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

Summary of Consolidated Financial Statements for the First Quarter FY2023(Based on Japanese GAAP)
February 13, 2023
Name of listed company: GMO Financial Gate, Inc
Exchange: Tokyo Stock Exchange Growth
Stock code:4051
URL
https://gmo-fg.com/
Representative: Kentaro Sugiyama, President & Chief Executive Officer
Contact:
Tomoki Tamai, Director, Administrative Division Executive Officer
Tel: +81-3-6416-3881
Scheduled submission date of
Scheduled date of commencement for
February 13, 2023－
quarterly report
dividend payment
Supplemental materials prepared for financial results： Yes
Information meeting arranged related to financial results ： Yes (for institutional investors and analysts )(Amounts rounded down to the nearest one million yen)

1．Consolidated Financial Statements for the First Quarter, FY2023(From October 1, 2022 to December 31, 2022)(1)Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
Revenue

Operating profit％

Mil.YenQ1 FY2023
Q1 FY2022(*) Comprehensive profit

3,267
2,141
Q1 FY2023％

Mil.Yen

52.6
282
34.5
66.5
210
28.6
174Mil.Yen (26.2％）

Basic earnings per
share

Profit attributable toowners of parent

Ordinary profit％

Mil.YenMil.Yen

282
34.3
170
210
28.6
138
Q1 FY2023 138Mil.Yen ( 38.8％)

％

22.6
26.1

Diluted earnings per
share

Yen

Yen

Q1 FY2023
20.67
20.49
Q1 FY2022
16.92
16.67
(Note) The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock split has
been reflected in the calculation of basic earnings per share for the fiscal year ending September 30, 2023 (forecast).

(2)Consolidated Financial Position
Total assets
Q1 FY2023
FY2022(Note) Equity Capital Q1 FY2023

Total equity

Equity ratio

Mil.YenMil.Yen

7,325
6,638
4,314Mil.Yen

4,484
4,670
FY2022

％

58.9
67.8
4,503Mil.Yen

2．Dividends
End of Q1

End of Q2

Yen

Annual Dividend
End of Q3

Yen

Year-end

Yen

Total

Yen

Yen

FY2022
0.00
58.00
58.00
－
－
FY2023－
FY2023 (forecast)
0.00
36.00
36.00
－
(Note)1. Revision to the most recently released dividend forecast:No
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. Accordingly, the year-end
dividend for the fiscal year ending September 30, 2023 (forecast) considers the effect of this stock split.

3．Consolidated Financial Forecast for the Fiscal Year Ending September 2023
(October 1, 2022 to September 30, 2023)(Percentages represent quarter-on-quarter / year-on-year % change)
Profit attributable to Basic earnings per
Operating profit
Ordinary profit
owners of parent
share

Revenue
Mil.Yen%Mil.Yen%Mil.Yen%Mil.Yen%Yen

Q2 FY2023
6,115 36.9
453 22.2
452 22.0
283 21.0
34.37(Cumulative)
FY2023
12,470 21.1
930 25.6
928 24.4
580 22.8
70.39(Full year)(Note) 1.Revision to the most recently released financial forecast No:
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock split
has been reflected in the calculation of basic earnings per share for the fiscal year ending September 30, 2023
(forecast).

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

Notes:(1) Changes of important subsidiaries during the period: No(change of specific subsidiaries that leads to a change in the scope of consolidation)
Number of new subsidiaries- (Name ); Number of excluded subsidiaries: - (Name )(2) Adoption if 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: Yes
criteria[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
[3] Average number of shares during the term

Q1 FY2023

8,260,220 FY2022

8,260,220

Q1 FY2023

19,130 FY2022

252

Q1 FY2023

8,241,838 Q1 FY2022

8,212,484(Notes) 1. The number of treasury shares at the end of the term includes the Company’s shares held by Board Benefit
Trust (BBT and J-ESOP) (Q1 FY2022: NA, Q1 FY2023: 18,800 shares)
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The number of sharesissued (common stock) has been calculated assuming the stock split had been conducted on October 1,
2021.

*
*

Quarterly financial statements are not subject the review by certified public accountants or financial
statement auditors.
Explanation of the appropriate use of 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 6 of Attached Materials.

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

Table of contents of attachments

1. Qualitative Information on Quarterly Consolidated Financial Statements……………………………..4(1) Discussion of operating results……………………………………………………………………………4(2) Discussion of financial position……………………………………………………………………………5(3) Discussion of consolidated earnings forecasts and other forward-looking information……………..6

2. Quarterly Consolidated Financial Statements and Major Notes………………………………………..7(1) Quarterly consolidated balance sheet…………………………………………………………………… 7(2) Quarterly consolidated statement of income and statement of comprehensive income…………… 9(3) Notes regarding the quarterly consolidated financial statements……………………………………..10(Notes regarding the going concern assumptions)…………………………………………………….10(Changes of accounting policy)…………………………………………………………………………. 10(Notes regarding significant changes in shareholders’ equity)………………………………………. 10(Segment Information) ……………………………………………………………………………………10(Significant subsequent event) ………………………………………………………………………….11―3―

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event ofany 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 judgements as of the end of the
cumulative consolidated first quarter of the fiscal year ending September 2023.
Financial results for the cumulative consolidated first quarter of the fiscal year ending September 2023 (October 1,
2022 to December 31, 2022) are as follows.
(Unit: Thousand Yen)
Three Months Ended

Three Months Ended

December 31, 2021

December 31, 2022

Growth rate

(October 1, 2021 to(October 1, 2022 to(%)

December 31, 2021)

December 31, 2022)

Revenue

2,141,482

3,267,719

52.6

Operating profit

210,295

282,777

34.5

Ordinary profit

210,360

282,44434.3

138,957

170,388

22.6

Quarterly profit attributable toowners of parenta.

Revenue

We recorded revenue of ¥3,267,719 thousand (up 52.6% year on year).
During the three months ended December 31, 2022, the amount of payments processed increased in a lot of
member merchants’ sectors in the offline cashless payment market in which we operate thanks to an increase in
consumption associated with the year-end sales campaign and the gradual recovery of economic activities to thepre-COVID levels despite an increase in the number of new infections due to the eighth wave of COVID-19. As thenumber of travelers visiting Japan continues to be on a recovery trend, demand from inbound tourists also
appeared to have contributed to a certain extent. As a result, the number and amount of payments processed, oneof our KPIs, showed strong growth.
Sales of stera terminals continued to make a large contribution to sales of payment terminals which account formost of initial sales. Purchasers of payment terminals are dispersed across industries, and we were able to achieve
stable growth of initial sales by accommodating various cashless payment needs of member merchants.
Stock-model revenue, consisting of stock, fee and spread revenues, also steadily increased, mainly due to anincrease in the number of active terminals through sales of payment terminals as well as a seasonal factor that the
number and amount of payments processed increased in the three months ended December 31, 2022 due to theyear-end sales campaign, accelerated pace of recovery in the economic activities to the pre-COVID levels, and aboost from gradual recovery in demand from inbound tourists.

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

Revenue by business model for the three months ended December 31, 2022 is as follows. Figures in parenthesis
are a breakdown of stock-model revenue.
(Unit: Thousand Yen)
Three Months Ended December 31, 2022
(October 1, 2022 to December 31, 2022)

Ratio (%)

Initial2,220,189

67.9

Stock-model (total of Stock, Fee and Spread)

1,047,530

32.1

Stock

(259,777)

(8.0)

Fee

(519,736)(15.9)

Spread(268,016)(8.2)

3,267,719

100.0

Total

b.

Operating profit

We recorded operating profit of ¥282,777 thousand (up 34.5% year on year). While profitability of initial sales
primarily consisting of sale of payment terminals is low, increases in the number of active terminals and the number
and amount of payments processed led to the growth in high-margin stock-model revenue, contributing to a profit
increase. At the same time, while we continued employment of human resources to support growth, return toofficers and employees, and various growth investments, we achieved a year-on-year increase in growth rate
through an appropriate cost management and also made good progress toward the half- and full-year profit plans.
c.

Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥170,388 thousand (up 22.6% year on year).

(2) Discussion of financial position(Assets)
As of December 31, 2022, current assets increased ¥742,263 thousand from September 30, 2022 to ¥5,758,320
thousand. This was mainly because merchandise increased ¥1,004,503 thousand as we increased the payment
terminal inventory to a certain level based on the sales forecast and trade accounts receivable increased ¥516,500
thousand due to strong sales of payment terminals while cash and cash equivalents decreased ¥799,097 thousand.
Non-current assets decreased ¥54,652 thousand from September 30, 2022 to ¥1,567,303 thousand mainly due toa decrease in deferred tax assets of ¥67,040 thousand despite an increase in software in progress of ¥24,275
thousand.
As a result, total assets increased ¥687,610 thousand from September 30, 2022 to ¥7,325,624 thousand.
(Liabilities)
As of December 31, 2022, current liabilities increased ¥872,589 thousand from September 30, 2022 to ¥2,801,374
thousand. This was mainly because accounts payable and short-term loans payable increased ¥710,009 thousandand ¥500,000 thousand, respectively, while income taxes payable and allowance for employees’ bonuses
decreased ¥230,862 thousand and ¥168,263 thousand, respectively. Non-current liabilities increased ¥680
thousand from September 30, 2022 to ¥39,252 thousand mainly due to increases in provision for management
board benefit trust and provision for employee stock ownership plan trust of ¥2,994 thousand and ¥1,089 thousand,respectively, despite a decrease in deferred tax liabilities of ¥3,277 thousand.
As a result, total liabilities increased ¥873,270 thousand from September 30, 2022 to ¥2,840,626 thousand.

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

(Net assets)
As of December 31, 2022, total net assets decreased ¥185,659 thousand from September 30, 2022 to ¥4,484,997
thousand. This was mainly because retained earnings decreased ¥239,539 thousand due to distribution of dividend
from surplus and treasury stock increased ¥120,385 thousand while retained earnings increased ¥170,388
thousand due to recording of profit attributable to owners of parent.
(3) Discussion of consolidated earnings forecasts and other forward-looking information
There is no change in the consolidated earnings forecasts for the fiscal year ending September 30, 2023 from thosepreviously released on November 14, 2022 at this point. In the offline cashless payment market in which the Group
operates, the number of member merchants adopting the cashless payment is on the rise against a backdrop of thegovernment-led promotion and diversifying payment methods as well as a shift to safe payment methods amid the
COVID-19 crisis. Recently, the Japanese government announced a plan to downgrade the legal status of COVID-19
to Class 5 this spring despite an increase in the number of new infections due to the eighth wave of COVID-19,
signaling that the economic activities are returning to the pre-COVID levels. Although the future outlook remains
uncertain due to price hikes, market speculation of monetary tightening, and specter of recession, we expect to record
revenue of ¥12,470 million (up 21.1% year on year), operating profit of ¥930 million (up 25.6% year on year), ordinary
profit of ¥928 million (up 24.4% year on year) and profit attributable to owners of parent of ¥580 million (up 22.8%
year-on-year) by steadily carrying out our growth strategies, including growth in sales of next-generation payment
terminal stera, sales and installment of payment terminals in the IoT domain, accumulation of stock-model revenue
through an increase in the number of active terminals.

―6―Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event ofany 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, 2022)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2022)

2,519,185
630,851
1,506,845
362,240

1,720,088
1,147,351
2,511,348
384,776△3,065△5,244

5,016,057

5,758,320

AssetsCurrent assets
Cash and cash equivalents
Trade accounts receivable
Merchandise
Other financial assets
Allowance of 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

79,68588,497989,279
103,872
85,621
177,75360

990,583
128,148
74,919166,64460

Total intangible fixed assets

1,356,587

1,360,354

Investments and other assets
Lease deposits

47,80147,609Bankruptcy rehabilitation claims
Deferred tax assets
Other investments and other
Allowance for doubtful accounts

1,021
137,863
19

1,019
70,82219△1,021△1,019Total investments and other assets

185,683

118,451

1,621,956

1,567,303

6,638,014

7,325,624

Total non-current assets
Total assets―7―

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

End of previous consolidated
fiscal year
(September 30, 2022)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2022)

Liabilities
Current liabilities
Account payable
Short term borrowing
Income taxes payable
Contract liabilities
Deposits received
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities

814,649

Total current liabilities
Non-current liabilities
Provision for employee stock ownership plantrust
Provision for management board benefit trust
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities－
253,018
34,343
173,421
241,500
59,300352,552

1,524,659
500,000
22,15663,088307,383
73,23749,000261,849

1,928,785

2,801,374

166

1,255

11,977
26,217210

14,971
22,94084

38,571

39,252

1,967,356

2,840,626

Capital stock
Capital surplus
Retained earnings
Treasury stock

1,617,987
1,631,098
1,257,124

1,617,987
1,631,098
1,187,973△2,627△123,013

Total shareholders’ equity

4,503,581

4,314,045

Total liabilities
Net assets
Shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets―8―167,075

170,952

4,670,657

4,484,997

6,638,014

7,325,624

Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event ofany 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(Q1 cumulative)
Q1 FY2022(October 1, 2021 to
December 31, 2021)
2,141,482
1,537,613(Unit: Thousand yen)
Q1 FY2023(October 1, 2022 to
December 31, 2022)
3,267,719
2,424,177

Gross profit

603,869

843,542

Selling, general and administrative expense

393,574

560,764

Operating profit

Revenue
Cost of goods sold210,295

282,777

Non-operating income
Interest income
Other non-operating income

1
87

2
0

Total non-operating income

883

Non-operating expenses
Interest expense
Other non-operating expenses

23
－

304
32

Total non-operating expenses

23

336

Ordinary profit

210,360

282,444

Profit before income taxes

210,360

282,444

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

47,624
24,662

44,416
63,763

Total corporation income taxes

72,286108,179

Profit138,073

174,264

△883

3,876

138,957

170,388

Profit attributable to non-controlling shareholder（△）
Profit attributable to owners of parent
Quarterly consolidated statement of comprehensive income(Q1 cumulative)

Q1 FY2022(October 1, 2021 to
December 31, 2021)
138,073(Unit: Thousand yen)
Q1 FY2023(October 1, 2022 to
December 31, 2022)
174,264

Comprehensive income

138,073

174,264(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling shareholder

138,957

170,388
3,876

Profit―9―△883

Translation
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(3) Notes regarding the quarterly consolidated financial statements(Notes regarding going concern assumptions)Not applicable(Changes of accounting policy)(Application of accounting standard for fair value measurement, etc.)
The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 31, June 17, 2021. Hereinafterreferred to as "Accounting Standard for Calculation of Fair Value") is applied from the beginning of the first quarter
current fiscal year, and the transitional treatment prescribed in Paragraph 27-2 of the Accounting Standard for
Calculation of Fair Value is applied. In accordance with the treatment, the new accounting policy stipulated by the fairvalue accounting standard will be applied prospectively. There is no impact on the quarterly consolidated financial
statements.
(Notes regarding significant changes in shareholders’ equity)
Not applicable(Segment information)[Segment information]
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.

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Translation
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(Significant subsequent event )(Stock split and related partial amendment to the Articles of Incorporation)
Pursuant to the resolution at the Board of Directors meeting on December 19, 2022, the Company split its sharesand partially amended its Articles of Incorporation on January 17, 2023.
1.

Purpose of the share split
The purpose of this stock split is to further expand its investor base and increase the liquidity of the Company’s
shares by reducing the price per trading unit of the Company’s shares and creating an environment favorable
to investors.

2.

Overview of the stock split(1) Method of the stock split
Each share of common stock held by shareholders on the final shareholder registry as of the record date ofJanuary 16, 2023 was split into two shares.
(2) Number of shares to be increased by the stock split(i) Total number of shares issued and outstanding before the stock split: 4,130,110 shares(ii) Number of shares to be increased by the stock split: 4,130,110 shares(iii) Total number of shares issued and outstanding after the stock split: 8,260,220 shares(iv) Total number of authorized shares after the stock split: 28,761,360 shares
The above number of shares is calculated based on the total number of shares issued and outstanding as ofDecember 31, 2022.

3.

Schedule of the stock split(1) Date of public notice of the record date:4.

December 19, 2022

(2) Record date:

January 16, 2023

(3) Effective date:

January 17, 2023

Impact on the per share information
Please refer to “Summary information” for the impact on the per share information.

5.

Partial amendment to the Articles of Incorporation(1) Reason for the amendment to the Articles of Incorporation
Following the stock split, the total number of shares authorized to be issued stipulated in Article 7 of theCompany’s Articles of Incorporation was changed on January 17, 2023, pursuant to Article 184, Paragraph 2of the Companies Act.
(2) Details of the amendment to the Articles of Incorporation
The detail of the amendment is as follows.
（Underlined parts indicate the amendments)
Current Articles of Incorporation

Proposed amendment(Total Number of Shares Authorized to Be Issued) (Total Number of Shares Authorized to Be Issued)
Article 7 The total number of shares authorized Article 7 The total number of shares authorized
to be issued by the Company shall be
to be issued by the Company shall be
14,380,680 shares.
28,761,360 shares.

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

(3) Schedule of the amendment to the Articles of Incorporation
Date of the resolution at the Board of Directors meeting: December 19, 2022
Effective date:
6.

January 17, 2023

Other
(1) Change in the amount of capital stock
There will be no change in the amount of capital stock as a result of the stock split.
(2) Adjustment to the exercise price of stock options
The exercise price per unit of stock options was adjusted as follows on January 17, 2023 as a result of thestock split.

Name of the stock options

Exercise price before
adjustment

Exercise price after
adjustment

Stock Option No. 2

967 Yen484 YenStock Option No. 3

1,167 Yen

584 Yen―12―