PR TIMES : Summary of Non-Consolidated Financial Results for the Year Ended February 28, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results

for the Year Ended February 28, 2021

(Based on Japanese GAAP)

April 13, 2021

Company name:

PR TIMES, Inc.

Stock exchange listing:

Tokyo

Stock code:

3922

URL

https://prtimes.co.jp/

Representative:

President and CEO

TAKUMI YAMAGUCHI

Inquiries:

Director

AKIHIRO MISHIMA

TEL [phone]

Scheduled date of ordinary general meeting of shareholders:

May 26, 2021

Scheduled date to file Securities Report:

May 26, 2021

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)

1. Non-consolidated financial results for the year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)

(1) Non-consolidated operating results

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit

Millions of yen

%

Millions of yen

%

Millions of yen

% Millions of yen

%

Year ended February 28, 2021

3,765

30.6

1,301

156.5

1,299

156.2

1,043

280.0

Year ended February 29, 2020

2,884

27.9

507

12.2

507

18.6

274

(13.2)

Earnings per share

Diluted earnings per

Profit/equity

Ordinary profit/total

Operating profit/net

share

assets

sales

Yen

Yen

%

%

%

Year ended February 28, 2021

80.01

76.60

52.7

47.2

34.6

Year ended February 29, 2020

20.71

20.60

17.1

24.4

17.6

Reference: Equity in earnings (losses) of affiliates: Year ended February 28, 2021

-

million

Year ended February 29, 2020

-

million

Note: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. Basic 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
	Millions of yen	Millions of yen	%	Yen
As of February 28, 2021	3,457	2,484	71.8	190.63
As of February 29, 2020	2,046	1,472	72.0	112.93
Reference: Equity	As of February 28, 2021	¥2,484	million
	As of February 29, 2020	¥1,472	million

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

(3) Non-consolidated cash flows	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended February 28, 2021	1,408	(166)	(48)	2,531
Year ended February 29, 2020	-	-	-	-

Note: The Company has been disclosing consolidated financial results up until the fiscal year ended February 29, 2020. However, from the fiscal year ended February 28, 2021, the Company has disclosed financial results on a non-consolidated basis. Accordingly, the Company is not stating its cash flow positions for the fiscal year ended February 29, 2020.

2. Cash dividends

		Annual dividends per share		Total cash	Dividend payout	Ratio of dividends
						ratio (Non-	to net assets (Non-
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	dividends (Total)	consolidated)	consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended February 29, 2020	-	0.00	-	0.00	0.00	-	-	-
Year ended February 28, 2021	-	0.00	-	0.00	0.00	-	-	-
Year ending February 28, 2022	-	0.00	-	0.00	0.00		-
(Forecast)

3. Forecast of non-consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
Six months ending	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
2,216	-	803		-	802		-	556		-	42.70
August 31, 2021
Full year	4,715	-	1,750		-	1,748		-	1,212		-	93.02

Note: The Company will change to disclosing financial results forecasts on a consolidated basis as it plans to transition to consolidated financial reporting from the period ending February 28, 2022. The Company is not stating year-on-year comparisons for annual or quarterly results as there is no fiscal year based on consolidated accounting with which to compare.

4. Notes

(1) 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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(2) Number of issued shares (common shares)

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

	As of February 28, 2021	13,457,200	shares	As of February 29, 2020	13,457,200	shares
Number of treasury shares at the end of the period
	As of February 28, 2021	424,931	shares	As of February 29, 2020	416,636	shares
Average number of shares during the period
	Year ended February 28, 2021	13,040,131	shares	Year ended February 29, 2020	13,259,552	shares

Note: The Company conducted a 2-for-1 share split of its common shares on August 5, 2020. 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 of common stock outstanding during the period have been calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

• 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 Tuesday, April 13, 2021, 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 securities analysts on the same day.

		PR TIMES, Inc. (3922)
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. Non-consolidated financial statements .....................................................................................................	6
(1)	Non-consolidated balance sheets........................................................................................................	6
(2)	Non-consolidated statements of income.............................................................................................	8
(3)	Non-consolidated statements of changes in equity.............................................................................	9
(4)	Non-consolidated statements of cash flows......................................................................................	11
(5)	Notes to non-consolidated financial statements ...............................................................................	12
	Notes on premise of going concern ..................................................................................................	12
	Equity in earnings (losses) of affiliates if equity method is applied.................................................	12
	Segment information ........................................................................................................................	12
	Per share information .......................................................................................................................	12
	Significant events after reporting period ..........................................................................................	13

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PR TIMES, Inc. (3922)

1. Overview of operating results, etc.

1. Overview of operating results for the fiscal year under review
2. 1. Operating results during the fiscal year under review
      In the fiscal year under review (March 1, 2020 to February 28, 2021) PR TIMES, Inc. (the "Company"), while continuing efforts to strengthen the core structure for the press release distribution service "PR TIMES," made its best efforts to deliver accurate and valuable information to consumers as an information platform for company announcements, in spite of the unprecedented situation of the spread of the novel coronavirus disease (COVID-19). During the initial period of the spread of COVID-19, the opportunities for using PR TIMES press releases declined and the growth rate of the number of press releases weakened. However, press releases on content related to the cause of COVID-19 infection, such as "masks" and "disinfectant" were widely read, and the number of site views for May 2020 was the highest recorded at 52.21 million page views. On May 25, 2020, the date of lifting of the first state of emergency, the growth rate for the number of press releases returned to pre-COVID-19 levels. The number of press releases in December was the highest recorded at 21,838 news releases for the month. By the end of February 2021, the number of companies using our service had reached 50,633 companies (an increase of 13,916 companies year on year), and 44.7% of listed companies in Japan were using our services. The number of media users, which is also maintaining a strong growth rate, was 20,307 users. Along with the increases for both the distribution side and the receiving side led to an enormous response in terms of network effect. This caused "PR TIMES" to evolve from an information distribution service for press releases, containing media-oriented material, to a PR (Public Relations) platform.
      Moreover, for the Company's new businesses, "Web Clipping," our service for measuring the effect of publicity activities and PR, reached 12,368 users, "Jooto," our task management tool, reached 262,694 users, and "Tayori," our customer support service, reached 42,251 user accounts. In regard to "Jooto," we started TV commercials from January 2021, and since February we have been actively investing in broadcasting commercials in Taxis. In the case of all of these new services, although we are achieving growth in user numbers and account numbers, the number of recipients of paid services is very low, and these new services continue to be in the investment phase.
      As a result, for the fiscal year under review, the Company posted net sales of ¥3,765,954 thousand (up 30.6% year on year), operating profit of ¥1,301,329 thousand (up 156.5% year on year), ordinary profit of ¥1,299,420 thousand (up 156.2% year on year) and profit of ¥1,043,392 thousand (up 280.0% year on year).
      With these results, the Company achieved the targets of 50,000 companies using "PR TIMES" and operating profit of ¥1,000,000 thousand set forth in the medium-term management plan for FY2020 announced on July 13, 2016.
      Note that the Company has a single segment consisting of the Press Release Distribution Business, and statement of operating results by segment has been omitted.
   2. Outlook for the next fiscal year
      The Company does not know when the waves of COVID-19 infection that are occurring again and again will come to an end, and it is not in a position to directly contribute to resolving the situation. However, through providing "PR TIMES," an information platform that connects companies with the media and consumers, we believe we can play an important social role. Moreover, at a time when remote work practices are being promoted across society, "Jooto" and "Tayori" can contribute to improving teamwork and enhancing work productivity as cloud tools for business that can be used even for free. In this current environment where activity that relies on people's ability to move about and connect with people has been limited due to measures against COVID-19, we are witnessing digitalization and the expanded use of the Internet for all work in all industries. We expect that such changes to the social environment will continue to progress even after COVID-19 ends.

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PR TIMES, Inc. (3922)

The Company has today announced "Milestone 2025," our new medium-term management targets, for which FY2025 has been set as the final year. While constantly maintaining a medium-term perspective, we will strive to do the best we can do at this point in time.

In our calculations for the earnings forecasts for the next fiscal year, while we do not expect the Company to be significantly impacted depending on the timing of when COVID-19 will come to an end, we have assumed that economic activity will not slow further, and are forecasting net sales of ¥4,715 million, operating profit of ¥1,750 million, ordinary profit of ¥1,748 million and profit attributable to owners of parent of ¥1,212 million. In addition, we are considering relocating our head office in the next fiscal year, and in our calculations, we have accounted for what we expect at this current point in time.

Note. The Company plans to change to disclosing financial results on a consolidated basis for the fiscal year ending February 28, 2022. The Company is not stating year-on-year comparisons as there is no such consolidated accounting data for year-on-year comparison.

1. Overview of financial position for the fiscal year under review
2. 1. Assets, liabilities, and net assets

Assets

Total assets at the end of the fiscal year under review were ¥3,457,974 thousand, an increase of ¥1,411,359 thousand from the end of the previous fiscal year.

Current assets at the end of the fiscal year under review were ¥3,051,215 thousand, an increase of

¥1,377,980 thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥1,399,162 thousand in cash and deposits, despite a decrease of ¥29,694 thousand in accounts receivable - trade. Non-current assets at the end of the fiscal year under review were ¥406,759 thousand, an increase of ¥33,378 thousand from the end of the previous fiscal year. This was primarily due to increases of ¥11,568 thousand in intangible assets and ¥14,938 thousand in investments and other assets.

Liabilities

Total liabilities at the end of the fiscal year under review were ¥973,469 thousand, an increase of ¥399,731 thousand from the end of the previous fiscal year.

Current liabilities at the end of the fiscal year under review were ¥968,112 thousand, an increase of ¥400,086 thousand from the end of the previous fiscal year. This was primarily due to increases of ¥214,879 thousand in income taxes payable and ¥72,136 in other. Non-current liabilities at the end of the fiscal year under review were ¥5,357 thousand, a decrease of ¥355 thousand from the end of the previous fiscal year.

Net assets

Total net assets at the end of the fiscal year under review were ¥2,484,504 thousand, an increase of

¥1,011,628 thousand from the end of the previous fiscal year. This was primarily due to an increase in retained earnings resulting from the recording of ¥1,043,392 thousand in profit.

1. Cash flows
   Year-on-year comparison and analysis are not performed as the Company began preparing non- consolidated statements of cash flows from the fiscal year under review, while the Company had been preparing consolidated statements of cash flows up until the previous fiscal year.
   Cash and cash equivalents ("cash") for the fiscal year ended February 28, 2021, totaled ¥2,531,595 thousand. The respective cash flow positions and the factors thereof in the fiscal year under review are as follows.

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