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 First Quarter of the Fiscal Year Ending
February 29, 2020 [Japanese GAAP]
July 12, 2019
Company name

Listing Market TSE

Stock Code

6182

Representative(Title)Contact(Title)Rozetta Corp.
URL https://www.rozetta.jp
Representative Director andCEO
Executive Officer, General
Manager of Group
Administration Division(Name) Junichi Goishi(Name) Yoko Jacobson

TEL +81-3-6685-9570

Scheduled date of filing of
Scheduled date of commencement ofJuly 12, 2019
quarterly report:
dividend payment:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results briefing: None-

(Figures are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 29, 2020 (March 1, 2019-May 31, 2019)(1) Consolidated Results of Operation (Cumulative)(Percentages indicate year-on-year changes.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Millions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
Q1 FY2/20
975
49.8
170
279.2
170
268.6
110
208.4
Q1 FY2/19
651
22.1
44
20.3
46
23.0
35
103.7
(Note)
Comprehensive
incomeQ1 FY2/20

110

Millions ofyen(206.6%)Q1 FY2/19

Net income per share

Diluted net income per
share

Yen
10.75
3.57

Yen
10.41
3.41

Q1 FY2/20
Q1 FY2/19

35

Millions ofyen(103.7%)(2) Consolidated Financial Position
Total assets
Millions of yen
2,861
2,642

Q1 FY2/20
FY2/19(Reference)
Shareholders' equity

Q1 FY2/20

1,302

Net assets
Millions of yen
1,304
1,194

Millions of yen

FY2/19

Shareholders' equity ratio
%
45.5
45.1
1,191

Millions of yen

2. Dividend payment
Annual dividend per share

FY2/19FY2/20FY2/20 (Forecast)End of Q1
Yen-

End of Q2
Yen
0.00

End of Q3
Yen-

Year-end
Yen
0.00

0.00

-

0.00

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

Total
Yen
0.00
0.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending February 29, 2020 (March 1, 2019 - February 29, 2020)
At present, the MT business has entered a period of rapid growth since the fourth quarter of the fiscal year ended February 28,
2018, and we are concentrating our management policy on maximizing medium-to long-term growth rather than short-term
profits. For the time being, we will not disclose the forecast as a fixed value until the sales growth rate of the MT businesssettles down (roughly 150% compared to the previous year), in order not to adjust expenses in accordance with earnings
forecasts, and therefore we make decisive choices that best meet its long-term growth objectives on an occasional basis.
For the consolidated business forecasts for the fiscal year ending February 29, 2020, we announced only the minimum figures,for example, by 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): Yes
New consolidated: Excluded: Inter media Inc. and Quicktranslate, Inc.
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial
Statements (Changes in Significant Subsidiaries during the Period)" on page 5 of the Appendix.

(2) Adoption of special accounting methods for presenting quarterly consolidated financial statements: Yes(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial
Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements)" onpage 5 of the Appendix.
(3) Changes in accounting policies and changes or restatement of accounting estimates
1. Changes in accounting policies due to revision 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

(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of
the period (including treasury stock)

Q1 FY2/20

10,296,260 Shares

FY2/1910,296,260 Shares

2. Treasury shares at the end of the year

Q1 FY2/20

330

FY2/19286

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

Q1 FY2/20

10,295,933 Shares

SharesQ1 FY2/19

Shares

10,042,084 Shares*This quarterly financial report is not subject to the quarterly review by a certified public accountant or an auditing firm.
*Explanations and other special notes concerning the appropriate use of business forecasts(Cautionary Statement with Respect to Forward-Looking Statements)
Forecasts regarding future performance in this material are based on information currently available to 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 2 of the Attachment for the assumptions
underlying the forecasts and cautions concerning the use thereof.

(Method of Obtaining Financial Results Briefing Materials)
Supplementary materials for financial results were disclosed on the TDnet on the same date.

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

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

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

2(2) Financial Position .....................................................................................................................................................

2(3) Consolidated Business Forecasts .............................................................................................................................

2

2. Quarterly Consolidated Financial Statements ...............................................................................................................

3(1) Quarterly Consolidated Balance Sheets....................................................................................................................
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ...........................................................................................................................................................................
Quarterly Consolidated Statements of Income....................................................................................................

3
4

For the Three-month Period............................................................................................................................

4

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

4(3) Notes on Quarterly Consolidated Financial Statements............................................................................................

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

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

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

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

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

8

-1-

5

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

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the first quarter of the current fiscal year (March 1, 2019 to May 31, 2019), sales of T-4OO continued to be strong in the
MT business. Accordingly, we continuously increased the staff of all sections, including the marketing and management sections,to fortify our organizational structure before expanding our business rapidly.
As a result, our group posted net sales of 975,364 thousand yen (up 49.8% year on year), operating income of 170,525 thousandyen (up 279.2% year on year), ordinary income of 170,443 thousand yen (up 268.6% year on year), and profit attributable toowners of parent of 110,673 thousand yen (up 208.4% year on year) for the cumulative first 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 469,598 thousand yen (up 235.9% year on year) due to continuous strong sales of T-4OO.
Segment income was 52,337 thousand yen (up 382.5% year on year) as a result of a significant increase in SG & A expenses
from the sales division to the administration division in preparation for the rapid expansion of the MT business.
② HT business
As for the HT business, sales were 387,590 thousand yen (down 8.0% year on year). Segment income was 111,301 thousand yen(up 82.9% year on year), mainly due to the rationalization of SG & A expenses, such as a significant reduction of administrative
headquarters functions.
③ Crowdsourcing Business
As for the Crowdsourcing business, sales were 118,175 thousand yen (up 31.1% year on year). Segment income was 15,543
thousand yen (up 535.8% year on year), mainly due to the rationalization of SG & A expenses, such as a significant reduction ofadministrative headquarters functions.
(2) Financial Position
AssetsCurrent assets increased by 138,525 thousand yen from the end of the previous fiscal year to 1,461,783 thousand yen at the endof the first quarter of the current fiscal year. This was mainly due to an increase of 120,121 thousand yen in cash and deposits
and an increase of 8,748 thousand yen in inventories. Non-current assets increased by 80,581 thousand yen from the end of theprevious fiscal year to 1,400,174 thousand yen. This was mainly due to an increase of 27,268 thousand yen in property, plant andequipment and an increase of 55,126 thousand yen in intangible assets.
Liabilities
Current liabilities increased by 140,050 thousand yen from the end of the previous fiscal year to 1,296,563 thousand yen at theend of the first quarter of the current fiscal year. This was mainly due to an increase of 198,377 thousand yen in advances received
and an increase of 43,916 thousand yen in provision for bonuses. Non-current liabilities decreased by 30,882 thousand yen fromthe end of the previous fiscal year to 261,289 thousand yen. This was due to the repayment of long-term debt.
Net assets
Net assets increased by 109,939 thousand yen from the end of the previous fiscal year to 1,304,105 thousand yen at the end of
the first quarter of the current fiscal year. This was mainly due to an increase of 110,673 thousand yen in retained earnings.
(3) Consolidated Business Forecasts
At present, the MT business has entered a period of rapid growth since the fourth quarter of the fiscal year ended February 2018.
We are concentrating our management policy on maximizing medium-to long-term growth rather than short-term profits. For thetime 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 in accordance with earnings forecasts, and therefore we
make decisive choices that best meet its long-term growth objectives on an occasional basis.
For the consolidated business forecasts for the fiscal year ending February 29, 2020, we announced only the minimum figures,for example, by indicating record-high sales (2,908 million yen) or over and record-high profit (operating income of 338 million
yen) or over.
-2-

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

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
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 shareholders' equity
Total net assets
Total liabilities and net assets-3-

Current first quarter(May 31, 2019)853,378
360,515
51,23766,716(8,589)1,323,258

973,500
355,942
59,98580,206(7,851)
1,461,783

236,489

263,758

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

84,198785,930130,166463
1,000,758
135,658
1,400,174
2,861,958

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

116,313
198,201
62,48070,493
638,686
210,387
1,296,563

292,171
292,171
1,448,684

261,289
261,289
1,557,852

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

250,794
1,230,983(179,166)(532)
1,302,079
458
1,567
1,304,105
2,861,958

Rozetta Corp. Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending February 29, 2020
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(For the Three-month Period)(Thousands of yen)Previous first quarter
From March 1, 2018
To May 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Provision for bonuses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Special income
Surrender value of insurance
Total special income
Special loss
Loss on retirement of noncurrent assets
Total special loss
Income before income taxes
Income taxes
Net income
Income (loss) attributable to non-controlling interests
Net income attributable to owners of parent

Current first quarter
From March 1, 2019
To May 31, 2019

651,196
273,192
378,003

975,364
329,971645,393

102,357
20,457210,219333,033
44,969135,765
35,054
304,047
474,867
170,525

15
138
2,053
2,207

10
1
386
398

920
15
936
46,241

480
480
170,443

11,513
11,513

-

1,672
1,672
56,082
20,19835,88335,88300170,443
60,408110,035(638)
110,673

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)(Thousands of yen)Previous first quarter
From March 1, 2018
To May 31, 2018
Net income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests-4-

Current first quarter
From March 1, 2019
To May 31, 201935,88335,883110,035
110,035

35,883-

110,673(638)

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

-5-Rozetta Corp. Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending February 29, 2020
(Segment Information)
I. Previous first quarter (From March 1, 2018 to May 31, 2018)
1. Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments

Amounts on the
consolidated
financialstatements(Note 2)Adjustment(Note 1)MT businessHT business

Crowdsourcing
business

139,808421,260

90,127651,196-

651,196

600

35,98647,056

83,643(83,643)-

Total

140,408457,246

137,184

734,839(83,643)

651,196

Segment income

10,846

60,842

2,444

74,133(29,164)

44,969Total

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer(Note) 1.

Adjustments to segment income of (29,164) thousand yen include eliminations of intersegment transactions andamortization of goodwill not attributable to reportable segments, and corporate expenses. Corporate expenses mainly
consist of expenses related to the administrative departments of the parent company that are not attributable to reportablesegments.

2. Segment income is adjusted with operating income in the quarterly consolidated statements of income.
II Current first quarter (From March 1, 2,019 to May 31, 2019)
1. Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments

Amounts on the
consolidated
financialstatements(Note 2)Adjustment(Note 1)MT businessHT business

Crowdsourcing
business

469,598

387,590

118,175

975,364-

975,364

28,518643

51,49180,653(80,653)-

Total

498,116

388,234

169,666

1,056,017(80,653)

975,364

Segment income

52,337111,301

15,543

179,182(8,656)

170,525

Total

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer(Note) 1.

Adjustments to segment income of (8,656) thousand yen include elimination of inter-segment transactions andamortization of goodwill not attributable to reportable segments, and corporate expenses. Corporate expenses mainly
consist of expenses related to the administrative departments of the parent company that are not attributable to reportablesegments.
2. Segment income is adjusted with operating income in the quarterly consolidated statements of income.

-6-

Rozetta Corp. Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending February 29, 2020
2. 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 theprevious 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 first quarter of the previous fiscal year has been prepared using the new segmentation
method and is included in “I. Previous first quarter (From March 1, 2018 to May 31, 2018) 1. Information on net sales
and income by reportable segment.”-7-

Rozetta Corp. Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending February 29, 2020
(Per share Information)
The basis for calculating net income per share and diluted net income per share is as follows.
Previous first quarter
From March 1, 2018
To May 31, 2018
(1) Net income per share

Current first quarter
From March 1, 2019
To May 31, 20193.57 yen

10.75 yen

35,883

110,673--

35,883

110,673

10,042,084

10,295,933

3.41 yen

10.41 yen--

471,960

334,254--(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 during theperiod (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-8-