RACCOON : Summary of Financial Results (Consolidated)For the Fiscal Year Ended April 30, 2021(Japanese GAAP)

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Summary of Financial Results (Consolidated)

For the Fiscal Year Ended April 30, 2021

(Japanese GAAP)

																														June 10, 2021
Listed company: Raccoon Holdings, Inc.											Stock Exchange: Tokyo Stock Exchange
Code:	3031															URL: http://www.raccoon.ne.jp/
Representative:	Isao Ogata, President and Representative Director
Contact:	Satoshi Konno, Executive Vice President of Finance and Director			Tel. [phone]
Scheduled date of ordinary general meeting of shareholders: July 24, 2021
Scheduled date of commencement of dividend payment: July 26, 2021
Scheduled date of submission of annual securities report: July 29, 2021
Supplementary documents for financial results: Yes
Financial results briefing: Yes (for institutional investors and securities analysts)	(Rounded down to the nearest million yen)
1. Consolidated results for the fiscal year ended April 30, 2021 (May 1, 2020, through April 30, 2021)
(1) Consolidated operating results													(The percentages are year-on-year changes)
																														Net income
				Net sales					EBITDA	Operating income		Ordinary income		attributable to owners
																														of parent
				Million yen		%		Million yen		%		Million yen	%			Million yen			%			Million yen		%
Year ended April 30, 2021		4,364		25.5		1,339		57.8			1,196		69.4				1,216		71.8		800		77.6
Year ended April 30, 2020		3,477		16.7		848		30.3			706		28.7				708		29.8		451		18.9
(Note) Comprehensive income		Year ended April 30, 2021		¥800 million (77.6%)
				Year ended April 30, 2020		¥451 million (18.9%)
				Net income per		Net income per share		Return on equity				Ordinary income			Operating income
				share					(diluted)			to total assets ratio			to net sales ratio
						Yen							Yen					%								%						%
Year ended April 30, 2021		36.78						36.19					17.2								9.3						27.4
Year ended April 30, 2020		23.73						22.85					13.5								6.3						20.3
(Reference) Equity in earnings	of affiliates		Year ended April 30, 2021	¥- million
							Year ended April 30, 2020	¥- million
(2) Consolidated financial position
				Total assets						Net assets			Equity ratio					Net assets per share
						Million yen						Million yen								%									Yen
As of April 30, 2021					12,452							5,342								42.6								239.23
As of April 30, 2020					13,600							3,999								29.3								197.68
(Reference) Shareholders' equity		As of April 30, 2021		¥5,310 million
							As of April 30, 2020		¥3,988 million
(3) Consolidated cash flows
				Operating activities		Investing activities		Financing activities		Cash and cash equivalents
										at end of year
						Million yen						Million yen							Million yen								Million yen
As of April 30, 2021						184							(43)						(1,972)								4,802
As of April 30, 2020					1,768							(427)						2,969								6,634
2. Dividends
									Dividend per share								Total amount		Payout ratio	Dividend on
				End of Q1	End of Q2		End of Q3	Year end	Annual													equity ratio
							of dividends		(consolidated) (consolidated)
				Yen			Yen				Yen		Yen	Yen			Million yen			%			%
Fiscal year ended April 30, 2020	-			0.00			-		6.50		6.50			131			27.4			3.8
Fiscal year ended April 30, 2021	-			8.00			-		9.00		17.00			380			46.2			7.8
Fiscal year ending April 30, 2022	-			10.00			-		10.00		20.00									-
(forecast)

(Notes) 1. The year-end dividend per share for the fiscal year ended April 30, 2021 has been changed from ¥8 to ¥9. For details, please refer to "Notice Concerning Dividends of Surplus (Increased Dividend) and Dividend Forecast for the Fiscal Year Ending April 30, 2022" announced today (June 10, 2021).

2. As for the dividend forecast for the fiscal year ending April 30, 2022, the Company targets a consolidated payout ratio of 45% to 50%. Because the Company has prepared its forecast of results for the fiscal year ending April 30, 2022 with ranges, the dividend forecast is calculated based on the median of the net income attributable to owners of parent in the forecast of results.

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3. Forecast of consolidated results for the fiscal year ending April 30, 2022 (May 1, 2021, through April 30, 2022)

(The percentages are year-on-year changes)

										Net income	Net income
	Net sales		EBITDA	Operating income	Ordinary income	attributable to
		per share
										owners of parent
First half	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
-		-	-	-	-	-	-	-	-	-	-
Full year				1,580	18.0	1,430	19.5	1,430	17.5	940	17.4	42.35
5,300		21.4	~	~	~	~	~	~	~	~	~
				1,680	25.4	1,530	27.9	1,530	25.7	1,000	24.8	45.05

* Notes

1. Important changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in the scope of consolidation): None
2. Changes in accounting principles and changes or restatements of accounting estimates
3. 1. Changes in accounting policies associated with revisions to accounting standards, etc.: None
   2. Changes in accounting policies other than those specified in (i): None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Number of issued shares (including treasury stock) at the end of the fiscal year

April 30, 2021	22,361,043	April 30, 2020	20,176,043
(ii) Number of treasury stock shares at the end of the fiscal year
April 30, 2021	163,668	April 30, 2020	－
(iii) Average number of issued shares during the fiscal year
Year ended April 30, 2021	21,778,030	Year ended April 30, 2020	19,007,161

*This financial summary is not subject to audit procedures by a certified public accountant or audit corporation.

• Explanation about the proper use of results forecasts, and other special notes (Cautionary note on forward-looking statements)
  The forward-looking statements, including results forecasts, contained in this document are based on information the Company has obtained as of today and certain assumptions the Company considers reasonable. The Company does not guarantee its achievement of the forward-looking statements. Actual results may differ significantly depending on a variety of factors. For the assumptions underlying the results forecasts and notes on their use, please refer to 1. Overview of Operating Results, etc., (4) Future prospects on page 6.

(How to obtain supplementary information for financial results and information on results briefings)

Supplementary documents for the financial results will be disclosed on the TDnet (Timely Disclosure network operated by the Tokyo Stock Exchange) shortly. Additionally, the Company will hold a results briefing session for institutional investors and securities analysts via a live stream on Thursday, June 10, 2021. The video of this results briefing session will be provided on the website promptly after the session is held.

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• Contents of Accompanying Materials

1. Overview of Operating Results, etc............................................................................................................................................................	4
(1)	Overview of operating results for the fiscal year under review...........................................................................................................	4
(2)	Overview of the financial status for the fiscal year under review .......................................................................................................	5
(3)	Overview of cash flows for the fiscal year under review.....................................................................................................................	5
(4)	Future prospects.....................................................................................................................................................................................	6
2. Basic Policy on Selection of Accounting Standards ..................................................................................................................................	6
3. Consolidated Financial Statements and Major Notes ................................................................................................................................	7
(1)	Consolidated balance sheets..................................................................................................................................................................	7
(2)	Consolidated statements of income and comprehensive income.........................................................................................................	9
(3)	Consolidated statements of changes in equity....................................................................................................................................	11
(4)	Consolidated statements of cash flows...............................................................................................................................................	12
(5)	Notes on consolidated financial statements........................................................................................................................................	13
(Notes regarding going concern assumptions).....................................................................................................................................	13
(Notes in the case of significant changes in amount of shareholders' equity)....................................................................................	13
(Additional information).......................................................................................................................................................................	13
(Segment information) ..........................................................................................................................................................................	14
(Per share information) .........................................................................................................................................................................	17
(Significant subsequent events) ............................................................................................................................................................	17

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1. Overview of Operating Results, etc.

(1) Overview of operating results for the fiscal year under review

During the fiscal year under review (May 1, 2020, through April 30, 2021), the Japanese economy continued to suffer from stagnating economic activities with extended restrictions on corporate activities and individual consumption due to the prolonged impact of the novel coronavirus (COVID-19). Despite a glimpse of hopeful signs including vaccinations beginning to spread worldwide, there is still no end in sight due to factors such as a resurgence from variants and the outlook remains uncertain.

Under such circumstances, the Raccoon Group worked to expand the infrastructure services it offers for business-to-business transactions based on the management philosophy of "making corporate activities more efficient and convenient." Demand for the Company's services, which utilize IT and can prepare for non-face-to-face business activities and continuation of business activities, has remained strong, and the number of new users continued to increase in both the EC and Financial businesses. Meanwhile, amid the prolonged COVID-19 pandemic, there has been a steady increase in the number of customers who truly understand the convenience of the Raccoon Group's services, and extended use of the services is expected to contribute to improving the operating rate over the medium to long term. As a result, consolidated net sales amounted to 4,364,721,000 yen (up 25.5% year on year) in the fiscal year under review.

In terms of expenditures, the amount of guarantees the Financial business provided was on a declining trend throughout the year and the ratio of cost of sales for the Financial business was also at a low level. Due to these factors, the cost of sales decreased by 11.4% year on year. Although advertising expenses increased by 84.6% year on year due to a gradual increase in costs for promotion, other expenses were at a low level. Consequently, selling, general and administrative expenses increased by 23.6% year on year.

As a result, EBITDA stood at 1,339,509,000 yen (up 57.8%), operating income at 1,196,169,000 yen (up 69.4%), ordinary income at 1,216,965,000 yen (up 71.8%), and net income attributable to owners of parent at 800,968,000 yen (up 77.6%), all on a year-on-year basis.

Results by segment are as follows:

(i) EC business

In Super Delivery, the mainstay service in the EC business, efforts have been made to increase both new membership and transaction value through improvement in average sale per customer. The Super Delivery service is available for a wide variety of businesses either in or outside Japan, including overseas businesses, on top of domestic retailers and non-retail businesses.

Targeting new participating companies that have joined during or after November 2020, the Company changed the fee structure for participating companies and began offering a new fee plan which waives the basic fee for posting product information in favor of system usage fees. The Company made it easier for companies to list products on Super Delivery by eliminating the basic fee for posting product information. Combined with the online advertisement placements that began in December 2020, these efforts created a synergistic effect and the number of client companies continued to increase significantly through the end of placements in February. Although the increase has somewhat slowed down with the end of placements, the number of new client companies remained at a level exceeding that before the online advertisement placements began. Consequently, at the end of the fiscal year under review, the number of Super Delivery member retailers stood at 220,111 (up 53,044), the number of participating companies counted 2,633 (up 780), and the number of items displayed was 1,457,909 (up 310,618), all compared with the end of the previous fiscal year.

In the fourth quarter under review, demand for masks and sterilization goods, which are considered to be products of special demand in relation to COVID-19, remained stable, while the transaction value of ordinary products in apparel and miscellaneous goods steadily increased, and the overall transaction value of Super Delivery increased by 4.6% on a quarter-on-quarter basis (increased by 33.4% compared with the fourth quarter of the previous fiscal year). The value of transactions for the fourth quarter under review exceeded that for the first quarter, during which the transaction value rapidly increased thanks to the products of special demand in relation to COVID-19. Consequently, the transaction value for the fiscal year under review totaled 19,853,948,000 yen (up 55.0% year on year). Transaction value has grown in all categories, including the value of transactions with domestic retailers, the value of transactions with non-retail businesses in Japan, and the value of transactions overseas, and the value of transactions in Japan increased by 51.9% and the value of transactions overseas increased by 68.2%, both on a year- on-year basis.

As a result, sales in the EC business stood at 2,720,228,000 yen (up 38.6% year on year). In terms of expenditures, the Company has conducted aggressive promotional activities while gradually increasing advertising expenses, resulting in an increase of 98.0% year on year for the entire fiscal year. Consequently, segment profit was 1,149,432,000 yen (up 33.8% year on year).

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(ii) Financial business

In the Paid service, the number of member companies steadily increased to surpass 4,100. The Company has continued its endeavors to improve the operating rate of the acquired member companies and increase sales per company. During the fourth quarter under review, a state of emergency was declared for the second and third time. Although the value of transactions decreased for member companies in some industries that were negatively affected by the state of emergency being declared, the value of transactions increased as a result of the increases in the number of operations and sales per company. Accordingly, the value of transactions outside the Group totaled 21,445,096,000 yen (up 12.3%) and the overall value of transactions (including 9,198,901,000 yen of transactions within the Group) stood at 30,643,997,000 yen (up 17.8%), both on a year-on-year basis.

In Guarantee services, the Company has continued to actively work on business collaborations with local financial institutions for the T&G Credit Guarantee service and the URIHO service, and the number of collaborations steadily increased. Inquiries from small- to medium-sized companies, the targets for these services, have kept the pace of increase, and demand for credit guarantee services remains high against the backdrop of the COVID-19 pandemic. For the URIHO service, the Company began airing TV commercials from March 2021 in selected regions with the aim of informing more small- to medium-sized companies about the service and enhancing awareness.

Regarding rent guarantee services, the Company continued its efforts to increase name recognition of its services for both business and residential properties among real estate companies, while beginning collaborations on applications for rent guarantees that utilize tenant/residential rental application services.

Guarantees outstanding at the end of the fiscal year under review amounted to 84,347,244,000 yen (23,076,794,000 yen for RACCOON FINANCIAL, Inc. and 61,270,449,000 yen for RACCOON RENT, Inc.), up 11.5% from the end of the previous fiscal year. As a result, sales in the Financial business stood at 1,883,909,000 yen (up 11.1% year on year). In terms of expenditures, the ratio of cost of sales continued to decline significantly due to a decrease in the amount of guarantees provided. Furthermore, in the Financial business as well, the Company has conducted aggressive promotional activities while gradually increasing advertising expenses, resulting in an increase of 43.9% year on year for the entire fiscal year. Consequently, segment profit totaled 522,515,000 yen (up 178.6% year on year).

(2) Overview of the financial status for the fiscal year under review

Total assets at the end of the fiscal year under review amounted to 12,452,184,000 yen, down 1,147,893,000 yen from the end of the previous fiscal year. Current assets decreased 1,050,671,000 yen to 9,872,741,000 yen. The main factor for the decrease is the decrease of 1,823,871,000 yen in cash and deposits due to repayment of short-term borrowings despite the increase of 674,039,000 yen in accounts receivable - trade due to increased transactions. Non-current assets decreased 97,221,000 yen to 2,579,442,000 yen. The main factors for the decrease are the decrease of 44,848,000 yen in deferred tax assets, the recording of 38,451,000 yen in amortization of goodwill and the decrease of 26,057,000 yen in buildings primarily due to depreciation.

Liabilities at the end of the fiscal year under review totaled 7,109,908,000 yen, down 2,490,456,000 yen from the end of the previous fiscal year. Current liabilities decreased 2,287,018,000 yen to 5,859,162,000 yen. The main factor for the decrease is the decrease of 2,640,000,000 yen in short-term borrowings due to repayment despite the increase of 596,539,000 yen in accounts payable - other primarily due to purchase of treasury shares associated with the introduction of an employee stock ownership plan (J-ESOP).Non-current liabilities decreased 203,438,000 yen to 1,250,746,000 yen. The main factor for the decrease is the decrease of 220,006,000 yen in long-term borrowings due to repayment.

Net assets at the end of the fiscal year under review increased 1,342,563,000 yen from the end of the previous fiscal year to 5,342,275,000 yen. The main factors for the increase are the increase of 499,076,000 yen in treasury shares due to the introduction of an employee stock ownership plan (J-ESOP) and purchase of shares of less than one trading unit, the increase of a total of 1,330,082,000 yen in capital stock and capital surplus due to the exercising of subscription rights to shares and the increase in retained earnings due to the recording of 800,968,000 yen as net income attributable to owners of parent, while retained earnings decreased 310,032,000 yen due to cash dividends paid.

(3) Overview of cash flows for the fiscal year under review

Cash and cash equivalents (the "funds") at the end of the fiscal year under review decreased 1,831,201,000 yen from the end of the previous fiscal year to 4,802,869,000 yen. Cash flows from each activity for the fiscal year under review and their primary factors are as follows:

(Cash flows from operating activities)

Net cash provided by operating activities during the fiscal year under review amounted to 184,766,000 yen (the funds decreased 1,583,291,000 yen year on year). The main factors for this are the recording of 1,206,109,000 yen as income before income taxes, an increase of 674,039,000 yen in notes and accounts receivable - trade and a decrease of 187,368,000 yen in notes and accounts

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