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 Nine Months Ended December 31, 2023
(Based on IFRS)
Company name:February 8, 2024

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:

February 8, 2024–

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

Yes
No

TEL

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toComprehensive
Revenue
Profit before tax
Profitowners of parent
incomeNine months ended
December 31, 2023
Nine months ended
December 31, 2022

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

27,542

23.3

6,136

–

4,231

–

4,415

–

4,553

–

22,333 (57.8)(11,858)–(8,093)–(7,931)–(8,520)–

Basic earnings per share

Diluted earnings per share

Yen
Yen
Nine months ended December 31, 2023
97.34
96.23
Nine months ended December 31, 2022
(168.30)(168.30)(Note) Due to the application of IAS 12, "Income Taxes" (revised in May 2021), the figures for the third quarter of the fiscal year ended March
31, 2023, have been retrospectively 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 December 31, 2023
234,923
80,62478,361
33.4
As of March 31, 2023
216,275
81,97280,03037.0(Note) Due to the application of IAS 12, "Income Taxes" (revised in May 2021), the figures for the fiscal year ended March 31, 2023, have been
retrospectively 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)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, which the Group holds through investments primarily in startup companies, at the end of the period.
The profit before tax for the Platform Solution segment, the Group's revenue base that integrates the payment business and marketingbusiness, etc., is expected to increase by approximately 15% compared to the same period of the previous fiscal year.

1

* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:

Yes
No

Changes in accounting estimates:No(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of December 31, 2023

47,617,700 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 December 31, 2023

Average number of shares during period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

45,357,730 shares Nine months ended December 31, 2022

* The quarterly financial results are not subject to quarterly review by a certified public accountant or auditing firm.
* Explanation of the appropriate use of financial results forecasts and other special notes(Means of obtaining supplementary information on quarterly financial results)
Supplementary materials for quarterly financial results will be posted on the Company's website.

2

47,127,770 shares

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

As of December 31, 2023

AssetsCurrent assets
Cash and cash equivalents

53,33562,740Trade and other receivables
Inventories

20,765357

24,911
424

Operational investment securities
Other financial assets

67,676281

71,151
277

Income taxes receivable
Other current assets

1,384
979

1,492
1,959

144,776

162,955

Property, plant and equipment
Goodwill

16,613
6,415

15,732
6,428

Intangible assets
Investment property

4,548
3,400

5,217
3,564

Investments accounted for using equity method
Other financial assets

25,922
14,24526,55914,017

Deferred tax assets
Other non-current assets

25
331

25
428

Total non-current assets

71,49871,968216,275

234,923

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of December 31, 2023

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

38,74529,755Trade and other payables
Other financial liabilities

48,877
1,691

56,540
1,676

Income taxes payable
Other current liabilities

1,388
4,080

3
3,635

Total current liabilities

94,78091,608

Bonds and borrowings
Other financial liabilities

13,957
9,127

37,382
7,861

Retirement benefit liability
Provisions

477
476

461
479

Deferred tax liabilities
Other non-current liabilities

14,717767

15,864644

Total non-current liabilities

39,522

62,691

134,303

154,299

Share capital
Capital surplus

7,830
6,229

7,844
6,380

Treasury shares
Other components of equity(6,293)
1,650(11,156)
1,322

Retained earnings

70,61473,971

Total equity attributable to owners of parent

80,03078,361

Non-controlling interests

1,942

2,263

Total equity

81,97280,624

216,275

234,923

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income
First nine months of fiscal year
(Millions of yen)
Nine months ended
December 31, 2023

Nine months ended
December 31, 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

18,50819,226

–
3,291

3,990
863

391

697

143

2,765

22,33327,542

7,539

7,812

Loss in operational investment securities
Selling, general and administrative expenses

6,009
11,861–
13,140

Other expenses
Finance costs

263
8,520

263
191

Total

34,191

21,406

Profit (loss) before tax(11,858)

6,136

Income tax expense(3,765)

1,904

Profit (loss)(8,093)

4,231(7,931)
(162)

4,415
(184)

(168.30)(168.30)

97.34
96.23

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share5Stand-alone 3rd quarter of fiscal year
3rd quarter ended December(Millions of yen)
3rd quarter ended December

31, 2022

31, 2023

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,362
(233)

6,436
(1,718)Other income
Finance income

2,955
(650)

234
(674)

Share of profit of investments accounted for using equity
method

(665)

894

Total

7,769

5,171

Cost of sales
Loss in operational investment securities

2,421
6,009

2,591
–

Selling, general and administrative expenses
Other expenses

3,992
96

4,569
88

ExpensesFinance costs

468

53

12,986

7,302

Profit (loss) before tax
Income tax expense(5,216)(1,537)(2,130)(883)

Profit (loss)(3,679)(1,248)

Profit (loss) attributable to
Owners of parent(3,607)(1,202)

Non-controlling interests

(73)

(46)

Earnings (loss) per share
Basic earnings (loss) per share(76.70)(26.79)(76.70)(26.79)Total

Diluted earnings (loss) per share6Condensed quarterly consolidated statements of comprehensive income
First nine months of fiscal year
(Millions of yen)
Nine months ended
December 31, 2023

Nine months ended
December 31, 2022
Profit (loss)
Other comprehensive income(8,093)

4,231

(885)

(41)

17

5

441

357

0

0

(427)

322

(8,520)4,553(8,359)
(161)

4,734
(181)

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
Stand-alone 3rd quarter of fiscal year

Profit (loss)

3rd quarter ended December(Millions of yen)
3rd quarter ended December

31, 2022

31, 2023(3,679)(1,248)

(57)

260

(5)

(3)

(497)

(288)

0

(1)

(559)

(32)

(4,238)(1,280)(4,160)(1,230)

(79)

(50)

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 interests7

Condensed quarterly consolidated statement of changes in equity
Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 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

–
133

–
133

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions
Purchase of treasury shares
Transfer from other components

Total

441

(868)

441

2,273
–
(428)

–

(428)
–
–

(37)

116

–
–

(12)

(4,884)

–
(397)

(14)

–

133

83

(4,767)

(397)

–

–

(397)

7,825

6,230

(6,177)

(653)

2,101

0

1,448

Equity attributable to owners of parentchangeRestated balance

(868)

0

13

Retained earnings
Balance at April 1, 2022
Cumulative effect of accounting

1,660

(397)

of equity to retained earnings
Other
Balance at December 31, 2022–

613

Non-controlling

Totalinterests

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(7,931)(7,931)
(428)

(162)
0

(8,093)(427)

Comprehensive income(7,931)(8,359)(161)(8,520)Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

265
13(1,648)

Balance at December 31, 2022

765
(1,648)79(4,896)79(4,896)397––(1,251)(6,200)752(5,448)71,73381,0592,070

83,129

Other
Total

752

(1,648)

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

265

(14)

8

(14)

Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 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)ontranslation

6,229(6,293)

(469)
(36)

355

–
14

–
14

–

(36)

355

Changes in ownership interest in
subsidiaries

Remeasurements

Totalof defined
benefit plansof foreign
operations

7,830

Other comprehensive income
Comprehensive income
Issuance of new shares

Exchangedifferences

2,111

8

1,650
–

–

319
–

319

(3)

–

Change in scope of consolidation
Dividends––

Share-based payment transactions
Purchase of treasury shares

193
(57)

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

(647)

Other
Total
Balance at December 31, 2023

4

–

14

150

(4,863)

(647)

–

–

(647)

7,844

6,380

(11,156)(1,152)

2,466

8

1,322

Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2023

(647)

Non-controllinginterests

Total

Total

70,61480,0301,942

81,972

Profit (loss)
Other comprehensive income

4,415

4,415
319

(184)
3

4,231
322

Comprehensive income

4,415

4,734

(181)

4,553

Issuance of new shares
Changes in ownership interest in

28

subsidiaries
Change in scope of consolidation
Dividends
Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings
Other
Total
Balance at December 31, 2023

(1,705)

28

(3)

453

450

–

49

49

(1,705)330(1,705)330(5,057)(5,057)647––(1,058)(6,403)502(5,901)73,971

78,361

2,263

80,6244

9

4

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

December 31, 2022

December 31, 2023

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization(11,858)
2,716

6,136
2,794

Interest and dividend income
Interest expenses on borrowings and bonds

(53)
202

(48)
181

Share of loss (profit) of investments accounted for using
equity method(143)(2,765)

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

8,308(2,720)(268)(1)

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

4,752
6,119

(4,389)(3,888)Decrease (increase) in inventories
Increase (decrease) in trade and other payables(54)
18,299(67)
7,546

Increase (decrease) in accrued consumption taxes
Other

(167)
(395)

187
(1,177)

Subtotal

25,0044,240Interest and dividends received
Interest paid

1,501
(76)

1,548
(108)

Income taxes refund (paid)(1,767)(1,585)

Net cash provided by (used in) operating activities

24,661

4,096

Purchase of property, plant and equipment
Purchase of intangible assets(300)(1,221)(581)(1,548)Purchase of investment securities
Proceeds from sale of investment securities

(3)
846

(302)
1,644

Proceeds from dividend of investment partnership
Payments for acquisition of subsidiaries

61
–

793
(1,000)

(538)

(501)

3,337

58

(35)

(21)

2,148

(1,458)Cash flows from investing activities

Purchase of investments accounted for using equity method
Proceeds from sale of investments accounted for using equity
methodOther
Net cash provided by (used in) investing activities

10

Nine months ended(Millions of yen)
Nine months ended

December 31, 2022

December 31, 2023

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

6,560
1,100

15,64026,100

Repayments of long-term borrowings
Redemption of bonds(1,921)–(2,459)(25,000)

Repayments of lease liabilities
Capital contribution from non-controlling interests(1,300)765(1,286)499

Purchase of treasury shares
Dividends paid

(4,896)(1,647)(5,076)(1,703)Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

16

7(1,323)

6,722

4

46

Net increase (decrease) in cash and cash equivalents

25,4909,406

Cash and cash equivalents at beginning of period

43,41553,335

Cash and cash equivalents

68,90662,74011