nThis document was prepared using our machine translation, and no manual modification of the content has been made.
This translation is to be used solely as a reference and the consolidated financial statements in this release are unaudited.

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
February 29, 2020 [Japanese GAAP]
January 14, 2020
Company name

Listing Market TSE

Stock Code

6182

Rozetta Corp.
URL https://www.rozetta.jp

Representative: Junichi Goishi, Representative Director and CEO
Contact:

Masayuki Mori, Executive Officer, General Manager of Group Administration Division

Scheduled date of filing of quarterly report:

TEL 03-5215-5678

Scheduled date of commencement ofdividend payment

January 14, 2020－

Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results briefing: 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, 2020
(March 1, 2019-November 30, 2019)(1) Consolidated Results of Operation (Cumulative)(Percentages indicate year-on-year changes.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Millions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
Q3 FY2/20
2,933
42.5
405
125.9
403
124.8
236
83.3
－
－
－
Q3 FY2/19
2,058
38.5
179
179
129
(Note)
Comprehensive
incomeQ3 FY2/20

234

Millions of yen(81.6%)Q3 FY2/19

Net income per share

Diluted net income per
share

Yen
22.95

Yen
22.28

Q3 FY2/20

129

Millions of yen(-%)

Q3 FY2/19
12.79
12.24
(Note) The year-on-year changes in operating income and ordinary income for the third quarter of the fiscal year ended February 28,
2019 exceeded 1,000% and therefore are referred to as "-."
(2) Consolidated Financial Position

Q3 FY2/20
FY2/19(Reference)
Shareholders' equity

Total assets
Millions of yen
3,330
2,642
Q3 FY2/20

Net assets
Millions of yen
1,432
1,194

1,432

Millions of yen

Shareholders' equity ratio
%
43.0
45.1

FY2/19

1,191

Millions of yen

2. Dividend payment
End of Q1
FY2/19FY2/20FY2/20 (Forecast)

Yen
－
－

End of Q2

Annual dividend per share
End of Q3

Yen
0.00
0.00

(Note) Revisions to the most recently announced dividend forecast: None

Yen
－
－

Year-end
Yen
0.00
0.00

Total
Yen
0.00
0.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending February 29, 2020 (March 1, 2019-February 29, 2020)
At present, the MT business has entered a period of rapid growth since the fourth quarter of the fiscal year ended February 28,
2018, and we are concentrating our management policy on maximizing medium-to long-term growth rather than short-term
profits. For the time being, we will not disclose the forecast as a fixed value until sales growth of the MT business settles down(roughly 1.5 times the previous year), in order not to adjust expenses in accordance with earnings forecasts, and therefore we
make decisive choices that best meet its long-term growth objectives on an occasional basis. For the consolidated business
forecasts for the fiscal year ending February 29, 2020, we announced only the minimum figures, for example, by indicatingrecord-high sales (2,908 million yen) or over and record-high profit (operating income of 338 million yen) or over.
*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly consolidated: Excluded: Inter media Inc. and Quicktranslate, Inc.
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated
Financial Statements (Changes in Significant Subsidiaries during the Period)" on page 5 of the Appendix.
(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)" onpage 5 of the Appendix.
(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies due to revision of accounting standards, etc.: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement of prior period financial statements after error corrections: None
(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at the endof the period (including treasury stock)

Q3 FY2/20

10,330,260

sharesFY2/1910,296,260

shares(ii) Treasury shares at the end of the period

Q3 FY2/20

422

sharesFY2/19286

shares(iii) Average number of shares outstanding
during the period (cumulative)

Q3 FY2/20

10,302,137

sharesQ3 FY2/19

10,088,413

shares*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 regarding future performance in this material are based on information currently available to us and certain assumptions that
we deem to be reasonable at the time this report was prepared. We do not make promises about the achievements. 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 2 of the Attachment 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.

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020

○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 …………………………………………………………………………………………

2

2. Quarterly Consolidated Financial Statements and Major Notes …...…………………………………………………………

3(1) Quarterly Consolidated Balance Sheets ….……………………………………………………………………………….

3(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ……

4

Quarterly Consolidated Statements of Income
For the Nine-month Period ………………………………………………………………………………………...

4

Quarterly Consolidated Statements of Comprehensive Income
For the Nine-month Period ………………………………………………………………………………………...
(3) Notes on Quarterly Consolidated Financial Statements…………………………………………………………………...

4
5(Notes on Going Concern Assumptions)………………………………………………………………………………...

5(Notes on Significant Changes in Shareholders' Equity)………………………………………………………………...

5(Changes in Significant Subsidiaries during the Period) ………………………………………………………………..
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial
Statements) ………………………………………………………………………………………………………………
(Additional Information) ….……………………………………………………………………………………………..

5(Segment Information) …………………………………………………………………………………………………..

6(Per share Information) ………………………………………………………………………………………………….

7

-1-

5
5

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the third quarter of the current fiscal year (March 1, 2019 to November 30, 2019), sales of T-4OO continued to be strong
in the MT business. Accordingly, we continuously increased the staff of all sections, including the marketing and management
sections, to fortify our organizational structure before expanding our business rapidly.
As a result, our group posted net sales of 2,933,317 thousand yen (up 42.5% year on year), operating income of 405,690 thousandyen (up 125.9% year on year), ordinary income of 403,504 thousand yen (up 124.8% year on year), and profit attributable toowners of parent of 236,463 thousand yen (up 83.3% year on year) for the cumulative third quarter of the current fiscal year.
The performance of each business segment is as follows:① MT business
As for the MT business, sales were 1,526,269 thousand yen (up 160.4% year on year) due to continuous strong sales of T4OO. Segment income was 185,760 thousand yen (up 301.5% year on year) as a result of a significant increase in SG & A
expenses from the sales division to the administration division in preparation for the rapid expansion of the MT business.
② HT business
As for the HT business, sales were 1,101,682 thousand yen (down 8.5% year on year). Segment income was 263,956 thousandyen (up 44.8% year on year), as a result of a decrease in cost of sales due to a reduction in manufacturing expenses and laborcosts and a decrease in SG & A expenses due to a review of the ratio of SG & A expenses to the entire group.
③ Crowdsourcing business
As for the crowdsourcing business, sales were 305,365 thousand yen (up 13.4% year on year). Segment loss was 6,511
thousand yen (segment income of 44,511 thousand yen in the previous fiscal year) as a result of a decrease in intra-grouptransactions.
(2) Financial Position(Assets)
Current assets increased by 133,803 thousand yen from the end of the previous fiscal year to 1,457,062 thousand yen at the endof the third quarter of the current fiscal year. This was mainly due to an increase of 17,779 thousand yen in cash and deposits andan increase of 22,466 thousand yen in notes and accounts receivable. Non-current assets increased by 553,457 thousand yen fromthe end of the previous fiscal year to 1,873,050 thousand yen. This was mainly due to an increase of 277,919 thousand yen inproperty, plant and equipment and an increase of 239,707 thousand yen in intangible assets.
(Liabilities)
Current liabilities increased by 347,630 thousand yen from the end of the previous fiscal year to 1,504,143 thousand yen at theend of the third quarter of the current fiscal year. This was mainly due to an increase of 210,937 thousand yen in advances
received and an increase of 41,090 thousand yen in provision for bonuses. Non-current liabilities increased by 101,627 thousand
yen from the end of the previous fiscal year to 393,798 thousand yen. This was due to long-term debt.
(Net assets)
Net assets increased by 238,004 thousand yen from the end of the previous fiscal year to 1,432,170 thousand yen at the end of
the third quarter of the current fiscal year. This was mainly due to an increase in retained earnings of 236,463 thousand yen.
(3) Consolidated Business Forecasts
At present, the MT business has entered a period of rapid growth since the fourth quarter of the fiscal year ended February 28,
2018, and we are concentrating our management policy on maximizing medium-to long-term growth rather than short-term
profits. For the time being, we will not disclose the forecast as a fixed value until sales growth of the MT business settles down(roughly 1.5 times the previous year), in order not to adjust expenses in accordance with earnings forecasts, and therefore we
make decisive choices that best meet its long-term growth objectives on an occasional basis. For the consolidated business
forecasts for the fiscal year ending February 29, 2020, we announced only the minimum figures, for example, by indicatingrecord-high sales (2,908 million yen) or over and record-high profit (operating income of 338 million yen) or over.
-2-

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Advances received
Other
Total current liabilities
Long-term liabilities
Long-term debt
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Share subscription rights
Non-controlling interests
Total net assets
Total liabilities and net assets-3-

Current third quarter(November 30, 2019)853,378
360,515
51,23766,716(8,589)1,323,258

871,158
382,980
30,701
179,416(7,194)
1,457,062

236,489

514,408

89,513432,361
423,287468
945,631
137,471
1,319,592
2,642,850

80,682754,558
349,646451
1,185,339
173,302
1,873,050
3,330,112

140,961
231,601
111,002
26,577440,309
206,061
1,156,513

87,375230,222
22,14567,668651,246445,486
1,504,143

292,171
292,171
1,448,684

393,798
393,798
1,897,941

250,794
1,230,983(289,839)(435)
1,191,502
458
2,206
1,194,166
2,642,850

253,565
1,232,754(53,376)(861)
1,432,081
89－
1,432,170
3,330,112

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020
(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, 2018
to November 30, 2018)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Provision for bonuses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Subsidy income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Settlement
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Special income
Income on sales of fixed assets
Surrender value of insurance
Gain on reversal of share subscription rights
Total special income
Special loss
Loss on retirement of noncurrent assets
Total special loss
Income before income taxes
Income taxes
Net income
Income (loss) attributable to non-controlling interests
Net income attributable to owners of parent

Current third quarter(From March 1, 2019
to November 30, 2019)

2,058,739
822,736
1,236,003

2,933,317
1,016,722
1,916,595

343,491
44,910668,016
1,056,417
179,585

464,518
35,4991,010,885
1,510,904
405,690

35
10
－
371
1,869
2,286

170
10
1,425
－
971
2,578

2,090
－
－
304
2,394
179,477

1,327
2,400
97
939
4,764
403,504801
11,513－
12,315

－
－
369
369

3,149
3,149
188,643
59,617129,025－
129,025

38,48738,487
365,386
131,129234,257(2,206)
236,463(Quarterly Consolidated Statements of Comprehensive Income)(For the Nine-month Period)(Thousands of yen)Previous third quarter(From March 1, 2018
to November 30, 2018)
Net income
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests-4-

Current third quarter(From March 1, 2019
to November 30, 2019)

129,025
129,025

234,257
234,257

129,025－

236,463(2,206)

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020
(3) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
Not applicable.
(Changes in Significant Subsidiaries during the Period)
During the first quarter of the fiscal year, the Company conducted an absorption-type merger of Inter media Inc. by GLOVA
Corp., our consolidated subsidiary, and an absorption-type merger of Quicktranslate, Inc. by anydooR, Inc. As a result, Inter
media, Inc. and Quicktranslate, Inc. have ceased to exist, and therefore, they have been excluded from the scope of consolidationfrom the first quarter of the current fiscal year.
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)
Income taxes are calculated by multiplying the net income before income taxes by the forecasted effective tax rate, which iscomputed by matching the forecasted yearly income before taxes with the forecasted yearly income before taxes.
(Additional Information)(Application of Partial Revision of "Accounting Standard for Tax Effect Accounting")
The Company has applied the "Partial Revision to the Accounting Standard for Tax Effect Accounting" (ASBJ Statement No.
28, February 16, 2018) and other accounting standards from the beginning of the first quarter of the current fiscal year.
Accordingly, deferred tax assets are presented as investments and other assets, and deferred tax liabilities are presented as noncurrent liabilities.

-5-Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020
(Segment Information)[Segment Information]
I. Previous third quarter (From March 1, 2018 to November 30, 2018)
1. Information on net sales and income (loss) by reportable segment
Reportable Segments(Thousands of yen)Amounts on the
consolidated
Adjustment
financial(Note 1)statements(Note 2)MT businessHT business

Crowdsourcing
business

586,066

1,203,406

269,266

2,058,739－

2,058,739

1,800

164,042

193,680

359,523(359,523)－

587,866

1,367,449

462,947

2,418,263(359,523)

2,058,739

46,262

182,333

44,511

273,106(93,521)179,585

Total

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer
Total
Segment income(Note)
1.

2.

Adjustments to segment income of (93,521) thousand yen include eliminations of intersegment transactions and amortization of
goodwill not attributable to reportable segments, and corporate 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 is adjusted with operating income in the quarterly consolidated statements of income.
II. Current third quarter (From March 1, 2019 to November 30, 2019)
1. Information on net sales and income (loss) by reportable segment
Reportable Segments(Thousands of yen)Amounts on the
consolidated
Adjustment
financial(Note 1)statements(Note 2)MT businessHT business

Crowdsourcing
business

1,526,269

1,101,682

305,365

2,933,317－

2,933,317

61,9404,962

89,826

156,729(156,729)

－

Total

1,588,210

1,106,644

395,192

3,090,047(156,729)

2,933,317

Segment income(loss)

185,760

263,956(6,511)

443,205(37,514)405,690

Total

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer(Note)
1. Adjustments to segment income (loss) of (37,514) thousand yen include eliminations of intersegment transactions andamortization of goodwill not attributable to reportable segments, and corporate expenses. Corporate expenses mainly consist of
expenses related to the administrative departments of the parent company that are not attributable to reportable segments.
2.

Segment income (loss) is adjusted with operating income in the quarterly consolidated statements of income.

-6-

Rozetta Corp. Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending February 29, 2020
(Per share Information)
The basis for calculation of net income per share and diluted net income per share is as follows.
Previous third quarter(From March 1, 2018
to November 30, 2018)

Current third quarter(From March 1, 2019
to November 30, 2019)12.79 yen

22.95 yen

129,025

236,463－－129,025

236,463

10,088,413

10,302,137

12.24 yen

22.28 yen－－

455,950

313,258－－(1) Net income per share(Basis of calculation)
Net income attributable to owners of parent(thousands of 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-7-