Member of Financial Accounting Standards Foundation

Summary of Consolidated Financial Statements for the Second Quarter, FY2016
April 28, 2016
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President &Representative Director

Contact:

Ryu Muramatsu

Executive Vice President

Tel: +81-3-3464-0182

Scheduled date of submission ofquarterly report

May 12, 2016

Scheduled date ofcommencement ofdividend payment-

Supplemental materials preparedfor financial results

Yes

Information meeting arranged
related to financial resultsYes (for institutional investors andanalysts)

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

1.

Consolidated Financial Statements for the Second Quarter, FY2016 (Cumulative)(From October 1, 2015 to March 31, 2016)(1) Consolidated Financial Statements (Percentages denote the increase or decrease from the previous period)
Net sales
2Q FY2016
2Q FY2015

Million yen
5,730
4,162

%
37.7
19.4

Operating income

Ordinary income

Million yen
1,879
1,487

Million yen
1,918
1,530

%
26.3
20.1

(Note) Comprehensive income: 1Q FY2016: 621 million yen (20.6%)

2Q FY2016
2Q FY2015

Net income per share
Yen
31.01
27.14

%
25.4
23.2

Profit attributable toowners of parent
Million yen
%
1,151
22.9
937
30.3

1Q FY2015: 515 million yen (39.6%)

Diluted net income per share
Yen
31.00
27.12

(Note) In order to appropriately display the net income per share, in regard to the stock attributed to the directors’ remuneration
board incentive plan trust, it has the right to a claim of dividend, and is therefore, not included in treasury stock.

(2) Consolidated Financial Position

2Q FY2016
FY2015

Total assets
Million yen
49,203
41,831

Net assets
Million yen
16,63016,186

Reference: Equity: 2Q FY2016: 16,629 million yen

2.

Equity ratio
%
33.8
38.7

Net assets per shareYen
447.65435.78FY2015: 16,184 million yen

Dividends
1Q

FY 2015
FY 2016
FY 2016 (forecast)

2Q
Yen
—
0.00

Yen
0.00
0.00

Yearly dividends
3Q
Fiscal Year end
Yen
Yen
—
18.00
0.00

22.00

Total
Yen
18.00
22.00

(Note) Revision of the most recently released dividend forecast: No

3.

Consolidated Financial Forecast for the Fiscal Year Ending September 2016
(From October 1, 2015 to September 30, 2016)

Net sales
Operating income
Ordinary income
Million yen% Million yen% Million yen%
Full year
11,413
26.4
3,741
25.7
3,750
25.0
(Note) Revision of the most recently released financial forecast: No

Profit attributableto owners ofparentMillion yen
%
2,335
26.0

Net income per
share
Yen
62.86

Notices:
(1)

(2)
(3)

(4)

Changes of important subsidiaries during the period (change of specific subsidiaries that lead to a change
in the scope of consolidation): No
Number of new subsidiaries: - (Name:), number of excluded subsidiaries: - (Name:)
Application of special accounting procedures for the execution of the financial statements: No
Changes in the accounting policy / changes in the accounting estimation / restatement of corrections[1] Changes associated with the revision of accounting policy, etc.: Yes[2] Changes other than [1]: No[3] Changes in accounting estimations: No[4] Restatement of corrections: No
Number of shares issued (common stock)[1] Number of shares issued at the end of
the term (including treasury stock)[2] Number of treasury stocks at the end of
the term[3] Average number of shares

2Q FY2016: 37,150,500

FY 2015: 37,140,900

2Q FY2016: 2,500

FY 2015: 2,500

2Q FY2016: 37,145,234

2Q FY2015: 34,535,970(Note) In order to appropriately display the number of treasury stocks at the end of the term and average number ofshares, in regard to the stock attributed to the directors’ remuneration board incentive plan trust, it has the right to aclaim of dividend, and is therefore, not included in treasury stock.

*

Indication of the implementation status of quarterly review procedures
These quarterly financial statements are not subject to the quarterly review procedures of the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial statements, the quarterly
financial statement review procedures of the Financial Instruments and Exchange Act had not been completed.

*

Explanation of the proper use of financial forecasts and other important notes
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 inusing 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 4 of theattachment.
Results Presentation for Investors and Analysts: May 2, 2016. Supporting materials and a video of thepresentation will be made available on the company's website after the event.

Table of contents of attachment
1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Qualitative information on consolidated operating results(2) Qualitative information on the consolidated financial condition(3) Review of consolidated earnings forecasts and other forecasts
2. Items concerning summary information (Notes)(1) Changes of important subsidiaries(2) Application of special accounting procedures for the execution of
the financial statements(3) Changes in the accounting policy/ changes in the accounting
estimation / restatement of corrections
3. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheet

2
2
4
5
5
5
5
5
6
6

(2) Consolidated quarterly statements of income and consolidated quarterly
statement of comprehensive income

8(3) Consolidated statements of cash flows

10(4) Notes to consolidated quarterly financial statement

11(Notes regarding the premise for continuance)(Note when there is a significant fluctuation in the amount of shareholders’ equity)

－

1 －

11
11

1. Qualitative Information on Consolidated Financial Statements for the
Quarter(1)

Qualitative information on consolidated operating results
Regarding the economic environment in Japan during the period under review, although there were some concerns
about overseas economic conditions such as the impact of China’s economic decline, the decline in crude oil prices,and the fluctuations in exchange, the economy is gradually on the mend, with the economic and fiscal policy of thegovernment and the monetary easing policy of the Bank of Japan as a background.
In regard to our core business, the BtoC EC market continues to grow, thanks to a favorable external environment suchas broader use of smartphones as well as reforms in logistics, and e-commerce is also spreading in the market of salesof non-goods items such as services, as seen in new areas such as BtoB EC and CtoC EC.
In regard to the credit card field, credit card shopping is steadily growing, and people tend to make more purchases via
the Internet. Also, use of credit cards in the field of payment via the internet for everyday living expenses continues toexpand, such as payments for rent and medical costs, as well as utility charges and public funds. It is a certainty that
opportunities to use credit cards will continue to increase.
Under such circumstances, the group has pressed on with its businesses in order to expand the scale of operations
described below.
The Group consists of GMO Payment Gateway, Inc. and its consolidated subsidiaries, GMO Epsilon, Inc. , GMO
PAYMENT SERVICE, Inc., GMO PAYMENT GATEWAY PTE. LTD. etc, and provides Payment Processing Business,
Money Service Business, and Other business as a consolidated subsidiary of GMO Internet, Inc.
The number of merchants during the current consolidated cumulative second quarter increased by 8,362 to 67,921
compared to the end of the previous consolidated fiscal year. The number and amount of processed payments steadily
increased.
Changes in number of operating stores
End of September

Number of operating

End of September End of September

End of September

End of March

2012

2013

2014

2015

2016

38,94944,32849,72559,55967,921storesNote: Number of operating stores means the number of IDs assigned to each store to use the service. It shows thenumber of stores (merchants) which have an agreement with the Group, are connected to the system,
and are able to process payments at any time in principle.

For online payment field, such as the BtoC EC, BtoB EC and CtoC EC.market, Payment Processing Business grewsteadily. For consolidated cumulative second quarter, GMO Payment Gateway, Inc. started original equipment

manufacturing their smart phone payment service “GMO Pallet” to Hokkoku Bank as a Fintech Service. GMO
Epsilon, Inc., our consolidated subsidiary, sells and provides the “Multi-Payment Service” and is contributing to anincrease in the number of operating stores and merchants acquiring service revenue. This service provides a packageof various payment methods such as credit cards to small-scale companies via its website, on an online basis.
For recurring payment field, we have continued to attempt to develop this field to enable using credit card for paying
utility charges, public funds and other monthly services closely connected with everyday life. We provide payment
methods to public institutions, such as the Japan Pension Service, and local governments. After Tokyo, GMO Payment
Gateway, Inc. started doing payment processing service to Fukuoka City and “credit card payment site for taxes inFukuoka City” has started since April 1, 2016.
For Money Service Business, Our subsidiary GMO Payment Service Inc. provides a “GMO Payment after delivery”
service that allows the user to pay after receiving the goods. The “GMO Payment after delivery” service has been
adopted by an increasing number of merchants as a payment service with high level of consumers’ needs and has
continued to perform favorably since its introduction in May 2013. We also provide “Money service business (MSB)”
such as “early payment services”, Transaction Lending service and “GMO-PG Remittance Service”.
For Others, we provide Online Advertising Service, SSL server certifications, shipping services.
With regard to overseas business, we established five oversea entity to provide GMO-PG Global Payment solutions toJapanese online businesses with a local presence and targeting local markets in South East Asia. We have continued
to promote funding activities through the “GMO Global Payment Fund” to form capital alliances with prospective－

2 －payment-related businesses; in addition, the financial results of local payment processing companies in which weinvest our fund have performed steadily. With a view to incorporating the huge growth potential of South East Asia,
which is the center of global growth, into our Group’s mid-to-long-term business growth, we will continue to introduce
new measures while creating a synergistic effect between “GMO-PG Global Payment” and “GMO Global Payment
Fund”.
*”GMO-PG Global Payment” has changed the name to “Z.com Payment”.

Consequently, the Group’s operating results for the cumulative second quarter of the current consolidated fiscal year
were as follows: Net sales amounted to 5,730,587,000 yen (an increase of 37.7% on a year-on-year basis).
Net sales consisted of an initial revenue of 303,359,000 yen (increase of 22.1% on a year-on-year basis), running
revenue of 2,990,695,000 yen (increase of 30.7% on a year-on-year basis) and merchant acquiring service revenue of
2,436,532,000 yen (increase of 49.9% on a year-on-year basis).
Concerning operating expenses, while the solid performance of “GMO Payment after delivery” service saw a hike incost of sales, we were able to take advantage of the scale merit of the revenue growth. As a result, cost of sales
amounted to 1,297,883,000 yen (increase of 51.3% on a year-on-year basis). Selling, general and administrative
expenses came to 2,553,548,000 (increase of 40.5% on a year-on-year basis) due to the increases of MSB related
sales and an increase in personnel expenses. The operating income grew 26.3% a year-on-year basis to1,879,155,000 yen.
With regard to non-operating income and loss, while non-operating income of 66,230,000 yen has been posted due tothe occurrence of investment return with the equity method by the enhancement of performance of GMO Financial
Gate which is an affiliate accounted for using the equity method, ordinary income resulting 1,918,926,000 yen (increaseof 25.4% on a year-on-year basis) and marking a ratio of ordinary income to net sales of 33.5%.
Profit attributable to owners of parent grew to 1,151,756,000 yen (increase of 22.9% on a year-on-year basis).
The Results of each segment is as mentioned below.
Effective from the first quarter of the fiscal year ending September 30, 2016, the classification of the reporting segments
has been revised. The reporting segments consist of the “Payment Processing Business”, the “Money Service
Business”, and the Others. Segment information for the second quarter of the previous fiscal year is based on thesegment classification after the change.
For Payment Processing Business, the number and amount of processed payments steadily increased with the
expansion of e-commerce market. System development orders from large-sized enterprises remained at a high level.
The sales marked 4,189,434,000 yen (increase of 20.1% on a year-on-year basis) and the segment income (operating
income) marked 2,488,036,000 yen (increase of 21.3% on year-on-year basis).
For Money Service Business, Money service business (MSB)” such as “GMO Payment after delivery”, “GMO-PG
Remittance Service” steadily increased. As a result, the sales marked 947,523,000 yen (increase of 216.9% on a
year-on-year basis) and the segment income (operating income) marked 95,879,000 yen (FY2015 segment lost
marked 25,813,000 yen).
For Others, “GMO-PG Online Advertising Service” grew very well. As a result, the sales marked 593,850,000 yen(increase of 57.7% on a year-on-year) and the segment income marked 76,479,000(increase of 78.2% on a
year-on-year).

－3 －(2) Qualitative information regarding the consolidated financial condition[1]

AssetsThe balance of total assets at the end of the second quarter of the current consolidated fiscal year was
49,203,101,000 yen, up 7,371,364,000 yen as compared with the end of the previous consolidated fiscal year.
This increase was mainly due to an increase of cash and deposits (+1,018,922,000 yen), an increase of
Investment securities (+1,325,245,000 yen), an increase of lease receivables (+2,419,322,000 yen), an increaseof advance payments-trade (+888,126,000 yen) and an increase of accounts receivable-trade (+576,122,000
yen).

[2]

Liabilities
The balance of liabilities at the end of the second quarter of the current consolidated fiscal year was
32,572,810,000yen, up 6,927,424,000 yen as compared with the end of the previous consolidated fiscal year.
This increase was mainly caused by an increase in deposits received of 5,739,215,000 yen, which was an effectof the increase in deposits received from merchants in accordance with the merchant acquiring service
agreement. The deposits of merchants will mostly be paid out on the tenth of the next month, therefore thedeposit balance will decrease with receipt of deposits.

[3]

Net assets
The balance of net assets at the end of the second quarter of the current consolidated fiscal year was
16,630,290,000 yen, up, 443,939,000 yen as compared with the end of the previous consolidated fiscal year. The
decrease was mainly caused by a decrease in profit attributable to owners of parent of 1,151,756,000 yen, with adecrease of 668,491,000 yen as a result of a distribution of surplus.

[4]

Cash FlowsAt the end of the second quarter of the current consolidated fiscal year, cash and cash equivalents (the“Funds”) was 31,127,920,000 yen, up 1,014,314,000 yen as compared with the balance at the beginning of theperiod. Cash flows at the end of the cumulative second quarter of the current consolidated fiscal year are as
follows.
Net cash provided by (used in) operating activities
Cash provided by operating activities during the cumulative second quarter of the current consolidated fiscal year
amounted to 3,451,868,000 yen (6,851,327,000 yen was obtained for the same period of the previous fiscal
year).This was mainly due to the recording net income before income taxes and others of 1,916,352,000 yen andincrease in deposits received of 5,739,215,000 yen after a payment of income taxes of 851,198,000 yen, increasein lease receivables (+2,419,322,000 yen) and increase in advance payments-trade (+888,126,000).
Net cash provided by (used in) investing activities
Cash used in investment activities totaled 1,788,483,000 yen (660,768,000 yen was used for the same period of
the previous fiscal year.) This was mainly due to the investments in other securities of subsidiaries and affiliatesof 1,373,026,000 yen, purchase of intangible fixed assets of 281,369,000 yen.
Net cash provided by (used in) financing activities
Cash used in financing activities totaled 625,703,000 yen (534,934,000 yen was used for the same period of theprevious fiscal year). This was primarily attributable to the dividend payment of 597,859,000 yen.

－

4 －

(3)

Review of consolidated earnings forecasts and other forecasts（Forecasts for the next period）
In regard to our core business, the BtoC EC market continues to grow thanks to a favorable external environment suchas broader use of smartphones as well as reforms in logistics, and e-commerce is also spreading in the market of salesof non-goods items such as services, as seen in new areas such as BtoB EC and CtoC EC.
For the term ending September 2016, we believe this will be achieved by accelerating the acquisition pace of new
merchants, strengthening the development of large-scale merchants through the provision of higher quality services, andincreasing revenue per merchant through providing services such as “Online Advertising Service” and “Money service
business (MSB)” that increase added value associated with the merchants' use of the Group.
In regard to costs, we keep forecast for increase in sales cost ratio due to the sales growth of “Online AdvertisingService" and “GMO-PG Remittance Service”, which has a high sales-cost ratio. We also forecast investment cost on thesubsidiary companies, overseas businesses, and other investment on new businesses. We expect 25.0% growth inordinary income and 32.9% ordinary income ratio.
As regards the foreseen joint venture company with Mitsui Sumitomo Bank, we think it would contribute to enhance the
mid-term corporate value and shareholders’ value of our company, but we expect that, for the term ending September
2016, the costs related to the establishments of the new company would precede.

2. Items concerning summary information (Notes)(1)

Changes of important subsidiaries

N/A

(2)

Application of special accounting procedures for the execution of the financial
statements
N/A

(3)

Changes in the accounting policy/ changes in the accounting estimation/
restatement of corrections（Changes in the accounting policy）
Since the first quarter of the accounting period under review, the Company has applied the Accounting standard forBusiness Combinations (Accounting Standards Board of Japan “ASBJ” Statement No. 21, issued on September 13, 2013),
the Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, issued on September 13, 2013),
and the Accounting Standard for Business Divestitures (ASBJ Statement No. 7, issued on September 13, 2013). In line withthe application of these standards, the Company included the balance resulting from the changes in a parent’s ownershipinterest in a subsidiary, in which the parent retains control, as capital surplus, and included the costs related to theacquisition of additional ownership interests in the costs of the fiscal period in which the relevant costs were incurred. In
regard to the business combinations executed after the beginning of the first quarter of the accounting period under review,
the Company has decided to revise the allocation of acquisition costs in response to the tentative decisions related toaccounting processing, and to reflect this to the quarterly financial statements for the period in which the relevant businesscombinations are executed. The Company has also changed the method of disclosing quarterly net income, etc., and themethod of reporting changes in minority interests to non-controlling interests. In order to reflect these changes, the financial
statements of the cumulative first quarter and the fiscal year for the previous fiscal year have been restated.
In the cash flow statement of the cumulative first quarter, the cash flow for the costs of the acquisition or sales of ownershipinterests in subsidiaries that do not result in change in scope of consolidation is stated in the net cash provided by (usedin) financing activities, and the cash flow for the costs of the acquisition of ownership interests in subsidiaries resulting inchange in scope of consolidation or the acquisition or sales of ownership interests in subsidiaries that do not result inchange in scope of consolidation is stated in the net cash provided by (used in) operating activities. The accounting
standards for business combinations have been applied in accordance with the transitional treatment provided in
Paragraph 58-2(4) of the Accounting Standard for Business Combinations, Paragraph 44-5(4) of the Accounting Standard
for Consolidated Financial Statements, and Paragraph 57-4(4) of the Accounting Standard for Business Divestitures. Thesestandards were applied prospectively from the beginning of the first quarter of the accounting period under review.
The impact of this change on income is immaterial.
－

5 －3. Consolidated quarterly financial statements(1)

Consolidated quarterly balance sheet(Unit: Thousand yen)

Summary of balance sheet at End of the second quarter ofthe current consolidated fiscal
the end of the previous
year
consolidated fiscal year
(September 30, 2015)(March 31, 2016)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Lease receivables
Merchandise
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Tangible assets
Buildings, net
Tools, furniture and fixtures
Other
Total tangible assets
Intangible assets
Goodwill
Right of trademark
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Investments in other securities ofsubsidiaries and affiliates
Long-term loans receivable from directors
and employees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets－

6 －30,152,630
2,117,007
2,293,947
1,062
617
2,303,428
67,830220,805
1,156,824
341,591△186,253
38,469,492

31,171,552
2,693,129
4,713,269
2,663
1,011
3,191,554
94,012
170,710
1,354,947
653,391△258,099
43,788,143

73,55949,37392,564215,497

68,20048,29487,965
204,460

24,707
119751,499
158,485
934,811

23,406
69
810,753
319,416
1,153,646

1,437,144
139,047

2,762,389
283,414343,047

346,492

1,443

1,204

25,54524,8532,570
223,818
64,863△25,545
2,211,935
3,362,243
41,831,736

29,475570,962
62,912△24,853
4,056,850
5,414,957
49,203,101

(Unit: Thousand yen)
Summary of balance sheet at End of the second quarter ofthe current consolidated fiscal
the end of the previous
year
consolidated fiscal year
(September 30, 2015)(March 31, 2016)
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for others
Other
Total current liabilities
Noncurrent liabilities
Provision for directors’ remuneration Board
Incentive Plan Trust
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total Accumulated other comprehensive
incomeSubscription rights to shares
Total net assets
Total liabilities and net assets－

7 －985,850
1,911,844
795,544
73,10848,69821,184,305
337,334
58,70052,80025,448,186

1,269,148
2,574,162
666,425
33,479417,401
26,923,520
208,704
207,100
55,59732,355,540

120,000

145,000

77,198
197,198
25,645,385

72,269217,269
32,572,810

4,711,021
4,970,942
6,651,114△265,236
16,067,842

4,712,900
4,966,785
7,134,379△265,236
16,548,828

134,960

112,969△18,578△32,585

116,382

80,384

2,126
16,186,351
41,831,736

1,077
16,630,290
49,203,101

(2) Consolidated quarterly statements of income and consolidated quarterly
statement of comprehensive income(Consolidated quarterly statements of income)(Cumulative second quarter of the consolidated fiscal year)(Unit: Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity income of affiliates
Earning on investment in partnership
Earnings on reversal of dividends payable
Rent income
Commissions received
Exchange earnings
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investment in silent partnership
Loss on investment in partnership
Rent expenses
Exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Income from securities soldTotal extraordinary income
extraordinary expense
loss on retirement of noncurrent assets
Total extraordinary expense
Income before income taxes
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Loss attributable to non-controlling interests（△）
Profit attributable to owners of parent－

First six months of theprevious consolidated
fiscal year
(From October 1, 2014
to March 31, 2015)
4,162,976
858,0113,304,965
1,817,052
1,487,912

First six months of thecurrent consolidated
fiscal year
(From October 1, 2015
to March 31, 2016)
5,730,587
1,297,883
4,432,703
2,553,548
1,879,155

3,962
5,091
6,682
－
1,050
7,073
8,704
24,234767
57,566

3,119
6,327
22,861
7,672
933
8,852
11,755－
4,705
66,230

1,141
3,788
3,043
6,932
－
6
14,911
1,530,567

1,677
－
－
8,689
16,02270
26,4591,918,926

30,76630,766

－
－

523
523
1,560,809
607,954
17,211
625,165
935,644△1,716937,361

2,574
2,574
1,916,352
717,420
47,176
764,596
1,151,756－
1,151,756

8 －(Consolidated quarterly statements of comprehensive income)(Cumulative second quarter of the consolidated fiscal year)(Unit: Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Details
Parent company shareholders’ comprehensive
incomeNon-controlling interests’ comprehensive income－

First six months of theprevious consolidated
fiscal year
(From October 1, 2014
to March 31, 2015)
935,644First six months of thecurrent consolidated
fiscal year
(From October 1, 2015
to March 31, 2016)
1,151,756

32,100△21,991△2,726
29,373965,017△14,006△35,998
1,115,757

966,515

1,115,757△1,498

－

9 －

(3)

Consolidated statements of cash flows(Unit: Thousand yen)First six months of theprevious consolidated
fiscal year
(From October 1, 2014
to March 31, 2015)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase and decrease in provision (△decrease)
Interest and dividends income
Interest expenses
Foreign exchange gains and losses (△gains)
Equity in gains and losses of affiliates (△gains)
Gains and losses on investments in silent partnership(△gains)
Gains and losses on investment in partnership (△gains)
Loss on retirement of noncurrent assets
Gain and loss on investment securities sold (△gains)
Increase and decrease in accounts receivable (△Increase)
Increase and decrease in lease receivables (△gains)
Increase and decrease in inventories (△increase)
Increase and decrease in advance payments-trade(△increase)
Increase and decrease in accounts receivable-other(△increase)
Increase and decrease in purchase debts (△decrease)
Increase and decrease in accounts payable-other(△decrease)
Increase and decrease in deposits received (△decrease)
Other
SubtotalInterest and dividends income received
Interest expenses paid
Payments for deposits of deposit money
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plants and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of other stocks of subsidiaries and affiliates
Purchase of stocks of subsidiaries and affiliates
Distributions from an investment partnership
Payment on leasehold deposits
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from issuance of common stock
Purchase of treasury stock
Cash dividends paid
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other
Net cash provided by (used in) financing activities－

10 －First six months of thecurrent consolidated
fiscal year
(From October 1, 2015
to March 31, 2016)

1,560,809
141,255
4,686
54,959△9,053
1,141△24,311△6,682

1,916,352
167,763
1,300
115,925△9,447
1,677
15,760△22,861

3,788

－

3,043
523
△30,766△107,893－
366△7,6722,574－△575,661△2,419,322△2,008△357,778△888,126△273,424△198,127

28,757283,304

267,652

592,110

6,577,046△272,687

5,739,215△61,490

7,561,433
4,737△1,141△10,025△703,677
6,851,327

4,651,265
3,479△1,677△350,000△851,198
3,451,868△2,085△161,167△434,046
63,159△125,000－
30,092△31,181540△660,768△8,409△281,369△1,373,026－－△124,950
30,328△1,004△30,051△1,788,483

3,002
△513
△516,603

2,749－△597,859－△6,076△20,820△534,934△24,517△625,703

Translation differences of cash and cash equivalents
Increase and decrease in cash and cash
equivalents(△decrease)
Balance of cash and cash equivalents at the beginning of
the period
Cash and cash equivalents at the end of period

22,725△23,366

5,678,349

1,014,314

20,349,309

30,113,605

26,027,658

31,127,920(4) Notes to the consolidated quarterly financial statement(Notes regarding the premise for continuance)
N/A(Note when there is a significant fluctuation in the amount of shareholders’ equity)
N/A

－

11 －