Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Based on IFRS)
Company name:February 10, 2023

Digital Garage, Inc.

Stock exchange listing: Tokyo
Securities code:
4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,
Kaoru Hayashi
President Executive Officer and Group CEO

Inquiries:

Corporate Officer
Co-Head of Corporate DivisionNobuaki Doi

TELScheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 13, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNo

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable Comprehensive
Revenue
Profit before tax
Profitto owners of parent
incomeMillions ofMillions ofMillions ofMillions ofMillions
%
%
%
%
%
yen
yen
yen
yen
of yenNine months ended
22,333 (57.8)(11,858)–(8,123)–(7,962)–(8,550)–December 31, 2022
Nine months ended
52,888 84.2
33,679 259.8
22,640 271.3
22,801 262.3
22,210 191.5
December 31, 2021
Basic earnings per share

Diluted earnings per shareYen(168.93)494.49Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen
(168.93)447.15(2) Consolidated financial position
Total assets

As of December 31, 2022
As of March 31, 2022

Total equity

Millions of yen
234,358
231,607

Ratio of equity
attributable to owners ofparent to total assets
Millions of yen%
81,14934.6
95,73841.3

Equity attributable toowners of parent

Millions of yen
83,21997,217

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
0.00
0.00

Yen
–
–

Yen
35.00

Yen
35.00

–

–

Year ending March 31, 2023 (Forecast)(Note 1. Revision to the dividend forecast most recently announced : No)(Note 2. The dividend forecast for the fiscal year ending March 31, 2023 has not been determined.)

1

Total

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
The Company does not disclose its consolidated financial results forecast because it is difficult to reasonably estimate the fair value of
securities held by the Group at the end of the fiscal year in the field of investment and incubation in domestic and overseas unlisted companies
in the Incubation Technology Segment.
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No

No
No
No

(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of December 31, 2022

47,603,900 shares As of March 31, 2022

47,482,800 shares

1,509,426 shares As of March 31, 2022

390,960 shares

Number of treasury shares at end of period
As of December 31, 2022

Average number of shares during period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

47,127,770 shares Nine months ended December 31, 2021

2

46,110,155 shares

Condensed quarterly consolidated financial statements
Condensed quarterly consolidated statement of financial position(Millions of yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and cash equivalents

43,41568,906

Trade and other receivables
Inventories

24,462347

19,762
401

Operational investment securities
Other financial assets

77,950277

72,193
271

Income taxes receivable
Other current assets

88
1,103

521
981

147,642

163,035

Property, plant and equipment
Goodwill

18,423
6,804

17,1786,801

Intangible assets
Investment property

4,194
3,171

4,477
3,393

Investments accounted for using equity method
Other financial assets

27,80823,31726,098
13,102

Deferred tax assets
Other non-current assets

17
231

16
257

Total non-current assets

83,96571,323

231,607234,358

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of December 31, 2022

As of March 31, 2022
Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

9,223

41,258Trade and other payables
Other financial liabilities

43,9001,666

62,503
1,673

Income taxes payable
Other current liabilities

394
4,059

598
3,486

Total current liabilities

59,242

109,517

Bonds and borrowings
Other financial liabilities

40,71010,683

14,654
9,528

Retirement benefit liability
Provisions

480
480

475
476

Deferred tax liabilities
Other non-current liabilities

22,001796

15,687803

Total non-current liabilities

75,14941,622

134,390

151,140

Share capital
Capital surplus

7,692
6,147

7,825
6,230

Treasury shares
Other components of equity(1,409)2,273(6,177)
1,448

Retained earnings

81,03571,823

Total equity attributable to owners of parent

95,73881,149Non-controlling interests

1,479

2,070

Total equity

97,217

83,219231,607234,358

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income
First nine months of fiscal year
(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2021
Revenue
Revenue in recurring business

18,29818,508

Revenue in operational investment securities
Other income

18,106
752

–
3,291

Finance income
Share of profit of investments accounted for using equity

11,914

391

3,819

143

52,88822,333

7,811

7,539

–
10,830

6,009
11,861

287
281

263
8,520

19,20934,191

Profit (loss) before tax

33,679(11,858)

Income tax expense

11,038(3,735)

Profit (loss)

22,640(8,123)22,801(161)(7,962)(161)

494.49447.15(168.93)(168.93)

methodTotal
Expenses
Cost of sales
Loss in operational investment securities
Selling, general and administrative expenses
Other expenses
Finance costs
Total

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share5Stand-alone 3rd quarter of fiscal year
3rd quarter endedDecember(Millions of yen)
3rd quarter endedDecember

31, 2021

31, 2022

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,226
4,378

6,362
(233)

202
513

2,955
(650)

Share of profit of investments accounted for using equity
method

1,461

(665)

Total

12,779

7,769

Cost of sales
Loss in operational investment securities

2,662
–

2,421
6,009

Selling, general and administrative expenses
Other expenses

3,696
99

3,992
96

Other income
Finance income

ExpensesFinance costs

69

468

6,526

12,986

Profit (loss) before tax
Income tax expense

6,253
2,022

(5,216)(1,533)

Profit (loss)

4,232(3,684)

Profit (loss) attributable to
Owners of parent

4,305(3,611)

Non-controlling interests

(74)

(73)

Earnings (loss) per share
Basic earnings (loss) per share

93.33(76.80)84.62(76.80)Total

Diluted earnings (loss) per share6Condensed quarterly consolidated statements of comprehensive income
First nine months of fiscal year
(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2021
Profit (loss)
Other comprehensive income

22,640(8,123)

(564)

(885)

(14)

17

147

441

(0)

0

(431)

(427)

22,210(8,550)22,369(160)(8,389)(161)

Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

7

Stand-alone 3rd quarter of fiscal year

Profit (loss)

3rd quarter endedDecember(Millions of yen)
3rd quarter endedDecember

31, 2021

31, 2022
4,232(3,684)

(157)

(57)

(4)

(5)

126

(497)

(0)

0

(35)

(559)

4,196

(4,243)

4,269(4,164)

(73)

(79)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests8

Condensed quarterly consolidated statement of changes in equity
Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share
capitalBalance at April 1, 2021

Capitalsurplus7,637

Financial assets

Exchangemeasured at

differenceson

Remeasurements

comprehensive

translationof foreign

benefit plansincomeoperations

Treasuryshares4,566

fair value
through other(4,915)

Profit (loss)
Other comprehensive income
Comprehensive income
Issuance of new shares
Changes in ownership interest in

146

(577)

146

2,062
–
(432)

–
44

–

170

–

–

(432)

–
188

–
–

84

Transfer from other componentsof equity to retained earnings

(175)

Other
Total

(577)

(7)

–

Dividends
Share-based payment transactions

Balance at December 31, 2021

1,217

44

subsidiaries
Change in scope of consolidation

–

853

Total

of defined

(175)

(63)

–

44

339

84

(175)

–

–

(175)

7,681

4,905

(4,831)

100

1,362

(7)

1,455

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2021
Profit (loss)

52,78522,801

62,13422,801
(432)

1

(431)

22,801

22,36987(160)

22,210
87

170

569

739

–
(1,475)67

67(1,475)

Changes in ownership interest in
subsidiaries
Change in scope of consolidation
Dividends
Share-based payment transactions
Transfer from other componentsof equity to retained earnings
Other
Total
Balance at December 31, 2021

Total

interests

Total

Other comprehensive income
Comprehensive income
Issuance of new shares

Non-controlling(1,475)

175

947
(161)

63,082
22,640

272

272

–

–

25

(38)

(1,274)

(983)

636

(347)

74,312

83,521

1,423

84,9449(38)

Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured atfair value
through othercomprehensive
incomeBalance at April 1, 2022
Profit (loss)(1,409)

613
(868)

441

–
133

–
133

–

(868)

441

1,660

Total

of defined
benefit plans

0

2,273
–

–

(428)
–

(428)

13

Dividends
Share-based payment transactions
Purchase of treasury shares
Transfer from other components

–

(37)

116

–
–

(12)

(4,884)–(397)

of equity to retained earnings
Other
Balance at December 31, 2022

Remeasurementsof foreign
operations

6,147

Changes in ownership interest in
subsidiaries

Total

on
translation

7,692

Other comprehensive income
Comprehensive income
Issuance of new shares

Exchangedifferences

(397)

(14)

–

133

83

(4,767)

(397)

–

–

(397)

7,825

6,230

(6,177)

(653)

2,101

0

1,448

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2022

Non-controllinginterests

Total

Total

81,03595,738

1,479

97,217

Profit (loss)
Other comprehensive income(7,962)(7,962)
(428)

(161)
0

(8,123)(427)

Comprehensive income(7,962)(8,389)(161)(8,550)Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

265
13(1,648)

Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings

397

Other
Total
Balance at December 31, 2022

265
752

765

(1,648)(1,648)79(4,896)79(4,896)

–

–

(14)

(14)

(1,251)(6,200)752(5,448)71,823

81,1492,070

83,21910

Condensed quarterly consolidated statements of cash flows

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Interest and dividend income
Interest expenses on borrowings and bonds
Share of loss (profit) of investments accounted for using
equity method
Loss (gain) on investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Decrease (increase) in trade and other receivables
Decrease (increase) in investment securities for sale
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in accrued consumption taxes
Other

Nine months ended(Millions of yen)
Nine months ended

December 31, 2021

December 31, 2022

33,679
2,689
(11)
179

(11,858)
2,716
(53)
202

(3,819)(143)(11,666)–
6,489(19,427)
(4)
9,772
(899)
160

8,308
(2,720)
4,752
6,119
(54)
18,299(167)(395)

SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)

17,143
1,453(48)(2,464)25,004
1,501(76)(1,767)

Net cash provided by (used in) operating activities

16,082

24,661(1,467)
(982)
(15)
340
(301)
(550)

(300)
(1,221)
(3)
846
–
(538)

–

3,337

114

26

Net cash provided by (used in) investing activities(2,861)

2,148

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Capital contribution from non-controlling interests
Purchase of treasury shares
Dividends paid
Other

2,680
10,100(9,864)(1,307)806–(1,474)
(86)

6,560
1,100
(1,921)(1,300)765(4,896)(1,647)16

Net cash provided by (used in) financing activities

856(1,323)66

4

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

14,14437,98925,49043,415

Cash and cash equivalents

52,132

68,906

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for acquisition of subsidiaries
Purchase of investments accounted for using equity method
Proceeds from sale of investments accounted for using equity
methodOther

Effect of exchange rate changes on cash and cash equivalents

11