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

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Based on IFRS)
August 8, 2024
Company name:

Digital Garage, Inc.

Stock exchange listing: Tokyo
Securities code:
4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,
Kaoru Hayashi
President Executive Officer and Group CEO

Inquiries:

Corporate Officer Deputy Head of Corporate
Hiroyuki Nozaki
Div.

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–Yes

Holding of financial results meeting:

NoTEL

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Revenue

Profit before tax

Millions of yen

Three months ended June 30, 2024
Three months ended June 30, 2023%

12,436 (5.7)
13,187 (25.6)
Basic earnings
per share

Three months ended June 30, 2024
Three months ended June 30, 2023

Profit attributable toowners of parent

ProfitMillions of yen%

4,744 (23.2)
6,179 (44.8)

Millions of yen%

Millions of yen%

3,157 (21.8)
4,035 (45.8)

3,170 (22.6)
4,096 (45.3)

Equity attributable toowners of parent

Ratio of equity
attributable to ownersof parent to total assets

Comprehensive
incomeMillions of yen%

4,238 (11.8)
4,807 (36.8)

Diluted earnings
per share

Yen

Yen

67.04
88.97

66.31
80.77

(2) Consolidated financial position
Total assets

As of June 30, 2024
As of March 31, 2024

Total equity

Millions of yen

Millions of yen

Millions of yen%

241,089
231,431

94,065
92,13891,17889,25137.8
38.6

2. Cash dividends
Annual dividends per share
1st quarter-end
Year ended March 31, 2024
Year ending March 31, 2025

2nd quarter-end

3rd quarter-end

Fiscal year-end

TotalYen

Yen

Yen

Yen

Yen––

0.00

–

40.00

40.00

0.00

–

53.00

53.00

Year ending March 31, 2025(Forecast)(Note) Revision of dividend forecast from the latest announcement: None
Breakdown of year-end dividend for the fiscal year ending March 31, 2025 (forecast): Ordinary dividend:Special/commemorative dividend:

43.00 yen
10.00 yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
In the Platform Solution segment, which is the Group's revenue base, the Company expects stable growth in the payment business and forecasts
a 20% increase in the profit before tax compared to the previous fiscal year. The Company also forecasts a 20% to 25% increase in profit before
tax for the entire Platform Solution segment.
The Company does not disclose its consolidated financial results forecast, because it is difficult to reasonably estimate the fair value ofsecurities, which the Group holds through investments primarily in startup companies, at the end of the period.
1* Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

No(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:

No(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of June 30, 2024

47,621,300 shares As of March 31, 2024

47,619,100 shares

427,771 shares As of March 31, 2024

239,371 shares

Number of treasury shares at end of period
As of June 30, 2024

Average number of shares during period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

47,284,938 shares Three months ended June 30, 2023

46,042,642 shares(Note) Treasury shares include shares of the Company held in the exclusive trust for the Digital Garage Employee Stockholding Association.

* The summary of financial results is not subject to review by a certified public accountant or auditing firm.
* Explanation of the appropriate use of financial results forecasts and other special notes(Method of obtaining supplementary financial results materials)
Supplementary materials for financial results are available on the Company's website.

2Condensed quarterly consolidated financial statements
Condensed quarterly consolidated statement of financial position(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and cash equivalents

49,571

57,846

Trade and other receivables
Inventories

30,154428

24,432
437

Operational investment securities
Other financial assets

69,569279

71,190279

Income taxes receivable
Other current assets

1,204
890

1,384
1,185

152,094

156,752

Property, plant and equipment
Goodwill

14,9906,964

14,907
7,624

Intangible assets
Investment property

5,625
1,912

6,007
2,029Investments accounted for using equity method
Other financial assets

33,965
14,97435,89517,002

Deferred tax assets
Other non-current assets

509
397

512
362

Total non-current assets

79,337

84,337

231,431241,089

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of June 30, 2024

As of March 31, 2024
Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

55,70654,848Trade and other payables
Other financial liabilities

42,568
1,669

50,8601,710

Income taxes payable
Other current liabilities

365
4,092

395
3,624

Total current liabilities

104,401

111,436

Bonds and borrowings
Other financial liabilities

11,633
7,426

11,4397,069

Retirement benefit liability
Provisions

460
479

459
490

Deferred tax liabilities
Other non-current liabilities

14,312582

15,595536

Total non-current liabilities

34,89235,588139,293

147,024

Share capital
Capital surplus

7,846
5,385

7,849
5,439

Treasury shares
Other components of equity

(975)
1,613

(1,456)2,691

Retained earnings

75,38276,656

Total equity attributable to owners of parent

89,251

91,178Non-controlling interests

2,887

2,887

Total equity

92,13894,065

231,431241,089

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income and condensed quarterly consolidated
statements of comprehensive income
Condensed quarterly consolidated statements of income(Millions of yen)Three months ended

Three months ended
June 30, 2023

June 30, 2024

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,336
4,583

6,714
3,713

Other income
Finance income

423
972

283
384

Share of profit of investments accounted for using equity
method873

1,341

13,187

12,436

2,683
4,167

2,895
4,638

85
72

84
74

7,008

7,691

Total
Expenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs
Total
Profit before tax

6,179

4,744

Income tax expense

2,144

1,587

Profit

4,035

3,157

4,096
(61)

3,170
(13)

88.97
80.77

67.04
66.31

Profit (loss) attributable toOwners of parent
Non-controlling interests
Earnings per share
Basic earnings per share
Diluted earnings per share5Condensed quarterly consolidated statements of comprehensive income(Millions of yen)Three months ended

Three months ended
June 30, 2023
ProfitJune 30, 2024
4,035

3,157

298

279

6

7

467

794

1

1772

1,082

4,807

4,238

4,864

4,246(56)(8)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable toOwners of parent
Non-controlling interests6Condensed quarterly consolidated statement of changes in equity
Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Sharecapital

Balance at April 1, 2023

Capitalsurplus

7,830

Treasuryshares6,229

Financial assets

Exchangemeasured at fairdifferenceson

Remeasurements

benefit planscomprehensive

translationof foreign

incomeoperations

value throughother(6,293)

Profit (loss)
Other comprehensive income
Comprehensive income––

Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions
Purchase of treasury shares
Transfer from other components

–

Total

2,111

305

463

305

463

8

1,650
–
767

–

767

(3)

–

33–
–

(4)

(1,001)–(15)of equity to retained earnings
Balance at June 30, 2023

(469)

Totalof defined(15)–26(1,001)(15)––(15)

7,830

6,255

(7,294)

(180)

2,574

8

2,402

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2023
Profit (loss)

70,614
4,096

subsidiaries
Dividends

4,096(1,705)

Share-based payment transactions
Purchase of treasury shares
Transfer from other componentsof equity to retained earnings
Total
Balance at June 30, 2023

15

Totalinterests

Total

Other comprehensive income
Comprehensive income
Changes in ownership interest in

Non-controlling80,030
4,096

1,942
(61)

81,972
4,035

767

5772

4,864

(56)

4,807

(3)

453

450

(1,705)(1,705)33(1,005)

33(1,005)––(1,690)(2,680)453(2,226)73,02082,2132,340

84,5537

Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured at fairvalue throughothercomprehensive
incomeBalance at April 1, 2024
Profit (loss)

Remeasurementsontranslation

5,385(975)(1,124)
286

790

–
3–
3–

286

790

Total

of defined
benefit plansof foreign
operations

7,846

Other comprehensive income
Comprehensive income
Issuance of new shares

Exchangedifferences

2,737

(0)

1,613
––

1,076
–

1,076

Changes in ownership interest in
subsidiaries–

Dividends
Share-based payment transactions

52

Purchase of treasury shares
Disposal of treasury shares(1)––(500)19––

Transfer from other componentsof equity to retained earnings
Total
Balance at June 30, 2024

11354(481)1––

1

7,849

5,439

(1,456)

(836)

3,527

(0)

2,691

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2024

Non-controllinginterests

Total

Total

75,382

89,251

2,887

92,138

Profit (loss)
Other comprehensive income

3,170

3,170
1,076(13)
5

3,157
1,082

Comprehensive income

3,170

4,246(8)4,238Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

6–

88(1,895)(1,895)

Share-based payment transactions
Purchase of treasury shares

52(500)52(500)Disposal of treasury shares
Transfer from other components

1818––of equity to retained earnings
Total
Balance at June 30, 2024

(1,895)6(1)(1,896)(2,319)8(2,311)76,656

91,1782,887

94,0658

Condensed quarterly consolidated statements of cash flows(Millions of yen)Three months ended

Three months ended
June 30, 2023

June 30, 2024

Cash flows from operating activities
Profit before tax
Depreciation and amortization

6,179
930

4,744
983

Interest and dividend income
Interest expenses on borrowings and bonds(23)
68(27)
73Share of loss (profit) of investments accounted for using
equity method(873)(1,341)

Loss (gain) on investment securities
Loss (gain) on sales of shares of subsidiaries and associates

(376)
(1)

(312)
–

2,537
(4,526)

5,634(1,373)

Decrease (increase) in inventories
Increase (decrease) in trade and other payables

(79)
367

(8)
8,120

Increase (decrease) in accrued consumption taxes
Other41
(897)

(126)
(620)

Subtotal

3,347

15,745

728
(26)

865
(69)

Income taxes refund (paid)(1,264)(348)

Net cash provided by (used in) operating activities

2,785

16,193Purchase of property, plant and equipment
Purchase of intangible assets(68)(2,413)

(133)
(793)

Proceeds from sale of intangible assets
Purchase of investment securities

1,933
(141)

–(986)

71
793

1––

(1,503)58––(642)

Decrease (increase) in trade and other receivables
Decrease (increase) in investment securities for saleInterest and dividends received
Interest paid

Cash flows from investing activities

Proceeds from sale of investment securities
Proceeds from dividend of investment partnershipPurchase of investments accounted for using equity method
Proceeds from sale of investments accounted for using equity
methodPayments for acquisition of businesses
Other(2)(70)

Net cash provided by (used in) investing activities

232(4,125)9

(Millions of yen)Three months ended

Three months ended
June 30, 2023

June 30, 2024

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

4,430–(600)
500

Repayments of long-term borrowings
Repayments of lease liabilities

(838)
(430)

(1,038)(438)

Capital contribution from non-controlling interests
Purchase of treasury shares

450(1,006)

8(500)

Proceeds from disposition of treasury shares
Dividends paid–(1,687)

18(1,877)

Other(3)2

Net cash provided by (used in) financing activities

916(3,924)57

131

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

3,991

8,275

Cash and cash equivalents at beginning of period

53,33549,571

Cash and cash equivalents

57,32557,846

10