Summary of Consolidated Financial Statements for Q1 FY2024 (IFRS)
February 13, 2024
GMO Payment Gateway, Inc.
Exchange: Tokyo Stock Exchange
3769
URL: https://www.gmo-pg.com/en/corp/
Issei Ainoura
President & Chief Executive Officer
Ryu Muramatsu
Director, Executive Vice President
Tel: +81-3-3464-0182
Scheduled date of commencement
February 13, 2024
for dividend payment

Name of listed company:
Stock code:
Representative:
Contact:
Scheduled submission dateof securities report

Supplemental materials prepared for financial results:

Yes

Information meeting arranged related to financial results:

Yes(for institutional investors and analysts)(Amounts rounded down to the nearest million yen)

１． Consolidated Financial Statements for Q1 FY2024 (From October 1, 2023 to December 31, 2023)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year change)
OperatingprofitRevenue％ Mil Yen

Mil Yen

17,785 20.1
14,813 24.9

Q1 FY2024
Q1 FY2023％ Mil Yen

5,830 14.5
5,090 23.7

Basic earnings per
share
Q1 FY2024
Q1 FY2023

Profit before
income taxes

Profit attributableTotal
to owners of comprehensive
parentincomeProfit％ Mil Yen

5,919 26.3
4,687 9.0％

Mil Yen

3,601 42.7
2,523 △2.3

3,447
2,447

％ Mil Yen％

40.9 1,288
70.3
756 △71.5△2.8

Diluted earnings per
share

Yen

Yen

45.46
32.27

44.99
31.97

(2) Consolidated Financial Position
Total assets
Q1 FY2024
FY2023

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%

326,029292,346

89,334
94,80486,817
92,27426.6
31.6

２． Dividends
Annual dividend
End of Q1
FY2023
FY2024FY2024 (forecast)(Note)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00

0.00

89.00

89.00

0.00

103.00103.000.00

Revision to the most recently released dividend forecast:No

３．Consolidated Financial Forecast for the Fiscal Year Ending September 2024
(From October 1, 2023 to September 30, 2024)(% represents year-on-year change)

Revenue
Q2 of FY2024(cumulative)
FY2024(Note)

Operating profit

Profit before
income taxes

Profit attributable
Basic earnings
to owners ofper share
parentProfitMil Yen%

Mil Yen%

Mil Yen%

Mil Yen%

Mil Yen%Yen

35,341

16.0

12,47020.5

11,970

21.5

7,732

22.9

7,495

22.3

98.83

73,28616.1

25,00023.1

23,90415.8

15,961

15.5

15,52315.2

204.68

Revision to the most recently released dividend 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.: 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

Q1 FY2024: 76,557,545

FY 2023: 76,557,545

Q1 FY2024:
715,103
Q1 FY2024: 75,842,471

FY 2023: 715,071
Q1 FY2023: 75,842,509(Note) 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 FY2023; 709,705 shares for Q1
FY2024.)※※

These financial statements are not subject to the 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) Earnings Forecast” under “1. Qualitative Information on Consolidated Financial
Statements for the Quarter” on page 9 of the attachment.
Results Presentation for investors and analysts to be held on February 14, 2024. Supporting materials and a videoof the presentation will be made available promptly on the company's website after the event.

2.

―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）Earnings 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 condensed consolidated financial statement………………………………………….…......

17➀

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

17➁

Trade 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 GMO Payment Gateway, Inc. (GMOPG or the Company) and its consolidated subsidiaries at the end of the quarter under review.
①

Consolidated operating results
GMO-PG and its consolidated subsidiaries announces its earnings results for the cumulative first quarter of theconsolidated fiscal year 2024 (October 1, 2023 to December 31, 2023) as follows.
(Unit: Thousand Yen)
Q1 FY2023(From October 1, 2022
to December 31, 2022)

Q1 FY2024(From October 1, 2023
to December 31, 2023)

Rate of change (%)

Revenue

14,813,246

17,785,985

20.1

Operating profit

5,090,188

5,830,512

14.5

Profit before income taxes

4,687,236

5,919,417

26.3

2,447,255

3,447,714

40.9

Profit attributable to owners ofparentａ. Revenue

Revenue reached ¥17,785 mil, up 20.1% YoY. The transaction volume and value, which is the sum total of online
billing, recurring billing, offline payment and GMO Payment After Delivery, increased by 20.9% YoY and by 23.7%
YoY, respectively. As a result, the Payment Processing Business revenue reached ¥13,468 mil (up 20.1% YoY),
Money Service Business (MSB) revenue was ¥4,018 mil (up 19.7% YoY) and Payment Enhancement Businessrevenue was ¥324 mil (up 31.6% YoY). For details, please refer to page 5 of “② Results by segment” foundunder “(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

Q1 FY2023(From October 1, 2022
to December 31, 2022)

Q1 FY2024(From October 1, 2023
to December 31, 2023)

Rate of change(%)

Initial(Initial revenue)

2,260,404

2,984,134

32.0

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

2,237,931

2,719,986

21.5

4,257,285

5,093,307

19.6

6,057,624

6,988,556

15.4

Total

14,813,246

17,785,985

20.1

―4―

ｂ. Operating profit
Operating profit reached ¥5,830 mil, up by 14.5% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2024 (FY2024).
By segment, Payment Processing Business segment profit (operating profit) was ¥5,951 mil, up 12.6% YoY;
Money Service Business segment profit (operating profit) stood at ¥800 mil, up 30.1% YoY; Payment
Enhancement Business segment profit (operating profit) of ¥92 mil (up 124.3% YoY). For details, please refer topage 5 of “② Results by segment” found under “(1) Consolidated operating results” of “1. Qualitative Information
on Consolidated Financial Statements for the Quarter”.
ｃ. Profit before income taxes
Profit before income taxes reached ¥5,919 mil, up 26.3% YoY. The reason for the first quarter pre-tax profit toincrease by 26.3% YoY compared to the operating profit growth rate of 14.5% YoY is due to recording financial
expenses of ¥614 mil, including foreign currency loss of ¥457 mil, in same period of the previous fiscal year.
②

Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand Yen)
Segment
Payment Processing Business
Revenue
Segment profit (△=loss)

Q1 FY2023(From October 1, 2022
to December 31, 2022)

Q1 FY2024(From October 1, 2023
to December 31, 2023)

Rate of change(%)

11,215,710
5,282,917

13,468,071
5,951,048

20.1
12.6

3,356,203
615,450

4,018,390
800,493

19.7
30.1

Money Service Business
Revenue
Segment profit (△=loss)
Payment Enhancement
Business
Revenue
Segment profit (△=loss)
Adjustments
Revenue
Segment profit (△=loss)

246,279
41,202

324,006
92,41431.6
124.3△4,947△849,382△24,482△1,013,445

－
－

Total
Revenue
Segment profit (△=loss)

14,813,246
5,090,188

17,785,985
5,830,512

20.1
14.5

―5―

ａ. Payment Processing Business
The Payment Processing Business focusses on expanding payment processing services for online billing,recurring billing, and offline payments, as well as providing Banking as a Service (BaaS) support to financial
institutions and business operators. In the online billing and recurring billing domain, we focused our efforts toacquire large and medium-to-small sized merchants across various industries as well as expand our services toa wide array of non-EC merchants, given the backdrop of the steadily expanding E-Commerce (EC) market.
In the online billing and recurring billing domains for the quarter under review, online payment revenue grewthanks to increase in the non-merchandise sectors such as digital content, public dues/taxes and further adoptionof online payments by new industries given the heightened demand for digital transformation (DX), despite
headwinds from government measures to mitigate impact of rapid economic change and electricity tariff reductionthat adversely affected transaction value. In the merchandise sectors, daily household goods and food andbeverage sector increased, although small-sized merchants continue to be negatively affected due to the shift
towards offline consumption.
In the offline domain during the quarter under review, initial revenue benefited from the steady sales of payment
terminals led by ‘stera’ and the continuing high level of cashless demand at small-to-medium restaurant operators,
travel and accommodation related sectors given the backdrop of inbound consumption. In addition, stock, feeand spread revenues also increased from the stable increase in operating terminals, driven in turn by the
expansion in year-end consumption and the likelihood of contribution from inbound consumption due to theincrease in foreign tourists.
Furthermore, in the Banking as a Service (BaaS) service, processing platform service revenue increased fromthe revenue contribution of a large-scale project commencing this quarter, given the backdrop of expanding DX
needs and cashless migration of payments by financial institutions and business operators.
As a result, segment revenue reached ¥13,468 mil, up 20.1% YoY, however, segment profit (operating profit)
was ¥5,951 mil, up 12.6% YoY due to the higher SG&A expense-to-revenue ratio caused by an increase inpersonnel costs.
ｂ. Money Service Business
Money Service Business (MSB) consists of Early Payment service to help merchants improve their cash flow;
Transaction Lending service, a loan service for merchants; Lending service to overseas FinTech operators;
Remittance service; Instant Salary byGMO, a salary prepayment service, and GMO Payment After Delivery
provided by the consolidated subsidiary GMO Payment Service, Inc.
During the quarter under review, revenue for Payment After Delivery service increased from the acquisition oflarge merchants despite the hard comps from the cycling through of commission rate revisions in the previous
fiscal year. Also, loan balance grew 59.7% YoY for lending service to overseas FinTech operators, particularly inNorth America and India, which also contributed to segment revenue growth. Furthermore, the number ofcontracts grew steadily for Instant Salary byGMO.
As a result, segment revenue reached ¥4,018 mil, up 19.7% YoY and segment profit (operating profit) was ¥800
mil, an increase of 30.1% YoY thanks to controlling credit costs for Payment After Delivery service and the growthin lending service to overseas FinTech operators.

―6―

ｃ. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service to support the revenue growth atmerchants the Group transacts with, and “Medical Kakumei byGMO,” a reservation management system
exclusively for medical institutions to enable operational efficiency at reception counters, provided by the
consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
In the quarter under review, demand increased for services offered by GMO Medical Reservation Technology
Co. Ltd., such as smartphone-based app to make reservations, fill out medical questionnaires, complete
reception and payment as well as to consolidate multiple patient registration cards from medical institutions on
the smartphone, resulting in revenue growth of 76.2% YoY. In addition, online advertising revenue also increased.
As a result of the above, segment revenue was ¥324 mil, up 31.6% YoY and segment profit (operating profit)
was ¥92 mil, up 124.3% YoY.
The table below shows the companies providing the various businesses/services by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)

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

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

GMO Payment Service, Inc.
(consolidated subsidiary)

Remittance service
Money Service
Business

Transaction Lending
Overseas Lending

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

Early Payment service

Payment

GMO Payment Gateway, Inc.

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

Instant Salary byGMO

GMO Payment Gateway, Inc.

Online Advertising service

GMO Payment Gateway, Inc.

Enhancement
Medical Kakumei byGMO

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)Business―7―

（２）Status of consolidated financial position➀

Assets, liabilities and equity
ａ. Assets
Total assets at the end of the consolidated first quarter increased by ¥33,682 mil from the end of the previous
fiscal year to reach ¥326,029 mil. This is mainly due to the increase in cash and cash equivalents of ¥21,934 mil,trade and other receivables of ¥3,246 mil, advances paid of ¥2,681 mil, accrued revenues of ¥8,665 mil,inventories of ¥713 mil and goodwill and intangible assets by ¥770 mil., despite the decline in deposits to
subsidiaries and affiliated companies of ¥5,300 mil.
ｂ. Liabilities
Balance of liabilities at the end of the consolidated first quarter under review stood at ¥236,694 mil, an increaseof ¥39,152 mil from the end of the previous consolidated fiscal year. This is mainly due to the increase in tradeand other payables of ¥1,872 mil, accrued expenses of ¥9,660 mil, deposits received of ¥28,382 mil andborrowings of ¥4,310 mil., despite the decrease in income tax payables of ¥5,496 mil.
ｃ. Equity
Equity balance at the end of the consolidated first quarter under review was ¥89,334 mil, a decrease of ¥5,470
mil from the end of the previous consolidated fiscal year. This was mainly due to the decrease in othercomprehensive income of ¥2,313 mil and retained earnings for dividend payment of ¥6,749 mil. despite theincrease in profit of ¥3,601 mil.

③

Consolidated cash flow
Cash and cash equivalents (“funds”) at the end of the consolidated first quarter under review increased by¥21,934 mil compared to the balance at the start of the term, to reach ¥155,592 mil. The state of cash flows overthe first quarter under review is discussed below.
ａ.Cash flow from operating activities
Net funds provided by operating activities during the consolidated first quarter under review amounted to ¥22,314
mil, which compares to ¥16,173 mil in net funds acquired in the same period of the previous year. This resulted
from cash outflows from (i) increase in trade and other receivables of ¥3,876 mil, (ii) an increase in advances
paid of ¥2,681 mil, (iii) an increase in accrued revenues of ¥8,666 mil, (iv) income tax payments of ¥7,810 mil,which was offset by cash inflows of (i) profit before income tax of ¥5,919 mil, (ii) increase in trade and otherpayables of ¥1,873 mil, (iii) increase in accrued expenses of ¥9,458 mil, (iv) increase in deposits received of¥28,377 mil.
ｂ. Cash flow from investing activities
Net funds provided by investing activities during the consolidated first quarter under review totaled ¥3,341 mil,compared to the net funds acquired of ¥8,288 mil during the same period of the previous year. This resulted fromcash outflows from (i) purchase of intangible assets of ¥1,101 mil, (ii) purchase of investment securities of ¥732
mil and (iii) purchase of investments accounted for using equity method of ¥200 mil, which was offset by cash
inflows from withdrawal of deposits to subsidiaries and affiliated companies of ¥5,300 mil.
ｃ. Cash flow from financing activities
Net funds used by financing activities over the consolidated first quarter under review was ¥2,771 mil which
compares to net funds used of ¥7,378 mil during the same period of the previous year. This is mainly due to cash
inflows from net increase in short term borrowings of ¥3,900 mil which was offset by cash outflows from dividend
payouts of ¥6,715 mil.

―8―

（３）Earnings forecast
GMO-PG and its consolidated subsidiaries are positioned primarily within the E-Commerce (EC) market, and thecurrent B2C EC market for consumer merchandise is expected to grow over the medium-to-long term despite thetemporary sluggishness, helped by favorable externalities such as logistics industry reforms leading to increased
usage by consumers. The non-merchandise domain, such as services and sectors closely related to daily life such as
public utilities, taxes/public dues and medical expenses is expected to continue its high growth from the solid
progress in online migration of payments. In addition, the scope of the EC market itself is expanding driven by the
online migration of inter-company transactions (B2B) and inter-consumer transactions (C2C).
The offline domain, addressed by the consolidated subsidiary GMO Financial Gate, Inc, is undergoing an
acceleration in cashless adoption of various payment methods including credit cards. This is leading to new business
opportunities as well as to expand the scope of businesses for GMO-PG and its consolidated subsidiaries.
The business environment for the fiscal year ending September 2024 (FY2024) faces continued uncertainty overprivate consumption caused by uncertainties over the global state of affairs leading to volatile capital markets and thedecline in real wages, despite positive effects from the normalization of economic activities, recovery of inbound(foreign tourists) consumption and rising momentum for wage increases by corporates. This is expected to have anegative impact on online payment for GMO-PG and its consolidated subsidiaries in the near term. Given thisbusiness environment, we will work to strengthen the business foundation to continue to grow operating profit at acompound average growth rate (CAGR) of 25% by pursuing the priority initiatives such as acquiring large-scale,growth-oriented merchants and large-scale projects, industry-specific DX platforms, BaaS support services tofinancial institutions and business operators and the next generation payment platform of ‘stera’.
The consolidated earnings forecast for FY2024 is revenue ¥73,286 mil (up 16.1% YoY), operating profit of ¥25,000
mil (up 23.1% YoY), profit before income taxes of ¥23,904 mil (up 15.8% YoY) and profit of ¥15,961 mil (up 15.5%
YoY) and profit attributable to owners of parent of ¥15,523 mil (up 15.2% YoY).

―9―

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

End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2023)

AssetsCurrent assets
Cash and cash equivalents①

133,658,153

155,592,661

Trade and other receivables②

18,953,746

20,068,350

Advances paid

63,387,197

66,068,313

Accrued revenue

33,395,131

42,060,873

Inventories

2,405,040

3,118,342

Deposits to subsidiaries and affiliates

5,300,000－

Other financial assets

650,307

708,108

Other current assets

717,719

899,337

Total current assets

258,467,295

288,515,987③

Non-current assets
Property, plant and equipment

3,353,504

4,040,177

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

9,310,325

10,081,100

9,194,822

9,018,702

3,622,301

5,753,756

Other financial assets

6,615,112

6,844,334

Deferred Tax Assets②

1,700,228

1,706,260

Other non-current assets

83,227

68,939Total non-current assets

33,879,522

37,513,271

292,346,818

326,029,258

Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2023)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

6,555,211

8,427,589

Accrued expenses

25,371,033

35,031,988

Deposits received

97,231,797

125,613,855

Borrowings

20,395,000

24,340,000

Other financial liabilities

388,765

678,652

Income taxes payable, etc.

7,888,647

2,392,502

Provisions

320,963

316,063

Other current liabilities

5,138,950

4,914,789

Total current liabilities

163,290,369

201,715,442

Corporate bonds

19,763,730

19,785,108

Borrowings

8,955,000

9,320,000

Other financial liabilities

2,128,594

2,531,257

130,854

130,939

1,221,695

1,155,936

Non-current liabilities

Provisions
Deferred tax liabilities
Other non-current liabilities

2,051,729

2,056,009

Total non-current liabilities

34,251,605

34,979,251

197,541,975

236,694,693

Capital stock

13,323,135

13,323,135

Capital surplus

15,247,534

15,213,200

Retained earnings

50,768,961

47,656,713

Treasury stock△1,153,329△1,153,620

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

14,088,034

11,778,511

92,274,336

86,817,939

2,530,506

2,516,625

Total equity

94,804,843

89,334,565

292,346,818

326,029,258

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

Notes

Q1 FY2023(From October 1, 2022
to December 31, 2022)

Revenue(Unit: Thousand Yen)
Q1 FY2024(From October 1, 2023
to December 31, 2023)

14,813,246

17,785,985

2,809,287

3,422,923△5,022,243△6,238,571

9,791,002

11,547,413

65,34182,740△4,743,391△5,799,583△22,765△58

Operating profit

5,090,188

5,830,512

Financial income

233,831

295,077

Financial expense△614,509△233,138

Equity method investment gains or loss

△22,274

26,966

Profit before income taxes

4,687,236

5,919,417△2,163,681△2,317,437

2,523,554

3,601,980

2,447,255

3,447,714

76,298154,265

2,523,554

3,601,980

Basic earnings per share

32.27

45.46

Diluted earnings per share

31.97

44.99

(of which, interest income※)
Cost of revenue
Gross profit
Other income
Selling, general and administrative
expenses
Other expense

Income tax expenses
Quarterly 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

Q1 FY2023(From October 1, 2022
to December 31, 2022)

Quarterly Profit(Unit: Thousand Yen)
Q1 FY2024(From October 1, 2023
to December 31, 2023)

2,523,554

3,601,980

89,515△382,450△159,690△291,012△70,175△673,463△1,696,721△1,640,153△1,696,721△1,640,153△1,766,897△2,313,616

756,657

1,288,363

Owners of parent

686,878

1,139,004

Non-controlling interests

69,778149,358

Total

756,657

1,288,363

Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Share of other comprehensive income ofequity 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
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 quarter of the previous consolidated fiscal year (from October 1, 2022 to December 31, 2022)

Notes

Balance as of October 1,
2022
Quarterly Profit
Other
comprehensive
incomeQuarterly comprehensive
incomePurchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of December
31, 2022

Capitalstock

CapitalsurplusRetainedearnings

13,323,135 15,272,474

Treasurystock(Unit: Thousand Yen)
Total equity NonOther
attributable controlli
items of
Total Equity
to owners ofng
equityparentinterests

49,424,496 △1,152,444 10,255,198

87,122,860 2,137,790

89,260,651－

2,447,255

2,523,554－－

2,447,255－－－－ △1,760,377△1,760,377－－

2,447,255－ △1,760,377

686,878

69,778756,657

－

－

－

△884

－

△884

－

△884

－

－ △12,134,807－－△12,134,807

－

－

－

－

－

－

11,554－－－

11,554－

11,554－△66,361－－－△66,361

117,135

50,774－－△4,369－－△4,369－△4,369△54,806 △12,139,177

△884

－

△12,194,869

39,732,575 △1,153,329

8,494,820－

13,323,135 15,217,668－

76,298△6,520 △1,766,897－ △12,134,807－ △102,856△102,856

14,279 △12,180,590

75,614,870 2,221,848

77,836,718

First quarter of the current consolidated fiscal year (from October 1, 2023 to December 31, 2023)

Notes

Balance as of October 1,
2023
Quarterly Profit
Other comprehensive
incomeQuarterlycomprehensive income
Purchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of December
31, 2023

Capitalstock

Capitalsurplus13,323,135 15,247,534

Retainedearnings

Treasurystock(Unit: Thousand Yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent

50,768,961 △1,153,329 14,088,034

92,274,336

2,530,506

94,804,843

3,447,714

154,265

3,601,980－－

3,447,714

－

－

－

－

－

3,447,714

－

－

－

△291

－

－ △6,749,980－－ △6,749,980

－

－

－

－

－

－

△165,221△165,221－△36,934－－－△36,934－△36,934

－

2,600

－

－

－

2,600

1,982

4,582

－

－

190,017－△812

189,204－

189,204△34,333 △6,559,962

△291

－

13,323,135 15,213,200－－ △2,308,710 △2,308,710－ △2,308,710

47,656,713 △1,153,620

―14―

－

－

1,139,004

149,358

1,288,363

△291

－

△291

△812 △6,595,401
11,778,511△4,906 △2,313,616

86,817,939－ △6,749,980△163,239 △6,758,641
2,516,625

89,334,565

（４）Condensed consolidated statement of cash flows
Notes(Unit: Thousand Yen)
Q1 FY2024(From October 1, 2023
to December 31, 2023)

Q1 FY2023(From October 1, 2022
to December 31, 2022)

Net cash provided by (used in) operating
activities
Profit before income taxes
Depreciation & Amortization
Financial income and expense(△=gain)
Equity method investment gain/loss(△=increase)
Increase/decrease in inventories(△=increase)
Increase/decrease in trade andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
In/Decrease in accrued revenues(△=increase)
In/Decrease in trade payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current liabilities(△=decrease)
In/Decrease in other non-current
liabilities (△=decrease)
Other
Subtotal

4,687,236

5,919,417

571,235

763,601

380,677△61,939

22,274△26,966△994,774△713,302△1,656,906△3,876,261△7,484,148△2,681,115△7,854,733△8,666,019

1,832,667

1,873,084

6,919,088

9,458,500

26,930,315

28,377,548△910,423△255,138△479,299

8,895△695,273△225,604

21,267,936

29,894,699

Interest and dividends received

150,634

273,612Interest paid

△35,477△42,609

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payments into restricted deposits
Purchase of property, plants andequipment
Purchase of intangible assets△5,209,997△7,810,885

16,173,097

22,314,817△1,161,030－△170,246△21,537△1,141,777△1,101,919

Purchase of investment securities
Purchase of investments accounted forusing equity method
Proceeds from distributions ofinvestments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal of deposits
to subsidiaries and affiliates
OthersNet cash provided by (used in)investing activities△537,148△732,844－△200,000

42,596172,209△5,300,000－

16,500,000

5,300,000

56,188△74,694

8,288,582

3,341,213―15―

NotesNet cash provided by (used in) financing
activities
Net
in/decreaseinshort-termborrowings (△=decrease)
Increase in long-term borrowings
Repayment of long-term borrowings
Dividends paid
Dividends paid to non-controllinginterests
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
Balance of cash and cash equivalents at
the end of period(Unit: Thousand Yen)
Q1 FY2024(From October 1, 2023
to December 31, 2023)

Q1 FY2023(From October 1, 2022
to December 31, 2022)

3,000,000

3,900,000

1,950,000

500,000－△90,000△12,083,568△6,715,897△102,856△165,221△142,085△199,985△7,378,510△2,771,104△859,798△950,418

16,223,370

21,934,507①

113,967,930

133,658,153①

130,191,301

155,592,661―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, 2023)(Unit: Thousand Yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2023)

127,578,153

155,592,661

6,080,000－

133,658,153

155,592,661

Cash and cash equivalents
Deposits toand affiliates

subsidiaries

Total② Trade and other receivables
Breakdown of trade and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2023)

Trade and other receivables

7,414,365

9,188,406

Operating loans

14,760,925

16,210,974

661,867

685,944△261,110△263,219

Total

22,576,047

25,822,106

Current assets

18,953,746

20,068,350

Non-current assets

3,622,301

5,753,756

22,576,047

25,822,106

Other
Provisions
accounts

fordoubtful

Total③

Deposits to subsidiaries and affiliates
The deposits to subsidiaries and affiliates are deposits made from cash-on-hand to the CMS (cash management
system) operated by GMO Internet Group, for use by the entire GMO Internet Group companies.

―17―