Summary of Consolidated Financial Statements for the Third Quarter FY2022 (IFRS)
August 8, 2022
Exchange: Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:
Scheduled submission date of quarterly
reportRyu Muramatsu

Director, Executive Vice President
Scheduled date of commencementfor dividend payment

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial results

Yes

URL: https://www.gmo-pg.com/en/corp/

August 12, 2022

Tel: +81-3-3464-0182-(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

１．Consolidated Financial Statements for the Third Quarter, FY2022(From October 1, 2021 to June 30, 2022)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue％

Mil Yen(Percentages represent year-on-year % change)

Profit before
Quarterly Profit
income taxes％

Mil Yen％

Mil Yen％

Mil Yen36,956 21.0 12,788 25.1 30,500 189.8 21,298 201.2
30,535 26.6 10,222 31.4 10,526 25.1
7,070 21.7

Q3 FY2022
Q3 FY2021

Basic earnings per
share
Q3 FY2022
Q3 FY2021

Profit attributableTotal
to owners of comprehensive
parentincome％ Mil Yen％

21,129 204.6 31,606
6,937 20.6 7,982

296.0
29.6

Mil Yen

Diluted earnings per
share

Yen

Yen

278.6093.27

275.1991.58(2) Consolidated Financial Position
Total assets
Q3 FY2022
FY2021

2.

Total equity
Ratio of total equity
attributable to owners attributable to owners ofof parent
parent to total assets

Total equity

Mil Yen

Mil Yen

Mil Yen%265,435
215,455

84,93057,82082,841
55,84531.2
25.9

Dividends
Annual dividend
End of Q1
FY2021
FY2022
FY2022 (forecast)End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00
0.00

59.00

59.00

66.00

66.00

Revision to the most recently released dividend forecast: ： No

(Note)

3.

End of Q2

Consolidated Financial Forecast for the Fiscal Year Ending September 2022
(From October 1, 2021 to September 30, 2022)(% represents year-on-year change)

Profit before
Operating profit
income taxes

Revenue
Mil Yen

Full Year
(Note )%

50,000 20.0

Mil Yen%

16,234 25.0

Mil Yen%

31,538 137.4

Revision of the most recently released financial forecast:

―1―

No

Profit attributable to Basic earnings
owners of parent
per share

Profit%Mil Yen%Yen

21,048 134.3

Mil Yen

20,860136.5

275.04

Notices:(1)

Changes of important subsidiaries during the period (change of specific subsidiaries that leads to a change in thescope of consolidation): No
Number of new subsidiaries: - (Name:); Number of excluded subsidiaries: - (Name:)(2)

Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by IFRS.: No[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No(3)

Number of shares issued (common stock)[1] Number of shares issued at the end of the term(including treasury stock)[2] Number of treasury shares at the end of the term
[3] Average number of shares during the term

Q3 FY2022: 76,557,545

FY 2021:76,557,545

Q3 FY2022: 714,996
Q3 FY2022: 75,842,549

FY 2021: 714,996
Q3 FY2021: 74,382,106(Note 1) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan trust and J-ESOP (709,705 shares for FY2021; 709,705 shares for Q3
FY2022.)* These quarterly financial statements are not subject to the quarterly review procedures.
* Notes regarding the appropriate use of financial forecast and other important notes
1. The above forecasts are outlooks based on information currently available and include various uncertain factors.
Actual performance may differ substantially from the forecasts due to changes in business conditions and otherfactors. For the assumption on which financial forecasts are based and matters to be considered in using financial
forecasts, please refer to “(3) Review of consolidated earnings forecasts and other forecasts” under “1. Qualitative
Information on Consolidated Financial Statements for the Quarter” on page 9 of the attachment.
2 Results Presentation for Investors and Analysts to be held on August 10, 2022. Supporting materials and a video ofthe presentation will be made available on the company's website after the event.

―2―

Table of contents of attachments
１．Qualitative Information on Consolidated Financial Statements for the Quarter……………..………...................

4（１）Consolidated operating results…………………………………………………………………………………….

4（２）Status of consolidated financial position……………………………………………………………………….…

8（３）Review of consolidated earnings forecasts and other forecasts…………………………………………...…..

9

2．Condensed Consolidated Financial Statements and Major Notes..……………………………………………….....

10（１）Condensed consolidated balance sheet …………………………………………………………………………

10（２）Condensed consolidated statement of income and statement of comprehensive income …………………

12（３）Condensed consolidated statement of changes in equity ……………………………………………...………

14（４）Condensed consolidated statement of cash flows ……………………………………………………...………

15（５）Notes regarding the going concern assumptions………………………………………………………………..

17（６）Notes regarding the consolidated financial statement…………………………………………………………..

17➀ Cash and cash equivalents…………………………………………………………………………………….

17② Operating and other receivables………………………………………………………………………………

17③ Deposits to subsidiaries and affiliates………………………………………………………………………...

17

―3―

1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Consolidated operating results
Forward-looking statements in the document are based on the judgement of the Group at the end of the quarter underreview.
①

Consolidated operating results
The Group announces its earnings results for the cumulative third quarter of the consolidated fiscal year 2022
(October 1, 2021 to June 30, 2022) as follows.
(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020
to June 30, 2021

Q3 FY2022(From October 1, 2021
to June 30, 2022

Rate of change (%)

Revenue

30,535,072

36,956,780

21.0

Operating profit

10,222,260

12,788,081

25.1

Profit before income taxes

10,526,081

30,500,544

189.8

6,937,696

21,129,578

204.6

Profit attributable to owners ofparenta. Revenue

The Group’s revenue reached to ¥36,956 mil, up by 21.0% Year-on-Year (YoY). The Payment Processing
Business revenue grew, led by steady growth of E-Commerce (EC) market for online billing and recurring billing
coupled with the expansion of the Group’s services in the offline domain. The Money Service Business (MSB)
revenue increased from growth of GMO Payment After Delivery transactions (a Buy Now Pay Later or BNPL
service), Early Payment service and Lending service to overseas FinTech operators. Transaction volume, whichis the sum total of online billing and recurring billing, offline payment and GMO Payment After Delivery, increased
by 37.4% YoY, transaction value increased by 40.2% YoY that led to the Payment Processing Business revenue
growing to ¥27,846 mil (up 24.0% YoY), Money Service Business (MSB) revenue was ¥8,414 mil (up 11.3% YoY)
and Payment Enhancement Business revenue was ¥716 mil (up 34.8% YoY). For details, please refer to page 5of “② Results by segment” found under “(1) Consolidated operating results” of “1. Qualitative Information on
Consolidated Financial Statements for the Quarter”.
Revenue breakdown by business model is as follows.
(Unit: Thousand Yen)
Business model

Q3 FY2021(From October 1, 2020
to June 30, 2021

Q3 FY2022(From October 1, 2021
to June 30, 2022

Rate of change(%)

Initial(Initial revenue)

3,560,338

5,329,724

49.7

Stock
(Fixed revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring service
revenue)

4,850,707

5,836,563

20.3

7,942,720

9,823,863

23.7

14,181,305

15,966,628

12.6

30,535,072

36,956,780

21.0

Total

―4―

b. Operating profit
Operating profit reached ¥12,788 mil, up by 25.1% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2022.
By segment, Payment Processing Business segment profit (operating profit) was ¥13,524 mil, up 22.4% YoY;
Money Service Business segment profit (operating profit) stood at ¥2,061 mil, up 22.0% YoY; Payment
Enhancement Business segment profit (operating operating) of ¥170 mil (up 96.2% YoY).
For details please refer to page 5 of “② Results by segment” of the “(1) Consolidated operating results” of “1.
Qualitative Information on Consolidated Financial Statements for the Quarter”.
c. Profit before income taxes
Pre-tax profit reached ¥30,500 mil, up 189.8% YoY. The reason the pre-tax profit growth rate of 189.8% YoY ishigher than the operating profit growth rate of 25.1% YoY is due to gains on foreign exchange of ¥769 mil andgains on investment partnerships of ¥426 mil that increased the financial income to ¥1,278 mil, gains on salesof affiliate accounted for using the equity method arising from the transfer of all the shares of 2C2P Pte. Ltd. of¥16,419 mil.
② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment

Q3 FY2021(From October 1, 2020
to June 30, 2021

Q3 FY2022(From October 1, 2021
to June 30, 2022

Rate of change(%)

Payment Processing Business
Revenue
Operating profit

22,454,331
11,046,570

27,846,597
13,524,683

24.0
22.4

Money Service Business
Revenue
Operating profit

7,558,425
1,689,120

8,414,516
2,061,007

11.3
22.0

531,926
86,982

716,867
170,633

34.8
96.2

Adjustments
Revenue
Operating profit (△=loss)△9,610△2,600,412△21,200△2,968,242

－
－

Total
Revenue
Operating profit

30,535,072
10,222,260

36,956,780
12,788,081

21.0
25.1

Payment Enhancement Business
Revenue
Operating profit―5―

a. Payment Processing Business
The Payment Processing Business focusses on payment processing services for online billing, recurring billing,
and offline payments, as well as expanding support services to financial institutions and financial service providers.
In the online billing and recurring billing domain, we focused our efforts to acquire large and medium-to-small
sized merchants across various industries as well as expand our services to a wide array of non-EC merchants,
given the backdrop of the steadily expanding EC market.
The impact from COVID-19 was limited during the third quarter under review as was the case in the previous
fiscal year. In the online billing and recurring billing domain, the lifting of the Quasi-State of Emergency in the
cumulative period to second quarter caused travel and ticket payments to grow from increased movement/travel
while causing a slowdown in some merchandise sectors from the easing of nesting demand. Additionally,
micropayments increased from rising adoption of cashless payment and E-commerce (EC) usage and online
payments increased in areas such as daily goods, digital content, public utilities and taxes as internet usage takes
root on the back of continued nesting demand.
In the offline domain during the third quarter under review, the transaction volume and value recovered for somemerchants primarily in the restaurant sector due to the lifting of the Quasi-State of Emergency that was issued
during the cumulative period to second quarter. In addition, segment revenues benefited from the increase ininitial revenues and transaction volume and value, due to favorable payment terminal sales driven by the
expansion of offline cashless payment market from consumers refraining from handling physical cash as a safer
means of payment as well as the continued growth since last fiscal year of payment terminal sales of stera, thenext generation payment platform. Furthermore, steady progress was made in project orders related to the
Unattended Market such as ticket machines and fare adjustment machines, which is one of the target markets.
Furthermore, growth is accelerating from the expansion of Processing Platform service, which is part of theservice to financial institutions and financial service operators.
As a result, segment revenue was ¥27,846 mil, up 24.0% YoY and segment profit (operating profit) was ¥13,524
mil up 22.4% YoY.
b. Money Service Business
Money Service Business (MSB) consists of Early Payment service to help merchants improve their cash flow byreceiving sales proceeds earlier according to the merchant’s cash cycle needs; Transaction Lending service, aloan service for merchants to lend growth capital based on payment and other related data; Lending service tooverseas FinTech operators; Remittance service; Instant Salary byGMO, a salary prepayment service, and GMO
Payment After Delivery provided by a consolidated subsidiary GMO Payment Service, Inc.
In this third quarter under review, segment revenue and profit increased from strong contribution of Early Payment
service driven by the growth in Payment Processing Business segment, as well as from Lending service tooverseas FinTech operators that made progress in securing new potential customers to generate stable revenues
going forward. However, Remittance service revenue growth decelerated despite the growth in transaction volume
and GMO Payment After Delivery, a BNPL payment method, also decelerated due to hard comps against thestrong nesting demand last year.
As a result, segment revenue reached ¥8,414 mil, up 11.3% YoY and segment profit (operating profit) reached¥2,061 mil, up 22.0% YoY.

―6―

c. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service which provides analytics andadvertisement management service based on product sales trends to support the merchants’ revenue growth,and “Medical Kakumei byGMO,” a reservation management system to enable operational efficiency at thereception counters offered exclusively to medical institutions by our consolidated subsidiary GMO Medical
Reservations Technology Co. Ltd.
GMO Medical Reservations Technology Co. Ltd. offers a smartphone-based app to make reservations, fill in
medical questionnaires, complete the reception and payment, in addition to consolidating multiple patientregistration cards on a smartphone for the medical institutions that implement this service. In the third quarter
under review, this service’ revenue increased 93.4% YoY from the heightened demand due to COVID-19. In
addition, revenues from online advertising service and SSL coupons also grew, contributing to the segment’s
revenue growth.
As a result of the above, segment revenue was ¥716 mil, up 34.8% YoY and segment profit (operating profit) was¥170 mil, up 96.2% YoY.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)
Payment processing service(Offline)

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Financial Gate, Inc. (consolidated subsidiary)
GMO Payment Service, Inc.

GMO Payment After Delivery

Remittance service
Money Service
Business

Transaction Lending
Overseas Lending

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Early Payment service
Payment(consolidated subsidiary)

Online Advertising

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Enhancement
Medical Kakumei byGMO
Business―7―

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)(2) Status of consolidated financial position①

Assets, liabilities and equity
a. Assets
Total assets at the end of the consolidated third quarter under review increased by ¥49,979 mil from the end of
the previous fiscal year end to reach ¥265,435 mil. This is mainly due to the increase in cash and cash equivalentsby ¥12,642 mil, advances paid by ¥5,043 mil, accrued revenues by ¥5,937 mil, deposits to subsidiaries andaffiliates by ¥14,500 mil, other financial assets by ¥4,783 mil and equity method investment by ¥5,220 mil.
The Group has ¥4,880 mil in deposits to subsidiaries and affiliated companies included in the balance of cash
and cash equivalents at the end of the consolidated third quarter under review, as stated in ➀ Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥16,500 milof deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, the totalbalance of the deposits to subsidiaries and affiliated companies stands at ¥21,380 mil. These deposits are GMO
Internet’s Group-wide cash on hand that is deposited under the cash management system (CMS) implemented
and managed by GMO Internet. This allows the Group to withdraw necessary funds without the need to wait until
the preset CMS repayment date, by registering a request after taking into account the number of days requiredfor processing the application.

b. Liabilities
Balance of liabilities at the end of the consolidated third quarter under review stood at ¥180,505 mil, an increaseof ¥22,869 mil from the end of the previous consolidated fiscal year. This is mainly due to an increase in accrued
expenses of ¥3,826 mil, an increase in deposits received of ¥8,152 mil, and an increase in borrowings of ¥6,141
mil. and deferred tax liabilities of ¥4,945 mil.
c. Equity
Equity balance at the end of the consolidated third quarter under review was ¥84,930 mil, an increase of ¥27,109
mil from the end of the previous consolidated fiscal year. This was mainly due to the increase from recording thequarterly profit of ¥21,298 mil and the recognition of other comprehensive income of ¥10,307 mil arising mainly
from fair value measurements of financial instruments held by associates accounted for using the equity method
and foreign currency translation difference of overseas business activities, which was partially offset by the decline
in retained earnings of ¥4,474 mil from dividend payouts.

②

Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated third quarter under review increased by¥12,642 mil versus the balance at the start of the term, to reach ¥117,166 mil. The state of cash flow over thethird quarter under review is discussed below.
a. Cash flow from operating activities
Net funds provided by operating activities during the consolidated third quarter under review amounted to ¥8,591
mil, which compares to ¥9,050 mil in net funds used in the same period of the previous year. This resulted fromcash outflows from (i) gain on sales of investment of equity method affiliate, which is taken as an adjustment itemin investment activities of ¥16,419 mil, (ii) an increase in advances paid of ¥5,043 mil, (iii) an increase in accrued
revenues of ¥5,540 mil, (iv) incomes tax payments of ¥5,210 mil, which was offset by cash inflows of (i) profit
before tax of ¥30,500 mil, (ii) increase in accrued expenses of ¥3,522 mil, and (iii) increase in deposits receivedof ¥8,146 mil.
b. Cash flow from investing activities
Net funds provided by investing activities during the consolidated third quarter under review totaled ¥1,776 mil,which compares to a net funds provided of ¥2,696 mil in the same period of the previous year. This is due to―8―

(i) cash outflows from payment into restricted deposits of ¥5,282 mil, (ii) payment into deposits to subsidiaries
and affiliated companies of ¥16,500 mil. which was offset by cash inflows from proceeds from sale of investment
securities of ¥24,360 mil.
c. Cash flow from financing activities
Net funds provided by financing activities over the consolidated third quarter under review was ¥1,087 mil, which
compares to net funds provided of ¥16,155 mil in the same period of the previous year. This is due to cash inflows
from the net increase in short term borrowings of ¥6,300 mil which was partially offset by net outflows from
dividend payouts of ¥4,471 mil.

(3) Review of consolidated earnings forecasts and other forecasts
The Group’s core business is positioned within the E-commerce (EC) market in Japan, and Japan’s B2C EC market
for consumer merchandizing continues to grow very rapidly, helped by favorable externalities such as increased
functionality of smartphones and logistic/distribution industry reforms. In addition, online migration continues toprogress solidly for payments related to daily life such as non-merchandise services, public utilities, taxes/public dues
and medical expenses, as well as online consumption taking root under the ‘new normal’ lifestyle brought about by
COVID-19. In addition, the scope of the EC market itself is expanding driven by the online migration of B2B and C2C
transactions. The consolidated subsidiary GMO Financial Gate, Inc., which addresses the offline market, is contributing
to expand the Group’s scope of business by capturing business opportunities emerging from the acceleration of
cashless adoption of various payment methods, including credit cards, in the offline domain.
The business environment for the fiscal year ending September 2022 is faced with lingering uncertainty over private
consumption, caused by the weakening yen and surging raw material costs, although vaccination rates for COVID-19
continues to progress and movement/travel restrictions are eased. Despite this, GMO-PG group’s business ischaracterized by its resiliency to macro-economic fluctuations due to the diverse exposure to merchants across various
industries, favorable trends in cashless penetration, online migration of payments and by expanding businesses that
respond to corporate needs for cost reductions and business model transformation through DX (Digital Transformation).
Hence, the impact to the Group’s revenues is believed to be minimal as of this writing. Furthermore, revenue expansion
is expected in all reportable segments from acquiring large and high-growth merchants, deepening penetration into
financial institutions, winning orders for large projects, revenue expansion from priority initiatives such as DX platforms
and the next generation payment platform stera.
Note that the Company has resolved at the Board meeting held on April 18, 2002, to transfer all of the shares of its
equity method affiliate 2C2P Pte. Ltd. owned by the consolidated subsidiary GMO-Z.COM PAYMENT GATEWAY PTE.
LTD. As disclosed in the “Notice Regarding Change in Equity Method Affiliate, Gain on Sale from Transfer of Share,
and Revision to Financial Earnings Forecast” released on the same date, the financial earnings forecast for the fiscal
year ending September 2022 that was initially disclosed on November 11, 2021, have been revised. Due to the transferof shares, the third quarter of the fiscal year ending September 2022 recorded a gain on sales from the transfer ofshares of an equity method investment of ¥16,419 mil. The revised consolidated earnings forecast for the fiscal year
ending September 2022 is revenue ¥50,000 mil (up 20.0% YoY), operating profit of ¥16,234 mil (up 25.0% YoY), profit
before income taxes of ¥31,538 mil (up 137.4% YoY), profit of ¥21,048 mil (up 134.3% YoY) and profit attributable toowners of parent of ¥20,860 mil (up 136.5% YoY).

―9―

2. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet

Notes

End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

AssetsCurrent assets
Cash and cash equivalents①

104,523,965

117,166,267

Operating and other receivables②

10,308,474

12,794,597

Advances paid

45,321,043

50,364,515

Accrued revenue

24,893,665

30,830,755

Inventories

1,664,548

1,549,209

2,000,000

16,500,000

Other financial assets

455,403

6,006,407

Other current assets

335,983

533,834

Total current assets

189,503,084

235,745,586

Property, plant and equipment

3,948,522

3,594,892

Goodwill and other intangible assets
Investments accounted for using equity
methodOperating and other receivables

5,521,782

6,474,650

4,593,784

9,814,158

4,231,100

3,386,455

Other financial assets

6,005,805

5,238,034

Deferred Tax Assets

1,529,043

1,048,979

Deposits to subsidiaries and affiliates③

Non-current assets②

Other non-current assets

122,769

132,492

Total non-current assets

25,952,808

29,689,664

215,455,892

265,435,251

Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

5,230,945

5,125,209

Accrued expenses

20,537,297

24,364,179

Deposits received

84,593,904

92,746,340

Borrowings

15,138,420

21,300,000

Other financial liabilities

621,363

612,062

Income taxes payable, etc.

2,602,652

3,842,531

Provisions

327,157

320,230

Other current liabilities

3,662,794

2,780,744

Total current liabilities

132,714,534

151,091,299

19,593,627

19,657,209

Non-current liabilities
Corporate bonds
Borrowings

20,095－2,889,479

2,441,827

Provisions

130,180

130,432

Deferred tax liabilities

78,1485,023,228

Other financial liabilities

Other non-current liabilities

2,209,447

2,161,252

Total non-current liabilities

24,920,978

29,413,950

Total liabilities

157,635,512

180,505,250

Capital stock

13,323,135

13,323,135

Capital surplus

15,191,927

15,234,175

Retained earnings

26,546,151

46,434,344

Treasury stock△1,152,444△1,153,163

EquityOther items of equity
Total equity attributable toowners of parent
Non-controlling interests

1,937,175

9,003,482

55,845,946

82,841,974

1,974,433

2,088,026

Total equity

57,820,379

84,930,000

215,455,892

265,435,251

Total liabilities and equity―11―(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes(Unit: Thousand yen)
Q3 FY2022(From October 1, 2021
to June 30, 2022)

Q3 FY2021(From October 1, 2020
to June 30, 2021)

Revenue

30,535,072

36,956,780

6,189,736

6,834,040

Cost of revenue△9,586,807△12,175,610

Gross profit

20,948,264

24,781,170

165,685

192,582△10,862,189△12,144,137△29,499△41,532

10,222,260

12,788,081(of which, interest income※)

Other income
Selling, general and administrative
expenses
Other expense
Operating profit
Financial income

377,986

1,278,938

Financial expense△146,510△169,601

72,344

183,852－

16,419,272

Equity method investment gains or loss
Gain from sale of equity method investment
Profit before income taxes

10,526,081

30,500,544

Income tax expenses△3,455,765△9,201,545

7,070,315

21,298,999

6,937,696

21,129,578

132,618

169,420

7,070,315

21,298,999

Basic earnings per share

93.27

278.60

Diluted earnings per share

91.58

275.19Quarterly profit
Quarterly profit attributable to
Owners of parent
Non-controlling interests
Quarterly Profit
Earnings per share (Yen/share)（※）The figure present the interest income calculated using the effective interest method as per IFRS 9 Financial
Instruments.

―12―

Condensed consolidated statement of comprehensive income

Notes

Q3 FY2021(From October 1, 2020
to June 30, 2021)

Quarterly Profit
Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Shares of other comprehensive incomeof equity method affiliates
Total of Items that will not be reclassified
to profit or loss
Items that will be reclassified to profit orloss
Exchange differences on translation offoreign operations
Shares of other comprehensive incomeof equity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand yen)
Q3 FY2022(From October 1, 2021
to June 30, 2022)

7,070,315

21,298,999

46,904

643,729537,686

5,475,394

584,591

6,119,124

247,787

4,374,272

79,571△186,034

327,358

4,188,238

911,949

10,307,362

7,982,265

31,606,361

7,848,763

31,429,608

133,502

176,753

7,982,265

31,606,361

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―13―

(3) Condensed consolidated statement of changes in equity
Third quarter of the previous consolidated fiscal year (From October 1, 2020 to June 30, 2021)
CapitalNotes
stockBalance as of October 1,
2020
Quarterly Profit
Other
comprehensive
incomeQuarterly comprehensive
incomePurchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Issuance of convertiblebond-type bonds withstock acquisition rights
Conversion of convertiblebond-type bonds withstock acquisition rights
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Change in associates’’interest
incontrolledsubsidiary
Total transactions withownersBalance as of June 30,
2021

4,712,900

CapitalsurplusRetained Treasury
earnings
stock5,675,561 20,725,465 △1,149,341

Total equity
Other
Nonattributable
items ofcontrollingto owners
equityinterestsof parent

Total
Equity1,769,560

31,734,145

1,719,369

33,453,515－－

6,937,696－－

6,937,696

132,618

7,070,315

－

－

－

－

911,066

911,066

883

911,949－－

6,937,696－

911,066

7,848,763

133,502

7,982,265－－－△2,454－△2,454－△2,454－－ △3,826,483－－ △3,826,483

－

－

－

－

－

－

△63,671△63,671－

1,006,926－－－

1,006,926－

1,006,926

8,610,235

8,430,623－－－

17,040,858－

17,040,858－－

428,809－△428,809

－

－

－

－

77,669－－△39

77,629－77,629－△26,969－－－△26,969

129,142

102,173－

12,893－－－

12,893－

12,8939,501,143 △3,397,673△2,454△428,849

14,282,401

65,471

14,347,872

13,323,135 15,176,704 24,265,489 △1,151,796

2,251,776

53,865,309

1,918,343

55,783,653

8,610,235

Third quarter of the current consolidated fiscal year (From October 1, 2021 to June 30, 2022)
CapitalNotes
stockBalance as of October 1,
2021
Quarterly Profit
Other comprehensive
incomeQuarterly comprehensive
incomeDividends
Dividends paid to noncontrolling interests
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Other Increase/Decrease
Total transactions withownersBalance as of June 30,2022(Unit: Thousand yen)

CapitalsurplusRetained Treasury
earnings
stock

13,323,135 15,191,927 26,546,151 △1,152,444－ △3,826,483(Unit: Thousand yen)

Total equity
Other
Nonattributable
items ofcontrolling Total Equity
to owners
equityinterestsof parent
1,937,175

55,845,946

1,974,433

57,820,379－－ 21,129,578－－

21,129,578

169,420

21,298,999

－

－

－

－ 10,300,030

10,300,030

7,332

10,307,362－－ 21,129,578－ 10,300,030

31,429,608

176,753

31,606,361－－ △4,474,710－－ △4,474,710－△4,474,710

－

－

－

－

－

－

△89,232△89,232－－

3,233,324－ △3,233,324

－

－

－

－

91,350－－△399

90,951－

90,951－△49,103－－－△49,103

26,072△23,030

－

－

－

△718

－

△718

－

△718

△718 △3,233,723 △4,433,581△63,160△4,496,741

2,088,026

84,930,000－

42,247 △1,241,385

13,323,135 15,234,175 46,434,344 △1,153,163―14―

9,003,482

82,841,974

(4) Condensed consolidated statement of cash flows

Notes(Unit: Thousand yen)
Q3 FY2022(From October 1, 2021
to June 30, 2022)

Q3 FY2021(From October 1, 2020
to June 30, 2021)

Net cash provided by (used in) operating
activities
Profit before income taxes

10,526,081

30,500,544

1,387,859

1,571,024△231,476△1,109,337△72,344△183,852－△16,419,272

332,434

115,338△233,425△714,062△12,261,272△5,043,471△1,292,995△5,540,797

189,890△107,745

1,120,577

3,522,920△3,750,323

8,146,355△238,224△856,124

187,035△81,006△4,336,183

13,800,514

17,54770,997△101,009△68,811

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payment into restricted deposit
Purchase of property, plants andequipment
Purchase of intangible assets△4,631,067△5,210,966△9,050,713

8,591,735－△5,282,800△205,535△201,770△1,198,103△1,696,021

Purchase of investment securities
Proceeds from sale of investment
securities
Purchase of investments accounted
for using equity method
Proceeds from redemption of
investments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from w/drawal of deposits
to subsidiaries and affiliates
Purchase of other financial assets
Proceeds from sales of otherfinancial assets
Purchase of shares in subsidiary
resulting in change in scope of
consolidation
OthersNet cash provided by (used in)investing activities△102,954△454,557

489,922

24,360,517－△500,000

136,132

286,573△2,000,000△16,500,000

5,000,000

2,000,000△158△30,894

700,555

7,561△108,566－△14,993△212,293

2,696,297

1,776,315

Depreciation & Amortization
Financial income and expense(△=gain)
Equity method investment gain/loss(△=gain)
Gain on sale of equity method
investment
Increase/decrease in inventories(△=increase)
Increase/decrease in operating andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
Accrued revenues (△=increase)
In/Decrease in operating payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current liabilities(△=decrease)
Other
SubtotalInterest and dividends received
Interest paid

―15―

Notes(Unit: Thousand yen)
Q3 FY2022(From October 1, 2021
to June 30, 2022)

Q3 FY2021(From October 1, 2020
to June 30, 2021)

Net cash provided by (used in) financing
activities
In/Decrease in short-term borrowings(△=decrease)
Repayment of long-term borrowings－

6,300,000△602,055△158,515

Proceeds from the issuance of bonds

21,057,055－

Dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
Other
Net cash provided by (used in)financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period△3,825,963△4,471,420△63,493△89,232

122,41325,080△532,735△518,113

16,155,221

1,087,798

77,1291,186,453

9,877,935

12,642,302①

95,830,807

104,523,965①

105,708,743

117,166,267―16―

(5) Notes regarding the going concern assumptions
N/A(6) Notes regarding condensed consolidated financial statements①

Cash and cash equivalents
Breakdown of cash and cash equivalents are as follows.
End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

Cash and cash equivalents

81,593,965

112,286,267

Deposits toand affiliates

22,930,000

4,880,000

104,523,965

117,166,267

subsidiaries

Total
②

Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

Trade and other receivables

5,740,246

6,266,445

Operating loans

8,846,384

9,914,383

92,408159,134△139,464△158,910

Total

14,539,574

16,181,053

Current assets

10,308,474

12,794,597

Non-current assets

4,231,100

3,386,455

14,539,574

16,181,053

Other
Allowanceaccounts

fordoubtful

Total③

Deposits to subsidiaries and affiliates
Our deposits to subsidiaries and affiliates are the deposits under the CMS (cash management
system) of GMO Internet Group.

―17―