RareJob : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 14, 2022

Company name: RareJob, Inc.

Stock exchange listing: Tokyo

Code number: 6096

URL: https://www.rarejob.co.jp

Representative: Gaku Nakamura, CEO

Contact: Naoki Morita, Executive Officer & CFO

Phone: [phone]

Scheduled date of filing quarterly securities report: February 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit	Ordinary profit		Profit attributable to
					owners of parent
Nine months ended	Million yen		%		Million yen	%	Million yen	%		Million yen		%
December 31, 2021		4,132		2.8		290	(52.2)	257	(55.2)			186		(48.4)
December 31, 2020		4,019		21.8		607	68.0	574	70.1			361		92.6
(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		159 million	[	(56.8) %]
		Nine months ended December 31, 2020:	¥		369 million	[	94.4%]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended				Yen			Yen
December 31, 2021				20.19			19.65
December 31, 2020				39.97			38.16
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of			Million yen			Million yen			%
December 31, 2021				6,469			2,437			33.6
March 31, 2021				4,468			2,116			41.2
(Reference) Equity: As of	December 31, 2021:	¥	2,175 million
As of	March 31, 2021:			¥	1,839 million

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2. Dividends

				Annual dividends
	1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		0.00	-		10.00	10.00
Fiscal year ending March 31, 2022	-		0.00	-
Fiscal year ending March 31, 2022						11.00	11.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen		%	Million yen		%	Million yen	%	Yen
Full year			5,650		6.0	250		(62.6)	200		(68.2)	120	(69.3)	13.00
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	Yes
New	1	(Company name: shikaku square, Inc.							)
Exclusion:	-
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	9,658,000	shares
March 31, 2021:	9,541,600	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	354,024	shares
March 31, 2021:	460,801	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	9,234,039	shares
Nine months ended December 31, 2020:	9,036,845	shares

• This financial report is not subject to the statutory quarterly review by a certified public accountant or audit firm.
• Explanation about the proper use of earnings forecasts, other special notes
  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.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Thousand yen)
			As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	2,860,209	3,110,459
		Deposits paid	6,161	1,523
		Accounts receivable - trade	225,737	127,732
		Prepaid expenses	61,491	100,021
		Derivatives	38,594	6,560
		Other	21,957	119,869
		Total current assets	3,214,152	3,466,166
	Non-current assets
		Property, plant and equipment
		Buildings	144,324	114,439
		Accumulated depreciation	(56,801)	(42,051)
		Buildings, net	87,522	72,387
		Tools, furniture and fixtures	172,719	200,261
		Accumulated depreciation	(118,624)	(138,758)
		Tools, furniture and fixtures, net	54,094	61,503
		Vehicles	2,374	2,418
		Accumulated depreciation	(1,820)	(2,216)
		Vehicles, net	554	201
		Right-of use assets	391,404	283,012
		Accumulated depreciation	(45,773)	(74,269)
		Accumulated impairment loss	(25,896)	(27,287)
		Right-of-use assets,net	319,734	181,455
		Total property, plant and equipment	461,905	315,548
		Intangible assets
		Trademark right	2,116	1,892
		Software	312,336	507,010
		Software in progress	200,936	25,225
		Goodwill	70,715	913,234
		Other	330	522
		Total intangible assets	586,435	1,447,885
		Investments and other assets
		Investment securities	32,940	1,015,008
		Leasehold deposits	104,561	126,464
		Deferred tax assets	57,261	69,560
		Other	11,322	28,490
		Total investments and other assets	206,086	1,239,523
		Total non-current assets	1,254,427	3,002,957
	Total assets	4,468,579	6,469,124

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				(Thousand yen)
			As of March 31,2021	As of December 31,2021
Liabilities
	Current liabilities
		Current portion of long-term borrowings	30,000	214,400
		Lease obligations	46,812	41,336
		Accounts payable - other	179,172	199,688
		Accrued expenses	237,007	289,609
		Income taxes payable	163,653	13,742
		Accrued consumption taxes	154,312	62,846
		Advances received	132,568	835,174
		Deposits received	25,511	40,312
		Provision for bonuses	45,663	46,795
		Other	22,754	50,204
		Total current liabilities	1,037,458	1,794,109
	Non-current liabilities
		Long-term borrowings	960,000	1,986,900
		Retirement benefit liability	51,996	58,681
		Lease obligations	298,039	185,273
		Asset retirement obligations	2,984	5,727
		Provision for bonuses	242	606
		Other	974	764
		Total non-current liabilities	1,314,238	2,237,952
	Total liabilities	2,351,696	4,032,062
Net assets
	Shareholders' equity
		Share capital	582,082	606,699
		Capital surplus	618,074	787,446
		Retained earnings	916,302	1,011,927
		Treasury shares	(289,968)	(222,263)
		Total shareholders' equity	1,826,490	2,183,810
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	(1,146)	(521)
		securities
		Deferred gains or losses on hedges	26,776	4,551
		Foreign currency translation adjustment	5,883	3,554
		Remeasurements of defined benefit plans	(18,727)	(16,335)
		Total accumulated other comprehensive income	12,786	(8,750)
	Share acquisition rights	92,741	82,520
	Non-controlling interests	184,864	179,481
	Total net assets	2,116,882	2,437,062
Total liabilities and net assets	4,468,579	6,469,124

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended December 31,2020	ended December 31,2021
Net sales	4,019,937	4,132,540
Cost of sales	1,620,273	1,698,075
Gross profit	2,399,664	2,434,464
Selling, general and administrative expenses	1,791,892	2,144,237
Operating profit	607,771	290,227
Non-operating income
	Interest income	115	110
	Share of profit of entities accounted for using equity	-	8,640
	method
	Subsidy income	14,252	-
	Other	2,646	2,676
	Total non-operating income	17,014	11,427
Non-operating expenses
	Interest expenses	6,449	11,616
	Foreign exchange losses	10,818	11,475
	Share of loss of entities accounted for using equity	609	-
	method
	Depreciation	-	13,450
	Market change expenses	31,380	-
	Other	607	7,496
	Total non-operating expenses	49,864	44,038
Ordinary profit	574,921	257,615
Extraordinary income
	Gain on sale of non-current assets	111	1,515
	Gain on reversal of share acquisition rights	-	6,993
	Total extraordinary income	111	8,509
Extraordinary losses
	Loss on sale of non-current assets	32	-
	Loss on retirement of non-current assets	897	75
	Loss on withdrawal from business	4,014	2,083
	Office relocation expenses	-	19,559
	Total extraordinary losses	4,944	21,719
Profit before income taxes	570,088	244,405
Income taxes - current	207,121	66,887
Income taxes for prior periods	551	-
Income taxes - deferred	(5,235)	(3,530)
Total income taxes	202,437	63,357
Profit	367,650	181,047
Profit (loss) attributable to non-controlling interests	6,423	(5,385)
Profit attributable to owners of parent	361,227	186,433

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