Summary of Consolidated Financial Statements for the Third Quarter FY2021 (IFRS)
August 10, 2021
Name of listed company:

GMO Payment Gateway, Inc.

Exchange: Tokyo Stock Exchange

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:

Ryu Muramatsu

Director, Executive Vice President

Scheduled submission date ofquarterly reportAugust 11, 2021

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related
to financial results

Yes

URL: https://www.gmo-pg.com/en/corp/
Tel: +81-3-3464-0182

Scheduled date of commencementfor dividend payment-(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the Third Quarter FY2021(From October 1, 2020 to June 30, 2021)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue
Mil. Yen% Mil. Yen

Profit before
income taxes% Mil. Yen

Basic earnings per
share
Q3 FY2021
Q3 FY2020

Profit attributableTotal
to owners of comprehensive
parentincomeProfit% Mil. Yen

30,535 26.6 10,222 31.4 10,526 25.1
24,118 19.9 7,778 12.2 8,413 24.7

Q3 FY2021
Q3 FY2020(% represent year-on-year percentage change)%

Mil. Yen

7,070 21.7
5,810 37.9

6,937
5,750

% Mil. Yen

20.6
35.2

7,982
6,157

%

29.6
71.6

Diluted earnings per
share

Yen

Yen

93.27
78.16

91.58
76.28

(2) Consolidated Financial Position
Total assets
Q3 FY2021
FY20202.

Ratio of total equity
attributable to owners ofparent to total assets

Total equity attributableto owners of parent

Total equity

Mil. Yen

Mil. Yen

Mil. Yen%

213,290
192,02255,78333,45353,86531,734

25.3
16.5

Dividends
Annual dividend
End of Q1

3.

End of Q3

Year-end

Total

Yen/share

Yen/share

Yen/share

Yen/share

Yen/share

0.00
0.00

0.00
0.00

0.00
0.00

52.00

52.00

54.00

54.00

FY2020
FY2021
FY2021 (forecast)(Note)End of Q2

Revision to the most recently released dividend forecast:

No

Consolidated Financial Forecast for the Fiscal Year Ending September 2021
(From October 1, 2020 to September 30, 2021)(% represents year-on-year change)

Profit before
Operating profit
income taxes

Revenue
Mil. Yen

Full year(Note )%

39,792 20.4

Mil. Yen%

12,985 25.0

Mil. Yen

Profit attributable Basic earnings
to owners of parent per share

Profit%Mil. Yen%

Mil. Yen%

Yen

12,426 13.1

8,042

4.5

7,930

4.0

107.78

Revision of the most recently released financial forecast:

―1―

No

※ Notices:(1) Changes of important subsidiaries during the period (change of specific subsidiaries that leads to a change in thescope of consolidation): No
Number of new subsidiaries: - (Name:); Number of excluded subsidiaries: - (Name:)(2)

Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by IFRS.: No[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No(3)

Number of shares issued (common stock)[1] Number of shares issued at the end of the term(including treasury stock)[2] Number of treasury shares at the end of the term
[3] Average number of shares during the term

Q3 FY2021: 76,557,545

FY 2020:

74,301,000

Q3 FY2021:714,950
Q3 FY2021: 74,382,106

FY 2020: 714,781
Q3 FY2020: 73,577,545(Note 1) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan (BIP) trust and J-ESOP (709,705 shares for FY2020; 709,705 shares for Q3
FY2021.)※ These quarterly financial statements are not subject to the quarterly review procedures by certified public accountants
or auditors.
※ Notes regarding the appropriate use of financial forecast and other important notes
1. 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 otherfactors. For the assumption on which financial forecasts are based and matters to be considered in using 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 9 of the attachment.
2 Results Presentation for Investors and Analysts to be held on August 11, 2021. Supporting materials and a video ofthe presentation will be made available on the company's website after the event.

―2―

Table of contents of attachments
１．Qualitative Information on Consolidated Financial Statements for the Quarter……………..………...................

4（１）Consolidated operating results…………………………………………………………………………………….

4（２）Status of consolidated financial position……………………………………………………………………….…

8（３）Review of consolidated earnings forecasts and other forecasts…………………………………………...…..

9

2．Condensed Consolidated Financial Statements and Major Notes..………………………………………………..... 10（１）Condensed consolidated balance sheet …………………………………………………………………………

10（２）Condensed consolidated statement of income and statement of comprehensive income …………………

12（３）Condensed consolidated statement of changes in equity ……………………………………………...……… 14（４）Condensed consolidated statement of cash flows ……………………………………………………...………

16（５）Notes regarding the going concern assumptions………………………………………………………………..

18（６）Notes regarding the consolidated financial statement…………………………………………………………..

18➀ Cash and cash equivalents…………………………………………………………………………………….

18② Trade and other receivables…………………………………………………………………………………… 18③ Deposits to subsidiaries and affiliates………………………………………………………………………...

―3―

18

1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Consolidated operating results
Forward-looking statements in the document are based on the judgement of the Group at the end of the under review.
①

Consolidated operating results
The Group announces its earnings results for the cumulative third quarter of the consolidated fiscal year 2021
(October 1, 2020 to June 30, 2021) as follows.
(Unit: Thousand yen)
Q3 FY2020(From October 1, 2019
to June 30, 2020

Q3 FY2021(From October 1, 2020
to June 30, 2021

Rate of change (%)

Revenue

24,118,665

30,535,072

26.6

Operating profit

7,778,478

10,222,260

31.4

Profit before income taxes

8,413,985

10,526,081

25.1

5,750,915

6,937,696

20.6

Profit attributable to ownersof parent
a. Revenue

The Group’s revenue reached to ¥30,535 mil., up by 26.6% year-on-year (YoY). Overall trends were favorablefrom the increased adoption of cashless payments and the limited adverse impact from COVID-19. The Payment
Processing Business revenue grew, led by steady growth of the E-Commerce (EC) market for online payments
and recurring payments coupled with the expansion of the Group’s services in the offline domain. The Money
Service Business (MSB) revenue grew, not only from the continued growth of GMO Payment After Delivery
transactions, a type of deferred payment service, but also from the growth of Early Payment services. Payment
Processing Business revenue was ¥22,454 mil. (up 33.6% YoY), Money Service Business revenue was ¥7,558
mil. (up 10.1% YoY) and Payment Enhancement Business revenue was ¥531 mil. (up 18.6% YoY). For details,
please refer to page 5 of “②Results by segment” found under “(1) Consolidated operating results” of “1.
Qualitative Information on Consolidated Financial Statements for the Quarter”.
Revenue breakdown by business model is as follows.
(Unit: Thousand Yen)
Business model

Q3 FY2020(From October 1, 2019
to June 30, 2020

Q3 FY2021(From October 1, 2020
to June 30, 2021

Rate of change(%)

Initial(Initial revenue)

1,874,154

3,560,338

90.0

Stock
(Fixed revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring service
revenue)

4,231,674

4,850,707

14.6

6,403,742

7,942,720

24.0

11,609,093

14,181,305

22.2

24,118,665

30,535,072

26.6

Total

―4―

b. Operating profit
Operating profit reached ¥10,222 mil., up by 31.4% YoY, making steady progress towards achieving the full year
earnings forecast for the Fiscal Year ending September 2021. This is due to revenue growth and that credit costs
were controlled at a certain level and other factors.
By segment, Payment Processing Business segment profit (operating profit) was ¥11,046 mil., up 27.7% YoY;
Money Service Business segment profit (operating profit) stood at ¥1,689 mil., up 26.3% YoY; Payment
Enhancement Business segment profit (operating operating) of ¥86 mil., up 8.8% YoY.
For details, please refer to “② Results by segment” of the “(1) Consolidated operating results” of “1. Qualitative
Information on Consolidated Financial Statements for the Quarter”.
.
c. Profit before income taxes
Pre-tax profit reached ¥10,526 mil., up 25.1% YoY. The reason the pre-tax profit growth rate of 25.1% YoY islower than the operating profit growth rate of 31.4% YoY, is mainly due to equity method investment gains of¥528 mil. recorded in the same period of the previous fiscal year.
② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment

Q3 FY2020(From October 1, 2019
to June 30, 2020

Q3 FY2021(From October 1, 2020
to June 30, 2021

Rate of change(%)

Payment Processing Business
Revenue
Operating profit (or △=loss)

16,809,246
8,647,828

22,454,331
11,046,570

33.6
27.7

Money Service Business
Revenue
Operating profit (or △=loss)

6,868,145
1,337,233

7,558,425
1,689,120

10.1
26.3

Payment Enhancement Business
Revenue
Operating profit (or △=loss)

448,569
79,967531,926
86,98218.6
8.8

Adjustments
Revenue
Operating profit (△=loss)△7,296△2,286,550△9,610△2,600,412

－
－

Total
Revenue
Operating profit (or △=loss)

24,118,665
7,778,478

30,535,072
10,222,260

26.6
31.4

―5―

a. Payment Processing Business
The main areas in the Payment Processing Business are online and recurring payment processing services,offline payment processing service and, expansion of support services to financial institutions and financial service
providers. In the online payment and recurring payment domain, we focused our efforts to expand our services inorder to acquire large and small-to-medium merchants across all sectors and to non-EC operators, given the
backdrop of the steadily expanding E-commerce (EC) market.
The impact from the COVID-19 contagion was limited during the third quarter under review, much like the previous
quarter. In the online payment and recurring payment domain, micropayment transactions increased from therising adoption of cashless payment and expanding EC market as well as increased transactions in digital content,
public utilities and taxes. This led to this segment’s transaction value growing by 37.2% YoY and transaction
volume growing by 39.3% YoY. Additionally, the new projects, including SMS Choice of Payment, a service todigitalize payment of electric power bills promoted by TEPCO Energy Partner, Inc. which commenced during thefirst quarter also contributed to segment revenues.
Despite the ongoing environment where offline consumption remains susceptible to the adverse effects of COVID19, offline domain contributed to this segment’s transaction value and volume as well as to initial revenues fromstrong trends of other payment terminal sales thanks to the cashless payment promotions by local/national
government, including growing sales of stera payment terminal, the next generation payment platform. Additionally,orders in the target markets of Unattended Market, automated payment machines and ticket machines trended
favorably.
As a result, segment revenues reached ¥22,454 mil., up 33.6% YoY and segment profit (operating profit) was¥11,046 mil. up 27.7% YoY.
b. Money Service Business
Money Service Business (MSB) consists of Early Payment Service to help merchants improve their cash flow byreceiving sales proceeds earlier according to the merchant’s cash cycle needs; Transaction Lending Service tolend growth capital to merchants based on their payment and other related data; Lending service to overseas
operators; Remittance Service; and GMO Payment After Delivery offered by a consolidated subsidiary GMO
Payment Service, Inc.
In this third quarter under review, this segment’s revenues growth rates slowed due to taking a conservative
stance on extending credit in consideration of COVID-19 effects despite the steady growth in transactions for
GMO Payment After Delivery service as well as the hard comps against the same period of last year that saw
strong nesting demand. Even so, segment profit trended favorably by maintaining the credit related costs at a
certain level. Early Payment service revenues trended strongly on the back of growth in Payment Processing
Business segment. Lending service to overseas operators continues to make progress in securing new potential
customers that can generate stable revenues in the future. In the area of finance related service such as
inter-corporate transaction, progress was made in the service expansion and collaboration with financial
institutions.
As a result, segment revenue reached ¥7,558 mil., up 10.1% YoY and segment profit (operating profit) reached¥1,689 mil., up 26.3% YoY.
GMO Payment Gateway, Inc. completed the conversion into common stock on June 18, 2021 (which is two years
earlier than the initial plan) for the Zero Coupon Convertible Bonds due 2023 that was issued on June 19, 2018
for the purposes of funding for lending and working capital needs related to the MSB segment, as therequirements of the 130% call option clause set forth in the terms and conditions was fulfilled as of April 21, 2021.
Additionally, GMO-PG has issued Zero Coupon Convertible Bonds due 2026 on June 22, 2021, to the total facevalue amount of ¥20.0 billion. The purpose is to secure additional low-cost funds to achieve sustainable growthin the MSB segment mainly to expand the overseas Lending, Transaction Lending, Early payment services thatare likely to result in increasing working capital needs and funds available for lending, as well as for execution of
M&A strategies in payment and FinTech domains and/or investment funds (including investments made throughproprietary Funds).

―6―

c. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service which provides analytics andadvertisement management service based on merchants’ sales trends to support their growth, and “Medical
Kakumei byGMO” service, a reservation management system to enable operational efficiency at the reception
counters offered exclusively to medical institutions by our consolidated subsidiary GMO Medical Reservations
Technology Co. Ltd.
GMO Medical Reservations Technology Co. Ltd. offers a smartphone-based app to make reservations, fill in
medical questionnaires and complete the reception and payment, as well as manage multiple patientregistration cards for several medical institutions that adopt this service on a smartphone. As in the previous
quarter, the third quarter (cumulative) also continued to see heightened demand for this service due to COVID19, contributing to this segment’s revenue and profit.
As a result of the above, segment revenue was ¥531 mil., up 18.6% YoY and segment profit (operating profit)
was ¥86 mil. up 8.8% YoY.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment

Major service

Major companies of the service

Payment processing service
Payment
Processing
Business(Online billing and recurring billing)
Payment processing service(Offline)
GMO Payment After Delivery

Remittance service
Money Service
Business

Transaction lending
Overseas Lending

Online Advertising

GMO Financial Gate, Inc. (consolidated subsidiary)
GMO Payment Service, Inc. (consolidated
subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Enhancement
Business

GMO Epsilon, Inc. (consolidated subsidiary)

GMO Payment Gateway, Inc.

Early Payment service
Payment

GMO Payment Gateway, Inc.

GMO Medical Reservations Technology Co., Ltd.
Medical Kakumei byGMO―7―(consolidated subsidiary)(2) Status of consolidated financial position①

Assets, liabilities and equity

a. Assets
Total assets at the end of the consolidated third quarter under review increased by ¥21,268 mil. from the end of
the previous fiscal year end to reach ¥213,290 mil. This is mainly due to an increase in cash and cash equivalentsof ¥9,877 mil. and advances paid of ¥12,261 mil.
The Group has ¥22,930 mil. in deposits to subsidiaries and affiliated companies included in the balance of cash
and cash equivalents at the end of the consolidated third quarter under review, as stated in ➀ Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥2,000 mil.
of deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, thetotal balance of the deposits to subsidiaries and affiliated companies stands at ¥24,930 mil. These deposits are
GMO Internet Inc.’s group-wide cash on hand that is deposited to the cash management system (CMS)
implemented and managed by GMO Internet Inc. This allows the Group to withdraw necessary funds without theneed to wait until the preset CMS repayment date, by registering a request after taking into account the numberof days required for processing the application.
b. Liabilities
Balance of liabilities at the end of the consolidated third quarter under review stood at ¥157,507 mil., a decreaseof ¥1,062 mil. from the end of the previous consolidated fiscal year, mainly due to an increase in corporate bondsof ¥2,757 mil., which was partially offset by the decrease in deposits received of ¥3,744 mil.
c. Equity
Equity balance at the end of the consolidated third quarter under review was ¥55,783 mil., an increase of ¥22,330
mil. from the end of the previous consolidated fiscal year. This was mainly due to the decline in retained earningsof ¥3,826 mil.from dividend payouts, which was partially offset by recording the quarterly net profit of ¥7,070 mil.,issuance of the new Zero-Coupon Convertible Bond of ¥1,006 mil. and the conversion of Zero-Coupon
Convertible Bond of ¥17,040 mil.
②

Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated third quarter under review increased by¥9,877 mil. versus the balance at the start of the term, to reach ¥105,708 mil. The state of cash flows over thethird quarter under review is discussed below.

a. Cash flow from operating activities
Net funds used by operating activities during the consolidated third quarter under review amounted to ¥9,050
mil., which compares to ¥43,889 mil. in net funds provided in the same period of the previous year. This resulted
from cash inflows from (i) profit before tax of ¥10,526 mil., which was partially offset by cash outflows from (i) an
increase in advances paid of ¥12,261 mil., (ii) decrease in deposits received of ¥3,750 mil. and (iii) corporate andincome tax payment of ¥4,631 mil.
b. Cash flow from investing activities
Net funds provided by investing activities during the consolidated third quarter under review totaled ¥2,696 mil.,which compares to net funds used of ¥3,827 mil. in the same period of the previous year. This is due to cash
outflows from (i) acquisition of intangible assets of ¥1,198 mil., (ii) payment into deposits to subsidiaries andaffiliated companies of ¥2,000 mil. which was offset by cash inflows from (i) proceeds from withdrawals from
deposits to subsidiaries and affiliated companies of ¥5,000 mil. and (ii) proceeds from sales of other financial
assets ¥700 mil.

―8―

c. Cash flow from financing activities
Net funds provided by financing activities over the consolidated third quarter under review was ¥16,155 mil., which
compares to net funds provided of ¥28,131 mil. in the same period of the previous year. This is due to cash
outflows from the (i) repayment of long-term borrowings of ¥602 mil., (ii) dividend payouts of ¥3,825 mil., which
was offset by cash inflows from issuance of corporate bond of ¥21,057 mil.

(3) Review of consolidated earnings forecasts and other forecasts
The Group’s core business is positioned within the E-commerce (EC) market in Japan, and Japan’s B2C EC market
for merchandize continues to grow very rapidly, helped by favorable externalities such as increased penetration ofsmartphones and logistic/distribution industry reforms. At the same time, the scope of the EC market itself isbroadening driven by the online migration of B2B and C2C transactions. Furthermore, online migration of payments
for non-merchandise services, public payments such as utilities, taxes and dues, as well as payments related to ourdaily life such as medical expenses is also progressing solidly. GMO Financial Gate, Inc., a consolidated subsidiary
which addresses the offline market, is contributing to expanding the scope of business as well as facing new
business opportunities in the offline market driven by the increased penetration of various cashless methods of
payments including credits cards.
For the Fiscal Year ending September 2021, despite the possibility of being affected by the slump in private
consumption from the resurgence of COVID-19 contagion, the adverse impact from the COVID-19 is thought to beminimal as of this writing. This is due to the continuing trends in cashless payments, online migration of payments, inaddition to our business resilience against macro-economic fluctuations due to the diverse base of merchant acrossvarious industries to which the services are provided. Revenue expansion is expected in all reportable segmentsfrom the continuing efforts to acquire large and high-growth merchants and financial institutions, win orders for large
projects, expansion of DX platform services and, the early monetization of new services such as the next generation
payment platform stera.
The earnings forecast for Fiscal Year ending September 2021 is revenues of ¥39,792 mil. (up 20.4% YoY), operating
profit of ¥12,985 mil. (up 25.0% YoY), pre-tax profit of ¥12,426 mil. (up 13.1% YoY), net profit of ¥8,042 mil. (up 4.5%
YoY) and profit attributable to owners of parent of ¥7,930 mil. (up 4.0% YoY).

―9―

2. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet

Notes

End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2021)

AssetsCurrent assets
Cash and cash equivalents①

95,830,807

105,708,743

Operating and other receivables②

10,782,296

9,397,816

Advances paid

31,039,748

43,301,021

Accrued revenue

23,585,142

24,880,292

Inventories

1,440,999

1,108,564

5,000,000

2,000,000

Other financial assets

1,163,608

464,696

Other current assets

537,329439,284

169,379,933

187,300,419

Property, plant and equipment

3,714,793

4,049,911

Goodwill and other intangible assets
Investments accounted for using theequity method
Operating and other payables

4,854,253

5,462,897

3,740,933

4,634,347

1,975,100

3,775,100

Other financial assets

6,711,766

6,674,845

Deferred Tax Assets

1,530,494

1,259,760

Deposits to subsidiaries and affiliates③

Total current assets
Non-current assets②

Other non-current assets
Total non-current assets
Total assets―10―

115,346

133,422

22,642,689

25,990,284

192,022,622

213,290,703

End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2021)

Operating and other payables

4,296,647

4,486,905

Accrued expenses

19,385,695

20,690,423

Deposits received

87,059,213

83,314,334

Borrowings

18,800,400

18,358,520

Other financial liabilities

400,217621,610

Income taxes payable, etc.

2,491,098

1,512,510

Notes
Liabilities and equity
Liabilities
Current liabilities

Provisions

352,812

328,465

Other current liabilities

3,383,652

3,187,606

Total current liabilities

136,169,737

132,500,375

16,814,650

19,572,433

Non-current liabilities
Corporate bonds
Borrowings

131,400

21,8503,013,338

3,010,570

Provision

260,843

261,094

Deferred tax liabilities

54,17043,060

Other financial liabilities

Other non-current liabilities

2,124,966

2,097,664

Total non-current liabilities

22,399,369

25,006,674

158,569,106

157,507,050

4,712,900

13,323,135

Capital surplus

5,675,561

15,176,704

Retained earnings

20,725,465

24,265,489

Treasury stock△1,149,341△1,151,796

1,769,560

2,251,776

31,734,145

53,865,309

1,719,369

1,918,343

Total equity

33,453,515

55,783,653

Total liabilities and equity

192,022,622

213,290,703

Total liabilities
EquityCapital stock

Other items of equity
Total equity attributable toowners of parent
Non-controlling interests―11―(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q3 FY2020(From October 1, 2019
to June 30, 2020)

Continuing Operations
Revenue
Cost of revenue(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020
to June 30, 2021)

24,118,665△6,711,606

30,535,072△9,586,807

17,407,058

20,948,264

114,692

165,685△9,610,624△10,862,189△132,647△29,499

Operating profit

7,778,478

10,222,260

Financial income

289,491

377,986

Financial expense△182,779△146,510

528,794

72,344

8,413,985

10,526,081△2,424,742△3,455,765

5,989,243

7,070,315△179,198－

5,810,044

7,070,315

5,750,915

6,937,696

59,129132,618

5,810,044

7,070,315

Continuing operations

80.48

93.27

Discontinuing operations

△2.32

－

78.16

93.27

Continuing operations

78.54

91.58

Discontinuing operations

△2.25

－

76.28

91.58

Gross profit
Other income
Selling, general and administrative
expenses
Other expense

Equity method investment gain/loss (△=loss)
Profit before income taxes
Corporate and income tax expenses
Profit from continuing operations
Discontinued Operations
Profit/Loss from discontinued operations (△=loss)
Quarterly profit

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (yen) (△=loss)

Total
Diluted earnings per share (yen) (△=loss)

Total

―12―

Condensed consolidated statement of comprehensive income

Notes

Q3 FY2020(From October 1, 2019
to June 30, 2020)

ProfitOther comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Shares of other comprehensive incomeof equity method affiliates
Total of Items that will not be reclassified
to profit or loss
Items that will be reclassified to profit orloss
Exchange differences on translation offoreign operations
Shares of other comprehensive incomeof equity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020
to June 30, 2021)

5,810,044

7,070,315

298,935

46,904

256,255

537,686

555,190584,591△222,658

247,787

15,00579,571△207,653

327,358

347,537

911,949

6,157,582

7,982,265

6,097,274

7,848,763

60,307

133,5026,157,582

7,982,265

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―13―

(3) Condensed consolidated statement of changes in equity
Third quarter of the previous consolidated fiscal year (From October 1, 2019 to June 30, 2020)(Unit: Thousand yen)
Notes

Balance as of October 1,
2019
Cumulative effects ofaccounting changes
Restated Balance
ProfitOther comprehensive
incomeComprehensive income
Disposal of treasury
sharesDividends
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Change from sales of
consolidated subsidiary
Other increase/decrease
Total transactions withownersBalance as of June 30,
2020

Capitalstock

Capitalsurplus4,712,900

5,847,480 15,884,444 △1,181,846－
4,712,900－

Retained Treasury
earnings
stock△97,243－5,847,480 15,787,200 △1,181,846

Otheritems ofequityTotal equity
Nonattributable
controllingto owners
interestsof parent

1,231,655 26,494,633－△97,243

1,231,655 26,397,389

Total
Equity1,044,664 27,539,297△38,971△136,214

1,005,692 27,403,082－－

5,750,915－－

5,750,915

59,1295,810,044

－

－

－

－

346,358

346,358

1,178

347,537－－

5,750,915－

346,358

6,097,274

60,307

6,157,582－

33,085－32,504－65,590－65,590－－ △2,648,221

－

－

－

25,788－△25,788

－

－

－

－

109,953－－△22

109,931

14,610124,541－△9,528－－－△9,528－△9,528－△308,934－－－△308,934

168,522△140,412

－

－

－

－

△313

△313

－

△313

△175,423 △2,622,433

32,504△26,125 △2,791,477

183,132 △2,608,345

5,672,056 18,915,683 △1,149,341

1,551,888 29,703,186

1,249,133 30,952,320－
4,712,900―14―－ △2,648,221－ △2,648,221

Third quarter of the current consolidated fiscal year (From October 1, 2020 to June 30, 2021)(Unit: Thousand yen)
Notes

Balance as of October 1,
2020
ProfitOther comprehensive
incomeComprehensive income
Purchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Issuance of convertiblebond-type bonds withstock acquisition rights
Conversion of convertiblebond-type bonds withstock acquisition rights
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Changes in ownershipinterest in associates
Total transactions withownersBalance as of June 30,2021

Capitalstock

CapitalsurplusRetained Treasury
earnings
stock

4,712,900

5,675,561 20,725,465 △1,149,341

Otheritems ofequityTotal equity
Nonattributable
controllingto owners
interestsof parent

1,769,560 31,734,145

Total
Equity1,719,369 33,453,515－－

6,937,696－－

6,937,696

132,618

7,070,315

－

－

－

－

911,066

911,066

883

911,949－－

6,937,696－

911,066

7,848,763

133,502

7,982,265－－－△2,454－△2,454－△2,454－－ △3,826,483－－ △3,826,483

－

－

－

－

－

－

△63,671△63,671－

1,006,926－－－

1,006,926－

1,006,926

8,610,235

8,430,623－－－ 17,040,858－－

428,809－△428,809

－

－

－

－

77,669－－△39

77,629－77,629－△26,969－－－△26,969

129,142

102,173－

12,893－－－

12,893－

12,8939,501,143 △3,397,673△2,454△428,849 14,282,401

65,471 14,347,872

13,323,135 15,176,704 24,265,489 △1,151,796

2,251,776 53,865,309

1,918,343 55,783,653

8,610,235―15―－ △3,826,483－ 17,040,858

(4) Condensed consolidated statement of cash flows

Notes(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020
to June 30, 2021)

Q3 FY2020(From October 1, 2019
to June 30, 2020)

Cash flow from operating activities
Profit before income taxes
Profit before income taxes fromdiscontinued operations (△=loss)
Depreciation & Amortization

8,413,985

10,526,081△158,338－

1,117,664

1,387,859

115,793－

172,466－△85,335△231,476△528,794△72,344△278,124

332,434

Impairment Loss
Gain/loss from sale of subsidiary(△=gain)Financial income and expense(△=gain)
Equity method investment gain/loss(△=gain)
Increase/decrease in inventories(△=increase)
Increase/decrease in operating andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
In/Decrease in accrued revenues(△=increase)
In/Decrease in operating payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current
liabilities (△=decrease)
Other△742,104△233,425△3,121,099△12,261,272△3,619,114△1,292,995

1,463,044

189,8905,789,690

1,120,577

38,035,197△3,750,323

286,570△238,224

139,863

187,035

Subtotal

47,001,365△4,336,183

30,973

17,547△124,444△101,009

Corporate income taxes paid

△3,018,886△4,631,067

Cash flow from operating activities

43,889,007△9,050,713

Cash flow from investing activities
Purchase of property, plants andequipment
Purchase of intangible assets△380,580△205,535△1,176,244△1,198,103△892,432△102,954－

489,922

340,691

136,132－△2,000,000－

5,000,000△803,706△158

116,887

700,555－△108,566△968,256－

Interest and dividends received
Interest paid

Purchase of investment securities
Proceeds from sale of investment
securities
Proceeds from redemption of
investments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal of
deposits to subsidiaries and affiliates
Purchase of other financial assets
Proceeds from sales of otherfinancial assets
Purchase of shares of subsidiaries
resulting in change in scope of
consolidation
Proceeds from sales of shares ofsubsidiaries resulting in change inscope of consolidation
OthersCash flow from investing activities―16―△63,398△14,993△3,827,038

2,696,297

Notes(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020
to June 30, 2021)

Q3 FY2020(From October 1, 2019
to June 30, 2020)

Cash flow from financing activities
In/Decrease in short-termborrowings (△=decrease)
Repayment of long-term borrowings

4,000,000－△1,067,200△602,055

Proceeds from issuance of bonds－

21,057,055

Purchase of treasury shares－△2,454△2,647,811△3,825,963－△63,493－

122,413

Cash dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
Other
Cash flow from financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period△256,856△530,281

28,131

16,155,221△64,465

77,12940,025,634

9,877,935①

52,013,447

95,830,807①

92,039,082

105,708,743―17―

(5) Notes regarding the going concern assumptions
N/A(6) Notes regarding condensed consolidated financial statements①

Cash and cash equivalents
Breakdown of cash and cash equivalents are as follows.

Cash and cash equivalents
Deposits to subsidiaries
and affiliates

End of previous consolidated
fiscal year
(September 30, 2020)
94,880,807

Total
②

(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2021)
82,778,743

950,000

22,930,000

95,830,807

105,708,743

Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2020)
Accounts receivable - trade5,187,311

5,989,684

Operating loans

6,040,284

7,211,970

Other

1,628,262

84,673△98,461△113,412

Total

12,757,396

13,172,916

Current assets

10,782,296

9,397,816

Non-current assets

1,975,100

3,775,100

12,757,396

13,172,916

Allowanceaccounts

fordoubtful

Total③(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2021)

Deposits to subsidiaries and affiliates
Deposits to subsidiaries and affiliates are the deposits made under the CMS (cash management
system) of GMO Internet Group.

―18―