Summary of Consolidated Financial Statements for the Second Quarter FY2022 (IFRS)
May 12, 2022
Exchange: Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:
Scheduled submission date of quarterly
reportRyu Muramatsu

Director, Executive Vice President
Scheduled date of commencementfor dividend payment

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial results

Yes

URL: https://www.gmo-pg.com/en/corp/

May 13, 2022

Tel: +81-3-3464-0182-(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

１．Consolidated Financial Statements for the Second Quarter, FY2022(From October 1, 2021 to March 31, 2022)(1) Consolidated Financial Statements (Cumulative))
OperatingprofitRevenue％

Mil Yen％

Mil Yen

8,276 25.5
6,593 40.6

Basic earnings per
share
Q2 FY2022
Q2 FY2021

Profit before
income taxes％

Mil Yen24,059 21.0
19,888 28.4

Q2 FY2022
Q2 FY2021(Percentages represent year-on-year % change)

8,691 30.9
6,638 26.5

Profit attributableTotal
to owners of comprehensive
parentincomeQuarterly
Profit％Mil Yen％ Mil Yen％

5,615 32.0
4,253 23.1

5,518
4,169

32.4 12,324
22.3 4,649

165.1
29.9

Mil Yen

Diluted earnings per
share

Yen

Yen

72.77
56.37

72.10
55.07

(2) Consolidated Financial Position
Total assets
Q2 FY2022
FY2021

2.

Total equity
Ratio of total equity
attributable to owners attributable to owners ofof parent
parent to total assets

Total equity

Mil Yen

Mil Yen

Mil Yen%252,257
215,455

65,61357,82063,60655,84525.2
25.9

Dividends
Annual dividend
End of Q1
FY2021
FY2022
FY2022 (forecast)End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00

59.00

59.00

0.00

66.00

66.00

Revision to the most recently released dividend forecast: ： No

(Note)

3.

End of Q2

Consolidated Financial Forecast for the Fiscal Year Ending September 2022
(From October 1, 2021 to September 30, 2022)(% represents year-on-year change)

Profit before
Operating profit
income taxes

Revenue
Mil Yen

Full Year
(Note )%

50,000 20.0

Mil Yen%

16,234 25.0

Mil Yen%

31,538 137.4

Revision of the most recently released financial forecast:

―1―

No

Profit attributable to Basic earnings
owners of parent
per share

Profit%Mil Yen%Yen

21,048 134.3

Mil Yen

20,860136.5

275.04

Notices:(1)

Changes of important subsidiaries during the period (change of specific subsidiaries that leads to a change in thescope of consolidation): No
Number of new subsidiaries: - (Name:); Number of excluded subsidiaries: - (Name:)(2)

Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by IFRS.: No[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No(3)

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

Q2 FY2022: 76,557,545

FY 2021:76,557,545

Q2 FY2022: 714,996
Q2 FY2022: 75,842,549

FY 2021: 714,996
Q2 FY2021: 73,968,193(Note 1) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan trust and J-ESOP (709,705 shares for FY2021; 709,705 shares for Q2
FY2022.)* These quarterly financial statements are not subject to the quarterly review procedures.
* Notes regarding the appropriate use of financial forecast and other important notes
1. The above forecasts are outlooks based on information currently available and include various uncertain factors.
Actual performance may differ substantially from the forecasts due to changes in business conditions and otherfactors. For the assumption on which financial forecasts are based and matters to be considered in using financial
forecasts, please refer to “(3) Review of consolidated earnings forecasts and other forecasts” under “1. Qualitative
Information on Consolidated Financial Statements for the Quarter” on page 10 of the attachment.
2 Results Presentation for Investors and Analysts to be held on May 13, 2022. Supporting materials and a video of thepresentation will be made available on the company's website after the event.

―2―

Table of contents of attachments
１．Qualitative Information on Consolidated Financial Statements for the Quarter……………..………...................

4（１）Consolidated operating results…………………………………………………………………………………….

4（２）Status of consolidated financial position……………………………………………………………………….…

8（３）Review of consolidated earnings forecasts and other forecasts…………………………………………...….. 10
2．Condensed Consolidated Financial Statements and Major Notes..………………………………………………..... 11（１）Condensed consolidated balance sheet …………………………………………………………………………

11（２）Condensed consolidated statement of income and statement of comprehensive income …………………

13（３）Condensed consolidated statement of changes in equity ……………………………………………...……… 15（４）Condensed consolidated statement of cash flows ……………………………………………………...………

16（５）Notes regarding the going concern assumptions………………………………………………………………..

18（６）Notes regarding the consolidated financial statement…………………………………………………………..

18➀ Cash and cash equivalents…………………………………………………………………………………….

18② Operating and other receivables………………………………………………………………………………

18③ Deposits to subsidiaries and affiliates………………………………………………………………………...

18

―3―

1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Consolidated operating results
Forward-looking statements in the document are based on the judgement of the Group at the end of the quarter underreview.
①

Consolidated operating results
The Group announces its earnings results for the cumulative second quarter of the consolidated fiscal year 2022
(October 1, 2021 to March 31, 2022) as follows.
(Unit: Thousand yen)
Q2 FY2021(From October 1, 2020
to March 31, 2021

Q2 FY2022(From October 1, 2021
to March 31, 2022

Rate of change (%)

Revenue

19,888,324

24,059,689

21.0

Operating profit

6,593,129

8,276,188

25.5

Profit before income taxes

6,638,149

8,691,427

30.9

4,169,621

5,518,861

32.4

Profit attributable to owners ofparenta. Revenue

The Group’s revenue reached to ¥24,059 mil, up by 21.0% Year-on-Year (YoY). The Payment Processing
Business revenue grew, led by steady growth of E-Commerce (EC) market for online billing and recurring billing
coupled with the expansion of the Group’s services to the offline domain. The Money Service Business (MSB)
revenue increased from growth of GMO Payment After Delivery transactions (a Buy Now Pay Later or BNPL
service), Early Payment Service, and Lending service to overseas FinTech operators. For the second quarter
under review, the transaction volume including GMO Payment After Delivery increased by 36.5% YoY, transaction
value increased by 38.8% YoY, Payment Processing Business revenue was ¥17,951 mil (up 24.2% YoY), Money
Service Business (MSB) revenue was ¥5,669 mil (up 11.3% YoY) and Payment Enhancement Business revenue
was ¥457 mil (up 32.9% YoY). For details, please refer to page 5 of “② Results by segment” found under “(1)Consolidated operating results” of “1. Qualitative Information on Consolidated Financial Statements for the
Quarter”.
Revenue breakdown by business model is as follows.
(Unit: Thousand Yen)
Business model

Q2 FY2021(From October 1, 2020
to March 31, 2021

Q2 FY2022(From October 1, 2021
to March 31, 2022

Rate of change(%)

Initial(Initial revenue)

2,008,236

3,163,554

57.5

Stock
(Fixed revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring service
revenue)

3,133,056

3,799,000

21.3

5,273,118

6,428,423

21.9

9,473,912

10,668,709

12.6

Total

19,888,324

24,059,689

21.0

―4―

b. Operating profit
Operating profit reached ¥8,276 mil, up by 25.5% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2022.
By segment, Payment Processing Business segment profit (operating profit) was ¥8,803 mil, up 22.0% YoY;
Money Service Business segment profit (operating profit) stood at ¥1,448 mil, up 24.8% YoY; Payment
Enhancement Business segment profit (operating operating) of ¥100 mil (up 72.2% YoY).
For details please refer to page 5 of “② Results by segment” of the “(1) Consolidated operating results” of “1.
Qualitative Information on Consolidated Financial Statements for the Quarter”.
c. Profit before income taxes
Pre-tax profit reached ¥8,691 mil, up 30.9% YoY. The reason the pre-tax profit growth rate of 30.9% YoY is higher
than the operating profit growth rate of 25.5% YoY is due to gains on foreign exchange of ¥255 mil and gains on
investment partnerships of ¥247 mil that increased the financial income to ¥551 mil.
② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)Segment

Q2 FY2021(From October 1, 2020
to March 31, 2021

Q2 FY2022(From October 1, 2021
to March 31, 2022

Rate of change(%)

Payment Processing Business
Revenue
Operating profit

14,456,455
7,215,660

17,951,542
8,803,046

24.2
22.0

Money Service Business
Revenue
Operating profit

5,092,720
1,160,380

5,669,128
1,448,543

11.3
24.8

343,968
58,342457,042
100,489

32.9
72.2

Adjustments
Revenue
Operating profit (△=loss)△4,820△1,841,253△18,023△2,075,891

－
－

Total
Revenue
Operating profit

19,888,324
6,593,129

24,059,689
8,276,188

21.0
25.5

Payment Enhancement Business
Revenue
Operating profit―5―

a. Payment Processing Business
The main focus areas of the Payment Processing Business are payment processing services for online billing,recurring billing, and offline payments, as well as expanding support services to financial institutions and financial
service providers. In the online billing and recurring billing domain, we focused our efforts to acquire large andmedium-to-small sized merchants across various industries as well as expand our services to non-EC merchants,
given the backdrop of the steadily expanding EC market.
The impact from the COVID-19 contagion was limited during the second quarter under review as was the case in
the previous fiscal year. In the online billing and recurring billing domain, micropayments increased from the rising
adoption of cashless payment and E-commerce (EC) usage, and online payments increased in areas such as
digital content, public utilities and taxes as internet usage takes root on the back of continued nesting demand.
In the offline domain during the second quarter under review, segment revenues grew thanks to increased initial
revenues and transaction volume and value, due to favorable payment terminal sales driven by the expansion ofoffline cashless payment market from consumers refraining from handling physical cash as a safer means of
payment, although some merchants, particularly in the restaurant sector, were adversely affected by shorter
operating hours from the imposition of Priority Measures for Contagion Prevention. Additionally, segment revenue
was also boosted by continued strong sales of stera terminals, the next generation payment platform. Furthermore,
steady progress was made in project orders related to the Unattended Market such as ticket machines and fareadjustment machines, which is one of the target markets.
As a result, segment revenue was ¥17,951 mil, up 24.2% YoY and segment profit (operating profit) was ¥8,803
mil up 22.0% YoY.
b. Money Service Business
Money Service Business (MSB) consists of Early Payment Service to help merchants improve their cash flow byreceiving sales proceeds earlier according to the merchant’s cash cycle needs; Transaction Lending Service, aloan service for merchants to lend growth capital based on payment and other related data; Lending Service tooverseas FinTech operators; Remittance Service; Instant Salary byGMO, a salary prepayment service, and GMO
Payment After Delivery provided by a consolidated subsidiary GMO Payment Service, Inc.
In this second quarter under review, segment revenue and profit increased from the contribution of strong Early
Payment Service driven by the growth in Payment Processing Business segment, as well as from Lending service
to overseas FinTech operators that made progress in securing new potential customers to generate stablerevenues going forward. However, growth rate of GMO Payment After Delivery decelerated despite growth intransactions, due to hard comps against the strong nesting demand last year. Similarly, Remittance service
revenue growth rate decelerated despite the growth in transactions, due to hard comps against last year’s COVID19-driven ticket refund demand.
As a result, segment revenue reached ¥5,669 mil, up 11.3% YoY and segment profit (operating profit) reached¥1,448 mil, up 24.8% YoY.

―6―

c. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service which provides analytics andadvertisement management service based on transactional trends to support our merchants’ revenue growth,and “Medical Kakumei byGMO,” a reservation management system to enable operational efficiency at thereception counters, offered exclusively to medical institutions by our consolidated subsidiary GMO Medical
Reservations Technology Co. Ltd.
GMO Medical Reservations Technology Co. Ltd. offers a smartphone-based app to make reservations, fill in
medical questionnaires, complete the reception and payment, in addition to consolidating multiple patientregistration cards on a smartphone for multiple medical institutions that implement this service. In the second
quarter under review, this service’ revenue increased 96.7% YoY from the heightened demand due to COVID-19.
In addition, revenues from online advertising service and SSL coupons also grew, contributing to the segment’s
revenue growth.
As a result of the above, segment revenue was ¥457 mil, up 32.9% YoY and segment profit (operating profit) was¥100 mil, up 72.2% YoY.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)
Payment processing service(Offline)

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Financial Gate, Inc. (consolidated subsidiary)
GMO Payment Service, Inc.

GMO Payment After Delivery

Remittance service
Money Service
Business

Transaction lending
Overseas Lending

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Early Payment service
Payment(consolidated subsidiary)

Online Advertising

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Enhancement
Medical Kakumei byGMO
Business―7―

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)(2) Status of consolidated financial position①

Assets, liabilities and equity
a. Assets
Total assets at the end of the consolidated second quarter under review increased by ¥36,801 mil from the endof the previous fiscal year end to reach ¥252,257 mil. This is mainly due to the increase in cash and cash
equivalents by ¥6,682 mil, advances paid by ¥3,953 mil, accrued revenues by ¥3,059 mil, deposits to subsidiaries
and affiliates by ¥14,500 mil. and equity method investment gains by ¥7,396 mil.
The Group has ¥5,100 mil deposits to subsidiaries and affiliated companies included in the balance of cash andcash equivalents at the end of the consolidated second quarter under review, as stated in ➀ Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥16,500 milof deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, the totalbalance of the deposits to subsidiaries and affiliated companies stands at ¥21,600 mil. These deposits are GMO
Internet’s Group-wide cash on hand that is deposited under the cash management system (CMS) implemented
and managed by GMO Internet. This allows the Group to withdraw necessary funds without the need to wait until
the preset CMS repayment date, by registering a request after taking into account the number of days requiredfor processing the application.

b. Liabilities
Balance of liabilities at the end of the consolidated second quarter under review stood at ¥186,643 mil, an increaseof ¥29,008 mil from the end of the previous consolidated fiscal year, mainly due to an increase in accrued
expenses of ¥2,091 mil, an increase in deposits received of ¥20,433 mil, and an increase in borrowings of ¥4,341
mil. and deferred tax liabilities of ¥1,337 mil.

c. Equity
Equity balance at the end of the consolidated second quarter under review was ¥65,613 mil, an increase of ¥7,793
mil from the end of the previous consolidated fiscal year. This was mainly due to the increase from recording thequarterly profit of ¥5,615 mil and the recognition of other comprehensive income of ¥6,709 mil due mainly fromfair value measurements of financial instruments held by associates accounted by equity method, which waspartially offset by the decline in retained earnings of ¥4,474 mil from dividend payouts.

②

Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated second quarter under review increased by¥6,682 mil versus the balance at the start of the term, to reach ¥111,206 mil. The state of cash flow over thesecond quarter under review is discussed below.
a. Cash flow from operating activities
Net funds provided by operating activities during the consolidated second quarter under review amounted to¥19,682 mil, which compares to ¥2,113 mil in net funds used in the same period of the previous year. This resulted
from cash outflows from (i) an increase in advances paid of ¥3,953 mil, (ii) an increase in accrued revenues of¥3,639 mil, (iii) incomes tax payments of ¥2,942 mil, which was offset by cash inflows of (i) profit before tax of¥8,691 mil, (ii) increase in accrued expenses of ¥2,153 mil, and (iii) increase in deposits received of ¥20,430 mil.
b. Cash flow from investing activities
Net funds used by investing activities during the consolidated second quarter under review totaled ¥12,867 mil,which compares to a net funds provided of ¥3,422 mil in the same period of the previous year. This is due to cash
inflows from proceeds from sale of investment securities of ¥3,519 mil which was offset by cash outflows frompayment into deposits to subsidiaries and affiliated companies of ¥16,500 mil.

―8―

c. Cash flow from financing activities
Net funds used by financing activities over the consolidated second quarter under review was ¥516 mil, which
compares to net funds used of ¥6,467 mil in the same period of the previous year. This is due to cash inflows
from the net increase in short term borrowings of ¥4,500 mil which was offset by net outflows from dividend
payouts of ¥4,471 mil.

―9―

(3) Review of consolidated earnings forecasts and other forecasts
The Group’s core business is positioned within the E-commerce (EC) market in Japan, and Japan’s B2C EC market
for consumer merchandizing continues to grow very rapidly, helped by favorable externalities such as increased
functionality and usage of smartphones and logistic/distribution industry reforms. In addition, online migration continues
to progress solidly for payments related to daily life such as non-merchandise services, public utilities, taxes and publicdues and medical expenses, as online consumption takes roots under the ‘new normal’ lifestyles brought about by
COVID-19. The broader EC market, which is our addressable market, is also expanding from the widening scope ofEC market driven by the online migration of B2B and C2C transactions. The consolidated subsidiary GMO Financial
Gate, Inc., which addresses the offline market, is contributing to expand the Group’s scope of business by capturingbusiness opportunities emerging from the acceleration of cashless adoption of various payment methods, including
credit cards, in the offline domain.
The business environment for the fiscal year ending September 2022 faces continued uncertainty over private
consumption, caused by unfavorable externalities such as the weakening yen and surging energy costs, in addition to
global instability such as the Ukrainian situation, although vaccination rates for COVID-19 continues to progress andmovement/travel restrictions are being eased. Despite this, GMO-PG group’s business is characterized by its resiliency
to macro-economic fluctuations due to its diverse exposure to merchants across various industries and the favorable
trends of cashless and online migration of payments. Hence, the impact to the Group’s revenues is believed to beminimal as of this writing. Revenue expansion is expected in all reportable segments from pursuing the priority
initiatives of acquiring large and high-growth merchants, deepening penetration into financial institutions, winningorders for large projects, rolling out of DX platforms and, the next generation payment platform stera.
Note that the Company has resolved at the Board meeting held on April 18, 2022, to transfer all of the shares of its
equity method affiliate 2C2P Pte. Ltd. owned by the consolidated subsidiary GMO-Z.COM PAYMENT GATEWAY PTE.
LTD. Due to the transfer of shares, the fiscal year ending September 2022 is estimated to record a gain on sales fromthe transfer of shares of an equity method affiliate of ¥16.0bn. As disclosed in the “Notice Regarding Change in Equity
Method Affiliate, Gain on Sale from Transfer of Share, and Revision to Financial Earnings Forecast” released on April
18, 2022, the financial earnings forecast for the fiscal year ending September 2022 that was initially disclosed on
November 11, 2021, have been revised. Details of the guidance revision is as shown below. Furthermore, a partial
amount of the transfer price will be held in an escrow account, and a gain on sale, etc. of ¥1.0bn is likely to berecognized by the fiscal year ending September 2024 if stipulated conditions are satisfied. Note that the transfer price,
etc. are estimates as of this writing and the actual amount may vary. The foreign exchange assumed is 1USD=122.41
JPY (as of March 31, 2022). The transfer of shares will be completed once all the preconditions and terms are fulfilled(estimated timing of closure is June 2022).
ProfitRevenue

Operating

Profit Before

ProfitIncome Taxes

ProfitAttributable to
Owners of
ParentMil Yen

Mil Yen

Mil Yen

Mil Yen

Mil Yen

Basic
Earnings Per
Share
Yen

Previous Forecast (A)50,000

16,234

15,53810,0489,860

130.01

Revised Forecast (B)50,000

16,234

31,53821,04820,860275.04

Change (B – A)--

16,00011,00011,000Change (%)

-

-

103.0

109.5

111.6

41,667

12,987

13,285

8,982

8,818

(Reference)Previous Year (FY2021)―10―

117.98

2. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet

Notes

End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

AssetsCurrent assets
Cash and cash equivalents①

104,523,965

111,206,855

Operating and other receivables②

10,308,474

13,769,339

Advances paid

45,321,043

49,274,439

Accrued revenue

24,893,665

27,952,849

Inventories

1,664,548

2,532,224

2,000,000

16,500,000

Other financial assets

455,403486,327

Other current assets

335,983

586,320

Total current assets

189,503,084

222,308,355

Property, plant and equipment

3,948,522

3,736,153

Goodwill and other intangible assets
Investments accounted for using equity
methodOperating and other receivables

5,521,782

5,944,502

4,593,784

11,990,584

4,231,100

2,026,700

Other financial assets

6,005,805

5,109,043

Deferred Tax Assets

1,529,043

1,046,788

Deposits to subsidiaries and affiliates③

Non-current assets②

Other non-current assets

122,769

95,083

Total non-current assets

25,952,808

29,948,855

215,455,892

252,257,211

Total assets―11―NotesEnd of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

5,230,945

5,700,525

Accrued expenses

20,537,297

22,628,876

Deposits received

84,593,904

105,027,109

Borrowings

15,138,420

19,500,000

Other financial liabilities

621,363

616,386

Income taxes payable, etc.

2,602,652

3,483,819

Provisions

327,157

323,932

Other current liabilities

3,662,794

3,403,002

Total current liabilities

132,714,534

160,683,651

19,593,627

19,636,015

Non-current liabilities
Corporate bonds
Borrowings

20,095－2,889,479

2,593,663

Provisions

130,180130,348

Deferred tax liabilities

78,1481,415,475

Other financial liabilities

Other non-current liabilities

2,209,447

2,184,434

Total non-current liabilities

24,920,978

25,959,937

157,635,512

186,643,589

Capital stock

13,323,135

13,323,135

Capital surplus

15,191,927

15,199,837

Retained earnings

26,546,151

28,608,203

Treasury stock△1,152,444△1,153,163

Total liabilities
EquityOther items of equity
Total equity attributable toowners of parent
Non-controlling interests

1,937,175

7,628,287

55,845,946

63,606,300

1,974,433

2,007,321

Total equity

57,820,379

65,613,622

215,455,892

252,257,211

Total liabilities and equity―12―(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q2 FY2021(From October 1, 2020
to March 31, 2021)

Revenue(Unit: Thousand yen)
Q2 FY2022(From October 1, 2021
to March 31, 2022)

19,888,324

24,059,689

4,138,549

4,582,358

Cost of revenue△5,987,189△7,706,016

Gross profit

13,901,135

16,353,672

109,412

122,895△7,395,218△8,184,360△22,200△16,019

6,593,129

8,276,188(of which, interest income※)

Other income
Selling, general and administrative
expenses
Other expense
Operating profit
Financial income

211,693551,127

Financial expense△105,582△112,382

Equity method investment gains or loss

△61,091△23,506

Profit before income taxes

6,638,149

8,691,427△2,384,337△3,076,122

4,253,812

5,615,305

4,169,621

5,518,861

84,19096,443

4,253,812

5,615,305

Basic earnings per share

56.37

72.77

Diluted earnings per share

55.07

72.10

Income tax expenses
Quarterly profit
Profit attributable to
Owners of parent
Non-controlling interests
Quarterly Profit
Earnings per share (Yen/share)（※）The figure present the interest income calculated using the effective interest method as per IFRS 9 Financial
Instruments.

―13―

Condensed consolidated statement of comprehensive income

Notes

Q2 FY2021(From October 1, 2020
to March 31, 2021)

ProfitOther comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Shares of other comprehensive incomeof equity method affiliates
Total of Items that will not be reclassified
to profit or loss
Items that will be reclassified to profit orloss
Exchange differences on translation offoreign operations
Shares of other comprehensive incomeof equity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand yen)
Q2 FY2022(From October 1, 2021
to March 31, 2022)

4,253,812

5,615,305△212,861

996,386

409,060

4,876,769

196,199

5,873,155

237,907785,602△38,332

50,258

199,575

835,860

395,774

6,709,016

4,649,586

12,324,321

4,565,363

12,228,272

84,223

96,0484,649,586

12,324,321

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―14―

(3) Condensed consolidated statement of changes in equity
Second quarter of the previous consolidated fiscal year (From October 1, 2020 to March 31, 2021)(Unit: Thousand yen)
Total equity
Other
NonCapital Capital Retained Treasury
attributable
Total
Notes
items ofcontrollingstock
surplus earnings
stock
to owners
Equityequityinterestsof parent
Balance as of October 1,
4,712,900 5,675,561 20,725,465 △1,149,341 1,769,560
31,734,145 1,719,369 33,453,515
2020
4,169,621
4,169,621
84,190 4,253,812－－－－
Quarterly Profit
Other
comprehensive
395,741
395,74133
395,774－－－－
incomeQuarterly comprehensive
4,169,621
395,741
4,565,363
84,223 4,649,586－－－
incomePurchase of treasury－－－△2,454－△2,454－△2,454stock－－ △3,826,483－－ △3,826,483－ △3,826,483
Dividends
Dividends paid to non－
－
－
－
－
－
△63,671△63,671
controlling interests
Conversion of convertible
4,734,347 4,667,934
9,402,282－－－－ 9,402,282
bond-type bonds withstock acquisition rights
Transfer from other items
348,146－－－ △348,146－－－
of equity to retained
earnings
Share-based payment
51,67051,642
51,642－－－△28－
transaction
Changes in the interest in
129,142
108,071－ △21,071－－－△21,071
controlled subsidiary
Change in associates’’12,054
12,054
12,054－－－－－interest
incontrolledsubsidiary
Total transactions with
4,734,347 4,710,588 △3,478,337
5,615,970
65,471 5,681,441△2,454 △348,174
ownersBalance as of March 31,
9,447,247 10,386,149 21,416,750 △1,151,796 1,817,126
41,915,478 1,869,064 43,784,543
2021

Second quarter of the current consolidated fiscal year (From October 1, 2021 to March 31, 2022)

Notes
Balance as of October 1,
2021
Quarterly Profit
Other comprehensive
incomeQuarterly comprehensive
incomeDividends
Dividends paid to noncontrolling interests
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Other Increase/Decrease
Totaltransactions withownersBalance as of March 31,
2022

Capitalstock

CapitalsurplusRetained Treasury
earnings
stock

13,323,135 15,191,927 26,546,151 △1,152,444(Unit: Thousand yen)
Total equity
Other
Nonattributable
Total
items ofcontrollingto owners
Equityequityinterestsof parent
1,937,175

55,845,946

1,974,433 57,820,379－－

5,518,861－－

5,518,861

96,443

5,615,305

－

－

－

－

6,709,410

6,709,410△394

6,709,016－－

5,518,861－

6,709,410

12,228,272

96,048 12,324,321－－ △4,474,710－－ △4,474,710－ △4,474,710

－

－

－

－

－

－

△89,232△89,232－－

1,017,899－ △1,017,899

－

－

－

－

57,013－－△399

56,614－56,614－△49,103－－－△49,103

26,072△23,030

－

－

－

△718

－

△718

－

△718

－

7,909 △3,456,810△718 △1,018,299 △4,467,918

13,323,135 15,199,837 28,608,203 △1,153,163―15―

7,628,287

63,606,300△63,160 △4,531,078
2,007,321 65,613,622

(4) Condensed consolidated statement of cash flows

Notes(Unit: Thousand yen)
Q2 FY2022(From October 1, 2021
to March 31, 2022)

Q2 FY2021(From October 1, 2020
to March 31, 2021)

Net cash provided by (used in) operating
activities
Profit before income taxes
Depreciation & Amortization
Financial income and expense
Equity method investment gain/loss(△=increase)
Increase/decrease in inventories(△=increase)
Increase/decrease in operating andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
Accrued revenues (△=increase)
In/Decrease in operating payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current liabilities(△=decrease)Other

6,638,149

8,691,427

903,384

1,021,694△106,111△438,745

61,091

23,506△422,334△867,676△1,624,043△844,580△11,517,702△3,953,395△556,097△3,639,455

570,370

468,559

157,424

2,153,681

6,290,468

20,430,508

180,918△291,264

135,729△153,511

Subtotal

711,248

22,600,748

Interest and dividends received

12,602

68,496△69,248△44,319

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Purchase of property, plants andequipment
Purchase of intangible assets△2,768,352△2,942,677△2,113,749

19,682,247△46,140△156,798△732,084△1,148,108

Purchase of investment securities
Proceeds from sale of investment
securities
Purchase of investments accounted
for using equity method
Proceeds from redemption of
investments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from w/drawal of deposits
to subsidiaries and affiliates
Purchase of other financial assets
Proceeds from sales of otherfinancial assets
OthersNet cash provided by (used in)investing activities△54,132△168,864

489,9223,519,837－△500,000

46,842

256,352△2,000,000△16,500,000

5,000,000

2,000,000△63△30,662

700,164

7,533

18,037△146,348

3,422,545△12,867,059

Interest paid

―16―

NotesQ2 FY2021(From October 1, 2020
to March 31, 2021)

Net cash provided by (used in) financing
activities
In/Decrease in short-term borrowings(△=decrease)
Repayment of long-term borrowings
Dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
Other
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period(Unit: Thousand yen)
Q2 FY2022(From October 1, 2021
to March 31, 2022)△2,000,000

4,500,000△400,200△158,515△3,821,736△4,471,376△63,671△89,232

122,41325,080△304,304△322,420△6,467,498△516,463

56,162

384,165△5,102,540

6,682,890①

95,830,807

104,523,965①

90,728,267

111,206,855―17―

(5) Notes regarding the going concern assumptions
N/A(6) Notes regarding condensed consolidated financial statements①

Cash and cash equivalents
Breakdown of cash and cash equivalents are as follows.
End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

Cash and cash equivalents

81,593,965

106,106,855

Deposits toand affiliates

22,930,000

5,100,000

104,523,965

111,206,855

subsidiaries

Total
②

Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2022)

Trade and other receivables

5,740,246

6,466,949

Operating loans

8,846,384

9,356,879

92,408131,095△139,464△158,884

Total

14,539,574

15,796,039

Current assets

10,308,474

13,769,339

Non-current assets

4,231,100

2,026,700

14,539,574

15,796,039

Other
Allowanceaccounts

fordoubtful

Total③

Deposits to subsidiaries and affiliates
Our deposits to subsidiaries and affiliates are the deposits under the CMS (cash management
system) of GMO Internet Group.

―18―