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 FY2022(Based on Japanese GAAP)May 12, 2022
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:
Masamitsu Ikezawa Director & Administrative Division Executive Manager Tel: +81-3-6416-3881

Scheduled submission date of quarterly
Scheduled date of commencement for
May 13, 2022－
reportdividend payment
Supplemental materials prepared for : Yes
financial results
Information meeting arranged related to : Yes (for institutional investors and analysts )financial results(Amounts rounded down to the nearest one million yen)

1. Consolidated Financial Statements for the Second Quarter, FY2022(From October 1, 2021 to March 31, 2022)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
Revenue

Operating profit

Mil.YenQ2 FY2022
Q2 FY2021(*) Comprehensive profit%

Mil.Yen

4,468
58.7
2,816
37.3
Q2 FY2022
Basic earnings per
share

Q2 FY2022
Q1 FY2021

Profit attributable toowners of parent

Ordinary profit%

Mil.Yen

370
16.3
318
△7.7
233Mil.Yen( 23.2%)%

Mil.Yen

%

370
16.0
234
10.6
319
211
7.1
△4.7
Q2 FY2021 189Mil.Yen( 4.8%)

Diluted earnings per
share

Yen

Yen

56.91
53.17

56.18
50.86

(2) Consolidated Financial Position
Total assets
Q2 FY2022
FY2021(Note) Equity Capital

2.

Q2 FY2022

Total equity

Equity ratio

Mil.YenMil.Yen

6,593
7,136

4,424
4,376
4,265 Mil.Yen

%

64.7
59.1
4,216Mil.Yen

FY2021Dividends
Annual Dividend
End of Q1

End of Q2

Yen

End of Q3

Yen

FY20210.00－
FY20220.00－
FY2022(forecast)(Note) Revision to the most recently released dividend forecast

End of Q4

Total

Yen

Yen

Yen

－

51.00

51.00

－
: No

57.00

57.00

3. Consolidated Financial Forecast for the Fiscal Year Ending September 2022
(October 1, 2021 to September 30, 2022)(Percentages represent quarter-on-quarter / year-on-year % change)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Revenue
Mil.Yen%Mil.Yen%FY20228,550 20.6
737 25.1(Full year)(Note) Revision to the most recently released financial forecast―1―

Mil.Yen%Mil.Yen

%

Yen

737

19.0

461

12.1

111.90: No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.

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 FY2022

4,130,110 FY2021

4,106,320

Q1 FY2022

88 FY2021

65[3] Average number of shares during the term

Q1 FY2022**

4,114,079 Q2 FY2021

3,980,328

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 6 of Attached Materials.

―2―

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……………………………..4(1) Discussion of operating results……………………………………………………………………………4(2) Discussion of financial position……………………………………………………………………………5(3) Discussion of consolidated earnings forecasts and other forward-looking information……………..6

2. Quarterly Consolidated Financial Statements and Major Notes………………………………………..7(1) Quarterly consolidated balance sheet……………………………………………………………………7(2) Quarterly consolidated statement of income and statement of comprehensive income……………9(3) Quarterly consolidated statement of cash flows………………………………………………………11(4) Notes regarding the quarterly consolidated financial statements……………………………………..12(Notes regarding the going concern assumptions)…………………………………………………….12(Changes of accounting policy)………………………………………………………………………….12(Notes regarding significant changes in shareholders’ equity)……………………………………….12(Segment Information) ……………………………………………………………………………………12(Significant subsequent matter)………………………………………………………………………….12―3―

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.

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)
Revenue(%)

2,816,315

4,468,335

58.7

Operating profit

318,912370,952

16.3

Ordinary profit

319,549

370,591

16.0

211,636

234,115

10.6

Quarterly profit
attributable to owners ofparenta. Revenue
We recorded revenue of ¥4,468,335 thousand (up 58.7% year on year).
During the three months ended March 31, 2022, the quasi-state of emergency remained in effect most of the period
due to the spread of a new COVID-19 variant, which affected certain merchants, primarily restaurants, who wererequested to shorten business hours. However, initial sales, centered on sales of payment terminals, steadily
increased and stock-model revenue also showed steady growth with increased number of new installation,
contributing to recording revenue in excess of the forecast for the six months ended March 31, 2022 of ¥4,052
million announced at the beginning of the year.
Revenue by business model for the six months ended March 31, 2022 is as follows.
(Unit: Thousand yen)Six months ended March 31, 2022
(October 1, 2021 to March 31, 2022)
Initial (Initial sales)
Stock (Fixed fee sales)
Fee (Processing fee sales)
Spread (Merchant sales)
Total

Ratio (%)

3,098,100

69.3

392,376
520,919456,938

8.8
11.7
10.2

4,468,335

100.0

b. Operating profit
We recorded operating profit of ¥370,952 thousand (up 16.3% year on year).
During the three months ended March 31, 2022, although stock-model revenue, consisting of highly profitable stock,fee and spread revenues, showed sluggish growth due to the declaration of a quasi-state of emergency in addition
to the negative impact of seasonality on TRX volume and value, operating profit increased through our ongoing
efforts to promote sales and operation of payment terminals. We also secured a year-on-year increase in growthrate and recorded operating profit in excess of the forecast for the six months ended March 31, 2022 of ¥359 million
announced at the beginning of the year through appropriate cost management while making necessary investments
in various areas including continued employment of human resources to support growth.

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

c. Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥234,115 thousand (up 10.6% year on year).
(2) Discussion of financial position(a) Summary of assets, liabilities and net assets(Assets)
As of March 31, 2022, current assets decreased ¥640,975 thousand from September 30, 2021 to ¥5,148,602
thousand. This was mainly because merchandise increased ¥908,602 thousand as we increased the payment
terminal inventory to a safe level considering the situation of the semiconductor market, and cash and cash
equivalents decreased ¥1,815,279 thousand as a result of shortening the deposit cycle applicable to merchants
in a bid to enhance our competitive advantage in the offline cashless payment market. Non-current assets
increased ¥98,012 thousand from September 30, 2021 to ¥1,444,554 thousand mainly due to an increase insoftware of ¥135,640 thousand despite decreases in goodwill and customer-related assets of ¥22,219 thousandand ¥21,405 thousand, respectively, due to amortization.
As a result, total assets decreased ¥542,962 thousand from September 30, 2021 to ¥6,593,157 thousand.
(Liabilities)
As of March 31, 2022, current liabilities decreased ¥584,379 thousand from September 30, 2021 to ¥2,135,303
thousand. This was mainly because accounts payable and deposits received decreased ¥110,281 thousand and¥931,014 thousand, respectively, despite an increase in short-term loans payable of ¥500,000 thousand. Noncurrent liabilities decreased ¥6,797 thousand from September 30, 2021 to ¥33,229 thousand mainly due to adecrease in deferred tax liabilities of ¥6,554 thousand.
As a result, total liabilities decreased ¥591,176 thousand from September 30, 2021 to ¥2,168,532 thousand.
(Net assets)
As of March 31, 2022, total net assets increased ¥48,213 thousand from September 30, 2021 to ¥4,424,624
thousand. This was mainly because retained earnings increased ¥234,115 thousand due to recording of profit
attributable to owners of parent while retained earnings decreased ¥209,419 thousand due to distribution ofdividend from surplus.
(b) Cash flows
As of March 31, 2022, cash and cash equivalents (“cash”) decreased ¥1,815,278 thousand from September 30,
2021 to ¥1,618,341 thousand.
The following is a summary of cash flows from each activity during the six months ended March 31, 2022.
(Cash flows from operating activities)
Cash used in operating activities during the six months ended March 31, 2022 was ¥1,842,590 thousand (cashprovided of ¥130,842 thousand for the six months ended March 31, 2021). While cash increased due to recordingof profit before income taxes of ¥370,591 thousand, cash decreased due mainly to a decrease in deposits
received of ¥931,014 thousand, an increase in inventory of ¥908,580 thousand and an increase in tradereceivables of ¥149,415 thousand.
(Cash flows from investing activities)
Cash used in investing activities during the six months ended March 31, 2022 was ¥304,485 thousand (¥205,303
thousand for the six months ended March 31, 2021) mainly because cash decreased due to purchase ofintangible fixed assets of ¥299,608 thousand.
(Cash flows from financing activities)
Cash provided by financing activities during the six months ended March 31, 2022 was ¥331,797 thousand (cashused of ¥21,175 thousand for the six months ended March 31, 2021) mainly because cash increased due to anincrease in short-term loans payable of ¥500,000 thousand while cash decreased due to payments of dividendsof ¥188,449 thousand.

―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.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
There is no change in the consolidated earnings forecasts for the year ending September 30, 2022 from thosepreviously released on November 11, 2021.
In the offline cashless payment market in which the Group operates, the number of 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. Under such environment, the Group is focusing on salesof payment terminals meeting the needs of merchants, enhancement of payment processing centers, and acquisitionsof new merchants and alliance partners.
For the year ending September 30, 2022, although the future outlook remains uncertain due to the spread of COVID19 Omicron variant, we expect to record revenue of ¥8,550 million (up 20.6% year on year), operating profit of ¥737
million (up 25.1% year on year), ordinary profit of ¥737 million (up 19.0% year on year) and profit attributable to ownersof parent of ¥461 million (up 12.1% year-on-year) by steadily carrying out our growth strategies, including growth insales 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 of terminals in use.

―6―

Translation
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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, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

3,433,620
521,859
1,614,846
222,334

1,618,341
671,264
2,523,448
339,027

AssetsCurrent assets
Cash and cash equivalents
Trade accounts receivable
Merchandise
Other financial assets
Allowance of doubtful accounts
Total current assets△3,082△3,4795,789,578

5,148,602

Non-current assets
Property, plant and equipment
Intangible fixed assets
Software
Software in progress
Customer-related assets
Goodwill
Other intangible fixed assets

60,281

52,876

646,884
192,938
128,432
222,192
2,549

782,524
220,878
107,027
199,972
888

Total intangible fixed assets

1,192,997

1,311,291

Investments and other assets
Lease deposits

23,64523,224995
69,597
19

1,006
57,14319△995△1,006

Bankruptcy rehabilitation claims
Deferred tax assets
Other investments and other
Allowance for doubtful accounts
Total investments and other assets
Totale non-current assets
Total assets―7―

93,26280,386

1,346,541

1,444,554

7,136,119

6,593,157

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, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

Liabilities
Current liabilities
Account payable
Short term borrowing
Income taxes payable
Contract liabilities
Deposits received
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities

1,092,309－
1,129,466
89,73320,000244,006

982,028500,000
147,188
12,439198,451
58,13030,800206,265

Total current liabilities

2,719,682

2,135,303

Non-current liabilities
Deferred tax liabilities
Other non-current liabilities

39,326700

32,771
457－
144,166

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Non-controlling interests
Total net assets
Total liabilities and net assets―8―

40,02633,2292,759,709

2,168,532

1,605,446
1,618,557
994,020

1,617,987
1,631,098
1,018,716△1,252△1,971

4,216,771

4,265,829

159,639

158,794

4,376,410

4,424,624

7,136,119

6,593,157

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)
Q2 FY2021(October 1, 2020 toMarch 31, 2021)
2,816,315
1,836,706(Unit: Thousand yen)
Q2 FY2022(October 1, 2021 toMarch 31, 2022)
4,468,335
3,258,241

Gross profit

979,608

1,210,093

Selling, general and administrative expenses

660,695

839,141

Operating profit

318,912370,952

Non-operating income
Interest income
Other non-operating income

59
665

12
101

Total non-operating income

725

114

Non-operating expense
Interest expense
Other non-operating expense

87
2

475

Revenue
Cost of goods soldTotal non-operating expense
Ordinary profit
Extraordinary loss
Loss on retirement of non-current assets

－

89

475

319,549

370,591

898－

Total extraordinary loss

898－

Profit before income taxes

318,650

370,591

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

120,184
9,067

131,420
5,900

Total corporation income taxes

129,252

137,320

Profit189,398

233,270

Profit attributable to non-controlling shareholder（△）△22,238△844

Profit attributable to owners of parent

211,636

234,115―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.

Quarterly consolidated statement of comprehensive income(Q2 cumulative)
Q2 FY2021(October 1, 2020 toMarch 31, 2021)
189,398(Unit: Thousand yen)
Q2 FY2022(October 1, 2021 toMarch 31, 2022)
233,270

Comprehensive income

189,398

233,270(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling shareholder

211,636

234,115△22,238△844

Profit―10―

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 FY2021(From October 1, 2020 toMarch 31, 2021)(Unit :Thousand Yen)
Q2 FY2022(From October 1, 2020 toMarch 31, 2021)

318,650
101,503
22,219370,591
142,721
22,219(46,000)(31,603)(22,760)

10,800

1,174

407

(59)
87

(12)
475

(130,243)(424,327)
125,085
45,903
278,156(149,415)(908,580)(110,280)(931,014)(131,282)

269,389(1,714,975)

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 allowance for doubtful
accounts
Interest income
Interest expense
Decrease(increase) in trade accounts receivables
Decrease(increase) in inventories
Increase(decrease) in trade payables
Increase(decrease) in deposits received
Other, net
SubtotalInterest 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
Purchase of intangible fixed assets
Other, net
Net cash provided by (used in) investing activities

59

12

(87)
(138,519)(475)(127,152)

130,842(1,842,590)(7,368)(201,070)
3,135(4,857)(299,608)(18)(205,303)(304,485)－

500,000

Cash flows from financing activities
Net increase(decrease) in short term borrowing
Proceeds from share issuance by exercising shareoptions
Purchase of treasury shares
Dividend paid
Other, net

122,41325,080(478)(139,040)(4,070)(718)(188,449)(4,116)

Net cash provided by (used in) financing activities(21,175)

331,797

Net increase(decrease) in cash and cash equivalents(95,636)(1,815,278)

Cash and cash equivalents at beginning of period

2,946,028

3,433,620

Cash and cash equivalents at end of period

2,850,391

1,618,341―11―

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 in accounting policies, etc.)(Application of accounting standard for revenue recognition, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020), etc. and recognizes revenue at an amount that it expects to receive in exchange for thepromised goods or services when the control of the goods or services is transferred to a customer. As a result, theGroup changed the method of revenue recognition applied to projects to develop center functions for the purpose of
acquiring specific member merchants from recognizing the total amount of consideration received from a customer asrevenue at a point in time to recognizing over a period of time as a performance obligation is satisfied.
We applied the Accounting Standard for Revenue Recognition, etc. from October 1, 2021 pursuant to the transitional
treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition, with the
cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to October 1, 2021, adjusted to the beginning balance of retained earnings as of October 1, 2021. However, in
accordance with the method provided for in Paragraph 86 of the Accounting Standard for Revenue Recognition, we
did not apply the new accounting policy retrospectively to the contracts for which substantially all revenue wasrecognized under the previous method prior to October 1, 2021.
As a result, revenue for the six months ended March 31, 2022 decreased by ¥12,439 thousand, and operating profit,
ordinary profit and profit attributable to owners of parent decreased by ¥12,439 thousand, respectively. There was no
impact on the beginning balance of retained earnings as of October 1, 2021.
Pursuant to the transitional treatment provided for in Paragraph 28-15 of the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue arising fromcontracts with customers in the six months ended March 31, 2022 is not presented.
(Application of accounting standard for fair value measurement, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019), etc., and the new accounting policy provided for in the Accounting Standard for Fair
Value Measurement, etc. is applied prospectively pursuant to the transitional treatment provided for in Paragraph 19of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There was 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 theface-to-face payment processing services business, which is not material in terms of segment information disclosure.
(Significant subsequent matter)
Not applicable―12―