Tsukuruba : Non-consolidated Financial Results for the Year Ended July 31, 2021

TSUKURUBA Inc.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Non-consolidated Financial Results

for the Year Ended July 31, 2021

[Japanese GAAP]

Company name: TSUKURUBA Inc.	September 13, 2021
Stock exchange listing: Tokyo
Code number: 2978
URL: https://tsukuruba.com/
Representative: Hiroki Murakami	Representative Director, CEO
Contact: Ryohei Koike	Director, CFO

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: October 28, 2021

Scheduled date of commencing dividend payments: -

Scheduled date of filing annual securities report: October 28, 2021

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Non-consolidated Financial Results for the Fiscal Year Ended July 31, 2021 (August 01, 2020 to July 31, 2021)

(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit			Ordinary profit			Net income
Fiscal year ended	Million yen		%	Million yen		%		Million yen		%		Million yen		%
July 31, 2021	1,624		(5.5)	(358)			-			(358)		-		(482)		-
July 31, 2020	1,718		13.4	(150)			-			(159)		-		(431)		-
	Basic earnings per		Diluted earnings per	Rate of return on		Ordinary profit to	Operating profit to
	share			share		equity			total assets ratio	net sales ratio
Fiscal year ended		Yen			Yen					%				%			%
July 31, 2021	(50.10)			-					(50.5)				(13.8)			(22.1)
July 31, 2020	(46.81)			-					(33.9)				(7.9)			(8.8)

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended July 31, 2021: Fiscal year ended July 31, 2020:

(2) Non-consolidated Financial Position

• - million
• - million

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
July 31, 2021	3,037		879	27.5	64.91
July 31, 2020	2,162		1,074	49.6	113.43
(Reference) Equity: As of	July 31, 2021:	¥	835 million
As of	July 31, 2020:	¥	1,073 million
(3) Non-consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
July 31, 2021	(437)		(105)	1,221	2,197
July 31, 2020	(78)		(526)	753	1,519

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										TSUKURUBA Inc.
2. Dividends
			Annual dividends			Total	Payout	Dividends
									to net
		1st	2nd		3rd				dividends	ratio
				Year-end	Total	assets
		quarter-end	quarter-end	quarter-end
Fiscal year ended		Yen	Yen		Yen		Yen	Yen	Million yen	%	%
July 31, 2020		-	0.00		-		0.00	0.00	-	-	-
July 31, 2021		-	0.00		-		0.00	0.00	-	-	-
Fiscal year ending
July 31, 2022		-	0.00		-		0.00	0.00		-
(Forecast)
(Note) Breakdown of the year-end dividend for the fiscal year ended July 31, 2021 :
Commemorative dividend	-	yen
Special dividend		-	yen

3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending July 31, 2022 (August 01, 2021 to July 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit		Ordinary profit		Net income		Basic earnings per
					share
	Million yen		%	Million yen		%	Million yen		%	Million yen		%	Yen
Full year	2,450		50.8	(890)		-	(911)		-	(911)		-	(93.04)

(Note) In FY2021, we intend to invest to maximize the value of the "cowcamo" business. In FY2021, we expect to grow the gross

merchandise volume of the platform in the cowcamo business and improve the take rate. As a result, we are forecasting net sales of

2,450 million yen (+50.8% year-on-year). As for profit and loss at each stage, we expect to post a loss due to upfront investment aimed

at building competitiveness of the platform over the medium to long term, including enhancement of services for sellers. Specifically,

we forecast an operating loss of 890 million yen, an ordinary loss of 911 million yen, and a net loss of 911 million yen. These profits

and losses include stock compensation expenses of 57 million yen. The above forecasts do not assume that COVID-19 will cause

another large-scale stagnation of economic activities. Actual results may differ from these forecasts due to various factors.

* Notes:

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

July 31, 2021:	10,126,900	shares
July 31, 2020:	9,799,700	shares
2) Total number of treasury shares at the end of the period:
July 31, 2021:	335,671	shares
July 31, 2020:	335,600	shares

3) Average number of shares during the period:
Fiscal Year ended July 31, 2021:	9,630,467	shares
Fiscal Year ended July 31, 2020:	9,223,821	shares

* These financial results are unaudited by certificated public accountants or audit firms.

*Explanation about appropriate usage of business forecasts and other special notes

The forecasts above are based on the judgments made in accordance with information currently available. Forecasts therefore include

risks and uncertainties. Actual figures may differ from these forecasts due to subsequent changes in the circumstances.

Annual financial results briefing session for institutional investors and analysts is planned to be held on September 13th , 2021. The

presentation materials for the session will be posted on TDnet (Company Announcements Disclosure Service) and the company's

website today.

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				TSUKURUBA Inc.
Non-consolidated Financial Statements
Non-consolidated Balance Sheets
				(Thousand yen)
			As of July 31,2020	As of July 31,2021
Assets
	Current assets
		Cash and deposits	1,613,625	2,243,310
		Accounts receivable - trade	20,847	30,845
		Real estate for sale	-	319,106
		Work in process	3,161	176
		Advance payments to suppliers	-	11,448
		Prepaid expenses	17,102	26,272
		Other	5,652	15,722
		Allowance for doubtful accounts	(300)	-
		Total current assets	1,660,089	2,646,884
	Non-current assets
		Property, plant and equipment
		Buildings, net	195,908	157,624
		Structures, net	1,659	1,538
		Tools, furniture and fixtures, net	22,096	24,509
		Land	161,215	99,923
		Total property, plant and equipment	380,880	283,595
		Investments and other assets
		Investment securities	15,150	2,754
		Shares of subsidiaries and associates	2,000	2,000
		Leasehold and guarantee deposits	101,916	95,391
		Long-term prepaid expenses	2,315	7,234
		Other	20	20
		Total investments and other assets	121,401	107,400
		Total non-current assets	502,281	390,996
	Total assets	2,162,370	3,037,880

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				TSUKURUBA Inc.
				(Thousand yen)
			As of July 31,2020	As of July 31,2021
Liabilities
	Current liabilities
		Current portion of bonds payable	40,000	80,000
		Current portion of long-term borrowings	115,407	111,193
		Accounts payable - other	83,371	118,962
		Accrued expenses	30,495	54,178
		Income taxes payable	7,788	690
		Accrued consumption taxes	5,770	20,148
		Advances received	4,950	4,500
		Deposits received	8,938	32,597
		Unearned revenue	8,845	8,190
		Total current liabilities	305,565	430,460
	Non-current liabilities
		Bonds payable	160,000	260,000
		Long-term borrowings	602,799	746,549
		Convertible-bond-type bonds with share	-	700,000
		acquisition rights
		Other	19,198	21,077
		Total non-current liabilities	781,997	1,727,626
	Total liabilities	1,087,562	2,158,087
Net assets
	Shareholders' equity
		Share capital	610,183	30,632
		Deposits for subscriptions of shares	-	200,000
		Capital surplus
		Legal capital surplus	866,458	30,632
		Other capital surplus	456,319	1,119,283
		Total capital surplus	1,322,777	1,149,915
		Retained earnings
		Other retained earnings
		Retained earnings brought forward	(797,006)	(482,465)
		Total retained earnings	(797,006)	(482,465)
		Treasury shares	(62,421)	(62,486)
		Total shareholders' equity	1,073,531	835,596
	Share acquisition rights	1,276	44,197
	Total net assets	1,074,807	879,793
Total liabilities and net assets	2,162,370	3,037,880

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		TSUKURUBA Inc.
Non-consolidated Statements of Income
		(Thousand yen)
	For the fiscal year	For the fiscal year
	ended July 31,2020	ended July 31,2021
Net sales	1,718,876	1,624,420
Cost of sales	524,855	359,867
Gross profit	1,194,020	1,264,553
Selling, general and administrative expenses	1,344,525	1,623,274
Operating loss	(150,504)	(358,720)
Non-operating income
Interest income	688	21
Dividend income	2	0
Subsidy income	-	22,516
Compensation income	2,860	-
Other	712	819
Total non-operating income	4,262	23,356
Non-operating expenses
Interest expenses	2,759	7,305
Interest on bonds	226	4,179
Bond issuance costs	8,237	10,017
Commission expenses	1,610	1,064
Other	168	385
Total non-operating expenses	13,002	22,952
Ordinary loss	(159,244)	(358,316)
Extraordinary income
Gain on reversal of share acquisition rights	-	1,276
Gain on sale of non-current assets	-	961
Gain on reversal of asset retirement obligations	-	1,895
Total extraordinary income	-	4,133
Extraordinary losses
Loss on liquidation of investments	9,951	3,028
Loss on valuation of investment securities	5,920	12,395
Impairment losses	244,456	103,636
Office transfer related expenses	-	8,531
Total extraordinary losses	260,327	127,592
Loss before income taxes	(419,572)	(481,775)
Income taxes - current	2,701	690
Income taxes - deferred	9,466	-
Total income taxes	12,168	690
Loss	(431,740)	(482,465)

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