Summary of Consolidated Financial Statements for the First Quarter FY2023 (IFRS)
February 13, 2023
Exchange: Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:
Scheduled submission date of quarterly
reportRyu Muramatsu

Director, Executive Vice President
Scheduled date of commencementfor dividend payment

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial results

Yes

URL: https://www.gmo-pg.com/en/corp/

February 13, 2023

Tel: +81-3-3464-0182-(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

１．Consolidated Financial Statements for the First Quarter, FY2023(From October 1, 2022 to December 31, 2022)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue％

Mil Yen％

Mil Yen5,090 23.7
4,116 31.8

Basic earnings per
share
Q1 FY2023
Q1 FY2022

Profit before
income taxes％

Mil Yen

14,813 24.9
11,857 21.4

Q1 FY2023
Q1 FY2022(Percentages represent year-on-year % change)

4,687 9.0
4,299 41.5

Profit attributableTotal
to owners of comprehensive
parentincomeQuarterly
Profit％Mil Yen2,523 △2.3
2,582 47.6

Mil Yen％ Mil Yen％

2,447 △2.8756 △71.5
2,517 47.6 2,652
76.4

Diluted earnings per
share

Yen

Yen

32.27
33.19

31.97
32.90

（２）Consolidated Financial Position
Total assets

Q1 FY2023
FY2022

Ratio of total equity
Total equity
attributable to owners
attributable to ownersof parent to totalof parent
assetsTotal equity

Mil Yen

Mil Yen

Mil Yen%297,562
273,407

77,83689,26075,614
87,12225.4
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

160.00160.00

0.00

82.00

82.00

0.00

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
Q2 FY2023
Full Year
(Note )

Operating profit

Mil Yen%

Mil Yen%

28,491
59,10018.4
17.5

10,33020,311

24.8
25.0

Profit before
income taxes
Mil Yen%9,648 11.0
18,837 △45.8

Revision of the most recently released financial forecast:

―1―

No

ProfitBasic earnings
attributable toper shareowners of parent

ProfitMil Yen

%

6,072
8.1
12,635 △48.1

Mil Yen

%

Yen

5,952
7.9
12,368 △48.8

78.49
163.08

※

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

Q1 Y2023: 76,557,545

FY 2022:76,557,545

Q1 Y2023: 715,071
Q1 Y2023: 75,842,509

FY 2022:714,996
Q1 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 Q1
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 10 of the attachment.
2 Results Presentation for Investors and Analysts to be held on February 14, 2023. Supporting materials and a video ofthe presentation 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…………………………………………...….. 10
2．Condensed Consolidated Financial Statements and Major Notes..………………………………………………..... 11（１）Condensed consolidated balance sheet …………………………………………………………………………

11（２）Condensed consolidated statement of income and statement of comprehensive income …………………

13（３）Condensed consolidated statement of changes in equity ……………………………………………...……… 15（４）Condensed consolidated statement of cash flows ……………………………………………………...………

16（５）Notes regarding the going concern assumptions………………………………………………………………..

18（６）Notes regarding the consolidated financial statement…………………………………………………………..

18➀ Cash and cash equivalents…………………………………………………………………………………….

18② Trade and other receivables…………………………………………………………………………………… 18③ Deposits to subsidiaries and affiliates………………………………………………………………………...

―3―

18

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 thequarter under review.
Consolidated operating results①

The Group announces its earnings results for the cumulative first quarter of the consolidated fiscal year 2023
(October 1, 2022 to December 31, 2022) as follows.
(Unit: Thousand Yen)
Q1 FY2022(From October 1, 2021
to December 31, 2021

Q1 FY2023(From October 1, 2022
to December 31, 2022

Rate of change (%)

Revenue

11,857,766

14,813,246

24.9

Operating profit

4,116,377

5,090,188

23.7

Profit before income taxes

4,299,022

4,687,236

9.0

2,517,248

2,447,255△2.8

Profit attributable to owners ofparentａ. Revenue

Revenue reached ¥14,813 mil, up 24.9% YoY. For the first quarter under review, the transaction volume, which
includes online billing, recurring billing, and offline payment and, GMO Payment After Delivery, increased by
29.8% YoY and transaction value increased by 34.2% YoY. The Payment Processing Business revenue was¥11,215 mil (up 26.5% YoY), Money Service Business (MSB) revenue was ¥3,356 mil (up 21.0% YoY) andPayment Enhancement Business revenue was ¥246 mil (up 9.1% YoY). For details, please refer to page 5 of “②Results 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

Q1 FY2022(From October 1, 2021
to December 31, 2021

Q1 FY2023(From October 1, 2022
to December 31, 2022

Rate of change(%)

Initial(Initial revenue)

1,484,676

2,260,404

52.2

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

1,851,185

2,237,931

20.9

3,149,958

4,257,285

35.2

5,371,946

6,057,624

12.8

Total

11,857,766

14,813,246

24.9

―4―

ｂ. Operating profit
Operating profit reached ¥5,090 mil, up by 23.7% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2023.
By segment, Payment Processing Business segment profit (operating profit) was ¥5,282 mil, up 24.0% YoY;
Money Service Business segment profit (operating profit) stood at ¥615 mil, down 2.5% YoY; Payment
Enhancement Business segment profit (operating profit) of ¥41 mil (down 19.7% 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 ¥4,687 mil, up 9.0% YoY. The reason the pre-tax profit growth rate of 9.0% YoY is lower
than the operating profit growth rate of 23.7% YoY is due to financial expense of ¥614 mil including foreign
currency losses of ¥457 mil, despite recording a financial income of ¥233 mil including interest income of ¥208
mil.
②

Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment
Payment Processing Business
Revenue
Operating profit

Q1 FY2022(From October 1, 2021
to December 31, 2021

Q1 FY2023(From October 1, 2022
to December 31, 2022

Rate of change(%)

8,866,543
4,260,112

11,215,710
5,282,917

26.5
24.0

2,772,849
630,956

3,356,203
615,450

21.0△2.5

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

225,809
51,297

246,279
41,202

9.1△19.7△7,436△825,988△4,947△849,382

－
－

Total
Revenue
Operating profit

11,857,766
4,116,377

14,813,246
5,090,188

24.9
23.7

―5―

ａ. Payment Processing Business
The Payment Processing Business focusses on payment processing services for online billing, recurring billing,
and offline payments, as well as expanding Banking as a Service (BaaS) support to financial institutions andfinancial service providers. In the online billing and recurring billing domain, we focused our efforts to acquirelarge and medium-to-small sized merchants across various industries as well as expand our services to a widearray of non-EC merchants, given the backdrop of the steadily expanding E-Commerce (EC) market.
In the first quarter under review, the online billing and recurring billing domain showed an increase in online
payment for purchase of daily goods, digital content and public dues/taxes as internet usage becomes habitualfrom the nesting demand during the COVID-19 pandemic. Also, online payment increased in new
industries/sectors from rising DX demand. With the increase in travel and outings from the easing of COVID-19
restrictions, payments in the travel and ticket sectors recovered as well as some merchants in the merchandise
sector that had been adversely affected from the cycling through of nesting demand. On the other hand, smallsize merchants continue to be negatively affected.
In the offline domain during the first quarter under review, payment terminal sales, including stera terminals,
continued its strong sales momentum since last year thanks to the market expansion driven by heightened needfor cashless payment, in addition to increased consumption during year-end holiday season and pickup in
inbound tourists. Steady progress was made in winning project orders related to the Unattended Market (UM)such as ticket machines and fare adjustment machines, which is one of the target markets.
Furthermore, contribution to segment revenue also came from accelerating growth of the Processing Platform
service, which is part of the BaaS (Banking as a Service) support service, by capturing the need for cashless
payment and DX at financial institutions and business operators.
As a result, segment revenue reached ¥11,215 mil, up 26.5% YoY and segment profit (operating profit) was¥5,282 mil, up 24.0% YoY.
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 first quarter under review, transactions for Remittance service increased and transaction value for
Instant Salary byGMO trended favorably. In addition, revenue from GMO Payment After Delivery, a BNPL
payment method service, increased from acquisition of a large merchant and the impact from rate revisions.
As a result, segment revenue reached ¥3,356 mil, up 21.0% YoY, but segment profit (operating profit) reached¥615 mil, down 2.5% YoY due to higher credit costs for GMO Payment After Delivery and changes in the segment
sales 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 the reception counters offered exclusively to medical institutions by the
consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
In the first quarter under review, demand increased for services offered by GMO Medical Reservation Technology
Co. Ltd., such as smartphone-based app to fill out medical questionnaires, complete reception and payment andto consolidate multiple patient registration cards of medical institutions on a smartphone, resulting in a strong
revenue trend. On the other hand, online advertising revenue decreased from seasonal decline in customer
demand.
As a result of the above, segment revenue was ¥246 mil, up 9.1% YoY and segment profit (operating profit) was¥41 mil, down 19.7% YoY due to revenue decline of online advertising service.
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 first quarter increased by ¥24,155 mil from the end of the previous
fiscal year to reach ¥297,562 mil. This is mainly due to the decline in deposits to subsidiaries and affiliatedcompanies of ¥11,200 mil. which was offset of the increase in cash and cash equivalents of ¥16,223 mil, tradeand other receivables of ¥1,149 mil, advances paid of ¥7,484 mil, accrued revenues of ¥7,855 mil, inventory of¥994 mil and other financial assets by ¥956 mil.
The balance of cash and cash equivalents at the end of the consolidated first quarter under review includes¥7,730 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 ¥13,030 mil. These deposits are GMO Internet’s Group-wide cash on handwhich is deposited under the cash management system (CMS) implemented and managed by GMO Internet
Group Inc. This allows GMO-PG consolidated subsidiaries to withdraw necessary funds in accordance with their
expanding business, 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 first quarter under review stood at ¥219,726 mil, an increaseof ¥35,579 mil from the end of the previous consolidated fiscal year. This is mainly due to the increase in accrued
expenses of ¥6,823 mil, deposits received of ¥26,984 mil and borrowings of ¥4,950 mil, despite the decline inincome tax payables of ¥3,112 mil.
ｃ. Equity
Equity balance at the end of the consolidated first quarter under review was ¥77,836 mil, a decrease of ¥11,423
mil from the end of the previous consolidated fiscal year. This was mainly due to the decrease in othercomprehensive income of ¥1,766 mil and retained earnings of ¥12,134 mil from dividend payout, despite theincrease in quarterly profit of ¥2,523 mil.
Consolidated cash flow②

Cash and cash equivalents (“funds”) at the end of the consolidated first quarter under review increased by¥16,223 mil versus the balance at the start of the term, to reach ¥130,191 mil. The state of cash flow over the
first quarter under review is discussed below.
ａ. Cash flow from operating activities
Net funds provided by operating activities during the consolidated first quarter was ¥16,173 mil, which comparesto net funds provided of ¥15,996 mil in the same period of the previous year. This resulted from cash outflows
from (i) increase in trade and other receivables of ¥1,656 mil, (ii) increase in advances paid of ¥7,484 mil, (iii)increase in accrued revenue of ¥7,854 mil, (iv) decrease in other non-current liabilities of ¥910 mil and (v) income
tax payments of ¥5,209 mil, which was offset by the cash inflows from (i) profit before tax of ¥4,687 mil, (ii)increase in payables of ¥1,832 mil, (iii) increase in accrued expenses of ¥6,919 mil and (iv) increase in deposits
received of ¥26,930 mil.
ｂ. Cash flow from investing activities
Net funds provided by investing activities during the consolidated first quarter under review totaled ¥8,288 mil,compared to the net funds used of ¥16,840 mil for the same period of the previous year. This resulted from cash
inflow from 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 ¥1,161 mil, (ii) purchase of intangible assets―8―

of ¥1,141 mil and (iii) payment into deposits to subsidiaries and affiliated companies of ¥5,300 mil.
ｃ. Cash flow from financing activities
Net funds used by financing activities over the consolidated first quarter under review was ¥7,378 mil which
compares to net funds used of ¥1,338 mil for the same period of the previous year. This is mainly due to cash
inflows from (i) net increase in short term borrowings of ¥3,000 mil and (ii) increase in long term borrowings of¥1,950 mil which was offset by cash outflows from dividend payouts of ¥12,083 mil.

―9―

（３）Review of consolidated earnings forecasts and other forecasts
GMO-PG and its consolidated subsidiaries are positioned within the E-Commerce (EC) market in Japan, and Japan’s
B2C EC market for consumer merchandizing continues to grow very rapidly, helped by favorable externalities suchas increased functionality of smartphones and logistic/distribution industry reforms. In addition, online migration
continues to progress solidly for payments for non-merchandise services that are closely related to daily life such as
public utilities, taxes/public dues and medical expenses, as well as online consumption becoming the norm under the‘new normal’ lifestyle brought about by COVID-19. In addition, the scope of the EC market itself is expanding driven
by the online migration of B2B and C2C transactions.
In the offline domain, the consolidated subsidiary GMO Financial Gate, Inc. is contributing to expand the scope ofbusiness by capturing new and emerging business opportunities from the acceleration of cashless adoption ofvarious payment methods, including credit cards.
The business environment for the fiscal year ending September 2023 (FY2023) is faced with lingering uncertainty
over private consumption, caused by surging raw material costs and sharp fluctuations in foreign exchange markets
in addition to the volatile capital markets caused by global monetary tightening, although COVID-19 restrictions havebeen lifted. These factors may potentially impact on revenues of GMO-PG and its consolidated subsidiaries.
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), profit before income taxes of ¥18,837 mil (up 45.8% YoY), profit of¥12,635 mil (down 48.1% YoY) and profit attributable to owners of parent of ¥12,368 mil (down 48.8% YoY).

―10―

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 Q1 of current
consolidated fiscal year
(December 31, 2022)

AssetsCurrent assets
Cash and cash equivalents①

113,967,930

130,191,301②

13,964,116

15,203,532

Advances paid

54,422,846

61,906,994

Accrued revenue

30,331,694

38,187,041

Inventories

1,532,298

2,527,072

16,500,000

5,300,000

12,917,180

13,401,491

Trade and other receivables

Deposits to subsidiaries and affiliates③

Other financial assets
Other current assets

620,923

954,156

Total current assets

244,256,990

267,671,589

Property, plant and equipment

3,542,380

3,518,214

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

6,942,428

7,824,822

8,608,123

8,171,064

Non-current assets

3,501,426

3,411,492

Other financial assets

5,095,976

5,568,651

Deferred Tax Assets

1,342,570

1,344,899

Other non-current assets

117,283

51,999Total non-current assets

29,150,189

29,891,145

273,407,179

297,562,735②

Total assets―11―NotesEnd of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2022)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

5,595,583

7,451,454

Accrued expenses

23,280,877

30,104,209

Deposits received

91,410,677

118,395,117

Borrowings

17,000,000

20,090,000

Other financial liabilities

1,014,590

501,165

Income taxes payable, etc.

4,916,655

1,804,004

Provisions

320,229

319,229

Other current liabilities

4,281,866

3,456,853

Total current liabilities

147,820,480

182,122,034

Corporate bonds

19,678,403

19,699,689

Borrowings

6,000,000

7,860,000

Other financial liabilities

2,342,950

2,254,385

130,576

130,601

5,642,475

5,622,543

Non-current liabilities

Provisions
Deferred tax liabilities
Other non-current liabilities

2,531,640

2,036,761

Total non-current liabilities

36,326,046

37,603,981

184,146,527

219,726,016

Capital stock

13,323,135

13,323,135

Capital surplus

15,272,474

15,217,668

Retained earnings

49,424,496

39,732,575

Treasury stock△1,152,444△1,153,329

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

10,255,198

8,494,820

87,122,860

75,614,870

2,137,790

2,221,848

Total equity

89,260,651

77,836,718

273,407,179

297,562,735

Total liabilities
EquityTotal liabilities and equity―12―（２）Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q1 FY2022(From October 1, 2021
to December 31, 2021)

Revenue(Unit: Thousand yen)
Q1 FY2023(From October 1, 2022
to December 31, 2022)

11,857,766

14,813,246

2,296,880

2,809,287△3,684,580△5,022,243

8,173,185

9,791,002

60,102

65,341△4,108,462△4,743,391△8,448△22,765

Operating profit

4,116,377

5,090,188

Financial income

215,922233,831

Financial expense△55,762△614,509

22,484△22,274

4,299,022

4,687,236△1,716,521△2,163,681

2,582,500

2,523,554

2,517,248

2,447,255

65,252

76,2982,582,500

2,523,554

Basic earnings per share

33.19

32.27

Diluted earnings per share

32.90

31.97

(of which, interest income※)
Cost of revenue
Gross profit
Other income
Selling, general and administrative
expenses
Other expense

Equity method investment gains or loss
Profit before income taxes
Income tax expenses
Quarterly profit
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.

―13―

Condensed consolidated statement of comprehensive income

Notes

Q1 FY2022(From October 1, 2021
To December 31, 2021)

Quarterly Profit
Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Shares of other comprehensive incomeof equity 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
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(Unit: Thousand yen)
Q1 FY2023(From October 1, 2022
To December 31, 2022)

2,582,500

2,523,554△142,642

89,51544,872△159,690△97,769△70,175

194,052△1,696,721△25,839－

168,213△1,696,721

70,443△1,766,897

2,652,944

756,657

2,588,192

686,878

64,752

69,7782,652,944

756,657

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

―14―

（３）Condensed consolidated statement of changes in equity
First quarter of the previous consolidated fiscal year (From October 1, 2021 to December 31, 2021)

Notes
Balance as of October 1,
2021
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
Total transactions withownersBalance as of December
31, 2021

Capitalstock

Capitalsurplus13,323,135 15,191,927

Retainedearnings(Unit: Thousand yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent

Treasurystock

26,546,151 △1,152,444

1,937,175

55,845,946

1,974,433

57,820,379－－

2,517,248－－

2,517,248

65,2522,582,500

－

－

－

－

70,94370,943△499

70,443－－2,517,248－

70,943

2,588,192

64,7522,652,944

－

－

－

△718

－

△718

－

△718

－

－ △4,474,710－－ △4,474,710

－

－

－

－

－

－

△89,232△89,232－

22,293－－△17

22,276－22,276－△10,001－－－△10,001－△10,001

12,292 △4,474,710

△718

－

13,323,135 15,204,220

24,588,690 △1,153,163－ △4,474,710△17 △4,463,153
2,008,101△89,232 △4,552,386

53,970,984

1,949,952

55,920,937

First quarter of the current consolidated fiscal year (From October 1, 2022 to December 31, 2022)

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 December
31, 2022

Capitalstock

Capitalsurplus13,323,135 15,272,474

Retainedearnings

Treasurystock(Unit: Thousand yen)
Total equity NonOther
attributable controlli
Total
items ofto owners
ng
Equityequityof parent interests

49,424,496 △1,152,444 10,255,198

87,122,860 2,137,790

89,260,651－

2,447,255

2,523,554－－

2,447,255－－－－ △1,760,377△1,760,377－－

2,447,255－ △1,760,377

686,878

69,778756,657

－

－

－

△884

△884

－

△884

－

－ △12,134,807－－ △12,134,807

－

－

－

－

－

－

△
102,856△102,856－

11,554－－－

11,554－

11,554－△66,361－－－△66,361

117,135

50,774－－△4,369－－△4,369－△4,369△54,806 △12,139,177

△884

－

13,323,135 15,217,668－

39,732,575 △1,153,329

―15―

－

－ △12,194,869
8,494,820

76,298△6,520 △1,766,897－ △12,134,807

14,279 △12,180,590

75,614,870 2,221,848

77,836,718

（４）Condensed consolidated statement of cash flows
Notes(Unit: Thousand yen)
Q1 FY2023(From October 1, 2022
To December 31, 2022)

Q1 FY2022(From October 1, 2021
To December 31, 2021)

Net cash provided by (used in) operating
activities
Profit before income taxes
Depreciation & Amortization
Financial income and expense
Equity method investment gain/loss(△=increase)
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)Other4,299,022

4,687,236

494,477

571,235△160,160

380,677△22,484

22,274△518,736△994,774△491,156△1,656,906△5,305,449△7,484,148△7,848,449△7,854,733

650,632

1,832,667

7,050,179

6,919,088

21,713,802

26,930,315△1,020,045△910,423

3,379△479,299△34,555△695,273

18,810,455

21,267,936

19,662

150,634△21,333△35,477

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payments into restricted deposits
Purchase of property, plants andequipment
Purchase of intangible assets△2,812,545△5,209,997

15,996,239

16,173,097－△1,161,030△111,471△170,246△629,233△1,141,777

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 w/drawal 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△168,096△537,148

668,520－

20,77542,596△16,500,000△5,300,000－

16,500,000

△201

－

6,770

－

△127,963

56,188△16,840,900

8,288,582

SubtotalInterest and dividends received
Interest paid

―16―

Notes(Unit: Thousand yen)
Q1 FY2023(From October 1, 2022
To December 31, 2022)

Q1 FY2022(From October 1, 2021
To December 31, 2021)

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

3,500,000

3,000,000－

1,950,000

Repayment of long-term borrowings△133,155－

Dividends paid
Dividends paid to non-controllinginterests
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△4,449,301△12,083,568△89,232△102,856△167,050△142,085△1,338,739△7,378,510

118,772△859,798△2,064,628

16,223,370①

104,523,965

113,967,930①

102,459,336

130,191,301―17―

（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 Q1 of current
consolidated fiscal year
(December 31, 2022)

109,337,930

122,461,301

4,630,000

7,730,000

113,967,930

130,191,301

Cash and cash equivalents
Deposits toand affiliates

subsidiaries

Total② Trade and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2022)

Trade and other receivables

6,454,035

8,015,007

Operating loans

10,677,593

10,301,205

457,134

426,956△123,220△128,145

Total

17,465,542

18,615,024

Current assets

13,964,116

15,203,532

Non-current assets

3,501,426

3,411,492

17,465,542

18,615,024

Other
Provisions
accounts

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.

―18―