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 First Quarter of the Fiscal YearEnding February 28, 2022 [Japanese GAAP]
July 15, 2021
Company name

Listing Market TSE

Rozetta Corp.
Stock Code6182
URL https://www.rozetta.jp
Representative: Junichi Goishi, Representative Director and CEO
Contact: Taketo Arakawa, Director, General Manager of Group Administration Division

TEL 03-5215-5678－

Scheduled date of filing of quarterly report: July 15, 2021
Scheduled date of commencement of 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 First Quarter of the Fiscal Year Ending February 28, 2022 (March 1, 2021 to May 31, 2021)(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
Millions
Millions
Millions%%%%of yenof yenof yenof yenQ1 FY2/22
1,048
(1.8)
62
(65.4)
71(60.7)
49(59.5)Q1 FY2/21
1,067
9.4
181
6.5
181
6.7
121
10.2
(Note) Comprehensive
Millions
Millions（(59.5)%） Q1 FY2/21（10.8%）Q1 FY2/22
49
121
incomeof yenof yenNet income per share

Diluted net income per
share

Yen
4.64
11.80

Yen
4.55
11.51

Q1 FY2/22
Q1 FY2/21(2) Consolidated Financial Position

Q1 FY2/22
FY2/21(Reference) Shareholders’ equity

Total assets
Millions of yen
5,999
6,166
Q1 FY2/22

2,684

Net assets
Millions of yen
2,725
2,790
Millions of yen

FY2/21

Shareholders’ equity ratio
%
44.7
43.8
2,703

Millions of yen

2. Dividend payment
Annual dividend per share

FY2/21
FY2/22
FY2/22 (Forecast)End of Q1
Yen－－

End of Q2
Yen
0.00

End of Q3
Yen－

Year-end
Yen
6.00

0.00

－

7.00

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

Total
Yen
6.00
7.00

3. Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2022 (March 1, 2021 to February 28, 2022)(Percentages indicate year-on-year changes.)
Net income attributable to Net income per
Net sales
Operating income
Ordinary income
owners of parent
shareMillions ofyenFull year

4,910

%
20.5

Millions of

%

yen
610

Millions of

%

yen
450

103.0

Millions of
yen
260

63.3

%

Yen

85.1

21.89

Notes: 1. Revisions to the most recently announced business forecast: None
2. In the consolidated business forecasts and the dividend forecast for the fiscal year ending February 28, 2022, there is asignificant impact of the increase in procurement costs and the increase in the number of shares due to the exercise of theshare subscription rights issued on July 14, 2020. For the purpose of calculating the forecast, we assume non-operating
expenses of 160 million yen and an increase in the total number of shares outstanding by 1,218,800 due to the exercise of
the share subscription rights. Please note that this calculation is based on assumptions at the time this report was prepared.
◆Consolidated Business Forecasts by Segment(Percentages indicate year-on-year changes.)
Net sales
Full year

Operating income

Millions of yen

MT business

3,480

%
23.1

Millions of yen
720

%
110.0

HT business

1,430

14.5

260

36.6

GU business

－

－

(350)

－

Other corporate expenses

－

－

(20)

－

(Note) Effective from the first quarter of the fiscal year under review, the former HT business and the former Crowdsourcing businesshave been integrated and disclosed as the HT business.
This business forecast is based on the assumption that the economic environment is on an extension of the current situation, as it
is impossible to predict the full-fledged recovery period for the decline in business performance and the stagnation in purchasing
activities of client companies that are closely related to overseas due to COVID-19 pandemic and its secondary phenomenon.
In the MT business, we have continued to reduce selling, general and administrative expenses to an appropriate level in light ofthe current order intake (20-40% increase in MT sales) that was launched in the fiscal year ended February 28, 2021.
In addition, in the fiscal year ending February 28, 2022, office cancellation and decrease in depreciation of property, plant andequipment are expected, and the MT business is expected to earn around 720 million yen on an operating income basis.
For the GU business, we have assumed an operating loss of 350 million yen in the calculation of the consolidated business
forecasts. This is the amount that is calculated by converting the operating loss of 168 million yen that occurred about six months
after the commencement of the GU business in the previous fiscal year, to an amount through the entire year, and not set as abusiness forecast. We made a significant transition to the GU business during the fiscal year ended February 28, 2021. For an
overview, please refer to the “Notice Regarding Amendments to Accounting Procedures for the GU Business and Amendments toRelated Documents for the Fiscal Year Ending February 28, 2021 due to the Amendments” disclosed on May 10, 2021.
* 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 and Major Notes, (3) Notes on Quarterly
Consolidated Financial Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated
Financial Statements)" on page 6 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)

Q1 FY2/22

10,657,660

sharesFY2/21

2) Treasury shares at the end of the year

Q1 FY2/22

422

sharesFY2/21

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

Q1 FY2/22

10,657,238

sharesQ1 FY2/21

10,657,660
422
10,330,924

sharessharesshares* 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 (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 Three-month Period ………………………………………………………………………………………

5

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

5(3) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………

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

6(Notes on Significant Changes in Shareholders’ Equity) ………………………………………………………………

6(Changes in Scope of Consolidation or Scope of Equity Method Application) ………………………………………

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

6(Additional Information) ………………………………………………………………………………………………

6(Segment Information) …………………………………………………………………………………………………

8(Business Combinations) ………………………………………………………………………………………………

9(Per share Information) …………………………………………………………………………………………………

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

10

- 1 -

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the first quarter of the current fiscal year (March 1, 2021 to May 31, 2021), the MT business continued to perform
strongly, but there were losses due to upfront investment, such as research and development expenses, in the GU business.
As a result, our group posted net sales of 1,048,738 thousand yen (down 1.8% year on year), operating income of 62,860
thousand yen (down 65.4% year on year), ordinary income of 71,439 thousand yen (down 60.7% year on year), and profit
attributable to owners of parent of 49,437 thousand yen (down 59.5% year on year) for the cumulative first quarter of thecurrent fiscal year.
Net sales of businesses other than the GU business were 1,048,729 thousand yen (down 1.8% year on year), operating
income was 208,919 thousand yen (up 15.0% year on year), and operating income was a record high.
The performance of each business segment is as follows:
Effective from the first quarter of the fiscal year under review, the segment has been changed and the results of Xtra, Inc.,
which had been recorded in the "Crowdsourcing business," have been recorded in the "HT business." Segment information for
the first quarter of the previous fiscal year has been analyzed using the new figures.
1) MT business
As for the MT business, sales were 746,141 thousand yen (up 4.2% year on year) due to continuous strong sales, andsegment income was 170,747 thousand yen (up 34.2% year on year).
2) HT business
As for the HT business, sales were 302,587 thousand yen (down 13.9% year on year), and segment income was 52,163
thousand yen (down 32.0% year on year).
3) GU business
As for the GU business, sales were 8 thousand yen and segment loss was 146,059 thousand yen.
(2) Financial Position(Assets)
Current assets decreased by 153,161 thousand yen from the end of the previous fiscal year to 2,701,738 thousand yen at theend of the first quarter of the current fiscal year. This was mainly due to a decrease of 167,370 thousand yen in cash anddeposits and a decrease of 73,102 thousand yen in notes and accounts receivable. Non-current assets decreased by 14,352
thousand yen from the end of the previous fiscal year to 3,297,585 thousand yen. This was mainly due to a decrease of 40,889
thousand yen in property, plant and equipment and an increase of 22,200 thousand yen in intangible assets.
(Liabilities)
Current liabilities decreased by 102,476 thousand yen from the end of the previous fiscal year to 1,965,688 thousand yen at
the end of the first quarter of the current fiscal year. This was mainly due to an increase of 114,857 thousand yen in advances
received, a decrease of 68,408 thousand yen in accrued expenses, a decrease of 60,294 thousand yen in income taxes payable, adecrease of 49,589 thousand yen in current portion of long-term loans payable, and a decrease of 42,788 thousand yen inaccounts payable-other. Non-current liabilities decreased by 530 thousand yen from the end of the previous fiscal year to
1,307,897 thousand yen. This was mainly due to a decrease of 6,525 thousand yen in lease obligations and an increase of 5,995
thousand yen in long-term loans payable.
(Net assets)
Net assets decreased by 64,506 thousand yen from the end of the previous fiscal year to 2,725,737 thousand yen at the endof the first quarter of the current fiscal year. This was mainly due to a decrease of 45,758 thousand yen in non-controllinginterests due to the acquisition of additional shares of subsidiaries, and an increase of 49,437 thousand yen in retained earnings
due to the recording of profit attributable to owners of parent, despite a decrease of 63,943 thousand yen due to dividends ofsurplus.

- 2 -(3) Consolidated Business Forecasts
Our two management themes for the future are:1) Service-in/UX Brush-up of the GU Business
Spur the development and service-in of the GU business, including YouConnect, Travel DX, VR Music, VR Karaoke, andproject OASIS. Start the service as fast as possible and perform agile brush-up of UX.
2) Expansion of cash cow in the MT businessWe will expand the cash cow of the MT business, such as the T-4OO and T-3MT, by selecting and concentrating
management resources.
We will allocate resources (streamline selling, general and administrative expenses, and optimize marketing activities) in
response to the annual sales growth rate of double-digit percent, and in the fiscal year ending February 28, 2022, we will
establish a cash cow business with an operating income of about 700 million yen per year.
The impact of COVID-19 pandemic on our business results is as follows.
In the first quarter of the MT business, there was a certain effect due to the shift to "new sales activities in the event of
COVID-19 pandemic (*)" that we had attempted since the fiscal year ended February 28, 2021.
In particular, the business divisions that handle the mainstay products T-4OO and T-3MT continued to perform online
against the orders received plan that served as the basis for the business forecasts, and the situation was firm.
* From our passive style, which was highly dependent on the creation of leads through previous exhibitions, we mainly create
active and active contact opportunities, such as by improving business operations, proposing a product mix to existingcustomers, and holding webinars.
In addition, orders for the new conferencing speech translation tool “Onyaku” are expanding, and it is becoming one of ourcore products.
There is a certain lag between the improvement in orders received and the reflection of the top line in net sales. As a result,the amount of the business forecast is planned to expand monthly profits and losses from the beginning of the fiscal year to theend of the fiscal year. In this situation, the MT segment’s annual performance achievement ratio of 21.44% as of the firstquarter is online compared to the plan that we initially set.
In the fiscal year ended February 28, 2021, the HT business, which undertakes manual tasks, was significantly affected by
COVID-19 pandemic. However, as for the situation related to the former HT business, such as translation, interpretation, andtraining in the HT business, total sales have been on a gradual recovery trend after bottoming out in August of the previous
fiscal year, and although sales in the first quarter of the fiscal year ending February 28, 2022 are expected to remain unchanged
from the same period of the previous fiscal year, sales after that period are expected to exceed those in the same period of theprevious fiscal year.
The forecasts here are based on actual results and conditions actually affected by COVID-19 pandemic as of July 15, 2021,
and do not incorporate any predictions, such as when the medical, political, or economic problems caused by COVID-19
pandemic will subside.

- 3 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2021)
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
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
Share subscription rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 4 -Current first quarter(May 31, 2021)

2,276,395
453,091
33,679102,466(10,732)
2,854,899

2,109,024
379,988
40,879181,330(9,484)2,701,738

431,406

390,516

52,231
1,065,330
710,552
30,2691,858,385

46,541
1,317,563
487,900
28,5801,880,585

664,923※ 357,222
1,022,146
3,311,938
6,166,837

665,795※ 360,687
1,026,483
3,297,585
5,999,323

94,144
100,000
412,80944,000102,227
58,223816,865
439,895
2,068,165

54,248100,000
363,220
44,00041,933111,007931,722
319,557
1,965,688

176,000
1,038,980
93,4481,308,428
3,376,594

176,000
1,044,975
86,922
1,307,897
3,273,586

783,511
1,761,699
158,988(861)
2,703,337
41,14645,7582,790,243
6,166,837

783,5111,757,458
144,482(861)
2,684,590
41,146－2,725,737
5,999,323

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the Three-month Period)(Thousands of yen)Previous first quarter(From March 1, 2020
to May 31, 2020)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
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
Difference in consumption tax
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of investments accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Special income
Reversal of allowance for doubtful accounts
Total special income
Income before income taxes
Income taxes
Net income
Net income attributable to owners of parent

Current first quarter(From March 1, 2021
to May 31, 2021)

1,067,438
342,014725,423

1,048,738
346,296
702,441

163,978
29,962
3,846
345,999543,785
181,637

196,264
41,1302,208
399,977
639,581
62,860

6
64
－
690
293
1,054

11
729
9,210
－
9,551
19,502

811

3,489

－

5,961

1
813
181,879

1,471
10,922
71,439－－
181,879
59,930121,949
121,949200
200
71,63922,20249,43749,437(Quarterly Consolidated Statements of Comprehensive Income)(For the Three-month Period)(Thousands of yen)Previous first quarter(From March 1, 2020
to May 31, 2020)
Net income
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests- 5 -Current first quarter(From March 1, 2021
to May 31, 2021)

121,949
121,949

49,43749,437

121,949－

49,437－

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
We acquired additional shares of MATRIX Corporation, a consolidated subsidiary, on March 1, 2021, making it a wholly
owned subsidiary. As a result, capital surplus decreased by 4,241 thousand yen to 1,757,458 thousand yen at the end of the firstquarter of the current fiscal year.
(Changes in Scope of Consolidation or Scope of Equity Method Application)(Significant Changes in Scope of Consolidation)
Effective from the first quarter of the fiscal year under review, Rozetta MT Corporation has been included in the scope of
consolidation due to the establishment of Rozetta MT Corporation.
(Significant Changes in Scope of Equity Method Application)
Effective from the first quarter of the fiscal year under review, VR Music Corporation, which was a newly contributed
entity, has been included in the scope of application of the equity method. Since the deemed acquisition date is May 31,
2021, no share of profit (loss) of investments accounted for using equity method has been recognized.
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)
Income taxes are calculated by multiplying the income before income taxes by the forecasted effective tax rate, which iscomputed by matching the forecasted yearly income taxes with the forecasted yearly income before taxes.
(Additional Information)(Transition to a holding company structure through a company split)
At the meeting of the Board of Directors held on January 14, 2021, in order to transition to a holding company structure,
we resolved to establish a split preparation company and transit to a holding company structure through a company split, andestablished a split preparation company (Rozetta MT Corporation) on March 1, 2021.
At the meeting of the Board of Directors held on April 14, 2021, in order to transition to a holding company structure on
September 1, 2021 (planned), we resolved to conclude an absorption-type split agreement with Rozetta MT Corp. andSignans Inc., which are our wholly owned subsidiaries, with Rozetta Corp. as the split company, Rozetta MT Corp., andSignans Inc. as the successor company, and concluded the agreement on the same date.
With regard to the transition to a holding company structure, relevant proposals were approved at our annual generalshareholders meeting held on May 25, 2021.
(1) Purpose of transition to a holding company structure
Since our founding, we have developed AI automatic translation under our corporate mission of "liberate Japan fromlinguistic impairment." At present, by integrating cutting-edge technologies such as AI, AR (Augmented Reality), VR(Virtual Reality), 5G/6G/7G (high-speed, large-capacity, multi-simultaneous connection communication), 4K/8K/12K(super-resolution video), video distribution solutions, robotics, and HA (Human Augmentation), we aim to realize "global
ubiquitous" where people across the globe can interact, live, work, and enjoy their lives "with anyone in any language
anytime, anywhere."
In order for our group to further improve corporate value and achieve sustainable growth in the future, we believe that it isnecessary to reconstruct our group structure so that we can further improve management efficiency and respond flexibly tochanges in the market environment. By transition to a holding company structure, we will strengthen the planning anddrafting functions of Group management strategies. At the same time, we will establish a flexible organizational structure to
respond flexibly to the market environment and expand our business through M&A. As a result, we believe that we can
improve corporate value and achieve sustainable growth, and therefore we have decided to transition to a holding company
structure.

- 6 -(2) Overview of the Successor Company<Successor Company 1>
1) Company name: Rozetta MT Corporation
2) Location: 3-7-1, Kanda Jinbocho, Chioda-ku, Tokyo
3) Representative: Maro Watanabe, CEO
4) Business description: Development/management of super-high-precision AI automatic translation
5) Common stock: 50,000 thousand yen6) Date of establishment: March 1, 2021
7) Shareholding ratio: Rozetta Corp. 100%
(Note) Company name is planned to be changed to Rozetta Corp. on September 1, 2021.
<Successor Company 2>
1) Company name: Signans Inc.
2) Location: 6-8-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo
3) Representative: Takashi Okuyama, CEO
4) Business description: Development/provision of xR system
5) Common stock: 10,000 thousand yen6) Date of establishment: November 13, 2020
7) Shareholding ratio: Rozetta Corp. 100%(3) Method of transition to a holding company structure
As for the method of shifting to a holding company structure, we will establish Rozetta MT Corp. as a split preparationcompany, which is our wholly owned subsidiary, and adopt an absorption-type split, with Rozetta Corp. as the absorption
split company and Rozetta MT Corp. and Signans Inc., which is our wholly owned subsidiary, as the absorption-split
successor companies which take over the MT business.
We plan to continue to list on the stock exchange as a holding company that carries out the Group’s governance functions.
We plan to change the corporate name from Rozetta Corp. to MetaReal Corp. on September 1, 2021.
(4) Transition Schedule
Meeting of the Board of Directors to approve an establishment of the split preparation company: January 14, 2021
Establishment of the split preparation company: March 1, 2021
Meeting of the Board of Directors to conclude the absorption-type split agreement: April 14, 2021
Conclusion of the absorption-type split agreement: April 14, 2021
Meeting of shareholders to approve the absorption-type split agreement: May 25, 2021
Transition to a holding company structure: September 1, 2021 (planned)- 7 -(Segment Information)[Segment Information]
I Previous first quarter (From March 1, 2020 to May 31, 2020)
1. Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments
Adjustment(Note 1)
Total

Amounts on the
consolidated
financialstatements(Note 2)MT businessHT business

716,029

351,408

1,067,438－

1,067,438

7,784

15,51523,300(23,300)－

723,813366,924

1,090,738(23,300)

1,067,438

127,22176,766

203,988(22,350)

181,637

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer
Total
Segment income

Notes: 1. Adjustments to segment income of (22,350) thousand yen include eliminations 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 first quarter (From March 1, 2021 to May 31, 2021)
1. Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments
Adjustment(Note 1)GU business

Total

Amounts on the
consolidated
financialstatements(Note 2)MT businessHT business

746,141

302,5878

1,048,738－

1,048,738

Intersegment sales
or transfer

1,360

7,759

－

9,119

(9,119)－Total

747,501

310,3468

1,057,857(9,119)1,048,738

170,747

52,163(146,059)

76,852(13,991)

62,860Net sales
Net sales tounaffiliatedcustomers

Segment income(loss)

Notes: 1. Adjustments to segment income (loss) of (13,991) thousand yen include eliminations 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.
2. Segment income (loss) is adjusted with operating income in the quarterly consolidated statements of income.
2. Changes in reportable segments
Previously, our group had four reportable segments: the MT business, the HT business, the Crowdsourcing business,and the GU business. However, from the first quarter of the fiscal year under review, we have decided to change thereportable segments to the MT business, the HT business, and the GU business. This is because there is no longer aclear difference between crowdsourcing and HT at present, and in light of size and growth potential, there is no longer apoint to separate.
Segment information for the first quarter of the previous fiscal year has been prepared using the new segmentation
method and is described on "1. Information on net sales and income (loss) by reportable segment." of "I Previous firstquarter (From March 1, 2020 to May 31, 2020)."- 8 -(Business Combinations)(Transactions under Common Control)(Additional Acquisition of Shares of Subsidiaries)
We acquired additional outstanding shares of MATRIX Corporation, our consolidated subsidiary, on March 1, 2021, in
accordance with the resolution of the Board of Directors at the meeting held on February 26, 2021, making it a wholly
owned subsidiary.
1. Overview of Transactions(1) Company name and business description of the companies subject to the business combination
Name of the company subject to business combination: MATRIX Corporation
Description of business: VR business(2) Effective date of the business combination
March 1, 2021
(3) Legal form of the business combination
Acquisition of shares from non-controlling interests(4) Company name following the business combination
There is no change.
(5) Other matters related to overview of the transaction
We have acquired all the shares of MATRIX Corporation from P2P Co., Ltd. (of which name was changed fromp2p Co., Ltd. on March 25, 2021), which is our equity method affiliate. This was made possible by the conversionof MATRIX Corporation into a wholly owned subsidiary to meet the request of P2P Corporation and strengthen theGroup management structure.
2. Overview of accounting treatment
In accordance with the "Accounting Standards for Business Combinations" (ASBJ Statement No. 21, January 16,2019) and the "Implementation Guidance on Accounting Standards for Business Combinations and AccountingStandards for Business Divestitures" (ASBJ Guidance No. 10, January 16, 2019), transactions under common control
are treated as transactions with non-controlling interests.
3. Purchase of additional shares of subsidiaries
Breakdown of the acquisition cost
Consideration paid for acquisition: cash of 50,000 thousand yen
Acquisition cost: 50,000 thousand yen
4. Changes in equity due to transactions with non-controlling interests(1) Major changes in capital surplus
Purchase of additional shares of subsidiaries(2) Capital surplus decreased due to transactions with non-controlling interests
4,241 thousand yen- 9 -(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 first quarter(From March 1, 2020
to May 31, 2020)

Current first quarter(From March 1, 2021
to May 31, 2021)

11.80 yen

4.64 yen

121,949

49,437－－

121,949

49,437

10,330,924

10,657,238

11.51 yen

4.55 yen－－

261,002

216,481(1) Net income per share(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
(Significant Subsequent Events)
Not applicable.

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