Mid-term Plan Slogan

Digital Garage, Inc.

Designing our New Normal Context

1Q of FYE March 31, 2021 Financial Report2020.8.14

Financial Results Highlights
Profit before tax decreased by 82% YoY due to the impact of the COVID-19 and growth-oriented expenditure for FT/LTI(Results of IPO recorded in 2Q)～ Impact of COVID-19 on restaurant industry (LTI), real estate sales advertising (MT), and travel-related businesses (FT), and loss on
startup of strategic businesses ～FY20.3 1Q

Consolidated
Profit before tax

2.2 B JPY
KPI

FT■ Transaction volume 689.8 B JPY (YoY up by 19%)
■ of which, face-to-face settlement
29.2 B JPY (YoY down by 44%)

MT

■ Advertisement volume 7.3 B JPY (YoY down by 11%)■ Other volume
1.8 B JPY (YoY up by 75%)

IT

■ Investment/ Sold
0.4 B JPY / 0.6 B JPY■ Fair valuation 36.3 B JPY (from E of Mar.2020 down by 1%)

LTI(Next-generation user database business, etc.)■Investment profit on equity method of Kakaku.com
0.3 B JPY (YoY down by 67%)■Monthly traffic for all sites of Kakaku.com
236.6million

FY21.3 1Q（YoY）

0.4 B JPY - 82 ％• COVID-19 related crisis in all segments• Full-fledged launch of growth investment
under the new mid-term business plan
• Return to profitability after improvingfrom the loss in the previous 4Q

By Segments

1.0 B JPY - 4 ％0.2 B JPY - 46 ％0.1 B JPY - 51 ％0.1 B JPY - 92 ％• Transaction volume continues to grow atdouble-digit rates• Sharp decrease in travel-related businessdue to the COVID-19• Increased expenses due to investments
for mid-term growth• Strong revenue of digital ads, mainlyin the financial field• Revenue in the real estate advertisingbusiness fell 45% YoY• Fair value of existing investments
increased steadily• The impact of COVID-19 (10% impairmentrisk) estimated at the beginning of the
fiscal year is expected to be limited• Revenue of Tabelog decreased 73% YoY
due to the free of charge fee forrestaurants• Crypto Garage has launched and began
investing
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

2

Financial Results Highlights
Profit before tax improved by 800M JPY in QoQ despite the impact of the new coronavirus～ Optimize responses to changes in the business environment with COVID-19 by segments ～Profit before tax

51(JPY in 100 Millions)

34

Outlook
FT

40

MT

32

28

31

IT

22

• Travel-related business and face-to-facepayments for inbound tourists recovered alongwith the convergence of the COVID-19• Solid performance in the digital ad/solution
field• Real estate sales enters the full-scale DX phase• Sold a portion of our holdings in connection
with the IPO of our investee, and valuation
gains will be recorded in 2Q

LTI • Toward recovery with normalization ofrestaurant operations

Actions

4

1Q

2Q

3Q

FY19.3

4Q

1Q

2Q

3Q

FY20.3

▲4
4Q

FT
MT

1Q

FY21.3IT• Promote strategic business with alliancepartners• Provides integrated management services forreal estate developers, including thedigitization of contracts• Launch of Media Consortium Business• Investment strategies associated with changes
in the pandemic and power balance
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

3

FY21.3 1Q Consolidated P/L Summary (IFRS)Profit before tax improved by 800 M JPY from a loss in Q4 FY20.3～ Revenue and profit decreased YoY due to the impact of the COVID-19 ～FY2020.3

FY2021.3

YonY

QonQ

1Q

2Q

3Q

4Q

1Q

%

Amount%Amount8,217

11,379

9,078

8,262

6,944

-15.5%-1,274-16.0%-1,318

6,138

6,718

6,576

7,256

6,148

+0.2%

+11

-15.3%-1,108

459

3,332

968

-739

302

-34.2%-157-+1,041Other income

817

422

301

877

193

-76.4%-624-78.0%-684

Finance income

1

16

28

48

1

-4.1%

-0

-97.6%

-47

803

891

1,205

821

300

-62.7%-504-63.5%

-521

5,999

6,271

6,016

8,643

6,539

+9.0%

+540

-24.3%-2,104

2,740

2,976

2,853

3,467

2,764

+0.9%

+24

-20.3%

-703

2,951

3,138

3,121

4,813

3,453

+17.0%+502-28.2%-1,359Other expenses

78

86

74

254

69

-11.8%-9-72.8%-185

Finance costs

230

71

-32

109

252

+9.7%

+22

+131.8%+143

Profit before tax

2,218

5,108

3,062

-381

405

-81.7%-1,813-+786

Profit attributable to owners of parent

1,624

3,647

2,253

-105

224

-86.2%-1,401-+328

JPY in Millions
Revenue
Revenue in recurring business
Revenue in operational investment
securities

Share of profit of investments accounted
for using equity method
Expenses
Cost of sales
Selling, general and administrative
expenses

NOTE: The above Revenue, Expenses, and Profit before tax refers to the continuing operations excluding discontinued operations
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

4

FY21.3 1Q Consolidated Segment P/L Summary (IFRS)Continued double-digit growth in revenue of FT and maintained flat revenue of MT～ Profit decreased due to the impact of the COVID-19, growth investment in FT,and startup investment in LTI Strategic Business ～FY2020.3

FY2021.3

YonY

QonQ

1Q

2Q

3Q

4Q

1Q

%

Amount%Amount8,217

11,379

9,078

8,262

6,944

-15.5%-1,274-16.0%-1,318FT Financial Technology

2,083

2,204

2,184

2,138

2,340

+12.3%

+257

+9.5%

+202

MT Marketing Technology

3,376

3,984

3,705

4,311

3,335

-1.2%

-41

-22.6%-976

IT Incubation Technology

507

3,462

1,405

-506

389

-23.3%

-118

-

+895

LTI Long Term Incubation

2,232

1,696

1,744

2,257

801

-64.1%-1,431-64.5%-1,456

19

33

39

63

79

+310.0%+60+25.6%

+16

2,218

5,108

3,062

-381

405

-81.7%-1,813-+786

FT Financial Technology

1,061

1,112

1,129

746

1,018

-4.0%

-43

+36.5%+272

MT Marketing Technology

327

676

512

336

178

-45.6%-149-47.0%-158

IT Incubation Technology

146

3,138

1,114

-835

72

-51.1%

-75

-

+907

LTI Long Term Incubation

1,493

932

890

1,385

120

-92.0%-1,374-91.4%-1,265

Others/Adjustments and Eliminations

-810

-751

-584

-2,013

-983

-

-173

-

+1,030JPY in Millions
Revenue

Others/Adjustments and Eliminations

Profit before tax

NOTE: Segment revenue and profit before tax are before elimination of intersegment transaction and corporate revenue and expenses.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

5

FY21.3 1Q Consolidated B/S Summary (IFRS)JPY in Millions

End of
FY20.3End of
FY21.3 1Q

Difference

Current assets

98,852

95,163-3,689Cash and cash equivalents

32,702

37,111+4,408Trade and other receivables

26,657

19,210-7,447

Operational investment securities

36,54636,303-243

63,44464,690+1,247

Property, plant and equipment

21,367

20,955-413

Investments accounted for using equity method

21,47520,890-585

Other financial assets
Total assets

6,319
162,296

8,452
159,853+2,133-2,442Current liabilities

50,83846,539-4,299Borrowings

4,927

6,909

+1,982

Trade and other payables
Non-current liabilities

41,20358,66334,76360,433-6,440+1,770Bonds and borrowings

38,24739,394+1,148Other financial liabilities

13,553

13,329-224

Deferred tax liabilities

5,426

5,753

+327

Total liabilities

109,501

106,972-2,529Total equity

52,79552,882+87

52,033

51,824-209

Share capital

7,591

7,596

+5

Capital surplus

4,409

4,420

+12

Treasury shares-5,012-5,012

-0

324

1,624

+1,299Retained earnings

44,721

43,196-1,525 Decrease due to the payment of year-end dividends

Non-controlling interests
Total liabilities and equity

762
162,296

1,058
159,853+296-2,442

Non-current assets

Total equity attributable to owners of parent

Other components of equity

Reason for change / Remarks

FT business-related items
FT business-related items and decrease of account receivables
Decrease by the exit portfolio
Decrease by depreciation
Decrease by dividends of equity methods affiliates
Increase due to mark-to-market valuation of listed shares

Borrowing for operating funds
FT business-related items and decrease of account payables
Borrowing of capital expenditures

Increase due to mark-to-market valuation of listed shares

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

6Segment Performance Review

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

7

FT Segment
Ⅰ

Financial Technology Segment
Revenue

FY20.3

Profit before tax

1Q

2,083 M JPY

1,061 M JPY

FY21.3 1Q

2,340 M JPY

1,018 M JPY➤ econtext, Inc.

Integrates online and offline business as the convenience store
payment pioneer➤ VeriTrans Inc.

Provides leading e-commerce payment solutions➤ econtext ASIA Ltd.

Payment business in Hong Kong

➤ NaviPlus Co., Ltd.

Subsidiary of VeriTrans Inc. Offers website support tools including
personalized recommendation engines➤ ANA Digital Gate, Inc. （49％ stake／equity method）
Develops and offers the new payment solution by FinTech➤ SCORE Co., Ltd （49％ stake／equity method）

Development of post-settlement payment business and various
financial businesses utilizing settlement data

➤ TD Payment Corporation （49％ stake／equity method）
Offers multiple payment solutions for POS systems

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

8

FT Segment – First Year Strategy of New Mid-term Plan
Financial Technology Segment in New Normal Era
Strategies in the First YearⅠ Two-sided strategy to support profit before tax CAGR 20% in
payment business (EC, Face-to-face Settlement)
Ⅱ Expand business in payment peripheral business (Marketing,
Fraud detection, Data utilization)
Ⅲ Alliance with strategic partners
Ⅳ Target after five years: Transaction volume of 10 trillion yen
Ⅴ System investment for 5 years/ Overall optimization

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

9

FT Segment – Change of Classification
Due to the diversification of payment methods, there will be a divergence fromthe actual situation in the conventional disclosure classification, change theclassification from the viewpoint of management approach from current termPrevious
Classification

New
Classification

Definition

Credit card
payment

Spread Type

Payment such as credit card payment, which
are fees that are based on the payment amount

Data processing

Fee Type

Payment in which fees are paid according to thenumber of payment processes, mainly Data
processing etc.

Convenience
store payment

Shop Payment Type

Payment settlement by convenience store
terminal

Stock Type

Fixed income generated by fixed monthly
amount such as monthly basic fee and OEM
offer fee for payment system

Monthly basic fee/OEM
OthersPayment peripheral Revenues from refund remittance service andgroup companies that develop paymentbusiness
peripheral businesses etc.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

10

FT Segment – Highlights（KPI）
Transaction volume +19% YoY, number of transaction +36% YoY～ Although inbound and travel-related transaction are sharply decreasing,total transaction volume is increasing due to consumption by a going out self-restraint ～Transaction Volume
FY20.3
1Q

FY21.3
1Q(JPY in 100 Millions)

6,898(+19%)

5,788

Shop
payment
Type

Number of Transaction
FY20.3
1Q(in Millions)(+36%)

FY21.3
1Q

144

Shop
payment
Type105
Fee Type
Fee Type

SpreadType

SpreadType

Fee Type
Transaction Volume

YoY+38.7%

Number of Transactionid.

+32.2％• Increased transaction mainly in digital contentssuch as Games and Video distribution services
by a going out self-restraint• Increased transaction of national pension
insurance premiums

Spread TypeTransaction Volume

YoY

-5.5%

Number of Transactionid.

+43.0％• Cashless payments and QR code payments inJapan grew due to the progress of cashlesstransactions, and the number of transactions
increased.
• Transaction volume decreased, due to adecrease in inbound QR code payments andtravel-related payments with high transaction
volume per transaction
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

11

FT Segment – Highlights（P/L）
Transaction volume steadily increasing, revenue marked 2.3 B JPY, +12% YoY～ Earnings decreased due to system investment leading to expansion of business scaleand diversified payment methods～

Revenue(JPY in
100 Millions)

FY20.3
1Q(+12%)

20.8

FY21.3
1Q

23.4

Payment
peripheralbusiness
Stock TypeShop
payment
Type

Fee Type
SpreadType

Revenue

Profit before tax
FY20.3
1Q

FY21.3
1Q(JPY in 100 Millions)

14

50.9%

Ratio of profit before
tax to revenue

12

(-4%)
10
8
6
4
2
0

10.6

Spread Type
50

43.5%
40

10.2

Fee Type
Payment
peripheralbusiness• Significant decrease in inbound
QR code payments and travelrelated payments• Increased revenue mainly indigital contents by a going out
self-restraint• Refund remittance service
expanded due to event
cancellation etc.

Profit before tax

30 Start building next-generation system andoperation system in anticipation of growthover the next five years
20  Further advancement of 24/365 system andcomplete redundancy of operations• System-related investment tosupport diversifying payment
10Factors that

increase
costs

0• Operation enhancement to expand
customer support• Office function expansion due tobusiness expansion
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

12

FT Segment – Image of New Five-year Plan Driver and Growth Strategy
Face-to-face Settlement Alliance strategy

POS Register

TabletPOS

MultiPayment
TerminalmPOS

QR CodeScanning
Panel
Cloud Pay

JV with Toshiba TEC,
the top share company
in Japan providing multipayment solution

JV with ANA group
Providing multipayment terminals
for face-to-faceretailers, etc

MPM settlement ofcommon QR codes
promote connection with
influential players suchas d-payment, Overseas
payments in addition toLINE Pay in August,after that, au PAY, etc.

Transaction Volume Growth ImageCAGR 30%
Large
Scale

New Five-Year
Mid-term Plan

Medium
Scale

EC
Small
Scale

Face-to-faceSettlement
FY16.6 1Q

Actual

FY21.3 1Q

FY25.3 4Q

TargetNote) MPM (Merchant Presented Mode) : Method in which consumers scan QR codes displayed at stores with their smartphones to make payments
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

13

MT Segment
Ⅱ

Marketing Technology Segment
Revenue

Profit before tax

FY20.3

1Q

3,376 M JPY

327 M JPY

FY21.3

1Q

3,335 M JPY

178 M JPY

➤ Marketing Technology Company

Supports client’s business through performance-based ads, Online to
Offline strategy and web marketing➤ DG Communications Co., Ltd.

Provides solutions that make people‘s lives more comfortable, mainly
through the real estate advertising business➤ BI.Garage, Inc.

Develops and provides ad products incorporating data science, media
consortium business, and cutting edge ad technology➤ CyberBuzz, Inc. （20.6％ stake／equity method）

Provides the social media marketing platform structured with influencers
as its center part

➤ DG MARKETING DESIGN, Inc. （20％ stake／equity method）
Established on June 25th, 2018 and its predecessor is Business Design
Company

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

14

MT Segment – First Year Strategy of New Mid-term Plan
Marketing Technology Segment in New Normal Era
Strategies in the First YearⅠ Optimization of human resources and technologies that
support the growth of the digital ad business
Ⅱ Support for DX adoption by the entire group of real estatedevelopers
Ⅲ Full-scale launch of the Content Media Consortium business
Ⅳ Media development tailored to new lifestyles (DOOH businessgroup)Ⅴ Strategic alliances with DG Lab and foreign ad-tech companies(Europe/US/India others)

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

15

MT Segment – Highlights
Revenue remained unchanged YoY at 3.3 B JPY, andprofit before tax decreased 46% to 180 M JPY～ Advertising volume fell 11% YoY. Digital ad revenue remained firm, but real estate
sales advertising transactions declined ～Revenue

Advertisement volume(JPY in
100 Millions)

FY19.3

FY20.3

FY21.3

Real estate
Smartphone/App
Cosmetics/HR
Financial

90
23

25
19

22

20

1Q

24

19

16

27

82

28
2Q

19
16
19

27
3Q

82
22

85

84

21

19

17

21

17

18

22

32

4Q

26
1Q

25
2Q

16

21
13
23

3Q

FY21.3
1Q(JPY in
100 Millions)

4

3

73
13

Integrated
DigitalMarketing※

11(+47%)

40

4Q

Digital
Ads

32

1Q

 Real estate advertising declined 43% YoY due to COVID-19.
 Revenue of mainstay digital ads were flat, while revenue in thefinancial services area were up 24%.

Real estateads(-45%)
20.3 1Q■ Real estateads: down by 45%21.3
YoY1Q■ Integrated digital marketing: up by 47% YoY

FY20.31Q

9.8%

FY21.3
1Q

10

Ratio of profit before
tax to revenue

9
8

3.3

7
6

5.4%
2

(-46%)

5
4

1.8

17

18

31

FY20.3
1Q

33.8 (-1%) 33.3

97

98

93

(JPY in
100 Millions)

Profit before tax

3

1

2
1

0

 Profit declined, mainly due to a 150 M YoY
decline in real estate sales advertising※ Digital ad and solution (CRM,development,consulting etc)

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

160IT Segment
Ⅲ

Incubation Technology Segment
Revenue

Profit before tax

FY20.3

1Q

507 M JPY

146 M JPY

FY21.3

1Q

389 M JPY

72 M JPY➤ DG Ventures Inc. （Former DG Incubation, Inc.)*
Invests in and incubates cutting-edge internet startups*Trade name changed to “DG Ventures Inc.” as of January 1st 2020.

➤ Open Network Lab, Inc.

Seed Accelerator Program in progress in the 21st term

➤ Digital Garage US, Inc.

The US-based global strategy headquarters➤ DG Daiwa Ventures, Inc. （50％ stake／equity method）

Manages DG Lab Fund to invest in startups with next-generation technologies

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

17

IT Segment – First Year Strategy of New Mid-term Plan
Based on the Barbel Strategy, prepare a system for investment in the middle
stage from support for startups, and establish a DG investment ecosystem
Value<Concentrated investment area>
Operational investment
securities

vvB JPY
36.3

MiddleStage
MiddleStage(FY21.3 End of 1Q)

Startup
Seed

Early

The number ofinvestment companies : Many
The amount of investment : Few

Middle

Later

Time

Japan

1/3

Asia

1/3

US

1/3

OthersThe number ofinvestment companies : Few
The amount of investment : Many

Copyright © 2020 Digital Garage, Inc. All Rights Reserved18

IT Segment – Highlights
While the fair value of existing investments increased, the balance of operational
investment securities remained unchanged due to partial sales～ Crustal fluctuations against the background of the international situation, and capital inflows toAsia, especially India and Vietnam etc ～Operational Investment Securities（ratio by currencies）(JPY in
100 Millions)

365

(-1%)

363
INR

4.1%

JPY

26.5%

Portfolio by Regions
Ohers
0.9%
GBP
1.1%

Investment Environment in Asia
Europe

0.5%
Japan

USD

67.4%

Others

8.9%

26.1%

Asia

35.1%
North
America

29.4%

End of 20.3期末
March 2020

End21.3期1Q末of June 2020

• The economic war between the
United States and China has
drasticallychangedtheenvironment surrounding Asia
• Capital outflow from Hong Kong
due to the enforcement of the
National Safety Act• Flow of funds into India andVietnam etc as a growth market
to replace China
 Google Announces $10 billion
in India in 5-7 Years Sequoia Capital and othermajor funds are preparing toinvest in post-China Southeast
Asia
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

19

IT Segment – Portfolio and Examples of Investment
Impairment risk estimated at the beginning of the fiscal year is expected to be limited as a result ofcareful examination of post-pandemic investee conditions～ Valuation gain on Goodpatch inc. listed on Mothers at the end of 1Q isscheduled to be recorded as 2Q ～Examples of Investment

QD Laser [Japan]
Develop and provide new semiconductor laser
solutions in the telecommunications, industrial,
medical, and consumer sectors as a pioneer in thecommercialization of quantum dot laser technology

Moneytree[Japan]Provides personal finance app that aggregates bank,credit card, e-money, and various expenses to theuser’s smartphone etc to check and track accountbalances and usage.

STMN [Japan]

Sen Do Technology[Vietnam]News① Goodpatch inc. was listed on June 30 thOffering price: 690JPY
Opening price: 2,757JPY (July 1st)

Operates Sendo, a marketplace for C2C and B2C
in Vietnam, and provides electronic wallet
services

NoBrokerTechnologies
Solutions [India]

Operates India’s peer-to-peer property marketplace.
Using this service, people can rent/buy houses online
without brokers

Expedient
Healthcare
Marketing [India]

Offers perks and benefits through its cloud platform
TUNAG to help companies increase employee
satisfaction.

Operates “Healthians.com”, a healthcare web-based service
that provides reservations for examinations at clinics andrelated information from doctors and specialists

Vivino [US]Cobalt Labs [US]Vivino is the world’s largest online wine marketplaceand most downloaded wine app, uses community data
to suggest personalized wine recommendations.

Provides a penetration test platform (PTaaS) that
conducts intrusion testing of enterprise software in
the form of crowdsourcing, from the discovery ofvulnerabilities through to restoration.

Partially sold in connection with the IPO
Valuation gains will be recorded in 2Q② Open Network Lab 10 th anniversary
Supporting over 150
startups in 10 years
Create a bookcontaining methods in
one book.

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

20

LTI Segment
Ⅳ

Long-Term Incubation Segment
Revenue

Profit before tax

FY 20.3

1Q

2,232 M JPY

1,493 M JPY

FY21.3

1Q

801 M JPY

120 M JPY

➤ Kakaku.com, Inc. （20％ stake／equity method ）Operates purchase support service Kakaku.com, restaurant review andrestaurant service tabelog, and New Media and Solutions➤ Crypto Garage, Inc.
Promoting development of advanced financial services utilizing blockchain
technology and cryptography technology with Tokyo Tanshi Co., Ltd.

➤ Brainscan Technologies, Inc.
MRI business for drivers➤ ACADEMIE DU VIN
Operation of wine schools and development of community and e-commercebusinesses utilizing digital technologies

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

21

LTI Segment – Highlights
Decrease share of profit of investments accounted for using equity method of Kakaku.com, Inc.
and increase associated with commercialization of Crypto Garage～ As actions for 1Q of FY21.3, Kakaku.com temporarily provided Tabelog free of charge formember stores～

Profit before tax(JPY in 100 Millions)

税引前利益

Business Progress of Kakaku.com, Inc.
【Quarterly Consolidated Revenue for Kakaku.com Group】

Consolidated Revenue YoY-33.2%

14.9

Ref. Kakaku.com, Inc. Results Briefing for FY21.3 1Q（-92%）
20.3期 1Q
FY20.3
1Q

1.2

21.3期 1Q
FY21.3
1Q

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

22

LTI Segment – Status of Each Business
Crypto Garage, Inc.

Brainscan Technologies, Inc.

・Started providing services to multiple businesses inJapan and overseas, and started transactions in August・Full-scale operation of trading transactions from FY21.3 2Q

The crypto assets such as the Bitcoin are starts for
activation in the half-valued period, and we start
the business for participation of domestic major
player and overseas business company in this term

・The number of MRI physical examination temporarily
decreased due to the COVID-19, but it increased significantly

Aiming to Service Development andmonetization by Platform of Health Care Data

Medical Institutions

OTC
Operators
in overseas

Simultaneous
settlementon blockchain

Exchange
in JapanInsurancecompany
Pharmaceuticalcompany
Health insurance Doctor
societyTransportation company

Inspection instrument (MRI)
Medical examinee(Drivers)

Platform of Health Care Data
(Electronic medical chart,
Health examination results, Life log)

ACADEMIEDU VIN・The wine school was temporarily closed during the declaration of an emergency,
but it is now open and online courses are doing well・In the liquor sales business, sales to restaurants have decreased, but e-commerce has beenfavorable
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

23

Appendix

Copyright © 2020 Digital Garage, Inc. All Rights Reserved

24

Financial Results: Consolidated PL (IFRS)FY18.3

FY19.3

FY20.3

Other expenses
Finance costs
Profit before tax
Income tax expense
Profit from continuing oprerations

25,50318,141
1,007
2,111
764
3,481
17,127
7,187
9,095
542
303
8,376
1,857
6,518

35,68722,713
6,090
1,933
117
4,835
22,264
10,401
11,296332
235
13,424
4,088
9,336

36,936
26,687
4,020
2,416
93
3,720
26,92912,036
14,022492
379
10,0082,677
7,331■ Discontinued operations
Revenue
ExpensesProfit (loss) before tax
Income tax expense
Loss (gain) on sales on discontinued operations
Income tax expense from sale of discontinued operations
Profit (loss) from discontinued oprerations

3,260
3,403
-143
38
-181

1,261
1,655
-394
-225
898
275
454

-

6,337
6,412
-75

9,790
9,771
19

7,331
7,420
-89

JPY in Millions■ Continuing operations
Revenue
Revenue in recurring business
Revenue in operational investment securities
Other income
Finance income
Share of profit of investments accounted for using equity method
Expenses
Cost of sales
Selling, general and administrative expenses

ProfitOwners of parent
Non-controllong interests

ResultResultResultCopyright © 2020 Digital Garage, Inc. All Rights Reserved

25

Financial Results: Consolidated PL by Segments (IFRS)FY18.3

FY19.3

FY20.3

JPY in Millions

ResultResultResultRevenue

25,50335,68736,936

Financial Technology

5,929

7,447

8,609

Marketing Technology

9,939

12,922

15,375

Incubation Technology

2,553

8,022

4,868

Long-term Incubation

6,301

7,133

7,929

781

164

8,376

13,424155
10,008Financial Technology

2,809

3,349

4,049

Marketing Technology

1,856

1,215

1,853

Incubation Technology

1,321

6,889

3,563

Long-term Incubation

3,621

4,378

4,701

Others/Adjustments and Eliminations-1,231-2,408-4,158Others/Adjustments and Eliminations
Profit before tax

NOTE: Segment revenue and profit before tax are before elimination of intersegment transaction and corporate revenue and expenses.
Copyright © 2020 Digital Garage, Inc. All Rights Reserved

26

Press Releases
Date

Title

2020.8.12

DG Group’s “Cloud Pay,” a Unified QR Code Payment Solution Starts Linkage with “LINE Pay”

2020.8.3
2020.7.31
2020.7.28

Digital Garage Enters the DOOH Market with the Launch of “SAKIZAKI TERUKO,” a Digital Signage Media for
Beauty Salons
Digital Garage Supports the Ministry of the Environment to Set Up an Official “LINE” Account and Provides a
Message Delivery Service for “Heat Stroke Caution Alert (Trial Service)”
Digital Garage Develops “Musubell” for Centralized Real Estate Contract Management, Integrated with
Bengo4.com’s “CloudSign” to Fully Digitalize Contract Documents

2020.6.22

28 Prominent Media Companies Establish the Content Media Consortium

2020.6.9

Crypto Garage Launches the Commercial Service of “SETTLENET,” a Settlement Platform for the Crypto Asset OTC
Market2020.5.28

Digital Garage’s Portfolio Company, Goodpatch is Approved for Listing on the TSE’s Mothers Section

Copyright © 2020 Digital Garage, Inc. All Rights Reserved27

Please note that the business forecasts and strategies covered in today’s presentation are based on our current evaluation and future results may vary significantly depending
on unforeseeable events or circumstances. This announcement is solely for the purpose of the investors relationship and is not for making any solicitation for investment inany securities. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any securities of our consolidated
subsidiaries have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of the U.S. Securities Act. Any public offering of securities to be made in the United States will bemade by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements.