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 Third Quarter FY2021(Based on Japanese GAAP)
August 10, 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 forAugust 11, 2021－
reportdividend 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 Third Quarter, FY2021(From October 1, 2020 to June 30, 2021)(1) Consolidated Financial Statements (Cumulative)
Revenue

Operating profit

Mil.Yen

4,837
Q3 FY2021
2,834
Q3 FY2020(*) Comprehensive profit Q3 FY2021(Percentages represent year-on-year % change)%

Mil.Yen

%

70.6
466
416
－
279 Mil.Yen (27.7%)

Basic earnings per
share

Profit attributable toowners of parent

Ordinary profit
Mil.Yen

12.0－%

Mil.Yen

467
16.9
400
－
Q3 FY2020

%

311
30.5
238
－
219 Mil.Yen (－%)

Diluted earnings per
share

Yen

Yen

77.62
74.87
Q3 FY2021
66.43－
Q3 FY2020(Notes)1. Since GMO Financial Gate did not prepare quarterly consolidated financial statements for the third quarter of the
fiscal year ended September 30, 2019, the percentage change from the same quarter of the previous fiscal year forthe third 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 third 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
Q3 FY2021
FY2020(Note) Equity capital Q3 FY2021

2.

Total equity

Equity ratio

Mil.YenMil.Yen

%

6,673
6,124

4,262
4,018

61.4
62.4

4,095 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

FY20216,500 76.1
589 30.1
587 36.9
368 26.1
91.22(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 Third Quarter of the Fiscal YearEnding September 2021 and Revision of Consolidated earnings Forecasts, published today (August 10, 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

Q3 FY2021
Q3 FY2021

29[3] Average number of shares during the term

Q3 FY2021

4,014,766

4,083,670

FY20203,948,370

FY2020Q3 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
6 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 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

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 …………………………………11(Notes regarding the going concern assumptions) …………………………………………………11(Notes regarding significant changes in shareholders’ equity) ……………………………………11(Segment Information) …………………………………………………………………………………11(Significant subsequent matter) ………………………………………………………………………11―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 third quarter of the fiscal year ending September 2021.
Financial results for the cumulative consolidated third quarter of the fiscal year ending September 2021 (October 1,
2020 to June 30, 2021) are as follows.
(Unit: Thousand Yen)
Nine Months Ended June 30, 2020 Nine Months Ended June 30, 2021
(October 1, 2019 to(October 1, 2020 toJune 30, 2020)

June 30, 2021)

Revenue

Difference(%)

2,834,885

4,837,219

70.6

Operating profit

416,469

466,636

12.0

Ordinary profit

400,084

467,782

16.9

238,834

311,637

30.5

Quarterly profit
attributable to owners ofparenta. Revenue
We recorded revenue of ¥4,837,219 thousand (up 70.6% year on year) due to strong sales of payment terminals
in addition to the expansion of the offline cashless payment market as a safe payment method despite the lingering
effect of COVID-19.
Initial revenue grew at a faster pace than projected in the management target as sales of stera terminals
launched in July 2020 continued to grow, and also there was a one-time increase in sales of payment terminals
associated with a large-scale international event during the three months ended June 30, 2021. Stock-model
revenue also showed steady growth with increases in the number of terminals in use and the number andamount of payments processed as a result of our efforts to develop new member merchants.
b. Operating profit
We recorded operating profit of ¥466,636 thousand (up 12.0% year on year). For the six months ended March 31,
2021, we posted a year-on-year decrease of 7.7% in operating profit due to an absence of a special factor of
profit related to the point reward project for cashless payment which was recorded a year earlier. However, in thecomparison of the three months ended June 30 alone, operating profit increased 2.1 times in 2021 from 2020 due
to a steady increase in profit during the three months ended June 30, 2021 while profit for the three months
ended June 30, 2020 was at a low level as it was largely affected by a nationwide state of emergency declared.
As a result, for the nine months ended June 30, 2021, operating profit increased year on year as planned.
c. Quarterly profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥311,637 thousand (up 30.5% year on year). We recorded
loss attributable to non-controlling shareholder of ¥31,671 thousand related to GMO DATA, Inc., our consolidated
subsidiary in which we hold a 51% stake, contributing to an increase in profit attributable to owners of parent.

―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 position(Assets)
As of June 30, 2021, current assets increased ¥424,304 thousand from September 30, 2020 to ¥5,448,388
thousand. This was mainly because cash and cash equivalents and trade accounts receivables increased ¥648,413
thousand and ¥200,779 thousand, respectively, despite a decrease of ¥331,248 thousand in merchandise. Noncurrent assets increased ¥124,777 thousand from September 30, 2020 to ¥1,225,558 thousand mainly due to anincrease in software of ¥204,959 thousand despite decreases in goodwill of ¥33,328 thousand and in customerrelated assets of ¥32,108 thousand due to amortization.
As a result, total assets increased ¥549,081 thousand from September 30, 2020 to ¥6,673,947 thousand.
(Liabilities)
As of June 30, 2021, current liabilities increased ¥321,627 thousand from September 30, 2020 to ¥2,368,388
thousand. This was mainly because advance received included in other current liabilities and deposits received
increased ¥235,539 thousand and ¥161,656 thousand, respectively, despite a decrease of ¥112,532 thousand inincome taxes payable. Non-current liabilities decreased ¥16,513 thousand from September 30, 2020 to ¥43,423
thousand mainly due to decreases in deferred tax liabilities of ¥9,831 thousand and in long-term lease obligations
included in other non-current liabilities of ¥6,182 thousand.
As a result, total liabilities increased ¥305,113 thousand from September 30, 2020 to ¥2,411,812 thousand.
(Net Assets)
As of June 30, 2021, total net assets increased ¥243,967 thousand from September 30, 2020 to ¥4,262,134
thousand. This was mainly because retained earnings increased ¥311,637 thousand due to recording of profit
attributable to owners of parent while retained earnings decreased ¥157,934 thousand due to distribution ofdividend from surplus.

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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.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
We revised the consolidated earnings forecasts for the year ending September 30, 2021 from those previously
released on May 12, 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 Groupis 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.
As described in “(1) Discussion of operating results, a. Revenue,” we posted revenue of ¥4,837 million for the ninemonths ended June 30, 2021, achieving 92.2% of the revenue forecast before revision of ¥5,249 million and largely
exceeding the amount prorated for the number of days from October 1, 2020 due to a growth in sales of stera
terminals and a steady increase in stock-model revenue. Accordingly, we carefully re-examined sales forecast for
payment terminals and the impact on stock-model revenue of the declaration of a state of emergency amid the
COVID-19 crisis for the three months ending September 30, 2021 and reviewed the earnings forecasts for the year
ending September 30, 2021; and as a result, we upwardly revised the revenue forecast to ¥6,500 million.
In terms of profit forecast for the year ending September 30, 2021, we decided to leave the original forecast
unchanged for the following reasons: in light of the fact that the upward revision of revenue during the nine months
ended June 30, 2021 and for the full-year forecasts was mainly attributable to a growth in sales of stera terminals
with a low gross margin ratio and that the government implemented quasi-emergency measures and declaredanother state of emergency in response to resurgence of COVID-19, we must make a careful assessment of thepayment trends among member merchants for the three month ending September 30, 2021; the growth of stockmodel revenue with a relatively high profit ratio may remain weak; we plan to incur recruiting cost to enhance ourmanagement structure as a growth investment for the next fiscal year and beyond; and we plan to return our
accomplishment to employees in the form of bonuses reflecting the business performance.

For more information, please see “Notice Concerning Revision of the Consolidated Earnings Forecasts for the YearEnding September 30, 2021” released today (August 10, 2021).

―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.

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 Q3 of current
consolidated fiscal year
(March 31, 2021)

Current assets
Cash and cash equivalents

2,946,028

3,594,441

Trade accounts receivables
Merchandise

313,409
1,431,692

514,188
1,100,444

334,732(1,777)

241,614

5,024,084

5,448,388

58,89851,907

AssetsOther financial assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Software△2,301

431,270

636,229

Software in progress
Customer-related assets

77,588171,243

96,236
139,135

Goodwill
Other intangible fixed assets

266,630
5,880

233,301
3,381

Total intangible fixed assets

952,613

1,108,285

Lease deposits
Bankruptcy rehabilitation claims

24,488251

23,856
1,085

Deferred tax assets
Other investments and other assets

61,2973,484

41,49018(251)△1,085Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―7―

89,26965,365

1,100,781

1,225,558

6,124,865

6,673,947

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 Q3 of current
consolidated fiscal year
(June 30, 2021)

499,574

492,057

158,334
1,064,278

45,802
1,225,935

95,30038,50048,32015,740Liabilities
Current liabilities
Accounts payable
Income taxes payable
Deposits received
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities

190,773

540,533

Total current liabilities

2,046,761

2,368,388

Deferred tax liabilities
Other non-current liabilities

52,434
7,501

42,603820

Total non-current liabilities

59,93643,4232,106,698

2,411,812

Shareholders’ equity
Capital stock

1,533,123

1,594,330

Capital surplus
Retained earnings

1,546,234
740,576

1,607,441
894,279

Non-current liabilities

Total liabilities
Net assets

Treasury stock
Total shareholders’ equity
Share options
Non-controlling interests
Total net assets
Total liabilities and net assets

―8―

－

△478

3,819,934

4,095,572

0
198,233－
166,562

4,018,167

4,262,134

6,124,865

6,673,947

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(Q3 cumulative)
Q3 FY2020(From October 1, 2019 toJune 30, 2020)
2,834,885(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020 toJune 30, 2021)
4,837,219

Cost of goods sold1,537,238

3,330,792

Gross profit

1,297,646

1,506,427

Selling, general and administrative expense

881,176

1,039,790

Operating profit

416,469

466,636

Interest income
Other non-operating income

101
75

60
1,209

Total non-operating income

177

1,270

Revenue

Non-operating income

Non-operating expenses
Interest expense

201

122

Stock listing-related expenses
Other non-operating expenses

16,3582－
2

Total non-operating expenses

16,563124

400,084

467,782

Office relocation expense
Loss on retirement of fixed assets

2,548

－
898

Total extraordinary loss

2,548

898

Profit before income taxes

397,536

466,883

Corporation income tax、resident tax, business tax

184,773

176,942

Ordinary profit
Extraordinary loss

Corporation income taxes deferred△6,451

9,974

Total corporation income taxes

178,321

186,917

Profit219,214279,966

Profit attributable to non-controlling shareholder△19,620△31,671

Profit attributable to owners of parent

238,834

311,637―9―

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(Q3 cumulative)
Q3 FY2020(From October 1, 2019 toJune 30, 2020)
219,214(Unit: Thousand yen)
Q3 FY2021(From October 1, 2020 toJune 30, 2021)
279,966

Comprehensive income

219,214279,966(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling shareholder

238,834

311,637(19,620)(31,671)

Profit―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.

(3) 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]
Q3 FY2020 (From October 1, 2019 to June 30, 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.
Q3 FY2021 (From October 1, 2020 to June 30, 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.

―11―