.3 156.5	Millions of yen 1,851 1,299	% 42.5 156.2	Millions of yen 1,286 1,043	% 23.3 280.0

Earnings per share	Diluted earnings per share
Year ended February 28, 2022 Year ended February 28, 2021	Yen 97.37 80.01	Yen 94.29 76.60

Earnings per share Diluted earnings per share

Note: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. Earnings per share and diluted earnings per share have been calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of February 28, 2022 As of February 28, 2021	Millions of yen 4,830 3,457	Millions of yen 3,745 2,484	% 77.5 71.8	Yen 278.91 190.63

Reference: Equity

As of February 28, 2022

As of February 28, 2021

¥3,744 million ¥2,484 millionNote: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. Net assets per share have been calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

Reason for difference between non-consolidated financial results and actual results from the previous fiscal year

Net sales significantly exceeded the results of the previous fiscal year due to an increase in the number of companies using the press release distribution service "PR TIMES," as well as in the number of press releases.

* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

* Proper use of financial results forecasts, and other special matters

(Caution regarding forward-looking statements)

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. As such, they do not constitute guarantees by the Company of future performance. Results may differ materially from the consolidated forecasts due to various factors.

(How to obtain supplementary material on financial results and financial summary presentation material)

On Wednesday, April 13, 2022, the Company plans to post the supplementary material on the financial results on its website. The Company also plans to hold a financial summary presentation meeting for institutional investors and analysts on the same day.

Attached Material

Index

• 1. Overview of operating results, etc . ........................................................................................................... 2

  (1) Overview of operating results for the fiscal year under review .......................................................... 2

  (2) Overview of financial position for the fiscal year under review ........................................................ 3 (3) Basic policy on profit distribution and dividends for the fiscal year under review and next fiscal

  year ..................................................................................................................................................... 4

• 2. Basic concept regarding selection of accounting standards ...................................................................... 5

• 3. Consolidated financial statements and significant notes thereto ............................................................... 6

  (1) Consolidated balance sheet ................................................................................................................ 6

  (2) Consolidated statement of income and comprehensive income ......................................................... 8

Consolidated statement of income ...................................................................................................... 8

Consolidated statement of comprehensive income ............................................................................ 8

(3) Consolidated statement of changes in equity ..................................................................................... 9

(4) Consolidated statement of cash flows .............................................................................................. 10

(5) Notes to consolidated financial statements ....................................................................................... 11

Notes on premise of going concern .................................................................................................. 11

Basis of preparation of consolidated financial statements ................................................................ 11

Segment information ........................................................................................................................ 11

Per share information ....................................................................................................................... 12

Significant events after the reporting period .................................................................................... 13

1. Overview of operating results, etc.

(1) Overview of operating results for the fiscal year under review

• (i) Operating results during the fiscal year under review

  In the fiscal year ended February 28, 2022, the PR TIMES, Inc. Group (the "Group") invested in the development of new functions, etc. for the future in order to realize our mission of "Towards an age where information inspires hearts and minds" while continuing efforts to strengthen the core structure for the press release distribution service "PR TIMES," which is a key business.

  The Group is maintaining strong growth, with the number of companies using our services reaching 65,660 (up 29.7% year on year) in February 2022, 50.4% of listed companies in Japan using our services, the number of press releases reaching a record high of 28,534 in November 2021, etc. Also in November, 144,887 still images were posted, and in October, 2,406 videos were posted as press release materials, both representing record highs, as the shift to press releases with rich contents continues. In addition, there were 11,798 distribution recipients, 23,114 media users and 210 partner media, and the number of monthly site views for press releases in August was the highest recorded at 58.80 million page views. There has been an enormous response in terms of network effect accompanying the increases for both the distribution side and the receiving side of press releases. As a result, "PR TIMES" has evolved from an information distribution service for press releases, containing media-oriented material, to a PR (Public Relations) platform.

  To realize our mission, we are also striving to create business that goes beyond "PR TIMES." Beginning this fiscal year, we changed the key indicators from number of users to number of paying user companies for "Jooto," our task and project management tool, and from number of accounts to number of paying accounts for "Tayori," our cloud-based information organization tool, and worked to expand usage and improve service. As a result, the number of paying user companies for "Jooto" rose 22.1% year on year to 1,765 and the number of paying accounts for "Tayori" rose 43.1% to 661. Although both services grew according to plan, their effect on net sales was limited, and we continue to be in the investment phase.

  As a result, for the fiscal year ended under review, the Company posted net sales of ¥4,854,526 thousand, operating profit of ¥1,834,036 thousand, ordinary profit of ¥1,833,592 thousand and profit attributable to owners of parent of ¥1,281,285 thousand. A comparison against the consolidated financial statements for the previous fiscal year has not been performed because the Group began preparing consolidated financial statements from the fiscal year under review.

  Note that statement of operating results by segment is omitted because the Group has a single reportable segment, the Press Release Distribution Business.

• (ii) Outlook for the next fiscal year

  Although the quasi-state of emergency in Japan ended on March 21, 2022, the outlook for the containment of COVID-19 remains uncertain. In addition, the Group is unable to contribute directly to resolving the social and economic impacts from the geopolitical risks surrounding the situation in Ukraine. However, with "PR TIMES," an information platform that connects companies with consumers and the media, we believe we can play an important social role. For instance, at a time when further digitalization and the expanded use of the Internet are expected for all work in all industries, "Jooto" and "Tayori" can contribute to improving teamwork and enhancing work productivity as cloud tools for business that can be used for free.

  In this environment, in order to achieve Milestone 2025, the medium-term management target ending in fiscal 2025 announced on April 13, 2021, the Group is making the maximum efforts currently possible, while continuing to take a medium-term perspective. The Group will invest aggressively in overseas expansion, marketing to encourage the use of PR TIMES by regional companies, and in systems to support the service infrastructure.

  Given these circumstances, the business results forecasts for the next fiscal year are net sales of ¥5,950 million, up 22.6% year on year, operating profit of ¥1,600 million, down 12.8% year on