TeamSpirit : Consolidated Financial Results for the Fiscal Year Ended August 31, 2022 Q2 (Under Japanese GAAP)

Note:This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for FY2022 Q2

(Under Japanese GAAP)

Company name:	TeamSpirit Inc.
Listing:	Tokyo Stock Exchange
Securities code:	4397
URL:	https://corp.teamspirit.com/ja-jp/
Representative:	Koji Ogishima, CEO
Inquiries:	Yasufumi Yamashita, CFO
Telephone:	[phone]

Scheduled date to file quarterly securities report: Scheduled date to commence dividend payments:

April 14, 2022 -

Preparation of supplementary material on quarterly financial results: YesHolding of financial results briefing:

1.

Consolidated financial results for the six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

April 13, 2022

Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

(Percentages indicate year-on-year changes.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Six months ended February 28, 2022 February 28, 2021	Millions of yen 1,571 1,421	% 10.5 22.6	Millions of yen 1 191	% -99.4 48.5	Millions of yen -1 195	% -101.0 53.1	Millions of yen -24 102	% -124.2 79.1

Note:

Comprehensive income

For the six months ended February 28, 2022:	¥-22 million	[-121.6%]
For the six months ended February 28, 2021:	¥103 million	[80.9%]

Basic earnings per share	Diluted earnings per share
Six months ended February 28, 2022 February 28, 2021	Yen -1.53 6.33	Yen - 6.32

(2) Consolidated financial position

Total assets	Net assets	Equity-to-asset ratio
As of February 28, 2022 August 31, 2021	Millions of yen 3,335 3,171	Millions of yen 1,592 1,577	% 47.7 49.7

Reference:	Equity
As of February 28, 2022:	¥1,592 million
As of August 31, 2021:	¥1,577 million

2. Cash dividends

Annual dividends
First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
Fiscal year ended August 31, 2021 Fiscal year ending August 31, 2022	Yen - -	Yen 0.00 0.00	Yen -	Yen 0.00	Yen 0.00
Fiscal year ending August 31, 2022 (Forecast)	-	0.00	0.00

Note:

Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending August 31, 2022 (from September 1, 2021 to August 31, 2022)

(Percentages indicate year-on-year changes.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
Fiscal year ending August 31, 2022	Millions of yen 3,300 to 3,350	% 13.9 to 15.6	Millions of yen -200 to -150	% -218.3 to -188.7	Millions of yen -200 to -150	% -214.5 to -185.9	Millions of yen -140 to -105	% -214.0 to -185.5	Yen -8.63 to -6.47

Note: 1. Revisions to the earnings forecasts most recently announced: None

2. Consolidated earnings forecasts for the fiscal year ending August 31, 2022 are stated in range format considering impacts of changes in business environment.

* Notes

• (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

• (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

• (3) Changes in accounting policies, changes in accounting estimates, and restatement

  • (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

  • (ii) Changes in accounting policies due to other reasons: None

  • (iii) Changes in accounting estimates: None

  • (iv) Restatement: None

• (4) Number of issued shares (common shares)

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

(ii)

As of February 28, 2022	16,284,600 shares
As of August 31, 2021	16,227,600 shares

Number of treasury shares at the end of the period

As of February 28, 2022	315 shares
As of August 31, 2021	315 shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended February 28, 2022	16,260,452 shares
Six months ended February 28, 2021	16,221,578 shares

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

*Statement regarding appropriate use of forward-looking statements and other notes

Forward-looking statements, including the consolidated earnings forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Thus, the Company does not intend to commit future accomplishment. Accordingly, actual business results may differ substantially from the Company's current assessment.

TeamSpirit Inc. (TSE 4397)

Consolidated Financial Results for FY2022 Q2

Attached Material

1. Quarterly consolidated financial statements and primary notes ………………………………………… ... 2

(1) Quarterly consolidated balance sheet ………………………………………………………………… .. 2

(2) Quarterly consolidated statements of income and comprehensive income …………………………… . 3

Quarterly consolidated statement of income ……………………………………………………… .. 3

Quarterly consolidated statement of comprehensive income ……………………………………… . 4

(3) Quarterly consolidated statement of cash flows ……………………………………………………… . 5

(4) Notes to the quarterly consolidated financial statements ……………………………………………… 6

(Notes regarding going concern assumption) ………………………………………………………… 6

(Notes on significant changes in the amount of shareholders' equity) ……………………………… .. 6

(Changes in accounting policies) …………………………………………………………………… ... 6

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TeamSpirit Inc. (TSE 4397)

Consolidated Financial Results for FY2022 Q2

1. Quarterly consolidated financial statements and primary notes

(1) Quarterly consolidated balance sheet

(Thousands of yen)As of August 31, 2021

As of February 28, 2022

Assets
Current assets
Cash and deposits	2,447,990	2,513,274
Accounts receivable - trade	22,804	-
Accounts receivable - trade and contact assets	-	20,821
Advance payments to suppliers	225,444	234,493
Other	57,720	119,445
Allowance for doubtful accounts	-17	-213
Total current assets	2,753,943	2,887,821
Non-current assets
Property, plant and equipment	59,051	54,717
Intangible assets	145	115
Investments and other assets	358,833	392,408
Total non-current assets	418,029	447,241
Total assets	3,171,972	3,335,062
Liabilities
Current liabilities
Accounts payable - trade	14,622	11,273
Income taxes payable	103,570	69,397
Deferred revenue	1,193,715	1,369,623
Provision for bonuses	9,180	13,428
Other	273,515	279,196
Total current liabilities	1,594,603	1,742,920
Total liabilities	1,594,603	1,742,920
Net assets
Shareholders' equity
Share capital	802,288	813,375
Capital surplus	792,288	803,375
Retained earnings	-17,365	-27,226
Treasury shares	-509	-509
Total shareholders' equity	1,576,701	1,589,015
Accumulated other comprehensive income
Foreign currency translation adjustment	667	3,127
Total accumulated other comprehensive income	667	3,127
Total net assets	1,577,369	1,592,142
Total liabilities and net assets	3,171,972	3,335,062

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