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 this document
are unaudited.

Consolidated Financial Results for the Six-month Period of the Fiscal Year Ending
February 28, 2021 [Japanese GAAP]
October 15, 2020
Listing Market TSE
Company nameRozetta Corp.
Stock Code6182
URL https://www.rozetta.jp
Representative: Junichi Goishi, Representative Director and CEO
Contact: Masayuki Mori, Executive Officer, General Manager of Group Administration Division
TEL 03-5215-5678
Scheduled date of commencement－
Scheduled date of filing of quarterly report: October 15, 2020of dividend payment
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 Six Months Ended August 31, 2020
(March 1, 2020 to August 31, 2020)(1) Consolidated Results of Operation (Cumulative)
Net sales
Millions of
yen
1,997
1,935

Q2 FY2/21
Q2 FY2/20(Note)
Comprehensive
incomeOperating income

Q2 FY2/21

123

Millions of
yen
222
309

%
3.2
49.8

Millions of yen%(28.1)
274.9((30.3)%)Q2 FY2/20

Net income per share

Diluted net income per
share

Yen
11.84
16.38

Yen
11.54
15.89

Q2 FY2/21
Q2 FY2/20(Percentages indicate year-on-year changes.)
Net income attributable
Ordinary income
to owners of parent
Millions
Millions%%of yenof yen176(43.2)
123(27.1)
310
269.8
168
176.1
176

Millions of yen(188.8%)(2) Consolidated Financial Position

Q2 FY2/21
FY2/20(Reference) Shareholders'equityTotal assets
Millions of yen
5,084
3,753
Q2 FY2/21

2,686

Net assets
Millions of yen
2,728
1,504

Millions of yen

Shareholders' equity ratio
%
52.8
40.1

FY2/201,503

Millions of yen

2. Dividend payment
End of Q1
Yen

End of Q2

Annual dividend per share
End of Q3

Yen－
FY2/200.00
FY2/21－
0.00
FY2/21 (Forecast)(Note) Revisions to the most recently announced dividend forecast: None

Yen

Year-end
Yen

Total

－

0.00

0.00

－

0.00

0.00

Yen

3. Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2021 (March 1, 2020 to February 28, 2021)(Percentages indicate year-on-year changes.)
Net sales

Operating income
百万円
450

Millions of yen%
0.0
Full year
3,910(Note) Revisions to the most recently announced financial forecast: Yes%
0.4

In the past, we have decided not to disclose the forecast as a fixed value until sales growth of the MT business settles down(roughly 1.5 times that of the previous year). As of October 15, 2020, the MT business increased by 1.46 times compared to theprevious year, falling below 1.5 times. As a result, we disclose the business forecast at a level slightly above the record high forboth net sales and operating income. This business forecast is based on the assumption that the economic environment is on thebasis of an extension of the current situation, as it is impossible to predict a full-fledged recovery period related to the COVID-19
pandemic and the downturn in purchasing activities of client companies, which are deeply related to the overseas economies,
which are incidental to the COVID-19 pandemic. In addition, we will shift our management focus from the MT business to the
GU (Global Ubiquitous) business.
After the launch of the Travel DX business, if the business reaches PMF (Product Market Fit: a state in which the
products/services provided are accepted by the market as the best means of resolving the problems of target users), and if it isdetermined that there is a time for competition, we will concentrate investment in upfront investments, and therefore we reserve
the possibility that profits will be reduced by the amount of increased expenses. In such cases, we will promptly provide concrete
indicators that suggest the achievement of PMF in the business.
The impact of COVID-19 pandemic on our business results is as follows.
As for the MT business, orders from existing customers were generally firm, but as disclosed in the "Notice Regarding the Orders
Received in the Machine Translation Business in July" on August 21, 2020, orders from new customers were below the
expectations during the second quarter of the current fiscal year due to economic factors such as the slowdown of corporate
activities due to the COVID's pandemic. Although there are signs of a resumption of economic activities recently, it is impossible
to expect a full-fledged recovery in corporate purchasing activities. However, the increase in the number of business negotiations
due to the resumption of exhibitions from September onward and the effects of the expansion of the customer base due to the
newly released services such as T-3MT and RozettaMetamsource are expected to gradually emerge from November onward, andorders received from the fourth quarter onward are expected to recover moderately.
In the HT business, which undertakes manual tasks, sales and profits continued to decrease year on year, although there is aconspicuous trend of recovery from the bottom of August due to the resumption of economic activities and the penetration of
web-based training in the mainstay translation business and language training. A full-fledged recovery is expected to take time.
The interpretation business, which conducts on a face-to-face and group basis, is greatly affected by restrictions on entry into
Japan, restrictions on travel overseas, and requests for voluntary restraint on overseas travel. As a result, the timing of therecovery is uncertain.
The business forecasts are based on the results and circumstances that were actually affected by the COVID-19 pandemic up to
October 15, 2020. We do not make any predictions about the future medical, political, or economic outlook for the COVID-19
pandemic.
*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly consolidated: Event DX Corporation
Excluded: (Note) For details, please refer to "2.Quarterly Consolidated Financial Statements, (4) Notes on Quarterly Consolidated
Financial Statements (Changes in Significant Subsidiaries during the Period)" on page 7 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, (4) Notes on Quarterly Consolidated Financial
Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements)" onpage 7 of the Appendix.
(3) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the endof the period (including treasury stock)

Q2 FY2/21

10,657,660

sharesFY2/2010,330,260

shares2) Treasury shares at the end of the year

Q2 FY2/21

422

sharesFY2/20422

shares3) Average number of shares outstanding

Q2 FY2/21

10,389,869

sharesQ2 FY2/20

10,296,789

sharesduring the period (cumulative)*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 the Company and certain
assumptions that the Company deems to be reasonable at the time this report was prepared. The Company does 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 (4) 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.

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021

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

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

2(2) Consolidated Financial Position …………………………………………………………………………………………..

2(3) Cash flows ...………………………………………………………………………………………………………………

3(4) 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 Six-month Period …………………………………………………………………………………………

5

Quarterly Consolidated Statements of Comprehensive Income
For the Six-month Period …………………………………………………………………………………………

5(3) Quarterly Consolidated Statements of Cash Flows ………………………………………………………………………

6(4) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………

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

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

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

7(Per share Information) …………………………………………………………………………………………………

9(Significant Subsequent Events) ………………………………………………………………………………………

10

－ 1 －

7
8

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the second quarter of the current fiscal year (March 1, 2020 to August 31, 2020), the MT business continued to perform
strongly.
As a result, our group posted net sales of 1,997,838 thousand yen (up 3.2% year on year), operating income of 222,789 thousandyen (down 28.1% year on year), ordinary income of 176,735 thousand yen (down 43.2% year on year), and profit attributable toowners of parent of 123,011 thousand yen (down 27.1% year on year) for the cumulative second 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 1,416,799 thousand yen (up 46.1% year on year), and segment income was 190,956
thousand yen (up 42.4% year on year).
2) HT business
As for the HT business, sales were 448,524 thousand yen (down 39.4% year on year), and segment income was 81,069
thousand yen (down 55.8% year on year).
3) Crowdsourcing business
As for the Crowdsourcing business, sales were 132,515 thousand yen (down 41.3% year on year), and segment loss was 5,998
thousand yen (segment income of 22,514 thousand yen in the previous fiscal year).
(2) Financial Position(Assets)
Current assets increased by 1,106,132 thousand yen from the end of the previous fiscal year to 2,751,083 thousand yen at theend of the second quarter of the current fiscal year. This was mainly due to an increase of 1,311,917 thousand yen in cash anddeposits and a decrease of 115,584 thousand yen in notes and accounts receivable-trade. Non-current assets increased by
224,188 thousand yen from the end of the previous fiscal year to 2,333,143 thousand yen. This was mainly due to a decrease of
62,577 thousand yen in property, plant and equipment and an increase of 297,007 thousand yen in intangible assets.
(Liabilities)
Current liabilities increased by 196,608 thousand yen from the end of the previous fiscal year to 2,014,358 thousand yen at theend of the second quarter of the current fiscal year. This was mainly due to an increase of 171,280 thousand yen in advances
received and an increase of 120,000 thousand yen in short-term borrowings. Non-current liabilities decreased by 90,337
thousand yen from the end of the previous fiscal year to 341,745 thousand yen. This was mainly due to the repayment of longterm debt.
(Net assets)
Net assets increased by 1,224,049 thousand yen from the end of the previous fiscal year to 2,728,122 thousand yen at the endof the second quarter of the current fiscal year. This was mainly due to an increase of 529,945 thousand yen in common stockand capital surplus, and an increase of 123,011 thousand yen in retained earnings, respectively, resulting from the issuance of
new shares through a third-party allotment, the issuance of share subscription rights, etc.

－ 2 －Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(3) Cash flows
Cash and cash equivalents at the end of the second quarter of the current fiscal year increased by 1,324,958 thousand yen fromthe end of the previous fiscal year to 2,314,086 thousand yen. The status of each type of cash flow during the second quarter ofthe current fiscal year and the factors thereof are as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities was 792,455 thousand yen (compared to 517,158 thousand yen provided in theprevious fiscal year). This was mainly attributable to income before income taxes of 176,734 thousand yen, depreciation andamortization of 277,498 thousand yen, an increase in advances received of 171,280 thousand yen, and a decrease in notes andaccounts receivable-trade of 115,584 thousand yen.
(Cash Flows from Investing Activities)
Net cash used in investing activities was 516,285 thousand yen (compared to 366,551 thousand yen used in the previous fiscal
year). This was mainly attributable to purchase of intangible assets of 502,719 thousand yen.
(Cash Flows from Financing Activities)
Net cash provided by financing activities was 1,048,501 thousand yen (compared to 113,482 thousand yen used in the previous
fiscal year). This was mainly due to proceeds from issuance of shares of 1,021,383 thousand yen.
(4) Consolidated Business Forecasts
The business forecasts are as follows.
In the past, we have decided not to disclose the forecast as a fixed value until sales growth of the MT business settles down(roughly 1.5 times that of the previous year). As of October 15, 2020, the MT business increased by 1.46 times compared to theprevious year, falling below 1.5 times. As a result, we disclose the business forecast at a level slightly above the record high forboth net sales and operating income. This business forecast is based on the assumption that the economic environment is on thebasis of an extension of the current situation, as it is impossible to predict a full-fledged recovery period related to the COVID19 pandemic and the downturn in purchasing activities of client companies, which are deeply related to the overseas
economies, which are incidental to the COVID-19 pandemic. In addition, we will shift the focus of our management from theMT business to the GU (Global Ubiquitous) business.
■ Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2021: Net sales of 3,910 million yen andoperating income of 450 million yen
After the launch of the Travel DX business, if the business reaches PMF (Product Market Fit: a state in which the
products/services provided are accepted by the market as the best means of resolving the problems of target users), and if it isdetermined that there is a time for competition, we will concentrate investment in upfront investments, and therefore we
reserve the possibility that profits will be reduced by the amount of increased expenses. In such cases, we will promptly
provide concrete indicators that suggest the achievement of PMF in the business.
The impact of COVID-19 pandemic on our business results is as follows.
As for the MT business, orders from existing customers were generally firm, but as disclosed in the "Notice Regarding theOrders Received in the Machine Translation Business in July" on August 21, 2020, orders from new customers were below the
expectations during the second quarter of the current fiscal year due to economic factors such as the slowdown of corporate
activities due to the COVID's pandemic. Although there are signs of a resumption of economic activities recently, it is
impossible to expect a full-fledged recovery in corporate purchasing activities. However, the increase in the number ofbusiness negotiations due to the resumption of exhibitions from September onward and the effects of the expansion of thecustomer base due to the newly released services such as T-3MT and RozettaMetamsource are expected to gradually emerge
from November onward, and orders received from the fourth quarter onward are expected to recover moderately.
In the HT business, which undertakes manual tasks, sales and profits continued to decrease year on year, although there is aconspicuous trend of recovery from the bottom of August due to the resumption of economic activities and the penetration of
web-based training in the mainstay translation business and language training. A full-fledged recovery is expected to take time.
The interpretation business, which conducts on a face-to-face and group basis, is greatly affected by restrictions on entry into
Japan, restrictions on travel overseas, and requests for voluntary restraint on overseas travel. As a result, the timing of therecovery is uncertain.
The business forecasts are based on the results and circumstances that were actually affected by the COVID-19 pandemic up to
October 15, 2020. We do not make any predictions about the future medical, political, or economic outlook for the COVID-19
pandemic.
－ 3 －Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 29, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
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
Income taxes payable
Provision for bonuses
Advances received
Other
Total current liabilities
Non-current liabilities
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
Share subscription rights
Total net assets
Total liabilities and net assets－ 4 －Current second quarter(August 31, 2020)

991,056
427,847
29,045
210,151(13,151)
1,644,950

2,302,974
312,263
31,988111,512(7,656)
2,751,083

514,666
40,939555,605

434,674
58,353493,028

74,992738,697
574,926446
1,389,062
164,287
2,108,955
3,753,905

63,612
1,120,636
487,871
13,9491,686,069
154,045
2,333,143
5,084,226

88,469280,000
237,655
34,45750,652
696,169
430,347
1,817,750

51,511400,000
234,428
58,802
54,944
867,449
347,2222,014,358

432,083－
432,0832,249,833

303,652
38,093
341,745
2,356,104

253,565
1,232,754
18,525(861)
1,503,983
89
1,504,072
3,753,905

783,511
1,762,699
141,537(861)
2,686,886
41,2352,728,122
5,084,226

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the Six-month Period)(Thousands of yen)Previous second quarter(From March 1, 2019
To August 31, 2019)
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
Difference in consumption tax
Other
Total non-operating income
Non-operating expenses
Interest expenses
Stock issuance expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Special income
Gain on reversal of share subscription rights
Total special income
Special loss
Loss on retirement of non-current assets
Total special loss
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

Current second quarter(From March 1, 2020
to August 31, 2020)

1,935,744
665,348
1,270,395

1,997,838
648,482
1,349,356

314,439
14,288631,889
960,617309,778

408,453
2,418
715,694
1,126,566
222,789

150
10
1,425
－
552
2,138

19
8
2,907
1,429
1,502
5,867

863
－
133
－
997
310,918

1,820
38,116
156
11,82851,922
176,735

369
369

－
－

38,07938,079273,208
96,752
176,456
7,746
168,71000176,734
53,723123,011－
123,011(Quarterly Consolidated Statements of Comprehensive Income)(For the Six-month Period)(Thousands of yen)Previous second quarter(From March 1, 2019
To August 31, 2019)
Net income
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests－ 5 －Current second quarter(From March 1, 2020
to August 31, 2020)

176,456
176,456

123,011
123,011

168,710
7,746

123,011－

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)Previous second quarter(From March 1, 2019
To August 31, 2019)
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses
Interest and dividend income
Loss on retirement of non-current assets
Gain on reversal of share subscription rights
Interest expenses
Stock issuance expenses
Increase (decrease) in advances received(Increase) decrease in notes and accounts receivabletrade(Increase) decrease in inventories
Increase (decrease) in trade payables
Other
Sub-totalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Cash flows from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangible assets
Payment for loans receivable
Proceeds from loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments for lease and guarantee deposits
Collection of lease and guarantee deposits
Cash flows from investing activities
Cash flows from financing activities(Decrease) increase in short-term borrowings
Repayment of long-term debt
Proceeds from issuance of common stock
Proceeds from issuance of common stock upon
exercise of share subscription rights
Proceeds from issuance of share subscription rights
Repayment of lease obligations
Purchase of treasury stock
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the quarter－ 6 －Current second quarter(From March 1, 2020
to August 31, 2020)

273,208180,206
10,631
(799)
6,018
(160)
38,079(369)
863－
248,200

176,734
277,498
11,380(6,378)
4,292
(28)
0
－
1,820
38,116
171,280(52,683)

115,584

18,561(42,714)(50,201)
628,841160(863)(110,995)
16
517,158(2,943)(36,957)(18,439)
731,959
28(1,820)(34,427)
96,714
792,455(125,223)(239,739)(3,300)
1,193
(600)
－
－
1,118
(366,551)(25,972)(502,719)
(650)
731
－
12,910(585)－(516,285)－(115,470)－

120,000(131,666)
1,021,383

2,151

391

－
－
(164)
(113,482)

39,156(764)－
1,048,501

372

286

37,496
851,811889,308

1,324,958
989,128
2,314,086

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
We received the payment in a third-party allotment from CVI Investments, Inc. on July 30, 2020. As a result, common stock andcapital surplus increased by 529,750 thousand yen respectively during the second quarter of the current fiscal year to 783,511
thousand yen and 1,762,699 thousand yen at the end of the second quarter of the current fiscal year.
(Changes in Significant Subsidiaries during the Period)
Event DX Corporation has been included in the scope of consolidation due to its establishment from the second quarter of thecurrent fiscal year.
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)
Tax expenses are calculated by multiplying income before income taxes by a reasonable estimate of the effective tax rate after theapplication of tax effect accounting to income before income taxes for the fiscal year including the second quarter of the current
fiscal year.

－ 7 －Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(Segment Information)[Segment Information]
I. Previous second quarter (From March 1, 2019 To August 31, 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

969,790

740,358

225,595

1,935,744－

1,935,744

40,5304,181

84,126

128,838(128,838)－

1,010,321

744,539309,7212,064,583(128,838)

1,935,744

134,102183,247

22,514

339,864(30,086)

309,778

Total

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer
Total
Segment income(Note)
1. Adjustments to segment income (30,086) thousand yen include elimination of intersegment transactions 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 is adjusted with operating income in the quarterly consolidated statements of income.
II. Current second quarter (From March 1, 2020 to August 31, 2020)
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

MT business

1,416,799

448,524

132,515

1,997,838－

1,997,838

18,2272,106

20,96841,302(41,302)－

1,435,026

450,631

153,483

2,039,141(41,302)

1,997,838

190,956

81,069(5,998)266,027(43,238)

222,789

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer
Total
Segment income(loss)(Note)
1. Adjustments to segment income (loss) of (43,238) thousand yen include elimination of intersegment transactions 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.

－ 8 －Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(Per share Information)
The basis for calculating net income per share and diluted net income per share is as follows.
Previous second quarter(From March 1, 2019
To August 31, 2019)(1) Net income per share

Current second quarter(From March 1, 2020
to August 31, 2020)

16.38 yen

11.84 yen

168,710123,011－－

168,710123,011

10,296,789

10,389,869

15.89 yen

11.54 yen－－

321,991

269,907(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

－

－ 9 －

14th share subscription rights by
resolution of the Board of
Directors held on July 14, 2020
Number of share subscription
rights: 12,188 rights(1,218,800 shares of common
stock)

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
(Significant Subsequent Events)(Establishment of Subsidiary)
In accordance with the resolution of the Board of Directors meeting held on September 2, 2020, we established a subsidiary
to develop and sell virtual overseas travel (patent pending) using cutting-edge technology on September 16, 2020 as follows.
(1) Reason for Establishment of Subsidiary
We have set "Global Ubiquitous" as our corporate mission. We will establish a subsidiary separate from our conventionalorganization to effectively utilize "AI, AR, VR, video distribution solutions, and wearable devices" to realize the same
experience as real overseas travel.
Global Ubiquitous refers to the integration of cutting-edge technologies such as AI, AR (Augmented Reality), VR (Virtual
Reality), 5G/6G/G7 (High-speed, Multiple Connexions), 4K/8K/12K (Super-Resolution), video distribution solutions,robotics, and HA (Human Augmentation) to enable people around the world to interact, work, and enjoy their lives "withanyone anytime, anywhere without linguistic barriers."(2) Overview of Subsidiaries
1) Company name: Travel DX Corporation
2) Head Office Location: 6-8-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo
3) Representative: Junichi Goishi, Representative Director and CEO
4) Description of business: Development and sales of virtual overseas travel (patent pending)5) Common stock: 200,000 thousand yen6) Date of establishment: September 16, 2020
7) Fiscal year-end: End of February8) Shareholding ratio: Rozetta Corp. 100%(Capital and Business Alliance)
At the meeting of the Board of Directors held on August 25, 2020, we resolved to enter into a capital and business alliancewith donut robotics Co., Ltd., and concluded a capital and business alliance agreement on September 23, 2020.
(1) Purpose of the capital and business alliance
We have decided to enter into a capital and business alliance to share the dreams of solving global social problems andchange the world between Rozetta, which aims to realize "Global Ubiquitous," which enables people around the world tointeract freely with anyone anytime, anywhere without language barriers, and donut robotics, which has the goal of changing
the world by developing "a robot with digital intelligence and a realistic body."(2) Details of the capital and business alliance1) Details of the business alliance
Scope of the alliance is not limited to a specific product or service, and we will cooperate over the broad range of our future
activities.
2) Details of the capital alliance
We acquired common stock to be issued through a third-party allocation on September 25, 2020 for 300,000 thousand yen.
The amount per share and the shareholding ratio after the acquisition will not be disclosed in light of the intention of thecounterparty. The amount per share has been determined after discussion taking into consideration the business plan, etc.
The shareholding ratio after the acquisition is about the extent that it does not fall under the category of an associate.
(3) Overview of the counterparty to the capital and business alliance1) Company name: donut robotics Co., Ltd.
2) Location: 2-6-7, Minami-Aoyama, Minato-ku, Tokyo
3) Representative: Taisuke Ono, CEO
4) Business description: Development and sales of robots and smart masks5) Common stock: 85,100 thousand yen6) Date of establishment: January 4, 2016

－ 10 －

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
In addition, at the meeting of the Board of Directors held on September 3, 2020, we resolved to enter into a capital andbusiness alliance with p2p Co., Ltd., and concluded a capital and business alliance agreement on October 9, 2020.
(1) Purpose of the capital and business alliance
As mentioned earlier, we have set the goal of achieving "Global Ubiquitous" as our corporate mission. Among these, we
decided to enter into a capital and business alliance with p2p Co., Ltd., which specializes in speech and video distribution
solutions (WebRTC, SIP, PBX, etc.), for the purpose of system development.
(2) Details of the capital and business alliance1) Details of the business alliance
We will enter into a capital and business alliance to develop systems for achieving Global Ubiquitous.
2) Details of the capital alliance
We acquired common stock to be issued through a third-party allocation on October 12, 2020 for 200,000 thousand yen. The
amount per share will not be disclosed in light of the intention of the counterparty. The amount per share has been
determined after discussion taking into consideration the business plan, etc. In addition, the shareholding ratio after theacquisition of the shares is 20.0%, which makes p2p Co., Ltd. an entity accounted for using equity method.
(3) Overview of the counterparty to the capital and business alliance1) Company name: p2p Co., Ltd.
2) Location: 3-6-8, Higashi, Shibuya-ku, Tokyo
3) Representative: Akinori Nakajima, CEO
4) Business description: Development of online systems such as speech and video distribution solutions5) Common stock: 9,900 thousand yen6) Date of establishment: July 11, 2019
In addition, we resolved to enter into a capital and business alliance with Synamon Inc. at the meeting of the Board of
Directors held on October 9, 2020, and concluded a capital and business alliance agreement on the same date.
(1) Purpose of the capital and business alliance
Rozetta started to transfer its headquarters functions to the VR in October 2020. At the same time, we established MATRIXCorporation, a joint venture with p2p Co., Ltd. to independently develop a VR office that is free of borders, languages, anddocuments.
On the other hand, Synamon Inc. provides the virtual business platform "NEUTRANS BIZ," which is a pioneer in Japan's
VR space with multi-person connectivity and rich standard functions. We have decided to enter into a capital and businessalliance to develop a global ubiquitous office that is free of borders, languages, and documents based on its VR technology.
(2) Details of the capital and business alliance1) Details of the business alliance
We will enter into a capital and business alliance to develop "VR offices" that are free of borders, languages, and documents,
and to apply VR technology.
2) Details of the capital alliance
The acquisition price will not be disclosed based on the intention of the counterparty. The acquisition price has been
determined after discussion taking into consideration the business plan, etc.
The shareholding ratio after the acquisition is planned to be about the extent that it does not fall under the category of amajor shareholder.
(3) Overview of the counterparty to the capital and business alliance1) Company name: Synamon Inc.
2) Location: 7-22-17, Nishi-Gotanda, Shinagawa-ku, Tokyo
3) Representative: Wataru Takehi, CEO
4) Business description: Planning and development of VR, AR, and MR products, and research and development of XR
technology5) Common stock: 140,500 thousand yen－ 11 －

Rozetta Corp. Consolidated Financial Results
For the Six-month Period of the Fiscal Year Ending February 28, 2021
6) Date of establishment: August 8, 2016
(Establishment of Joint Venture Company)
At the meeting of the Board of Directors held on September 28, 2020, we resolved to enter into a contract with p2p Co., Ltd.
concerning the establishment of a joint venture to develop and provide VR-related products and solutions, and establishedthe joint venture on September 30, 2020.
(1) Reason for Establishment of Joint Venture Company
We have set "Global Ubiquitous" as our corporate mission. To conduct the "VR (virtual space) office that is free of borders,languages, and documents" business, we will establish a joint venture separate from our conventional organization.
(2) Overview of the JV
1) Company name: MATRIX Corporation
2) Head Office Location: 6-8-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo
3) Representative: Junichi Goishi, Representative Director and CEO
4) Business description: Development and provision of VR-related products and solutions5) Common stock: 100,000 thousand yen6) Date of establishment: September 30, 2020
7) Fiscal year-end: End of February8) Shareholding ratio: Rozetta Corp. 50%
p2p Co., Ltd. 50%－ 12 －