ULURU : Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 (Six Months Ended Sep 30, 2021)

		November 12, 2021
	Summary of Consolidated Financial Results
	for the Second Quarter of the Fiscal Year Ending March 31, 2022
	(Six Months Ended September 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:	November 12, 2021
Scheduled date of payment of dividend:	-

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results meeting:

Yes (for institutional investors and analysts) *Individual investors can watch the meeting online

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

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

(1) Consolidated operating results							(Percentages represent year-on-year changes)
													Profit
	Net sales		EBITDA*	Operating profit		Ordinary profit	attributable to
													owners of parent
	Million yen	%		Million yen	%	Million yen		%	Million yen	%	Million yen		%
Six months ended Sep. 30, 2021	1,922	36.2			71	(13.0)	35	(42.0)		43	(44.2)	(53)		-
Six months ended Sep. 30, 2020	1,411	19.2			81	41.5	61		47.8		77	93.5	32		151.4
*EBITDA = Operating profit + Depreciation + Amortization of goodwill
Note: Comprehensive income (million yen)			Six months ended Sep. 30, 2021:	(53)	(-%)
				Six months ended Sep. 30, 2020:	31	(up 146.7%)
	Net income per share	Diluted net income per share
				Yen					Yen
Six months ended Sep. 30, 2021			(7.83)					-
Six months ended Sep. 30, 2020			4.73					4.68

Note: ULURU conducted a 2-for-1 common stock split on October 1, 2021.

Net income per share and diluted net income per share have been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31, 2021.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
		Million yen		Million yen	%
As of Sep. 30, 2021		4,209		2,138	50.8
As of Mar. 31, 2021		4,198		2,208	52.6
Reference: Shareholders' equity (million yen)	As of Sep. 30, 2021:	2,138	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	-	0.00
Fiscal year ending Mar. 31, 2022 (forecast)			-		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)	-	(55.53)

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

1. There is no first half forecast because ULURU manages performance on a fiscal year basis.
2. ULURU conducted a 2-for-1 common stock split on October 1, 2021.
   Forecasts for the fiscal year ending March 31, 2022 is the amount after the stock split.
   Regarding the stock split, please see the press release dated September 15, 2021 (Japanese version only).

* 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 Sep. 30, 2021:	6,902,000 shares	As of Mar. 31, 2021:	6,851,000 shares
2) Number of treasury shares at the end of period
As of Sep. 30, 2021:	256 shares	As of Mar. 31, 2021:	256 shares
3) Average number of shares during the period
Six months ended Sep. 30, 2021:	6,851,022 shares	Six months ended Sep. 30, 2020:	6,835,232 shares

Note: ULURU conducted a 2-for-1 common stock split on October 1, 2021. The number of shares issued at the end of period, number of treasury shares at the end of period and average number of shares during the period have been calculated as if this stock split has taken place at the beginning of the fiscal year ended March 31, 2021.

• 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 Note concerning forward-looking statements
  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.
  How to view supplementary information at the financial results meeting
  ULURU plans to hold an information meeting for institutional investors and analysts on November 15, 2021. Individual investors can use the internet to view this meeting.
  Materials used at this meeting were posted on the ULURU website and TDnet on the same day that results of operations were announced. ULURU plans to post a video and audio file of the information meeting on its website soon after this meeting.

ULURU.CO.,LTD. (3979) Financial Results for the Second 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 Six-month Period	7
	Quarterly Consolidated Statement of Comprehensive Income
	For the Six-month Period	8
(3)	Quarterly Consolidated Statement of Cash Flows	9
(4)	Notes to Quarterly Consolidated Financial Statements	10
	Going Concern Assumption	10
	Significant Changes in Shareholders' Equity	10
	Changes in Accounting Policies	10
	Segment and Other Information	11

1

ULURU.CO.,LTD. (3979) Financial Results for the Second 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 m akes 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 helps solve problems involving Japan's severe labor shortage.

In November 2003, we started the Business Process Outsourcing (BPO) business to meet th e outsourcing needs of companies with the goal of establishing the standard for employees working at home rather 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 2 008, 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 half 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 half, net sales increased 36.2% year-on-year to 1,922 million yen, EBITDA (Operating profit + Depreciation + Amortization of goodwill) decreased 13.0% to 71 million yen, operating profit decreased 42.0% to 35 million yen, ordinary profit decreased 44.2% to 43 million yen, and the loss attributable to owners of parent was 53 million yen compared with a profit of 32 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, (4) 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 Second Quarter of FY3/22

Business segment sales were as follows.

(Millions of yen)

	First half of FY3/21	First half of FY3/22	YoY change in
Segment	(Apr. 1, 2020 - Sep. 30, 2020)	(Apr. 1, 2021 - Sep. 30, 2021)
net sales (%)
	Net sales	Comp. (%)	Net sales	Comp. (%)
CGS Business
NJSS	773	54.8	958	49.9	24.0
fondesk	103	7.3	212	11.1	105.3
Photo	88	6.3	191	10.0	116.0
Others	6	0.5	-	-	-
BPO Business	424	30.1	545	28.4	28.4
Crowdsourcing Business	14	1.1	14	0.8	(2.8)
Total	1,411	100.0	1,922	100.0	36.2

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 428 during the first half to a record-high 4,388 companies as of the end of September 2021.

Average revenue per user (ARPU; daily sales per user) declined temporarily due to tight sales resources caused by the increase in customer support following the release of the new system and focus on capturing new contracts. However, due to an improvement in customer success, the average annual churn rate cal culated based on fee-paying contracts decreased from 1.7% (as of the end of March 2021) to 1.5%. This improvement also resulted in a higher customer lifetime value (LTV). Accordingly, annual recurring revenue (ARR) continued to climb, reaching 1,900 million yen.

We are making steady progress with activities based on the medium -term business plan, including the first step in July of the updating of our products. Expenses increased because of higher product development and other expenses associated with these updating activities.

Consequently, NJSS sales increased 24.0% year-on-year to 958 million yen, EBITDA was down 0.8% to 370 million yen and segment profit was down 1.0% to 367 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	4,388		-	-
ARPU (Yen)		1,188	1,207		1,221	1,223	1,227	1,199		-	-
Churn rate (%)		2.0	2.0		1.9	1.7	1.6	1.5		-	-
LTV (Thousands of yen)	1,594	1,695		1,748	1,917	2,153	2,229		-	-
ARR (Millions of yen)		1,467	1,585		1,684	1,744	1,848	1,936		-	-
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 CGS business, there was an increase in expenses in the fondesk SaaS business because of expenditures for marketing and other activities to generate growth. The performance of fondesk benefited from the increasing awareness of this service as a method for supporting the digital transformation of back office tasks, which is needed due to the growth of remote work during the pandemic. By successfully targeting the demand for this support, fondesk consistently increased the number of fee -paying contracts. The result was 2,814 contracts at the end of September 2021, 584 more than at the end of March 2021.

Sales of fondesk increased 105.3% to 212 million yen, EBITDA was 3 million yen compared with a 19 million yen loss one year earlier and segment profit was 3 million yen compared with a 19 million yen loss one year earlier.

3