ULURU : Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 (Three Months Ended June 30, 2021)

		August 13, 2021
	Summary of Consolidated Financial Results
	for the First Quarter of the Fiscal Year Ending March 31, 2022
	(Three Months Ended June 30, 2021)
		[Japanese GAAP]
Company name:	ULURU.CO., LTD.	Listing: Tokyo Stock Exchange (Mothers)
Stock code:	3979	URL: https://www.uluru.biz/
Representative:	Tomoya Hoshi, Representative Director and President
Contact:	Hirokazu Kondo, Director, Chief Financial Officer
	Tel: [phone]

Scheduled date of filing of Quarterly Report:	August 13, 2021
Scheduled date of payment of dividend:	-

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results meeting:

None

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Three Months (April 1, 2021 - June 30, 2021) of the Fiscal Year Ending March 31, 2022

(1) Consolidated operating results												(Percentages represent year-on-year changes)
										Operating									Profit
	Net sales			EBITDA*			Ordinary profit			attributable to
					profit
																			owners of parent
	Million yen	%		Million yen	%		Million yen	%		Million yen		%	Million yen	%
Three months ended Jun. 30, 2021	925	45.6			37	397.8				20	-			30		124.8		(9)	-
Three months ended Jun. 30, 2020	635	9.7			7	(83.7)				(2)	-			13		(64.3)		4	(85.5)
*EBITDA = Operating profit + Depreciation + Amortization of goodwill
Note: Comprehensive income (million yen)		Three months ended Jun. 30, 2021:	(9)	(-%)
				Three months ended Jun. 30, 2020:	2	(down 91.5%)
	Net income per		Diluted net income per
	share						share
			Yen							Yen
Three months ended Jun. 30, 2021	(2.91)						-
Three months ended Jun. 30, 2020			1.27						1.26
(2) Consolidated financial position
	Total assets				Net assets			Equity ratio
		Million yen			Million yen							%
As of Jun. 30, 2021			4,089				2,177						53.3
As of Mar. 31, 2021			4,198				2,208						52.6
Reference: Shareholders' equity (million yen)	As of Jun. 30, 2021:	2,177				As of Mar. 31, 2021:	2,208
2. Dividends
										Dividend per share
			1Q-end			2Q-end			3Q-end	Year-end		Total
					Yen				Yen						Yen				Yen			Yen
Fiscal year ended Mar. 31, 2021						-			0.00					-		0.00			0.00
Fiscal year ending Mar. 31, 2022						-
Fiscal year ending Mar. 31, 2022 (forecast)								0.00					-		0.00			0.00

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		EBITDA		Operating profit	Ordinary profit	Profit attributable	Net income
			to owners of parent	per share
	Million yen		%	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	3,900		21.1	(250)		-	(340)	-	(340)	-	(380)	-	(111.06)

Notes: 1. Revisions to the most recently announced consolidated forecast: None

2. There is no first half forecast because ULURU manages performance on a fiscal year basis.

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Application of special accounting methods for presenting quarterly consolidated financial statements: None
3. Changes in accounting policies and accounting-based estimates, and restatements
4. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
5. Number of issued shares (common stock)
6. 1. Number of shares issued at the end of period (including treasury shares)

As of Jun. 30, 2021:	3,425,500 shares	As of Mar. 31, 2021:	3,425,500 shares
2) Number of treasury shares at the end of period
As of Jun. 30, 2021:	128 shares	As of Mar. 31, 2021:	128 shares
3) Average number of shares during the period
Three months ended Jun. 30, 2021:	3,425,372 shares	Three months ended Jun. 30, 2020:	3,417,592 shares

• The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
• Explanation of appropriate use of earnings forecasts, and other special items
  Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the ULURU's management at the time the materials were prepared but are not promises by ULURU regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 5 for forecast assumptions and notes of caution for usage.

ULURU.CO.,LTD. (3979) Financial Results for the First Quarter of FY3/22

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	4
(3)	Explanation of Consolidated Forecast and Other Forward -looking Statements	5
2. Quarterly Consolidated Financial Statements and Notes	6
(1)	Quarterly Consolidated Balance Sheet	6
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	7
	Quarterly Consolidated Statement of Income
	For the Three-month Period	7
	Quarterly Consolidated Statement of Comprehensive Income
	For the Three-month Period	8
(3)	Notes to Quarterly Consolidated Financial Statements	9
	Going Concern Assumption	9
	Significant Changes in Shareholders' Equity	9
	Segment and Other Information	10

1

ULURU.CO.,LTD. (3979) Financial Results for the First Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

Japan's working age population is forecast to decrease by about 16 million between 2017 and 2040 according to the 2018 White Paper on Information and Communications in Japan. This outlook points to serious social and economic issues as a labor shortage reduces the size of the economy and makes Japan less competitive in global markets. Based on the vision of "make the world more convenient with the power of people," the ULURU Group operates many businesses, primarily using the software -as-a-service (SaaS) model. By providing alternative solutions for labor shortages in a broad range of fields, this model enables us to function as a company that hel ps solve problems involving Japan's severe labor shortage.

In November 2003, we started the Business Process Outsourcing (BPO) business to meet the outsourcing needs of companies with the goal of establishing the standard for employees working at home rat her than the company's workplace. The diversity of our customers' needs increased along with the volume of orders we received. We responded by launching a crowdsourcing business called Shufti in February 2007. Shufti increases the efficiency of the BPO business by facilitating direct matching of the requirements of client companies and the availability of crowdworkers, chiefly housewives, without using the ULURU Group. In addition, we used knowledge acquired from BPO operations and the resources of the crowdsourcing business to start the Crowd Generated Service (CGS) business, which allows the ULURU Group itself to utilize crowdworkers. In September 2008, we started the NJSS (Nyusatsu Joho Sokuho Service) business, an up-to-date and other bid solicitations database service about bids and winning bids for public-sector tenders in Japan. This business currently accounts for the majority of our sales and earnings. In October 2014, we launched en-photo, a photo sales management system for nursery schools and kindergartens. In February 2019, we started the fondesk, a telephone call answering service that uses crowdworkers. To benefit from synergies with en-photo, we made OurPhoto Co., Ltd. a wholly owned subsidiary in December 2020. This company operates a matching service for its members and professional photographers. These operations are the current business portfolio of the ULURU Group. NJSS, fondesk and en -photo are all SaaS operations, which makes the SaaS category the basis for the growth of the ULURU Group.

Japan's SaaS market was 601.6 billion yen in fiscal 2019 and is expected to grow to 1,117.8 billion yen in fiscal 2024 according to "Software Business New Markets 2020" by Fuji Chimera Research Institute, Inc. The size of the crowdsourcing market, which provides people for the CGS business, was 182.0 billion yen (based on value of orders) in fiscal 2018, 34.8% higher than in fiscal 2017, and is expected to grow to 261.0 billion yen in fiscal 2021 according to "BPO Market Status and Outlook 2018-2019" by Yano Research Institute Ltd.

The business climate was consistently uncertain during the first quarter of the fiscal year ending March 2022 because of COVID-19. During this period, the ULURU Group continued to make progress with numerous initiatives for accomplishing the three medium-term goals of the medium-term business plan for the five-year period ending in March 2024 that was announced on May 14, 2019 and revised on May 14, 2021. These goals are sustained growth of the NJSS business, the addition and growth of new CGS businesses that generate recurring revenue, and high profitability of the BPO business.

During the first quarter, net sales increased 45.6% year-on-year to 925 million yen, EBITDA (Operating profit + Depreciation + Amortization of goodwill) increased 397.8% to 37 million yen, operating profit was 20 million yen compared with a loss of 2 million yen one year earlier, ordinary profit increased 124.8% to 30 million yen, and the loss attributable to owners of parent was 9 million yen compared with a profit of 4 million yen one year earlier.

ULURU has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) from the beginning of the first quarter of the current fiscal year. Please refer to "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies" for the effects of the application of the new standard on financial position and operating results.

2

ULURU.CO.,LTD. (3979) Financial Results for the First Quarter of FY3/22

Business segment sales were as follows.

(Millions of yen)

	First quarter of FY3/21	First quarter of FY3/22	YoY change in
Segment	(Apr. 1, 2020 - Jun. 30, 2020)	(Apr. 1, 2021 - Jun. 30, 2021)
net sales (%)
	Net sales	Comp. (%)	Net sales	Comp. (%)
CGS Business	462	72.8	671	72.5	45.0
NJSS	371	58.4	467	50.6	26.0
fondesk	41	6.5	102	11.1	146.9
Photo	46	7.3	101	10.9	119.3
Others	3	0.6	-	-	-
BPO Business	165	26.0	247	26.7	49.5
Crowdsourcing Business	7	1.2	7	0.8	(3.8)
Total	635	100.0	925	100.0	45.6

1) CGS NJSS

NJSS is the primary SaaS of the CGS business. We have been able to steadily increase the number of customers who have purchased contracts while holding down contract cancellations by optimizing NJSS sales framework. Due to these activities, the number of customers who have purchased contracts for viewing data about public -sector bids and winning bids increased by 179 during the first quarter to a record-high 4,139 companies as of the end of June 2021.

Activities that began in the previous fiscal year to increase rates received for this service resulted in an increase in average revenue per user (ARPU: daily sales per user) to 1,227 yen, 3% higher than one year earlier. In addition, due to an improvement in customer success, the average annual churn rate calculated based on fee-paying contracts decreased from 1.7% (as of the end of March 2021) to 1.6%. This improvement also resulted in a higher customer lifetime value (LTV).

Because of the consistent growth in the number of fee-paying contracts along with improvements in the ARPU and churn rate, annual recurring revenue (ARR) continued to climb, reaching 1, 850 million yen.

Consequently, NJSS sales increased 26.0% year-on-year to 467 million yen, EBITDA was up 9.4% to 191 million yen and segment profit was up 9.5% to 190 million yen.

NJSS KPI			FY3/21				FY3/22
	1Q	2Q		3Q	4Q	1Q	2Q		3Q	4Q
Fee-paying contracts		3,395	3,571		3,749	3,960	4,139	-		-	-
ARPU (Yen)		1,188	1,207		1,221	1,223	1,227	-		-	-
Churn rate (%)		2.0	2.0		1.9	1.7	1.6	-		-	-
LTV (Thousands of yen)	1,621	1,665		1,773	1,943	2,093	-		-	-
ARR (Millions of yen)		1,467	1,585		1,684	1,744	1,848	-		-	-
Notes: 1. ARPU:	Daily sales per fee-paying contracts

2. Churn rate: Ratio of cancellations during a month to the number of fee-paying contracts at the end of the previous month; 12-month averages are shown in this table.

3. LTV:	ARPU × (1/Churn rate) × Gross profit margin of 90%
4. ARR:	Quarterly subscription sales multiplied by four

2) CGS fondesk

In the fondesk SaaS business, the awareness of this service increased as a method for supporting the digital transformation of back office tasks in conjunction with the growth of remote work due to COVID -19. This business achieved a steady growth as the number of fee-paying contracts increased by 322 from the end of March 2021 to 2,552 at the end of June 2021. However, expenses increased because of marketing activities and other reasons.

Sales of fondesk increased 146.9% to 102 million yen, EBITDA was 1 million yen compared with an 11 million yen loss one year earlier and segment profit was 1 million yen compared with an 11 million yen loss one year earlier.

fondesk KPI		FY3/21				FY3/22
1Q	2Q		3Q	4Q	1Q	2Q		3Q	4Q
Fee-paying contracts	1,017	1,540		1,897	2,230	2,552	-		-	-

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