Raksul Inc.TSE: 4384

Financial Results for the Fiscal Year Ending July 31, 2021

· Issued by Raksul Inc.

Financial Results for the Fiscal Year Ending July 31, 2021 Part 1: Financial Highlights

RAKSUL INC. (TSE First Section: 4384)

September 10, 2021

  1. FY2021(FYE July 2021) Full Year Financial Highlights
  2. FY2022(FYE July 2022) Full Year Financial Forecast
  3. Q&A
  4. Reference Materials

Part 2 (Separate Document)

Business Development towards Realizing Our Vision and Our Accumulative Assets

  1. Business Development towards Realizing Our Vision
  2. Continuous Accumulation of Assets: Business
  3. Continuous Accumulation of Assets: Organization
  4. Continuous Accumulation of Assets: Finance
  5. Governance Policy that Supports Realization of Our Vision
  6. Reference Materials

2

FY2021(FYE July 2021) Full Year Financial Highlights

3

Full Year Financial Highlights

  • Despite the impact of the state of emergency declarations, both revenue and gross profit grew significantly
  • Operating profit also reached a record high, effectively balancing both growth and profitability
  • Raksul: Responded to changes by expanding new products and services
  • Novasell: Gaining recognition of programmatic TV commercials and securing large projects through alliance. Companywide growth driven by the Novasell business segment
  • Hacobell: Shifted into a re-growth phase while maintaining the gross margin level

(in JPY MM)

Revenue

30,261

Gross Profit

21,494

Operating Profit (non-GAAP)(1)

17,168

11,174

7,675

7,151

2,761

3,944

4,928

1,738

93

143

833

(1,145)

(159)

FY2017

FY2018

FY2019

FY2020

FY2021

(in JPY MM)

Raksul

Novasell

Hacobell

Companywide (2)

Revenue

20,311

6,719

2,939

30,261

YoY

+24.4%

+135.4%

+34.5%

+40.8%

Gross Profit

5,509

1,082

445

7,151

YoY

+31.1%

+123.0%

+134.5%

+45.1%

Gross Margin

27.1％

16.1%

15.2%

23.6%

YoY

+1.4pt

-0.9pt

+6.5pt

+0.7pt

Operating Profit/

Segment Profit (1)

2,212

29

-95

833

(non-GAAP)

Notes

(1) From FY2020, we disclose non-GAAP profits after adding back stock-based compensation expense (the same applies hereinafter)

Please see slides in reference for more details

4

(2) The difference between the total of each segment and companywide is due to "other business" and corporate expenses

Full Year and Quarterly

Financial Highlights

  • Quarterly revenue: +62.2% YoY,
    Quarterly gross profit: +40.2% YoY
  • As the gross margin significantly improved in FY2020 4Q, YoY growth decreased; for the full fiscal year, it improved by 0.7pt
  • Operating profit (non-GAAP) in 4Q was negative due to investment towards growth as disclosed in 3Q. Full year results exceeded the upper limit of the revised forecast
  • We have recorded deferred tax assets and incorporate deferred tax assets as adjustments to

©️RAKSUL INCincome. All RightstaxesRes rved.

FY2021 4Q (2021/5 - 2021/7)

FY2021 (2020/8 - 2021/7)

FY2020 4Q

FY2020

Annual

Forecast(1)

Actual

Actual

Actual

YoY

Actual

YoY

Actual vs

(in JPY MM)

Forecast

Revenue

7,939

4,896

+62.2%

30,261

21,494

+40.8%

+102.1%

Gross Profit

1,818

1,296

+40.2%

7,151

4,928

+45.1%

+100.7%

Gross Margin

22.9%

26.5%

-3.6pt

23.6%

22.9%

+0.7pt

-

Operating Profit

-35

237

-

833

-159

-

+115.7%

(non-GAAP)

Stock-based

compensation

263

46

+467.6%

612

84

+625.1%

+100.4%

expense

Ad spend

515

197

+161.2%

2,017

1,633

+23.5%

-

Ordinary Profit

-44

205

-

807

-280

-

+115.3%

(non-GAAP)

Net Profit

120

185

-34.7%

837

-406

-

+116.3%

(non-GAAP)

Notes

5

(1) Compared to the lower range of FY2021 revised annual forecast disclosed on June 10, 2021

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