Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Statements for the Second Quarter FY2023(Based on Japanese GAAP)May 11, 2023
Name of listed company: GMO Financial Gate, Inc.
Exchange: Tokyo Stock Exchange Growth
Stock code:4051
URL https://gmo-fg.com/
Representative: Kentaro Sugiyama President & Chief Executive Officer
Contact:
Tel: +81-3-6416-3881
Tomoki Tamai Director & Administrative Division Executive Manager

Scheduled date of commencement for－
dividend payment

Scheduled submission date of quarterly report May 12, 2023
Supplemental materials prepared for financial results
Information meeting arranged related to financial results: Yes: Yes ( for institutional investors and analysts )(Amounts rounded down to the nearest one million yen)

1. Consolidated Financial Statements for the Second Quarter, FY2023(From October 1, 2022 to March 31, 2023)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Revenue
Mil.Yen%Mil.Yen

7,264
62.6
4,468
58.7
Q2 FY2023

Q2 FY2023
Q2 FY2022(*) Comprehensive profit

Basic earnings per
share

%

Mil.Yen

635
71.4
370
16.3
398Mil.Yen( 70.9%)%

Mil.Yen

%

633
71.1
394
68.5
370
16.0
234
10.6
Q2 FY2022 233Mil.Yen( 23.2%)

Diluted earnings per
share

Yen

Yen

Q2 FY2023
47.77
47.42
Q1 FY2022
28.45
28.09
(Note) The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock split has
been reflected in the calculation of basic earnings per share for the fiscal year ending September 30, 2023 (forecast).

(2) Consolidated Financial Position
Total assets
Q2 FY2023
FY2022(Note) Equity Capital

Total equity

Equity ratio

Mil.YenMil.Yen

8,493
6,638

4,732
4,670

Q2 FY2023

4,561 Mil.Yen

%

53.7
67.8
4,503Mil.Yen

FY2022

２．Dividends
Annual Dividend
End of Q1

End of Q2

Yen

End of Q3

Yen

End of Q4

Yen

Total

Yen

Yen

FY2022
0.00
58.00
58.00
－
－
FY20230.00－
FY2023(forecast)
39.00
39.00
－
(Note)1. Revision to the most recently released dividend forecast : Yes
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. Accordingly, the year-end
dividend for the fiscal year ending September 30, 2023 (forecast) considers the effect of this stock split.

３．Consolidated Financial Forecast for the Fiscal Year Ending September 2023
(October 1, 2022 to September 30, 2023)
Revenue
Mil.Yen(Percentages represent year-on-year % change)
Profit attributable to Basic earnings
Ordinary profit
owners of parent
per share

Operating profit%

Mil.Yen%Mil.Yen%Mil.Yen%Yen

FY2023
13,620 32.3
1,020 37.7
1,018 36.5
631 33.5
76.29(Full year)(Note) 1.Revision to the most recently released financial forecast: Yes
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock
split has been reflected in the calculation of basic earnings per share for the fiscal year ending September 30,
2023 (forecast).

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Notes:(1) Changes of important subsidiaries during the period: No(change of specific subsidiaries that leads to a change in the scope of consolidation)
Number of new subsidiaries- (Name); Number of excluded subsidiaries: - (Name)(2) Adoption if the accounting method peculiar to quarterly financial statements: No(3) Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by accounting criteria: Yes[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No[4] Restatement of prior period financial statements: No(4) 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

Q2 FY2023

8,305,340 FY2022

8,260,220

Q2 FY2023

19,188 FY2022

252[3] Average number of shares during the term

Q2 FY2023

8,254,844 Q2 FY2022

8,228,159(Notes) 1. The number of treasury shares at the end of the term includes the Company’s shares held by Board Benefit
Trust (BBT and J-ESOP) (FY2022: NA, Q2 FY2023: 18,800 shares)
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The number of sharesissued (common stock) has been calculated assuming the stock split had been conducted on October 1, 2021.

**

Quarterly financial statements are not subject the review by certified public accountants or financial
statement auditors.
Explanation of the appropriate use of forecasts and other special notes
The forward-looking statements, including business results forecasts, contained in this document are based on
information available to the company at the time of preparation and on certain assumptions deemed reasonable
by the company. Forward-looking statements are not intended as a promise of actual results by the company.
Actual results may differ materially due to a variety of factors. For more regarding assumptions related to earnings
forecasts and precautions concerning the use of earnings forecasts, see 1.Qualitative Information on Quarterly
Consolidated Financial Statements (3) Discussion of consolidated earnings forecasts and other forward-looking
information on page 4 of Attached Materials.

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Table of contents of attachments

1. Qualitative Information on Quarterly Consolidated Financial Statements……………………………..2(1) Discussion of operating results……………………………………………………………………………2(2) Discussion of financial position……………………………………………………………………………3(3) Discussion of consolidated earnings forecasts and other forward-looking information……………..4

2. Quarterly Consolidated Financial Statements and Major Notes………………………………………..5(1) Quarterly consolidated balance sheet……………………………………………………………………5(2) Quarterly consolidated statement of income and statement of comprehensive income……………7(3) Quarterly consolidated statement of cash flows………………………………………………………9(4) Notes regarding the quarterly consolidated financial statements……………………………………..10(Notes regarding the going concern assumptions)…………………………………………………….10(Changes of accounting policy)………………………………………………………………………….10(Notes regarding significant changes in shareholders’ equity)……………………………………….10(Segment Information) ……………………………………………………………………………………10(Significant subsequent matter)………………………………………………………………………….10―1―

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

1. Qualitative Information on Quarterly Consolidated Financial Statements(1) Discussion of operating results
Forward-looking statements in this document reflect GMO Financial Gate Group judgements as of the end of the
cumulative consolidated second quarter of the fiscal year ending September 2022.
Financial results for the cumulative consolidated second quarter of the fiscal year ending September 2022 (October
1, 2021 to March 31, 2022) are as follows.
(Unit: Thousand Yen)
Six Months Ended March 31, 2021

Six Months Ended March 31, 2022

Difference(October 1, 2020 to March 31, 2021)(October 1, 2021 to March 31, 2022)(%)

4,468,335

7,264,812

62.6

Operating profit

370,952

635,642

71.4

Ordinary profit

370,591

633,97371.1

234,115394,368

68.5

Revenue

Quarterly profit
attributable toowners of parent

a. Revenue
We recorded revenue of ¥7,264,812 thousand (up 62.6% year on year).
During the three months ended March 31, 2023, the amount of payment processed at member merchants using
our payment platform steadily increased as the impact of COVID-19 is fading and the move toward economic
recovery is accelerating despite the general trend that the growth slows down in the three months ended March
31 every year in comparison to the three months ended December 31 at most member merchants due toseasonal factors. As the number of foreign visitors to Japan continues to be on a recovery trend, demand frominbound tourists also appeared to have contributed to a certain extent; and as a result, the number and amount of
payment processed, our KPIs, showed strong growth compared to the three months ended December 31, 2022.
Sales of stera terminals continued to make a large contribution to sales of payment terminals which account formost of initial sales. Especially in the three months ended March 31, 2023, initial sales significantly increased due
to a further increase in shipping and installment of payment terminals in connection with a large project which has
been contributing to revenue since the three months ended December 31, 2022 as well as an increase in sales
from small and medium-sized projects.
Stock-model revenue, consisting of stock, fee and spread revenues, generally tends to grow at a slower pace inthe three months ended March 31, which include the off-season from January to February, compared to the threemonths ended December 31, which include the peak season with year-end sales campaign. However, stockmodel revenue for the three months ended March 31, 2023 exceeded that for the three months ended December
31, 2022, boosted by economic recovery at an accelerated pace and recovery in demand from inbound tourists.
Spread revenue, which had previously shown slower growth than other stock-model revenues, showed growth inline with the plan as a result of initiatives for accelerating spread revenue.

―2―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Revenue by business model for the six months ended March 31, 2023 is as follows.
(Unit: Thousand yen)
Six Months Ended MarchSix Months Ended March

31, 2022

31, 2023

Changes (%)

Initial3,098,100

5,125,787

65.4

Stock-model

1,370,234

2,139,025

56.1

Stock

(392,376)(543,371)(38.5)

Fee(520,919)(1,059,585)(103.4)

Spread(456,938)(536,069)(17.3)

4,468,335

7,264,812

62.6

Total

(Note) Stock-model revenue consists of stock, fee and spread revenues. Figures in parentheses represent a
breakdown of stock-model revenue.

b. Operating profit
We recorded operating profit of ¥635,642 thousand (up 71.4% year on year).
While profitability of initial sales primarily consisting of sale of payment terminals is low, increases in the numberof active terminals and the number and amount of payments processed led to the growth in high-margin stockmodel revenue, contributing to a profit increase. While we continued employment of human resources to support
growth, return to officers and employees, and various growth investments in the three months ended March 31,
2023, we achieved solid growth in operating profit with a higher year-on-year growth rate than revenue throughan appropriate cost management.

c. Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥394,368 thousand (up 68.5% year on year).

(2) Discussion of financial position(a) Summary of assets, liabilities and net assets(Assets)
As of March 31, 2023, current assets increased ¥1,825,895 thousand from September 30, 2022 to ¥6,841,953
thousand. This was mainly because merchandise increased ¥1,624,512 thousand as we increased the payment
terminal inventory to a certain level based on the sales forecast and trade accounts receivable increased¥549,498 thousand due to strong sales of payment terminals while cash and cash equivalents decreased¥328,838 thousand. Non-current assets increased ¥29,430 thousand from September 30, 2022 to ¥1,651,387
thousand mainly due to an increase in software in progress of ¥71,075 thousand despite a decrease in deferred
tax assets of ¥48,004 thousand.
As a result, total assets increased ¥1,855,326 thousand from September 30, 2022 to ¥8,493,340 thousand.
(Liabilities)
As of March 31, 2023, current liabilities increased ¥1,291,925 thousand from September 30, 2022 to ¥3,220,711
thousand. This was mainly because short-term loans payable and accounts payable increased ¥1,000,000
thousand and ¥492,692 thousand, respectively, while income taxes payable and allowance for employees’
bonuses decreased ¥132,995 thousand and ¥119,140 thousand, respectively. Non-current liabilities increased¥501,403 thousand from September 30, 2022 to ¥539,974 thousand mainly due to an increase in long-term loans
payable of ¥500,000 thousand.
As a result, total liabilities increased ¥1,793,328 thousand from September 30, 2022 to ¥3,760,685 thousand.

―3―

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(Net assets)
As of March 31, 2023, total net assets increased ¥61,997 thousand from September 30, 2022 to ¥4,732,654
thousand. This was mainly because retained earnings increased ¥394,368 thousand due to recording of profit
attributable to owners of parent while retained earnings decreased ¥239,539 thousand due to distribution ofdividend from surplus and treasury stock increased ¥120,902 thousand.
(b) Cash flows
As of March 31, 2023, cash and cash equivalents (“cash”) decreased ¥206,605 thousand from September 30,
2022 to ¥2,180,579 thousand.
The following is a summary of cash flows from each activity during the six months ended March 31, 2023.
(Cash flows from operating activities)
Cash used in operating activities during the six months ended March 31, 2023 was ¥1,196,051 thousand (cashused of ¥1,842,590 thousand for the six months ended March 31, 2022). While cash increased due to recordingof profit before income taxes of ¥622,053 thousand, cash decreased due mainly to increases in inventory of¥1,624,534 thousand and in trade receivables of ¥549,497 thousand and income taxes paid of ¥315,594
thousand.
(Cash flows from investing activities)
Cash used in investing activities during the six months ended March 31, 2023 was ¥293,544 thousand (cashused of ¥304,485 thousand for the six months ended March 31, 2022) mainly because cash decreased due topurchase of intangible fixed assets of ¥226,560 thousand and purchase of property, plant and equipment of¥66,968 thousand.
(Cash flows from financing activities)
Cash provided by financing activities during the six months ended March 31, 2023 was ¥1,282,990 thousand(cash provided of ¥331,797 thousand for the six months ended March 31, 2022) mainly because cash increased
due to an increase in short-term loans payable of ¥1,000,000 thousand and proceeds from long-term loans
payable of ¥500,000 thousand while cash decreased due to payments of dividends of ¥239,539 thousand.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
We have revised the consolidated earnings forecasts for the fiscal year ending September 30, 2023 announced on
November 14, 2022.
In the offline cashless payment market in which the Group operates, the number of member merchants adopting
the cashless payment is on the rise against a backdrop of the government-led promotion and diversifying payment
methods as well as a shift to safe payment methods amid the COVID-19 crisis. The economy is now returning to its
pre-pandemic level, and such trend is expected to continue with the Japanese government downgrading the legal
status of COVID-19 to “Class 5 infectious disease” from May 8, 2023. Although the future outlook remains uncertain
due to price hikes, market speculation about changes to the monetary policy under the new Bank of Japan
Governor, and specter of recession, we expect to record revenue of ¥13,620 million (up 32.3% year on year),
operating profit of ¥1,020 million (up 37.7% year on year), ordinary profit of ¥1,018 million (up 36.5% year on year)
and profit attributable to owners of parent of ¥631 million (up 33.6% year on year) by steadily carrying out our
growth strategies, including growth in sales of next-generation payment terminal stera, sales and installment of
payment terminals in the IoT domain, accumulation of stock-model revenue through an increase in the number ofactive terminals.

―4―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet
End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2023)

2,519,185
630,851

2,190,347
1,180,350

1,506,845
362,240

3,131,357
350,660△3,065△10,762

5,016,057

6,841,953

79,68593,903

Software
Software in progress

989,279
103,872995,168
174,948

Customer-related assets
Goodwill

85,621
177,753

64,216
155,534

Other intangible fixed assets

60

60

Total intangible fixed assets

1,356,587

1,389,927

Lease deposits
Bankruptcy rehabilitation claims

47,801
1,021

47,417
1,019

Deferred tax assets
Other investments and other137,863
19

89,85830,280AssetsCurrent assets
Cash and cash equivalents
Trade accounts receivable
Merchandise
Other financial assets
Allowance of doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets

Investments and other assets

Allowance for doubtful accounts△1,021△1,019Total investments and other assets

185,683

167,556

1,621,956

1,651,387

6,638,014

8,493,340

Totale non-current assets
Total assets―5―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2023)

Liabilities
Current liabilities
Account payable
Short term borrowing

814,649

1,307,341
1,000,000

Income taxes payable
Contract liabilities－
253,018
34,343

Deposits received
Allowance for employees’ bonuses

173,421
241,500

297,227
122,360

Allowance for directors’ bonuses
Other current liabilities

59,300352,552

61,790249,989

1,928,785

3,220,711－

500,000

166

2,345

Total current liabilities
Non-current liabilities
Long term borrowing
Provision for employee stock ownership plantrust
Provision for management board benefit trust

120,023
61,978

11,977

17,966

Deferred tax liabilities
Other non-current liabilities

26,217210

19,663

Total non-current liabilities

38,571

539,974

1,967,356

3,760,685

Shareholders’ equity
Capital stock

1,617,987

1,629,932

Capital surplus
Retained earnings

1,631,098
1,257,124

1,643,043
1,411,953△2,627△123,529

4,503,581

4,561,398

Total liabilities－

Net assets

Treasury stock
Total shareholders’ equity
Non-controlling interests
Total net assets
Total liabilities and net assets―6―

167,075

171,255

4,670,657

4,732,654

6,638,014

8,493,340

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(2) Quarterly consolidated statement of income and statement of comprehensive income
Quarterly consolidated statement of income(Q2 cumulative)

Revenue
Cost of goods soldQ2 FY2022(October 1, 2021 toMarch 31, 2022)
4,468,335
3,258,241(Unit: Thousand yen)
Q2 FY2023(October 1, 2022 toMarch 31, 2023)
7,264,812
5,518,271

Gross profit

1,210,093

1,746,541

Selling, general and administrative expenses

839,141

1,110,898

Operating profit

370,952

635,642Interest income
Other non-operating income

12
101

11
3

Total non-operating income

114

14

Interest expense
Other non-operating expense

475
－

1,651
32

Total non-operating expense

475

1,684

370,591

633,973

Loss on retirement of non-current assets－

11,920Total extraordinary loss－

11,920

Profit before income taxes

370,591

622,053

Corporation income tax, resident tax, business tax
Corporation income taxes deferred

131,4205,900

182,054
41,450Total corporation income taxes

137,320

223,505

ProfitProfit attributable to non-controlling shareholder（△）
Profit attributable to owners of parent

233,270

398,548

△844

4,180

234,115394,368

Non-operating income

Non-operating expense

Ordinary profit
Extraordinary loss

―7―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Quarterly consolidated statement of comprehensive income(Q2 cumulative)(Unit: Thousand yen)
Q2 FY2022
Q2 FY2023(October 1, 2021 to (October 1, 2022 toMarch 31, 2022)
March 31, 2023)
233,270
398,548

ProfitComprehensive income

233,270

398,548(Breakdown)Comprehensive income attributable to owners of parent

234,115394,368

△844

4,180

Comprehensive income attributable to non-controlling shareholder―8―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(3) Quarterly consolidated statement of cash flows
Q2 FY2022(From October 1, 2021 toMarch 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase(decrease) in allowance for employees’
bonuses
Increase(decrease) in allowance for directors’
bonuses
Increase(decrease) in provision for share-based
remuneration
Increase(decrease) in provision for share-based
remuneration for directors
Increase(decrease) in allowance for doubtful
accounts
Loss on retirement of non-current assets
Interest income
Interest expense
Decrease(increase) in trade accounts
receivables
Decrease(increase) in inventories(Unit :Thousand Yen)
Q2 FY2023(From October 1, 2022 toMarch 31, 2023)

370,591

622,053

142,721
22,219187,930
22,219△31,603△119,140

10,800

2,490

－

2,178

－

5,988

407

7,696

－

11,920

△12
475

△11
1,651

△149,415△549,497△908,580

Increase(decrease) in trade payables
Increase(decrease) in deposits received△110,280△931,014△1,624,534
492,692
123,806

Other, net△131,282△66,260

Subtotal△1,714,975△878,816

12

11

△475
△127,152△1,651△315,594△1,842,590△1,196,051

Interest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment△4,857△66,968

Purchase of intangible fixed assets
Other, net△299,608△18△226,560△15

Net cash provided by (used in) investing activities△304,485△293,544

500,000

1,000,000－

500,000

25,08023,890△718△188,449△1,137△239,539△4,116△223

331,797

1,282,990△1,815,278△206,605

3,433,620

2,387,185

1,618,341

2,180,579

Cash flows from financing activities
Net increase(decrease) in short term borrowing
Proceeds from long term borrowing
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Purchase of treasury shares
Dividend paid
Other, net
Net cash provided by (used in) financing
activities
Net increase(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―9―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(4) Notes regarding the quarterly consolidated financial statements(Notes regarding going concern assumptions)Not applicable(Changes of accounting policy)(Application of accounting standard for fair value measurement, etc.)
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 31, June 17, 2021. Hereinafterreferred to as "Accounting Standard for Calculation of Fair Value") is applied from the beginning of the first quarter
current fiscal year, and the transitional treatment prescribed in Paragraph 27-2 of the Accounting Standard for
Calculation of Fair Value is applied. In accordance with the treatment, the new accounting policy stipulated by the fairvalue accounting standard will be applied prospectively. There is no impact on the quarterly consolidated financial
statements.
(Notes regarding significant changes in shareholders’ equity)
Not applicable(Segment information)[Segment information]
Segment information has been omitted as the GMO Financial Gate Group has only one business segment, namely
the face-to-face payment processing services business, which is not material in terms of segment information
disclosure.
(Significant subsequent matter)
Not applicable―10―