Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Statements for the Second Quarter FY2021(Based on Japanese GAAP)May 12, 2021
Name of listed company
GMO Financial Gate, Inc.
Exchange:
Tokyo Stock Exchange Mothers
Stock code:4051
URL https://gmo-fg.com/
Representative: Kentaro Sugiyama President & Chief Executive Officer
Contact:
Masamitsu Ikezawa Director & Administrative Division Executive Manager Tel: +81-3-6416-3881
Scheduled submission date of quarterly
Scheduled date of commencement for
May 13, 2021－
reportdividend payment
Supplemental materials prepared for financial results ：YesInformation meeting arranged related to financial results ：Yes (for institutional investors and analysts)(Amounts rounded down to the nearest one million yen )Consolidated Financial Statements for the Second Quarter, FY2021(From October 1, 2020 to March 31, 2021)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
1.

Revenue

Operating profit

Mil.YenQ2 FY2021
2,816
Q2 FY2020
2,050(*) Comprehensive profit Q2 FY2021%

Mil.Yen

%

37.3
318
345
－
189 Mil.Yen (4.8%)

Basic earnings per
share

Profit attributable toowners of parent

Ordinary profit
Mil.Yen

(7.7)
－

%

319
(4.7)
335
－
Q2 FY2020

Mil.Yen%

211
197
180 Mil.Yen

7.1
－
(－%)

Diluted earnings per
share

Yen

Yen

Q2 FY2021
53.17
50.86
Q2 FY2020
54.97－(Notes)1. Since GMO Financial Gate did not prepare quarterly consolidated financial statements for the second quarter of the
fiscal year ended September 30, 2019, the percentage change from the same quarter of the previous fiscal year forthe second quarter of the fiscal year ended September 30, 2020 is not shown.
2. Although shares with dilutive effect exist, diluted earnings per share for the second quarter of the fiscal year ended
September 2020 is not presented herein as the company was not publicly listed at the time and we cannot
determine the average share price for the period in question.
3. GMO Financial Gate conducted a 30-for-1 stock split for common stock on February 14, 2020.Quarterly net income
per share has been calculated assuming the stock split was conducted at the beginning of the fiscal year ended
September 2020.

(2) Consolidated Financial Position
Total assets
Q2 FY2021
FY2020(Note) Equity capital Q2 FY2021

2.

Total equity

Equity ratio

Mil.YenMil.Yen

%

6,614
6,124

4,171
4,018

60.4
62.4

3,995 Mil.Yen

FY20203,819 Mil.Yen

Dividends
Annual Dividend
End of Q1
Yen

End of Q2

End of Q3

Yen

FY20200.00－
FY20210.00－
FY2021(forecast)(Note) Revision to the most recently released dividend forecast:―1―

Year-end

Total

Yen

Yen

Yen

－

40.00

40.00

47.00

47.00

－
No

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

3.

Consolidated Financial Forecast for the Fiscal Year Ending September 2021
(October 1, 2020 to September 30, 2021)(Percentages represent quarter-on-quarter / year-on-year % change)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Revenue
Mil. Yen%

Mil. Yen%

Mil. Yen%

Mil. Yen%(1) Changes of important subsidiaries during the period (change of specificsubsidiaries that leads to a change in the scope of consolidation)

: No

Yen

FY2021
5,249 42.2
589 30.1
587 36.9
368 26.1
91.27(Full year)(Note) Revision to the most recently released financial forecast:Yes
For more information on revised consolidated earnings forecasts, see Notice Concerning Differences Between
Consolidated Earnings Forecasts and Actual Results for the Cumulative Consolidated Second Quarter of the Fiscal YearEnding September 2021 and Revision of Consolidated earnings Forecasts, published today (May 12, 2021).

Notes:

Number of new subsidiaries:

-

(Name

)

; Number of excluded subsidiaries: -(Name(2) Adoption of the accounting method peculiar to quarterly financial statements)：No(3) Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by accounting criteria. ： No
[2] Changes in accounting policy other than [1]： No[3] Changes in accounting estimations： No[4] Restatement of prior period financial statements:： No(4) 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

Q2 FY2021
Q2 FY2021

29[3] Average number of shares during the term

Q2 FY2021

3,980,328

4,083,670

FY20203,948,370

FY2020Q2 FY2020－
3,595,170* Quarterly financial statements are not subject to review by certified public accountants or financial
statement auditors.
* Explanation of the appropriate use of earnings forecasts and other special notes
The forward-looking statements, including business results forecasts, contained in this document are based on
information available to the company at the time of preparation and on certain assumptions deemed reasonable by
the company. Forward-looking statements are not intended as a promise of actual results by the company. Actual
results may differ materially due to a variety of factors. For more regarding assumptions related to earnings forecasts
and precautions concerning the use of earnings forecasts, see 1. Qualitative Information on Quarterly Consolidated
Financial Statements (3) Discussion of consolidated earnings forecasts and other forward-looking information on page
7 of Attached Materials.

―2―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Table of contents of attachments
1.

2.

Qualitative Information on Consolidated Financial Statements for the Quarter ………………………4(1)

Discussion of operating results ……………………………………………………………………… 4(2)

Discussion of financial position ……………………………………………………………………… 5(3)

Discussion of consolidated earnings forecasts and other forward-looking information ………

7

Quarterly Consolidated Financial Statements and Major Notes…………………………………………8(1)

Quarterly consolidated balance sheet…………………………………………………………………8(2)

Quarterly consolidated statement of income and statement of comprehensive income……… 10(3)

Quarterly consolidated statement of cash flows…………………………………………………… 12(4)

Notes regarding the quarterly consolidated financial statements…………………………………13(Notes regarding the going concern assumptions) …………………………………………………13(Notes regarding significant changes in shareholders’ equity) ……………………………………13(Segment Information) …………………………………………………………………………………13(Significant subsequent matter) ………………………………………………………………………13―3―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

1. Qualitative Information on Quarterly Consolidated Financial Statements(1) Discussion of operating results
Forward-looking statements in this document reflect GMO Financial Gate Group judgments as of the end of the
cumulative consolidated second quarter of the fiscal year ending September 2021.
Financial results for the cumulative consolidated second quarter of the fiscal year ending September 2021 (October
1, 2020 to March 31, 2021) are as follows.
(Unit: Thousand Yen)
Six Months Ended March 31, 2020 Six Months Ended March 31, 2021
(October 1, 2019 to(October 1, 2020 toMarch 31, 2020)

March 31, 2021)

Revenue

Difference(%)

2,050,754

2,816,315

37.3

Operating profit

345,472

318,912(7.7)

Ordinary profit

335,350

319,549(4.7)

197,613

211,636

7.1

Quarterly profit
attributable to owners ofparenta. Revenue
We recorded revenue in the amount of ¥2,816.315 million (up 37.3% year on year). In addition to the steady
expansion of the offline payment market, we experienced steady sales of payment terminals.
With respect to initial sales, in addition to a steady increase supported mainly by progress in sales of stera
terminals, which we began handling in July 2020. Also, with respect to stock sales, which reflects the total ofsales categories excluding initial sales, we saw an expansion in the number of terminals in operation due toongoing member merchant development across a variety of industries. In this connection, fixed fees andprocessing fees rose steadily, resulting in our securing considerable growth compared to the same period in theprior fiscal year before the declaration of a state of emergency due to the COVID-19 pandemic. Further, withrespect to member merchant sales, many industries are susceptible to the impact of the COVID-19 pandemic
among member merchants who impact our revenues. Particularly after another declaration of a state of
emergency in January 2021, consumption at member merchants, mainly in the small restaurant industry,
declined, leading to a lower increase compared to other sales categories.
b. Operating profit
We recorded operating profit in the amount of ¥318.912 million (down 7.7%). The main factor behind thisdecrease was the recording of a one-time special factor (recording of development profit stemming from the
cashless/consumer return initiative driven by the Ministry of Economy, Trade and Industry) in the same period of
the prior fiscal year.
Our progress was 112.3% compared our earnings forecasts for the cumulative second quarter of the fiscal year
ending September 2021, published on November 11, 2020.
c. Quarterly profit attributable to owners of parent
We recorded a quarterly profit attributable to owners of parent in the amount of ¥211.636 million (up 7.1%). We
also recorded a loss attributable to non-controlling shareholders of ¥22.238 million in connection with GMO Data
Corporation, a 51%-owned consolidated subsidiary.

―4―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(2) Discussion of financial positiona. Assets, liabilities, and net assets
Assets
As of the end of the consolidated second quarter, current assets amounted to ¥5,428.836 million, an increase of¥404.752 million compared with the end of the prior consolidated fiscal year. This increase was mainly due to anincrease in merchandise of ¥424.284 million, which was offset in part by a decrease in cash and deposits of¥95.637 million. Non-current assets as of the end of the consolidated second quarter amounted to ¥1,185.416
million, an increase of ¥84.635 million compared with the end of the prior consolidated fiscal year. This increase
was mainly due to an increase in software in progress of ¥171.140 million, offset in part by decreases of¥22.219 million in goodwill and ¥21.405 million in customer-related assets due to depreciation and amortization.
As a result, total assets as of the end of the consolidated second quarter amounted to ¥6,614.253 million, an
increase of ¥489.387 million compared with the end of the prior consolidated fiscal year.
Liabilities
As of the end of the consolidated second quarter, current Liabilities amounted to ¥2,393.753 million, an increaseof ¥346.991 million compared with the end of the prior consolidated fiscal year. This increase was mainly due toincreases of ¥314.812 million in advances received (included under other current liabilities), ¥125.086 million inaccounts payable-trade, and ¥45.904 million in deposits received. These amounts were offset in part bydecreases of ¥63.991 million in income taxes payable, ¥46.0 million in provision for bonuses, and ¥22.760
million in provision for directors' bonuses. Non-current liabilities as of the end of the consolidated second quarteramounted to ¥48.933 million, a decrease of ¥11.003 million compared with the end of the prior consolidated
fiscal year. This decrease was mainly due to a decrease of ¥6.554 million in deferred tax liabilities.
As a result, total liabilities as of the end of the consolidated second quarter amounted to ¥2,442.686 million, an
increase of ¥335.988 million compared with the end of the prior consolidated fiscal year.
Net Assets
Net assets as of the end of the consolidated second quarter amounted to ¥4,171.566 million, an increase of¥153.399 million compared with the end of the prior consolidated fiscal year. This increase was mainly due tothe company recorded ¥211.636 million in profit attributable to owners of parent, resulting in an increase inretained earnings of the same amount. This increase was offset in part by ¥157.934 million in dividends fromsurplus, resulting in a decrease in retained earnings of the same amount.
b. Cash flows
Cash and cash equivalents (Cash) as of the end of the consolidated second quarter amounted to ¥2,850.391
million, a decrease of ¥95.637 million compared with the end of the prior consolidated fiscal year.
The following details the circumstances of company cash flows for the cumulative consolidated second quarterof the fiscal year under review.
Cash flows from operating activities
Net cash from operating activities amounted to ¥130.842 million, compared with net cash proceeds of ¥242.971
million during the same period in the prior fiscal year. This result was mainly due to increased Cash stemmingfrom an increase in inventories of ¥424.327 million, an increase in trade accounts receivable of ¥130.243
million, a decrease in income taxes paid of ¥138.519 million, and decreased Cash stemming from the recordingof quarterly profit before income taxes of ¥318.650 million, and increase in accounts payable of ¥125.085
million, an increase in deposits received of ¥45.903 million, and an increase in advances received of ¥314.812
million.

―5―

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Cash flows from investing activities
Net cash used in investing activities amounted to ¥205.303 million, compared with net cash used in the amountof ¥91.904 million during the same period in the prior fiscal year. This result was mainly due to Cash decreases
stemming from the purchase of intangible assets in the amount of ¥201.070 million.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥21.175 million, compared with net cash used of ¥11.425
million in the same period during the prior fiscal year. This result was mainly due to a decrease in Cashstemming from cash dividends paid in the amount of ¥139.040 million, offset in part by an increase in Cashstemming from proceeds from issuance of shares resulting from exercise of subscription rights to shares in theamount of ¥122.413 million.

―6―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
GMO Financial Gate revised our full-year consolidated earnings forecasts. We announced our initial earnings
forecasts on November 11, 2020.
The offline payment market in which the GMO Financial Gate Group operates is experiencing a transition to cashless
payments based on government-led promotion and a diversifying variety of cashless payment methods. Further, thewith-COVID-19 era has become a tailwind pushing cashless payments as a safe payment method. Given thesetrends, more member merchants are adopting cashless payments. In this environment, the GMO Financial Gate
Group is focusing on the sale of payment terminals meeting the needs of member merchants, expanding our payment
processing center, acquiring new member merchants, and finding new alliance partners.
In response to the impact of COVID-19, we have taken advantage of remote meetings and other appropriate businessactivities, avoiding any particular declines in productivity. The January 2021 declaration of a state of emergency had anegative impact on member merchant sales due to weak consumer activity, particularly in the small restaurant
industry. However, we continued our efforts to develop new member merchants across a variety of industries. As aresult, fixed fees and processing fees rose steadily, supported by stable growth in the number of payments processed
and the amount of payments processed among member merchants who were more resistant to the effects of the
COVID-19 pandemic.
Based on the preceding factors, we have made an upward revision to consolidated revenue for the fiscal year ending
September 2021, raising our forecast from ¥4,800 million to ¥5,249 million.
On the other hand, we have decided to leave our forecast for full-year consolidated profits unchanged. We made thisdecision in light of the current situation in which we see certain priority measures in infection prevention and anotherissuance of a declaration of a state of emergency associated with a reemergence of COVID-19 infections. Given
these developments, we must make a careful assessment of payment settlement trends among member merchants inthe third quarter and beyond.
For more information, see Notice Concerning Differences Between Consolidated Earnings Forecasts and Actual
Results for the Cumulative Consolidated Second Quarter of the Fiscal Year Ending September 2021 and Revision ofConsolidated earnings Forecasts, published today (May 12, 2021).

―7―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet
End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2021)

2,946,028
313,409
1,431,692
334,732(1,777)2,850,391
442,803
1,855,976
281,768(2,103)

5,024,084

5,428,836

AssetsCurrent assets
Cash and cash equivalents
Trade accounts receivables
Merchandise
Other financial assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Software
Software in progress
Customer-related assets
Goodwill
Other intangible fixed assets

58,89855,208431,270
77,588171,243
266,630
5,880

413,254248,728
149,838
244,411
4,214

Total intangible fixed assets

952,613

1,060,447

Investments and other assets
Lease deposits

24,48824,066

251
61,297
3,484
(251)

1,100
45,67518(1,100)Bankruptcy rehabilitation claims
Deferred tax assets
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―8―

89,26969,7601,100,781

1,185,416

6,124,865

6,614,253

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2021)

499,574
158,334
1,064,278
95,30038,500190,773624,660
94,343
1,110,182
49,30015,740499,526

Total current liabilities

2,046,761

2,393,753

Non-current liabilities
Deferred tax liabilities
Other non-current liabilities

52,4347,501

45,8803,053

Liabilities
Current liabilities
Accounts payable
Income taxes payable
Deposits received
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Share options
Non-controlling interests
Total net assets
Total liabilities and net assets―9―59,93648,9332,106,698

2,442,686

1,533,123
1,546,234
740,576－

1,594,330
1,607,441
794,278(478)

3,819,934

3,995,571

0
198,233－
175,994

4,018,167

4,171,566

6,124,865

6,614,253

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(2) Quarterly consolidated statement of income and statement of comprehensive income
Quarterly consolidated statement of income(Q2 cumulative)
Q2 FY2020(From October 1, 2019 toMarch 31, 2020)
2,050,754
1,127,211(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020 toMarch 31, 2021)
2,816,315
1,836,706

Gross profit

923,542979,608

Selling, general and administrative expense

578,069

660,695

Operating profit

345,472

318,912

Non-operating income
Interest income
Other non-operating income

72
59

59
665

Revenue
Cost of goods soldTotal non-operating income

131

725

Non-operating expenses
Interest expense
Stock listing-related expenses
Other non-operating expenses

144
10,1072

87

Total non-operating expenses

10,254

89

335,350

319,549

2,548
－

－
898

Total extraordinary loss

2,548

898

Profit before income taxes

332,801

318,650

Corporation income tax、resident tax, business tax
Corporation income taxes deferred

154,910(2,806)

120,184
9,067

Total corporation income taxes

152,103129,252

Ordinary profit
Extraordinary loss
Office relocation expense
Loss on retirement of fixed assets－
2

Profit180,698

189,398

Profit attributable to non-controlling shareholder(16,914)(22,238)

Profit attributable to owners of parent

197,613

211,636―10―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Quarterly consolidated statement of comprehensive income(Q2 cumulative)
Q2 FY2020(From October 1, 2019 toMarch 31, 2020)
180,698(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020 toMarch 31, 2021)
189,398

Comprehensive income

180,698

189,398(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling shareholder

197,613

211,636(16,914)(22,238)

Profit―11―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(3) Quarterly consolidated statement of cash flows
Q2 FY2020(From October 1, 2019 toMarch 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for employees’
bonuses
Increase (decrease) in allowance for directors’
bonuses
Increase (decrease) in allowance for doubtful
accounts
Stock listing-related expenses
Interest income
Interest expense(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020 toMarch 31, 2021)

332,801
92,861
22,219318,650
101,503
22,219(40,738)(46,000)

51,250(22,760)

616

1,174

Decrease (increase) in trade accounts receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in deposits received
Other, net

10,107(72)
144(101,151)(39,397)
261,936(228,453)(39,652)－(59)
87(130,243)(424,327)
125,085
45,903
278,156

Subtotal

322,472

269,389

72
(144)

59
(87)

Income taxes paid

(79,429)(138,519)

Net cash provided by (used in) operating activities

242,971

130,842(25,280)(42,248)(24,409)34(7,368)(201,070)(91,904)(205,303)Interest income received
Interest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible fixed assets
Proceeds from collection of lease deposits
Other, net
Net cash provided by (used in) investing activities

－
3,135

Cash flows from financing activities
Proceeds from share issuance by exercising
share options
Purchase of treasury shares
Dividend paid
Stock listing-related expenses
Other, net－

122,413－－(5,881)(5,543)(478)(139,040)

Net cash provided by (used in) financing activities(11,425)(21,175)

Net increase (decrease) in cash and cash equivalents－(4,070)139,641(95,636)

Cash and cash equivalents at beginning of period

3,135,493

2,946,028

Cash and cash equivalents at end of period

3,275,135

2,850,391―12―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(4) Notes regarding the quarterly consolidated financial statements(Notes regarding the going concern assumptions)Not applicable（Notes regarding significant changes in shareholders’ equity）
Not applicable(Segment information)[Segment information]
Q2 FY2020 (From October 1, 2019 to March 31, 2020)
Segment information has been omitted as the GMO Financial Gate Group has only one business segment,
namely the face-to-face payment processing services business, which is not material in terms of segment
information disclosure.
Q2 FY2021 (From October 1, 2020 to March 31, 2021)
Segment information has been omitted as the GMO Financial Gate Group has only one business segment,
namely the face-to-face payment processing services business, which is not material in terms of segment
information disclosure.
(Significant subsequent matter)
Not applicable.

―13―