8, March 2024
Company Name: HEROZ, Inc.
Names of Representatives:
Takahiro Hayashi,
Chief Executive Officer
Stock Code: 4382
Contact: Hiroya Mori,
Chief Financial Officer(Telephone: +81-3-6435-2495)

Notice: This document is an excerpt translation of the original Japanese document and is only for reference
purposes. In the event of any discrepancy between this translated document and the original Japanese
document, the latter shall prevail.

Announcement of Revisions to Full-Year Consolidated Earnings Forecasts for the Fiscal YearEnding April 2024
HEROZ, Inc. (the “Company”) hereby announce that we have decided to revise our consolidated
earnings forecast for the fiscal year ending April 30, 2024, which was disclosed on June 9, 2023, asfollows.

1.

Revision of consolidated earnings forecast for the fiscal year ending April 30, 2024
(May 1, 2023 - April 30, 2024)

ProfitNet Sales

EBITDA(*)

Operating

Ordinary

attributable

Net income

profitprofitto owners ofper shareparentForecast announced on Jun.

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Yen Sen

4,800

800

40038530

2.00

4,850920450

410-930-61.85501205025-960

－

+1.0%

+15.0%+12.5%

+6.5%

－－

2,980

609

257

216-574-38.229 (A)Revised forecast
announced at this time (B)Increase/Decrease(B-A)
Percentage
increase/decrease (%)(Reference)
Fullyearresultended

April. 30, 2023

*EBITDA (operating income + depreciation and amortization + amortization of security deposits +amortization of goodwill (excluding extraordinary losses) + stock-based compensation expense + loss
on write-down of inventories)

2.

Reasons for Revision of Earnings ForecastsBased on the favorable progress of sales revenue, EBITDA, and operating profit for the thirdquarter of the fiscal year ending in April 2024, we will revise our full-year performance forecast.
Regarding the revision of this performance forecast, we announced on November 24, 2023 that
we were examining the impact on the consolidated full-year performance due to the acquisitionof A.I. Squared, Inc. As of now, we have examined and calculated the impact based on theavailable information, so we have disclosed the revised figures.
Furthermore, regarding the inclusion period of A.I. Squared, Inc. in the consolidated full-year
performance for the fiscal year ending in April 2024, it has been determined after consultation
with the auditing firm that it will cover a period of 5 months (the third quarter from October toDecember, which is 3 months, and the fourth quarter from January to February, which is 2months). Based on this, we are calculating the sales revenue, EBITDA, operating profit, andordinary profit.
Furthermore, regarding the recognition of extraordinary losses due to the partial lump-sum
amortization of goodwill associated with the share impairment treatment of our consolidated
subsidiary, VarioSecure Inc., we have been examining the impact on the full-year consolidatedperformance. Based on the available information at this time, we have also conducted a thoroughexamination and will disclose the findings in conjunction with the other revisions. We announced
this on February 2, 2024.
Based on the impact of the recognition of extraordinary losses on the full-year consolidated
performance for the fiscal year ending in April 2024, the current net loss attributable to the parent
company shareholders is expected to be 930 million yen. As mentioned in the announcement onFebruary 2nd, it should be noted that due to a market price decline of over 50% compared to theacquisition cost of VarioSecure Inc. shares as of January 31, 2024, we will recognize theimpairment loss on these shares in the separate financial statements. As a result, in accordancewith the provisions of the "Practical Guidelines for Capital Consolidation Procedures inConsolidated Financial Statements," we will amortize this impairment in the consolidated
financial statements. This amortization represents the lump-sum amortization of a portion of thegoodwill due to the decline in the market price of VarioSecure Inc. shares in the consolidated
financial statements and does not refer to the amortization of goodwill that is recognized in theseparate financial statements of VarioSecure Inc.

Regarding our performance forecast, it is based on the information available to us at
the present time and our internal assessment. The forecast is subject to various
uncertainties, and the actual performance may differ from these projected figures.
We will periodically review and, in accordance with disclosure regulations, publiclyannounce updates to our performance forecast as necessary.