Consolidated Financial Results for the Fiscal Year Ended September 30, 2021

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Consolidated Financial Results for the Fiscal Year Ended September 30, 2021

(Japanese GAAP)

November 9, 2021

Company Name:	PLAID, Inc.
Listing:	Tokyo Stock Exchange
Securities code:	4165
URL:	https://plaid.co.jp/
Representative:	Kenta Kurahashi, Representative Director and CEO
Inquiries:	Kentaro Muto, CFO
TEL:	[phone]

Scheduled date of ordinary general meeting of shareholders: Scheduled date to commence dividend payment:

Scheduled date to file annual securities report:

Preparation of supplementary materials on financial results: Holding of financial results meeting:

December 21, 2021

−

December 22, 2021 Yes

Yes (for institutional investors and securities analysts)

(Millions of yen with fractional amounts rounded down, unless otherwise noted）

1. Consolidated Financial Results for the Fiscal Year Ended September 30, 2021 (from October 1, 2020 to September 30, 2021)

(1) Consolidated operating results

(Percentages indicate year-on-year changes.)

Net sales

Operating income (loss)

Ordinary income (loss)

Net income (loss) attributable to

parent's shareholders:

Fiscal year ended

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

September 30, 2021

5,444

－

170

－

(105)

－

(106)

－

September 30, 2020

－

－

－

－

－

－

－

－

Note: Comprehensive income Fiscal year ended September 30, 2021	(105)	millions of yen	(－%)
	Fiscal year ended September 30, 2020	−	millions of yen	(－%)
	Net income (loss) per share	Diluted income per share	Return on equity	Ordinary income to	Operating income to
	(ROE)	total assets		net sales
Fiscal year ended	Yen		Yen		％			％	％
September 30, 2021	(2.86)		－		(2.2)		(1.5)	3.1
September 30, 2020	－		－		－			－	－
Share of	profit (loss) of entities accounted for using					－
Reference: equity method		Fiscal year ended September 30, 2021	millions of yen
			Fiscal year ended September 30, 2020	－	millions of yen

Note: The Company started reporting consolidated financial statements from the fiscal year ended September 30, 2021, therefore does not present the financial results for the previous fiscal year and year-on-year changes. Further, both return on equity and ordinary income to total assets for the fiscal year ended September 30, 2021 were calculated based on the year-end equity and year-end total assets respectively, because this is the first time the Company reported a consolidated balance sheet.

(2) Consolidated financial position

		Total assets	Net assets	Equity-to-asset ratio	Net asset value per share
	As of	Millions of yen	Millions of yen	％	Yen
	September 30, 2021	6,983	4,953	69.6	128.30
	September 30, 2020	－	－	－	－
	Reference: Equity	As of	September 30, 2021	4,861millions of yen
		As of September 30, 2020	－millions of yen

The Company started reporting consolidated financial statements from the fiscal year ended September 30, 2021, therefore does not present the financial results for the previous fiscal year.

(3) Consolidated cash flows

	Cash flows from operating	Cash flows from investment	Cash flows from financial	Cash and cash equivalents year-
	activities	activities	activities	end balance
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
September 30, 2021	410	(1,330)	2,999	4,172
September 30, 2020	－	－	－	－

The Company started reporting consolidated financial statements from the fiscal year ended September 30, 2021, therefore does not present the financial results for the previous fiscal year.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

2. Dividends

Fiscal year ended September 30, 2020 Fiscal year ended September 30, 2021

Fiscal year ending September 30, 2022 (Forecast)

	Dividend per share		Total	Dividend	Dividends to
					dividends	payout ratio	net assets
End of 1st	End of 2nd	End of 3rd	Year-end	Annual
(Annual)	(Consolidated)	(Consolidated)
quarter	quarter	quarter
Yen	Yen	Yen	Yen	Yen	Millions of	％	％
yen
－	0.00	－	0.00	0.00	－	－	－
－	0.00	－	0.00	0.00	－	－	－
－	0.00	－	0.00	0.00		－

3. Forecast of Consolidated Results for Fiscal Year Ending September 30, 2022 (from October 1, 2021 to September 30, 2022 ) (Percentages indicate year-on-year changes.)

	Net sales		Operating income (loss)	Ordinary income (loss)
	Millions of		％	Millions of	％	Millions of	％
	yen		yen	yen
Fiscal year ending	7,419		36.3	(1,565)	－	(1,694)	－
September 30, 2022	〜7,828		〜43.8	〜(1,343)	〜(1,473)

Net income (loss)		Net income (loss) per
attributable to parent's
share
shareholders
Millions of		％	Yen
yen
(1,694)		－	(44.72)
〜(1,473)		〜(38.88)

• Notes
• 1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes to the scope of

consolidation): Yes

New Subsidiary: 1 (Name: Emotion Tech Inc.)

1. Changes in accounting policies, accounting estimates and restatement
2. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies other reasons : None
   3. Changes in accounting estimates: None
   4. Restatement: None
3. Number of issued shares (Common shares)
   a. Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	37,890,900shares
	As of September 30, 2020	35,408,900shares
b. Number of treasury shares at the end of the period
	As of September 30, 2021	25shares
	As of September 30, 2020	−shares
c. Average number of outstanding shares during the period
	As of September 30, 2021	37,272,240shares
	As of September 30, 2020	35,265,267shares

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Reference: Overview of non-consolidated results

1. Non-Consolidated Financial Results for Fiscal Year Ended September 30, 2021 (from October 1, 2020 to September 30, 2021)

(1) Non-consolidated operating results

(Percentages indicate year-on-year changes.)

Net sales

Operating income (loss)

Ordinary income (loss)

Net income (loss)

Fiscal year ended

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

September 30, 2021

5,444

35.9

170

－

(84)

－

(161)

－

September 30, 2020

4,007

36.4

(1,079)

－

(1,205)

－

(1,207)

－

Net income (loss) per share

Diluted income per share

Fiscal year ended

Yen

Yen

September 30, 2021

(4.33)

－

September 30, 2020

(34.24)

－

(2) Non-consolidated financial position

Total assets

Net assets

Net assets

Net asset value per share

Fiscal year ended

Millions of yen

Millions of yen

％

Yen

September 30, 2021

6,584

4,809

73.0

126.86

September 30, 2020

3,068

1,604

52.3

(78.17)

Reference:

Equity

As of

September 30, 2021

4,806

millions of yen

As of

September 30, 2020

1,604

millions of yen

• This financial results report is out of the scope of audits conducted by certified public accountants or audit firms.
• Explanation of the appropriate use of earnings forecasts and other special notes

(Disclaimer regarding forward-looking statements, etc.)

The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company. They are not intended as a promise by the Company that they will be achieved. Further, actual earnings, etc. may differ materially due to a variety of factors.

Table of Contents

1. Qualitative Information Regarding Results for the period	2
(1)	Overview of Operating Results during the period	2
(2)	Overview of Financial Position during the period	2
(3)	Overview of Cash Flows during the period	3
(4)	Future Outlook	3
2. Basic Concept Regarding Selections of Accounting Standards	4
3. Consolidated Financial Statements and Significant Notes Thereto	5
(1)	Consolidated Balance Sheet	5
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income	7
	Consolidated Statement of Income	7
	Consolidated Statement of Comprehensive Income	8
(3)	Consolidated Statement of Changes in Shareholders' Equity	9
(4)	Consolidated Statement of Cash Flows	10
(5)	Notes on Consolidated Financial Statements	11
	(Notes Regarding Assumption of a Going Concern)	11
	(Mergers and Acquisitions)	12
	(Segment Information)	14
	(Per Share Information)	15
	(Significant Subsequent Events)	16

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English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Qualitative Information Regarding Results for the period

1. Overview of Operating Results during the period

The Group started reporting consolidated financial statements from the current consolidated fiscal year, therefore has not conducted a comparative analysis with the same consolidated period of the previous year or the end of the previous consolidated fiscal year.

The digital marketing services market, which the SaaS (Software as a Service) business of the Company belongs to, continues to grow. On the other hand, as a result of the introduction of various marketing tools by each company, the marketing industry is facing the challenge of "fragmented customer experience" This presents difficulties when companies attempt to take the customer's point of view and consider what kind of experience would satisfy the customer. This challenge has been exacerbated by the ongoing marketing trend in which the customer's existence is only recognized as a pile of data and figures.

The Company offers KARTE a customer experience SaaS platform, and is continuously enhancing the functions of KARTE to "understand each and every customer" in a multifaceted manner including both quantitative and qualitative aspects, and is reinforcing its analysis and action functions. KARTE is being utilized not only in the digital marketing services domain, but also in a number of other divisions like customer support and sales since it offers a path to the customer's viewpoint, and the service's user companies are cropping up more and more across different industries.

During the consolidated fiscal year, the Company strengthened the support for existing customers and further promoted sales of optional products, and made upfront investment with an eye on future growth such as marketing and talent acquisition as well.

Consequently, as of September 30, 2021, ARR (Note 1) amounted to 5,807,400 thousand yen, the number of subscriptions (Note 2) was 806, average revenue per account (Note 3) was 600 thousand yen, the number of customers utilizing our services and products was 538, the average revenue per customer (Note 4) was 899 thousand yen, and the subscription revenue ratio (Note 5) came to 95.3%.

As a result of the above, net sales for the current consolidated period totaled 5,444,810 thousand yen. On the profit front, operating income was 170,616 thousand yen, as solid sales and an improvement in the gross profit margin due to more efficient use of servers outweighed upfront investments for future growth. However, as a result of posting listing expenses related to being listed on the Tokyo Stock Exchange Mothers market as temporary expenses, the Company recorded an ordinary loss of 105,786 thousand yen. As for extraordinary losses, while a loss on valuation of investment securities was recorded as an extraordinary loss, a gain on step acquisitions was recorded as an extraordinary gain, resulting in a net loss attributable to shareholders of the parent company of 106,650 thousand yen.

The description by segment is omitted because the SaaS business is the only segment of the Group.

Notes: 1. ARR: Annual Recurring Revenue. It is calculated by multiplying monthly subscription revenue at the end of each quarter by 12. This figure serves as a performance indicator for net sales, expected to be obtained over the 12 months starting from the month following the final month of the fiscal year only from existing subscriptions. This assumes all existing subscriptions will be renewed at their various renewal timings.

1. 1. Refers to the total number of websites and smartphone applications implementing our services and products at the end of each quarter.
   2. It is calculated by dividing monthly subscription revenue at the end of each quarter by the number of subscriptions as of the end of the same period.
   3. It is calculated by dividing monthly subscription revenue at the end of each quarter by the number of customers implementing our services and products as of the end of the same period.
   4. Refers to the ratio of the total amount of monthly charges for KARTE that can be earned on a recurring basis to net sales.
2. Overview of Financial Position during the period

(Current assets)

Current assets as of September 30, 2021, were 4,956,539 thousand yen. This largely broke down into cash and deposits totaling 4,172,117 thousand yen and notes and accounts receivable-trade totaled 645,983 thousand yen.

(Non-current assets)

Non-current assets as of September 30, 2021, were 2,027,410 thousand yen. This largely broke down into goodwill totaling 1,605,111 thousand yen, lease and guarantee deposits totaling 285,377 thousand yen, and investment securities totaling 84,645 thousand yen.

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