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 First Quarter FY2022(Based on Japanese GAAP)
February 10, 2022
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
Scheduled date of commencement
February 14, 2022－
quarterly reportfor dividend payment
Supplemental materials prepared for : Yes
financial results
Information meeting arranged related to : Yes (for institutional investors and analysts )financial results(Amounts rounded down to the nearest one million yen)

1. Consolidated Financial Statements for the First Quarter, FY2022(From October 1, 2021 to December 31, 2022)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
Revenue

Operating profit

Mil.YenQ1 FY2022
Q1 FY2021(*) Comprehensive profit%

Mil.Yen%Mil.Yen

2,141
66.5
210
28.6
1,285
163
－
－
Q1 FY2022 138Mil.Yen ( 38.8%)
Basic earnings per
share

Q1 FY2022
Q1 FY2021

Profit attributable toowners of parent

Ordinary profit%

Mil.Yen

210
28.6
163
－
Q1 FY2022

%

138
26.1
110
－
99Mil.Yen(-％)

Diluted earnings per
share

Yen

Yen

33.84
27.91

33.34
26.50

(2) Consolidated Financial Position
Total assets

Total equity

Mil.YenQ1 FY2022
FY2021(Note) Equity Capital

5,879
7,136
4,145 Mil.Yen

Q1 FY2022

Equity ratio

Mil.Yen

%

4,304
4,376
FY2021

70.5
59.1
4,216Mil. Yen

2. Dividends
End of Q1

End of Q2

Yen

Annual Dividend
End of Q3

Yen

Year-end

Total

Yen

Yen

Yen

FY20210.00－－
FY2022－
FY2022 (forecast)
0.00－(Note) Revision to the most recently released dividend forecast : No

51.00

51.00

57.00

57.00

3. Consolidated Financial Forecast for the Fiscal Year Ending September 2022
(October 1, 2021 to September 30, 2022)(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.YenQ2 FY2022
4,052 43.9
359 12.9
359(Cumulative)
FY20228,550 20.6
737 25.1
737(Full year)(Note) Revision to the most recently released financial forecast : No

―1―%

Mil.Yen

%

Yen

12.6

226

7.2

55.16

19.0

461

12.1

111.90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.

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 criteria : Yes[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

Q1 FY2022

4,106,320 FY2021

4,106,320

Q1 FY2022

88 FY2021

65[3] Average number of shares during the term

Q1 FY2022**

4,106,242 Q1 FY2021

3,948,635

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
3 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 of any
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……………..5

2. Quarterly Consolidated Financial Statements and Major Notes………………………………………..6(1) Quarterly consolidated balance sheet……………………………………………………………………6(2) Quarterly consolidated statement of income and statement of comprehensive income……………8(3) Notes regarding the quarterly consolidated financial statements……………………………………..9(Notes regarding the going concern assumptions)…………………………………………………….9(Changes of accounting policy)………………………………………………………………………….9(Notes regarding significant changes in shareholders’ equity)……………………………………….9(Segment Information) ……………………………………………………………………………………9(Significant subsequent matter)………………………………………………………………………….9―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 judgements as of the end of the
cumulative consolidated first quarter of the fiscal year ending September 2022.
Financial results for the cumulative consolidated first quarter of the fiscal year ending September 2022 (October 1,
2021 to December 31, 2021) are as follows.
(Unit: Thousand Yen)
Three Months Ended December 31, 2020Three Months Ended December 31, 2021

Difference(October 1, 2021 to December 31, 2020)(October 1, 2021 to December 31, 2021)(%)

1,285,793

2,141,482

66.5

Operating profit

163,502210,295

28.6

Ordinary profit

163,539

210,360

28.6

110,204

138,957

26.1

Revenue

Quarterly

profitattributabletoowners of parent
a. Revenue
We recorded revenue of ¥2,141,482 thousand (up 66.5% year on year). After the COVID-19 state of emergency andquasi-state of emergency were lifted in October 2021, the number and amount of payments processed increased inrestaurants and leisure-related member merchants vulnerable to COVID-19. Although the impact of COVID-19 varies
depending on the type of business, “cashless payment” is recognized as a safe payment method not involving the useof physical cash amid the COVID-19 crisis, contributing to stable expansion of the offline cashless payment market.
Initial revenue, consisting mainly of payment terminal sales, grew thanks to continued growth of sales of stera terminals.
For stock-model revenue, the number of stera terminals in use increased steadily and also the number of payment
terminals in use in the IoT domain increased at hotels and leisure facilities where demand is recovering after the stateof emergency was lifted. The number of payment terminals in use is steadily increasing through our effort to meet needs
for cashless payments of member merchants in all industry sectors, leading to increases in the number and amount of
payments processed and a steady growth of stock-model revenue.
b. Operating profit
We recorded operating profit of ¥210,295 thousand (up 28.6% year on year). Despite its low profitability, sale of stera
terminals drove a revenue increase and contributed to a steady profit increase. Sale and installment of payment
terminals contributed to a steady increase in the number of terminals in use, which led to increases in the number andamount of payments processed and the resulting increase in stock-model revenue with relatively high profit margin. We
also achieved a year-on-year increase in growth rate as well as 28.5% toward the full-year profit plan through continued
employment of human resources to support growth and appropriate cost management.
c. Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥138,957 thousand (up 26.1% year on year), achieving 30.1%
toward the full-year profit plan.

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

(2) Discussion of financial position(Assets)
As of December 31, 2021, current assets decreased ¥1,319,240 thousand from September 30, 2021 to ¥4,470,337
thousand. This was mainly because merchandise increased ¥561,919 thousand as we increased the payment terminal
inventory to a safe level considering the situation of the semiconductor market, and cash and cash equivalents
decreased ¥2,008,370 thousand as a result of shortening the deposit cycle applicable to member merchants in a bid
to enhance our competitive advantage in the offline cashless payment market. Non-current assets increased ¥62,569
thousand from September 30, 2021 to ¥1,409,111 thousand mainly due to an increase in software in progress of¥110,218 thousand despite decreases in goodwill and customer-related assets of ¥11,109 thousand and ¥10,702
thousand, respectively, due to amortization.
As a result, total assets decreased ¥1,256,670 thousand from September 30, 2021 to ¥5,879,449 thousand.
(Liabilities)
As of December 31, 2021, current liabilities decreased ¥1,181,208 thousand from September 30, 2021 to ¥1,538,473
thousand. This was mainly because accounts payable and deposits received decreased ¥343,789 thousand and¥683,510 thousand, respectively. Non-current liabilities decreased ¥3,397 thousand from September 30, 2021 to¥36,628 thousand mainly due to a decrease in deferred tax liabilities of ¥3,277 thousand.
As a result, total liabilities decreased ¥1,184,606 thousand from September 30, 2021 to ¥1,575,102 thousand.
(Net assets)
As of December 31, 2021, total net assets decreased ¥72,064 thousand from September 30, 2021 to ¥4,304,346
thousand. This was mainly because retained earnings increased ¥138,957 thousand due to recording of profit
attributable to owners of parent while retained earnings decreased ¥209,419 thousand due to distribution of dividend
from surplus.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
There is no change in the consolidated earnings forecasts for the year ending September 30, 2022 from thosepreviously released on November 11, 2021.
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 the government-led promotion and diversifying payment methods
as well as a shift to safe payment methods amid the COVID-19 crisis. Under such environment, the Group is focusing
on sales of payment terminals meeting the needs of member merchants, enhancement of payment processing centers,
and acquisitions of new member merchants and alliance partners.
For the year ending September 30, 2022, although the future outlook remains uncertain due to the spread of COVID19 Omicron variant, we expect to record revenue of ¥8,550 million (up 20.6% year on year), operating profit of ¥737
million (up 25.1% year on year), ordinary profit of ¥737 million (up 19.0% year on year) and profit attributable to ownersof parent of ¥461 million (up 12.1% year-on-year) by steadily carrying out our growth strategies, including growth insales 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 terminals in use.

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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 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, 2021)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2021)

3,433,620
521,859
1,614,846
222,334

1,425,249
546,2022,176,765
324,992△3,082△2,872

5,789,578

4,470,337

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

60,281

56,718646,884
192,938
128,432
222,192
2,549

653,593
303,156
117,730
211,082
1,719

Total intangible fixed assets

1,192,997

1,287,281

Investments and other assets
Lease deposits

23,64523,434Bankruptcy rehabilitation claims
Deferred tax assets
Other investments and other
Allowance for doubtful accounts

995
69,59719

1,005
41,65719△995△1,005

Total investments and other assets

93,262

65,111

Total non-current assets
Total assets―6―

1,346,541

1,409,111

7,136,119

5,879,449

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, 2021)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2021)

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

1,092,309
144,166
1,129,466
89,73320,000244,006

748,520
55,107445,955
28,700－260,189

Total current liabilities

2,719,682

1,538,473

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

39,326700

36,048579

Total non-current liabilities

40,026

36,6282,759,709

1,575,102

1,605,446
1,618,557
994,020

1,605,446
1,618,557
923,558△1,252△1,971

4,216,771

4,145,590

159,639

158,755

4,376,410

4,304,346

7,136,119

5,879,449

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Non-controlling interests
Total net assets
Total liabilities and net assets―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.

(4) Quarterly consolidated statement of income and statement of comprehensive income
Quarterly consolidated statement of income(Q1 cumulative)
Q1 FY2021(October 1, 2020 to
December 31, 2020)
1,285,793
819,605(Unit: Thousand yen)
Q1 FY2022(October 1, 2021 to
December 31, 2021)
2,141,482
1,537,613

Gross profit

466,187

603,869

Selling, general and administrative expense

302,684

393,574

Operating profit

Revenue
Cost of goods sold163,502210,295

Non-operating income
Interest income
Other non-operating income

26
58

1
87

Total non-operating income

8588

Non-operating expenses
Interest expense
Other non-operating expenses

46
2

23

Total non-operating expenses

48

23

Ordinary profit

163,539

210,360

Profit before income taxes

163,539

210,360

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

30,71733,33347,624
24,662

Total corporation income taxes

64,05072,286

Profit－99,489138,073

Profit attributable to non-controlling shareholder（△）△10,715△883

Profit attributable to owners of parent

110,204

138,957

Q1 FY2021(October 1, 2020 to
December 31, 2020)
99,489(Unit: Thousand yen)
Q1 FY2022(October 1, 2021 to
December 31, 2021)
138,073

Comprehensive income

99,489138,073(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling shareholder

110,204

138,957△10,715△883

Quarterly consolidated statement of comprehensive income(Q1 cumulative)

Profit―8―

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

(5) Notes regarding the quarterly consolidated financial statements(Notes regarding going concern assumptions)Not applicable(Changes in accounting policies, etc.)(Application of accounting standard for revenue recognition, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020), etc. and recognizes revenue at an amount that it expects to receive in exchange for thepromised goods or services when the control of the goods or services is transferred to a customer. As a result, theGroup changed the method of revenue recognition applied to projects to develop center functions for the purpose of
acquiring specific member merchants from recognizing the total amount of consideration received from a customer asrevenue at a point in time to recognizing over a period of time as a performance obligation is satisfied.
We applied the Accounting Standard for Revenue Recognition, etc. from October 1, 2021 pursuant to the transitional
treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition, with the
cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to October 1, 2021, adjusted to the beginning balance of retained earnings as of October 1, 2021. However, in
accordance with the method provided for in Paragraph 86 of the Accounting Standard for Revenue Recognition, we
did not apply the new accounting policy retrospectively to the contracts for which substantially all revenue wasrecognized under the previous method prior to October 1, 2021.
As a result, revenue for the three months ended December 31, 2021 decreased by ¥10,385 thousand, and operating
profit, ordinary profit and profit attributable to owners of parent decreased by ¥10,385 thousand, respectively. There
was no impact on the beginning balance of retained earnings as of October 1, 2021.
Pursuant to the transitional treatment provided for in Paragraph 28-15 of the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue arising fromcontracts with customers in the three months ended December 31, 2020 is not presented.
(Application of accounting standard for fair value measurement, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019), etc., and the new accounting policy provided for in the Accounting Standard for Fair
Value Measurement, etc. is applied prospectively pursuant to the transitional treatment provided for in Paragraph 19of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There was 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 theface-to-face payment processing services business, which is not material in terms of segment information disclosure.
(Significant subsequent matter)
Not applicable―9―