This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translationor for direct, indirect or any other forms of damage arising from the translation.

January 11, 2023

Consolidated Financial Results for the Three Months Ended November 30, 2022
Name of Company
Stock exchange
URL
listing
Representative
Contact
TEL

Demae-can Co., Ltd
Standard of Tokyo Stock Exchange (Code 2484)
https://corporate.demae-can.com/en/
Hideo Fujii, President & CEO
Motoki Kobayashi, Head of Finance & Accounting Division+81
50 5445 5390
PlanniniAdministratDivision

Scheduled date of filing of quarterly report:

January 13, 2023

Scheduled start of dividend payment:
Supplementary materials for quarterly financial results:
Hosting quarterly financial results meeting:Yes
Yes (for institutional investors & analyst)

Notes:

1. The accompanying financial statements have been prepared in accordance with accounting
principles and practices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.

1. Consolidated financial highlights for the Year Ended November 30, 2022
(1) Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended
November 30, 2021

Net sales (Millions of yen)
Operating profit (Millions of yen)
Ordinary profit (Millions of yen)

10,342(8,972)(8,963)(8,983)

Profit attributable to owners of parent (Millions of yen)

Profit per share (Yen):
Basic
DilutedComprehensive income:November 30, 2022

%
147.1
-

12,193(4,244)(4,224)(4,237)%17.9-(77.79)(32.19)Three month ended November 30, 2022: (4,229) million yen, - %Three month ended November 30, 2021: (8,993) million yen, -%(2) Financial position
As ofAugust 31, 2022

November 30, 2022

69,19054,225
78.4

62,83049,997
79.6

Total assets (Millions of yen)
Total net assets (Millions of yen)
Equity ratio (%)
Equity:49,986 million yen (as of November 30, 2022)
54,215 million yen (as of August 31, 2022)

Demae-can Co., Ltd2. Dividends

Year ended
August 31, 2022

Q1-end dividends per share (Yen)
Q2-end dividends per share (Yen)
Q3-end dividends per share (Yen)
Year-end dividends per share (Yen)Annual dividends per share (Yen)Year ending
August 31, 2023

Year ending
August 31, 2023
(forecast)

0.00
0.00
0.00

0.00
0.00
0.00

Note: Revision to the dividends forecasts most recently announce: None
No dividend will be paid for the fiscal year ending August 31, 2023 (forecast).
3. Financial forecasts for the fiscal year ending August 31, 2023
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ending
August 31, 2023%
Sales (Billions of yen)
58-61
22.6-31.0
Operating profit (Billions of yen)

(21-19)(Note) Revisions to the most recently announced earnings forecasts: None

The environment surrounding the delivery market is rapidly changing and may have a significant impact on ourbusiness performance. In consideration of these circumstances, the consolidated forecasts for the fiscal year ending
August 31, 2023, within the range of current assumptions, are for GMV in the range of 231.0 billion yen to 242.0 billion
yen (105%~110% of the previous year), for sales in the range of 58.0 billion yen to 62.0 billion yen (123%~131%), andfor operating income in the range of -21.0 billion yen to -19.0 billion yen.

*Notes(1) Important changes in subsidiaries (Changes on specific subsidiaries associated with changes inscope of consolidation): None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial
statements: Yes(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes (3) Notes
to Quarterly Consolidated Financial Statements (Application of Special Accounting Methods for
Preparation of Quarterly Consolidated Financial Statements)" on page 8 of the attached materials.
(3) Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: Yes
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
(4) Number of shares issued and outstanding (common share)
1. Number of shares issued and outstanding (including treasury shares)
As of November 30, 2022: 131,755,230 shares
As of August 31, 2022:
131,755,230 shares
2. Number of shares of treasury shares
As of November 30, 2022: 109,787 shares
As of August 31, 2022:
91,587 shares
3. Average number of shares outstanding
As of November 30, 2022: 131,656,864 shares
As of November 30, 2021: 115,484,379 shares

2* These Consolidated Financial Results are not subject to audits by certified public accountants or audit
corporations.
* Explanation of the appropriate use of financial forecast and other notes:- The financial forecasts and estimates provided in these Consolidated Financial Results are based on information available atthe time of report issuance and certain assumptions judged to be reasonable by the Company and are, therefore, not guarantees
of future performance. Consequently, actual results may differ substantially from those described in these Consolidated
Financial Results. Please refer to 1. Summary of Operating Results and Financial Position (3) Explanation of Consolidated
Financial Forecasts and Other Forward-Looking Statements on page 5 for further details.
- The amounts of items and other matters stated in the Company’s quarterly consolidated financial statements werepreviously stated in units of thousand yen; however, during and after the first quarter of the fiscal year under review, unitsof million yen are used in stating such amounts. For easier comparison, units of million yen are also used for the previous
consolidated fiscal year and the previous consolidated first three months.

3

1. Summary of Operating Results and Financial Position(1) Summary of Operating Results for the Fiscal Year under Review
During the first quarter of the fiscal year under review (September 1, 2022 to November 30, 2022), the Group stepped
up its efforts to expand the Demae-can business with a view toward attaining its goal of making food delivery part ofeveryday life.
Approaching six months since the lifting of quasi-emergency COVID-19 measures on March 21, 2022, the threemonth period under review saw an increase in the flow of people in October, reflecting the launch of nationwide travel
support and significant easing of border control measures. Consequently, helped by a significant recovery inconsumption activities in restaurants partly due to the resumption of the Go-to-Eat campaign in Tokyo in late October for
the first time in two years, sales of the food service industry in October exceeded those in 2019, the level before the
COVID-19 pandemic. (Source: Food Service Trend Survey for the month of October 2022 by the Japan Foodservice
Association)
As described above, the environment surrounding the food delivery market continued to change. Even so, the Groupmade steady efforts to enhance the lineup of merchants while also improving its services qualities through improvementsin the accuracy of waiting times and reductions in delivery time. As a result, GMV, which continued to grow in the threemonth period under review as in the previous period, stood at 50.8 billion yen (up 4% year on year), while the number ofactive users came to 8.46 million (up 9% year on year) at the end of the first quarter of the fiscal year under review.
Looking ahead to the second quarter and beyond, the Group will continue to focus on fundamentally improving its
service quality through product improvements, striving to be the "service of choice" for users, riders, and merchants.
On the cost side, progress was made in the optimization of remuneration per delivery, reflecting improved delivery
efficiency due to reductions in delivery time. Such efforts led to further improvements in unit economics. As a result, thegross profit ratio improved sharply to 19% from the previous quarter, coming very close to 20%, a full-year target for thecurrent fiscal year. With respect to advertising expenses, the Group gave priority to investment efficiency while also
continuing to track market trends. As a result, reductions accelerated, even in terms of the ratio to GMV.
Consequently, consolidated net sales for the first three months of the fiscal year under review increased by 17.9% year
on year, to 12,193 million yen, reflecting continued business expansion. However, aggressive business development andinvestment resulted in operating loss of 4,244 million yen (operating loss of 8,972 million yen in the previous fiscal
year), ordinary loss of 4,224 million yen (ordinary loss of 8,963 million yen in the previous fiscal year) and loss
attributable to owners of parent of 4,237 million yen (loss attributable to owners of parent of 8,983 million yen in theprevious fiscal year).
Effective from the first quarter of the fiscal year under review, the Group's reportable segments, which traditionallyreflected two businesses, namely, the Demae-can business and the Mail Order business, are merged into a single Demaecan business segment. Segment information therefore is omitted.
(2) Summary of Financial Position in the Fiscal Year under Review
1) Assets, Liabilities, and Net Assets
Current assets at the end of the first quarter under review amounted to 62,499 million yen, a decrease of 6,364 million
yen from the end of the previous fiscal year. This was primarily due to decreases of 5,285 million yen in cash anddeposits and 1,058 million yen in accounts receivable - other.
Non-current assets at the end of the first quarter under review amounted to 331 million yen, an increase of 4 million yen
from the end of the previous fiscal year. This was mainly due to an increase of 9 million yen in investment securities.
As a result, total assets at the end of the first quarter under review amounted to 62,830 million yen, a decrease of 6,360
million yen from the end of the previous fiscal year.
Current liabilities at the end of the first quarter under review amounted to 12,780 million yen, a decrease of 2,134
million yen from the end of the previous fiscal year. This decrease mainly reflected a decrease of 1,998 million yen inaccounts payable - other.
Non-current liabilities at the end of the first quarter under review increased 2 million yen from the end of the previous
fiscal year to 52 million yen. Key factors contributing to this increase included an increase of 2 million yen in other noncurrent liabilities.
4

As a result, total liabilities at the end of the first quarter under review amounted to 12,833 million yen, a decrease of
2,132 million yen from the end of the previous fiscal year.
Net assets amounted to 49,997 million yen, a decrease of 4,228 million yen from the end of the previous fiscal year.
The decrease mainly reflected a decline in retained earnings due to the posting of 4,237 million yen as a loss attributableto owners of parent.

(3) Explanation of Consolidated Financial Forecasts and Other Forward-Looking Statements
The environment surrounding the delivery market is rapidly changing and may have a significant
impact on our business performance. In consideration of these circumstances, the consolidated forecasts
for the fiscal year ending August 31, 2023, within the range of current assumptions, are for GMV in therange of 231.0 billion yen to 242.0 billion yen (105%~110% of the previous year), for sales in the range of
58.0 billion yen to 62.0 billion yen (123%~131%), and for operating income in the range of -21.0 billion
yen to -19.0 billion yen.
The above forecasts are based on currently available information, and actual results may differ
significantly due to various uncertainties.

52. Consolidated Financial Statements and Notes to Consolidated Financial Statement(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Merchandise and finished goods
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets(Millions of yen)

As of November 30, 2021

As of November 30, 2022

53,262104
17
13,3322,188(42)
68,86347,97696
15
12,2742,152(15)
62,499

254
59
12
1
(1)
326

263
54
12
2
(2)
331
331

6

326
69,19062,83014,61597
21
180
14,915

12,61611
13
138
12,78050
50
14,96552
52
12,833

100
112,269(58,184)(3)
54,181

100
112,269(62,422)(3)
49,943

34

42

34
9
54,22569,19042
1049,997
62,830(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Share of profit of entities accounted for using
equity method
Insurance claim income
Subsidy income
Settlement received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation for damage
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on change in equity method
Total extraordinary losses
Profit before income taxes
Income taxes etc.
ProfitProfit attributable to owners of parent

7(Millions of yen)

Year ended
November 30, 2021
10,342
9,805
536
9,509
(8,972)

Year ended
November 30, 2022
12,193
9,943
2,250
6,494
(4,244)

8

13

3
0
–
2
14

1
–
7
2
24

0
3
–
1
5
(8,963)–0
30
4(4,224)

3
3

–
–

–
–
(8,959)23(8,983)(8,983)1
1(4,226)
11(4,237)(4,237)

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests(Millions of yen)

Year ended
November 30, 2021
(8,983)

Year ended
November 30, 2022
(4,237)

(9)

8

(9)
(8,993)8(4,229)(8,993)(4,229)--(3) Notes to Consolidated Financial Statements(Notes on the going concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Adoption of special accounting methods for preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
With respect to the calculation of tax expenses, reasonable estimations are performed on an effective tax rate establishedafter applying tax accounting to profit before income taxes for the consolidated fiscal year, which includes the first quarterof the consolidated fiscal year under review, and such tax expenses are calculated by multiplying this estimated effective
tax rate by profit before income taxes. If the calculation of tax expenses using the estimated effective tax rate is extremely
unreasonable, profit/loss before income taxes multiplied by the statutory tax rate is used and the recoverability of deferred
tax assets is taken into consideration.
(Segment information)
I. Three months ended November 30, 2021 (from September 1, 2021 to November 30, 2021)
As indicated in "II. Three months ended November 30, 2022 (Matters concerning changes in the reportable segment)"
II. Three months ended November 30, 2022 (from September 1, 2022 to November 30, 2022)
Since the Group has only single business segment, the statement is omitted.
(Matters concerning changes in the reportable segment)
Effective from the first quarter of the fiscal year under review, the Group's reportable segments, which traditionallyreflected two businesses, namely, the Demae-can business and the Mail Order business, are merged into single Demaecan business segment because Demae-can Communications Co., Ltd., which is a subsidiary, transferred the Mail Orderbusiness it had been conducting on June 30, 2022.
With the Group's reportable segments merged into a single business segment as a consequence of this change, segment
information is omitted in conjunction with the results for the first quarter of the previous fiscal year and the first quarter ofthe fiscal year under review.

8

(Significant subsequent event)
On Reduction of Capital Reserve and Appropriation of Surplus
Demae-can Co., Ltd. (the "Company"), at the Board of Directors meeting held on November 2nd 2022, resolved tosubmit a proposal to the 23rd Annual Meeting General of Shareholders meeting to be held on November 29, 2022 (the"Shareholders' Meeting") regarding the reduction of capital reserve and the appropriation of surplus, which was approvedat the said meeting and became effective on January 10, 2023.
1. Purpose of reduction of capital reserve and appropriation of surplus
The Company is reducing the amount of legal capital surplus and appropriating surplus for the purpose of
making up the current deficit in retained earnings brought forward, thereby improving financial soundness, andensuring flexibility and mobility of future capital policy.
2. Outline of Reduction of Capital Reserve
Pursuant to Article 448, Paragraph 1 of the Companies Act, the amount of capital reserve will be reduced andtransferred to other capital surplus.
(1) Amount of capital reserve to be reduced
52,151 million yen out of capital reserve of 52,251 million yen(2) Amount of other capital surplus to be increased
Other capital surplus 52,151 million yen
3.Outline of Appropriation of Surplus
Pursuant to Article 452 of the Companies Act, the Company will make up the deficit by transferring othercapital surplus to retained earnings brought forward as follows, under the condition that the reduction in the amountof capital reserve becomes effective. As a result, the amount of retained earnings brought forward after the transfer
will be 0 yen.
(1) Item and amount of surplus to be reduced
Other capital surplus 58,378 million yen(2) Item and amount of surplus to be increased
Retained earnings brought forward 58,378 million yen
4.Schedule (subject to change)(1) Date of resolution by the Board of Directors:(2) Date of resolution of the Shareholders' Meeting:(3) Date of public notice of objection by creditors:(4) Final date for objection by creditors:(5) Effective date:November 2, 2022
November 29, 2022
November 30, 2022
January 6, 2023
January 10, 2023:

9