TEMONA : ［Delayed] Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

TEMONA. Inc. (3985) - Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

This translation of the original Japanese document is provided for informational purposes only.

If there are any discrepancies between this and the original, the original Japanese document prevails.

February 10, 2022

TEMONA. Inc.

Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

[Japanese GAAP] (Non-Consolidated)

Stock listings:	Tokyo Stock Exchange (First Section)
Securities code:	3985
URL:	https://temona.co.jp/
Representative:	Hayato Sagawa, president & representative director
Information contact:	Takayuki Shigei, director & executive officer, CFO
Telephone	[phone]

Scheduled dates
Filing of statutory quarterly financial report:	February 10, 2022
Dividend payout:	-
Supplementary materials to financial results available:	Yes
Quarterly earnings presentation held:	No

(Amounts rounded down to the nearest million yen)

1. Financial Results for the Three Months Ended December 31, 2021 (October 1, 2021 to December 31, 2021)

(1) Operating Results					(Percentage figures represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit for the period
Three Months Ended	¥ million		%	¥ million		%	¥ million	%	¥ million	%
Dec. 31, 2021	465		-	38		-	37	-	15	-
Dec. 31, 2020	592		24.8	99		381.7	98	348.2	59	316.8
	Basic earnings per	Diluted earnings
	share		per share
Three Months			¥		¥
Ended
Dec. 31, 2021			1.50		1.49
Dec. 31, 2020			5.62		5.52

Note:"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied effective from the beginning of the first quarter of the fiscal year ending September 30, 2022, and the figures for the three months ended December 31, 2021, have been calculated with application of said accounting standard, etc.

For this reason, year-on-year changes for the three months ended December 31, 2021, are not provided herein.

(2) Financial Position

	Total assets	Net assets	Equity ratio
	¥ million	¥ million	%
As of Dec. 31, 2021	2,107	1,377	65.1
As of Sep. 30, 2021	2,188	1,361	61.9

Reference: Total shareholders' equity: Dec. 31, 2021: ¥1,371 million Sep. 30, 2021: ¥1,355 million

Note:"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied effective from the beginning of the first quarter of the fiscal year ending September 30, 2022, and the figures for the three months ended December 31, 2021 have been calculated with application of said accounting standard, etc.

TEMONA. Inc. (3985) - Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

2. Dividends

		Annual dividends per share
	End-first quarter	End-second		End-third quarter		Fiscal year-end		Annual total
	quarter
	¥	¥	¥	¥	¥
FY Ended	－	0.00		－	0.00	0.00
Sep. 30, 2021
FY Ending	－
Sep. 30, 2022
FY Ending
Sep. 30, 2022		0.00		－	0.00	0.00
(Forecast)

Note: No changes were made to the latest release of dividend forecasts.

3. Consolidated Earnings Forecast for the Fiscal Year Ending September 30, 2022 (October 1, 2021 to September 30, 2022)

(Percentage figures represent year-on-year changes)

								Profit
	Net sales		Operating profit	Ordinary profit	attributable to	Basic earnings
		owners of the	per share
								parent
	¥ million		%	¥ million	%	¥ million	%	¥ million		%	¥
Full year	2,394		-	204	-	204	-	133		-	12.49

Notes: 1. Changes were made to the latest release of consolidated earnings forecasts.

1. For more details about the changes, please refer to the "Notice Concerning Consolidated Earnings Forecast in Connection with Commencement of Consolidated Accounting" released today, February 10, 2022.
2. The Company did not prepare consolidated financial statements for the fiscal year ended September 30, 2021. For this reason, year-on-year changes are not provided herein.

Notes

(1) Use of accounting methods specific to preparation of the quarterly financial statements: Yes

Note: For details, please see "(Use of accounting methods specific to preparation of the financial statements)" under "(3) Notes on the Financial Statements" on page 9 in section "2. Financial Statements and Main Notes" in the Accompanying Materials.

1. Changes in accounting policy, changes in accounting estimates, and retrospective restatement:
2. 1. Changes in accordance with amendments to accounting standards: Yes
   2. Changes other than the above 1): None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
3. Number of shares issued (common stock)

1. Number of shares issued at end of period (treasury shares included): December 31, 2021: 11,389,592 shares
   September 30, 2021: 11,389,592 shares
2. Number of shares held in treasury at end of period:

December 31, 2021: 745,317 shares

September 30, 2021: 745,317 shares

1. Average number of shares outstanding during the period: December 31, 2021: 10,644,275 shares

December 31, 2020: 10,520,956 shares

Note. The Company has introduced a "Board Benefit Trust" and an "Employees Benefit Trust," The Company's shares held by these trusts (September 30, 2021: 744,500 shares, December 31, 2021: 744,500 shares) are included in the number of treasury shares.

• Quarterly earnings reports are exempt from quarterly reviews by certified public accountants and the accounting auditor.

*Appropriate Use of Earnings Forecasts and Other Important Information

TEMONA. Inc. (3985) - Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

The above forecasts, which constitute forward-looking statements, are based on information available to the Company as of the date of the release of this document. These forward-looking statements are not guarantees of future performance, and actual results may differ materially from those expressed or implied herein due to a range of factors. For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to "(3) Consolidated Earnings Forecast and Other Forward-Looking Statements" on page 5 in section "1. Explanation of Operating Results and Financial Position" in the Accompanying Materials.

(Supplementary materials to quarterly financial results)

Supplementary materials to the quarterly financial results (Fact Sheets) will be posted on the Company's website on February 10, 2022.

TEMONA. Inc. (3985) - Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

Accompanying Materials
Contents
1. Explanation of Operating Results and Financial Position	2
(1)	Operating Results	2
(2)	Financial Position	4
(3)	Consolidated Earnings Forecast and Other Forward-Looking Statements	5
2. Financial Statements and Main Notes	6
(1)	Balance Sheet	6
(2)	Statement of Income	8
(3)	Notes on the Financial Statements	9
	(Notes on the going-concern assumption)	9
	(Notes on significant changes in the amount of shareholders' equity)	9
	(Use of accounting methods specific to preparation of the financial statements)	9
	(Changes in accounting policy)	9
	(Additional information)	10
	(Segment information)	10
	(Significant subsequent events)	10

1

TEMONA. Inc. (3985) - Earnings Report for the First Quarter of the Fiscal Year Ending September 30, 2022

1. Explanation of Operating Results and Financial Position

(1) Operating Results

In the three months ended December 31, 2021, the prolonged impact of COVID-19 weighed on Japan's economy. Although progress with vaccinations offers some hope for recovery in demand, the economic outlook remains uncertain.

According to a Ministry of Economy, Trade and Industry survey on the domestic e-commerce market,

1. market connected with the Company's business, business-to-consumere-commerce("B2C-EC") market transactions in 2020 decreased 0.43% year on year to 19.3 trillion yen while business-to- business e-commerce("B2B-EC") market transactions fell 5.1% to 334.9 trillion yen.

Meanwhile, the e-commerce ratio*1, which is an indicator of the market penetration of e-commerce, continued to increase, rising to 8.08% for B2C-EC and 33.5% for B2B-EC, and the digitalization of commercial transactions is expected to continue to advance. In recent years, the continued rise in customer acquisition costs owing to population decline and other factors has boosted demand for subscription businesses, such as cloud-based businesses.

In the current business environment, the Company believes that it can contribute to society through the provision of comprehensive support for subscription businesses (which can facilitate the securing of steady revenue even in the midst of worsening economic conditions) and through helping companies to operate such businesses successfully. It is with this in mind that the Company has formulated a new medium-term management plan. The fiscal year ending September 30, 2022, is the first year covered by the medium-term management plan. During this initial fiscal year, the Company will work to reinforce its business foundations for further growth. This will involve investing in engineer personnel to expand the Company's target areas, and investing in the recruitment of human resources to expand the areas of support that the Company provides.

The following is a breakdown of revenue generated by each of the services provided by the E- Commerce Support Business, the Company's only reportable segment. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year ending September 30, 2022, and all figures for the first quarter of the fiscal year have been calculated with application of this accounting standard. As the application of this new accounting standard significantly affects the Company's sales recorded in the first quarter of the current fiscal year, the year-on-yearcomparisons in the table below do not include absolute or percentage year-on-yearchanges.

							(Unit: ¥ thousand)
			Three months ended		Three months ended
	Service	Revenue category	December 31, 2020		December 31, 2021
			Amount	Weighting	Amount	Weighting
			(%)		(%)
		Recurring revenue	78,820		13.3	99,716	21.4
		Contract
	Subsc-Store	development	30,931		5.2	12,144	2.6
		revenue
		Other revenue	51,411		8.7	18,611	4.0
a		Recurring revenue	146,174		24.7	122,752	26.4
		Contract
	Tamago Repeat	development	90		0.0	-	-
		revenue
		Other revenue	53,358		9.0	17,812	3.8
	Subtotal	360,785		60.9	271,037	58.2

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