Accounts payable

coconala: Consolidated financial results for the six months ended February 28, 2022

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.

April 14, 2022

Consolidated financial results

for the six months ended February 28, 2022

(According to Japanese GAAP)

Company Name:

coconala inc.

SEO:

Tokyo Stock Exchange

Value code:

4176

URL:

https://coconala.co.jp/

Representing:

Ayumu Suzuki, President and CEO

Requests:

Seiichiro Matsumoto, Chief Financial Officer

PHONE :

+81-3-6712-7771

Scheduled date for filing the quarterly securities report:

April 14, 2022

Expected date to start dividend payments:

Preparation of additional documents on quarterly financial results:

Yes

Holding of the quarterly financial results briefing:

Yes

(Amounts in yen are rounded down to the nearest million, unless otherwise indicated.)

1. Consolidated financial results for the six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-over-year changes.)

Operating revenue

Operating result

Ordinary profit

Profit attributable to owners of the parent company

Six months ended

February 28, 2022 February 28, 2021

Millions of yen

1,787

% – –

Millions of yen

(448)

% – –

Millions of yen

(447)

% – –

Millions of yen

(447)

% – –

(Note) Overall result

For the six months ended February 28, 2022:

(448) million yen [ – %]

For the six months ended February 28, 2021:

¥-million [ – %]

Basic earnings per share

Diluted earnings per share

Six months ended

February 28, 2022 February 28, 2021

Yen

(19.47)

Yen – –

(Notes) 1. As the Company has prepared consolidated financial statements for the second quarter of the year ended

August 31, 2022, figures for the six months ended February 28, 2021 and percentages indicating year-over-year changes have not been disclosed.

2. For the six months ended February 28, 2022, no figure for diluted earnings per share has been reported despite the existence of dilutive shares as the Company incurred a basic loss per share.

(2) Consolidated financial position

Total assets

Net assets

Equity to Assets Ratio

From

February 28, 2022 August 31, 2021

Millions of yen

3,677

Millions of yen

2,130

% 53.8

(Reference) Equity:

As of February 28, 2022

1,977 million yen

As of August 31, 2021

¥-million

(To note)

As the Company has prepared consolidated financial statements for the second quarter of the fiscal year ended August 31, 2022, figures as of August 31, 2021 have not been disclosed.

2. Cash dividends

Annual dividends per share

End of first trimester

End of the second trimester

End of third trimester

End of fiscal year

Total

Year ended August 31, 2021

Fiscal year ending August 31, 2022

Yen

Yen

0.00 0.00

Yen

Yen

0.00

Yen

0.00

Fiscal year ending August 31, 2022

(Provide)

0.00

0.00

(To note)

Revisions to most recently announced cash dividend guidance: none

3. Forecast of consolidated results for the year ended August 31, 2022 (September 1, 2021 to August 31, 2022)

(Percentages indicate year-over-year changes.)

Operating revenue

Operating result

Ordinary profit

Profit attributable to owners of the parent company

Basic earnings per share

Full year

Millions of yen

3,650

%

Millions of yen

(1,290)

%

Millions of yen

(1,290)

%

Millions of yen

(1,292)

%

Yen

(57.74)

(Notes) Since the Company has prepared consolidated financial statements for the second quarter of the year ended

As of August 31, 2022, percentages indicating year-over-year variations have not been disclosed.

* Remarks

  • (1) Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in a change in the scope of consolidation): Yes

    Newly included: 1 company (CSP No.1 Investment Limited Partnership) Excluded: –

  • (2) Adoption of the accounting treatment specific to the preparation of quarterly consolidated financial statements: None

  • (3) Changes in accounting methods, changes in accounting estimates and restatement

    • (i) Changes in accounting policies due to revisions in accounting standards and other regulations: Yes

    • (ii) Changes in accounting methods for other reasons: none

    • (iii) Change in accounting estimate: None

    • (iv) Restatement: None

  • (4) Number of shares issued (ordinary shares)

    (i) Total number of shares issued at the end of the period (including treasury shares)

    As of February 28, 2022

    23,382,700 shares

    As of August 31, 2021

    22,380,500 shares

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

    As of February 28, 2022

    As of August 31, 2021

    (iii) Average number of shares outstanding during the period (cumulative since the beginning of the year)

For the six months ended February 28, 2022

22,969,229 shares

For the six months ended February 28, 2021

20,474,000 shares

* Quarterly reports on financial results are exempt from quarterly review by certified public accountants or an audit firm.

* Appropriate use of forecasts and other special issues

The forecasts and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Therefore, the statements contained herein do not constitute assurances regarding the actual results of the Company. Actual performance may differ materially from these predictions due to various future factors.

Files attached

Hint

1. Qualitative information on the quarterly financial results ……………………………………….. .. ………………………………. 2

(1) Explanation concerning the operating results ……………………………….. …………………………………………………. ………. 2

(2) Explanation regarding the financial situation ……………………………….. …. ………………………………………. 2

(3) Explanation regarding the consolidated results forecasts and other forward-looking statements …………… 3

2.

Quarterly Consolidated Financial Statements and Important Notes Thereto ……………………………………….. ….. ….. 4

  • (1) Quarterly consolidated balance sheet ………………………… ……….. …………………………………….. ……….. …. 4

  • (2) Quarterly consolidated income statement and quarterly consolidated statement of comprehensive income

    Income ………………………………………… …………………………………………. ………………………………………….. 5

    Quarterly consolidated income statement ……………………………. …………………………………… 5

    Quarterly Consolidated Statement of Comprehensive Income ……………………………. …………………. 6

(3) Consolidated quarterly cash flow statement …………………………………….. …………………………………………………. 7

(4) Notes to the quarterly consolidated financial statements ……………………………. ………………………………………. 8

(Notes on uncertainties about the entity’s ability to continue as a going concern) ……………………………. ……. …… 8

(Notes when there are significant changes in equity amounts) ……………………………. ….. ……………. 8

(Further information) ………………………………………. ………………………………………….. ………………….. 8

(Segment information, etc.) …………………………………….. ………… ……………………………………. ………… ………………. 9

(Significant events after the reporting period) ………………………………….. ……………………………………….. 9

1. Qualitative information on quarterly financial results

(1) Explanation regarding operating results

In the six months ending February 28, 2022, the Japanese economy has been beset by a lingering prospect of uncertainty with still no end in sight in terms of the protracted nature of the novel coronavirus disease (COVID-19) pandemic. despite the number of people vaccinated in Japan has increased.

Under such circumstances, the Company has focused on product feature development, and in order to intensively facilitate its efforts to capture a user base through mass media and other similar channels, has updated the TV commercials broadcast since August 2021 in January 2022, and broadcast these TV commercials throughout Japan.

During the six months ended February 28, 2022, the Company therefore achieved the following financial results: GMV of 5,964,026 thousand yen, operating revenue of 1,787,992 thousand yen, operating loss of 448,122 thousand of yen, ordinary loss of 447,403 thousand yen and loss attributable to parent owners of 447,148,000 yen.

Operating results by segment are as follows.

(i) coconala

In “coconala”, the company continued to increase the number of registered buyers through proactive marketing investments by updating television commercials broadcast since August 2021 in January 2022. In particular, the growth in production and commercial category drove overall GMV growth.

As a result, operating income amounted to 1,615,737 thousand yen, while the segment loss amounted to 432,770 thousand yen.

(ii) coconala legal consultation

In “coconala Legal Consultation”, the number of lawyers registered with the paid service increased because the accuracy and volume of matching users and lawyers was stable, and in this context, the fixed user fees, which are lawyers’ advertising revenue also grew.

As a result, operating income amounted to 172,255 thousand yen, while the segment loss amounted to 12,671 thousand yen.

(2) Explanation regarding the financial situation

(i) Assets, liabilities and net assets

Assets

Total assets as of February 28, 2022 were 3,677,737 thousand yen.

They consist mainly of cash and deposits for 2,815,063 thousand yen.

Passives

Total liabilities as of February 28, 2022 were 1,547,128 thousand yen.

They consist mainly of deposits received for 802,174 thousand yen, advances received for 488,195 thousand yen and accounts payable for 215,567 thousand yen.

Net assets

Total net assets as of February 28, 2022 were 2,130,609 thousand yen.