TeamSpirit : Consolidated Financial Results for the Fiscal Year Ended August 31, 2022 Q3 (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.

July 13, 2022

Consolidated Financial Results for FY2022 Q3

(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:	July 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of financial results briefing:	Yes

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

1. Consolidated financial results for the nine months ended May 31, 2022 (from September 1, 2021 to May 31, 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
Nine months ended	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen	%
May 31, 2022	2,403		11.6	-32		-116.3	-38	-118.9		-60	-141.9
May 31, 2021	2,152		20.2	197		-16.3	202	-15.2		144	27.6
Note: Comprehensive income For the nine months ended May 31, 2022:	¥-52 million	[-135.6%]
	For the nine months ended May 31, 2021:	¥146 million	[30.2%]
	Basic earnings	Diluted earnings
	per share		per share
Nine months ended			Yen			Yen
May 31, 2022			-3.71			-
May 31, 2021			8.88			8.87
(2) Consolidated financial position
	Total assets		Net assets		Equity-to-asset ratio
As of	Millions of yen	Millions of yen		%
May 31, 2022			3,304			1,561		47.2
August 31, 2021			3,171			1,577		49.7
Reference: Equity
As of May 31, 2022:		¥1,561 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
	Yen		Yen		Yen		Yen		Yen
Fiscal year ended	-	0.00	-	0.00	0.00
August 31, 2021
Fiscal year ending	-	0.00	-
August 31, 2022
Fiscal year ending
August 31, 2022						0.00	0.00
(Forecast)

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	Basic earnings
		owners of parent	per share
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen	yen	yen	yen
Fiscal year ending	3,300	13.9	-200	-218.3	-200	-214.5	-140	-214.0	-8.63
to	to	to	to	to	to	to	to	to
August 31, 2022
3,350	15.6	-150	-188.7	-150	-185.9	-105	-185.5	-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
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

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

(ii) Number of treasury shares at the end of the period

As of May 31, 2022	515 shares
As of August 31, 2021	315 shares

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

Nine months ended May 31, 2022	16,268,341 shares
Nine months ended May 31, 2021	16,223,480 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 Q3

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) Notes to the quarterly consolidated financial statements ………………………………………………	5
(Notes regarding going concern assumption) …………………………………………………………	5
(Notes on significant changes in the amount of shareholders' equity) ………………………………..	5
(Changes in accounting policies) ……………………………………………………………………...	5

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TeamSpirit Inc. (TSE 4397)

Consolidated Financial Results for FY2022 Q3

1. Quarterly consolidated financial statements and primary notes

1. Quarterly consolidated balance sheet

					(Thousands of yen)
			As of August 31, 2021		As of May 31, 2022
Assets
Current assets
Cash and deposits			2,447,990		2,462,040
Accounts receivable - trade	22,804	-
Accounts receivable	- trade and contract	-	29,810
assets
Advance payments to suppliers	225,444	255,790
Other			57,720	94,175
Allowance for doubtful accounts	-17		-305
Total current assets			2,753,943		2,841,512
Non-current assets
Property, plant and equipment	59,051	52,672
Intangible assets			145		100
Investments and other assets	358,833		410,539
Total non-current assets	418,029	463,312
Total assets			3,171,972	3,304,825
Liabilities
Current liabilities
Accounts payable - trade	14,622	7,330
Income taxes payable			103,570		16,930
Deferred revenue			1,193,715	1,410,581
Provision for bonuses			9,180	6,369
Other			273,515		302,317
Total current liabilities	1,594,603		1,743,530
Total liabilities			1,594,603	1,743,530
Net assets
Shareholders' equity
Share capital			802,288		813,375
Capital surplus			792,288	803,375
Retained earnings			-17,365	-63,794
Treasury shares			-509		-509
Total shareholders' equity	1,576,701		1,552,447
Accumulated other comprehensive income
Foreign currency translation adjustment	667	8,847
Total accumulated	other comprehensive	667	8,847
income
Total net assets			1,577,369	1,561,295
Total liabilities and net assets		3,171,972	3,304,825

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