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

TEMONA. Inc. (3985) - Earnings Report for the Second 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.

May 13, 2022

TEMONA. Inc.

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

[Japanese GAAP] (Consolidated)

Stock listings:	Tokyo Stock Exchange (Prime Market)
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:	May 13, 2022
Dividend payout:	-
Supplementary materials to financial results available:	Yes
Quarterly earnings presentation held:	Yes (for institutional investors and analysts)
	(Amounts rounded down to the nearest million yen)

1. Financial Results for the Six Months Ended March 31, 2022 (October 1, 2021 to March 31, 2022)

(1) Operating Results				(Percentage figures represent year-on-year changes)
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of the parent
Six Months Ended	¥ million	%	¥ million	%	¥ million	%	¥ million	%
Mar. 31, 2022	953		-	57		-	49		-	15		-
Mar. 31, 2021	-		-	-		-	-		-	-		-

Note: Comprehensive income	Six months ended Mar. 31, 2022:	¥15 million [-%]
		Six months ended Mar. 31, 2021:	¥ - million [-%]
	Basic earnings per	Diluted earnings per
		share	share
Six Months Ended
Mar. 31, 2022	1.43		1.42
Mar. 31, 2021		-		-

Notes: 1. applied effective from the beginning of the first quarter of the fiscal year ending September 30, 2022, and the figures for the six months ended March 31, 2022, have been calculated with application of said accounting standard, etc.

1. 2. The Company started preparing quarterly consolidated financial statements from the second quarter of the fiscal year ending September 30, 2022. For this reason, operating results for the six months ended March 31, 2021, and year-on-year changes are not presented.

2. Financial Position

			Total assets	Net assets	Equity ratio
			¥ million		¥ million	%
As of Mar. 31, 2022	2,092		1,376	65.5
As of Sep. 30, 2021	-		-	-
Reference: Total			equity: Mar. 31, 2022: ¥1,370 million	Sep. 30, 2021: ¥- million
Notes: 1.				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 six months ended March 31, 2022, have been calculated with application of said accounting standard, etc.

2. The Company started preparing quarterly consolidated financial statements from the second quarter of the

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

fiscal year ending September 30, 2022. For this reason, financial position as of September 30, 2021 is not presented.

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			0.00
Sep. 30, 2022
FY Ending
Sep. 30, 2022								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. No changes were made to the latest release of consolidated earnings forecasts.

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. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Use of accounting methods specific to preparation of the quarterly financial statements: Yes

Note:

11 Consolidated Financial Statements

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)
4. 1. Number of shares issued at end of period (treasury shares included):

	March 31, 2022:	11,389,592 shares
	September 30, 2021:	11,389,592 shares
2)	Number of shares held in treasury at end of period:
	March 31, 2022:	745,317 shares
	September 30, 2021:	745,317 shares
3)	Average number of shares outstanding during the period:
	March 31, 2022:	10,644,275 shares
	March 31, 2021:	10,574,026 shares

Note. these trusts (September 30, 2021: 744,500 shares, March 31, 2022: 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.

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

*Appropriate Use of Earnings Forecasts and Other Important Information

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, Consolidated Earnings Forecast and Other Forward-

(Supplementary materials to quarterly financial results)

Supplementary materials to the quarterly financial results (Fact Sheets) will be posted on the Company's website on May 13, 2022.

	TEMONA. Inc. (3985) - Earnings Report for the Second Quarter of the Fiscal Year Ending September 30,
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. Consolidated Financial Statements and Main Notes			6
(1)	Consolidated Balance Sheet			6
(2)	Consolidated Statement of Income and Consolidated Statement of omprehensive Income	8
(3)	Consolidated Statement of Cash Flows			10
(4)	Notes on the Consolidated Financial Statements			11
	(Notes on the going-concern assumption)			11
	(Notes on significant changes in the amount of		equity)	11
	(Use of accounting methods specific to preparation of the quarterly consolidated financial statements)
				11
	(Changes in accounting policy)			11
	(Additional information)			11
	(Segment information)			12
	(Business combination and related matters)			12
	(Significant subsequent events)			14

1

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

1. Explanation of Operating Results and Financial Position

(1) Operating Results

Forward-looking statements in this document are based on information available to the Company as of the last day of the second quarter of the fiscal year ending September 30, 2022.

The Company completed the acquisition of 100% of the shares of AIS Inc. on March 1, 2022. Accordingly, the Company has begun preparing quarterly consolidated financial statements starting from the second quarter of the fiscal year ending September 30, 2022. Comparisons with the same period of the previous year are comparisons of the cumulative results of the first two quarters of the fiscal year. In addition, as the deemed acquisition date for the AIS Inc. acquisition was the last day of the second quarter of the fiscal year ending September 30, 2022, AIS Inc. is included only in the balance sheet of the consolidated financial statements for the second quarter of the fiscal year ending September 30, 2022, and its business results are not included.

1. Operating Results and Financial Position

1. Analysis of Operating Results

In the six months ended March 31, 2022, the Japanese economy remained hampered by the prolonged impact of the COVID-19 pandemic. Meanwhile, the destabilization of the global geopolitical situation and rising resource prices caused by the Ukraine crisis have added to the uncertainty clouding the economic outlook. According to a Ministry of Economy, Trade and Industry survey on the domestic e-commerce market, a market -to-consumere--

in 2020 decreased 0.43% year on year to 19.3 trillion yen while business-to- business e-- 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

first quarter of the fiscal year ending September 30, 2022, and all figures for the first six months of the fiscal year have been calculated with application of this accounting standard. As the application of this new

fiscal year, the year-on-year comparisons in the table below do not include absolute or percentage year-on- year changes.

2