ー 2021 Slogan ー＜2020-2025 Mid-term Plan＞

Digital Garage, Inc.

Designing our New Normal Context

3Q of FYE March 31, 2021 Financial Report

2021.2.10

Financial results Highlights
Profit before tax increased 9% YoY to 3.3 B JPY, beyond the previous 3Q before the outbreaks of COVID-19～ FT posted record-high profits, overcoming significant decrease in travel and inbound-related payments;
fair value grew in IT; MT was recovering ～Consolidated profit before tax【3Q(Oct.-Dec.)】

Transition of profit before tax(JPY in 100 Millions)

34

56

51

Consoli
dated

40
32

28

FY20.3 3Q

31

+9 ％

33

22
4

1Q

2Q

3Q

FY 19.3

4Q

1Q

2Q

3Q

FY 20.3

▲4
4Q

1Q

2Q
FY 21.3

3Q

FY 21.3 3Q(YoY)

3.1 B JPY 3.3 B JPY +9 ％Profit before tax by segments

FT

1.1 B JPY 1.1 B JPY +1 ％MT

0.5 B JPY 0.2 B JPY ▲61 ％IT

1.1 B JPY 1.9 B JPY +67 ％LTI

0.9 B JPY 0.8 B JPY ▲5 ％Copyright © 2021 Digital Garage, Inc. All Rights Reserved

2

Financial Results Highlights (KPI)
Transaction volume in FT continued high growth, rising 32% YoY to 0.9 T JPY in 3Q(Oct.-Dec.)～ IT’s fair value increased due to strategic investment in DX advanced global companies.
Ad volume of MT’s main area also steady progressed ～Outlook by Segments

KPI by Segments• EC payments etc.：Settlement transactions increased favorably
due to such as take-out (fast food) and delivery in addition to the
expansion of the EC market and digital contents by a going out
self-restraint.
49.1 B JPY (YoY -20%)

850.7 B JPY (YoY +32%)■ Transaction volume

FTof which, face-to-facesettlement■ Number of Transaction

MT

182 million (YoY +42%)• Digital Ads：Steady growth in volume, mainly in financialrelated such as credit card and telecommunications advertisingetc.

■ Digital Ad volume

7.0 B JPY (YoY +9%)

■ Other volume

1.4 B JPY (YoY -11%)■ Investment / Sold

• Global ： Financial environment surrounding companies
2.1 B JPY / 0.2 B JPY
recovered, and strategic investments in DX advanced companies
have achieved a good performance(Next-generation user database business, etc.)

IT• Face-to-face settlement ： Despite a significant decrease in
inbound-related payments, domestic QR code payments
increased 4 times YoY.

■ Fair valuation• CRM etc.：Travel and inbound-related volume etc. decreased.

43.8 B JPY (from E of Mar.2020 +20%) • Domestic：Following stmn, inc., QD Laser, Inc. listed on
February 5th

LTI■ Investment profit on equity
method of Kakaku.com• Kakaku.com：Recovered to the level of the same period of theprevious fiscal year due to ”Tabelog”. Kakaku. com’s traffic was
0.9 B JPY (YoY -9%)strong due to a going out self-restraint.

■ BioHealth/
About 8,000 (YoY+184%) • BioHealth：The MRI business (Brainscan Technologies, Inc.) grew
Number of Brain MRI consultation
to profitability for the full fiscal year. Full-scale launch of databusiness utilizing AI.

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

3

FY21.3 3Q Consolidated P/L Summary (IFRS)Revenues in 3Q(Oct.-Dec.) increased 4% YoY to 9.4 B JPY, profit before tax increased 9% YoY to 3.3 B JPY～ Share of profit of investments accounted for using equity method decreased, but both Revenue and profit before tax
increased due to strong performance in FT and significant growth in revenue in operational investment securities ～FY20.3
JPY in Millions

1Q

3Q

4Q

1Q

Revenue

8,217

11,379

9,078

8,262

6,944

6,138

6,718

6,576

7,256

Revenue in operational
investment securities

459

3,332

968

Other income

817

422

Finance income

1

YonY
3Q

%

Amount12,320

9,447

+4.1%

+369

-23.3%-2,873

6,148

6,301

6,138

-6.7%

-438

-2.6%

-163

-739

302

4,968

2,226

1.3 x

+1,257-55.2%-2,743

301

877

193

207

214

-28.9%

-87

+3.2%

+7

16

28

48

1

0

17

-38.9%-11

58.3 x

+17

803

891

1,205

821

300

843

853

-29.2%

-352

+1.1%

+9

5,999

6,271

6,016

8,643

6,539

6,689

6,123

+1.8%

+107

-8.5%

-566

Cost of sales

2,740

2,976

2,853

3,467

2,764

2,829

2,459

-13.8%-394-13.1%-370

Selling, general andadministrative expenses

2,951

3,138

3,121

4,813

3,453

3,588

3,400

+9.0%

+279

-5.2%

-188

Other expenses

78

86

74

254

69

109

69

-5.8%

-4

-36.2%-39

Finance costs

230

71

-32

109

252

163

195

-

+226

+19.4%+32

Profit before tax

2,218

5,108

3,062

-381

405

5,632

3,324

+8.6%

+262

-41.0%-2,308

Profit attributable to owners of parent

1,624

3,647

2,253

-105

224

3,779

2,290

+1.6%

+36

-39.4%-1,490Share of profit of investments accounted
for using equity method

Expenses

2Q

QonQ
%

Revenue in recurring business

2Q

FY21.3

Amount

NOTE: The above Revenue, Expenses, and Profit before tax refers to the continuing operations excluding discontinued operations
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

4

FY21.3 3Q Consolidated Segment P/L Summary (IFRS)Profits steadily increased in FT / MT / LTI based on recurring revenue by QonQ
～ FT covered upfront costs and converted to higher profits; MT and LTI will recover from the impact of
the COVID-19, aiming for growth in the next fiscal year ～FY20.3

FY21.3YonY

JPY in Millions

1Q

2Q

3Q

4Q

1Q

2Q

3Q

%

Revenue

8,217

11,379

9,078

8,262

6,944

12,320

9,447

+4.1%

Financial Technology

2,083

2,204

2,184

2,138

2,340

2,409

2,525

Marketing Technology

3,376

3,984

3,705

4,311

3,335

3,257

Incubation Technology

507

3,462

1,405

-506

389

Long-term Incubation

2,232

1,696

1,744

2,257

19

33

39

2,218

5,108

Financial Technology

1,061

Marketing Technology

QonQ%

Amount+369-23.3%-2,873+15.6%

+340

+4.8%

+116

2,958

-20.2%

-747

-9.2%

-298

5,269

2,225

+58.3%+819-57.8%-3,045

801

1,305

1,646

-5.6%

-98

+26.2%

+341

63

79

81

94

1.4 x

+54

+15.1%

+12

3,062

-381

405

5,632

3,324

+8.6%

+262

-0.4 x-2,308

1,112

1,129

746

1,018

1,083

1,141

+1.0%

+12

+5.4%

+58

327

676

512

336

178

78

202

-60.5%

-310

1.6 x

+124

Incubation Technology

146

3,138

1,114

-835

72

4,916

1,861

+67.1%+747-62.1%-3,055Long-term Incubation

1,493

932

890

1,385

120

485

843

-5.3%

-47

+73.9%+358

Others/Adjustments and Eliminations

-810

-751

-584

-2,013

-983

-931

-724

-

-139

-

+207

Others/Adjustments and Eliminations

Profit before tax

Amount

NOTE: Segment revenue and profit before tax are before elimination of intersegment transaction and corporate revenue and expenses.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

5

FY21.3 3Q Consolidated B/S Summary (IFRS)JPY in Millions

End of
FY20.3End of
FY21.3 3Q

Difference

Reason for change / Remarks

Current assets
Cash and cash equivalents
Trade and other receivables
Operational investment securities
Non-current assets
Property, plant and equipment
Investments accounted for using equity method
Other financial assets
Total assets

98,85232,702
26,65736,54663,444
21,367
21,475
6,319
162,296

116,667
49,06521,96743,78065,77819,94522,227
9,192
182,445+17,815+16,362-4,690+7,234+2,335-1,423+752+2,873+20,150

Current liabilities
Borrowings
Trade and other payables
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Deferred tax liabilities
Total liabilities

50,838
4,927
41,20358,66338,247
13,553
5,426
109,501

63,7579,290
48,45859,301
36,76012,721
7,899
123,059+12,920+4,363 Borrowing for operating funds and Transferred to long-term loans payable within one year
+7,254 FT business-related items+638-1,487-832+2,473+13,558

Total equity
Total equity attributable to owners of parent
Share capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Non-controlling interests
Total liabilities and equity

52,79552,033
7,591
4,409-5,012324
44,721
762
162,296

59,38658,423
7,628
4,599-4,915
1,846
49,265964
182,445+6,592+6,389+37+190+97+1,522 Increase due to mark-to-market valuation of listed shares+4,544 Increased profit+202+20,150

FT business-related items and decrease of account receivables
Increase in fair value of investee companies
Decrease by depreciation
Equity in earnings of affiliates
Increase due to mark-to-market valuation of listed shares

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

6Segment Performance Review

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

7

FT Segment
Ⅰ

Financial Technology Segment
Revenue

FY20.3

Profit before tax

3Q（October to December）

2,184 M JPY

1,129 M JPY

FY21.3 3Q (October to December)

2,525 M JPY

1,141 M JPY➤ econtext, Inc.

Integrates online and offline business as the convenience store
payment pioneer➤ VeriTrans Inc.

Provides leading e-commerce payment solutions➤ econtext ASIA Ltd.

Payment business in Hong Kong

➤ NaviPlus Co., Ltd.

Subsidiary of VeriTrans Inc. Offers website support tools including
personalized recommendation engines➤ ANA Digital Gate, Inc. （49％ stake／equity method）
Develops and offers the new payment solution by FinTech➤ SCORE Co., Ltd （49％ stake／equity method）

Development of post-settlement payment business and various
financial businesses utilizing settlement data

➤ TD Payment Corporation （49％ stake／equity method）
Offers multiple payment solutions for POS systems

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

8

FT Segment – Highlights（KPI）
Transaction volume increased 32% YoY to 0.9 T JPY, and the number of transactions increased
42% YoY to 182 million, continuing high growth in 3Q (Oct.-Dec.)～ Although travel and inbound-related transaction significantly decreased, total transaction volume isincreasing due to a going out self-restraint such as EC, digital contents etc. ～Transaction Volume(in Millions)(JPY in 100 Millions)(+32%)
7,548
6,898

6,470

Number of Transaction

7,315

8,507

(+42%)

Shop
Payment
Type

182

160
128

134

144

SpreadType

Shop
Payment
Type

Fee
Type

SpreadType

20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

20.3 3Q

Transaction Volume

YoY+22.2%

Number of Transaction

YoY+35.1％• Travel and inbound-related payments weresignificantly decreased. Credit Card anddomestic QR code payments increased
steadily.

Fee TypeFeeType

20.3 3Q

Spread Type20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

Transaction Volume

YoY+42.3%

Number of Transaction

YoY+52.0％• In addition to the increase in EC payments
by a going out self-restraint, increased thenumber of transactions mainly in digitalcontents such as Games and Video
distribution services and take-out (fastfood) , delivery etc.

Shop payment TypeTransaction Volume

YoY+10.7%

Number of Transaction

YoY+18.4％

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

9

FT Segment – Highlights（P/L）
Transaction volume and the number of transactions strongly increasing, revenue in 3Q (Oct.-Dec.)
marked 2.5 B JPY, +16% YoY～ Renewed record high profit by overcoming a significant decrease in travel and inbound-related
payments and increased costs due to development investment, etc. ～Revenue(+16%)(JPY in 100 Millions)

250 0

21.8

21.4

23.4

Revenue

Profit before tax
24.1

25.3

(JPY in 100 Millions)(+1.0%)

120 0

EC/DX
Business

10.2

11.3

10.8

EC/DX
Business• Growth in peripheral businesses
such as fraud detection services ande-commerce optimization
businesses

90%

100 0

80%

7.5

800

Shop
payment
Type

150 0

Fee Type• Increased by 24% due to favorable
growth in EC, digital contents andtake-out (fast-food) ,delivery, etc.
by a going out self-restraint

11.4

200 0

Stock
Type

SpreadType• Decrease in highly profitable travel
and inbound-related settlementtransactions, but increase of 13%
due to the expansion of thefavorable EC market

100 %

70%

600

Fee
Type

100 0

Ratio of profit
before tax torevenue

Profit before tax

60%

Achieved record-high profits by overcoming thefollowing capital expenditures to support
CAGR30% in transaction volume

400

45.2%

51.7%

50%

500

SpreadType020.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

Costs related to the development of links tomultilayered payment instruments•

Expansion of offices, such as the establishment of
new bases for operations centers•

Fully redundant largest database project in Japanin cooperation with Oracle Corporation Japan40%

020.3 3Q

•
200

30%

20.3 3Q

20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

10

FT Segment -Business summary of Non-EC (Face-to-face settlement )and Highlights

Payment methods that match all store sizes and strategy support for O2O business
Face-to-face settlement transaction volume was 49.1 B JPY, and domestic QR code
payment increased despite a significant decrease in inbound-related payments
DirectPOS Register

TabletMultiPOS Payment TerminalmPOS

QR CodeScanning
Panel
Cloud Pay

TD Payment
Corporation

OEM• Introduced real-time settlement systems that respond to the
new situation of the COVID-19, such as online customer
service sales of
LUMINE Co., Ltd., pre-order take-out
payments for major fast-food stores and biometric settlement• JV with Toshiba Tec Corporation, the top share company in
Large
Japan providing multi-payment solution. Introduced at major
Scaledrugstores and supermarkets, etc. and grew to 13,000 units• Providing multi-payment solutions (overseas QR code
payments such as Alipay, WeChat Pay and domestic QR
code payments including carrier-related payments andso on) for mobile POS such as Recruit Holdings Co., Ltd.
• Cloud Pay (Develop consortium-type multi-QR solutions
that integrate various MPM-type payments into one QRcode) is focusing on small stores.
• Following “d baraiⓇ” and LINE Pay, starts linkage with au
Pay, WeChat Pay, too• Hundreds of thousands store installed, growing to becomea main player in the QR payment network

Medium
Scale

Small
Scale

• Significant growth in transaction volume of domestic
companies

Note) MPM (Merchant Presented Mode) : Method in which consumers scan QR codes displayed at stores with their smartphones to make payments
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

11

MT Segment
Ⅱ

Marketing Technology Segment
Revenue

Profit before tax

FY20.3

3Q (October to December)

3,705 M JPY

512 M JPY

FY21.3

3Q (October to December)

2,958 M JPY

202 M JPY

➤ Marketing Technology Company

Supports client’s business through performance-based ads, Online to
Offline strategy and web marketing➤ DG Communications Co., Ltd.

Provides solutions that make people‘s lives more comfortable, mainly
through the real estate advertising business➤ BI.Garage, Inc.

Develops and provides ad products incorporating data science, media
consortium business, and cutting-edge ad technology➤ CyberBuzz, Inc. （20.4％ stake／equity method）

Provides the social media marketing platform structured with influencers
as its center part

➤ DG MARKETING DESIGN, Inc. （20％ stake／equity method）
Established on June 25th, 2018 and its predecessor is Business Design
Company

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

12

MT Segment – Highlights
Mainstay digital ads showed a strong performance; mainly in by credit card andother financial-related advertising and telecommunications advertising etc.
～ Expenses for business structure optimization and investment in new strategic businesses
preceded, but profit before tax recovered after bottoming out in 2Q ～Advertisement volume

Revenue

Profit before tax

 Decrease in volume of real estate sales
advertising due to the impact of the
COVID-19, but volume of mainstay digitalads remained steady, mainly in credit cardand telecommunications advertising Digital Ads remained firm, mainly in thefinancial field, up 12% YoY
 On the other hand, revenue of real estate
sales advertising declined 29% YoY

 Expenses recorded due to business structure
optimization measures such as consolidatingbases, and optimizing costs in the real estate
field; recovering from the impact of the
COVID-19 after bottoming out in 2Q(JPY in
100 Millions)(JPY in
100 Millions)

120(JPY in
100 Millions)

Real estate
Smartphone/App
100

97

Cosmetics/HR
Financial

80
60
40
Digital
Ads
20
0

84

19
16

21
13
23

18
31

40

5.1

43.1
73
13
11

83

84

18

14

14

37.1

33.3

32.6

15

17

16

20

32

35

35

20.3 3Q 20.3 4Q 21.3 1Q 21.3 2Q 21.3 3Q

3.4

29.6
CRM
etc

0.8

DigitalAds

20.3 3Q

20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

2.0

1.8

Real
estateads

20.3 3Q

20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

13

MT Segment – Strategic business for the next termⅠ
GAFA Contents Business/Capital and Business Alliance with Global Tech Team (1plusX)＜ Europe ＞＜ Japan ＞

Next-generation advertising technology venturewith state-of-the-art engineers, including thosefrom the Swiss headquarters and Google LLC
Adopted in AdAlliance in Germany etc.
and other countries in Europe• Alliance of five advertising agencies
bundling up to 500 media in Germany• Web/TV/Print/PODCAST​,​ etc.
• Reaches 99% of the media contact
population• Sales across all services and devices＜Case of Germany＞

TV

64 Million people/month

PRINT

34 Million people/month

ATV

18 Million people/month

Total Reach99
In agof’sranking#1%

PODCAST

12 Million people/month

INPAGE

45 Million people/month

INSTREAM801

OUTSTREAM

Million people/month

391

Million people/monthTechnology license
Strategic investment(BI. Garage, DGDV※)Strategic alliance in Japan and Asia
From the perspective of protecting cultures invarious areas, the axis of GAFA opposition has
emergedKiller technology that clears both the General
Data Protection Regulation (GDPR) and theCalifornia Consumer Privacy Act (CCPA)
As a partner in Japan and Asia, the first 28 majordomestic media companies will use※DGDV：DG Daiwa Ventures, Inc. （50％ stake／equity method）

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

14

MT Segment – Strategic business for the next termⅡ
Promoting DX for the real estate industry ：Entry into the real estate legal tech area•

Automated screening and generation of necessary
documents in the real estate sales agreement andexecution of digital contract conclusion•

Online centralized management of contract status•

Eliminate the need for signatures, stamps, andmailings by digitizing■Conceptual Image of “Musubell”

Business progress after launch in July 2020
Automation of documents, stamps, mailings,
document management, and business in realestate sales contracts
Due to the influence of COVID-19 and the trend
toward DX, the needs in the real estate industry
have increased rapidly, and multiple companies are
considering introducing it

Following the introduction of Nomura Real Estate
Development Co., Ltd., other multiple major
developers have decided to introduce it(Scheduled to be released later)
Digital contract solutions connected to API withmultiple legal tech companies following Bengo4.com
Co., Ltd.

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

15

IT Segment
Ⅲ

Incubation Technology Segment
Revenue

Profit before tax

FY20.3

3Q (October to December)

1,405 M JPY

1,114 M JPY

FY21.3

3Q (October to December)

2,225 M JPY

1,861M JPY➤ DG Ventures Inc.

Invests in and incubates cutting-edge internet startups➤ Open Network Lab, Inc.

Seed Accelerator Program in progress in the 22nd term

Number of invested：213
companies
Fair Value Endof Dec. 2020

：36.2 B JPY

Number of support
companies：Over 150
(Accumulation)
Funding Ratio：58.2％➤ DG Daiwa Ventures, Inc. （50％ stake／equity method）
Manages DG Lab Fund to invest in startups
with next-generation technologies

DG Lab Fund I： 6.8 B JPY

DG Lab Fund Ⅱ：12.5 B JPY➤ Digital Garage US, Inc.

The US-based global strategy headquarters

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

16

IT Segment – Highlights
Carefully selected and invested in promising projects in North America, Asia, and Japan. Fair value
increased steadily 20% YoY to 43.8 B JPY from the end of the previous fiscal year.
～ Started "Hamagin DG Innovation Fund“ with The Bank of Yokohama, Ltd.
specialized in Kanagawa area ～Operational Investment Securities（ratio by currencies）(JPY in
100 Millions)

365(+20%)

363

406

Portfolio by Regions

438 Others
INR
3.6%

JPY

0.9%

GBP
1.4%

Listed on February 5, 2021
EuropeOthersQD Laser

7.7%

0.5%

24.4%

North
America

Japan

USD
69.7%

24.0%

38.7%

Asia

29.1%
End of20.3期末Mar. 2020

End of
End of
End of21.3期1Q末 21.3期2Q末 21.3期3Q末
Jun 2020 Sep. 2020 Dec. 2020

FY 21.3 IPOs in Japan※The investees of DG Ventures, DK Gate,
D2 Garage, econtext ASIA EC Fund

Develop and provide new semiconductor laser
solutions in the telecommunications, industrial,
medical, and consumer sectors as a pioneer in thecommercialization of quantum dot laser technology

Listed on December 15, 2020

STMN
Offers perks and benefits through its cloud
platform TUNAG to help companies increase
employee satisfaction.

Listed on June 30, 2020

Goodpatch
A design company specializing in UI/UX design.
Provides “Prott”, a product typing tool, and“ReDesigner”, a career support service specificallydesigned for designers.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

17

IT Segment – Examples of Investment
Growth in promising investments for DX in the era of COVID-19 in Japan, Asia, and North America

Japan

Asia

North America

Implemented investments in IPO
reserve groups of leading domestic
companies

Investing in prominent companies
such as Vietnam, India andIndonesia

Invest in Unicorns and potentialUnicorns, mainly in DX/FinTech

Idein[Japan]Sen Do Technology[Vietnam]Realize faster in-depth learning inference on inexpensive
general-purpose devices, develop edge AI platforms using suchtechnologies, and provide services to developers and businesscompanies that develop, introduce, and utilize AI/IoT systems

Operates Sendo, a marketplace for C2C and B2C in
Vietnam, and provides electronic wallet services

iYell[Japan][India]As a housing loan tech venture company, we provide "NoDundry," a smartphone application specializing in housing loans,aiming to create a society in which optimal housing loans can beselected seamlessly

Psychic VR Lab[Japan]Provides STYLY, a VR creative platform thatprovides artists with a place to express space.
Through that space, it is possible to shareexperiences that could not be achieved in reality
into the Internet world

Droom
Operates Droom, India's largest automotive buying
and selling online marketplace

NoBrokerTechnologies
Solutions [India]

Operates India’s peer-to-peer property marketplace.
Using this service, people can rent/buy houses
online without brokers

Tokopedia[Indonesia]
Indonesia‘s largest online marketplace

MX Technologies[US]
Offers a PFM (personal financial management)
tool for financial institutions in the US.

ThredUp[US]

The world’s largest fashion resale platform,
inspiring a new generation to think secondhand
first. Specializing in women's and children's clothing

indie Semiconductor[US]
Provides automotive semiconductors and software
platforms. High-quality wireless charging, Apple
CarPlay, illumination control, ADAS ultrasound, and
LiDAR with semi-solutions for the automotive
industry※The investees of DG Ventures, DK Gate, D2 Garage, econtext ASIA EC Fund
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

18

LTI Segment
Ⅳ

Long-term Incubation Segment
Revenue

Profit before tax

FY 20.3

3Q (October to December)

1,744 M JPY

890 M JPY

FY21.3

3Q (October to December)

1,646 M JPY

843 M JPY

➤ Kakaku.com, Inc. （20％ stake／equity method ）Operates purchase support service Kakaku.com, restaurant review andrestaurant service tabelog, and New Media and Solutions➤ Crypto Garage, Inc.
Promoting development of advanced financial services utilizing blockchain
technology and cryptography technology with Tokyo Tanshi Co., Ltd.

➤ Brainscan Technologies, Inc.
MRI business for drivers➤ ACADEMIE DU VIN
Operation of wine schools and development of community and e-commercebusinesses utilizing digital technologies

NOTE: Revenue here shows revenue from external customers. Profit before tax is before elimination of intersegment transaction.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

19

LTI Segment – Highlights
Profit before tax recovered to year-on-year level due to recovery in Kakaku.com business,despite upfront startup costs in strategic businesses～ kakaku.com, Inc.; the profit level recovered to the same period of the previous year due to the recovery of“Tabelog”, and the traffic of Kakaku.com was strong due to the demand by a going out self-restraint ～Profit before tax

Business Progress of Kakaku.com, Inc.

(JPY in 100 Millions)【 Quarterly Consolidated Revenue for Kakaku.com Group 】
Consolidated Revenue YoY +1.9%

13.9(JPY Million)

Ref. kakaku.com, Inc. Results Briefing for FT21.3 3Q

（-5%）

8.9

8.4

4.9

1.2
20.3 3Q

20.3 4Q

21.3 1Q

21.3 2Q

21.3 3Q
Copyright © 2021 Digital Garage, Inc. All Rights Reserved

20

LTI Segment – Highlights of core strategic businesses
Crypto Garage

Brainscan Technologies, Inc.

Prepared for full-scale operation of the FY21.3 4Q tobuild next-generation global financial infrastructures• Both Bitcoin price and transaction volume record high
• Promoting further customer acquisition in addition to
the seven prime domestic and overseas clients
Full-fledged use by high-quality crypto asset
operators in Japan and overseas will start, and fullfledged business started in FY21.3 4Q(Business outline is scheduled to be released at the start of business)

Crypto Garage’s Business model••

DvP payment services for inter-corporate transactions
Demand for exchange coverage is expected to increase in line withthe expansion of the scale of distribution

Under consideration service development by the
inflection of the big data and AI of the brain

・The number of brain MRI medical examination consultations
were over 8,000 (+184% YoY) in 3Q (Oct.-Dec.) , showing strong
growth, growing to profitability for the full year
・Promotion of new businesses based on analysis of brain MRI
medical examination data

Aiming to Service Development and monetization
by Platform of Health Care Data
The number of brain MRI medical examination
consultations• The number of consultations in this term increased significantly due toconsultations via the Japan Health Insurance Association• FY 21.3 (Forecast)：Approximately 230% YoY growth

15,596(The number ofconsultations)

OTC
Operators
in overseas

Exchange
in Japan

8,368

Others

Truck

5,001

Simultaneous settlementon blockchainBus

FY 19.3

FY 20.3

FY 21.3※FY 21.3 is the actual value of 1Q-3Q

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

21

Appendix

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

22

FT Segment – Change of Classification
Due to the diversification of payment methods, there will be a divergence fromthe actual situation in the conventional disclosure classification, change theclassification from the viewpoint of management approach from current termPrevious
Classification

New
Classification

Definition

Credit card
payment

Spread Type

Payment such as credit card payment, which
are fees that are based on the payment amount

Data processing

Fee Type

Payment in which fees are paid according to thenumber of payment processes, mainly Data
processing etc.

Convenience
store payment

Shop Payment Type

Payment settlement by convenience store
terminal

Stock Type

Fixed income generated by fixed monthly
amount such as monthly basic fee and OEM
offer fee for payment system

EC/DX business

Revenues from refund remittance service andgroup companies that develop payment
peripheral businesses etc.

Monthly basic fee/OEM
OthersCopyright © 2021 Digital Garage, Inc. All Rights Reserved23

FY21.3 3Q Consolidated P/L Summary (IFRS)FY20.3
JPY in Millions

1Q

3Q

4Q

1Q

Revenue

8,217

11,379

9,078

8,262

6,944

6,138

6,718

6,576

7,256

Revenue in operational
investment securities

459

3,332

968

Other income

817

422

Finance income

1

YonY

YonY (1Q-3Q)

1Q-3Q

1Q-3Q

%

Amount12,320

9,447

+4.1%

+369

28,67428,711

+0.1%

+37

6,148

6,301

6,138

-6.7%

-438

19,431

18,587

-4.3%

-844

-739

302

4,968

2,226

1.3 x

+1,257

4,759

7,496

+57.5%+2,737

301

877

193

207

214

-28.9%

-87

1,540

614

-60.1%

-926

16

28

48

1

0

17

-38.9%

-11

45

18

-59.2%

-27

803

891

1,205

821

300

843

853

-29.2%

-352

2,900

1,996

-31.2%

-904

5,999

6,271

6,016

8,643

6,539

6,689

6,123

+1.8%

+107

18,286

19,351+5.8%+1,065

Cost of sales

2,740

2,976

2,853

3,467

2,764

2,829

2,459

-13.8%

-394

8,569

8,052

-6.0%

-517

Selling, general andadministrative expenses

2,951

3,138

3,121

4,813

3,453

3,588

3,400

+9.0%

+279

9,210

10,441+13.4%+1,232Other expenses

78

86

74

254

69

109

69

-5.8%

-4

238

247

+4.0%

+10

Finance costs

230

71

-32

109

252

163

195

-

+226

270

610

1.3 x

+340

Profit before tax

2,218

5,108

3,062

-381

405

5,632

3,324

+8.6%

+262

10,388

9,361

-9.9%

-1,027

Profit attributable to owners of parent

1,624

3,647

2,253

-105

224

3,779

2,290

+1.6%

+36

7,525

6,293

-16.4%-1,232

Expenses

AmountFY 21.3%

Share of profit of investments accounted
for using equity method

2Q

FY 20.3

3Q

Revenue in recurring business

2Q

FY21.3

NOTE: The above Revenue, Expenses, and Profit before tax refers to the continuing operations excluding discontinued operations

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

24

FY21.3 3Q Consolidated Segment P/L Summary (IFRS)FY20.3

FY21.3YonY

FY 20.3

FY 21.3

YonY (1Q-3Q)

1Q-3Q

1Q-3Q

%

Amount

JPY in Millions

1Q

2Q

3Q

4Q

1Q

2Q

3Q

%

Revenue

8,217

11,379

9,078

8,262

6,944

12,320

9,447

+4.1%

+369

28,67428,711+0.1%+37

Financial Technology

2,083

2,204

2,184

2,138

2,340

2,409

2,525

+15.6%

+340

6,471

7,273

+12.4%+802

Marketing Technology

3,376

3,984

3,705

4,311

3,335

3,257

2,958

-20.2%-747

11,065

9,549-13.7%-1,515

Incubation Technology

507

3,462

1,405

-506

389

5,269

2,225

+58.3%

+819

5,374

7,883

+46.7%+2,509Long-term Incubation

2,232

1,696

1,744

2,257

801

1,305

1,646

-5.6%

-98

5,672

3,751

-33.9%-1,920

19

33

39

63

79

81

94

1.4 x

+54

92

254

1.8倍

+162

2,218

5,108

3,062

-381

405

5,632

3,324

+8.6%

+262

10,388

9,361

-9.9%

-1,027

Financial Technology

1,061

1,112

1,129

746

1,018

1,083

1,141

+1.0%

+12

3,303

3,242

-1.8%

-61

Marketing Technology

327

676

512

336

178

78

202

-60.5%

-310

1,516

458

-69.8%-1,058

Incubation Technology

146

3,138

1,114

-835

72

4,916

1,861

+67.1%

+747

4,398

6,849

+55.7%+2,451Long-term Incubation

1,493

932

890

1,385

120

485

843

-5.3%

-47

3,316

1,448

-56.3%-1,868Others/Adjustments and Eliminations

-810

-751

-584

-2,013

-983

-931

-724

-

-139

-2,145-2,637--492

Others/Adjustments and Eliminations

Profit before tax

Amount

NOTE: The above Revenue, Expenses, and Profit before tax refers to the continuing operations excluding discontinued operations

Copyright © 2021 Digital Garage, Inc. All Rights Reserved

25

Financial Results: Consolidated PL (IFRS)FY18.3

FY19.3

FY20.3

Other expenses
Finance costs
Profit before tax
Income tax expense
Profit from continuing oprerations

25,50318,141
1,007
2,111
764
3,481
17,127
7,187
9,095
542
303
8,376
1,857
6,518

35,68722,713
6,090
1,933
117
4,835
22,264
10,401
11,296332
235
13,424
4,088
9,336

36,936
26,687
4,020
2,416
93
3,720
26,92912,036
14,022492
379
10,0082,677
7,331■ Discontinued operations
Revenue
ExpensesProfit (loss) before tax
Income tax expense
Loss (gain) on sales on discontinued operations
Income tax expense from sale of discontinued operations
Profit (loss) from discontinued oprerations

3,260
3,403
-143
38
-181

1,261
1,655
-394
-225
898
275
454

-

6,337
6,412
-75

9,790
9,771
19

7,331
7,420
-89

JPY in Millions■ Continuing operations
Revenue
Revenue in recurring business
Revenue in operational investment securities
Other income
Finance income
Share of profit of investments accounted for using equity method
Expenses
Cost of sales
Selling, general and administrative expenses

ProfitOwners of parent
Non-controllong interests

ResultResultResultCopyright © 2021 Digital Garage, Inc. All Rights Reserved

26

Financial Results: Consolidated PL by Segments (IFRS)FY18.3

FY19.3

FY20.3

JPY in Millions

ResultResultResultRevenue

25,50335,68736,936

Financial Technology

5,929

7,447

8,609

Marketing Technology

9,939

12,922

15,375

Incubation Technology

2,553

8,022

4,868

Long-term Incubation

6,301

7,133

7,929

781

164

155

8,376

13,42410,008Financial Technology

2,809

3,349

4,049

Marketing Technology

1,856

1,215

1,853

Incubation Technology

1,321

6,889

3,563

Long-term Incubation

3,621

4,378

4,701

Others/Adjustments and Eliminations-1,231-2,408-4,158Others/Adjustments and Eliminations
Profit before tax

NOTE: Segment revenue and profit before tax are before elimination of intersegment transaction and corporate revenue and expenses.
Copyright © 2021 Digital Garage, Inc. All Rights Reserved27

Please note that the business forecasts and strategies covered in today’s presentation are based on our current evaluation and future results may vary significantly depending
on unforeseeable events or circumstances. This announcement is solely for the purpose of the investors relationship and is not for making any solicitation for investment inany securities. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any securities of our consolidated
subsidiaries have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of the U.S. Securities Act. Any public offering of securities to be made in the United States will bemade by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements.