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Investor Presentaiton

Business Highlights in FY11/21 Q2 Net sales for Q2 increased markedly, growing 53% YoY*1. Growth in recurring revenue from sole proprietors and corporates accelerated QoQ. The number of paying customers grew steadily for both corporates and sole proprietors, reaching a total of 166,000*2. In Q2, the net increase was 1.9x YoY for corporates, and 3.1x YoY for sole proprietors.*3 19 The average churn rate for the past 12 months has remained at 1.4%*4. Q2 average was 2.5%*5 due to seasonal factor (tax return season), which is in line with the past trend (2.2% in FY11/20 Q2). The churn rate of corporate customers has maintained low levels. Expanded product lineup for medium-sized companies through releasing receivable billing, fixed assets, and contract modules. Continued to steadily acquire medium-sized companies. *1 Excluding the impact of consolidating R&AC Co., Ltd., Q2 net sales increased by 43% YoY. *2 See page 21 for the definition of paying customers. *3 *4 Net increase in number of customers was 2,516 for corporates and 2,436 for sole proprietors in FY20/11 Q2 (from March to May of 2020), and 4,869 for corporates and 7,467 for sole proprietors in FY21/11 Q2 (from March to May of 2021). The 12-month average up to May 2021. *5 The 3-month average up to May 2021.
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