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 Year Ended March 31, 2023
(Based on IFRS)

May 11, 2023

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
Corporate Officer

Co-Head of Corporate DivisionScheduled date of ordinary general meeting of shareholders:

Kaoru Hayashi
Kenji Aoi

TEL03-6367-1111

June 23, 2023

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

June 23, 2023
June 26, 2023

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

Yes
Yes

(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
RevenueYear ended March 31,2023
Year ended March 31,2022

Millions ofyen

Profit before tax

Profit%Millions ofyen%Millions ofyen

30,070 (58.8)(13,881)–(9,322)

72,95545,393 217.1

80.2

Percentages indicate year-on-year changes
Profit attributable Comprehensive
to owners of parent
incomeMillions ofMillions%%%
yenof yen–

30,149 216.7(9,058)–30,330 209.9(9,545)–29,733 163.5

Return on equity
Ratio of profit before Ratio of operating
attributable toprofit to revenue
tax to total assets
owners of parent
Yen%%%(193.27)(10.3)(6.2)(46.2)
592.36
38.4
22.1
62.2

Basic earnings per Diluted earnings per
share
shareYen(193.27)654.77

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position
Total assets

As of March 31, 2023
As of March 31, 2022
(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Millions of yen
216,270
231,607

Ratio of equity
Equity attributable toEquity attributable to attributable to owners
Total equity
owners of parent per
owners of parentof parent to total
shareassetsMillions of yen
Millions of yen%
Yen
82,08580,14237.1
1,739.48
97,217
95,73841.3
2,033.00

Cash flows fromoperating activities
Millions of yen
13,473
7,059

Cash flows frominvesting activities
Millions of yen
1,628(7,978)1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(5,214)53,335
6,244
43,415

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end
Yen

YenYenTotal cash
dividends

TotalYenDividend payout
ratio

Ratio of dividends
to equity
attributable toowners of parent

Yen

Millions of yen%%

Year ended March 31, 2022
–0.00
–35.0035.00
Year ended March 31, 2023
–0.00
–37.0037.00
Year ending March 31, 2024–––––
(Forecast)(Note 1. The dividend forecast for the fiscal year ending March 31, 2024 has not been determined.)

1,648
1,705

5.3
–

2.1
2.0–

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
The Company does not disclose its consolidated financial results forecast because it is difficult to reasonably estimate the fair value of securities
held by the Group at the end of the fiscal year in the field of startups investment etc.
The profit before tax in the new segment, our revenue base that integrates payment and marketing businesses, etc., is expected to increase byapproximately 15% compared to the consolidated financial results for FYE March 31, 2023.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:No(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of March 31, 2023

47,607,500 shares As of March 31, 2022

47,482,800 shares

1,534,826 shares As of March 31, 2022

390,960 shares

Number of treasury shares at end of period
As of March 31, 2023
Average number of shares during period
Year ended March 31, 2023

46,867,530 shares Year ended March 31, 2022

246,322,198 shares

Consolidated financial statements
Consolidated statement of financial position(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and cash equivalents

43,41553,335Trade and other receivables
Inventories

24,462347

20,765357

Operational investment securities
Other financial assets

77,950277

67,676281

Income taxes receivable
Other current assets

88
1,103

1,384
979

147,642

144,776

Property, plant and equipment
Goodwill

18,423
6,804

16,613
6,415

Intangible assets
Investment property

4,194
3,171

4,548
3,400

Investments accounted for using equity method
Other financial assets

27,80823,31725,916
14,245

Deferred tax assets
Other non-current assets

17231

26331

Total non-current assets

83,96571,493

231,607216,270

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of March 31, 2023

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

9,223

38,745Trade and other payables
Other financial liabilities

43,9001,666

48,877
1,691

Income taxes payable
Other current liabilities

394
4,059

1,388
4,080

Total current liabilities

59,242

94,780Bonds and borrowings
Other financial liabilities

40,71010,683

13,957
9,127

Retirement benefit liability
Provisions

480
480

477
476

Deferred tax liabilities
Other non-current liabilities

22,001796

14,599767

Total non-current liabilities

75,14939,404

134,390

134,185

Share capital
Capital surplus

7,692
6,147

7,8306,229

Treasury shares
Other components of equity(1,409)2,273(6,293)
1,650

Retained earnings

81,03570,726

Total equity attributable to owners of parent

95,73880,142

Non-controlling interests

1,479

1,942

Total equity

97,21782,085

231,607216,270

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022
Revenue
Revenue in recurring business

24,83025,128

Revenue in operational investment securities
Other income

28,269
954

–
3,518

Finance income
Share of profit of investments accounted for using equity

13,161

499

5,741

925

72,95530,070methodTotal
Expenses
Cost of sales

10,513

10,094

Loss in operational investment securities
Selling, general and administrative expenses–
14,818

7,926
16,175

Other expenses
Finance costs

1,881
349

1,190
8,567

Total

27,561

43,952

Profit (loss) before tax

45,393(13,881)

Income tax expense

15,244(4,559)Profit (loss)30,149(9,322)30,330(181)(9,058)(264)654.77592.36(193.27)(193.27)

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share5Consolidated statements of comprehensive income

Profit (loss)

Fiscal year ended(Millions of yen)
Fiscal year ended

March 31, 2022

March 31, 2023
30,149(9,322)

(887)

(668)

8

8

16

(16)

447

453

(0)

0(416)(224)

29,733(9,545)29,911(9,284)

(178)

(262)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designated asmeasured at fair value through other comprehensive income
Remeasurements of defined benefit plans
Share 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 parentNon-controlling interests

6Consolidated statement of changes in equity(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)

7,637

4,566

(4,915)

–
55

–55

–

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

Exchangedifferencesontranslationof foreign
operations

Remeasurements

Totalof defined
benefit plans853

1,217(7)

2,062
–

(871)

443

8(420)(871)

443

8(420)–

171–

Change in scope of consolidation
Dividends––

Share-based payment transactions
Disposal of treasury shares

211
1,206

84
3,422

Transfer from other components ofequity to retained earnings

631

OtherTotal
Balance at March 31, 2022

–

55

1,580

3,506

631

–

–

631

7,692

6,147

(1,409)

613

1,660

0

2,273

(685)

452

8–
(226)

(685)

452

8–
138

Changes in ownership interest in
subsidiaries

Purchase of treasury shares
Transfer from other components of–

(226)
––

(9)116––(47)(5,000)–(397)

equity to retained earnings
Other
Balance at March 31, 2023

–
138
13

Dividends
Share-based payment transactions

Total

631

(63)

Profit (loss)
Other comprehensive income
Comprehensive income
Issuance of new shares––(397)

(12)

–

138

83

(4,884)

(397)

––

(397)

7,830

6,229

(6,293)

(469)

2,111

8

1,650

7

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

52,78530,330

Other comprehensive income
Comprehensive income

30,330Issuance of new shares
Changes in ownership interest in

Disposal of treasury shares
Transfer from other components ofequity to retained earnings
OtherTotal
Balance at March 31, 2022
Profit (loss)(1,475)(631)

Purchase of treasury shares
Transfer from other components ofequity to retained earnings
OtherTotal
Balance at March 31, 2023

947
(181)

63,08230,149(420)

4(416)

29,911(178)

29,733
111

171

643

814

–

67

67

(1,475)295(1,475)
295

4,629

4,629

–

–

25

(38)
3,693

710

4,403

81,035(9,058)95,738(9,058)1,479(264)97,217(9,322)(226)

2(224)(9,058)(9,284)275(262)(9,545)
275

13

752

765

(1,648)107(27)(1,675)
107

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions

62,13430,330(2,081)Other comprehensive income
Comprehensive income
Issuance of new shares

Totalinterests

111

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

Non-controlling

Total(1,648)397(38)(5,047)(5,047)

––

(12)

(12)

(1,251)(6,312)725(5,587)70,72680,142

1,94282,085

8Consolidated statements of cash flows
Fiscal year ended(Millions of yen)
Fiscal year ended

March 31, 2022

March 31, 2023

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

45,393
3,620(13,881)3,632

Impairment losses
Interest and dividend income

1,372
(12)

400(57)242

269(5,741)(925)(12,581)

8,275

–
2,383

(2,631)
3,735

Decrease (increase) in investment securities for sale
Decrease (increase) in inventories(30,444)(82)

10,365(10)

Increase (decrease) in trade and other payables
Increase (decrease) in accrued consumption taxes

4,170(534)

4,383
(112)

356

637

SubtotalInterest and dividends received

8,142
1,453

14,0781,505Interest paid
Income taxes refund (paid)(71)(2,465)(102)(2,008)Net cash provided by (used in) operating activities

7,059

13,473(1,501)(342)(1,354)(4,794)(1,838)(103)

Proceeds from sale of investment securities
Payments for acquisition of subsidiaries

340
(301)

902
–

Purchase of investments accounted for using equity method
Proceeds from sale of investments accounted for using equity

(563)

(550)

–

3,522

193

37(7,978)1,628Interest expenses on borrowings and bonds
Share of loss (profit) of investments accounted for usingequity method
Loss (gain) on investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Decrease (increase) in trade and other receivables

Other

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities

methodOtherNet cash provided by (used in) investing activities

9Fiscal year ended(Millions of yen)
Fiscal year ended

March 31, 2022

March 31, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

2,650
11,700

4,130
1,250

Repayments of long-term borrowings
Repayments of lease liabilities(10,330)(1,738)(2,901)(1,727)881–

765(5,068)4,629(1,474)–(1,647)

Capital contribution from non-controlling interests
Purchase of treasury shares
Proceeds from disposition of treasury shares
Dividends paid
OtherNet cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(74)

(16)

6,244

(5,214)

102

33

Net increase (decrease) in cash and cash equivalents

5,427

9,919

Cash and cash equivalents at beginning of period

37,98943,415

Cash and cash equivalents at end of period

43,41553,33510