Digital Garage, Inc.

3Q of FYE March 31, 2018 Financial Report2018.2.9

Investment Highlights
FY18.3 3Q (cumulative):
Sales 43.9 B JPY, operating income 2.1 B JPY, and income before income taxes 5.8 B JPY〜 High growth in MT/FT, especially in FT in 3Q(Oct.-Dec.). Progress in income before
income taxes was 73% 〜

Ⅰ

Ⅱ

Ⅲ

Consolidated result: YoY* Sales grew by 20%, operating income grew 3 times YoY, unchanged
income before income taxesAchieved record-high sales in 3Q (Apr.-Dec.). MT/FT posted record-high segment profit.



Extraordinary factors such as investment profit on equity method etc due to the previous fiscal year's irregular settlement results
absorbed a total of 1.3 B JPY, and income before income taxes maintained at JPY 5.8 B JPY.

MT/FT: Continued expansion of internet ad and payment business. Substantial increase insales and profits

MT marked substantial increase in sales and profits. Sales achieved 25.3 B JPY, YoY +24％, and income before income taxes
achieved 1.5 B JPY, YoY +40%. Mainline performance-based ads drive strongly and grew exceeding the market.



FT marked substantial increase in sales and profits. Sales achieved 15.6 B JPY, YoY +10%, and income before income taxes
achieved 1.8 B JPY, YoY +26%. Transaction volume expanded to 1,100 B JPY, and grew exceeding EC market. Non-EC payment, a
key business area, has increased especially face-to-face settlement and cryptocurrency exchange settlement.

IT/LTI: Made progress in exit in Japan and overseas. Establish mid-long term incubation
structure of promising investments


IT income before income taxes jumped 2.3 times YoY to 1.7 B JPY. Sold domestic and overseas investment portfolios sequentially. Income
before income taxes decreased YoY due to irregular results in the previous fiscal year and the recording of extraordinary income in LTI, butinvestment profit on equity method of Kakaku.com trended steadily.



DG Lab promotes strategic projects that utilize “DG Lab DVEP”™ for unique cryptocurrency. Blockstream, a strategic businessalliance partner, made a strategic agreements with Intercontinental Exchange (NYSE:ICE), which owns the New York Stock
Exchange, for starting to offer transaction prices of primary cryptocurrencies.

Note:* Due to the change of fiscal term last year, the YoY comparisons here are between FY17.3 (nine months accounting) and FY18.3 3Q (cumulative).
Copyright © 2018 Digital Garage, Inc. All Rights Reserved2Group Financial Performance Review

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

3

FY18.3 3Q (Cumulative) Consolidated P/L Summary
YoY* sales grew by 20% record high of 43.9 B JPY and operating income tripled to 2.1B JPY～ Good progress rate towards full year forecast:sales 75%, income before income taxes 73%, net income 74% ～A
FY17.3

B
ref. C (=B/A)
FY18.3
YoY

D
FY17.3E
FY18.3

2Q Act3Q Act

1Q-3Q Act

1Q-3Q Act

(10-12)(10-12)(7-3)(4-12)

12,25815,201+24.0

36,451

Operating income

493

775

+57.2

Non-operating income

1,064

819

Investment profit on equity method

665

Foreign exchange gain

JPY in Millions

FY18.3%

Amount43,921+20.5+7,469

723

2,192

3.0 x

+1,468

-23.0

3,246

2,318

-28.6

-928

681

+2.4

2,528

1,914

-24.3

-614

274

3

-98.8

171

12

-92.6

-158

Non-operating expenses

13

85

6.3 x

292

323

+10.6

+31

Foreign exchange loss

-67

-

-

-

-

-

-

1,544

1,509

-2.3

3,678

4,187

+13.8

+509

20

822

41.1 x

2,265

1,675

-26.0

-589

Gain on sales of investments in securities

-

-

-

1,829

717

-60.8

-1,112Gain on sales of shares of sub. and associates

-

798

-

386

798

2.1 x

+412

1,564

2,324

+48.6

5,819

5,818

-0.0

-0

547

745

+36.1

1,525

1,740

+14.1

+215

1,014

1,562

+54.0

4,289

4,052

-5.5

-236

Gross sales

Ordinary income
Extraordinary income

Income before income taxes
Income taxes
Net income attributable to owners of parent%

ref. F (=E/D)
YoY

Full Year

1Q-3Q

Forecast

Progress

58,500

75%

8,000

73%

5,500

74%

Note: Due to the change of fiscal term last year, the YoY comparisons here are between FY17.3 (nine months accounting) and FY18.3 3Q (cumulative).
Kakaku,com.Inc. is affiliated company for using the equity method, and started to apply IFRS from FY18.3. The figures on FY17.3 has been applied retrospectively.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

4

FY18.3 3Q (Cumulative) Consolidated Segment P/L Summary
Income before income taxes in MT up 40% YoY and FT up 26% YoY as recurring businesses～ FT drove 3Q(Oct.-Dec.) Sales grew by 13% of 5.4 B JPY compared to 2Q FY17.3, and income before
income taxes grew by 51% of 0.69 B JPY ～A

Bref. C (=B/A)

D

E

ref. F (=E/D)

FY17.3

FY18.3

YoY

FY17.3

FY18.3YoY

2Q Act3Q Act

1Q-3Q Act

1Q-3Q Act

(10-12)(10-12)(7-3)(4-12)

12,25815,201+24.0

36,451MT Marketing Technology

6,843

8,079

+18.1

FT Financial Technology

4,818

5,459

IT Incubation Technology

584

LTI Long Term Incubation

JPY in Millions

FY18.3Full Year

1Q-3Q

Forecast

Progress+7,46958,50075%+23.8+4,88432,00079%

15,619+10.5+1,47920,500

76%

1,775

2,355

+32.6

+579

6,000

39%

42.9 x41567

13.8 x

+525

-

-

2,324

+48.6

5,819

5,818

-0.0

-0

8,000

73%

415

403

-3.0

1,074

1,501

+39.7

+427

1,750

86%

FT Financial Technology

462

699

+51.1

1,478

1,857

+25.6

+378

2,300

81%

IT Incubation Technology

142

1,656

11.6 x

766

1,778

2.3 x

+1,011

3,800

47%

LTI Long Term Incubation

670

588

-12.3

2,899

1,835

-36.7

-1,063

2,500

73%

%

Amount43,921+20.5

20,49425,379+13.3

14,140

1,115

+91.0

12

546

1,564

MT Marketing Technology

Gross sales

Income before income taxes%

Note: Due to the change of fiscal term last year, the YoY comparisons here are between FY17.3 (nine months accounting) and FY18.3 3Q (cumulative).
Income before income taxes per segment is based on figures prior to elimination or group deduction, etc
MI segment has been changed to LTI segment from FY18.3, by aiming to generate sustainable business profit in mid-long term.
Some businesses in IT segment have transferred to LTI, therefore figures on FY17.3 updated with the current category.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

5

FY18.3 3Q Consolidated B/S Summary
JPY in Million

FY17.3

FY18.3 3Q

Difference

Reason for change / Remarks

Current assets

59,62484,448+24,823

Cash and deposits

23,02931,151+8,121

Income by the sales of investment securities, new borrowings etc

Receivables

15,422

24,456+9,033

Money held in trust

2,264

8,537

+6,272

Expansion of FT business
Expansion of FT business

11,856

12,922+1,065New investment, Mark-to-market, etc

Fixed assets

32,06133,721+1,660Investment securities

18,357

16,661-1,696

Goodwill

5,411

7,989

+2,577

Total assets

91,686

118,170+26,483

Current liabilities

38,81558,211+19,395

Deposits

25,12745,931+20,803

Short-term borrowing

6,937

5,065

-1,872

Fixed liabilities

18,49921,200+2,700Long-term borrowing

17,207

19,819+2,611

Total liabilities

57,31579,411+22,096

Net assets

34,37138,759+4,387

Shareholders' equity

31,63334,990+3,356

Common stock

7,437

7,445

+7

Capital surplus

2,946

3,158

+211

Retained earnings

21,30024,413+3,112

Accumulated other comprehensive income

1,956

2,575

+619

Unrealized gains on securities

644

1,255

+611

91,686

118,170+26,483

Operational investment securities

Liabilities / Net assets

Sales of investment securities, Transfer of investment securities of DG Life Designthat has become a consolidated subsidiary to goodwill, New investment, Increased
investment profit on equity method

Consolidation of DG Life Design, Inc.

Expansion of FT

Shift to long-term fixed rate

Increased net profit

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

6Segment Performance Review

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

7

MT Segment Highlights
Sales in 3Q marked 8.0 B JPY, +18% compared to 2Q FY17. Driven by performance-based ads～ Good progress in sales 79% and in income before income taxes 86% ～Sales(JPY in
100 Million)

Income before income taxes(+24%)

320

253(+18%)

204

15.0

79％

68

17.5

Progress

10.7

Progress

80

86％

(▲3%)

4.1 4.0

FY17.3 FY18.3
2Q(+40%)(JPY in
100 Million)

3Q(10-12) (10-12)

FY17.3 FY18.3
1Q-3Q 1Q-3Q(7-3)(4-12)

FY18.3

FY17.3 FY18.3(4-3)(10-12) (10-12)

Plan

Grew by 18% compared to 2Q FY17, driven by
performance-based ads
Good progress rate of 79% despite special factors
in 2Q FY182Q

3Q

FY17.3 FY18.3 FY18.3
1Q-3Q 1Q-3Q

Plan

(7-3)

(4-3)

(4-12)

Gross margin increased steadily, but income before income
tax declined slightly due to an increase in SG&A expenses
for upfront investment such as on Ad Technology, global
business expansion etc.
Good progress rate: 86%
Copyright © 2018 Digital Garage, Inc. All Rights Reserved8

MT Segment Highlights
3Q sales of performance-based ads marked 6.3 B JPY, +19% compared to 2Q FY17.
Sales increased in all business categories～ Sales of smartphone/app business increased by 24%, cosmetics/HR by 21%, financial by 15%
compared to 2Q FY17 ～Sales by business categories (Performance-based ads)
FY16.6

FY17.3

FY18.3(JPY in
100 Million)

79
63

46
12
13

Business categories

51

53

54

14

16

17

14

16

17

35

19

63
19

All

+ 19 %

Smartphone/ Entertainment/
App
Game

+ 24 %

22

20

19

Cosmetics/
HR/Others

24

Financial

20

21

21

20

21

23

4Q

1Q

2Q

3Q

1Q

2Q

3Q

(4-6)

(7-9)

(10-12)

(1-3)

(4-6)

(7-9)

(10-12)Compared to 2Q
FY17 with 3Q FY18

Cosmetics/
Medicine/HR/
Foods etc

+ 21 %

Banks/ Securities/
Credit cards/
Insurance etc+ 15 %

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

9

FT Segment Highlights
Substantial increase in net sales and profit: Sales in 3Q marked 5.4 B JPY, +13% compared to
2Q FY17, income before income taxes marked 0.69 B JPY, +51％
～ Good progress in sales 76% and in income before income taxes 81% ～
売上高

Sales

Income before
income taxes
税引前利益(+10%)(JPY in
100 Million)

141

205

(JPY in
100 Million)(+26%)

156

48

2Q

3Q

(10-12) (10-12)

14.7

Progress

81％

4.6

54

FY17.3 FY18.3

6.9

76％

(+13%)

18.5(+51%)
Progress

23.0

FY17.3 FY18.3 FY18.3
1Q-3Q 1Q-3Q

Plan

(7-3)

(4-3)

(4-12)

Growth of existing client, acquisition of major EC
companies, and transaction expansion of non-EC payment
such as mobile payments are contributed

FY17.3 FY18.3
2Q

3Q(10-12)(10-12)

FY17.3 FY18.3 FY18.3
1Q-3Q 1Q-3Q

Plan

(7-3)

(4-3)

(4-12)

Marginal profit expanded due to increase in transaction,
income before income taxes grew by 51% compared to
2Q FY17, reaching a record high.
Good progress rate: 81%
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

10

FT Segment Highlights
Transaction marked approx. 420 B JPY, +22% compared to 2Q FY17, exceeded EC market growth～ Rapid expansion of face-to-face payments and cryptocurrency exchange settlementin Non-EC payment, a focusing area ～Transaction volume in focusing area
(Non-EC payment)

Transaction Record
FY16.6

FY17.33,441 3,423

Compared to 2Q
FY17 with 3Q FY18

FY18.3

4,196(+22%)(JPY in
100 Million)

2,980

FY17.3

FY18.3

2.8 x

AllSpecific Market(Real estate/
Funeral)

3,640
3,405

3,091

+ 38 %

Person-to-person
payments(Remittance payments)+ 11 %

4Q

1Q

2Q

(4-6)

(7-9) (10-12)

3Q

3Q

1Q

2Q

(1-3)

(4-6)

(7-9) (10-12)

2Q

Charging/Exchange
settlement(Cryptocurrency)

6.2 x

Face-to-facepayments(Mobile payments)

5.8 x

3Q

(10-12) (10-12)

Continued growth significantly higher than the EC market growth rateof 9.9%Copyright © 2018 Digital Garage, Inc. All Rights Reserved

11

IT Segment Highlights
Sold domestic and overseas investment portfolios sequentially
Income before income taxes grew strongly from 2Q FY18
～ New CIO has been appointed and continues to strengthen investment activity in US/Asia ～Income before income taxes
FY16.6

FY17.3

FY18.3

1.4

17.7

Progress

47％

2.3

-7.4

FY18.3 FY18.3-1.1
4Q 1Q 2Q 3Q

38.0(JPY in
100 Million)

16.5

13.7 13.6

Major Portfolio

1Q 2Q

3Q

1Q-3Q

Plan

(4-12)(4-3)

12.1 B JPY

Domestic45

1.8 B JPY

Overseas9110.2 B JPY

Fund

11

0.8 B JPY

Total

147

12.9 B JPY

Develops sidechain technologies,
parallel blockchains that areinteroperable

A public relations service provider. Utilizing
the concept of “storytelling®,” it expands its
service to an all-in-one public relations.

Droom [India]

Goodpatch [Japan]

A leading online marketplace for new andsecond-hand automobiles in India

Web development and consulting service
firm

Virtual reality community and VR media
player for aspiring and professional
creatives

Book Value

136

EquityPR Table [Japan]

Wevr [U.S.]

Book Value# ofcompanies

Blockstream [U.S. /Canada]

Note)DG Incubation’s investment balanceMark-to-market as of quarter end for listed
stocks. Equity includes convertible note.Book value totals may not match details
because of rounding down fractions

Monstar Lab[Japan]
Operates Sekai Lab, a global outsourcing
platform that provides a network of over
10 k engineers in over 15 countries

PureTech Health [U.S.]

Panair [Japan]

A US based company that focuses on
incubation in advanced biotechnology field.
Listed on LSE.

Provides “Odin”, an automated electricity
retail platform that uses cloud computing
and artificial intelligence.

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

12Topics : DG Lab
Driven by R&D and fund investment focusing on five key fields, fully startdevelopment of key technologies that can be the center of next-gen business.
Accelerated commercialization such as implementing feasibility tests and businessalliances.
BLOCK
CHAIN

A strategic business alliance partner Blockstream, partners with NYSE-parent ICE for
cryptocurrency data feed

 Blockstream, DG’s strategic business alliance partner, madea strategic agreement with the Intercontinental Exchange(ICE), which owns the New York Stock Exchange etc, for
Cryptocurrency Data Feed.
 Blockstream collects a wide range of information from
more than 15 cryptocurrency exchanges including prices
and order book data for bitcoin and other cryptocurrencies,
and offers it to ICE in real time.

About Intercontinental Exchange: Operates electronic trading exchange that handles stock index,
foreign exchange, energy, precious metals and agricultural products. Listed on the New York Stock
Exchange. (NYSE: ICE)
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

13

LTI Segment Highlights
Income before income taxes in 3Q marked 0.58 B JPY. Although income decreased compared to 2Q FY17 due toupfront investments in new businesses, investment profit on equity method of Kakaku remains robust～ Good progress in income before income taxes: 73% ～Business progress of Kakaku.com, Inc.

Income before income taxes

28.9(JPY in
100 Million)

New business/
Upfront investment

-0.2

-1.2

3Q
(1-3)
2Q
(10-12)

5.8

6.7

1Q
(4-9)

FY17.3 FY18.3
2Q【Total Accumulated Traffic for Kakaku.com Group】

3Q(10-12) (10-12)Monthly traffic for all sites of Kakaku.com has increased to

25.0

9.7

262.69 million, up 34.5% yoy (December 2017)
YoY+34.5%(in million people)

18.3
6.7

Progress

73％

6.1
6.4

FY17.3 FY18.3 FY18.3
1Q-3Q

1Q-3Q

Plan

(7-3)

(4-12)(4-3)Note) FY17.3 1Q booked 6 months (Apr.-Sep.) ofinvestment profit on equity method of Kakaku.com, Inc.

Mar

June

Sept
2015

Dec

Mar

June

Sept

2016

Dec

Mar

June

Sept

Dec

2017
Ref. Kakaku.com, Inc. Results Briefing for 3Q FY2018/3

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

14Appendix

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

15

Financial results by quarters: Consolidated sales
Consolidated sales
FY16.6

FY17.3

FY18.3(+24%)

156

As reference, comparisons showed here152

are between 3Q (10-12) FY18.3 and 2Q(10-12) FY17.3 in real terms which is the

131
116
103

122

122

same quarterly of last year

126

115

 3Q sales marked 15.2 B JPY, up
24% compared to 2Q FY17

95

 Both MT and FT segments
sustained high growth and it
drove the consolidated sales
growth(JPY in 100
Million)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

(7-9)(10-12)(1-3) (4-6) (7-9)(10-12)(1-3) (4-6) (7-9)(10-12)

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

16

Financial results by quarters: Consolidated operating income
Consolidated operating income
FY16.6

FY17.3

FY18.3

 3Q operating income marked 0.77 B
JPY, up 57% compared to 2Q FY17

14.7

14.2

10.9
9.5

(+57%)
4.1

4.9

7.7

 3Q operating income ratio marked
5.1%, up 1.1 points compared to 2Q
FY17 of 4.0%, then improved
profitability

4.6

2.0
(JPY in 100

-1.8
1Q

2Q

3Q

4Q

1Q

2Q

3Q

Million)1Q Growth in gross margin in FT andsales of shares in IT contributed
to operating income growth

2Q

3Q⇒ Achieve the good balance ofhigh growth potential andimprovement of profitability(7-9)(10-12)(1-3) (4-6) (7-9)(10-12)(1-3) (4-6) (7-9)(10-12)

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

17

Financial results by quarters: Consolidated income before income taxes
Consolidated income before income taxes
FY16.6

FY17.331
28

FY18.3

Kakaku.com,Inc.
Investment profit onequity method

6 (7-9) by fiscal termchange

19

19

18

15

(+49%)

2316

8

 3Q income before income taxes
marked 2.3 B JPY, up 49%
compared to 2Q FY17
 FT and IT contributed tosignificant increase in income
before income taxes

11
8(JPY in100
Million)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

(7-9) (10-12) (1-3) (4-6) (7-9) (10-12) (1-3) (4-6) (7-9)(10-12)
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

18

Financial results: Consolidated profit and loss
JPY in Millions

Gross sales

FY14.6

FY15.6

FY16.6(Full Year Act)

(Full Year Act)

(Full Year Act)

FY17.3

FY18.3(Full Year Act)

(Full Year

9 monthFCST)

33,751

38,08743,76336,451

Operating income

2,608

4,809

4,201

723

Non-operating income

2,307

3,736

3,031

3,246

1,741

2,080

2,406

2,528

Foreign exchange gain

143

1,090

-

171

Non-operating expenses

472

936

1,040

292

Foreign exchange loss

-

-

689

-

4,442

7,610

6,193

3,678

630

2,463

1,392

2,265

Gain on sales of investments in securities

220

68

-

1,829

Gain on sales of shares of sub. and associates

-

-

521

386

374

2,363

157

47

26

23

706

-

38

824

10

124

0

657

-

104

Income before income taxes

5,035

9,248

7,574

5,819

Income taxes

1,887

3,855

2,385

1,525

Net income attributable to owners of parent

2,847

5,081

5,165

4,289

Investment profit on equity method

Ordinary income
Extraordinary income

Gain on change in equity
Gain on transfer of business
Extraordinary loss
Impairment loss

58,500

8,000
5,500

Note: Kakaku,com.Inc. is affiliated company for using the equity method, and started to apply IFRS from FY18.3. The figures on FY17.3 has been applied retrospectively.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

19

Financial results: Consolidated profit and loss by segments
FY14.6

FY15.6

FY16.6(Full Year Act)

(Full Year Act)

(Full Year Act)Net sales

33,751

38,08743,76336,45158,500MT

Marketing Technology

14,822

16,06421,02820,49432,000

FT

Financial Technology

13,454

14,56816,392

14,14020,500IT

Incubation Technology

5,475

7,454

6,343

1,775

6,000

LTI* Long Term Incubation

-

-

-

41

-

5,035

9,248

7,574

5,819

8,000

JPY in Millions

Income before income taxes

FY17.3

FY18.3(Full Year Act)

(Full Year

9 monthFCST)

MT

Marketing Technology

874

1,061

1,396

1,074

1,750

FT

Financial Technology

1,496

1,335

1,758

1,478

2,300

IT

Incubation Technology

1,595

2,804

3,105

766

3,800

Long Term Incubation

1,776

4,477

3,052

2,899

2,500

LTI

*

Note: Income before income taxes per segment is based on figures prior to elimination or group deduction, etc*MI segment has been changed to LTI segment from FY18.3, by aiming to generate sustainable business profit in mid-long term.
Some businesses in IT segment have transferred to LTI, therefore figures on FY17.3 updated with the current category.
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

20

Press Releases
Date

Title

2018.1.22

Intercontinental Exchange and Blockstream (Digital Garage's Strategic Business Alliance Partner)
Launch Consolidated Data Feed for Cryptocurrencies （Blockstream's press release)2018.1.17

VeriTrans and econtext Offer Support for DOCOMO's "d PAY" Barcode Payments from Spring 20182018.1.15

Digital Garage and ANA Trading to Support Inbound Marketing for Domestic Companies and Local
Governments

2018.1.15

VeriTrans - Comprehensive Payment Solution VeriTrans4G Supports Google Pay

2017.12.27

Digital Garage Has been Selected as an LSO for Scaling Bitcoin to be Held in Tokyo in 20182017.12.12

Digital Garage Group to Cooperate in the 7th Digital Innovation Grand Prix Organized by the Keio
Research Institute at SFC

2017.11.21

Digital Garage Forms a Strategic Business Alliance with Blockstream, Entering the Second Phase ofDeveloping Blockchain Technology for Bitcoin

2017.11.21

Digital Garage and Tokyo Tanshi to Partner in FinTech, Development of New Financial Business with
Blockchains and AI

2017.11.20

econtext to Manage New System for Civil Fee Payments Made at Convenience Stores within Osaka
Prefecture2017.11.13

Digital Garage to Build Shibuya into a Smart City that Employs Advanced Technology by Joining Future
Design Shibuya

2017.10.30

Digital Garage Appoints Brian Yeh as Chief Investment Officer of DG Incubation to Strengthen North
American and Asian Investment Businesses

2017.10.26

VeriTrans to Provide Ministry of Health, Labour and Welfare with Credit Card Payment Service to the
National Pension Fund2017.10.10

DG Lab Developed All-Purpose Framework "DG Lab DVEP" TM for Unique Cryptocurrency throughBlockchain's Bitcoin

2017.10.3

DG Lab Fund Invested in Skydisc, a Cloud Service Using AI/IoT as the Fukuoka City's Startup Support
Program's First Project2017.10.2

Digital Garage and Tencent to Co-develop "QQ Odekake Japan", Mobile QQ's Contents for Japan-bound
Chinese Tourists

2017.9.29

DG Lab to Host THE NEW CONTEXT CONFERENCE 2017 SAN FRANCISCO

2017.9.21

Digital Garage Begins Support for Startups in Fukuoka Region in Cooperation with the Fukuoka
Directive Council

2017.9.8

DG Lab Fund Invested in 12 Start-ups with Next-Generation Technology in Fields such as Blockchain,AI, and Biotech
Copyright © 2018 Digital Garage, Inc. All Rights Reserved

21

Press Releases
Date

Title

2017.8.31

Collaboration Partners Selected for TOYOTA NEXT, the Open Innovation Program Supported by Digital
Garage2017.8.29

Digital Garage Hosted "Digital Garage First Penguin Award 2017", which Honors Leaders who
Creatively Challenge The World2017.6.20

DG Lab to Unveil Open Platform for Interactive Agent Technology that Uses Artificial Intelligence2017.6.1

Digital Garage to Invest in AI Technology Startup Studio All Turtles and Support their Business
Development in Japan.

2017.5.31

THE NEW CONTEXT CONFERENCE 2017 TOKYO on July 25-26 The Event will Focus on Biotechnology
and Blockchain

2017.5.12

Digital Garage officially launches lifestyle service for wealthy consumers Business integration with two
subsidiaries leads to development of DG Life Design business2017.4.5

Blockstream Launches New Confidential Assets Feature for Enterprise Blockchain Customers (Press
Release of Blockstream)

Copyright © 2018 Digital Garage, Inc. All Rights Reserved

22

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.