This document is an English translation of a statement initially written in Japanese.
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 Fiscal Year Ended February 28, 2019 [Japanese GAAP]
April 12, 2019
Listing Market TSE
Company name
Stock Code
Representative

6182(Title)Contact(Title)Rozetta Corp.
URL https://www.rozetta.jp
Representative Director and CEO
Executive Officer, General
Manager of Group
Administration Division

Scheduled date of ordinary
general shareholders’May 29, 2019
meeting
Scheduled date of filing of
May 30, 2019
annual securities report:
Preparation of supplementarymaterials for financial results: Yes
Holding of financial results
briefing: Yes(Name) Junichi Goishi(Name) Makoto Akita
Scheduled date ofcommencement ofdividend payment:

TEL +81-3-6685-9570-(Figures are rounded down to the nearest million yen)
Consolidated Financial Results for the Fiscal Year Ended February 28, 2019 (March 1, 2018-February 28, 2019)(1) Consolidated Results of Operation(Percentages indicate year-on-year changes.)
Net income (loss)
Net sales
Operating income (loss)
Ordinary income (loss)
attributable to owners ofparentMillions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
FY2/19
2,908
44.9
338
337
255
FY2/18
2,006
5.2
(12)
(14)
(1,214)(Note) Comprehensive
Millions
Millions
FY2/19255(-%)
FY2/18(1,214)(-%)
incomeof yenof yenNet income (loss) per share

Diluted net income per
share

Yen
25.26
(121.71)

FY2/19FY2/18(Reference) Income onequity method investments

FY2/19(2) Consolidated Financial Position
Total assets
Millions of yen
FY2/192,642
FY2/182,089(Reference)
FY2/19
1,191
Shareholders' equity

Yen
24.25
-

Millionsof yenRatio of net
income (loss) toequity%24.5(79.1)
FY2/18

Ratio of ordinary Ratio of operating
income (loss) to income (loss) tototal assets
net sales
%
%
14.3
11.6
(0.6)
(0.6)
Millions ofyen

Net assets
Shareholders' equity ratio
Millions of yen
%
1,194
45.1
894
42.8
Millions
FY2/18894
of yenNet asset per share
Yen
115.73
89.07
Millions ofyen(3) Consolidated Cash Flows
Operating activities
FY2/19FY2/18Millions of yen
825
81

Investing activities
Millions of yen
(696)
(550)

Financing activities
Millions of yen
(232)
426

Cash and cash equivalent at
the end of the year
Millions of yen
851
955

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2/18
FY2/19

-

0.00
0.00

-

0.00
0.00

0.00
0.00

FY2/20 (Forecast)

-

0.00

-

0.00

0.00

Ratio of
Total amount Payout ratio
dividends to net
of dividends (Consolidated)assets(Consolidated)
Millions%%of yen0-

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending February 29, 2020 (March 1, 2019 - February 29, 2020)
Since our group entered the significant reform period in the 4th quarter of the fiscal year ended February 28, 2018, the fluctuationof our business performance is so considerable that we cannot forecast our future results; therefore, we refrain from disclosing
earnings forecasts as fixed figures.
For the consolidated business forecasts for the fiscal year ending February 29, 2020, we announced only the minimum figures, forexample, by indicating record-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): None

(2) Changes in accounting policies and changes or restatement of accounting estimates
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. Restatement of prior period financial statements after error corrections: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of
the period (including treasury stock)
2. Treasury shares at the end of the year
3. Average number of shares outstanding
during the period

FY2/1910,296,260Shares

FY2/1810,042,260Shares

FY2/19286

FY2/18176 Shares

FY2/1910,127,512Shares

FY2/189,982,088Shares

Shares(Reference) Summary of Non-consolidated Results of Operation
Non-consolidated Financial Results for FY2/19 (March 1, 2018-February 28, 2019)(1) Non-Consolidated Results of Operations(Percentages indicate year-on-year changes.)
Net sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Millions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
FY2/19
1,328
54.6
19
15
27
FY2/18
858
6.1
(71)
(75)
(1,287)-

FY2/19FY2/18Net income (loss) per
Diluted net income per share
share
Yen
Yen
2.76
2.65
(129.02)-(2) Non-consolidated Financial Position
Total assets
Net assets
Millions of yen
Millions of yen
FY2/192,380630
FY2/18
1,823
561(Reference)
Millions
FY2/19630
FY2/18
Shareholders' equityof yenShareholders' equity ratio
Net asset per share
%
Yen
26.5
61.22
30.8
55.88
Millions of561
yen*This consolidated financial report is not subject to audit by a certified public accountant or an auditing firm.
*Explanations and other special notes concerning the appropriate use of business forecasts(Method of Obtaining Financial Results Briefing Materials)
Supplementary materials for financial results were disclosed on the TDnet on the same date. We also plan to hold a briefing for
institutional investors and analysts on Wednesday, April 17, 2019.
(Changes in Presentation of Dates)
Effective from the fiscal year ended February 28, 2019, the date has been changed from the Japanese calendar to the Westerncalendar.

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019

○ Table of Contents of the Appendix
1. Results of Operations and Financial Position.
(1) Overview of Results of Operation and Financial Position(2) Consolidated Business Forecasts
2. Basic Approach to Selection of Accounting Standards
3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Changes in Shareholders’ Equity(4) Consolidated Statements of Cash Flows(5) Notes on Consolidated Financial Statements(Notes on Going Concern Assumptions)(Segment Information)(Per share Information)(Significant Subsequent Events)

-1-

2
2
3
3
4
4
6
6
7
8
10
11
11
11
14
14

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019

1. Overview of Results of Operation(1) Overview of Results of Operation and Financial Position for the Fiscal Year under Review
1 Overview of Results of Operation for the Fiscal Year under Review
During the fiscal year under review, orders received from the T-4OO (ver.2) released in November 2017 in the MT business
continued to increase significantly, and we have worked to strengthen our organizational structure by making upfront investments
to rapidly expand our business in the future, such as increasing the number of employees in all divisions, including development
and sales divisions.
As a result, our group posted net sales of 2,908,042 thousand yen (up 44.9% year on year), operating income of 338,044
thousand yen (loss of 12,750 thousand yen in the previous fiscal year), ordinary income of 337,316 thousand yen (loss of
14,297 thousand yen in the previous fiscal year), and profit attributable to owners of parent of 255,869 thousand yen (loss of
1,214,926 thousand yen in the previous fiscal year) for the current fiscal year.
The performance of each business segment is as follows:① MT business
As for the MT business, sales were 916,908 thousand yen (up 231.6% year on year), and segment income was 124,783 thousandyen (loss of 304 thousand yen in the previous fiscal year), as a result of a significant increase in orders received for “T-4OO(ver.2)” which was released in November 2017.
② HT business
As for the HT business, sales were 1,593,020 thousand yen (up 4.9% year on year), and segment income was 258,509 thousandyen (up 55.4% year on year) due to rationalization of SG & A expenses.
③ Crowdsourcing business
As for the crowdsourcing business, Quicktranslate, Inc. joined our group in the fourth quarter of the previous fiscal year while
we recorded the amortization of goodwill of anydooR, Inc. in the previous fiscal year. Consequently, sales were 398,113 thousandyen (up 87.5% year on year) and segment income was 80,253 thousand yen (loss of 92,594 thousand yen in the previous fiscal
year).
2 Overview of Financial Position for the Fiscal Year under Review
AssetsTotal assets at the end of the fiscal year under review increased by 553,356 thousand yen from the end of the previous fiscal
year to 2,642,850 thousand yen.
Current assets decreased by 17,632 thousand yen from the end of the previous fiscal year to 1,357,505 thousand yen. This was
mainly due to an increase of 92,414 thousand yen in notes and accounts receivable.
Non-current assets increased by 570,988 thousand yen from the end of the previous fiscal year to 1,285,345 thousand yen. Thiswas mainly attributable to an increase of 432,733 thousand yen in intangible assets, an increase of 128,687 thousand yen insoftware, and an increase of 124,595 thousand yen in tools, furniture and fixtures due to upfront investment in development
costs.
Liabilities
Liabilities at the end of the fiscal year under review increased by 254,088 thousand yen from the end of the previous fiscal year
to 1,448,684 thousand yen. This was mainly due to an increase of 303,508 thousand yen in advances received, an increase of
93,634 thousand yen in income taxes payable, and an increase of 29,675 thousand yen in notes and accounts payable-trade.
Net assets
Net assets at the end of the fiscal year under review increased by 299,267 thousand yen from the end of the previous fiscal year
to 1,194,166 thousand yen. This was mainly due to an increase in retained earnings of 255,869 thousand yen resulting from therecording of net income of 255,075 thousand yen.
3 Overview of Cash Flows for the Fiscal Year under Review
Net cash provided by operating activities was 825,002 thousand yen, net cash used in investing activities was 696,262
thousand yen, and net cash used in financing activities was 232,507 thousand yen. As a result, cash and cash equivalents(hereinafter "cash") at the end of the fiscal year under review decreased 104,028 thousand yen from the end of the previous
fiscal year to 851,811 thousand yen.
-2-

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
Cash flows from operating activities
Net cash provided by operating activities was 825,002 thousand yen. Cash inflow was mainly attributable to income before
income taxes of 346,667 thousand yen, depreciation and amortization of 203,298 thousand yen, and an increase in advances
received of 303,508 thousand yen. Cash outflow was mainly attributable to an increase in notes and accounts receivable-tradeof 92,414 thousand yen and an increase in inventories of 21,251 thousand yen.
Cash flows from investing activities
Net cash used in investing activities was 696,262 thousand yen. Cash outflow included purchase of intangible assets of
573,468 thousand yen, purchase of property, plant and equipment of 164,223 thousand yen, and loan disbursements of 1,300
thousand yen.
Cash flows from financing activities
Net cash used in financing activities was 232,507 thousand yen. This was mainly attributable to repayments of long-term debts
of 261,759 thousand yen and proceeds from issuance of shares due to the exercise of share subscription rights of 41,402
thousand yen.
(2) Consolidated Business Forecasts
Our two management themes for the future are:
① Spur the development/sales of T-4OO
As for the development, we will further improve the accuracy of translations, and as for the sales, we will greatly expand our sales
structure, to accelerate sales growth as we complete our 15 years of upfront investment and enter the investment-return period.
② Entry into the speech-to-speech machine translation service
In addition to the T-4OO, a translation service for business technical documents, we will enter into speech-to-speech machinetranslation service in the fiscal year ending February 29, 2020.
During the fiscal year ending February 29, 2020, we are aiming to launch prototype models or some form of early-stage services of
T-4PO, a wearable interpretation device, which has been our vision since our founding.
The business forecasts are as follows.
The MT Business entered a period of rapid growth since the fourth quarter of the previous fiscal year which is when the "T-4OO(ver.2)" was released in November 2017. As a result, we are concentrating our management policy on maximizing medium-to longterm growth rather than short-term profits. For the time being, we will not disclose the forecast as a fixed value until the sales
growth rate of the MT business settles down (roughly 150% compared to the previous year), in order not to adjust expenses inaccordance 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 will only announce theminimum figures, for example, by indicating record-high sales (2,908 million yen) or over and record-high profit (operating incomeof 338 million yen) or over.

2. Basic Approach to Selection of Accounting Standards
In light of the comparability of consolidated financial statements between periods and between companies, our group intends toprepare consolidated financial statements under Japanese GAAP for the time being. With regard to the application of theInternational Financial Reporting Standards (IFRS), our policy is to respond appropriately while taking into consideration various
circumstances in Japan and overseas.

-3-

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventories
Deferred tax asset
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Building and structure
Tools, furniture and fixtures
Construction in Progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Long-term loan
Insurance reserve
Deferred tax asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-4-

Current fiscal year
(February 28, 2019)

973,632
268,101
29,985
26,214
87,954(10,751)
1,375,137

853,378
360,515
51,23734,24766,716(8,589)1,357,505

13,239226,776
29,631(109,457)
160,190

16,747351,372
34,476(166,106)236,489

110,776
303,673
97,956492
512,898

89,513432,361
423,287468
945,631536
15,6506,214
23,641(4,775)41,268714,357
2,089,494

1,009
22,54986,638(6,974)103,224
1,285,345
2,642,850

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
(Thousands of yen)Previous fiscal year
(February 28, 2018)
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
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-5-

Current fiscal year
(February 28, 2019)

111,286
14,940260,140
17,367
20,389136,800
108,278
669,204

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

525,391
525,391
1,194,595

292,171
292,171
1,448,684

230,093
1,210,282(545,709)(225)
894,440458
894,898
2,089,494

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

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)Previous fiscal year
From March 1, 2017
To February 28, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors
Salaries, allowances and bonuses
Advertising expenses
Provision for doubtful receivables
Provision for bonuses
Other
Total selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Subsidy income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision for doubtful receivables
Other
Total non-operating expenses
Ordinary income (loss)
Special income
Surrender value of insurance
Income on sales of fixed assets
Gain on sale of investment securities
Total special income
Special loss
Loss on retirement of noncurrent assets
Impairment loss
Total special loss
Income (loss) before income taxes
Income taxes – current
Income taxes - deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of parent
company-6-

Current fiscal year
From March 1, 2018
To February 28, 20192,006,984
917,998
1,088,985

2,908,042
1,123,670
1,784,371

143,410305,802100,204
10,066
57,710484,542
1,101,736(12,750)

120,392
511,309
183,932247
19,606
610,839
1,446,327
338,044

32
600
138
1,032
1,803

55
18
10
2,233
2,317

3,103
239
6
3,350
(14,297)

2,723
321
3,045
337,316-

11,513786
199
12,4991,138,789
1,138,789(1,153,087)
46,653
15,18561,839(1,214,926)
-

3,149
3,149
346,667
116,054(24,462)
91,591
255,075(793)(1,214,926)

255,869

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
Consolidated Statements of Comprehensive Income(Thousands of yen)Previous fiscal year
From March 1, 2017
To February 28, 2018
Net income (loss)
Comprehensive income (loss)
Total comprehensive income (loss) attributable to:
Owners of the parent company
Non-controlling interests-7-

Current fiscal year
From March 1, 2018
To February 28, 2019

(1,214,926)(1,214,926)

255,075
255,075(1,214,926)-

255,869(793)

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019(3) Consolidated Statements of Changes in Shareholders’ Equity
Previous fiscal year (From March 1, 2017 to February 28, 2018)(Thousands of yen)
Shareholders' equity
Capital stock
Opening balance

Capital surplus

Retained earnings

221,547

1,201,735

8,546

8,546

755,974

Treasury stock(151)

Total shareholders'equity2,179,106

Changes of items during the year
Issuance of new shares
Dividend of surplus
Loss attributable to owners ofparent company

17,092(44,764)(44,764)(1,214,926)(1,214,926)

Purchase of treasury stock(74)

Changes in scope of consolidation(41,992)(74)(41,992)

Net change in items other thanshareholders' equity
Total changes in current termEnding balance

8,546

8,546

(1,301,683)(74)(1,284,665)

230,093

1,210,282(545,709)(225)

894,440

Share subscription
rightsOpening balance

Non-controllinginterests

369

Total net assets-

2,179,475

Change during the year
Issuance of new shares

17,092

Dividend of surplus(44,764)

Loss attributable to owners ofparent company(1,214,926)

Purchase of treasury stock(74)

Changes in scope of consolidation
Net change in items other thanshareholders' equity(41,992)
89

89

Total changes in current term

89

(1,284,576)

Ending balance

458

-

-8-

894,898

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
Current fiscal year (From March 1, 2018 to February 28, 2019)(Thousands of yen)
Shareholders' equity
Capital stock
Opening balance

Capital surplus

Retained earnings

230,093

1,210,282

20,701

20,701(545,709)

Treasury stock(225)

Total shareholders'equity894,440

Change during the year
Issuance of new shares
Net income attributable to ownersof parent

41,402
255,869

Purchase of treasury stock

255,869
(210)

(210)

Net change in items other thanshareholders' equity
Total changes in current term

20,701

20,701

255,869(210)

297,061

Ending balance

250,794

1,230,983(289,839)(435)

1,191,502

Share subscription
rightsOpening balance

Non-controllinginterests

458

Total net assets-

894,898

Change during the year
Issuance of new shares

41,402

Net income attributable to ownersof parent

255,869

Purchase of treasury stock(210)

Net change in items other thanshareholders' equity
Total changes in current termEnding balance

458

2,206

2,206

2,206

299,2672,206

1,194,166-9-

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019(4) Consolidated Statements of Cash Flows(Thousands of yen)Previous fiscal year
From March 1, 2017
To February 28, 2018
Cash-flow from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses
Interest and dividend income
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Interest expenses
Loss (gain) on insurance cancellation
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
Corporation taxes refunded
Net cash provided by operating activities
Cash-flow from investing activities
Expenditure from acquisition of fixed assets
Proceeds from sale of fixed assets
Expenditure from acquisition of intangible assets
Proceeds from sales of investment securities
Expenditure from increase in subsidiaries arising fromchange in scope of consolidation
Payment for loans receivable
Proceeds from loans receivable
Expenditure due to fixed term deposit
Proceeds from refund of fixed term deposit
Proceeds from cancellation of insurance funds
Net cash used in investing activities
Cash-flow from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term debt
Expenditure from repayment of long-term debt
Proceeds from issuance of common stock upon
exercise of share subscription rights
Proceeds from issuance of share subscription rights
Dividends paid
Purchase of treasury stock
Proceeds from issuance to non-controlling interests
Net cash provided by (used in) 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 year

Current fiscal year
From March 1, 2018
To February 28, 2019

(1,153,087)
100,11970,0691,138,789
9,179
4,527
(32)
3,103

- 10 -

31,127

346,667
203,298
21,262
37
6,187
(73)
(199)
(786)
3,149
2,723
(11,513)
303,508(17,446)(92,414)(6,018)16,333(44,795)
151,87032(3,103)(66,843)
81,955(21,251)
29,67538,160828,43173(2,723)(29,064)
28,285825,002(128,586)(238,781)-(164,223)
786(573,468)
200(185,333)-(1,000)161(1,200)3,902(550,837)(1,300)443(1,238)15,37327,164(696,262)(4,240)600,000(141,858)(14,940)(261,759)

17,092

41,402

89(44,764)(74)
426,244

(210)
3,000
(232,507)

524

(261)

(42,112)
997,952
955,840(104,028)
955,840
851,811

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019(5) Notes on Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Segment Information)
1. Outline of reporting segments
The target segments of the Company are components of the Company for which separate financial information isavailable and which are regularly reviewed by the Board of Directors in order to determine the allocation ofmanagement resources and evaluate business performance. Our business is centered on the machine translation
business, while peripheral businesses are the translation outsourcing business and the crowdsourcing business.
(1) MT business
The Machine Translation business provides machine-translation services using artificial intelligence (AI) based on
its corporate mission of "liberate Japan from linguistic impairment."(2) HT business
The Human Translation business provides outsourced services, such as traditional human translation, interpretation,and language training.
(3) Crowdsourcing business
The crowdsourcing business provides a crowdsourcing website on which global jobs such as multilingualtranslation and field surveys can be requested.
2. Method of calculating net sales, income (loss), assets and other items by reportable segment
The accounting methods used for the reportable segments are based on the accounting policies adopted for the
preparation of the consolidated financial statements.
Segment income is based on operating income. Intersegment sales and transfers are based on prevailing market
prices.

- 11 -

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
3. Information on net sales, income (loss), assets and other items by reportable segment
Previous fiscal year (From March 1, 2017 to February 28, 2018)
Reportable Segments
MT business HT business

Crowdsourcing
business

Total(Thousands of yen)Amounts ontheAdjustment consolidated(Note 1,3,4) financial
statements(Note 2)

Net sales
Net sales tounaffiliated276,508

1,518,187

212,287

2,006,984-

2,006,984

39,60049,356

12,063101,019(101,019)-

316,108

1,567,544

224,350

2,108,003(101,019)

2,006,984(304)

166,407(92,594)

73,509(86,259)(12,750)

477,221768,392

375,566

1,621,179

468,3142,089,494

71,692

20,3342,353

94,380

5,739

100,119

Amortization of
goodwill--

63,35963,3596,709

70,069Impairment loss--

1,138,789

1,138,789-

1,138,789

306,4211,829

45,305353,555

45,449399,005

customers
Intersegment sales
or transfer
Total
Segment income(loss)
Segment assets
Other
Depreciation

Increase inproperty, plant andequipment, andintangible assets(Note) 1.

2.
3.

4.

Adjustments to segment income of (86,259) thousand yen include an elimination of inter-segment transactions of (5,115)
thousand yen, amortization of goodwill not attributable to reportable segments of (6,709) thousand yen, and corporate
expenses of (74,434) thousand yen. Corporate expenses mainly consist of expenses related to the administrative
departments of the parent company that are not attributable to reportable segments.
Segment income (loss) is adjusted with operating income in the consolidated statements of income.
Adjustments to segment assets of 468,314 thousand yen are corporate assets not attributable to reportable segments. They
mainly consist of surplus operating funds (cash and deposits), goodwill, deferred tax assets, and assets related to theadministrative division.
Adjustments to increase in property, plant and equipment and intangible assets are eliminations of intersegment
transactions.

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Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
Current fiscal year (From March 1, 2018 to February 28, 2019)
Reportable Segments
MT business HT business

Crowdsourcing
business

Total(Thousands of yen)Amounts ontheAdjustment consolidated(Note 1,3,4) financial
statements(Note 2)

Net sales
Net sales tounaffiliatedcustomers

916,908

1,593,020

398,1132,908,042-

2,908,042

Intersegment sales
or transfer

4,165

171,940

245,095

421,200(421,200)

-

Total

921,073

1,764,960

643,2083,329,242(421,200)

2,908,042

Segment income(loss)

124,783

258,50980,253

463,546(125,502)

338,044

Segment assets

1,021,436

694,349

437,128

2,152,914

489,936

2,642,850

188,190

6,219

8,887

203,298-

203,298-

1,076

13,475

14,552

6,709

21,262703,978

28,53977,814810,332-

810,332

Other
Depreciation
Amortization of
goodwill
Increase inproperty, plant andequipment, andintangible assets(Note) 1.

2.
3.

4.

Adjustments to segment income of (125,502) thousand yen include an elimination of inter-segment transactions of(69,979) thousand yen, amortization of goodwill not attributable to reportable segments of (6,709) thousand yen, andcorporate expenses of (48,995) thousand yen. Corporate expenses mainly consist of expenses related to the administrative
departments of the parent company that are not attributable to reportable segments.
Segment income (loss) is adjusted with operating income in the consolidated statements of income.
Adjustments to segment assets of 489,936 thousand yen are corporate assets not attributable to reportable segments. They
mainly consist of surplus operating funds (cash and deposits), goodwill, deferred tax assets, and assets related to theadministrative division.
Adjustments to increase in property, plant and equipment and intangible assets are eliminations of intersegment
transactions.
4. Changes in reportable segments
In conjunction with the transfer of the GLOZE business to GLOVA Corp., our group has integrated the "GLOZE
business," "Translation and Interpretation business," and "Corporate Training business" into the "HT business." As aresult, our reportable segments consist of the "MT business," "HT business" and "Crowdsourcing business" since thethird quarter of the current fiscal year.
GLOZE business has provided consigned translation services to standardize quality, reduce costs, and shorten leadtimes by combining MT (machine translation) technology and HT (human translation).
However, as the precision of our MT increased significantly in the previous fiscal year, our current management task
has shifted to the stage of "the last mile to the full automation (the complete replacement of HT by MT)", and we
decided to reorganize the segment to streamline the organizational structure as there is no longer a fundamental
difference between the GLOZE business and GLOVA's translation business.
Segment information for the previous fiscal year (from March 1, 2017 to February 28, 2018) has been prepared using
the new segmentation method.

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Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
(Per share Information)
Previous fiscal year
From March 1, 2017
To February 28, 2018
Net assets per share

Current fiscal year
From March 1, 2018
To February 28, 201989.07 yen

115.73 yen

Net income (loss) per share(121.71) yen

25.26 yen

Diluted net income per share- yen

24.25 yen

(Note)
1.

Diluted net income per share for the previous fiscal year is not presented because net loss per share was recorded despite theexistence of potential shares.

2.

The basis for calculating net income (loss) per share and diluted net income per share is as follows.
Previous fiscal year
From March 1, 2017
To February 28, 2018

Current fiscal year
From March 1, 2018
To February 28, 2019

(1,214,926)

255,869--(1,214,926)

255,869

9,982,088

10,127,512--

Increase in number of common shares (shares)

507,807424,017

Share subscription rights (shares)(507,807)(424,017)

Net income (loss) per share
Net income (loss) attributable to owners ofparent(thousand yen)Amount not attributable to commonshareholders (thousand yen)
Net income (loss) attributable to owners ofparent related to common stock (thousands ofyen)
Average number of shares during the period(shares)

Diluted net income per share
Adjustment to net income attributable to ownersof parent (thousands of yen)

Outline of potential shares that had not been
included in the calculation of diluted net income-

per share because they had no dilutive effect(Significant Subsequent Events)
Merger of consolidated subsidiaries
At the meeting of the Board of Directors held on January 11, 2019, the Company resolved to conduct an absorption-typemerger of Inter media Inc. by GLOVA Corp., a consolidated subsidiary of the Company, and an absorption-type merger ofQuicktranslate, Inc. by anydooR, Inc.
I. Absorption-type merger of Inter media Inc. by GLOVA Corp.
Summary of transactions(1) Name and business of the companies subject to business combination
1 Surviving company
Name: GLOVA Corp.
Business outline: translation, interpretation, and corporate language training
2 Absorbed company
Name: Inter media Inc.
- 14 -

Rozetta Corp. Consolidated Financial Results
For the Fiscal Year Ended February 28, 2019
Business outline: technical translation, copy writing, DTP, design and printing(2) Date of business combination
March 1, 2019(3) Legal form of business combination
Absorption-type merger in which GLOVA Corp. is the surviving company and Inter media Inc. is the absorbed company(4) Name after business combination
GLOVA Corp.
(5) Other matters related to the outline of the transaction
Aim of the business combination is to further improve management efficiency.
II. Absorption-type merger of Quicktranslate, Inc. by anydooR, Inc.
Summary of transactions(1) Name and business of the companies subject to business combination
1 Surviving company
Name: anydooR, Inc.
Business outline: the user-participatory bilingual platform service on the website
2 Absorbed company
Name: Quicktranslate, Inc.
Business outline: translator matching service(2) Date of business combination
March 1, 2019(3) Legal form of business combination
Absorption-type merger in which anydooR, Inc. is the surviving company and Quicktranslate, Inc. is the absorbed company(4) Name after business combination
Xtra, Inc.
(5) Other matters related to the outline of the transaction
Aim of the business combination is to further improve management efficiency.
III. Outline of accounting treatment
In accordance with the "Accounting Standards for Business Combinations" and the "Implementation Guidance on
Accounting Standards for Business Combinations and Accounting Standards for Business Divestitures," the Company
plans to treat these transactions as transactions under common control.

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