Summary of Consolidated Financial Statements for the Third Quarter FY2023 (IFRS)
August 9, 2023
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

URL:

Representative:
Contact:

Issei Ainoura
Ryu Muramatsu

President & Chief Executive Officer
Director, Executive Vice President

Scheduled submission dateAugust 10, 2023
of quarterly report
Supplemental materials preparedYes
for financial results
Information
meetingarrangedYes
related to financial results

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

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

１．Consolidated Financial Statements for the Third Quarter, FY2023(From October 1, 2022 to June 30, 2023)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue
Mil Yen(Percentages represent year-on-year % change)％ Mil Yen

Profit before
Quarterly Profit
income taxes％ Mil Yen89

％ Mil Yen

47,000 27.2 16,022 25.3 15,954 △47.7 10,795 △49.3
36,956 21.0 12,788 25.1 30,500 189.8 21,298 201.2

Q3 FY2023
Q3 FY2022

Basic earnings per
share
Q3 FY2023
Q3 FY2022

Profit attributableTotal
to owners of comprehensive
parentincome％ Mil Yen

Mil Yen％

10,515 △50.2 13,348 △57.8
21,129 204.6 31,606 296.0

Diluted earnings per
share

Yen

Yen

138.65278.60137.23275.19(2) Consolidated Financial Position
Total assets
Q3 FY2023
FY2022

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

Total equity

Mil Yen

Mil Yen

Mil Yen%294,874
273,407

90,481
89,26088,025
87,12229.9
31.9

２．Dividends
Annual dividend
End of Q1
FY2022
FY2023
FY2023 (forecast)(Note)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00
0.00

160.00160.00

82.00

82.00

Revision to the most recently released dividend forecast:No

３．Consolidated Financial Forecast for the Fiscal Year Ending September 2023
(From October 1, 2022 to September 30, 2023)(% represents year-on-year change)

Revenue
Full Year
(Note)

Operating profit

Mil Yen%

Mil Yen%59,10017.5

20,311

25.0

Profit before
income taxes
Mil Yen%18,837 △45.8

Revision of the most recently released financial forecast:

―1―

No

Profitearnings
attributable to Basicowners of parent per share

ProfitMil Yen%

12,635 △48.1%

Yen12,368 △48.8

Mil Yen163.08

※

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

Q3 FY2023: 76,557,545

FY 2022:76,557,545

Q3 FY2023: 715,071
Q3 FY2023: 75,842,486

FY 2022: 714,996
Q3 FY2022: 75,842,549(Note 1) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan trust and J-ESOP (709,705 shares for FY2022; 709,705 shares for Q3
FY2023.)* These quarterly financial statements are not subject to the quarterly review procedures.
* Notes regarding the appropriate use of financial forecast and other important notes
1. The above forecasts are outlooks based on information currently available and include various uncertain factors.
Actual performance may differ substantially from the forecasts due to changes in business conditions and otherfactors. For the assumption on which financial forecasts are based and matters to be considered in using financial
forecasts, please refer to “(3) 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 August 10, 2023. Supporting materials and a video ofthe presentation will be made available promptly 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
under review.
Consolidated operating results①

The Group announces its earnings results for the cumulative third quarter of the consolidated fiscal year 2023
(October 1, 2022 to June 30, 2023) as follows.
(Unit: Thousand Yen)
Q3 FY2022(From October 1, 2021
to June 30, 2022

Q3 FY2023(From October 1, 2022
to June 30, 2023

Rate of change (%)

Revenue

36,956,780

47,000,632

27.2

Operating profit

12,788,081

16,022,020

25.3

Profit before income taxes

30,500,544

15,954,566△47.7

21,129,578

10,515,637△50.2

Profit attributable to owners ofparentａ. Revenue

Revenue reached ¥47,000 mil, up 27.2% YoY. The transaction volume and value, which is the sum total of online
billing, recurring billing, offline payment and GMO Payment After Delivery, increased by 28.3% YoY and by 32.9%
YoY, respectively. As a result, the Payment Processing Business revenue reached ¥35,792 mil (up 28.5% YoY),
Money Service Business (MSB) revenue was ¥10,393 mil (up 23.5% YoY) and Payment Enhancement Businessrevenue was ¥832 mil (up 16.2% YoY). For details, please refer to page 5 of “② Results by segment” foundunder “(1) Consolidated operating results” of “1. Qualitative Information on Consolidated Financial Statements
for the Quarter”.
Revenue breakdown by business model is as follows.
(Unit: Thousand Yen)
Business model

Q3 FY2022(From October 1, 2021
to June 30, 2022

Q3 FY2023(From October 1, 2022
to June 30, 2023

Rate of change(%)

Initial(Initial revenue)

5,329,724

8,812,192

65.3

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

5,836,563

6,934,834

18.8

9,823,863

12,999,067

32.3

15,966,628

18,254,537

14.3

36,956,780

47,000,632

27.2

Total

―4―

ｂ. Operating profit
Operating profit reached ¥16,022 mil, up by 25.3% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2023 (FY2023).
By segment, Payment Processing Business segment profit (operating profit) was ¥16,012 mil, up 18.4% YoY;
Money Service Business segment profit (operating profit) stood at ¥2,270 mil, up 10.2% YoY; Payment
Enhancement Business segment profit (operating profit) of ¥207 mil (up 21.4% YoY).
For details please refer to page 5 of “② Results by segment” of the “(1) Consolidated operating results” of “1.
Qualitative Information on Consolidated Financial Statements for the Quarter”.
ｃ. Profit before income taxes
Pre-tax profit reached ¥15,954 mil, down 47.7% YoY. The reason the cumulative Q3 FY2023 pre-tax profit
declined by 47.7% YoY compared to the operating profit growth rate of 25.3% YoY is due to recording gain onsale of affiliate accounted for using the equity method of ¥16,419 mil, arising from the transfer of all the sharesof the former equity method affiliate 2C2P Pte. Ltd.
②

Results by segment
Performance by reportable segment is explained below.
（単位：千円）Segment
Payment Processing Business
Revenue
Operating profit (△=loss)

Q3 FY2022(From October 1, 2021
to June 30, 2022

Q3 FY2023(From October 1, 2022
to June 30, 2023

Rate of change(%)

27,846,597
13,524,683

35,792,321
16,012,960

28.5
18.4

8,414,516
2,061,007

10,393,189
2,270,585

23.5
10.2

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

716,867
170,633

832,923
207,148

16.2
21.4△21,200△2,968,242△17,801△2,468,674

－
－

Total
Revenue
Operating profit (△=loss)

36,956,780
12,788,081

47,000,632
16,022,020

27.2
25.3

―5―

ａ. Payment Processing Business
The Payment Processing Business focusses on expanding payment processing services for online billing,recurring billing, and offline payments, as well as providing Banking as a Service (BaaS) support to financial
institutions and business operators. In the online billing and recurring billing domain, we focused our efforts toacquire large and medium-to-small sized merchants across various industries as well as expand our services toa wide array of non-EC merchants, given the backdrop of the steadily expanding E-Commerce (EC) market.
In the third quarter under review, the online billing and recurring billing domains showed a continued increase in
online payments to purchase daily goods, digital content and public dues/taxes as internet usage becomes
habitual since the nesting consumption behavior during COVID-19 pandemic. In addition, online payments wereadopted by new industries given the increasing demand for digital transformation (DX). Furthermore, with theincrease in travel and outings from the normalization of economic activities thanks to reclassifying COVID-19 in
the same category as common infectious diseases in May, payments increased in the non-merchandise domain,
especially in travel and ticket sectors. However, in the merchandise domain, small-scale operators continue tobe adversely affected from the cycling through of nesting demand and the shift towards offline consumption,
despite signs of recovery at some large-scale merchants.
In the offline domain, GMO Financial Gate, Inc.’s initial revenue reached ¥8,587 mil (up 64.0% YoY), mostly
consisting of sales of ‘stera’ payment terminals, thanks to high volumes of payment terminal shipments used forlarge-scale projects from the beginning of the fiscal year to this quarter. In addition, transaction volume and value
trended favorably from the recovery in consumption fueled by the normalization of economic activities as well as
the partial contribution from inbound demand with the increase in inbound tourists.
Contribution to segment revenue also came from growth of the Processing Platform service, which is part of the
BaaS (Banking as a Service) support service, by capturing cashless payment and DX needs at financial
institutions and business operators.
As a result, segment revenue reached ¥35,792 mil, up 28.5% YoY, however, segment profit (operating profit)
was ¥16,012 mil, up 18.4% YoY due to recording a partial reversal of one-time expenses in this third quarter, thatwas incurred in previous quarter.
ｂ. Money Service Business
Money Service Business (MSB) consists of Early Payment service to help merchants improve their cash flow;
Transaction Lending service, a loan service for merchants; Lending service to overseas FinTech operators;
Remittance service; Instant Salary byGMO, a salary prepayment service, and GMO Payment After Delivery
provided by the consolidated subsidiary GMO Payment Service, Inc.
During the third quarter under review, revenue from GMO Payment After Delivery, a BNPL payment method
service, increased from the acquisition of large merchants and the impact of rate revisions despite the lingering
negative impact from the cycling through of nesting demand in the merchandise domain. Also, loan balance grew
43.4% YoY for the lending service to overseas FinTech operators particularly in North America and India, which
contributed to the segment profit.
As a result, segment revenue reached ¥10,393 mil, up 23.5% YoY, however, segment profit (operating profit)
reached ¥2,270 mil, an increase of 10.2% YoY due to higher credit costs for GMO Payment After Delivery andchanges in the segment revenue mix.

―6―

ｃ. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service to support the revenue growth atmerchants the Group transacts with, and “Medical Kakumei byGMO,” a reservation management system toenable operational efficiency at reception counters offered exclusively to medical institutions, provided by the
consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
In the third quarter under review, demand increased for services offered by GMO Medical Reservation
Technology Co. Ltd., such as smartphone-based app to make reservations, fill out medical questionnaires,complete reception and payment as well as to consolidate multiple patient registration cards from medical
institutions on the smartphone, resulting in revenue growth of 37.0% YoY. On the other hand, online advertising
revenue decreased from decline in customer demand.
As a result of the above, segment revenue was ¥832 mil, up 16.2% YoY and segment profit (operating profit)
was ¥207 mil, up 21.4% YoY.
The table below shows the companies providing the various businesses/services by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)

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

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

GMO Payment Service, Inc.
(consolidated subsidiary)

Remittance service
Money Service
Business

Transaction Lending
Overseas Lending

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

Early Payment service
Payment

GMO Payment Gateway, Inc.

Online Advertising service

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.
GMO Medical Reservations Technology Co., Ltd.

Enhancement
Medical Kakumei byGMO
Business―7―(consolidated subsidiary)（２）Status of consolidated financial position① Assets, liabilities and equity
ａ. Assets
Total assets at the end of the consolidated third quarter increased by ¥21,467 mil from the end of the previous
fiscal year to reach ¥294,874 mil. This is mainly due to the decline in deposits to subsidiaries and affiliatedcompanies of ¥11,200 mil. and other financial assets of ¥7,427 mil, which was offset by the increase in cash andcash equivalents of ¥20,213 mil, trade and other receivables of ¥4,435 mil, advances paid of ¥6,058 mil, accrued
revenues of ¥5,778 mil, inventory of ¥1,209 mil and goodwill and intangible assets by ¥1,960 mil.
The balance of cash and cash equivalents at the end of the consolidated third quarter under review includes¥6,080 mil in deposits to subsidiaries and affiliated companies, as stated in “① Cash and cash equivalents” of“(6) Notes regarding consolidated financial statements.” Together with the ¥5,300 mil of deposits to subsidiaries
and affiliated companies stated in the consolidated balance sheet, the total balance of deposits to subsidiaries
and affiliated companies stands at ¥11,380 mil. These deposits are GMO Internet Group’s cash on hand which
is deposited under the cash management system (CMS) implemented and managed by GMO Internet Group
Inc. This allows GMO-PG and its consolidated subsidiaries to withdraw necessary funds in accordance with their
expanding businesses, by registering a withdrawal request after taking into account the number of days required
to process the application, without the need to wait until the preset CMS repayment date.
ｂ. Liabilities
Balance of liabilities at the end of the consolidated third quarter under review stood at ¥204,392 mil, an increaseof ¥20,246 mil from the end of the previous consolidated fiscal year. This is mainly due to the increase in accrued
expenses of ¥3,504 mil, deposits received of ¥14,723 mil and borrowings of ¥6,350 mil, despite the decline inincome tax payables of ¥3,673 mil.
ｃ. Equity
Equity balance at the end of the consolidated third quarter under review was ¥90,481 mil, an increase of ¥1,220
mil from the end of the previous consolidated fiscal year. This was mainly due to the increase in quarterly profitof ¥10,795 mil and recording of other comprehensive income of ¥2,552 mil, despite the decrease in retained
earnings for dividend payment of ¥12,134 mil.
Consolidated cash flow②

Cash and cash equivalents (“funds”) at the end of the consolidated third quarter under review was ¥134,181 mil,an increased of ¥20,213 mil versus the balance at the start of the term. The state of cash flow over the third
quarter under review is discussed below.
ａ. Cash flow from operating activities
Net funds provided by operating activities during the consolidated third quarter was ¥9,797 mil, which comparesto net funds provided of ¥8,591 mil during the same period of the previous year. This resulted from cash outflows
from (i) increase in trade and other receivables of ¥4,202 mil, (ii) increase in advances paid of ¥6,058 mil, (iii)increase in accrued revenue of ¥5,882 mil and (iv) income tax payments of ¥8,917 mil, which was offset by cash
inflows from (i) quarterly profit before tax of ¥15,954 mil, (ii) increase in accrued expenses of ¥3,819 mil and (iii)increase in deposits received of ¥14,723 mil.
ｂ. Cash flow from investing activities
Net funds provided by investing activities during the consolidated third quarter under review totaled ¥15,386 mil,compared to the net funds provided of ¥1,776 mil during the same period of the previous year. This resulted fromcash inflows from (i) withdrawals from restricted deposits of ¥20,916 mil, (ii) withdrawal of deposits to subsidiaries
and affiliated companies of ¥16,500 mil, which was partially offset by cash outflows from (i) payment into
restricted deposits of ¥12,533 mil, (ii) purchase of intangible assets of ¥3,220 mil and (iii) payment into deposits―8―to subsidiaries and affiliated companies of ¥5,300 mil.
ｃ. Cash flow from financing activities
Net funds used by financing activities over the consolidated third quarter under review was ¥6,287 mil which
compares to net provided of ¥1,087 mil during the same period of the previous year. This is mainly due to cash
inflows from (i) net increase in short term borrowings of ¥2,900 mil and (ii) increase in long term borrowings of¥3,450 mil which was offset by cash outflows from dividend payouts of ¥12,127 mil.

（３）Review of consolidated earnings forecasts and other forecasts
GMO-PG and its consolidated subsidiaries are positioned primarily within the E-Commerce (EC) market in Japan,
and the current B2C EC market for consumer merchandise is trending sluggishly due to the normalization of
economic activities. However, this market is expected to continue to grow over the medium-to-long term helped byfavorable externalities such as logistics industry reforms. In addition, continued high growth is expected from thesolid progress in online migration of payments in non-merchandise services and sectors closely related to daily life
such as public utilities, taxes/public dues and medical expenses. Also, the scope of the EC market itself is expanding
driven by the online migration of inter-company transactions (B2B) and inter-consumer transactions (C2C).
The offline domain, where the consolidated subsidiary GMO Financial Gate, Inc. is positioned, is undergoing an
acceleration in cashless adoption of various payment methods including credit cards, which is leading to new
business opportunities as well as to expand the scope of businesses for GMO-PG and its consolidated subsidiaries.
However, the business environment for FY2023 faces continued uncertainty over private consumption caused byrising prices on the back of soaring raw material prices, volatile capital markets and the decline in real wages, despite
the positive effects of normalization of economic activities, recovery of inbound (foreign tourists) consumption andrising momentum for wage increases. Despite these headwinds, the impact to revenues for GMO-PG and its
consolidated subsidiaries is expected to be minimal, given the defensive nature of online payments in the nonmerchandise domain such as the utility sector, and the steady expansion of priority initiatives such as industryspecific DX platforms, BaaS support services to financial institutions and business operators and the next generation
payment platform of ‘stera’. Furthermore, there was a partial reversal in third quarter of one-time expenses incurredin the previous quarter.
The consolidated earnings forecast for the fiscal year ending September 2023 is revenue ¥59,100 mil (up 17.5%
YoY), operating profit of ¥20,311 mil (up 25.0% YoY). The profit line items from profit before income taxes and below
are affected, in particular, by the transfer of all the shares of 2C2P Pte. Ltd. (a former equity method affiliate), which
resulted in a gain on sale of affiliate accounted for using equity method of ¥16,932 mil. As a result, profit before
income taxes is forecast at ¥18,837 mil (down 45.8% YoY) and profit of ¥12,635 mil (down 48.1% YoY) and profit
attributable to owners of parent of ¥12,368 mil (down 48.8% YoY).

―9―

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

End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2023)

AssetsCurrent assets
Cash and cash equivalents①

113,967,930

134,181,625②

13,964,116

15,711,203

Advances paid

54,422,846

60,481,701

Accrued revenue

30,331,694

36,110,004

Inventories

1,532,298

2,741,966

16,500,000

5,300,000

12,917,180

4,302,404

Trade and other receivables

Deposits to subsidiaries and affiliates③

Other financial assets
Other current assets

620,923

885,440

Total current assets

244,256,990

259,714,346

Property, plant and equipment

3,542,380

3,430,707

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

6,942,428

8,902,802

8,608,123

8,913,125

Non-current assets

3,501,426

6,189,344

Other financial assets

5,095,976

6,282,866

Deferred Tax Assets

1,342,570

1,349,558

Other non-current assets

117,283

91,570Total non-current assets

29,150,189

35,159,974

273,407,179

294,874,321②

Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2023)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

5,595,583

6,423,556

Accrued expenses

23,280,877

26,785,790

Deposits received

91,410,677

106,133,757

Borrowings

17,000,000

20,260,000

Other financial liabilities

1,014,590

417,408

Income taxes payable, etc.

4,916,655

1,242,728

Provisions

320,229

328,863

Other current liabilities

4,281,866

3,574,210

Total current liabilities

147,820,480

165,166,315

Corporate bonds

19,678,403

19,742,352

Borrowings

6,000,000

9,090,000

Other financial liabilities

2,342,950

2,260,340

130,576

130,770

5,642,475

5,960,269

Non-current liabilities

Provisions
Deferred tax liabilities
Other non-current liabilities

2,531,640

2,042,811

Total non-current liabilities

36,326,046

39,226,543

184,146,527

204,392,859

Capital stock

13,323,135

13,323,135

Capital surplus

15,272,474

15,240,637

Retained earnings

49,424,496

47,800,956

Treasury stock△1,152,444△1,153,329

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

10,255,198

12,814,184

87,122,860

88,025,585

2,137,790

2,455,876

Total equity

89,260,651

90,481,462

273,407,179

294,874,321

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

Notes

Q3 FY2022(From October 1, 2021
to June 30, 2022)

Revenue(Unit: Thousand Yen)
Q3 FY2023(From October 1, 2022
to June 30, 2023)

36,956,780

47,000,632

6,834,040

8,509,494△12,175,610△17,219,643

24,781,170

29,780,989

192,582

215,550△12,144,137△13,932,230△41,532△42,288

Operating profit

12,788,081

16,022,020

Financial income

1,278,938

731,542

Financial expense(of which, interest income※)
Cost of revenue
Gross profit
Other income
Selling, general and administrative
expenses
Other expense△169,601△851,916

Equity method investment gains or loss

183,852

52,920Gain on sale of equity method affiliate

16,419,272－

Profit before income taxes

30,500,544

15,954,566

Income tax expenses△9,201,545△5,159,371

Quarterly profit

21,298,999

10,795,195

21,129,578

10,515,637

169,420

279,557

21,298,999

10,795,195

Basic earnings per share

278.60138.65

Diluted earnings per share275.19137.23

Quarterly profit attributable to
Owners of parent
Non-controlling interests
Quarterly Profit
Earnings per share (Yen/share)（※）The figure present the interest income calculated using the effective interest method as per IFRS 9 Financial
Instruments.

―12―

Condensed consolidated statement of comprehensive income

Notes

Q3 FY2022(From October 1, 2021
to June 30, 2022)

Quarterly Profit
Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Share of other comprehensive income ofequity method affiliates
Total of Items that will not be reclassified
to profit or loss
Items that will be reclassified to profit orloss
Exchange differences on translation offoreign operations
Share of other comprehensive income ofequity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand Yen)
Q3 FY2023(From October 1, 2022
to June 30, 2023)

21,298,999

10,795,195

643,729

321,057

5,475,394

302,981

6,119,124

624,038

4,374,272

1,928,948△186,034－

4,188,238

1,928,948

10,307,362

2,552,987

31,606,361

13,348,182

31,429,608

13,074,624

176,753

273,558

31,606,361

13,348,182

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―13―

（３）Condensed consolidated statement of changes in equity
Third quarter of the previous consolidated fiscal year (From October 1, 2021 to June 30, 2022)

Notes
Balance as of October 1,
2021
Quarterly Profit
Other
comprehensive
incomeQuarterly comprehensive
incomeDividends
Dividends paid to noncontrolling interests
Transfer from othercomponents of equity toretained earnings
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of June 30,2022

Capitalstock

Capitalsurplus13,323,135 15,191,927

Retainedearnings

Treasurystock

26,546,151 △1,152,444(Unit: Thousand Yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent
1,937,175

55,845,946

1,974,433

57,820,379－

21,129,578

169,420

21,298,999－－

21,129,578

－

－

－

－ 10,300,030

10,300,030

7,332

10,307,362－－

21,129,578－ 10,300,030

31,429,608

176,753

31,606,361－－ △4,474,710－－ △4,474,710

－

－

－

－

－

－

△89,232△89,232－－

3,233,324－ △3,233,324

－

－

－

－

91,350－－△399

90,951－

90,951－△49,103－－－△49,103

26,072△23,030

－

－

－

△718

－

△718

－

△718

－

42,247 △1,241,385

13,323,135 15,234,175－△718 △3,233,723 △4,433,581

46,434,344 △1,153,163

9,003,482

82,841,974－ △4,474,710△63,160 △4,496,741
2,088,026

84,930,000

Third quarter of the current consolidated fiscal year (From October 1, 2022 to June 30, 2023)

Notes
Balance as of October 1,
2022
Quarterly Profit
Other comprehensive
incomeQuarterlycomprehensive income
Purchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of June 30,2023

Capitalstock

Capitalsurplus13,323,135 15,272,474

Retainedearnings

Treasurystock(Unit: Thousand Yen)
Total equity
Other
Nonattributable
Total
items ofcontrollingto owners
Equityequityinterestsof parent

49,424,496 △1,152,444 10,255,198

87,122,860

2,137,790

89,260,651－－

10,515,637－－

10,515,637

279,557

10,795,195

－

－

－

－

2,558,986

2,558,986△5,9992,552,987－－

10,515,637－

2,558,986

13,074,624

273,558

13,348,182

－

－

－

△884

－

△884

－

△884

－

－ △12,134,807－－ △12,134,807

－

－

－

－

－

－

△102,856△102,856－

33,231－－－

33,231－

33,231－△65,069－－－△65,069

147,384

82,315－－△4,369－－△4,369－△4,369△31,837 △12,139,177

△884

－

13,323,135 15,240,637－ △12,171,899

47,800,956 △1,153,329 12,814,184―14―

88,025,585－ △12,134,807

44,527 △12,127,371
2,455,876

90,481,462

（４）Condensed consolidated statement of cash flows
Notes(Unit: Thousand Yen)
Q3 FY2023(From October 1, 2022
to June 30, 2023)

Q3 FY2022(From October 1, 2021
to June 30, 2022)

Net cash provided by (used in) operating
activities
Profit before income taxes
Depreciation & Amortization
Financial income and expense(△=gain)
Equity method investment gain/loss(△=increase)
Gain on sale of equity method affiliate
Increase/decrease in inventories(△=increase)
Increase/decrease in trade andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
Accrued revenues (△=increase)
In/Decrease in trade payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current liabilities(△=decrease)
In/Decrease in other non-current
liabilities △=decrease)
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payments into restricted deposits
Withdrawals from restricted deposits
Purchase of property, plants andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment
securities
Purchase of investments accounted forusing equity method
Proceeds from distribution 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
OthersNet cash provided by (used in)investing activities―15―

30,500,544

15,954,566

1,571,024

1,772,380△1,109,337

120,374△183,852△52,920△16,419,272－

115,338△1,209,668△714,062△4,202,945△5,043,471△6,058,855△5,540,797△5,882,795△107,745

803,581

3,522,920

3,819,993

8,146,355

14,723,436△856,124△823,058

42,756△446,621△123,762△443,838

13,800,514

18,073,628

70,997751,755△68,811△110,678△5,210,966△8,917,020

8,591,735

9,797,684△5,282,800△12,533,900－

20,916,744△201,770△378,853△1,696,021△3,220,550△454,557△708,536

24,360,517

98,106△500,000－

286,573

167,854△16,500,000△5,300,000

2,000,000

16,500,000△30,894△150,525

7,561

401

△212,293△4,091

1,776,315

15,386,648

Notes(Unit: Thousand Yen)
Q3 FY2023(From October 1, 2022
to June 30, 2023)

Q3 FY2022(From October 1, 2021
to June 30, 2022)

Net cash provided by (used in) financing
activities
In/Decrease in short-term borrowings(△=decrease)
Increase in long-term borrowings

6,300,000

2,900,000－

3,450,000

Repayment of long-term borrowings△158,515－

Dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
Other
Net cash provided by (used in)financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period△4,471,420△12,127,045△89,232△102,856

25,08023,890△518,113△431,705

1,087,798△6,287,717

1,186,453

1,317,078

12,642,302

20,213,694①

104,523,965

113,967,930①

117,166,267

134,181,625―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, 2022)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2023)

109,337,930

128,101,625

4,630,000

6,080,000

113,967,930

134,181,625

Cash and cash equivalents
Deposits toand affiliates

subsidiaries

Total② Trade and other receivables
Breakdown of trade and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2023)

Trade and other receivables

6,454,035

7,530,373

Operating loans

10,677,593

13,925,696

457,134

572,683△123,220△128,204

Total

17,465,542

21,900,548

Current assets

13,964,116

15,711,203

Non-current assets

3,501,426

6,189,344

17,465,542

21,900,548

Other
Provisions
accounts

fordoubtful

Total③

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

―17―