TEMONA : ［Delayed] Earnings Report for the Fiscal Year Ended September 30, 2021

TEMONA. Inc. (3985) - Earnings Report for the Fiscal Year Ended September 30, 2021

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.

November 12, 2021

TEMONA. Inc.

Earnings Report for the Fiscal Year Ended September 30, 2021

[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, executive officer, CFO
Telephone	[phone]

Scheduled dates
Ordinary general meeting of shareholders:	December 22, 2021
Dividend payout:	-
Filing of statutory year-end financial report:	December 23, 2021
Supplementary materials to financial results available:	No
Fiscal year-end earnings presentation held:	Yes (for institutional investors and analysts)
	(Amounts rounded down to the nearest million yen)

1. Financial Results for the Fiscal Year Ended September 30, 2021 (October 1, 2020 to September 30, 2021)

(1) Operating Results							(Percentage figures represent year-on-year changes)
			Net sales				Operating profit			Ordinary profit		Profit for the period
FY Ended			¥ million		%		¥ million	%			¥ million	%			¥ million		%
Sept. 30, 2021		2,405		4.5		458	175.3			457	177.7			290		200.9
Sept. 30, 2020		2,301		47.8		166	(41.3)			164	(42.9)			96		(50.6)
		Basic earnings		Diluted earnings		Return on equity	Return on assets	Operating profit
			per share		per share										margin
FY Ended		¥				¥					%			%			%
Sept. 30, 2021		27.37				27.13					24.1		21.7			19.1
Sept. 30, 2020		8.99				8.79					7.5			7.7			7.2
Reference: Share of profit (loss) of entities accounted for using equity method
Year ended Sept. 30, 2021: -
Year ended Sept. 30, 2021: -
(2) Financial Position
			Total assets	Net assets		Equity ratio			Net assets per
						share
					¥ million			¥ million				%
As of Sep. 30, 2021				2,188		1,361				61.9					127.32
As of Sep. 30, 2020				2,034		1,061				51.8					100.32

Reference: Total shareholders' equity: Sep. 30, 2021: ¥1,355 million Sep. 30, 2020: ¥1,054 million

TEMONA. Inc. (3985) - Earnings Report for the Fiscal Year Ended September 30, 2021

(3) Cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
FY Ended	¥ million	¥ million	¥ million	¥ million
Sept. 30, 2021	471	(135)	(129)	1,447
Sept. 30, 2020	－	－	－	－

Note: The Company disclosed the financial results for the fiscal year ended September 30, 2020, on a consolidated basis, while the financial results for the fiscal year ended September 30, 2021, are presented on a non-consolidated basis. For this reason, cash flows for the fiscal year ended September 30, 2020 are not presented in this earnings report.

2. Dividends

		Annual dividends per share		Total cash	Payout	Ratio of
		End-
	End-first	End-third	Fiscal	Annual	dividends	dividends to
	second	ratio
	quarter	quarter	year-end	total	(Total)	net assets
	quarter
	¥	¥	¥	¥	¥	¥ million	%	%
FY Ended	－	0.00	－	0.00	0.00	－	－	－
Sep. 30, 2020
FY Ended	－	0.00	－	0.00	0.00	－	－	－
Sep. 30, 2021
FY Ending
Sep. 30, 2022	－	0.00	－	0.00	0.00		－
(Forecast)

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

(Percentage figures represent year-on-year changes)

	Net sales	Operating profit	Ordinary profit	Profit for the	Basic earnings
	period	per share
Six Months Ending	¥ million	%	¥ million	%	¥ million	%	¥ million	%	¥
1,075	(15.3)	108	(58.1)	108	(58.1)	68	(57.2)	6.43
Mar. 31, 2022
Full year	2,274	(5.4)	201	(55.9)	202	(55.9)	127	(56.2)	11.95

Notes

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

1. Number of shares issued (common stock)
2. 1. Number of shares issued at end of period (treasury shares included):

September 30, 2021: 11,389,592 shares

September 30, 2020: 11,256,048 shares

1. Number of shares held in treasury at end of period: September 30, 2021: 745,317 shares September 30, 2020: 745,292 shares
2. Average number of shares outstanding during the period: September 30, 2021: 10,603,460 shares

September 30, 2020: 10,727,996 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, 2020: 744,500 shares, September 30, 2021: 744,500 shares) are included in the number of treasury shares.

TEMONA. Inc. (3985) - Earnings Report for the Fiscal Year Ended September 30, 2021

• This earnings report is exempt from auditing by certified public accountants and the accounting auditor.

*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, please refer to "(4) Outlook for Fiscal Year Ending September 30, 2022" on page 5 in section "1. Operating Results and Financial Position" in the Accompanying Materials.

	Temona Inc. (3985) FY09/2021 Financial Results
Accompanying Materials
Contents
1. Operating Results and Financial Position	2
(1) Operating Results	2
(2) Financial Position	4
(3) Cash Flows	4
(4) Outlook for Fiscal Year Ending September 30, 2022	5
2. Basic Policy on the Selection of Accounting Standards	6
3. Financial Statements and Main Notes	7
(1)	Balance Sheet	7
(2)	Statement of Income	9
(3)	Statements of Changes in Equity	10
(4)	Statement of Cash Flows	12
(5)	Notes on the Financial Statements	13
	(Notes on the going-concern assumption)	13
	(Changes in accounting estimates)	13
	(Additional information)	13
	(Segment information)	13
	(Share of profit (loss) of entities accounted for using equity method, etc.)	13
	(Per share data)	14
	(Significant subsequent events)	14

1

Temona Inc. (3985) FY09/2021 Financial Results

1. Operating Results and Financial Position

(1) Operating Results

The Company disclosed the financial results for the fiscal year ended September 30, 2020, on a consolidated basis, while the financial results for the fiscal year ended September 30, 2021, are presented on a non-consolidated basis. To facilitate year-on-year comparisons, the financial results for the fiscal year ended September 30, 2020, are presented on a non-consolidated basis in this earnings report.

Non-consolidated financial results are as follows.

						(Unit: ¥ thousand)
	Fiscal year ended	Fiscal year ended
	September 30, 2020	September 30, 2021	Change	Change (%)
	Amount	Weighting	Amount	Weighting
	(%)	(%)
Net sales	2,301,573	100.0	2,405,091	100.0		(		(	4.5
	103,517
Cost of sales	934,153	40.6	925,810	38.5		8,342)			0.9)
Gross profit	1,367,420	59.4	1,479,280	61.5	(	111,860	(		8.2
SG&A expenses	1,200,931	52.2	1,020,977	42.5		179,954)		15.0)
Operating profit	166,488	7.2	458,303	19.1		291,814	175.3
Ordinary profit	164,867	7.2	457,906	19.0		293,039	177.7
Profit for the period	96,466	4.2	290,299	12.1		193,832	200.9

In the fiscal year ended September 30, 2021, the prolonged impact of COVID-19 weighed on Japan's economy. Although the lifting of the state of emergency and progress with vaccinations offers some hope for a 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 this business environment, the Company has been working in line with its management philosophy, "Make business and everyday life easier"*2, to popularize recurring revenue business models. The Company is doing this through focusing efforts on functional enhancement of Subsc-Store, an online shopping cart system for B2C businesses that specialize in subscription-based business. In addition, to provide even greater value to Subsc-Store and Tamago Repeat customers, the Company has expanded services and options relating to ancillary businesses, such as the Chatbot, Subsc-Atobarai, and Temonavi businesses.

To promote greater service lineup selection and concentration, the Company incorporated the "members-onlye-commerce" functions of Subsc-Beauty into Subsc-@ and shifted the sales structure targeting brick-and-mortar stores to Subsc-@. These initiatives are contributing to further monetization of these services while also expanding their target markets.

2