Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on IFRS)
Company name:November 9, 2023

Digital Garage, Inc.

Stock exchange listing: Tokyo
Securities code:
4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,
Kaoru Hayashi
President Executive Officer and Group CEO

Inquiries:

Corporate Officer Deputy Head of Corporate
Hiroyuki Nozaki
Div.

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 9, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

TEL

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable Comprehensive
Revenue
Profit before tax
Profitto owners of parent
incomeMillions ofMillions ofMillions ofMillions ofMillions
%
%
%
%
%
yen
yen
yen
yen
of yenSix months ended
22,370 53.6
8,266
–
5,479
–
5,617
–
5,833
–
September 30, 2023
Six months ended
14,564 (63.7)(6,642)–(4,414)–(4,325)–(4,282)–September 30, 2022
Basic earnings per share

Diluted earnings per share

Yen
Yen
Six months ended September 30, 2023
123.19121.80Six months ended September 30, 2022
(91.66)(91.66)(Note Due to the application of IAS 12 “Income Taxes”, figures for the second quarter of the fiscal year ending March 31, 2023 have been
retroactively applied.)(2) Consolidated financial position

Ratio of equity
attributable to owners ofparent to total assets
Millions of yen
Millions of yen
Millions of yen%
As of September 30, 2023
221,297
81,86579,55235.9
As of March 31, 2023
216,275
81,97280,03037.0(Note Due to the application of IAS 12 “Income Taxes”, figures for the fiscal year ending March 31, 2023 have been retroactively applied.)
Total assets

Total equity

Equity attributable toowners of parent

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
0.00
0.00

Yen
–

Yen
37.00

Yen
37.00

–

–

–

Year ending March 31, 2024 (Forecast)(Note The dividend forecast for the fiscal year ending March 31, 2024 has not been determined.)Total

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
The Company does not disclose its consolidated financial results forecast because it is difficult to reasonably estimate the fair value of securities
held by the Group at the end of the fiscal year in the field of startups investment etc.
The profit before tax in Platform solution segment, our revenue base that integrates payment and marketing businesses, etc., is expected toincrease by approximately 15% compared to the consolidated financial results for FYE March 31, 2023.
1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No

Yes
No
No

(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of September 30, 2023

47,614,800 shares As of March 31, 2023

47,607,500 shares

2,739,371 shares As of March 31, 2023

1,534,826 shares

Number of treasury shares at end of period
As of September 30, 2023

Average number of shares during period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

45,599,461 shares Six months ended September 30, 2022

2

47,182,634 shares

Condensed quarterly consolidated financial statements
Condensed quarterly consolidated statement of financial position(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and cash equivalents

53,33549,273

Trade and other receivables
Inventories

20,765357

23,257447

Operational investment securities
Other financial assets

67,676281

73,924
277

Income taxes receivable
Other current assets

1,384
979

877
805

144,776

148,860

Property, plant and equipment
Goodwill

16,613
6,415

16,1496,442

Intangible assets
Investment property

4,548
3,400

4,890
3,776

Investments accounted for using equity method
Other financial assets

25,922
14,245

26,106
14,772

Deferred tax assets
Other non-current assets

25
331

23
278

Total non-current assets

71,49872,437

216,275

221,297

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of September 30, 2023

As of March 31, 2023
Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

38,74528,586

Trade and other payables
Other financial liabilities

48,877
1,691

41,065
1,691

Income taxes payable
Other current liabilities

1,388
4,080

606
3,406

Total current liabilities

94,78075,353

Bonds and borrowings
Other financial liabilities

13,957
9,127

37,3308,275

Retirement benefit liability
Provisions

477
476

469
478

Deferred tax liabilities
Other non-current liabilities

14,717767

16,797729

Total non-current liabilities

39,52264,079134,303

139,432

Share capital
Capital surplus

7,830
6,229

7,840
6,345

Treasury shares
Other components of equity(6,293)
1,650(11,156)
1,973

Retained earnings

70,61474,551

Total equity attributable to owners of parent

80,03079,552

Non-controlling interests

1,942

2,313

Total equity

81,972

81,865216,275

221,297

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2023

Six months ended
September 30, 2022
Revenue
Revenue in recurring business
Revenue in operational investment securities
Other income
Finance income
Share of profit of investments accounted for using equity
methodTotal
Expenses
Cost of sales
Selling, general and administrative expenses
Other expenses

12,146

12,791

233
336

5,708
629

1,041

1,371

809

1,872

14,564

22,370

5,117

5,221

7,869
167

8,570
175

Finance costs

8,052

138

Total

21,206

14,104

Profit (loss) before tax
Income tax expense(6,642)(2,228)

8,266
2,787

Profit (loss)(4,414)

5,479

Profit (loss) attributable to
Owners of parent(4,325)

5,617

Non-controlling interests

(89)

(138)

Earnings (loss) per share
Basic earnings (loss) per share(91.66)123.19(91.66)121.80

Diluted earnings (loss) per share5Stand-alone 2nd quarter of fiscal year
2nd quarter ended September(Millions of yen)
2nd quarter ended September

30, 2022

30, 2023

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,144(7,301)

6,455
1,125

Other income
Finance income

176(1,090)206
399

Share of profit of investments accounted for using equity
method(1,099)

998

Total

(3,170)9,183

Cost of sales
Selling, general and administrative expenses

2,495
4,112

2,538
4,403

Other expenses
Finance costs

87
7,982

90
66

Total

14,676

7,096

Profit (loss) before tax(17,846)

2,087

Income tax expense(5,992)

643

Profit (loss)(11,854)1,444(11,813)
(42)

1,521
(77)

(250.10)(250.10)

33.68
33.28

ExpensesProfit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share6Condensed quarterly consolidated statements of comprehensive income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2023

Six months ended
September 30, 2022
Profit (loss)
Other comprehensive income(4,414)

5,479

(828)

(300)

22

8

938

645

0

1

132

353

(4,282)

5,833(4,199)
(83)

5,965
(132)

Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

7

Stand-alone 2nd quarter of fiscal year

Profit (loss)

2nd quarter ended September(Millions of yen)
2nd quarter ended September

30, 2022

30, 2023(11,854)

1,444

(402)

(599)

22

1

346

178

0

0

(34)

(419)

(11,888)

1,025(11,849)

1,101

(39)

(76)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests8

Condensed quarterly consolidated statement of changes in equity
Six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share
capitalBalance at April 1, 2022

7,692

CapitalsurplusFinancial assets

Exchangemeasured at

differenceson

Remeasurements

comprehensive

translationof foreign

benefit plansincomeoperations

Treasuryshares6,147

fair value
through other(1,409)

613

Total

of defined

1,660

0

2,273

Cumulative effect of accountingchangeRestated balance
Profit (loss)

–
7,692

6,147

(1,409)Other comprehensive income
Comprehensive income
Issuance of new shares

–
126

–
126

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions

–

(806)

932

(806)

932

0

2,273
–
125

–

125
–
–

(59)

116

–
–

(0)

–
(54)

of equity to retained earnings
Balance at September 30, 2022

1,660

13

Purchase of treasury shares
Transfer from other components
Total

613

(54)

126

80

116

(54)

–

–

(54)

7,818

6,226

(1,293)

(248)

2,592

0

2,344

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2022
Cumulative effect of accountingchangeRestated balance

Non-controllinginterests

Total

Total

81,03595,738

1,479

97,217

(120)

(120)

(0)

(120)

80,916

95,618

1,479

97,097

Profit (loss)
Other comprehensive income(4,325)(4,325)
125

(89)
6

(4,414)132

Comprehensive income(4,325)(4,199)(83)(4,282)Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

251
13(1,648)

Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings
Total
Balance at September 30, 2022

54

251
450

463

(1,648)(1,648)

57
(0)

57
(0)

–

–

(1,594)(1,326)

450

(877)

74,99790,092

1,846

91,9399

Six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured atfair value
through othercomprehensive
incomeBalance at April 1, 2023
Profit (loss)

7,830

6,229

(6,293)

–
10

–
10

–

Other comprehensive income
Comprehensive income
Issuance of new shares
Changes in ownership interest in
subsidiaries

Exchangedifferences

Remeasurementsontranslationof foreign
operations

(469)

2,111

(293)

640

(293)

640

Total

of defined
benefit plans

8

1,650
–
347

–

347
–

(3)

–

Change in scope of consolidation
Dividends––

Share-based payment transactions
Purchase of treasury shares

166
(57)

137
(5,000)––Transfer from other componentsof equity to retained earnings

(24)

Other
Total
Balance at September 30, 2023

(24)

1

–

10

116

(4,863)

(24)

–

–

(24)

7,840

6,345

(11,156)

(787)

2,752

8

1,973

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2023
Profit (loss)

70,614
5,617

80,030
5,617
347

6

353

5,617

5,965
20

(132)

5,833
20

(3)

453

450

–
(1,705)49

49(1,705)

Changes in ownership interest in
subsidiaries
Change in scope of consolidation
Dividends(1,705)

Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings

24

Other
Total
Balance at September 30, 2023

Total

interests

Total

Other comprehensive income
Comprehensive income
Issuance of new shares

Non-controlling
1,942
(138)

81,972
5,479

303(5,057)303(5,057)

–

–

1

1

(1,680)(6,442)502(5,940)74,551

79,552

2,313

81,86510

Condensed quarterly consolidated statements of cash flows
Six months ended(Millions of yen)Six months ended

September 30, 2022

September 30, 2023

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization(6,642)
1,804

8,266
1,857

Interest and dividend income
Interest expenses on borrowings and bonds

(24)
134

(26)
130

Share of loss (profit) of investments accounted for using
equity method(809)(1,872)

Loss (gain) on investment securities
Loss (gain) on sales of shares of subsidiaries and associates

7,911
–

(526)
(1)

Decrease (increase) in trade and other receivables
Decrease (increase) in investment securities for sale

4,494
(1,082)(2,708)(5,696)

Decrease (increase) in inventories
Increase (decrease) in trade and other payables

(21)
7,784

(90)
(7,794)

Increase (decrease) in accrued consumption taxes
Other

(273)
(1,086)118(1,161)

Subtotal

12,190(9,502)

Interest and dividends received
Interest paid

759
(50)

731
(58)

Income taxes refund (paid)

(659)

(612)

12,239(9,440)Purchase of property, plant and equipment
Purchase of intangible assets

(234)
(772)

(411)
(933)

Purchase of investment securities
Proceeds from sale of investment securities

(2)
128

(213)
149

Proceeds from dividend of investment partnership
Purchase of investments accounted for using equity method

61
(38)

793
(1)

Proceeds from sale of investments accounted for using equity
method

–

58

Other

(38)

(2)

Net cash provided by (used in) investing activities

(894)

(560)

Net cash provided by (used in) operating activities
Cash flows from investing activities

11

Six months ended(Millions of yen)Six months ended

September 30, 2022

September 30, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

3,030
1,100

14,51025,100

Repayments of long-term borrowings
Redemption of bonds(1,237)–(1,623)(25,000)

(867)
463

(858)
499

(0)
(1,647)(5,076)(1,703)

Repayments of lease liabilities
Capital contribution from non-controlling interests
Purchase of treasury shares
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

9

4

851

5,853

94

85

Net increase (decrease) in cash and cash equivalents

12,290(4,062)

Cash and cash equivalents at beginning of period

43,41553,335

Cash and cash equivalents

55,70549,27312