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, 2025 (Japanese GAAP)
July 12, 2024
Company name

Listing Market TSE

MetaReal Corp.

Stock Code
Representative

6182(Title)Contact(Title)URL https://www.metareal.jp
Representative Director and CEO
Director, General Manager ofGroup Administration Division(Name) Junichi Goishi(Name) Taketo Arakawa

TEL 03-6685-9570

Scheduled date of filing ofJuly 12, 2024
Scheduled date of commencement of dividend payment
quarterly report:
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, 2025 (March 1, 2024-May 31, 2024)(1) Consolidated Results of Operation (Cumulative)(Percentages indicate year-on-year changes.)
Net sales
%
15.4
△7.0

Millions of yen

Q1 FY2/25
Q1 FY2/24

1,135
983

(Note) Comprehensive income

Operating income

Q1 FY2/25

Ordinary income

%
89.8
6.4

Millions of yen

136 Millions of yen (129.5%)

Q1 FY2/24

Millions of yen

211
111

207
124

Net income per share

Diluted net income per share

Yen
12.56
5.57

Yen
12.43
5.47

Q1 FY2/25
Q1 FY2/24

%
66.2
7.5

Net income attributableto owners of parent
Millions of yen
%
135
127.3
59
6.4

59 Millions of yen (6.4%)(2) Consolidated Financial Position
Total assets
Q1 FY2/25
FY2/24(Reference) Shareholders' equity

Q1 FY2/25

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen

4,600
4,458

1,818
1,681

1,777 Millions of yen

FY2/24

%
38.6
36.8

1,640 Millions of yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2
Yen
-

Yen
0.00

FY2/24
FY2/25
FY2/25 (Forecast)
0.00(Note) Revisions to the most recently announced dividend forecast: None

End of Q3

Year-end

Total

Yen
-

Yen
0.00

Yen
0.00

-

0.00

0.00

3. Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2025 (March 1, 2024 to February 28, 2025)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year(Note) 1.
2.

4,946

Operating income% Millions of yen
18.4

Ordinary income

Net income attributable toowners of parent

Net income per
share

%

Millions of yen%

Millions of yen%

Yen

412 △44.8

-

-

-

-

-

Revisions to the most recently announced business forecasts: None
[Ordinary income], [Net income attributable to owners of the parent] and [Net income per share] in the consolidated
business forecasts for the fiscal year ending February 28, 2025 are not disclosed at this time because, although uncertainty
in financial plans such as fund-raising in terms of both liabilities and equity due to Metareal AI of new businesses has
been mitigated, they include items with high forecasting difficulties such as non-operating income (loss) andextraordinary income (loss). We plan to disclose specific figures promptly once we are able to make more accurate
projections.

◆Consolidated Business Forecasts by Segment(Percentages indicate year-on-year changes.)
Net sales

Operating income

Full year

Millions of yen%

Millions of yen%

AI business

3,600

17.8

519

△44.5

HT business

1,146

2.6

210

44.7

Metaverse business

200

-

△200

-

Other corporate expenses

-

-

△118

-

(Note) Since the second quarter of the fiscal year ended February 28, 2024, the name of the reportable segment that had been the [MTbusiness] has changed to the [AI business].
Previously, the segment centered on AI translation was the [MT business]. However, as for our corporate strategy and current
situation, we are looking toward broader AI services, including [generative AI], and we have changed the name to the [AIbusiness] to represent the actual situation more appropriately.
This is only a name change, and we have not revised the numerical classification.
In addition, future growth-strategy projects related to Metareal AI include forms such as consigned development-type projects,
performance-based quasi-delegation, and licensing as usage rights. The recording of sales varies greatly depending on thedelivery of products, the timing of acceptance inspections, and the period of licensing (and various conditions in licensing).
Accordingly, there is a difference in the recording of sales between quarters. Our annual business forecasts are based on the
difference between the quarterly figures for each fiscal year, and there is a possibility that changes in the timing of recording
them to the quarter may occur due to differences in the timing of acceptance inspections.

※ 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, (3) Notes on Quarterly Consolidated Financial
Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements)]
on page 7 of the Appendix.
(3) Changes in accounting policies, changes in accounting estimates and restatements① Changes in accounting policies due to revision of accounting standards: None
② Changes in accounting policies other than ①: None
③ Changes in accounting estimates: None
④ Restatements: None
(4) Number of shares outstanding (common stock)① Number of shares outstanding at the end of
the period (including treasury stock)

Q1 FY2/25

10,769,660 shares

FY2/24

10,768,460 shares

Q1 FY2/25

490 shares

FY2/24490 shares③ Average number of shares outstanding during
Q1 FY2/25
the period (cumulative)

10,768,648 shares② Treasury shares at the end of the year

Q1 FY2/24

10,687,992 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 of future performance and other forward-looking statements in this document 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
makes no promises concerning their achievement. 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 ………………………………………………………………………………………

6(3) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………

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

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

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

7(Notes to the Quarterly Consolidated Statements of Income) …………………………………………………………

7(Segment Information) …………………………………………………………………………………………………

8(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 to May 31, 2024), orders received, sales, and operating income in
the AI business hit record highs. In the HT business segment, income compared to the same period of the previous fiscal year
decreased, but the amount of loss incurred in the Metaverse business decreased.
As a result, our group posted net sales of 1,135,459 thousand yen (up 15.4% year on year), operating income of 211,943
thousand yen (up 89.8% year on year), ordinary income of 207,524 thousand yen (up 66.2% year on year), and profit attributableto owners of parent of 135,200 thousand yen (up 127.3% year on year) for the cumulative first quarter of the current fiscal year.
The performance of each business segment is as follows:
Since the second quarter of the previous consolidated fiscal year, the name of the reportable segment of the [MT business] haschanged to the [AI business]. This change had no impact on segment information.
Since the previous fiscal year, we have also changed the method of measuring income or loss of business segments in order tomore appropriately evaluate the results of operations by reportable segment. Comparisons and analyses for the first quarter ofthe current fiscal year are based on the new measurement method.
① AI business
As for the AI business, orders received were steady, rising to 985,066 thousand yen (up 9.2% year on year). Sales were 893,638
thousand yen (up 25.6% year on year), mainly due to the impact of consigned projects. Segment income was 288,765 thousandyen (up 79.9% year on year), including the impact of upfront spending on the new [Metareal AI] business. As for the [Metareal
AI] project, which was developed and provided in the fiscal year ended February 28, 2024 as a growth measure in the short tomedium term, we have aimed to contribute to results at an early stage. To achieve this, we have started various proposals andsales using generative AI, mainly for major customers, which has led to large-scale orders.
② HT business
As for the HT business, sales were 241,464 thousand yen (down 10.9% year on year), and segment income was 18,686
thousand yen (down 43.2% year on year).
③ Metaverse businessMedium-to-short-term growth measures were shifted to the [Metareal AI] project. The Metaverse business reduced investment
from a long-term perspective by 10±5 years. As a result, sales were 356 thousand yen (down 75.4% year on year), and segment
loss was 49,613 thousand yen (segment loss of 55,219 thousand yen in the same period of the previous fiscal year).
(2) Financial Position(Assets)
Current assets increased by 192,846 thousand yen from the end of the previous fiscal year to 3,720,988 thousand yen at theend of the first quarter of the current fiscal year. This was due mainly to an increase of 177,371 thousand yen in notes, accounts
receivable, and contract assets and a decrease of 8,836 thousand yen in cash and deposits. Non-current assets decreased by 50,676
thousand yen from the end of the previous fiscal year to 879,223 thousand yen. This was due mainly to a decrease of 9,249
thousand yen in property, plant, and equipment and a decrease of 40,094 thousand yen in intangible assets.
(Liabilities)
Current liabilities increased by 141,382 thousand yen from the end of the previous fiscal year to 2,147,333 thousand yen at
the end of the first quarter of the current fiscal year. This was due mainly to an increase of 178,013 thousand yen in advances
received. Non-current liabilities decreased by 135,909 thousand yen from the end of the previous fiscal year to 634,709 thousand
yen. This was due mainly to a decrease of 83,995 thousand yen in long-term debt and a decrease of 45,000 thousand yen inbonds.
(Net assets)
Net assets increased by 136,697 thousand yen from the end of the previous fiscal year to 1,818,168 thousand yen at the end of
the first quarter of the current fiscal year. This was due mainly to an increase of 135,200 thousand yen in retained earnings as aresult of recording profit attributable to owners of the parent.

- 2 -(3) Consolidated Business Forecasts
Our two management themes for the future are:
① Expansion of the business base for AI translation targeting specialized industry documents to the generative AI business
By utilizing specialized document data such as [T-4OO] that has been highly valued by customers as an AI translation for[specialized documents for specific industries] and a customer base of more than 6000 companies, we will expand the area fromthe narrow domain of translation to the entire process of document preparation, while narrowly concentrating on [specialized
documents for specific industries]. Through consigned development, joint development, and SaaS products, we will resolve
issues such as the speed and artificial number of issues related to the preparation of specialized documents for customers.
As a result of the trial-and-error approach to various AI solution products and services last year, as in the case of AI translation,
we were able to be certain that we would be successful in concentrating and selecting [specialized documents for specificindustries] in the same manner as AI translation (areas where demand is certain and we have a competitive edge). As a result,
our management policy for this fiscal year is to switch from maximizing profits to accelerating growth, make decisive upfront
investments to expand sales of the AI business, and aim for sales of 9 billion yen (consolidated sales of 10 billion yen) in three
years (fiscal year ending February 28, 2027).
② Commenced provision of outsourced development solutions utilizing AI technology that automatically generates digital twinsin the Metaverse businessAs a long-term growth strategy aiming to achieve results in 10 years or less or five years, the Metaverse business is addressing
the task of the [Metaverser] concept and its method [Metaverse×AI]. In particular, from this fiscal year we will focus on starting
to provide outsourced development solutions using AI technologies that automatically generate digital twins.
Previous methods of digital twin-building included [3D Laser Scan] and [Combination of Plane Capture Images]. However,there were issues such as trouble and cost in the former, and limitations in viewpoints and perspectives in the latter. Accordingly,
we will provide outsourced AI-development solutions that automatically generate photo digital twins from videos taken on asmartphone without special equipment or work by using the next-generation 3D spatial configuration technique [Gaussian
Splatting]. Use cases are assumed for industries centered on the construction, real estate, and manufacturing industries.

- 3 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 29, 2024)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable and contract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
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
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets- 4 -Current first quarter(May 31, 2024)

3,077,184
210,127
18,100229,434△6,705
3,528,142

3,068,348
387,499
24,737250,064△9,6603,720,988

60,99751,747419,465
2,837
10,090432,393370,248
13,647
8,403
392,299

142,542
327,232△33,266
436,508
929,899
4,458,042

144,270
315,688△24,782
435,176879,2234,600,211

65,323100,000
400,980
164,000
88,95445,632814,062
326,998
2,005,951

56,839380,980
164,000
105,364
92,263992,076
355,809
2,147,333

359,000
398,570
13,049770,619
2,776,571

314,000
314,575
6,134
634,7092,782,043

792,541
1,766,488△918,731△986
1,639,312

792,639
1,766,586△783,530△986
1,774,708

1,011
1,011
41,146
1,681,470
4,458,042

2,313
2,313
41,146
1,818,168
4,600,211

(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, 2023 to
May 31, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Research and development expenses
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
Gain on forgiveness of dividends payable
Reversal of allowance for doubtful accounts
Cash-back income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of investments accounted for using equity
methodForeign exchange loss
Other
Total non-operating expenses
Ordinary income
Special income
Income on sales of non-current assets
Gain on sale of investment securities
Other
Total special income
Special loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Total special loss
Income before income taxes
Income taxes
Net income
Net income attributable to owners of parent- 5 -Current first quarter(From March 1, 2024 to
May 31, 2024)

983,792
332,537
651,254

1,135,459
348,810786,648

159,087
51,99931,312
1,935
295,267
539,601
111,652

160,861
50,01733,4491,748
328,629574,705
211,94311650
16
20,875
1,270
22,824

6
203
133
163
507

2,669

2,174

6,246

1,452

697
9,613
124,863

1,128
169
4,925
207,524

831
831

127
19,999400
20,5272,826
2,826
122,868
63,38859,48059,480

0
5,965
5,965
222,086
86,885
135,200
135,200

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)(Thousands of yen)Previous first quarter(From March 1, 2023 to
May 31, 2023)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests- 6 -Current first quarter(From March 1, 2024 to
May 31, 2024)

59,480135,200

59,4801,301
1,301
136,50259,480-136,502-(3) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
Not applicable.
(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.
However, if the calculation of tax expenses using the estimated effective tax rate yields a highly unreasonable result, thenthe statutory tax rate is used.
(Notes to the Quarterly Consolidated Statements of Income)(Gain on sales of investment securities)
Previous first quarter (From March 1, 2023 to May 31, 2023)
Not applicable.
Current first quarter (From March 1, 2024 to May 31, 2024)
This was due to the sale of one share subscription right (VoiceApp, Inc.) of a non-listed domestic company, out of theinvestment securities we hold.

- 7 -(Segment Information)[Segment Information]
Ⅰ Previous first quarter (From March 1, 2023 to May 31, 2023)
1. Information on net sales and income or loss by reportable segment and breakdown of income(Thousands of yen)
Reportable Segments
Metaverse
business

Adjustment(Note 1)

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

Total

687,478
17,624

8,149
262,731-695,627
280,355-

695,627
280,355

6,359

-

1,449
-

1,449
6,359

-

1,449
6,359

711,461

270,880

1,449

983,792-

983,792

Goods or services that aretransferred at one time

63,766

235,123943

299,832-

299,832

Goods or services that aretransferred over a period of time

647,695

35,757506

683,959-

683,959

Revenue from contracts withcustomers

711,461

270,880

1,449

983,792-

983,792

Net sales to unaffiliated customers

711,461

270,880

1,449

983,792-

983,792

1,535

12,457-

13,993△13,993-712,997

283,337

1,449

997,785△13,993983,792

160,516

32,909△55,219

138,205△26,552

111,652

By type of goods or services
Machine translation
Human translation
Metaverse
Consigned development
Revenue from contracts withcustomers
Revenue recognition by period

Intersegment sales or transfer
Total
Segment income or loss (△)(Note) 1. Adjustments to segment income or loss (△) of △26,552 thousand yen include an elimination of intersegment transactions of
52,443 thousand yen and a corporate expenses not attributable to reportable segments of △78,995 thousand yen. Corporate
expenses mainly consist of expenses related to the administrative departments of the parent company that are not attributableto reportable segments.
2. Segment income or loss (△) is adjusted with operating income in the quarterly consolidated statements of income.
2. Information on impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)
This information is omitted because it is not material.

- 8 -Ⅱ Current first quarter (From March 1, 2024 to May 31, 2024)
1. Information on net sales and income or loss by reportable segment and breakdown of income(Thousands of yen)
Reportable Segments
Metaverse
businessAmounts on the
consolidated
Adjustment
financial(Note 1)statements(Note 2)AI business(Note 3)HT business

Machine translation
Human translation

685,574
13,5536,538
234,925-

692,113
248,479-

692,113
248,479

Metaverse
Consigned development

194,510

-

356
-

356
194,510-356
194,510

Revenue from contracts withcustomers

893,638

241,464356

1,135,459-

1,135,459

Goods or services that aretransferred at one time

185,587

209,85973

395,519-395,519

Goods or services that aretransferred over a period of time

708,050

31,605283

739,939-

739,939

Revenue from contracts withcustomers

893,638

241,464356

1,135,459-

1,135,459

Net sales to unaffiliated customers

893,638

241,464356

1,135,459-

1,135,459

800

10,846

4,178

15,824△15,824-

894,438

252,3104,535

1,151,284△15,824

1,135,459

288,765

18,686△49,613257,839△45,895

211,943

Total

By type of goods or services

Revenue recognition by period

Intersegment sales or transfer
Total
Segment income or loss (△)(Note) 1. Adjustments to segment income or loss (△) of △45,895 thousand yen include an elimination of intersegment transactions of
61,899 thousand yen and a corporate expenses not attributable to reportable segments of △107,795 thousand yen. Corporate
expenses mainly consist of expenses related to the administrative departments of the parent company that are not attributableto reportable segments.
2. Segment income or loss (△) is adjusted with operating income in the quarterly consolidated statements of income.
3. Sales related to generative AI are included in [Machine translation] for platform-type sales, and sales related to consigned
development are included in [Consigned development].
2. Information on impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)
This information is omitted because it is not material.
3. Changes in reportable segments(Change of Segment Name)
Since the second quarter of the previous consolidated fiscal year, the name of the reportable segment of the [MTbusiness] has changed to the [AI business]. This change was made to the segment name only. There was no impact on
segment information. Segment information for the first quarter of the previous consolidated fiscal year also is presented
under the new name.
(Changes in Measurement Method for Income or Loss of Business Segments)
In order to more appropriately evaluate the results of operations by reportable segment, we have decided to revise theallocation of expenses in the headquarters function in response to the increasing importance of company-wide
management as the scope of business expansion and other changes in our group in recent years have increased.
Accordingly, the effects of cost-reduction activities undertaken by the administrative departments of the head office
were included in adjustments to segment income. However, from the previous fiscal year, we have changed theallocation method in light of the ratio of services provided to each company from the administrative departments of thehead office.
Segment information for the first quarter of the previous consolidated fiscal year is prepared based on the newmeasurement method for reportable segment income or loss.

- 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, 2023 to
May 31, 2023)

Current first quarter(From March 1, 2024 to
May 31, 2024)

5.57 yen

12.56 yen

59,480135,200--

59,480135,200

10,687,992

10,768,648

5.47 yen

12.43 yen--

178,445

105,541(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.

- 10 --