PLAID : Financial Results for the 2nd Quarter of the Fiscal Year Ending 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.

Financial Results for the 2nd Quarter of the Fiscal Year Ending September 30, 2021

(Japanese GAAP)

May 13, 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 to file quarterly securities report:	May 13, 2021
Preparation of supplementary materials for quarterly results:	Yes
Holding of financial results meeting:	Yes

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

1. Non-Consolidated Financial Results for the 2nd Quarter of the Fiscal Year Ending September 30, 2021 (from October 1, 2020 to March 31, 2021)

(1) Non-consolidated operating results									(Percentages indicate year-on-year changes.)
		Net sales			Operating income (loss)	Ordinary income (loss)		Net income (loss)
Six months ended	Millions of yen	%				Millions of yen	%	Millions of yen	%		Millions of yen	%
March 31, 2021	2,532	-					133		-	(71)	-		(143)	-
March 31, 2020			-	-					-		-		-	-					-	-
		Net income (loss) per share	Diluted income (loss) per share
Six months ended									Yen				Yen
March 31, 2021						(3.91)					-
March 31, 2020								-					-
(2) Non-consolidated Financial position
				Total assets							Net assets		Equity-to-asset ratio
				Millions of yen				Millions of yen								%
As of March 31, 2021						6,141				4,806								78.3
As of September 30, 2020						3,068				1,604								52.3
Reference:	Equity
	As of March 31, 2021: 4,806 millions of yen
	As of September 30, 2020: 1,604 millions of yen
2. Non-Consolidated Dividends
												Dividend per share
				End of						End of			End of		Year-end				Annual
				1st quarter			2nd quarter			3rd quarter
					Yen				Yen			Yen				Yen		Yen
Fiscal year ended				-						0.00			-			0.00			0.00
September 30, 2020
Fiscal year ending			-						0.00
September 30, 2021
Fiscal year ending												-			0.00			0.00
September 30, 2021 (Forecast)
Note: Revisions to the forecasts	of cash dividends most recently announced: None

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.

3. Forecast of Non-Consolidated Results for Fiscal Year Ending September 30, 2021 (October 1, 2020 to September 30, 2021)

							(Percentages indicate year-on-year changes.)
	Net sales		Operating income	Ordinary income	Net income (loss)	Net income (loss)
		(loss)		(loss)		per share
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen	yen	yen	yen
Full Year	5,211	30.0	25	-	(235)	-	(238)	-	(6.51)

Note: Revisions to the forecast of results since most recent announcement: None

• Notes
• 1. Application of specific accounting for preparing the quarterly consolidated financial statements: None
  2. Changes in accounting policies, accounting estimates and restatement
  3. 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
  4. Number of issued shares (Common shares)

  a. Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021			37,855,900 shares
b. Number	As of September 30, 2020			35,408,900 shares
of treasury shares at the end of the period
	As of March 31, 2021			-
c. Average	As of September 30, 2020			-
number of outstanding shares during the period
	As of March 31, 2021		36,667,285 shares
	As of March 31, 2020		-

• This quarterly financial results report is out of scope from audit conducted by certified public accountants or audit firms.

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.

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	3
(3)	Overview of Cash Flows during the period	4
(4)	Future Outlook	4
2. Quarterly Non-Consolidated Financial Statements and Significant Notes Thereto	5
(1)	Quarterly Non-Consolidated Balance Sheets	5
(2)	Quarterly Non-Consolidated Statements of Income	6
(3)	Quarterly Non-Consolidated Statements of Cash Flow	7
(4)	Notes on Quarterly Non-Consolidated Financial Statements	8
	(Notes Regarding Assumption of a Going Concern)	8
	(Notes on Significant Changes in the Amount of Shareholders' Equity)	8

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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

The forward-looking statements contained in the descriptions below are forecasts determined as of March 31, 2021. Since the Company has not prepared quarterly financial statements for the 1st six months of the previous fiscal year, the Company does not conduct a comparative analysis with the same period of the previous fiscal year.

(1) Overview of Operating Results during the period

The digital marketing services market, which the SaaS 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 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.

The Company took action for ongoing acquisition of new customers and, in particular, worked toward stronger support for existing customers and promotion of sales for optional products to the same during the 1st six months of the current fiscal year.

Consequently, as of March 31, 2021, ARR (Note 1) amounted to 5,169,000 thousand yen, the subscription revenue ratio (Note 2) came to 95.0%, the number of subscriptions (Note 3) was 752, average revenue per account (Note 4) was 572 thousand yen, the number of customers utilizing our services and products was 502, and average revenue per customer (Note 5) was 858 thousand yen.

Therefore, results for the 1st six months of the fiscal year ending September 30, 2021, were net sales of 2,532,383 thousand yen and operating income of 133,459 thousand yen. However, as a result of booking temporary listing expenses for its listing on the Tokyo Stock Exchange Mothers, the Company recorded an ordinary loss of 71,321 thousand yen. The Company also posted an extraordinary loss on valuation of investment securities and therefore recorded a loss of 143,506 thousand yen for the 1st six months of the current fiscal year.

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

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. 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. Refers to the total number of websites and smartphone applications implementing our services and products at the end of each quarter.
3. Average revenue per account 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.
4. 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.

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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. Overview of Financial Position during the period
   (Assets)
   Current assets as of March 31, 2021 were 5,787,297 thousand yen, up 3,144,936 thousand yen from September 30, 2020. This was mainly due to an increase of 3,095,078 thousand yen in cash and deposits as a result of issuing new shares associated with the listing on the Tokyo Stock Exchange Mothers. Non-current assets were 354,547 thousand yen, down 72,084 thousand yen from September 30, 2020. This was mainly due to a decrease of 70,283 thousand yen in investments and other assets, as a result of posting a loss on valuation of investment securities.
   As a result, total assets as of March 31, 2021 were 6,141,845 thousand yen, up 3,072,851 thousand yen from September 30, 2020.
   (Liabilities)
   Current liabilities as of March 31, 2021 were 1,110,581 thousand yen, up 25,722 thousand yen from September 30, 2020. This was mainly due to an increase of 33,320 thousand yen in current portion of long- term debt, and increases in accrued consumption taxes included in other current liabilities. Non-current liabilities as of March 31, 2021 were 224,520 thousand yen, a decrease of 155,520 thousand yen from September 30, 2020. This was due to a decrease in long-term debt.
   As a result, total liabilities as of March 31, 2021, were 1,335,101 thousand yen, down 129,797 thousand yen from September 30, 2020.
   (Net assets)
   Total net assets as of March 31, 2021 were 4,806,743 thousand yen, up 3,202,649 thousand yen from September 30, 2020. This was mainly due to increases of 1,672,792 thousand yen in both common stock and additional paid-in capital, by reason of the issuance of new shares associated with the listing on the Tokyo Stock Exchange Mothers, and of a net loss of 143,506 thousand yen for the 1st six months of the current fiscal year.
   As a result, the equity-to-asset ratio was 78.3% as of March 31, 2021 (52.3% as of September 30, 2020).

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