TeamSpirit : Consolidated Financial Results for the Fiscal Year Ended August 31, 2022 Q1 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

January 11, 2022

Consolidated Financial Results for FY2022 Q1

(Under Japanese GAAP)

Company name:	TeamSpirit Inc.
Listing:	Tokyo Stock Exchange
Securities code:	4397
URL:	https://corp.teamspirit.com/ja-jp/
Representative:	Koji Ogishima, CEO
Inquiries:	Yasufumi Yamashita, CFO
Telephone:	[phone]

Scheduled date to file quarterly securities report:	January 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of financial results briefing:	Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended November 30, 2021 (from September 1, 2021 to November 30, 2021)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
Three months ended	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen	%
November 30, 2021	772		15.0	3		-94.8		2	-96.2		-15	-142.9
November 30, 2020	671		21.4	71		60.8		74	70.9		36	151.3
Note: Comprehensive income For the three months ended November 30, 2021:	¥-14 million	[-139.5%]
	For the three months ended November 30, 2020:	¥37 million	[146.4%]
	Basic earnings	Diluted earnings
	per share		per share
Three months ended			Yen			Yen
November 30, 2021			-0.97			-
November 30, 2020			2.27			2.26
(2) Consolidated financial position
	Total assets		Net assets		Equity-to-asset ratio
As of	Millions of yen	Millions of yen			%
November 30, 2021			3,330			1,584			47.6
August 31, 2021			3,171			1,577			49.7
Reference: Equity
As of November 30, 2021:	¥1,584 million
As of August 31, 2021:		¥1,577 million

2. Cash dividends

			Annual dividends
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	0.00	-	0.00	0.00
August 31, 2021
Fiscal year ending	-
August 31, 2022
Fiscal year ending
August 31, 2022		0.00	-	0.00	0.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending August 31, 2022 (from September 1, 2021 to August 31, 2022)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Fiscal year ending	3,300		13.9	-200	-218.3	-200	-214.5	-140	-214.0	-8.63
to		to	to	to	to	to	to	to	to
August 31, 2022
3,350		15.6	-150	-188.7	-150	-185.9	-105	-185.5	-6.47

Note: 1. Revisions to the earnings forecasts most recently announced: None

2. Consolidated earnings forecasts for the fiscal year ending August 31, 2022 are stated in range format considering impacts of changes in business environment.

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of November 30, 2021	16,255,200 shares
As of August 31, 2021	16,227,600 shares

(ii) Number of treasury shares at the end of the period

As of November 30, 2021	315 shares
As of August 31, 2021	315 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended November 30, 2021	16,254,885 shares
Three months ended November 30, 2020	16,215,857 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Statement regarding appropriate use of forward-looking statements and other notes
  Forward-looking statements, including the consolidated earnings forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Thus, the Company does not intend to commit future accomplishment. Accordingly, actual business results may differ substantially from the Company's current assessment.

TeamSpirit Inc. (TSE 4397)

Consolidated Financial Results for FY2022 Q1

Attached Material

1. Quarterly consolidated financial statements and primary notes …………………………………………... 2

1. Quarterly consolidated balance sheet ………………………………………………………………….. 2
2. Quarterly consolidated statements of income and comprehensive income ……………………………. 3 Quarterly consolidated statement of income ……………………………………………………….. 3 Quarterly consolidated statement of comprehensive income ………………………………………. 4

(3) Notes to the quarterly consolidated financial statements ………………………………………………	5
(Notes regarding going concern assumption) …………………………………………………………	5
(Notes on significant changes in the amount of shareholders' equity) ………………………………..	5

(Changes in accounting policies) ……………………………………………………………………... 5

(Significant events after reporting period) ……………………………………………………………. 6

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TeamSpirit Inc. (TSE 4397)

Consolidated Financial Results for FY2022 Q1

1. Quarterly consolidated financial statements and primary notes

1. Quarterly consolidated balance sheet

			(Thousands of yen)
		As of August 31, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits		2,447,990	2,600,159
Accounts receivable - trade	22,804	-
Accounts receivable	- trade and contract	-	26,029
assets
Advance payments to suppliers	225,444	231,199
Other		57,720	53,409
Allowance for doubtful accounts	-17	-264
Total current assets		2,753,943	2,910,534
Non-current assets
Property, plant and equipment	59,051	57,308
Intangible assets		145	130
Investments and other assets	358,833	362,343
Total non-current assets	418,029	419,781
Total assets		3,171,972	3,330,315
Liabilities
Current liabilities
Accounts payable - trade	14,622	18,145
Income taxes payable		103,570	29,152
Deferred revenue		1,193,715	1,422,282
Provision for bonuses		9,180	-
Other		273,515	276,527
Total current liabilities	1,594,603	1,746,107
Total liabilities		1,594,603	1,746,107
Net assets
Shareholders' equity
Share capital		802,288	805,393
Capital surplus		792,288	795,393
Retained earnings		-17,365	-17,845
Treasury shares		-509	-509
Total shareholders' equity	1,576,701	1,582,431
Accumulated other comprehensive income
Foreign currency translation adjustment	667	1,776
Total accumulated	other comprehensive	667	1,776
income
Total net assets		1,577,369	1,584,207
Total liabilities and net assets	3,171,972	3,330,315

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