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, 2021
(Based on IFRS)
November 12, 2021
Company name:
Digital Garage, Inc.
Stock exchange listing: Tokyo
Securities code:
Representative:

Inquiries:

4819
URL https://www.garage.co.jp/
Representative Director,
President Executive Officer and Group CEO
Member, Board of Directors, Senior

Kaoru Hayashi

Managing Executive Officer,in charge of the Makoto Soda
Corporate Strategy Division

TEL

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

November 15, 2021–

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, 2021 (from April 1, 2021 to September 30, 2021)(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
40,109 108.2
27,425 354.3
18,409 374.0
18,496 362.0
18,013 234.4
September 30, 2021
Six months ended
19,264 (1.7)
6,037 (17.6)
3,884 (25.9)
4,003 (24.1)
5,386 (23.4)
September 30, 2020
Basic earnings per share

Diluted earnings per shareYen
401.2186.96

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen
362.6079.55(2) Consolidated financial position
Total assets

As of September 30, 2021
As of March 31, 2021

Total equity

Millions of yen
200,129
178,301

Ratio of equity
attributable to owners ofparent to total assets
Millions of yen%
79,102
39.5
62,13434.8

Equity attributable toowners of parent

Millions of yen
80,00763,082

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
32.00

Yen
32.00

–––

Year ending March 31, 2022 (Forecast)(Note 1. Revision to the forecast on financial results: No)(Note 2. Fiscal year ending March 31, 2022 forecast is to be determined.)

1

Total

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
In the field of investment and incubation in domestic and overseas unlisted companies in the Incubation Technology Segment, it is difficult
to reasonably estimate the fair value of securities held by Digital Garage Group at the end of the fiscal year. Therefore, Digital Garage, Inc.
does not disclose consolidated financial forecasts.
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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 :NoNoChanges in accounting estimatesNo:(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of September 30, 2021

47,470,800 shares As of March 31, 2021

47,441,900 shares

1,340,460 shares As of March 31, 2021

1,363,660 shares

Number of treasury shares at end of period
As of September 30, 2021

Average number of shares during period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

46,099,313 shares Six months ended September 30, 2020

246,031,452 shares

Condensed quarterly consolidated financial statements
Condensed quarterly consolidated statement of financial position(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and cash equivalents

37,98940,605Trade and other receivables
Inventories

26,574264

19,138300

Operational investment securities
Other financial assets

47,170912

61,493
276

21
618

–
734

113,548

122,545

Property, plant and equipment
Goodwill

19,478
7,689

19,545
7,934

Intangible assets
Investment property

4,000
2,924

4,098
2,927

Investments accounted for using equity method
Other financial assets

22,446
7,878

24,47018,325

Deferred tax assets
Other non-current assets

60
278

43241

Total non-current assets

64,75377,583

178,301

200,129

Income taxes receivable
Other current assets
Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of September 30, 2021

As of March 31, 2021
Liabilities and equity
Liabilities
Current liabilities
Borrowings

9,768

15,869Trade and other payables
Other financial liabilities

39,911
1,712

38,363
1,712

Income taxes payable
Other current liabilities

1,3284,146

779
3,120

Total current liabilities

56,86559,843

Bonds and borrowings
Other financial liabilities

35,85012,16830,936
11,473Retirement benefit liability
Provisions

452
485

467
483

Deferred tax liabilities
Other non-current liabilities

8,515
885

16,101
819

Total non-current liabilities

58,35560,279115,220

120,122

Share capital
Capital surplus

7,637
4,566

7,675
4,760

Treasury shares
Other components of equity(4,915)
2,062(4,831)
1,491

Retained earnings

52,78570,007

Total equity attributable to owners of parent

62,134

79,102

947

905

63,08280,007

178,301

200,129

Non-current liabilities

Total liabilities
EquityNon-controlling interests
Total equity
Total liabilities and equity

4Condensed quarterly consolidated statements of income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2020
Revenue
Revenue in recurring business
Revenue in operational investment securities
Other income
Finance income
Share of profit of investments accounted for using equity
methodTotalExpenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs

12,44912,0735,270
400

13,728549

111,401

1,143

2,358

19,264

40,109

5,593

5,148

7,041
178

7,134
188

415

212

13,228

12,683

Profit before tax
Income tax expense

6,037
2,153

27,425
9,017

Profit3,884

18,409Profit (loss) attributable toOwners of parent

4,003

18,496

Non-controlling interests

(119)

(87)

Earnings per share
Basic earnings per share

86.96

401.21

79.55

362.60Total

Diluted earnings per share

5Stand-alone 2nd quarter of fiscal year
2nd quarter endedSeptember(Millions of yen)
2nd quarter endedSeptember

30, 2020

30, 2021

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,301
4,968

6,068
9,834

Other income
Finance income

207
0223
11,382

Share of profit of investments accounted for using equity
method843

1,758

12,32029,266

2,829
3,588

2,617
3,831

109
163

117
151

6,689

6,715

Profit before tax

5,632

22,551

Income tax expense

1,902

7,453

Profit3,730

15,0983,779(50)

15,152(54)

82.08
74.56

328.60296.52

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

Profit (loss) attributable toOwners of parent
Non-controlling interests
Earnings per share
Basic earnings per share
Diluted earnings per share

6Condensed quarterly consolidated statements of comprehensive income
First six months of fiscal year
(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2020
ProfitOther comprehensive income

3,884

18,409

1,664

(407)

3(9)

(165)

2100

Other comprehensive income, net of tax

1,502(395)Comprehensive income5,386

18,013

5,505
(119)

18,100(87)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

Comprehensive income attributable toOwners of parent
Non-controlling interests

7Stand-alone 2nd quarter of fiscal yearProfit

2nd quarter endedSeptember(Millions of yen)
2nd quarter endedSeptember

30, 2020

30, 2021
3,730

15,098301(341)

(3)

(2)

(95)

2200203

(321)

3,932

14,777

3,982

14,831(50)(54)

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, 2020 (from April 1, 2020 to September 30, 2020)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Sharecapital

Balance at April 1, 2020

Capitalsurplus

7,591

Financial assets

Exchangemeasured at

differenceson

Remeasurements

comprehensive

translationof foreign

benefit plansincomeoperations

Treasuryshares4,409

fair value
through other(5,012)

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

(165)

1,667

(165)

324
–
1,502

–
28

–

(3)

––

1,502

–
137

Other

(0)

Total

1,667

(2)

–

Share-based payment transactions
Purchase of treasury shares

Balance at September 30, 2020

1,125

28

subsidiaries
Dividends–(798)

Totalof defined

97
(0)

–––

28

161

97

––––

7,6194,569(4,915)

868

960

(2)

1,826

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2020
Profit (loss)

44,721
4,003
4,003

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions(1,749)Purchase of treasury shares
OtherTotal
Balance at September 30, 2020

Totalinterests

Total

Other comprehensive income
Comprehensive income
Issuance of new shares

Non-controlling

52,033
4,003

762
(119)

52,795
3,884

1,502

1

1,502

5,505
55

(119)

5,386
55

(3)

396

393

(1,749)234(1,749)234(0)
(0)

(0)
(0)

(1,749)(1,463)396(1,067)

46,97556,075

1,039

57,1149

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
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured atfair value
through othercomprehensive
incomeBalance at April 1, 2021
Profit (loss)ontranslation

4,566(4,915)

853
(416)

21–
39–
39–(416)

21

Changes in ownership interest insubsidiaries

Remeasurements

Totalof defined
benefit plansof foreign
operations

7,637

Other comprehensive income
Comprehensive income
Issuance of new shares

Exchangedifferences

1,217(7)

(395)
–

(395)
–

0–

Change in scope of consolidation
Dividends––

Share-based payment transactions
Transfer from other components

163

Balance at September 30, 2021

84

–
(175)

of equity to retained earnings
OtherTotal

2,062
–

(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

Non-controllinginterests

Total

Total

52,785

62,134947

63,082

Profit (loss)
Other comprehensive income

18,496

18,496(395)(87)
018,409(395)Comprehensive income

18,49618,100(87)

18,013Issuance of new shares
Changes in ownership interest in77

subsidiaries
Change in scope of consolidation
Dividends
Share-based payment transactions

77

0(23)

(22)

–

67

67

(1,475)(1,475)247(1,475)247

Transfer from other componentsof equity to retained earnings

175

––

Other251818Total
Balance at September 30, 2021

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

70,007

79,102905

80,007

10

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

September 30, 2020

September 30, 2021

Cash flows from operating activities
Profit before tax
Depreciation and amortization

6,037
1,788

27,4251,778(1)120(1)
117

Share of loss (profit) of investments accounted for using
equity method(1,143)(2,358)Loss (gain) on investment securities
Decrease (increase) in trade and other receivables30
7,677(11,325)
7,352

Decrease (increase) in investment securities for sale
Decrease (increase) in inventories(4,226)24(14,318)(35)

Increase (decrease) in trade and other payables
Increase (decrease) in accrued consumption taxes(5,313)979(1,323)
(649)

Other

1,157

387

SubtotalInterest and dividends received

7,129
719

7,049
727

(38)
(49)

(35)
(1,563)

7,760

6,179

(1,314)(1,284)

(789)
(1)

(619)
(2)

Proceeds from sale of investment securities
Payments for acquisition of subsidiaries––340(301)

Purchase of investments accounted for using equity method
Proceeds from sale of investments accounted for using equity–(538)

79–

Interest and dividend income
Interest expenses on borrowings and bonds

Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities

method
Other

99

109

(1,925)(2,293)

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

1,810
3,0373,700–

Repayments of long-term borrowings
Repayments of lease liabilities(1,816)(949)(2,608)(872)

Capital contribution from non-controlling interests
Dividends paid

396
(1,747)42(1,473)

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

Other

27

(86)

Net cash provided by (used in) financing activities

757(1,298)

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

(35)

28

6,556

2,616

Cash and cash equivalents at beginning of period

32,702

37,989Cash and cash equivalents

39,25940,60511