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 Six Months Ended September 30, 2022
(Based on IFRS)
Company name:November 11, 2022

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:

November 14, 2022–

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

Yes
Yes

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 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%%%%%
yenyenyenyenof yen
Six months ended
14,564 (63.7)(6,642)–(4,439)–(4,351)–(4,308)–
September 30, 2022
Six months ended
40,109 108.2
27,425 354.3
18,409 374.0
18,496 362.0
18,013 234.4
September 30, 2021
Basic earnings per share

Diluted earnings per share

Yen(92.21)
401.21

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen(92.21)
362.60(2) Consolidated financial position
Total assets

As of September 30, 2022
As of March 31, 2022

Total equity

Millions of yen
232,686
231,607

Ratio of equity
attributable to owners ofparent to total assets
Millions of yen%
90,18638.8
95,73841.3

Equity attributable toowners of parent

Millions of yen
92,033
97,217

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––Yen0.00
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.)

1Total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 ofsecurities 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 six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:

NoNo

Changes in accounting estimates:No(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of September 30, 2022

47,598,700 shares As of March 31, 2022

47,482,800 shares

358,885 shares As of March 31, 2022

390,960 shares

Number of treasury shares at end of period
As of September 30, 2022

Average number of shares during period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

47,182,634 shares Six months ended September 30, 2021

246,099,313 shares

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

As of September 30, 2022

AssetsCurrent assets
Cash and cash equivalents

43,41555,705Trade and other receivables
Inventories

24,462347

19,976368

Operational investment securities
Other financial assets

77,950277

79,769279

Income taxes receivable
Other current assets

88
1,103

554
767

147,642

157,418

Property, plant and equipment
Goodwill

18,423
6,804

17,844
6,830

Intangible assets
Investment property

4,194
3,171

4,344
3,719

Investments accounted for using equity method
Other financial assets

27,80823,317

27,745
14,526

Deferred tax assets
Other non-current assets

17231

16244

Total non-current assets

83,96575,268

231,607

232,686

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of September 30, 2022

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

9,223

37,556

Trade and other payables
Other financial liabilities

43,9001,666

51,613
1,665

Income taxes payable
Other current liabilities

394
4,059245
3,159

Total current liabilities

59,242

94,237

Bonds and borrowings
Other financial liabilities

40,71010,683

15,594
9,877

Retirement benefit liability
Provisions

480
480

465
481

Deferred tax liabilities
Other non-current liabilities

22,001796

19,190809

Total non-current liabilities

75,14946,417

134,390

140,654

Share capital
Capital surplus

7,692
6,147

7,818
6,226

Treasury shares
Other components of equity(1,409)2,273(1,293)
2,344

Retained earnings

81,03575,090Total equity attributable to owners of parent

95,73890,186

Non-controlling interests

1,479

1,847

Total equity

97,217

92,033

231,607

232,686

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
Revenue
Revenue in recurring business

12,073

12,146

Revenue in operational investment securities
Other income

13,728
549

233
336

Finance income
Share of profit of investments accounted for using equity

11,401

1,0412,358

809

40,10914,564

5,148

5,117

7,134
188

7,869
167

methodTotalExpenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs

212

8,052

12,683

21,206

Profit (loss) before tax
Income tax expense

27,425
9,017(6,642)(2,203)

Profit (loss)

18,409(4,439)Profit (loss) attributable toOwners of parent

18,496(4,351)

Non-controlling interests

(87)

(89)

401.21(92.21)362.60(92.21)

TotalEarnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share5Stand-alone 2nd quarter of fiscal year
2nd quarter ended September(Millions of yen)
2nd quarter ended September

30, 2021

30, 2022

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,068
9,834

6,144
(7,301)Other income
Finance income

223
11,382176(1,090)Share of profit of investments accounted for using equity
method

1,758(1,099)Total

29,266(3,170)

2,617
3,831

2,495
4,112

117
151

87
7,982

6,715

14,676

Profit (loss) before tax

22,551(17,846)

Income tax expense

7,453(5,987)

Profit (loss)

15,098(11,859)

15,152(54)(11,818)(42)328.60296.52(250.20)(250.20)

Expenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs
Total

Profit (loss) attributable toOwners of parent
Non-controlling interests
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share6Condensed quarterly consolidated statements of comprehensive income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021Profit (loss)
Other comprehensive income

18,409(4,439)

(407)

(828)

(9)

22

21

938

00(395)132

18,013(4,308)

18,100(87)(4,225)(82)

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 toOwners of parent
Non-controlling interests

7

Stand-alone 2nd quarter of fiscal year

Profit (loss)

2nd quarter ended September(Millions of yen)
2nd quarter ended September

30, 2021

30, 2022
15,098(11,859)

(341)

(402)

(2)

22

22

346

00(321)(34)

14,777(11,893)

14,831(11,854)

(54)

(39)

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 toOwners of parent
Non-controlling interests8

Condensed quarterly consolidated statement of changes in equity
Six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Sharecapital

Balance 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

21

(416)

21

2,062
–(395)–
39–

0––(395)

–
163

––84

Transfer from other componentsof equity to retained earnings(175)

OtherTotal

(416)

(7)

–

Dividends
Share-based payment transactions

Balance at September 30, 2021

1,217

39

subsidiaries
Change in scope of consolidation–

853

Totalof defined

(175)

(7)

–

39

194

84(175)

––

(175)

7,675

4,760

(4,831)

261

1,237

(7)

1,491

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

52,785
18,496

62,134
18,496(395)0(395)

18,49618,10077(87)

18,013
77

0(23)

(22)

–
(1,475)6767(1,475)

Changes in ownership interest insubsidiaries
Change in scope of consolidation
Dividends
Share-based payment transactions
Transfer from other componentsof equity to retained earnings
Other
Total
Balance at September 30, 2021

Total

interests

Total

Other comprehensive income
Comprehensive income
Issuance of new shares

Non-controlling(1,475)

175

947
(87)

63,082
18,409

247

247

––

25

18

(1,274)(1,133)44(1,088)70,007

79,102905

80,007918

Six months ended September 30, 2022 (from April 1, 2022 to September 30, 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)

7,692

6,147

(1,409)

–
126

–
126

–

Other comprehensive income
Comprehensive income
Issuance of new shares
Changes in ownership interest in
subsidiaries

of foreign
operations

613

1,660

(806)

932

(806)

932

Totalof defined
benefit plans

02,273–125–

125––(59)

Purchase of treasury shares
Transfer from other components116––(0)–(54)of equity to retained earnings
Total

Remeasurements

ontranslation

13

Dividends
Share-based payment transactions

Balance at September 30, 2022

Exchangedifferences

(54)

126

80

116

(54)

––(54)

7,818

6,226

(1,293)

(248)

2,592

0

2,344

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

81,035(4,351)(4,351)

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings
Total
Balance at September 30, 2022

(1,648)

Total

interests

Total

Other comprehensive income
Comprehensive income
Issuance of new shares

Non-controlling

95,738(4,351)

1,479
(89)

97,217(4,439)1256132(4,225)
251

(82)

(4,308)
251

13

450

463

(1,648)57(1,648)57(0)(0)

54––(1,594)(1,326)450(877)

75,09090,186

1,847

92,03310

Condensed quarterly consolidated statements of cash flows
Six months ended(Millions of yen)Six months ended

September 30, 2021

September 30, 2022

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization

27,425
1,778(6,642)
1,804

(1)
117

(24)
134

Share of loss (profit) of investments accounted for using
equity method(2,358)(809)

Loss (gain) on investment securities
Decrease (increase) in trade and other receivables(11,325)
7,352

7,911
4,494

Decrease (increase) in investment securities for sale
Decrease (increase) in inventories(14,318)(35)(1,082)(21)

Increase (decrease) in trade and other payables
Increase (decrease) in accrued consumption taxes(1,323)
(649)

7,784
(273)

387

(1,086)

SubtotalInterest and dividends received

7,049
727

12,190759

Interest paid
Income taxes refund (paid)(35)(1,563)

(50)
(659)

Net cash provided by (used in) operating activities

6,179

12,239Interest and dividend income
Interest expenses on borrowings and bonds

Other

Cash flows from investing activities
Purchase of property, plant and equipment(1,284)(234)

Purchase of intangible assets
Purchase of investment securities

(619)
(2)

(772)
(2)

Proceeds from sale of investment securities
Payments for acquisition of subsidiaries

340(301)

128–

Purchase of investments accounted for using equity method
Other(538)109(38)24(2,293)(894)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

3,700
–

3,030
1,100

Repayments of long-term borrowings
Repayments of lease liabilities(2,608)(872)(1,237)(867)

Capital contribution from non-controlling interests
Dividends paid

42(1,473)

463(1,647)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Other(86)9(1,298)

851

2894

Net increase (decrease) in cash and cash equivalents

2,616

12,290Cash and cash equivalents at beginning of period

37,98943,415

Cash and cash equivalents

40,60555,705

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

11