Summary of Consolidated Financial Statements for the Second Quarter FY2021 (IFRS)
May 12, 2021
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:

Ryu Muramatsu

Director, Executive Vice President

Scheduled submission date of quarterly
reportMay 13, 2021

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial results

Yes

URL: https://www.gmo-pg.com/en/corp/
Tel: +81-3-3464-0182

Scheduled date of commencement for
dividend payment-(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the Second Quarter, FY2021(From October 1, 2020 to March 31, 2021)(1) Consolidated Financial Statements (Cumulative)
Revenue
Mil. Yen

Q2 FY2021
Q2 FY2020

19,88815,494

Operating profit% Mil. Yen

28.4
-

6,593
4,688

Basic earnings per
share(Percentages represent year-on-year % change)

Profit before
income taxes%

Mil. Yen

40.6
-

6,638
5,248

% Mil. Yen

26.5
-

%

Mil. Yen

4,253 23.1
3,455 35.6

4,169
3,408

% Mil. Yen

22.3
32.2

4,649
3,580

%

29.9
59.5

Diluted earnings per
share

Yen
56.37
46.33

Q2 FY2021
Q2 FY2020

Profit attributableTotal
to owners ofcomprehensive
parentincomeProfit

Yen
55.07
45.24

(Note) Macro Kiosk Berhad has been deconsolidated from Q3 of Fiscal Year ending September 2020 and has been reclassified as
discontinued operations. As a result, the figures for revenue, operating profit and profit before income taxes exclude discontinued
operations and present the amounts for continuing operations only. The corresponding figures in the previous year of Q2 FY2020 havebeen similarly restated, and the year-on-year percentage figures for Q2 FY2020 not shown for this reason.

(2) Consolidated Financial Position
Total assets

Q2 FY2021
FY20202.

Ratio of total equity
Total equity attributable
attributable to owners ofto owners of parent
parent to total assets

Total equity

Mil. Yen

Mil. Yen

Mil. Yen%

198,048
192,02243,78433,453

41,91531,734

21.2
16.5

Dividends
Annual dividend
End of Q1
FY2020
FY2021
FY2021 (forecast)(Note)

3.

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00

52.00

52.00

0.00

54.00

54.00

Revision to the most recently released dividend forecast:

No

Consolidated Financial Forecast for the Fiscal Year Ending September 2021
(From October 1, 2020 to September 30, 2021)(% represents year-on-year change)

Profit before
Operating profit
income taxes

Revenue
Full year(Note )

Mil. Yen%

39,792

20.4

Mil. Yen%

12,985 25.0

Mil. Yen

Revision of the most recently released financial forecast:Profit% Mil. Yen

12,426 13.1

Profit attributable Basic earnings
to owners of parent per share%

Mil. Yen%

Yen

8,042 4.5

7,930

4.0

107.78No

The figures for revenue, operating profit and profit before income taxes present the amounts for continuing operations
only. The figures for the corresponding previous term have been restated to present continuing operations only, and theyear-on-year percentages are computed on this basis.

―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

Q2 FY2021: 75,540,772

FY 2020:

74,301,000Q2 FY2021: 714,950
Q2 FY2021: 73,968,193

FY 2020: 714,781
Q2 FY2020: 73,573,232(Note 1) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan (BIP) trust and J-ESOP (709,705 shares for FY2020; 709,705 shares for Q2
FY2021.)* These quarterly financial statements are not subject to the quarterly review procedures by certified public accountants or
auditors.

* 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) Review of consolidated earnings forecasts and other forecasts” under “1. Qualitative
Information on Consolidated Financial Statements for the Quarter” on page 9 of the attachment.
2 Results Presentation for Investors and Analysts to be held on May 13, 2021. Supporting materials and a video of thepresentation will be made available on the company's website after the event.

―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）Review of consolidated earnings forecasts and other 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 the consolidated financial statement…………………………………………………………..

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

17② Trade and other receivables…………………………………………………………………………………… 17③ Deposits to subsidiaries and affiliates………………………………………………………………………...

―3―

17

1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Consolidated operating results
Forward-looking statements in the document are based on the judgement of the Group at the end of the quarter underreview.
Macro Kiosk Berhad has been deconsolidated from third quarter of Fiscal Year ending September 2020 and has been
reclassified as discontinued operation in the condensed quarterly financial statements. As a result, figures for revenue,
operating profit and profit before income taxes in Q2 FY2020 have been restated to exclude the discontinued operationand present the amounts for continuing operations only.
①

Consolidated operating results
The Group announces its earnings results for the cumulative second quarter of the consolidated fiscal year 2021
(October 1, 2020 to March 31, 2021) as follows.
(Unit: Thousand yen)
Q2 FY2020(From October 1, 2019
to March 31, 2020

Q2 FY2021(From October 1, 2020
to March 31, 2021

Rate of change (%)

Revenue

15,494,706

19,888,324

28.4

Operating profit

4,688,344

6,593,129

40.6

Profit before income taxes

5,248,488

6,638,149

26.5

3,408,373

4,169,621

22.3

Profit attributable to ownersof parent
a. Revenue

The Group’s revenue reached to ¥19,888 mil., up by 28.4% year-on-year (YoY). Overall trends were favorablefrom the increased adoption of cashless payments and the limited adverse impact from COVID-19. The Payment
Processing Business revenue grew, led by steady growth of the E-Commerce (EC) market for online andrecurring payments coupled with the expansion of the Group’s services to the offline domain. The Money Service
Business (MSB) revenue grew, not only from the strong trends seen in GMO Payment After Delivery transactions,a type of deferred payment service, but also from the growth of remittance and early payment services. Payment
Processing Business revenue was ¥14,456 mil. (up 33.1% YoY), Money Service Business revenue was ¥5,092
mil. (up 16.7% YoY) and Payment Enhancement Business revenue was ¥343 mil. (up 24.0% YoY). For details,
please refer to page 5 of “② Results by segment” found under “(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

Q2 FY2020(From October 1, 2019
to March 31, 2020

Q2 FY2021(From October 1, 2020
to March 31, 2021

Rate of change(%)

Initial(Initial revenue)

1,384,157

2,008,236

45.1

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

2,770,790

3,133,056

13.1

4,020,979

5,273,118

31.1

7,318,779

9,473,912

29.4

Total

15,494,706

19,888,324

28.4

―4―

b. Operating profit
Operating profit reached ¥6,593 mil., up by 40.6% YoY, making steady progress towards achieving the full year
earnings forecast for the Fiscal Year ending September 2021. This is due to revenue growth and that credit costs
were controlled at a certain level in the Money Service Business segment.
By segment, Payment Processing Business segment profit (operating profit) was ¥7,215 mil., up 34.1% YoY;
Money Service Business segment profit (operating profit) stood at ¥1,160 mil., up 39.9% YoY; Payment
Enhancement Business segment profit (operating operating) of ¥58 mil., up 51.1% YoY.
For details, please refer to “② Results by segment” of the “(1) Consolidated operating results”.
c. Profit before income taxes
Pre-tax profit reached ¥6,638 mil., up 26.5% YoY. The reason the pre-tax profit growth rate of 26.5% YoY is lower
than the operating profit growth rate of 40.6% YoY, is mainly due to equity method investment gains of ¥421mil.
recorded in the same period of the previous fiscal year.
② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment

Q2 FY2020(From October 1, 2019
to March 31, 2020

Q2 FY2021(From October 1, 2020
to March 31, 2021

Rate of change(%)

Payment Processing Business
Revenue
Operating profit

10,858,319
5,380,311

14,456,455
7,215,660

33.1
34.1

Money Service Business
Revenue
Operating profit

4,364,228
829,669

5,092,720
1,160,380

16.7
39.9

277,319
38,622

343,968
58,34224.0
51.1

Adjustments
Revenue
Operating profit (△=loss)△5,160△1,560,259△4,820△1,841,253

－
－

Total
Revenue
Operating profit

15,494,706
4,688,344

19,888,324
6,593,129

28.4
40.6

Payment Enhancement Business
Revenue
Operating profit―5―

aa. Payment Processing Business
The main focus areas of the Payment Processing Business are online and recurring payment processing services,offline payment processing service and, support services to financial institutions and financial service providers.
In the online payment and recurring payment domain, we focused our efforts to acquire large merchants and
SMEs across various sectors and expand our services to non-EC operators given the backdrop of the steadily
expanding E-commerce (EC) market.
The impact from the COVID-19 contagion was limited during the second quarter under review, much like theprevious quarter. In the online payment and recurring payment domain, micropayment transactions increased
from the rising adoption of cashless payment and expanding EC market as well as increased transactions indigital content, public utilities and taxes. This led to transaction value growing by 38.2% YoY and transaction
volume growing by 44.8% YoY. Additionally, the new projects, including “SMS Sentaku-Barai” (SMS Choice ofPayment), a service to digitalize payment of electric power bills promoted by TEPCO Energy Partner, Inc. which
commenced during the first quarter, contributed to revenues in this segment.
In the offline domain, sales of payment terminals trended favorably thanks to the cashless payment promotions
by local/national government and others despite the adverse effect of COVID-19 on offline consumption.
Additionally, the number of payment terminals sold increased for the next generation payment platform “stera”
and orders related to the Unattended Market trended favorably, which is one of our target markets consisting ofticket machines and fare adjustment machines, etc.
As a result, segment revenues reached ¥14,456 mil., up 33.1% YoY and segment profit (operating profit) was¥7,215 mil. up 34.1% YoY.
b. Money Service Business
Money Service Business (MSB) consists of Early Payment Service to help merchants improve their cash flow byreceiving sales proceeds earlier according to the merchant’s cash cycle needs; Transaction Lending Service tolend growth capital to merchants based on their payment and other related data; Lending service to overseas
operators; Remittance Service; and GMO Payment After Delivery offered by a consolidated subsidiary GMO
Payment Service, Inc.
In this second quarter under review, this segment’s revenues and profits trended favorably from the steady growthtransactions of GMO Payment After Delivery service fueled by nesting demand despite some merchants that were
adversely affected by COVID-19 and from controlling credit related costs. Remittance service grew on the backof the increase in memberships at some merchants using this service, and Early Payment service revenues also
increased together with the Payment Processing service. Lending service to overseas operators continues tomake progress in securing new potential customers that can generate stable revenues in the future. Additionally,
the financial services is progressing to expand services and further the collaboration with financial institutions toprovide support inter-corporate payments.
As a result, segment revenue reached ¥5,092 mil., up 16.7% YoY and segment profit (operating profit) reached¥1,160 mil., up 39.9% YoY.

―6―

c. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service which provides analytics andadvertisement management service based on transactional trends to support our merchants’ growth, and “Medical
Kakumei byGMO” service, a reservation management system to enable operational efficiency at the reception
counters offered exclusively to medical institutions by our consolidated subsidiary GMO Medical Reservations
Technology Co. Ltd.
GMO Medical Reservations Technology Co. Ltd. offers a smartphone-based app to make reservations, fill in
medical questionnaires, complete the reception and payment, as well as manage patient registration cards for
multiple medical institutions that adopt this service on a smartphone. As in the previous quarter, heightened
demand for this service due to COVID-19 continued to contribute to this segment’s revenue and profit.
As a result of the above, segment revenue was ¥343 mil., up 24.0% YoY and segment profit (operating profit)
was ¥58 mil. up 51.1% YoY.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment

Major service

Major companies of the service

Payment processing service
Payment
Processing
Business(Online billing and recurring billing)
Payment processing service(Offline payment)
GMO Payment After Delivery

Money Service
Business

Remittance service

Transaction lending
Overseas lending

GMO Financial Gate, Inc. (consolidated subsidiary)
GMO Payment Service, Inc. (consolidated
subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)

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

Online Advertising

Enhancement
Business

GMO Epsilon, Inc. (consolidated subsidiary)

GMO Payment Gateway, Inc.

Early Payment service
Payment

GMO Payment Gateway, Inc.

Medical Kakumei byGMO―7―

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)(2) Status of consolidated financial position
Assets, liabilities and equity
a. Assets
Total assets at the end of the consolidated second quarter under review increased by ¥6,025 mil. from the endof the previous fiscal year end to reach ¥198,048 mil. This is mainly due to an increase in operating and otherreceivables of ¥1,769 mil. and advances paid of ¥11,517 mil., that was partially offset from the decrease in cash
and cash equivalents of ¥5,102 mil. and deposits to subsidiaries and affiliated companies of ¥3,000 mil.
The Group has ¥1,930 mil. in deposits to subsidiaries and affiliated companies included in the balance of cash
and cash equivalents at the end of the consolidated second quarter under review, as stated in ➀ Cash andcash equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥2,000
mil. of deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, thetotal balance of the Group’s deposits to subsidiaries and affiliated companies stands at ¥3,930 mil. These
deposits are GMO Internet’s group-wide cash on hand that is deposited under the cash management system(CMS) implemented and managed by GMO Internet Inc. This allows the Group to withdraw necessary funds
without the need to wait until the preset CMS repayment date, by registering a request after taking into accountthe number of days required for processing the application.
b. Liabilities
Balance of liabilities at the end of the consolidated second quarter under review stood at ¥154,263 mil., adecrease of ¥4,305 mil. from the end of the previous consolidated fiscal year, mainly due to a decrease inborrowings of 2,400 mil. and corporate bonds of ¥9,239 mil. which was partially offset by the increase in deposits
received of ¥6,291 mil.
c. Equity
Equity balance at the end of the consolidated second quarter under review was ¥43,784 mil., an increase of¥10,331 mil. from the end of the previous consolidated fiscal year. This was mainly due recording the quarterly
net profit of ¥4,253 mil. and the conversion of convertible bond-type bonds with stock acquisition rights of ¥9,402
mil., which was partially offset by the decline in retained earnings of ¥3,826 mil. from dividend payouts.
②

Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated second quarter under review decreased by¥5,102 mil. versus the balance at the start of the term, to reach ¥90,728 mil. The state of cash flows over thesecond quarter under review is discussed below.

a. Cash flow from operating activities
Net funds used by operating activities during the consolidated second quarter under review amounted to ¥2,113
mil., which compares to ¥16,379 mil. in net funds provided in the same period of the previous year. This resulted
from cash outflows from (i) an increase in operating and other receivables of ¥1,624 mil., (ii) an increase inadvances paid of ¥11,517 mil. and (iii) corporate and income tax payment of ¥2,768 mil., which was partially
offset by cash inflows of (i) profit before tax of ¥6,638 mil. and (ii) increase in deposits received of ¥6,290 mil.
b. Cash flow from investing activities
Net funds provided by investing activities during the consolidated second quarter under review totaled ¥3,422
mil., which compares to net funds used of ¥1,831 mil. in the same period of the previous year. This is due to cash
inflows from (i) proceeds from sale of investment securities of ¥489 mil., (ii) proceeds from withdrawals from
deposits to subsidiaries and affiliated companies of ¥5,000 mil., and (iii) proceeds from sales of other financial
assets ¥700 mil., which was offset by cash outflows from (i) acquisition of intangible assets of ¥732 mil. and (ii)payment into deposits to subsidiaries and affiliated companies of ¥2,000 mil.

―8―

c. Cash flow from financing activities
Net funds used by financing activities over the consolidated second quarter under review was ¥6,467 mil., which
compares to net funds used of ¥4,246 mil. in the same period of the previous year. This is due to cash outflows
from the (i) net decrease in short term borrowings of ¥2,000 mil., (ii) repayments of long-term borrowings of ¥400
mil., and (iii) dividend payouts of ¥3,821 mil.

(3) Review of consolidated earnings forecasts and other forecasts
The Group’s core business is positioned within the E-commerce (EC) market in Japan, and Japan’s B2C EC market
for merchandize continues to grow very rapidly, helped by favorable externalities such as increased penetration ofsmartphones and logistic/distribution industry reforms. At the same time, the broader EC market, which is ouraddressable market, is expanding from the widening scope of EC market driven by the online migration of B2B andC2C transactions. Furthermore, online migration of payments for non-merchandise services, public payments suchas utilities, taxes and dues, as well as payments related to our daily life such as medical expenses is progressing
solidly. GMO Financial Gate, Inc., a consolidated subsidiary which addresses the offline market, is contributing to
expanding the scope of business from business opportunities in the offline market arising from the increased
penetration of various cashless methods of payments including credits cards.
For the Fiscal Year ending September 2021, despite the possibility of being affected by the slump in private
consumption from the resurgence of COVID-19 contagion, the adverse impact from the COVID-19 is thought to beminimal as of this writing. This is due to the continuing trends of cashless payments, online migration of payments, inaddition to the business’ characteristic of being resilient against macro-economic fluctuations due to the diverse baseof merchant across various industries to which the services are provided to.
Revenue expansion is expected in all reportable segments from the continuing efforts to acquire large and highgrowth merchants and financial institutions, order wins for large projects, expanding DX platform services and, theearly monetization of new services such as the next generation payment platform stera.
The earnings forecast for Fiscal Year ending September 2021 is revenues of ¥39,792 mil. (up 20.4% YoY), operating
profit of ¥12,985 mil. (up 25.0% YoY), pre-tax profit of ¥12,426 mil. (up 13.1% YoY), net profit of ¥8,042 mil. (up 4.5%
YoY) and profit attributable to owners of parent of ¥7,930 mil. (up 4.0% YoY).

―9―

2. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2021)

Notes

End of previous consolidated
fiscal year
(September 30, 2020)

Cash and cash equivalents➀

95,830,807

90,728,267

Operating and other receivables②

10,782,296

11,551,859

Advances paid

31,039,748

42,557,450

Accrued revenue

23,585,142

24,141,132

Inventories

1,440,999

1,863,333

5,000,000

2,000,000

Other financial assets

1,163,608

458,545

Other current assets

537,329437,253

169,379,933

173,737,844

Tangible assets

3,714,793

4,058,553

Goodwill and other intangible assets
Investments accounted for using theequity method
Operating and other payables

4,854,253

5,072,160

3,740,933

4,227,500

1,975,100

2,975,100

Other financial assets

6,711,766

6,121,871

Deferred Tax Assets

1,530,494

1,730,132

AssetsCurrent assets

Deposits to subsidiaries and affiliates③

Total current assets
Non-current assets②

Other non-current assets
Total non-current assets
Total assets―10―

115,346

125,177

22,642,689

24,310,495

192,022,622

198,048,339

NotesEnd of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2021)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

4,296,647

4,867,358

Accrued expenses

19,385,695

19,673,384

Deposits received

87,059,213

93,350,651

Borrowings

18,800,400

16,531,600

Other financial liabilities

400,217585,218

Income taxes payable, etc.

2,491,098

2,263,041

Provisions

352,812332,551

Other current liabilities

3,383,652

3,569,939

Total current liabilities

136,169,737

141,173,745

16,814,650

7,575,347

Non-current liabilities
Corporate bonds
Borrowings

131,400－

3,013,338

3,099,788

Provision

260,843

261,011

Deferred tax liabilities

54,17046,764

Other financial liabilities

Other non-current liabilities

2,124,966

2,107,139

Total non-current liabilities

22,399,369

13,090,050

158,569,106

154,263,796

4,712,900

9,447,247

Capital surplus

5,675,561

10,386,149

Retained earnings

20,725,465

21,416,750

Treasury stock△1,149,341△1,151,796

1,769,560

1,817,126

31,734,145

41,915,478

1,719,369

1,869,064

33,453,515

43,784,543

192,022,622

198,048,339

Total liabilities
EquityCapital stock

Other items of equity
Total equity attributable toowners of parent
Minority interests
Total equity
Total liabilities and equity―11―(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q2 FY2020(From October 1, 2019
to March 31, 2020)

Continuing Operations
Revenue
Cost of revenue(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020
to March 31, 2021)

15,494,706△4,409,245

19,888,324△5,987,189

11,085,461

13,901,135

81,322

109,412△6,435,934△7,395,218△42,504△22,200

Operating profit

4,688,344

6,593,129

Financial income

242,192

211,693

Financial expense△103,107△105,582

421,058△61,091

5,248,488

6,638,149△1,784,297△2,384,337

3,464,190

4,253,812△8,736－

3,455,453

4,253,812

3,408,373

4,169,621

47,08084,1903,455,453

4,253,812

46.30

56.37

Gross profit
Other income
Selling, general and administrative
expenses
Other expense

Equity method investment gain/loss (△=loss)
Profit before income taxes
Corporate and income tax expenses
Profit from continuing operations
Discontinued Operations
Profit/Loss from discontinued(△=loss)
Quarterly profit

operations

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (yen) (△=loss)
Continuing operations
Discontinuing operations

0.03

－

46.33

56.37

Continuing operations

45.21

55.07

Discontinuing operations

0.03

－

45.24

55.07

Total
Diluted earnings per share (yen) (△=loss)

Total

―12―

Condensed consolidated statement of comprehensive income

Notes

Q2 FY2020(From October 1, 2019
to March 31, 2020)

Profit(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020
to March 31, 2021)

3,455,453

4,253,812△160,035△212,861

Shares of other comprehensive incomeof equity method affiliates

238,696

409,060

Total of Items that will not be reclassified
to profit or loss

78,661

196,199△57,720

237,907104,139△38,332

46,418

199,575

125,080

395,774

3,580,534

4,649,586

3,538,305

4,565,363

42,22884,2233,580,534

4,649,586

Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income

Items that will be reclassified to profit or loss
Exchange differences on translation offoreign operations
Shares of other comprehensive incomeof equity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―13―

(3) Condensed consolidated statement of changes in equity
Second quarter of the previous consolidated fiscal year (From October 1, 2019 to March 31, 2020) (Unit: Thousand yen)
CapitalNotes
stockBalance as of October 1,
2019
Cumulative effects ofaccounting changes
Restated Balance
ProfitOther comprehensive
incomeQuarterly comprehensive
incomeDisposal of treasury
sharesDividends
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Other increase/decrease
Total transactions withownersBalance as of March 31,
2020

4,712,900－
4,712,900

CapitalsurplusRetained Treasury
earnings
stock5,847,480 15,884,444 △1,181,846－△97,243

Total equity
Other
attributable Minority
items ofto owners of interests
equityparent1,231,655－－

5,847,480 15,787,200 △1,181,846

1,231,655

Total
Equity26,494,633 1,044,664 27,539,297△97,243 △38,971△136,214

26,397,389 1,005,692 27,403,082－－

3,408,373－－

3,408,373

47,0803,455,453

－

－

－

－

129,932

129,932△4,851125,080－－

3,408,373－

129,932

3,538,305

42,2283,580,534－

33,085－32,504－65,590－65,590－－ △2,648,221－－△2,648,221－－

25,788－△25,788

－

－

－

－

85,490－－△22

85,4689,740

95,208－△9,528－－－△9,528－△9,528

－

－

－

－

△313

△313

－

△313

109,047 △2,622,433

32,504△26,125△2,507,006

5,956,527 16,573,141 △1,149,341

1,335,462

27,428,689 1,057,661 28,486,351－
4,712,900－ △2,648,221

9,740 △2,497,265

Second quarter of the current consolidated fiscal year (From October 1, 2020 to March 31, 2021) (Unit: Thousand yen)
CapitalNotes
stockBalance as of October 1,
2020
ProfitOther comprehensive
incomeQuarterly comprehensive
incomePurchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Conversion of convertiblebond-type bonds withstock acquisition rights
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Changes in ownershipinterest in associates
Total transactions withownersBalance as of March 31,
2021

4,712,900

CapitalsurplusRetained Treasury
earnings
stock5,675,561 20,725,465 △1,149,341

Total equity
Other
attributable Minority
items ofto owners of interests
equityparent
1,769,560

Total
Equity31,734,145 1,719,369 33,453,515－－

4,169,621－－

4,169,621

84,1904,253,812

－

－

－

－

395,741

395,74133

395,774－－

4,169,621－

395,741

4,565,363

84,2234,649,586－－－△2,454－△2,454－△2,454－－ △3,826,483－－△3,826,483

－

－

－

－

－

4,734,347

4,667,934－－－

9,402,282－

9,402,282－－

348,146－△348,146

－

－

－

－

51,670－－△28

51,642－

51,642－△21,071－－－△21,071

129,142

108,071－

12,054－－－

12,054－

12,0544,710,588 △3,478,337△2,454△348,174

5,615,970

65,471

5,681,441

9,447,247 10,386,149 21,416,750 △1,151,796

1,817,126

41,915,478 1,869,064 43,784,543

4,734,347―14―－ △3,826,483－ △63,671△63,671(4) Condensed consolidated statement of cash flows

Notes(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020
to March 31, 2021)

Q2 FY2020(From October 1, 2019
to March 31, 2020)

Cash flow from operating activities
Profit before income taxes
Profit before income taxes fromdiscontinued operations (△=loss)
Depreciation & Amortization
Impairment Loss
Financial income and expense
Equity method investment gain/loss(△=increase)
Increase/decrease in inventories(△=increase)
Increase/decrease in operating andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
In/Decrease in accrued revenues(△=increase)
In/Decrease in operating payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decreaseinothercurrent
liabilities(△=decrease)
Other
SubtotalInterest and dividends received
Interest paid

5,248,488

6,638,149△803－

734,761

903,384

89,272－△122,285△106,111△421,058

61,091△9,523△422,334

305,239△1,624,043△1,033,247△11,517,702△2,943,858△556,097

682,440

570,370

2,175,539

157,424

13,101,268

6,290,468

211,337

180,918

213,312

135,729

18,230,884

711,248

20,99012,602△78,697△69,248

Corporate income taxes paid

△1,793,330△2,768,352

Cash flow from operating activities

16,379,846△2,113,749△349,008△46,140△766,698△732,084

Purchase of investment securities
Proceeds from sale of investment
securities
Proceeds from redemption of
investments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal of
deposits to subsidiaries and affiliates
Purchase of other financial assets
Proceeds from sales of otherfinancial assets
Others△909,028△54,132－

489,922297,233

46,842－△2,000,000－

5,000,000△101,937△63

49,387700,164△50,986

18,037

Cash flow from investing activities△1,831,038

3,422,545

Cash flow from investing activities
Purchase of property, plants andequipment
Purchase of intangible assets―15―Notes(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020
to March 31, 2021)

Q2 FY2020(From October 1, 2019
to March 31, 2020)

Cash flow from financing activities
In/Decrease in short-termborrowings (△=decrease)
Repayment of long-term borrowings△1,000,000△2,000,000△400,200△400,200－△2,454

Dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
Other△2,647,589△3,821,736－△63,671－

122,413△198,212△301,850

Cash flow from financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period△4,246,002△6,467,498△9,60956,162

10,293,195△5,102,540①

52,013,447

95,830,807①

62,306,643

90,728,267

Payment for stock buyback―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, 2020)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2021)

94,880,807

88,798,267

950,000

1,930,000

95,830,807

90,728,267

Cash and cash equivalents
Deposits toand affiliates

subsidiaries

Total
②

Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2020)

Accounts receivable - trade5,187,311

5,692,043

Operating loans

6,040,284

7,340,934

Other

1,628,262

1,597,189△98,461△103,208

Total

12,757,396

14,526,959

Current assets

10,782,296

11,551,859

Non-current assets

1,975,100

2,975,100

12,757,396

14,526,959

Allowanceaccounts

fordoubtful

Total③

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

―17―