Summary of Consolidated Financial Statements for the First Quarter of FY2020 (IFRS)
February 12, 2020
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:

Ryu Muramatsu

Director, Executive Vice President

Tel: +81-3-3464-0182

Scheduled submission date of quarterly
reportFebruary 13, 2019

Scheduled date of commencementfor dividend payment-

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial resultsYes (for institutional
investors and analysts)

URL: https://corp.gmo-pg.com/en/(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the First Quarter, FY2020(From October 1, 2019 to December 31, 2019)(1) Consolidated Financial Statements (Cumulative)

Q1 FY2020
Q1 FY2019(Percentages represent year-on-year % change)

Revenue

OperatingprofitProfit before
income taxes

Millionyen%
9,030 9.5
8,246 35.2

Millionyen%
2,080 0.2
2,076 30.2

Millionyen%
2,728 41.0
1,934 22.0

Basic earnings per
share

Diluted earnings per
share

Yen
23.51
14.67

Q1 FY2020
Q1 FY2019

Profit attributableTotal
to owners of comprehensive
parentincomeMillionMillionMillion
yen
%
yen
%
yen
%
1,754 67.1
1,729 60.2 1,989 832.9
1,050 22.9
1,079 25.4
213 △79.7
Profit

Yen
22.95
14.39

(2) Consolidated Financial Position
Total equity
Total equity
attributable to owners
Total equity
attributable to ownersof parent to totalof parent
assetsMillion yen
Million yen%
26,76725,73515.0
27,53926,494
18.9

Total assets
Million yen
171,904
139,990

Q1 FY2020
FY20192.

Dividends
Full-year dividend
End of Q1
Yen
0.00
0.00

FY2019FY2020
FY2020 (forecast)(Note 1)

3.

End of Q2

End of Q3

Yen
0.00
0.00

Revision to the most recently released dividend forecast:Year-end

Total

Yen
0.00

Yen
36.00

Yen
36.00

0.00

42.00

42.00

No

Consolidated Financial Forecast for the Fiscal Year Ending September 2020
(From October 1, 2019 to September 30, 2020)(Full year % represents previous term comparison; Interim % represents year-on-year change)

Revenue

2Q of FY 2020
(cumulative)
Full year

Profit before
Profit attributable Basic earnings
Profitincome taxes
to owners of parent per share
MillionMillion%yen%
yen % Million yen%
Yen

Operating profit

Millionyen%

Millionyen

17,116

6.9

4,363

2.5

4,122 △0.3

2,597 1.9

2,533

△1.7

34.44

36,61814.0

10,376 25.0

9,867 22.8

6,216 23.0

6,110

16.0

83.06

(Note) Revision of the most recently released financial forecast:

No

―1―

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.: Yes[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No(3) Number of shares issued (common stock)
Q1 FY2020: 74,301,000
FY 2019: 74,301,000[1] Number of shares issued at the end of the term(including treasury stock)
FY 2019: 739,281[2] Number of treasury shares at the end of the term Q1 FY2020: 739,281
Q1
FY2020:73,561,719
Q1 FY2019: 73,563,591[3] Average number of shares during the term
(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 (734,205 shares for FY2019; 734,205 shares for 1Q
FY2020.)* 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 other factors.
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 February 13, 2020. Supporting materials and a video ofthe presentation will be made available on the company's website after the event.

―2―

○ Table of contents of attachment
1. Qualitative Information on Consolidated Financial Statements for the Quarter____________________04(1) Consolidated operating results________________________________________________________04(2) Status of consolidated financial position________________________________________________08(3) Review of consolidated earnings forecasts and other forecasts____________________________09
2. Condensed consolidated Financial Statements and Major Notes_______________________________10(1) Condensed consolidated balance sheet________________________________________________10(2) Condensed consolidated statement of income and 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 condensed consolidated financial statements____________________________18② Cash and cash equivalents_______________________________________________________18③ Operating and other receivables__________________________________________________18④ Deposits to subsidiaries and affiliates______________________________________________18―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 first quarter of the cumulative consolidated fiscal
year (October 1, 2019 to December 31, 2019) as follows.
(Unit: Thousand yen)First three months of theprevious consolidated
fiscal year
(From October 1, 2018
to December 31, 2018)

First three months of thecurrent consolidated
fiscal year
(From October 1, 2019
to December 31, 2019)

Rate of change (%)

Revenue

8,246,908

9,030,314

9.5

Operating profit

2,076,207

2,080,505

0.2

Profit before income taxes

1,934,930

2,728,844

41.0

1,079,216

1,729,329

60.2

Profit attributable to ownersof parent

a. Revenue
The Group’s revenue reached to ¥9,030 mil., up by 9.5 % year-on-year. The Payment Processing Businessrevenue continued to grow thanks to the steady growth of E-Commerce (EC) market, coupled with the
expansion of the Group’s service coverage to non-EC operators. The Money Service Business (MSB) revenue
grew from the favorable trends seen in GMO Payment After Delivery transactions, a type of deferred payment
service. The Payment Enhancement Business revenue grew thanks to the growth at Macro Kiosk, the Group’s
consolidated subsidiary that provides a comprehensive service of mobile payment and mobile authenticationand notification.
Our revenue breakdown by business model is as follows.
(Unit: Thousand Yen)

Business model

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

First three months of theprevious consolidated
fiscal year
(From October 1, 2018
to December 31, 2018)

First three months of thecurrent consolidated
fiscal year
(From October 1, 2019
to December 31, 2019)

Rate of change(%)

393,654

666,57369.3

1,184,653

1,362,889

15.0

3,072,803

3,230,686

5.1

3,595,796

3,770,165

4.8

8,246,908

9,030,314

9.5

―4―

b. Operating profit
The consolidated operating profit reached ¥2,080 mil., up by 0.2% YoY. Operating profit only grew by 0.2% YoY
despite the revenue growth of 9.5% YoY due to unfavorable comps against the previous first quarter which
benefited from a one-off decline in expenses related to lower credit risks resulting from various corporate
efforts and the efforts to control expenses after this one-off expense reduction.
By segment, Payment Processing Business segment profit (operating profit) was ¥2,502 mil., up 3.0% YoY;
Money Service Business segment profit (operating profit) stood at ¥336 mil., a decline of 47.9% YoY; and,
Payment Enhancement Business recorded a segment loss (operating loss) of ¥26 mil. (previous first quarter
was a loss of ¥77mil.). For details please refer to ② Results by segment of the (1) Consolidated operating
results.
c. Profit before income taxes
Pre-tax profit reached ¥2,728 mil., up 41.0% YoY. The reason the pre-tax profit growth rate of 41.0% YoY washigher than the operating profit growth rate of 0.2% YoY, is due to gains on investment partnerships of ¥223mil.
that increased the financial income to ¥278mil. (versus the previous Q1 financial income of ¥12mil.) and equity
method investment gains of ¥427mil. (versus the previous first quarter equity method loss of ¥43mil.).

―5―

② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment

Payment Processing
Business
Revenue
Operating profit
Money Service Business
Revenue
Operating profit
Payment Enhancement
Business
Revenue
Operating profit
Adjustments
Revenue
Operating profit
Total
Revenue
Operating profit

First three months of theprevious consolidated
fiscal year
(From October 1, 2018
to December 31, 2018)

First three months of thecurrent consolidated
fiscal year
(From October 1, 2019
to December 31, 2019)

Rate of change(%)

4,737,738
2,428,285

5,363,714
2,502,263

13.2
3.0

2,014,326
645,908

2,102,490
336,6184.4△47.9

1,494,843△77,924

1,566,641△26,8214.8－－△920,062△2,532△731,555－－

8,246,908
2,076,207

9,030,314
2,080,505

9.5
0.2

a. Payment processing business
For the payment processing business, the main focus consists of online payment, recurring payment services
and, expanding the support services to financial institutions and financial service providers.
In the online payment and recurring payment domain, both the transaction volume and value has expanded
significantly at 33.4% YoY and 23.2% YoY respectively, thanks to the secular growth in EC market coupled withthe efforts to acquire large merchants and expand our services to non-EC operators. However, while theacquisitions of large new merchants trended favorably, there were few contract cancellations and revenuechanges that caused the YoY growth rate to be subdued compared to the previous term.
In the offline market, sales of payment terminals was strong thanks to the high demand for IC chip-embedded
credit card terminals on the back of amendments to the Installment Sales Act. In addition, order wins
progressed favorably in the Unattended Market such as automated payment machines and ticket machines.
As a result, segment revenues reached ¥5,363 mil., up 13.2% YoY and segment profit (operating profit) was¥2,502 mil. up 3.0% YoY.
For the Ginko Pay platform services, we are pleased to announce that Sumitomo Mitsui Banking Corporation
has adopted this service from the quarter under review. In addition, this service was selected as one of thepayment methods on TOYOTA WALLET, a smartphone e-wallet app mounted with multiple payment methods
launched on November 19, 2019 by Toyota Motor Corporation, Toyota Financial Service Corporation and Toyota
Finance Corporation.
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 tolend growth capital to merchants based on their payment and other related data; Remittance Service; and GMO
Payment After Delivery offered by the consolidated subsidiary GMO Payment Service, Inc.
In the first quarter under review, MSB topline growth was driven by favorable trends in GMO Payment After
Delivery and growth of Transaction Lending to overseas operators. On the other hand, both Remittance service
and Early Payment service posted a YoY decline from the previous term due to the impact of few merchants.

―6―

As a result, segment revenue reached ¥2,102 mil., up 4.4% YoY and segment profit (operating profit) reached¥336 mil., a decline of 47.9% YoY due to the slowdown of few services and unfavorable comps against theprevious first quarter which benefited from a one-off decline in expenses related to lower credit risks resulting
from various corporate efforts and efforts to control expense levels after this one-off expense reduction.

c. Payment Enhancement Business
Payment Enhancement Business comprises of mobile payment services (the “MPS business”) andauthentication and notification services via SMS (the “the EMS business”), provided by our consolidated
subsidiary Macro Kiosk Berhad, and the online advertising service.
In the consolidated first quarter under review, Macro Kiosk Berhad’s revenue grew 8.1% YoY, with its mainstay
EMS business growing 10.9% YoY, thanks to implementing growth acceleration measures such as expanding
the service coverage to emerging economies including Vietnam, which is positioned as a priority market in
addition to the home market of Malaysia.
As a result of the above, segment revenue was ¥1,566 mil., up 4.8 % YoY and segment loss (operating loss)
was ¥26 mil., which shrunk from the previous first quarter’s segment loss of ¥77mil.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment

Major service

Major companies of the service

Payment processing service
Payment
Processing
Business(Online billing and recurring billing)

GMO Epsilon, Inc. (consolidated subsidiary)

Payment processing service
GMO Financial Gate, Inc. (consolidated subsidiary)(Offline payment)
GMO Payment After Delivery
Money Service
Business

GMO Payment Gateway, Inc.

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

Remittance service

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

Transaction lending

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

Early Payment service
Payment

Mobile payment, authentication

Enhancement
Business

GMO Epsilon, Inc. (consolidated subsidiary)

Macro Kiosk Berhad (consolidated subsidiary)and notification―7―

(2) Status of consolidated financial position
Assets, liabilities and net assets
a. Assets
Total assets at the end of the consolidated first quarter under review increased by ¥31,913 mil. from the end of
the previous fiscal year end to reach ¥171,904 mil. This is mainly due to an increase in cash and cash
equivalents of ¥13,125 mil., an increase in advance payment of ¥6,690 mil., and an increase in accrued
revenues of ¥5,615 mil. and the increase of tangible fixed assets of ¥5,496 mil.
The Group has ¥2,800 mil. deposits to subsidiaries and affiliated companies included in the balance of cash
and cash equivalents at the end of the consolidated first quarter under review, as stated in ② Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥5,000 mil.
of deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, thetotal balance of the Group’s deposits to subsidiaries and affiliated companies stands at ¥7,800 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. As a result, this allows the Group to withdraw necessary
funds without the need to wait until the predetermined CMS repayment date, by registering a request taking
into account the designated number of days prior to when cash is needed.
b. Liabilities
Balance of liabilities at the end of the consolidated first quarter under review stood at ¥145,137 mil., anincrease of ¥32,685 mil. from the end of the previous consolidated fiscal year, mainly due to an increase inaccrued expenses of ¥5,360 mil., deposits received of ¥21,947 mil. and the increase in other financial liabilitiesof ¥5,419 mil.
c. Equity
Equity balance at the end of the consolidated first quarter under review was ¥26,767 mil., a decline of ¥772 mil.
from the end of the previous consolidated fiscal year. This was mainly due to the decline in retained earnings of¥2,648 mil. from dividend payouts, which was partially offset against recording the net profit of ¥1,754 mil. andother comprehensive profit of ¥234 mil.
② Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated first quarter under review increased by¥13,125 mil. versus the balance at the start of the term, to ¥65,139 mil. The state of cash flows over the threemonths under review is discussed below.
a. Cash flow from operating activities
Net funds provided by operating activities over the consolidated first quarter under review amounted to ¥16,985
mil., which compares to ¥9,997 mil. in the same period of the previous year. This resulted from cash inflows of(i) profit before tax of ¥2,728 mil., (ii) increase in accrued expenses of ¥5,401 mil., and (iii) increase in deposits
received of ¥21,947 mil. which offset the cash outflows of (i) increase in advances paid of ¥6,690 mil., (ii)increase in accrued revenues of ¥5,591 mil. (iii) corporate and income tax payment of ¥1,749 mil.
b. Cash flow from investing activities
Net funds used by investing activities over the consolidated first quarter under review totaled ¥963 mil., which
compares to a net fund provision of ¥316 mil. in the same period of the previous year. This is due to cash
outflow of ¥398 mil. from acquisition of intangible assets and ¥356 mil. from purchase of investment securities.
c. Cash flow from financing activities
Net funds used by financing activities over the consolidated first quarter under review was a ¥2,952 mil., which
compares to ¥2,733 mil. in the same period of the previous year, due to dividend payout of ¥2,634 mil.

―8―

(3) Review of consolidated earnings forecasts and other forecasts
The Group’s core business is positioned within the EC market in Japan, and Japan’s B2C EC for merchandizing
continues to grow very rapidly, helped by favorable externalities such as increased penetration of smartphone andlogistic/distribution industry reforms. At the same time, scope of EC market itself is expanding from the online
migration of B2B and C2C transactions. We are committed to achieving over 25% operating profit growth in themedium to long term by focusing on FinTech for the Money Service Business (MSB) segment, on IoT in the offline
market and on global expansion as well.
For the consolidated fiscal year ending September 2020, the Group forecasts across-the-board growth in all its
segments through the acquisition of large and high-growth merchants and financial institutions, making large-project
wins, and the early monetization of new services such as the next-generation platform stera and finance-related
services with Infomart Inc., despite the conservative assumptions on the revenue contribution from the likely changes
at few customers.
The earnings forecast for consolidated fiscal year ending September 30, 2020 are: revenue of ¥36,618 mil. (up14.0% YoY), operating profit ¥10,376 mil. (up 25.0% year-on-year), profit before tax ¥9,867 mil. (up 22.8% year-onyear) and profit attributable to owners of parent company ¥6,110 mil. (up 16.0% YoY).

―9―

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

Notes

End of previous consolidated
fiscal year
(September 30, 2019)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2019)

AssetsCurrent assets
Cash and cash equivalents②

52,013,447

65,139,321

Operating and other receivables③

13,663,112

13,275,785

Advances paid

32,496,862

39,187,282

Accrued revenue

21,566,393

27,181,602

207,280

184,173－

5,000,000

165,584

288,058

Inventories
Deposits to subsidiaries and affiliates④

Other financial assets
Other current assets

956,398

949,572

Total current assets

121,069,081

151,205,796

517,509

6,013,903

4,359,129

4,477,368

3,001,692

3,684,364

Non-current assets
Tangible assets
Goodwill and other intangible assets
Investments accounted for using equity
methodDeposits to subsidiaries and affiliates①

5,000,000－

Other financial assets④

4,803,089

5,383,768

Deferred Tax Assets

1,124,014

1,012,035

116,082

127,069

18,921,518

20,698,511

139,990,599

171,904,308

Other non-current assets
Total non-current assets
Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2019)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2019)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

4,688,856

5,314,125

Accrued expenses

16,118,112

21,478,860

Deposits received

50,834,374

72,781,940

15,800,400

15,800,400

108,534

445,737

1,569,616

810,865

396,631394,356

Borrowings
Other financial liabilities①

Income taxes payable, etc.
Provisions
Other current liabilities

2,229,923

2,408,987

91,746,449

119,435,273

Corporate bonds

16,745,648

16,762,875

Borrowings

1,398,700

1,198,600

Total current liabilities
Non-current liabilities

Other financial liabilities①

223,363

5,305,396

Provision

35,848

129,593

Deferred tax liabilities

85,604

79,967

Other non-current liabilities

2,215,686

2,225,368

Total non-current liabilities

20,704,851

25,701,801

112,451,301

145,137,074

Capital stock

4,712,900

4,712,900

Capital surplus

5,847,480

5,866,006

Total liabilities
EquityRetained earnings①

Treasury stock
Other items of equity
Total equity attributable to owners ofparentMinority interests①

Total equity
Total liabilities and equity―11―

15,884,444

14,894,096△1,181,846△1,181,846

1,231,655

1,444,322

26,494,633

25,735,480

1,044,664

1,031,753

27,539,297

26,767,233

139,990,599

171,904,308

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

RevenueFirst three months of previous
consolidated fiscal year
Notes
(From October 1, 2018
to December 31, 2018)
8,246,908(Unit: Thousand yen)First three months of current
consolidated fiscal year
(From October 1, 2019
to December 31, 2019)
9,030,314△3,004,380△3,181,902

5,242,528

5,848,412

39,902

32,956△3,098,993△3,720,184△107,230△80,678

2,076,207

2,080,505

Cost of revenue
Gross profit
Other income
Selling, general and administrative
expenses
Other expense
Operating profit
Financial income

12,792

278,538

Financial expense△111,034△57,602

Equity method investment gains or loss

△43,034

427,402

Profit before income taxes

1,934,930

2,728,844

Income tax expenses△884,655△974,231

Profit

1,050,275

1,754,613

Owners of parent

1,079,216

1,729,329

Non-controlling interests△28,941

25,283

Profit

1,050,275

1,754,613

Basic earnings per share (yen)

14.67

23.51

Diluted earnings per share (yen)

14.39

22.95

Profit attributable toEarnings per share―12―Condensed consolidated statement of comprehensive income
First three months of previous
consolidated fiscal year
Notes
(From October 1, 2018
to December 31, 2018)
1,050,275(Unit: Thousand yen)First three months of current
consolidated fiscal year
(From October 1, 2019
to December 31, 2019)
1,754,613△808,994△70,311

Shares of other comprehensive incomeof equity method affiliates△53,448

250,627

Total of Items that will not bereclassified 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△862,442

180,315△41,142

41,11366,544

13,27025,401

54,383△837,041

234,699

213,234

1,989,312

Owners of parent

246,188

1,968,122

Minority interests△32,953

21,190

Total

213,234

1,989,312

ProfitOther comprehensive income
Items that will not be reclassified to profit
or loss
Fair value of financial assets measured
through other comprehensive income

Total of items that will be reclassified to
profit or loss
Other comprehensive income after income
taxes
Comprehensive income

Comprehensive income attributable to―13―

(3) Condensed consolidated statement of changes in equity
First three months of the previous consolidated fiscal year (From October 1, 2018 to December 31, 2018)(Unit: Thousand yen)
Total equity
Other
CapitalCapital Retained Treasury
attributable Minority
Total
Notes
items ofstock
surplus earnings
stock
to owners interests
assetsequityof parent
Balance as of October 1,
4,712,900 5,758,448 12,875,446△491,893 1,941,305 24,796,206 1,223,811 26,020,018
2018
Cumulative effects of－－△195,085－－△195,085－△195,085
accounting changes
4,712,900 5,758,448 12,680,361△491,893 1,941,305 24,601,121 1,223,811 25,824,933
Restated Balance
ProfitOther comprehensive
incomeQuarterly comprehensive
incomePurchase of treasury
stock
Dividends
Share-based paymenttransaction
Total transactions withownersBalance as of December
31, 2018－－

1,079,216－－

1,079,216△28,941

1,050,275

－

－

－

－

△833,028△833,028△4,012△837,041－－

1,079,216－△833,028

246,188△32,953

213,234－－－△689,952－△689,952－△689,952－－ △2,136,041－－△2,136,041－ △2,136,041

－

3,617

－

－

－

3,617

－

3,617 △2,136,041△689,952－△2,822,376

10,596 △2,811,780

5,762,065 11,623,537 △1,181,846

1,108,276

22,024,933

1,201,454 23,226,387

4,712,900

10,596

14,213First three months of the current consolidated fiscal year (From October 1, 2019 to December 31, 2019)(Unit: Thousand yen)
Total
Other
equityCapitalCapital Retained Treasury
Minority
Total
Notes
items of attributablestock
surplus earnings
stock
interests
assetsequityto ownersof parent
Balance as of October 1,
4,712,900 5,847,480 15,884,444 △1,181,846 1,231,655 26,494,633 1,044,664 27,539,297
2019
Cumulative effects of①－－△97,243－－△97,243△38,971△136,214
accounting changes
4,712,900 5,847,480 15,787,200 △1,181,846 1,231,655 26,397,389 1,005,692 27,403,082
Restated Balance
ProfitOther comprehensive
incomeQuarterly comprehensive
incomeDividends
Transfer fromaccumulated othercomprehensive income toretained earnings
Changes in theinterests in controlledsubsidiary
Total transactions withownersOther increase/decrease
Total transactions withownersBalance as of December
31, 2019－－

1,729,329－－

1,729,329

25,283

1,754,613

－

－

－

－

238,792

238,792△4,093

234,699－－

1,729,329－

238,792

1,968,122

21,1901,989,312－－ △2,648,221

－

－

－

25,788－△25,788

－

－

－

－

△9,528－－－△9,528－△9,528－28,055－－△22

28,032

4,870

32,902

－

－

－

－

△313

△313

－

△313

18,526 △2,622,433－－
4,712,900

5,866,006 14,894,096 △1,181,846―14―－ △2,648,221△26,125 △2,630,031
1,444,322

25,735,480－ △2,648,221

4,870 △2,625,161
1,031,753 26,767,233

(4) Condensed consolidated statement of cash flows
First three months of previous
consolidated fiscal year
Notes
(From October 1, 2018
to December 31, 2018)(Unit: Thousand yen)First three months of current
consolidated fiscal year
(From October 1, 2019
to December 31, 2019)

1,934,930

2,728,844

258,253

356,193－54,125

Financial income and expense

98,634△220,936

Equity method investment loss
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)
Other

43,034△427,402△14,932

23,107△560,481

448,863△2,009,969△6,690,419△6,847,775△5,591,958

524,075

577,494

6,255,031

5,401,424

11,948,748

21,947,537△62,693

158,760

11,566,857

18,765,632

Net cash provided by (used in) operating
activities
Profit before income taxes
Depreciation & Amortization
Impairment Loss

SubtotalInterest and dividends received

12,792

10,699Interest paid

△11,296△41,032

Increase in Deposits△29,940－

Income taxes paid/refunded
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payment for deposit of time deposits
Purchase of property, plants andequipment
Purchase of intangible assets△1,541,289△1,749,884

9,997,123

16,985,415

689,374－△43,347△191,343△330,541△398,531

Purchase of investment securities
Proceeds from sales and redemptionof investment partnerships
Acquisition of other financial assets
Proceeds from sales of other financial
assetsOthersNet cash provided by (used in)investing activities△1,580△356,914

39,378

118,757△12,856△76,337

933

4,646

△25,334△64,094

316,026△963,816―15―

First three months of previous
consolidated fiscal year
Notes
(From October 1, 2018
to December 31, 2018)(Unit: Thousand yen)First three months of current
consolidated fiscal year
(From October 1, 2019
to December 31, 2019)

Net cash provided by (used in) financing
activities
Proceeds from short-term borrowings

299,000－

Repayment of long-term borrowings△200,100△200,100

Payment for stock buyback△689,952－△2,118,666△2,634,495△24,226△117,465△2,733,945△2,952,060△55,499

56,335

7,523,704

13,125,873②

42,033,124

52,013,447②

49,556,828

65,139,321

Dividends paid
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―16―

(5) Notes regarding the going concern assumptions
N/A

―17―

(6) Notes regarding condensed consolidated financial statements②

Cash and cash equivalents

Breakdown of cash and cash equivalents are as follows.
End of previous consolidated
fiscal year
(September 30, 2019)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2019)

Cash and cash equivalents

49,213,447

62,339,321

Deposits to subsidiaries
and affiliates

2,800,000

2,800,000

52,013,447

65,139,321

Total③ Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2019)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2019)

Accounts receivable-trade

5,663,939

6,198,647

Operating loans

7,514,754

6,982,158

590,916

196,388△106,498△101,408

13,663,112

13,275,785

Other
Allowanceaccounts

fordoubtful

Total④ Deposits to subsidiaries and affiliates

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

―18―