DISCLAIMER: This document was prepared using our machine translation, and no manual modification has been made to thetranslated 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 thisdocument are unaudited.

Consolidated Financial Results for the Third Quarter of the Fiscal YearEnding February 29, 2024 (Japanese GAAP)
January 12, 2024
Company name

Listing Market TSE

MetaReal Corp.

Stock Code6182

URL https://www.metareal.jp

Representative(Title)Representative Director and CEO(Title)Director, General Manager of Group(Name) Taketo Arakawa
Administration Division

Contact(Name) Junichi Goishi
TEL 03-6685-9570

Scheduled date of filing ofJanuary 12, 2024
Scheduled date of commencement of dividend payment
quarterly report:
Preparation of supplementary materials for quarterly financial results: Yes-

Holding of quarterly financial results briefings: Yes(Figures are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 29, 2024 (March 1, 2023 to November 30,
2023)(1) Consolidated Results of Operation (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Ordinary income% Millions of yen
%
590
59.9
△2.3
5.9
369
154.0
367Millions of yen (135.9%)

Millions of yen

Q3 FY2/24
Q3 FY2/23(Note) Comprehensive income

Operating income

3,178
3,254
Q3 FY2/24

%
620
56.1
397
137.0
Q3 FY2/23

Millions of yen

Net income per share

Diluted net income per share

Q3 FY2/24

Yen
34.34

Yen
33.84

Q3 FY2/23

14.60

14.37

Net income attributableto owners of parent
Millions of yen
%
367
135.9
155
155Millions of yen (-%)

(2) Consolidated Financial Position
Total assets
Q3 FY2/24
FY2/23(Reference) Shareholders' equity

Q3 FY2/24

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen

4,476
4,220

1,514
1,133

1,473Millions of yen

FY2/23%32.9
25.9
1,092Millions of yen

2. Dividend payment
Annual dividend per share
End of Q1
Yen-

End of Q2
Yen
0.00
0.00

FY2/23
FY2/24
FY2/24 (Forecast)(Note) Revisions to the most recently announced dividend forecast: None

End of Q3

Year-end
Yen
-

Total
Yen
0.00

Yen
0.00

0.00

0.00

3. Consolidated Business Forecasts for the Fiscal Year Ending February 29, 2024 (March 1, 2023 to February 29, 2024)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income attributable toowners of parent

Net income per
share% Millions of yen% Millions of yen% Millions of yen
%
Yen
4,307
0.3
737
43.1
Full year(Note) 1. Revisions to the most recently announced business forecasts: Yes
2. For details on revisions to the consolidated business forecasts, please refer to the [Notice Regarding Revisions to theConsolidated Business Forecasts] announced on January 12, 2024.
3. Regarding [Ordinary income], [Net income attributable to owners of the parent] and [Net income per share] in theMillions of yen

consolidated business forecasts for the fiscal year ending February 29, 2024, although uncertainties in financial plans suchas fund-raising in terms of both liabilities and equity due to Metareal AI of new businesses have been mitigated, they
include items with high forecasting difficulties such as non-operating income (loss) and extraordinary income (loss), andtherefore they are not disclosed at this time. We plan to disclose specific figures promptly once we are able to make moreaccurate projections.

◆Consolidated Business Forecasts by Segment(Percentages indicate year-on-year changes.)
Net sales
Full year

Millions of yen

AI businessHT business
Metaverse business

Operating income
Millions of yen

3,152

%
8.3

823

%
30.5

1,151

△16.0

160

△39.8

3

△66.7

△231

-

△14
Other corporate expenses(Note) 1. Since the second quarter of the fiscal year ending February 29, 2024, the name of the reportable segment that had been the[MT business] has changed to the [AI business].
Previously, the segment centered on AI translation was called the [MT business]. However, as for our future corporate
strategy and current situation, we are looking at a broader range of AI services, including [generative AI], and we havechanged the name to the [AI business] to represent the actual situation more appropriately.
This is only a name change, and we have not revised the numerical classification. [Metareal AI], which had been included
2.

in the MT business until the first quarter of the consolidated fiscal year under review, is also included in the [AI business].
For details of revisions to the consolidated business forecasts by segment, please refer to the [Notice Regarding Revisions
to Consolidated Business Forecasts] announced on January 12, 2024.

※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(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 7 of the Appendix.
(3) Changes in accounting policies, changes in accounting estimates and restatements① Changes in accounting policies due to revisions of accounting standards, etc.: None
② Changes in accounting policies other than ①: None
③ Changes in accounting estimates: Yes④ Restatements: None
(Note) For details, please refer to [2.Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial
Statements (Changes in Accounting Estimates)] on page 7 of the Appendix.
(4) Number of shares outstanding (common stock)① Number of shares outstanding at the end of
the period (including treasury stock)

Q3 FY2/24

10,768,460shares

FY2/23

10,688,460shares② Treasury shares at the end of the year

Q3 FY2/24

468shares

FY2/23468shares③ Average number of shares outstanding during
Q3 FY2/24
the period (cumulative)

10,714,930shares

Q3 FY2/23

10,682,490shares※ 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 of future performance and other forward-looking statements in this document 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
makes no promises concerning their achievement. 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.

○ Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results………………………………………………………………………

2(1) Results of Operations ……………………………………………………………………………………………………

2(2) 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 ………………………………………………………………………………………

6(3) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………

7(Notes on Going Concern Assumptions) ………………………………………………………………………………

7(Notes on Significant Changes in Shareholders' Equity) ………………………………………………………………

7(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)

7(Changes in Accounting Estimates) ……………………………………………………………………………………

7(Additional Information) ………………………………………………………………………………………………

7(Notes to the Quarterly Consolidated Statements of Income) …………………………………………………………

7(Segment Information) …………………………………………………………………………………………………

8(Per share Information) …………………………………………………………………………………………………

10(Significant Subsequent Events) ………………………………………………………………………………………

11

- 1 -

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the third quarter of the consolidated fiscal year under review (March 1 to November 30, 2023), orders received, sales,
and operating income in the AI business hit record highs. In the HT business segment, income compared to the same period of
the previous fiscal year decreased, but the amount of loss incurred in the Metaverse business decreased.
As a result, our group posted net sales of 3,178,585 thousand yen (down 2.3% year on year), operating income of 590,631
thousand yen (up 59.9% year on year), ordinary income of 620,941 thousand yen (up 56.1% year on year), and profit attributableto owners of parent of 367,922 thousand yen (up 135.9% year on year) for the cumulative third quarter of the current fiscal year.
Excluding the Metaverse business, sales were 3,176,020 thousand yen (down 2.1% year on year) and operating income was
777,469 thousand yen (up 9.8% year on year).
The performance of each business segment is as follows:
Since the second quarter of the consolidated fiscal year under review, the name of the reportable segment that had been the[MT business] has changed to the [AI business]. This change had no impact on segment information.
① AI business
As for the AI business, activities for orders received were firm, at 2,389,780 thousand yen (up 14.2% year on year). Sales were2,322,698 thousand yen (up 6.0% year on year) due to the impact of consigned projects etc., and segment income was 669,667
thousand yen (up 40.9% year on year), including the impact of upfront investment for the new business [Metareal AI]. As for the[Metareal AI] project, which was developed and provided in this fiscal year as a growth measure in the short to medium term,
we have begun proposing and operating various solutions using generative AI, mainly for major customers, with the aim ofcontributing to results at an early stage.
② HT business
As for the HT business, sales were 853,322 thousand yen (down 19.1% year on year), and segment income was 117,627
thousand yen (down 45.2% year on year).
③ Metaverse businessMedium-to-short-term growth measures were shifted to the [Metareal AI] project. The Metaverse business reduced investment
from a long-term perspective by 10±5 years. As a result, sales were 2,564 thousand yen (down 72.4% year on year), and segment
loss was 186,837 thousand yen (segment loss of 338,856 thousand yen in the same period of the previous fiscal year).
(2) Financial Position(Assets)
Current assets increased by 448,190 thousand yen from the end of the previous consolidated fiscal year to 3,421,467 thousand
yen at the end of the third quarter of the consolidated fiscal year under review. This was due mainly to an increase of 403,142
thousand yen in cash and deposits, a decrease of 27,233 thousand yen in notes, accounts receivable and contract assets, and adecrease of 26,634 thousand yen in the allowance for doubtful accounts. Non-current assets decreased by 192,883 thousand yen
from the end of the previous fiscal year to 1,054,549 thousand yen. This was due mainly to a decrease of 183,015 thousand yen
in intangible assets and a decrease of 42,886 thousand yen in property, plant and equipment.
(Liabilities)
Current liabilities increased by 68,718 thousand yen from the end of the previous consolidated fiscal year to 2,058,210
thousand yen at the end of the third quarter of the consolidated fiscal year under review. This was due mainly to a decrease of
100,000 thousand yen in short-term loans payable, an increase of 99,144 thousand yen in income taxes payable, and an increaseof 37,800 thousand yen in provision for bonuses. Non-current liabilities decreased by 194,431 thousand yen from the end of theprevious fiscal year to 903,467 thousand yen. This was due mainly to a decrease of 181,985 thousand yen in long-term debt andan increase of 8,000 thousand yen in bonds.
(Net assets)
Net assets increased by 381,020 thousand yen from the end of the previous consolidated fiscal year to 1,514,339 thousand yen
at the end of the third quarter of the consolidated fiscal year under review. This was due mainly to an increase of 367,922 thousand
yen in retained earnings as a result of recording profit attributable to owners of the parent.

- 2 -(3) Consolidated Business Forecasts
Our two management themes for the future are:
① [Metaverser] concept in the Metaverse business and its method [Metaverse×AI]
As a long-term growth strategy aiming to achieve results in five years or longer, the Metaverse business will focus on the
Metaverser initiative and Metaverse×AI as a means of implementing it.
② AI-related business including [Metareal AI] project
We will continue to aim for stable growth in the AI business, which provides services such as [T-4OO] [T-3MT] for AI technicaldocument translation and [Onyaku] for speech AI translation.
The [Metareal AI] project, which was launched in this fiscal year, will expand the target market from translation to document
generation in general by utilizing various generative AI technologies, including GPTs, in the field of specialized documents,
which is our strength. We will contribute to customer growth by providing mainly specialized document AI specializing in
problem-solving specific to individual industries, government agencies, and individual companies, and by providing
overwhelming work efficiency and support for the creation of new services.
We aim to grow by 5% to 20% through the AI business, including the [Metareal AI] project.

- 3 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2023)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable and contract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term loans payable
Current portion of corporate bonds
Income taxes payable
Provision for bonuses
Advances received
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term debt
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets- 4 -Current third quarter(November 30, 2023)

2,523,695
280,313
16,075
195,242△42,051
2,973,276

2,926,838
253,080
14,973241,991△15,416
3,421,467

117,936

75,0496,709
647,051572
16,752
671,086

1,677
467,329
7,281
11,782
488,071

86,071
372,338
458,4091,247,433
4,220,709

141,277
350,151
491,429
1,054,549
4,476,017

74,270100,000
385,980
134,000
28,91344,860859,439
362,028
1,989,491

77,579415,980
164,000
128,057
82,661
882,640
307,291
2,058,210

388,000
669,550
40,349
1,097,899
3,087,391

396,000
487,565
19,902
903,467
2,961,677

786,021
1,759,968△1,452,866△951
1,092,171

792,541
1,766,488△1,084,944△951
1,473,134

41,146
1,133,318
4,220,709

58
58
41,146
1,514,339
4,476,017

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the Nine-month Period)(Thousands of yen)Previous third quarter(From March 1, 2022 toNovember 30, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Research and development expenses
Provision for bonuses
Retirement benefit expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gain
Subsidy income
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of investments accounted for using equity
methodBond issuance expenses
Other
Total non-operating expenses
Ordinary income
Special income
Income on sales of non-current assets
Total special income
Special loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on valuation of investment securities
Total special loss
Income before income taxes
Income taxes
Net income
Net income attributable to owners of parent- 5 -Current third quarter(From March 1, 2023 toNovember 30, 2023)

3,254,879
1,153,946
2,100,932

3,178,585
1,020,829
2,157,755

560,851
220,388
34,4905,281
910,467
1,731,480
369,452

530,909103,173
30,0695,298
897,673
1,567,123
590,63140
693
15,181
44,191
1,447
61,554

43
624
3,770
50,8482,036
57,323

10,042

7,866

14,10914,5496,624
2,393
33,169397,836

3,088
1,509
27,013620,941

-

831
831

2,435
67,64170,076
327,759
171,779
155,980
155,980

2,826
2,826
618,947
251,024
367,922367,922

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)(Thousands of yen)Previous third quarter(From March 1, 2022 toNovember 30, 2022)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests- 6 -Current third quarter(From March 1, 2023 toNovember 30, 2023)

155,980

367,922

155,98058
58
367,980

155,980-

367,980-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
Not applicable.
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)
Income taxes are calculated by estimating a reasonable effective tax rate after tax-effect accounting for the consolidated
fiscal year including the third quarter under review and multiplying it by the quarterly income before taxes.
However, if the calculation of tax expenses using the estimated effective tax rate yields a highly unreasonable result, then thestatutory tax rate is used.
(Changes in Accounting Estimates)(Changes in Estimates to Record Consigned Development Revenue)
We record revenue for consigned development based on the nature of each consigned development. If the entire consigned
project is long-term and although the progress made in satisfying performance obligations cannot be reasonably estimated,recovering the costs incurred in satisfying the performance obligations is expected under [ASBJ Statement No. 29, Paragraph
45 of the Accounting Standard for Revenue Recognition] on the project with complex contractual relationship, we conduct
treatment based on the cost recovery standard.
The application of the same paragraph is only under circumstances where it is difficult to reasonably estimate the degree ofprogress made in satisfaction of the performance obligations, and during the third quarter of the consolidated fiscal year underreview, we have changed estimates for cases where the degree of progress has been able to be reasonably estimated inaccordance with the progress of the project itself and the establishment of various contract terms, and have changed fromtreatment under the cost recovery method to the input method based on total cost. The difference between the cost and theprevious estimate is recorded in net sales.
As a result, gross profit, operating income, ordinary income, and income before income taxes for the third quarter of theconsolidated fiscal year under review have each increased by 120,735 thousand yen compared to the previous method.
The impact of this change on segment information is described under [Segment Information].
(Additional Information)(Handling of Accounting and Disclosure for Application of the Group Comprehensive Accounting System)
We, and some of our domestic consolidated subsidiaries, have shifted from the consolidated tax payment system to the groupwide system since the first quarter of the consolidated fiscal year under review. Accordingly, accounting and disclosure of income
taxes, local income taxes, and tax-effect accounting are handled in accordance with [Accounting and Disclosure for Applicationof the Group Comprehensive Accounting System] (PITF No. 42, August 12, 2021. Hereinafter [Practical Issues Task Force No.
42]). In addition, in accordance with Paragraph 32(1) of the Practical Issues Task Force No. 42, we do not deem the impact ofchanges in accounting policies due to the application of Practical Issues Task Force No. 42.
(Notes to the Quarterly Consolidated Statements of Income)(1) Impairment loss
Previous third quarter (from March 1, 2022 to November 30, 2022)
Not applicable.
Current third quarter (from March 1, 2023 to November 30, 2023)
This information is omitted because it is not material.

- 7 -(2) Loss on valuation of investment securities
Previous third quarter (from March 1, 2022 to November 30, 2022)
We have determined that the real value of the following holdings of investment securities (stocks with no market prices etc.)
has declined significantly. Accordingly, we have recorded the difference in valuation under extraordinary losses, as losses on
valuation of investment securities.
(Thousands of yen)
Loss on valuation of investment

Investment securities

securities

Synamon Inc.

7,525

VoiceApp, Inc.

60,116

Current third quarter (from March 1, 2023 to November 30, 2023)
Not applicable.
(Segment Information)[Segment Information]
Ⅰ Previous third quarter (from March 1, 2022 to November 30, 2022)
Information on net sales and income or loss by reportable segment and breakdown of income(Thousands of yen)

Adjustment
Note 1:

Amounts on the
consolidated
financialstatements
Note 2

Reportable Segments
AI business

Metaverse
business

HT businessTotal

By type of goods or services
Machine translation
Human translation

2,140,904
25,03824,1451,030,033-

2,165,049
1,055,071-

2,165,049
1,055,071

25,473

-

9,285
-

9,285
25,473-

9,285
25,473

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

184,004

950,858

6,533

1,141,396-

1,141,396

2,007,411

103,319

2,751

2,113,482-

2,113,482

Revenue from contracts
with customers

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

Net sales to unaffiliatedcustomers

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

4,550

34,775-39,326△39,326-

Total

2,195,966

1,088,953

9,285

3,294,205△39,326

3,254,879

Segment income or loss (△)

475,150

214,803△338,856

351,098

18,353

369,452

Metaverse
Consigned development
Revenue from contracts withcustomers
Revenue recognition by period
Goods or services that aretransferred at one time
Goods or services that aretransferred over a period oftime

Intersegment sales ortransfer(Note) 1.

2.

Adjustments to segment income or loss (△) of 18,353 thousand yen include elimination of intersegment transactions andcorporate expenses. Corporate expenses mainly consist of expenses related to the administrative departments of the parent
company that are not attributable to reportable segments.
Segment income or loss (△) is adjusted with operating income in the quarterly consolidated statements of income.

- 8 -Ⅱ Current third quarter (from March 1, 2023 to November 30, 2023)
1. Information on net sales and income or loss by reportable segment and breakdown of income(Thousands of yen)
Reportable Segments
AI business(Note 3,4)

Metaverse
business

HT business

Total

Amounts on the
consolidated
Adjustment
financial
Note 1:statements
Note 2By type of goods or services
Machine translation
Human translation

2,110,601
38,126

23,585
829,736-

2,134,187
867,863-

2,134,187
867,863

173,970

-

2,564
-

2,564
173,970-

2,564
173,970

2,322,698

853,3222,564

3,178,585-

3,178,585

237,344

747,584

1,183

986,112-986,1122,085,354

105,737

1,380

2,192,472-

2,192,472

Revenue from contracts
with customers

2,322,698

853,3222,564

3,178,585-

3,178,585

Net sales to unaffiliatedcustomers

2,322,698

853,3222,564

3,178,585-

3,178,585

4,346

35,556

9,224

49,127△49,127-

Total

2,327,045

888,878

11,7883,227,712△49,127

3,178,585

Segment income or loss (△)

669,667

117,627△186,837

600,457△9,825590,631

Metaverse
Consigned development
Revenue from contracts withcustomers
Revenue recognition by period
Goods or services that aretransferred at one time
Goods or services that aretransferred over a period oftime

Intersegment sales ortransfer(Note) 1.

2.

Adjustments to segment income or loss (△) of △9,825 thousand yen include elimination of intersegment transactions andcorporate expenses. Corporate expenses mainly consist of expenses related to the administrative departments of the parent
company that are not attributable to reportable segments.
Segment income or loss (△) is adjusted with operating income in the quarterly consolidated statements of income.

3.

Sales related to generative AI are included in [Machine translation] for platform-type sales, and sales related to consigned
development are included in [Consigned development].

4.

As described under [Changes in Accounting Estimates], we record revenue in the recording of consigned development
based on the nature of each consigned development. If the entire consigned project is long-term and although the progress
made in satisfying performance obligations cannot be reasonably estimated, recovering the costs incurred in satisfying theperformance obligations is expected under [ASBJ Statement No. 29, Paragraph 45 of the Accounting Standard for
Revenue Recognition] on the project with complex contractual relationship, we conduct treatment based on the cost
recovery standard.
The application of the same paragraph is only under circumstances where it is difficult to reasonably estimate thedegree of progress made in satisfaction of the performance obligations, and during the third quarter of the consolidated
fiscal year under review, we have changed estimates for cases where the degree of progress has been able to be reasonably
estimated in accordance with the progress of the project itself and the establishment of various contract terms, and havechanged from treatment under the cost recovery method to the input method based on total cost. The difference between
the cost and the previous estimate is recorded in net sales.
As a result, gross profit, operating income, ordinary income, and income before income taxes for the third quarter of theconsolidated fiscal year under review have each increased by 120,735 thousand yen compared to the previous method.
2. Information on impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)
This information is omitted because it is not material.

- 9 -3. Changes in reportable segments(Change of Segment Name)
Since the second quarter of the consolidated fiscal year under review, the name of the reportable segment that had
been the [MT business] has changed to the [AI business]. This change was made to the segment name only. There was
no impact on segment information. Segment information for the third quarter of the previous consolidated fiscal year
also is presented under the new name.
(Per share Information)
Net income per share and the basis for calculating it, and diluted net income per share and the basis for calculating it are as
follows.
Previous third quarter(From March 1, 2022 to November
30, 2022)(1) Net income per share

Current third quarter(From March 1, 2023 toNovember 30, 2023)

14.60 yen34.34 yen

155,980

367,922--

155,980

367,922

10,682,490

10,714,930

14.37 yen

33.84 yen--

175,751

155,997(Basis of calculation)
Net income attributable to owners of parent (thousandsof yen)Amount not attributable to common shareholders(thousands of yen)
Net income attributable to owners of parent related tocommon stock (thousands of yen)
Average number of shares of common stock
outstanding during the period (shares)(2) Diluted net income per share(Basis of calculation)
Adjustment to net income attributable to owners ofparent(thousands of yen)
Increase in number of common shares (shares)
Outline of potential shares that had not been included in
the calculation of diluted net income per share because
they had no dilutive effect, and that had changed-

significantly since the end of the previous fiscal year

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(Significant Subsequent Events)(Merger of Consolidated Subsidiaries)
At the meeting of the Board of Directors held on October 23, 2023, we resolved to conduct an absorption-type merger ofTravel DX Corporation by MATRIX Corporation, our consolidated subsidiary, and conducted an absorption-type merger on
December 1, 2023.
1. Summary of transactions(1) Name and business of the companies subject to business combination① Surviving company
Company name: MATRIX Corporation
Business description: VR business② Absorbed company
Company name: Travel DX Corporation
Business description: Virtual travel business(2) Effective date of the business combination
December 1, 2023
(3) Legal form of the business combination
Absorption-type merger in which MATRIX Corporation is the surviving company and Travel DX Corporation is theabsorbed company(4) Company name following the business combination
MATRIX Corporation(5) Other matters related to the outline of the transaction
Aim of the business combination is to further improve management efficiency.
2. Outline of accounting treatment implemented[Accounting Standard for Business Combinations] (ASBJ Statement No. 21, January 16, 2019) and [Implementation
Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures] (ASBJ
Guidance No. 10, January 16, 2019) have been accounted for as transactions under common control.

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