Member of Financial Accounting Standards Foundation

Summary of Consolidated Financial Statements for the First Quarter, FY2017
February 3, 2017
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

URL: http://corp.gmo-pg.com/

Representative:

Issei Ainoura

President &Representative Director

Contact:

Ryu Muramatsu

Executive Vice President

Tel: +81-3-3464-0182

Scheduled date of submission ofquarterly reportFebruary 13, 2017

Scheduled date ofcommencement ofdividend payment-

Supplemental materials preparedfor financial results

Yes

Information meeting arranged
related to financial resultsYes (for institutional investors andanalysts)(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the First Quarter, FY2017 (Cumulative)(From October 1, 2016 to December 31, 2016)(1) Consolidated Financial Statements (Percentages denote the increase or decrease from the previous period)
Net sales
1Q FY2017
1Q FY2016

Million yen
4,346
2,732

%
59.1
39.5

Operating income

Ordinary income

Million yen
1,201
870

Million yen
1,109
924

%
37.9
20.0

(Note) Comprehensive income: 1Q FY2017: 797 million yen (28.4%)

1Q FY2017
1Q FY2016

Net income per share
Yen
16.08
16.07

%
20.0
22.0

Profit attributable toowners of parent
Million yen
%
597
0.1
596
25.4

1Q FY2016: 621 million yen (20.6%)

Diluted net income per share
Yen
16.07

(Note) In order to appropriately display the net income and diluted income per share, stock attributed to the directors’
remuneration board incentive plan trust has the right to a claim of dividend, and is therefore, not included in treasury stock.

(2) Consolidated Financial Position

1Q FY2017
FY2016

Total assets
Million yen
77,88354,771

Net assets
Million yen
18,897
19,108Reference: Equity: 1Q FY2017: 17,934 million yen

2.

Equity ratio
%
23.0
33.2

Net assets per shareYen
482.79488.88FY2016: 18,160 million yen

Dividends
1Q

FY 2016
FY 2017
FY 2017 (forecast)

2Q
Yen
0.00
0.00

Yen
0.00

Yearly dividends
3Q
Fiscal Year end
Yen
Yen
0.00
27.00

0.00

0.00

37.00

Total
Yen
27.00
37.00

(Note) Revision to the most recently released dividend forecast: No

3.

Consolidated Financial Forecast for the Fiscal Year Ending September 2017
(From October 1, 2016 to September 30, 2017)

Net sales
Operating income
Ordinary income
Million yen% Million yen% Million yen
%
8,389
46.4
2,499
33.0
2,351
22.5
2Q of FY 201718,767
54.9
5,013
31.2
4,673
23.6
Full year(Note) Revision to the most recently released financial forecast: No

Profit attributable toowners of parent
Million yen
%
1,409
22.3
2,762
△5.1

Net income
per share
Yen
37.93
74.35

Notices:
(1)

(2)
(3)

(4)

Changes of important subsidiaries during the period (change in specified subsidiaries in accordance withchanges in the scope of consolidation):No
New subsidiaries: - (Name:), Excluded subsidiaries: - (Name:)
Application of special accounting procedures for the execution of the financial statements:
No
Changes in accounting policy / changes or restatements in the accounting estimates[1] Changes in accounting policies associated with reforms to accounting standards, etc.:
Yes[2] Changes in accounting policies other than [1]:No
[3] Changes in accounting estimates:
No[4] Restatements:
No
Number of shares issued (common stock)[1] Number of shares outstanding at theend of term (including treasury stock)[2] Number of treasury stocks at the end of
term[3] Average number of shares outstanding

1Q FY2017: 37,150,500

FY 2016: 37,150,500

1Q FY2017: 2,500

FY 2016: 2,500

1Q FY2017: 37,148,000

1Q FY2016: 37,142,500(Note) In order to appropriately display the number of treasury stocks at the end of the term and average number ofshares outstanding, stock attributed to the directors’ remuneration board incentive plan trust has the right to a claimof dividend, and is therefore, not included in treasury stock.

*

Implementation status of quarterly review procedures
These quarterly financial statements are not subject to the quarterly review procedures of the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial statements, the quarterly
financial statement review procedures of the Financial Instruments and Exchange Act had not been completed.

*

Explanation of the proper use of earnings forecasts and other important notes
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 other factors. For the assumption on which financial forecasts are based and matters to be considered inusing 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 5 of theattachment.
Results Presentation for Investors and Analysts was given on February 6, 2017. Supporting materials and avideo of the presentation will be made available on the company's website after the event.

Table of contents of attachment
1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Qualitative information on consolidated operating results(2) Qualitative information on the consolidated financial condition(3) Description of forecast information including consolidated earnings forecasts
2. Items concerning summary information (Notes)(1) Changes of important subsidiaries(2) Application of special accounting procedures for drafting of
the financial statements(3) Changes in accounting policy/ changes or restatements in the accounting
estimates(4) Additional information
3. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheet

2
2
5
6
6
6
6
6
6
7

7

(2) Consolidated quarterly statement of income and consolidated quarterly
statement of comprehensive income

9(3) Consolidated statements of cash flows

11(4) Notes for consolidated quarterly financial statements

12(Notes regarding the Going Concern Assumption)(Notes in cases of extreme variation in the amount of shareholders’ equity)

－

1 －

12
12

1.

Qualitative Information on Consolidated Financial Statements for the
Quarter(1)

Qualitative information on consolidated operating results①Consolidated operating results
Regarding the economic environment in Japan during the period under review, corporate earnings, employment, and income
environments are trending toward improvement, supported by the economic and fiscal policy of the government and themonetary easing measures by the Bank of Japan. However, the pace of economic recovery still remains moderate due touncertain situations in the future, with a sharp fluctuation in financial and capital markets influenced by the transition to the
new administration in the United States and the issue of the United Kingdom leaving the EU.
In regard to our core business, the B to C e-commerce market continues to grow, thanks to a favorable external environment
such as broader use of smartphones as well as reforms in logistics. The scope of e-commerce itself is also growing in themarkets for non-tangible items such as services, as seen in the new areas such as B to B and C to C e-commerce. In addition,
the transition to online payments outside of the e-commerce field is steadily proceeding, including services other than productsales, public dues such as utility bills and taxes, and fields which are closely linked to living such as medical care.
Meanwhile, performance has been strong in credit card shopping within the card-present market, that the principal market of
GMO Financial Gate Co., Ltd., which became a consolidated subsidiary in the previous consolidated fiscal year. As the Tokyo
Olympics and Paralympics in 2020 draw closer, we expect a transition to more cashless payments including means other thancredit cards. We expect this to create new business opportunities, expanding the business domain of our group even further.
With regard to overseas business, we established five overseas entities to provide Z.com Payment solutions to Japanese
online businesses with local presence in markets in South East Asia. We have continued to promote funding activities throughthe “GMO Global Payment Fund” to form capital alliances with prospective payment-related businesses; in addition, thefinancial results of local payment processing companies in which we invest our funds have performed steadily. In the previous
consolidated fiscal year, we acquired a substantial stake in Macro Kiosk Berhad, the leading complete end to end mobile
payment, authentication, notification and enterprise mobility solutions enabler based in Malaysia. With a view to incorporating
the huge growth potential of South East Asia, which is the center of global growth, into our Group’s mid-to-long-term businessgrowth, we will continue to introduce new measures while creating a synergistic effect between “Z.com Payment” and “GMO
Global Payment Fund”.
Under such circumstances, the group’s operating results for the consolidated cumulative first quarter of the current
consolidated fiscal year were as follows. The Payment Processing Business steadily grew and the Money Service Business“GMO Payment after delivery” service has continued to perform favorably. Net sales amounted to 4,346,814 thousand yen(increase of 59.1% on a year-on-year basis). Net sales consisted of initial (initial revenue) of 345,545 thousand yen (increaseof 143.0% on a year-on-year basis), stock (monthly revenue) of 874,081 thousand yen (increase of 31.7% on a year-on-yearbasis) and fee (transaction processing revenue) of 1,434,642 thousand yen (increase of 86.0% on a year-on-year basis),spread (merchant acquiring service revenue) of 1,692,544 thousand yen (increase of 46.5% on a year-on-year basis).

Business modelFirst three months of theprevious consolidated
fiscal year
(From October 1, 2015
to December 31, 2015)

First three months of thecurrent consolidated
fiscal year
(From October 1, 2016
to December 31, 2016)

Rate of change

142,188345,545143.0

663,581874,081

31.7(%)

Initial(thousand yen)
(Initial revenue)
Stock(thousand yen)(Monthly revenue)
Fee(thousand yen)
(Transaction processing
revenue)
Spread (thousand yen)
(Merchant acquiring service revenue)

771,471

1,434,642

86.0

1,155,545

1,692,544

46.5

Total（thousand yen）

2,732,786

4,346,814

59.1(Note) Starting from the first quarter of this consolidated accounting period, we changed the layout for sales per business model andseparated "running revenue" into "stock (monthly revenue)" and "fee (transaction processing revenue)"

Looking at operating expenses in terms of cost of sales, despite the advantages of economies of scale we gained from ourrevenue growth, sales cost ratio rose due to strong performance in high sales cost ratio products in "GMO-PG remittance－2 －service", "GMO payment after delivery" service, and payment terminals sales in GMO Financial Gate, Inc. cost of sales
amounted to1,109,296 thousand yen (increase of 80.4% on a year-on-year basis). Selling, general and administrative
expenses came to 2,036,145 thousand yen (increase of 63.3% on a year-on-year basis) due to the increases of MSB related
sales and an increase in personnel expenses. Operating income grew 37.9% on a year-on-year basis to 1,201,372 thousandyen.
With regard to non-operating income and loss, investment loss from the equity method of 104,912,000 yen resulted in ordinary
income of 1,109,323 thousand yen (increase of 20.0% on a year-on-year basis) .
Profit attributable to owners of parent grew to 597,250 thousand yen (increase of 0.1% on a year-on-year basis).
② Results by segment
Performance by reportable segment is explained below. For the income statement of Macro Kiosk Berhad, since it will be included from thesecond quarter of the consolidated accounting period in September 2017, its business results are not reflected in the consolidated income
statement for the first quarter of the current consolidated cumulative period.

Segment

First three months of theprevious consolidated
fiscal year
(From October 1, 2015
to December 31, 2015)

First three months of thecurrent consolidated
fiscal year
(From October 1, 2016
to December 31, 2016)

Rate of change

2,021,235
1,167,028

2,812,430
1,465,987

39.1
25.6

428,588
42,024

1,189,294
178,150

177.5
323.9

283,190
27,589345,089
42,715

21.9
54.8

(227)
(365,721)(485,481)-

2,732,786
870,919

4,346,814
1,201,372

59.1
37.9

Payment Processing Business
Sales (thousand yen)
Operating income(thousand yen)
Money Service Business
Sales (thousand yen)
Operating income(thousand yen)
OthersSales (thousand yen)
Operating income(thousand yen)
Adjustments
Sales (thousand yen)
Operating income(thousand yen)
Total
Sales (thousand yen)
Operating income(thousand yen)(%)

a. Payment Processing BusinessIn the Payments Processing Business online payments grew steadily, including the B to C, B to B, and C to C e-commercemarkets For the consolidated cumulative first quarter, we and the Bank of Yokohama, Ltd. jointly developed a smartphone
payment service (“Hama Pay”) which the bank plans to start offering in March 2017.
In the field of recurring payments, we have continued working to attempt to develop this field to enable the use of credit cards
for paying utility charges, public dues and other monthly services closely connected with everyday life. We provide payment
methods to public institutions, such as the Japan Pension Service, and local governments. For the consolidated cumulative
first quarter, we also concluded an agreement to create and operate a “credit card payment site for national tax” and handle
credit card payments in collaboration with Toyota Finance Corporation, who had been commissioned by the National Tax
Agency chief to receive tax payments on its behalf. in the new “online credit card payments of national tax”, and it is
responsible for creating and operating a These services were launched on January 4, 2017.
Our number of merchants during the current consolidated cumulative first quarter increased by 4,734 to 81,990 compared tothe end of the previous consolidated fiscal year. The number and amount of processed payments steadily increased.
Changes in number of operating stores

Number of operating

End of September

End of September

End of September

End of September

End of December

2013

2014

2015

2016

2016

44,32849,72559,55977,25681,990storesNote: Number of operating stores means the number of IDs assigned to each store to use the service. It shows thenumber of stores (merchants) which have an agreement with the Group, are connected to the system,
and in principle are able to process payments at any time, though the number of operating stores does not include stores
which are using the GMO Payment after delivery service or Online advertising service.

Regarding the card-present market business, payment processing services provided by GMO Financial Gate Co., Ltd., which－

3 －became a consolidated subsidiary in the previous consolidated fiscal year, showed strong performance and contributed toearnings growth in the first quarter of the current consolidated cumulative period.
Sales were 2,812,430 thousand yen (increase of 39.1% on a year-on-year basis) and income for the segment (operating
income) was 1,465,987 thousand yen (increase of 25.6% on year-on-year basis).

b. Money service business
For Money Service Business, Our subsidiary GMO Payment Service Inc. provides a “GMO Payment after delivery” service
that allows the user to pay after receiving the goods. The “GMO Payment after delivery” service has been adopted by anincreasing number of merchants as a payment service that meets a high level of consumer needs and has continued toperform favorably since its introduction in May 2013. We also provide “Money service business (MSB)” such as “early
payment services”, Transaction Lending service and “GMO-PG Remittance Service”.
During the consolidated cumulative first quarter, we started offering our deferred payment service “GMO Payment after
delivery” for Zozotown in November 2016. Zozotown is the biggest online fashion shopping site in Japan and is operated byStart Today Co., Ltd.
Sales were 1,189,294 thousand yen (increase of 177.5% on a year-on-year basis) and income for the segment (operating
income) was 178,150 thousand yen (increase of 323.9% on year-on-year basis).

c.Others
Other payment-related services we provide include Online Advertising Service, SSL server certifications, and shipping
services.
For the consolidated cumulative first quarter, “GMO-PG Online Advertising Service” showed solid growth.
Sales were 345,089 thousand yen (increase of 21.9% on a year-on-year basis) and income for the segment (operating
income) was 42,715 thousand yen (increase of 54.8% on year-on-year basis).

－4 －(2) Qualitative information regarding the consolidated financial condition[1]

AssetsThe balance of total assets at the end of the first quarter of the current consolidated fiscal year was 77,883,427
thousand yen, up 23,111,883 thousand yen as compared with the end of the previous consolidated fiscal year.
This increase was mainly due to an increase of cash and deposits (+9,025,311thousand yen), an increase ofadvance payments-trade (+2,406,617 thousand yen) and an increase of accounts receivable-other(+9,784,660
thousand yen). The main factors for the increase in accounts receivable-other is the increase of transactions for
GMO payment after delivery service.

[2]

Liabilities
The balance of liabilities at the end of the first quarter of the current consolidated fiscal year was 58,986,298
thousand yen, up 23,322,923 thousand yen as compared with the end of the previous consolidated fiscal year.
This increase was mainly caused by an increase in accounts payable-other of 10,420,819 thousand yen anddeposits received of 9,192,925 thousand yen, which was an effect of the increase in deposits received frommerchants in accordance with the merchant acquiring service agreement.

[3]

Net assets
The balance of net assets at the end of the first quarter of the current consolidated fiscal year was 18,897,129
thousand yen, down 211,040 thousand yen as compared with the end of the previous consolidated fiscal year.
The increase was mainly caused by increase in profit attributable to owners of parent of 597,250 thousand yen
and an increase of valuation difference on available-for-sale securities of 212,180,thousand yen, with a decreaseof 1,002,996 thousand yen as a result of a distribution of surplus.

[4]

Cash FlowsAt the end of the first quarter of the current consolidated fiscal year, cash and cash equivalents (“Funds”) were34,203,619 thousand yen, up 9,016,083 thousand yen as compared with the balance at the beginning of theperiod. Cash flows at the end of the cumulative first quarter of the current consolidated fiscal year were as
follows.
Net cash provided by (used in) operating activities
Cash provided by operating activities during the cumulative first quarter of the current consolidated fiscal year
amounted to 6,685,291 thousand yen (gain of 5,849,734 thousand yen from the same period the previous fiscal
year).
This was mainly due to increases in accounts receivable-trade of 1,218,226 thousand yen, in advancepayments-trade of 2,406,617 thousand yen, accounts receivable-other of 9,784,597 thousand yen, in accounts
payable-other of 10,396,142 thousand yen, and an increase in deposits of 9,094,418 thousand yen.
Net cash provided by (used in) investing activities
Cash used in investment activities totaled 656,758 thousand yen (1,647,296 thousand yen was used in the same
period of the previous fiscal year.) This was mainly due to the investments in other securities of subsidiaries andaffiliates of 369,329 thousand yen, and purchase of intangible fixed assets of 254,614 thousand yen.
Net cash provided by (used in) financing activities
Cash used in financing activities totaled 2,983,283 thousand yen (598,210 thousand yen was used in the same
period of the previous fiscal year). This was primarily attributable to the payment of 990,095 thousand yen in
dividends and an increase of 4,000,000 thousand yen in proceeds from short-term borrowings.

－

5 －

(3)

Description of forecast information including consolidated earnings forecasts(Forecasts for the next period)
In regard to our core business, the B to C e-commerce market continues to grow, thanks to a favorable external
environment such as broader use of smartphones as well as reforms in logistics. E-commerce is also becoming moreprevalent for services, as seen in areas such as B to B and C to C e-commerce.
Additionally, the transition to online payments outside the e-commerce field is making steady progress in services fields
other than product sales, payments of public dues such as utility bills and taxes, and fields which are closely linked toliving such as medical care.
Meanwhile, performance has been strong in credit card shopping within the card-present market, the principal market of
GMO Financial Gate Co., Ltd. which became a consolidated subsidiary in the previous consolidated fiscal year. As theTokyo Olympics and Paralympics in 2020 draw closer, we expect a transition to more cashless payments includingmeans other than credit cards. We expect this to create new business opportunities, expanding the business domain of
our group even further.
For the term ending September 2017, we believe this will be achieved by accelerating the pace of new merchantacquisitions, strengthening our development of large-scale merchants through the provision of higher quality services,
and increasing revenue per merchant through providing services such as “Online Advertising Service” and “Money
service business (MSB)” that increase added value associated with the merchants' use of the Group. Regarding Macro
Kiosk Berhad, since its fiscal year end is on December 31, we plan to consolidate the financial statements based on theprovisional settlement of accounts which is three months before the accounting closing date of our company. For thisreason the income statement of Macro Kiosk Berhad will be consolidated from the second quarter of the consolidated
accounting period ending in September 2017, and we plan to incorporate the income and expenses for the nine months
from October 1, 2016, to June 30, 2017. With regard to GMO Financial Gate Co., Ltd., which became a consolidated
subsidiary at the end of the previous consolidated fiscal year, it has already achieved stable positive business income,and we expect it to contribute to our company's management target of 25% operating income growth in the fiscal period
ended in September 2017.
In regard to costs, we forecast an increases in sales cost ratio due to strong sales performance for “GMO-PG Remittance
Service”, ”GMO Payment Later” and payment terminals for GMO Financial Gate, Inc., all of which have high sales-cost
ratio. We also forecast increased cost for expansion of domestic and overseas subsidiaries, and other new businesses.
We expect 31.2% growth in operating income and 26.7% operating income ratio.

2. Items concerning summary information (Notes)(1)

Changes of important subsidiaries(2)

Application of special accounting procedures for the drafting of financial
statements

N/A

N/A

(3)

Changes in accounting policy / changes or restatements in the accounting
estimates
N/A(4)

Additional information"Guidelines for Applying Recoverability of Deferred Tax Assets" (Business Accounting Principles Guideline No. 26
issued on March 28, 2016)－6 －3. Consolidated quarterly financial statements(1)

Consolidated quarterly balance sheet(Unit: Thousand yen)

Summary of balance sheet atthe end of the previous
consolidated fiscal year
(September 30, 2016)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Lease receivables
Merchandise
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Tangible assets
Buildings, net
Tools, furniture and fixtures
Other
Total tangible assets
Intangible assets
Goodwill
Right of trademark
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Investments in other securities ofsubsidiaries and affiliates
Long-term loans receivable from directors
and employees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets－

7 －End of the first quarterof the current consolidated
fiscal year
(December 31, 2016)25,231,522
3,924,904
7,291,439
38,377972
6,388,955
118,723
300,169
1,742,612
839,372(327,887)
45,549,162

34,256,834
5,143,984
7,696,856
49,905729
8,795,573
149,997
196,825
11,527,272
855,007(605,030)
68,067,956

83,143
122,782
146,354352,280

81,816
121,093
132,403335,3122,271,697
212
1,079,334
346,9713,698,215

2,238,081
191
1,245,751
371,6073,855,631

2,251,124
2,203,234
309,174

2,442,604
2,418,729
303,808

962

840

31,46831,5988,285
231,035
87,62980,437(31,468)
5,171,884
9,222,381
54,771,544

10,518286,545
81,58379,896(31,598)
5,624,526
9,815,471
77,883,427

(Unit: Thousand yen)
Summary of balance sheet atthe end of the previous
consolidated fiscal year
(September 30, 2016)
Liabilities
Current liabilities
Accounts payable-trade
Short-term borrowings
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for others
Other
Total current liabilities
Noncurrent liabilities
Provision for directors’ remuneration Board
Incentive Plan Trust
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total Accumulated other comprehensive
incomeSubscription rights to shares
Total net assets
Total liabilities and net assets－

8 －End of the first quarterof the current consolidated
fiscal year
(December 31, 2016)

2,726,492
50,6172,784,175
901,767
78,482447,442
27,634,302
478,808
125,000
103,660
35,330,748

3,203,818
4,050,617
13,204,995
331,043
152,610
461,995
36,827,228
331,899－
113,671
58,677,878

170,000

170,000

162,626
332,626
35,663,374

138,419
308,419
58,986,298

4,712,900
4,964,712
8,893,549(265,236)
18,305,926

4,712,900
4,955,835
8,487,748(265,236)
17,891,248(48,004)

164,175(97,162)(145,167)(120,591)
43,583

1,066
946,344
19,108,169

1,037
961,259
18,897,129

(2) Consolidated quarterly statements of income and consolidated quarterly
statement of comprehensive income(Consolidated quarterly statements of income)(Consolidated cumulative first quarter)(Unit: Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity income of affiliates
Earnings on reversal of dividends payable
Commissions received
Exchange earnings
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Loss on investment in partnership
Other
Total non-operating expenses
Ordinary income
extraordinary expense
loss on retirement of noncurrent assets
Total extraordinary expense
Income before income taxes
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent－

First three months of theprevious consolidated
fiscal year
(From October 1, 2015
to December 31, 2015)
2,732,786
615,078
2,117,708
1,246,788
870,919First three months of thecurrent consolidated
fiscal year
(From October 1, 2016
to December 31, 2016)
4,346,814
1,109,296
3,237,517
2,036,145
1,201,372

1,694
6,327
25,075933
6,770
11,047
7,704
59,553

609
9,425
－
1,159
5,173
546
5,153
22,068

1,039
－
591
4,344
5,976
924,496

5,716
104,912
3,061
426
114,117
1,109,323－－
924,496
256,584
71,051
327,635
596,861－596,86145
45
1,109,278
396,022
104,425
500,448
608,830
11,579597,250

9 －(Consolidated quarterly statements of comprehensive income)(Consolidated cumulative first quarter)(Unit: Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Amount corresponding to the equity holdings ofthe equity-method affiliates
Total other comprehensive income
Comprehensive income
Details
Parent company shareholders’ comprehensive
incomeNon-controlling interests’ comprehensive income－

First three months of theprevious consolidated
fiscal year
(From October 1, 2015
to December 31, 2015)
596,861First three months of thecurrent consolidated
fiscal year
(From October 1, 2016
to December 31, 2016)
608,830

13,789206,813

10,751－

16,778(34,842)

24,540621,401

188,749
797,580

621,401

809,159－(11,579)

10 －

(3)

Consolidated statements of cash flows(Unit: Thousand yen)First three months of theprevious consolidated
fiscal year
(From October 1, 2015
to December 31, 2015)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase and decrease in provision( ) =decrease
Interest and dividends income
Interest expenses
Foreign exchange gains and losses( ) =gain
Equity in gains and losses of affiliates( ) =gain
Gains and losses on investment in partnership ( ) =gain
Loss on retirement of noncurrent assets

First three months of thecurrent consolidated
fiscal year
(From October 1, 2016
to December 31, 2016)

924,496
81,063650(126,721)(8,022)
1,039(11,045)(25,075)591－

1,109,278
121,786
33,560
5,364(10,035)
5,716(4,767)104,9123,061
45

Increase and decrease in accounts receivable ( ) =increase(521,355)(1,218,226)

Increase and decrease in lease receivables ( ) =increase
Increase and decrease in inventories ( ) =increase
Increase and decrease in advance payments-trade( ) =increase
Increase and decrease in accounts receivable-other( ) =increase
Increase and decrease in purchase debts ( ) =decrease
Increase and decrease in accounts payable-other( ) =decrease
Increase and decrease in deposits received ( ) =decrease
Other
SubtotalInterest and dividends income received
Interest expenses paid
Payment on deposit money
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plants and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales or redemption of investment securities
Purchase of stocks of subsidiaries and affiliates
Distributions from an investment partnership
Payment on leasehold deposits
OthersNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of common stock
Cash dividends paid
Proceeds from stock issuance to minority shareholders
Other
Net cash provided by (used in) financing activities
Translation differences of cash and cash equivalents
Increase and decrease in cash and cash equivalents( ) =decrease(1,146,745)(118)(405,416)(11,135)(69,785)(2,406,617)(433,574)(9,784,597)

230,512477,027

762,486

10,396,142

8,016,536(732,776)
6,942,157
2,056(1,039)(320,000)(773,439)
5,849,734

9,094,418
33,3907,543,908
1,087(5,582)－(854,121)
6,685,291(595)(143,167)(1,376,024)－(124,950)
8,975
(980)
(10,554)(1,647,296)(5,207)(254,614)－
30,947(369,329)
10,072(67,200)(1,425)(656,758)

－
－
2,749
(585,514)(4,344)(11,101)(598,210)
10,0914,000,000(4,566)250(990,095)(5,819)(16,484)
2,983,283
4,266

3,614,320

9,016,083

Balance of cash and cash equivalents at the beginning of the period

30,113,605
33,727,925

25,187,536
34,203,619

Cash and cash equivalents at the end of period－

11 －(4) Notes for the consolidated quarterly financial statement(Notes regarding the Going Concern Assumption)
N/A(Notes in cases of extreme variation in the amount of shareholders’ equity)
N/A

－

12 －