Summary of Consolidated Financial Statements for the First Quarter FY2021 (IFRS)
February 10, 2021
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President & Chief Executive Officer

Contact:

Ryu Muramatsu

Director, Executive Vice President

Tel: +81-3-3464-0182

Scheduled submission date of quarterly
reportFebruary 12, 2021

Scheduled date of commencement for
dividend payment-

Supplemental materials prepared forfinancial results

Yes

Information meeting arranged related tofinancial results

Yes

URL: https://www.gmo-pg.com/en/corp/(for institutional investors and analysts)(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the First Quarter, FY2021(From October 1, 2020 to December 31, 2020)(1) Consolidated Financial Statements (Cumulative)
Revenue
Mil. Yen

Q1 FY2021
Q1 FY2020

9,767
7,602

Operating profit% Mil. Yen

28.5
-

3,122
2,105

Basic earnings per
share(Percentages represent year-on-year % change)

Profit before
income taxes%

Mil. Yen

48.3
-

3,038
2,758

% Mil. Yen

10.1
-

%

Mil. Yen

1,749 △0.3
1,754 67.1

1,704
1,729

% Mil. Yen

△1.4
60.2

%

1,504 △24.4
1,989 832.9

Diluted earnings per
share

Yen
23.16
23.51

Q1 FY2021
Q1 FY2020

Profit attributableTotal
to owners ofcomprehensive
parentincomeProfit

Yen
22.52
22.95

(Note) Macro Kiosk Berhad has been deconsolidated and has been reclassified as discontinued operations. As a result, revenue,
operating profit and profit before income taxes exclude discontinued operations and present the amounts for continuing operations only.
The corresponding figures in the previous year of Q1 FY2020 have been similarly restated, and the year-on-year percentage figures forQ1 FY2020 not shown for this reason.

(2) Consolidated Financial Position
Total assets

Q1 FY2021
FY20202.

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

Total equity

Mil. Yen

Mil. Yen

Mil. Yen%

210,476
192,022

31,68333,45329,96331,734

14.2
16.5

Dividends
Annual dividend
End of Q1
FY2020
FY2021
FY2021 (forecast)(Note)

3.

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00

0.00

52.00

52.00

0.00

54.00

54.00

0.00

Revision to the most recently released dividend forecast:

No

Consolidated Financial Forecast for the Fiscal Year Ending September 2021
(From October 1, 2020 to September 30, 2021)(% represents year-on-year change)

Profit before
Operating profit
income taxes

Revenue
2Q FY2021
Full year(Note )

Mil. Yen%

19,11539,792

23.4
20.4

Mil. Yen%

6,492 38.5
12,985 25.0

Mil. Yen

Revision of the most recently released financial forecast:Profit% Mil. Yen

6,240 18.9
12,426 13.1

Profit attributable Basic earnings
to owners of parent per share%

Mil. Yen%

Yen

3,899 12.9
8,042 4.5

3,856
7,930

13.1
4.0

52.41
107.78No

The figures for revenue, operating profit and profit before income taxes present the amounts for continuing operations
only. The figures for the corresponding previous term have been restated to present continuing operations only, and theyear-on-year percentages are computed on this basis.

―1―

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

Q1 FY2021: 74,372,678

FY 2020:

74,301,000Q1 FY2021: 714,782
Q1 FY2021: 73,613,809

FY 2020: 714,781
Q1 FY2020: 73,561,719(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 FY2020; 709,705 shares for Q1
FY2021.)* 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 other factors.
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 9 of the attachment.
2 Results Presentation for Investors and Analysts to be held on February 12, 2021. Supporting materials and a video ofthe presentation 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…………………………………………...…..

9

2．Condensed Consolidated Financial Statements and Major Notes..………………………………………………..... 10（１）Condensed consolidated balance sheet …………………………………………………………………………

10（２）Condensed consolidated statement of income and statement of comprehensive income …………………

12（３）Condensed consolidated statement of changes in equity ……………………………………………...……… 14（４）Condensed consolidated statement of cash flows ……………………………………………………...………

15（５）Notes regarding the going concern assumptions………………………………………………………………..

17（６）Notes regarding the consolidated financial statement…………………………………………………………..

17➀ Cash and cash equivalents…………………………………………………………………………………….

17② Trade and other receivables…………………………………………………………………………………… 17③ Deposits to subsidiaries and affiliates………………………………………………………………………...

―3―

17

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.
Macro Kiosk Berhad has been deconsolidated from Third Quarter of Fiscal Year Ending September 2020 and has
been reclassified as discontinued operation in the condensed quarterly financial statements. As a result, figures forQ1 FY2020 for revenue, operating profit and profit before income taxes have been restated to exclude thediscontinued operation and present the amounts for continuing operations only.
① Consolidated operating results
The Group announces its earnings results for the cumulative first quarter of the consolidated fiscal year 2021
(October 1, 2020 to December 31, 2020) as follows.
(Unit: Thousand yen)
Q1 FY2020(From October 1, 2019
to December 31, 2019

Q1 FY2021(From October 1, 2020
to December 31, 2020

Rate of change (%)

Revenue

7,602,916

9,767,132

28.5

Operating profit

2,105,372

3,122,699

48.3

Profit before income taxes

2,758,778

3,038,656

10.1

1,729,329

1,704,968△1.4

Profit attributable to ownersof parent

a. Revenue
The Group’s revenue reached to ¥9,767 mil., up by 28.5% Year-on-Year (YoY). Overall trends were favorable
as the impact from COVID-19 was limited and from the recovery in transactions at some merchants as well as
the increased adoption of cashless payments. The Payment Processing Business revenue grew, led by steady
growth of E-Commerce (EC) market for online and recurring payments coupled with the expansion of theGroup’s services to the offline domain. The Money Service Business (MSB) revenue grew from the strong
trends seen in GMO Payment After Delivery transactions, a type of deferred payment service. Payment
Processing Business revenue was ¥7,122 mil. (up 32.8% YoY), Money Service Business (MSB) revenue was¥2,483 mil. (up 18.1% YoY) and Payment Enhancement Business revenue was ¥163 mil. (up 17.7% 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
Initial(Initial revenue)
Stock(Fixed revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring service
revenue)
Total

Q1 FY2020(From October 1, 2019
to December 31, 2019

Q1 FY2021(From October 1, 2020
to December 31, 2020

Rate of change(%)

659,126

876,42633.0

1,359,316

1,522,927

12.0

1,937,740

2,559,395

32.1

3,646,733

4,808,382

31.9

7,602,916

9,767,132

28.5

―4―

b. Operating profit
Operating profit reached ¥3,122 mil., up by 48.3% YoY, making steady progress towards achieving the full year
earnings forecast for the Fiscal Year ending September 2021. This is due to revenue growth and that credit
costs were controlled at a certain level in the Money Service Business segment.
By segment, Payment Processing Business segment profit (operating profit) was ¥3,411 mil., up 36.3% YoY;
Money Service Business segment profit (operating profit) stood at ¥489 mil., up 45.4% YoY; Payment
Enhancement Business segment profit (operating operating) of ¥20 mil. (previous Q1 was segment loss of ¥1mil.)
For details please refer to page 6 of “② Results by segment” of the “(1) Consolidated operating results”.
c. Profit before income taxes
Pre-tax profit reached ¥3,038 mil., up 10.1% YoY. The reason the pre-tax profit growth rate of 10.1% YoY islower than the operating profit growth rate of 48.3% YoY, is due to gains on investment partnerships of ¥223mil.
that increased the financial income to ¥273mil. and equity method investment gains of ¥427mil. recorded in thesame period of the previous fiscal year.
② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand yen)
Q1 FY2020(From October 1, 2019
to December 31, 2019

Q1 FY2021(From October 1, 2020
to December 31, 2020

Rate of change(%)

Payment Processing Business
Revenue
Operating profit

5,363,714
2,502,263

7,122,180
3,411,105

32.8
36.3

Money Service Business
Revenue
Operating profit

2,102,490
336,618

2,483,398
489,533

18.1
45.4

139,243△1,954

163,822
20,014

17.7－

Adjustments
Revenue
Operating profit (△=loss)△2,532△731,555△2,268△797,953

－
－

Total
Revenue
Operating profit

7,602,916
2,105,372

9,767,132
3,122,699

28.5
48.3

Segment

Payment Enhancement Business
Revenue
Operating profit―5―

a. Payment Processing Business
The main focus areas of the Payment Processing Business are online payment, recurring payment services,offline payment processing service and, support services to financial institutions and financial service providers.
In the online payment and recurring payment domain, we focused our efforts to acquire large merchants andexpand our services to non-EC operators given the backdrop of the steadily expanding EC market.
The impact from the COVID-19 contagion was limited during the first quarter under review. In the online
payment and recurring payment domain, revenues recovered at certain merchants with relatively high pertransaction-value that were adversely affected in the previous fiscal year, micropayments increased from therising adoption of cashless payment, E-commerce (EC) market expanded and, transactions increased for digitalcontent, public utilities and taxes. This led to the transaction value growing by 43.7% YoY and transaction
volume growing by 51.5% YoY. Additionally, the new service “SMS Sentaku-Barai” (SMS Choice of Payment), a
service to digitalize payment of electric power bills promoted by TEPCO Energy Partner, Inc., commenced
during the first quarter, contributing to revenues in this segment.
In the offline domain, sales of payment terminals trended favorably by capturing demand for terminals for ICchip embedded credit cards from the amendments to the Installment Sales Act, transactions increased on thepayment terminals for the next generation payment platform “stera” and, projects related to the Unattended
Market such as ticket machines and fare adjustment machines were secured, which is one of the target markets.
As a result, segment revenues reached ¥7,122 mil., up 32.8% YoY and segment profit (operating profit) was¥3,411 mil. up 36.3% 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 tolend growth capital to merchants based on their payment and other related data; Lending service to overseas
operators; Remittance Service; and GMO Payment After Delivery offered by the consolidated subsidiary GMO
Payment Service, Inc.
In this first quarter under review, GMO Payment After Delivery, a type of deferred payment service, showed asteady trend supported by growing nesting demand despite some merchants that were adversely affected by
COVID-19. In addition, credit related costs were controlled at a certain level, leading to the steady growth inrevenue and segment profit. Remittance service grew on the back of the increased demand for ticket refunds
etc., from event cancellations due to COVID-19, and Early Payment service revenues also increased YoY
during the first quarter under review. The lending service to overseas operators continues to make progress insecuring new potential customers that can generate stable revenues in the future.
As a result, segment revenue reached ¥2,483 mil., up 18.1% YoY and segment profit (operating profit) reached¥489 mil., up 45.4% 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’ growth, and“Medical Kakumei byGMO,” a reservation management system to enable operational efficiency at the reception
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 and complete the reception and payment, as well as manage patient registration cardon the smartphone, for multiple medical institutions that implement this service. This service’ revenues
increased 94.7% YoY from the heightened demand due to COVID-19, thereby contributing to the segment’s
revenue growth.
As a result of the above, segment revenue was ¥163 mil., up 17.7% YoY and segment profit (operating profit)
was ¥20 mil. compared to the previous Q1 segment loss (operating loss) of ¥1 mil.
Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment

Major service

Major companies of the service

Payment processing service
Payment
Processing
Business(Online billing and recurring billing)

GMO Epsilon, Inc. (consolidated subsidiary)

Payment processing service
GMO Financial Gate, Inc. (consolidated subsidiary)(Offline payment)
GMO Payment After Delivery
Money Service
Business

GMO Payment Gateway, Inc.

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

Remittance service

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

Transaction lending

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

Early Payment service
Payment

GMO Payment Gateway, Inc.

Online Advertising

Enhancement
Business

GMO Epsilon, Inc. (consolidated subsidiary)

GMO Medical Reservations Technology Co., Ltd.
Medical Kakumei byGMO―7―(consolidated subsidiary)(2) Status of consolidated financial position
Assets, liabilities and net assets
a. Assets
Total assets at the end of the consolidated first quarter under review increased by ¥18,454 mil. from the end of
the previous fiscal year end to reach ¥210,476 mil. This is mainly due to an increase in advance payment of¥13,332 mil., an increase in accrued revenues of ¥5,269 mil.
The Group has ¥3,350 mil. deposits to subsidiaries and affiliated companies included in the balance of cash
and cash equivalents at the end of the consolidated first quarter under review, as stated in ➀ Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥2,000 mil.
of deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, thetotal balance of the Group’s deposits to subsidiaries and affiliated companies stands at ¥5,350 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 accountthe number of days required for processing the application.
b. Liabilities
Balance of liabilities at the end of the consolidated first quarter under review stood at ¥178,793 mil., anincrease of ¥20,223 mil. from the end of the previous consolidated fiscal year, mainly due to an increase inaccrued expenses of ¥5,015 mil., an increase in deposits received of ¥15,549 mil.
c. Equity
Equity balance at the end of the consolidated first quarter under review was ¥31,683 mil., a decrease of ¥1,769
mil. from the end of the previous consolidated fiscal year. This was mainly due recording the quarterly net profitof ¥1,749 mil. and the conversion of convertible bond-type bonds with stock acquisition rights of ¥542 mil.,which was partially offset by the decline in other comprehensive profit of ¥244 mil. and retained earnings of¥3,826 mil. from dividend payouts.
② Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated first quarter under review increased by¥3,599 mil. versus the balance at the start of the term, to reach ¥99,430 mil. The state of cash flows over the
first quarter under review is discussed below.
a. Cash flow from operating activities
Net funds provided by operating activities during the consolidated first quarter under review amounted to¥3,026 mil., which compares to ¥16,985 mil. in net funds provided the same period of the previous year. This
resulted from cash outflows from (i) an increase in advances paid of ¥13,332 mil., (ii) an increase in accrued
revenues of ¥5,264 mil. (iii) corporate and income tax payment of ¥2,696 mil. which was offset by cash inflowsof (i) profit before tax of ¥3,038 mil., (ii) increase in accrued expenses of ¥5,009 mil., and (iii) increase indeposits received of ¥15,494 mil.
b. Cash flow from investing activities
Net funds provided by investing activities during the consolidated first quarter under review totaled ¥3,789 mil.,which compares to a net funds used of ¥963 mil. in the same period of the previous year. This is due to cash
outflows from (i) acquisition of intangible assets of ¥340 mil., (ii) payment into deposits to subsidiaries andaffiliated companies of ¥2,000 mil., which was offset by cash inflows from (i) proceeds from sale of investment
securities of ¥489 mil. and (ii) proceeds from withdrawals from deposits to subsidiaries and affiliated companiesof ¥5,000 mil.

―8―

c. Cash flow from financing activities
Net funds used by financing activities over the consolidated first quarter under review was ¥3,184 mil., which
compares to net funds used of ¥2,952 mil. in the same period of the previous year. This is due to cash inflows
from the net increase in short term borrowings of ¥1,000 mil. which was offset by net outflows from repaymentsof long-term borrowings of ¥200 mil., dividend payouts of ¥3,797 mil.

(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 merchandizing continues to grow very rapidly, helped by favorable externalities such as increased penetration ofsmartphones and logistic/distribution industry reforms. At the same time, the broader EC market, which is ouraddressable market, is expanding from the widening scope of EC market driven by the online migration of B2B andC2C transactions. Furthermore, online migration of payments related to our daily life such as non-merchandise
services, public utilities, taxes and public dues and medical expenses is progressing solidly. The consolidated
subsidiary, GMO Financial Gate, Inc., which addresses the offline market, is contributing to expand of the Group’s
scope of business from the emerging business opportunities arising from the cashless promotions of various
methods of payments including credits cards in the offline market.
For the Fiscal Year ending September 2021, despite the possibility of being affected by the slump in private
consumption from the resurgence of COVID-19 contagion, the impact from the COVID-19 contagion is thought to beminimal as of this writing. This is due to the continuing trends of cashless payments, online migration of payments, inaddition to the business’ characteristic of being resilient against macro-economic fluctuations due to the diverse baseof merchant across various industries to which the services are provided to.
Revenue expansion is expected in all reportable segments from the continuing efforts to acquire large and highgrowth merchants and financial institutions, order wins for large projects and, the early monetization of new services
such as the next generation payment platform stera.
The earnings forecast for Fiscal Year ending September 2021 is revenues of ¥39,792 mil. (up 20.4% YoY), operating
profit of ¥12,985 mil. (up 25.0% YoY), pre-tax profit of ¥12,426 mil. (up 13.1% YoY), net profit of ¥8,042 mil. (up 4.5%
YoY) and profit attributable to owners of parent of ¥7,930 mil. (up 4.0% YoY).

―9―

2. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2020)

Notes

End of previous consolidated
fiscal year
(September 30, 2020)

Cash and cash equivalents➀

95,830,807

99,430,463

Operating and other receivables②

10,782,296

10,401,411

Advances paid

31,039,748

44,372,189

Accrued revenue

23,585,142

28,854,269

Inventories

1,440,999

1,803,341

5,000,000－

1,163,608

467,123

AssetsCurrent assets

Deposits to subsidiaries and affiliates③

Other financial assets
Other current assets

537,329574,125

169,379,933

185,902,924

Tangible assets

3,714,793

4,123,446

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

4,854,253

4,930,437

3,740,933

4,164,567②

1,975,100

1,975,100

Deposits to subsidiaries and affiliates③－

2,000,000

Other financial assets

6,711,766

5,524,219

Deferred Tax Assets

1,530,494

1,747,385

Total current assets
Non-current assets

Other non-current assets
Total non-current assets
Total assets―10―

115,346

108,737

22,642,689

24,573,894

192,022,622

210,476,818

NotesEnd of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
(December 31, 2020)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

4,296,647

5,365,538

Accrued expenses

19,385,695

24,401,442

Deposits received

87,059,213

102,608,490

Borrowings

18,800,400

19,731,700

Other financial liabilities

400,217591,404

Income taxes payable, etc.

2,491,098

1,176,497

352,812342,545

Provisions
Other current liabilities

3,383,652

2,627,483

Total current liabilities

136,169,737

156,845,103

16,814,650

16,296,202

131,400－

Non-current liabilities
Corporate bonds
Borrowings
Other financial liabilities

3,013,338

3,226,608

Provision

260,843

260,927

Deferred tax liabilities

54,17050,467

Other non-current liabilities

2,124,966

2,113,768

Total non-current liabilities

22,399,369

21,947,974

158,569,106

178,793,077

Capital stock

4,712,900

4,987,190

Capital surplus

5,675,561

5,996,247

Total liabilities
EquityRetained earnings

20,725,465

18,934,575

Treasury stock△1,149,341△1,150,687

1,769,560

1,195,810

31,734,145

29,963,136

1,719,369

1,720,604

33,453,515

31,683,740

192,022,622

210,476,818

Other items of equity
Total equity attributable toowners of parent
Minority interests
Total equity
Total liabilities and equity―11―(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q1 FY2020(From October 1, 2019
to December 31, 2019)

Continuing Operations
Revenue
Cost of revenue(Unit: Thousand yen)
Q1 FY2021(From October 1, 2020
to December 31, 2020)

7,602,916△2,113,410

9,767,132△2,817,258

5,489,505

6,949,873

32,76549,757△3,413,939△3,872,313△2,958△4,618Operating profit

2,105,372

3,122,699

Financial income

273,861

7,812

Financial expense△47,857△69,946

Equity method investment gains or loss

427,402△21,909

Profit before income taxes

2,758,778

3,038,656

Income tax expenses△970,822△1,289,469

Profit from continuing operations

1,787,955

1,749,186△33,342－

1,754,613

1,749,186

1,729,329

1,704,968

25,28344,217

1,754,613

1,749,186

Continuing operations

23.80

23.16

Discontinuing operations

△0.29

－

23.51

23.16

Continuing operations

23.24

22.52

Discontinuing operations

△0.28

－

22.95

22.52

Gross profit
Other income
Selling, general and administrative
expenses
Other expense

Discontinued Operations
Profit/Loss from discontinued(△=loss)
Quarterly profit

operations

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (yen) (△=loss)

Total

Diluted earnings per share (yen) (△=loss)

Total

―12―

Condensed consolidated statement of comprehensive income

Notes

Q1 FY2020(From October 1, 2019
to December 31, 2019)

Profit(Unit: Thousand yen)
Q1 FY2021(From October 1, 2020
to December 31, 2020)

1,754,613

1,749,186△70,311△463,097

Shares of other comprehensive incomeof equity method affiliates

250,627

316,844

Total of Items that will
reclassified to profit or loss

180,315△146,252

41,113△67,340

13,270△31,264

54,383△98,604

234,699△244,857

1,989,312

1,504,328

1,968,122

1,461,871

21,19042,457

1,989,312

1,504,328

Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income

not

be

Items that will be reclassified to profit or loss
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

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

―13―

(3) Condensed consolidated statement of changes in equity
First quarter of the previous consolidated fiscal year (From October 1, 2019 to December 31, 2019)(Unit: Thousand yen)
Total equity
Other
CapitalCapital Retained Treasury
attributable Minority
Total
Notes
items ofstock
surplus earnings
stock
to owners of interests Equity
equityparentBalance as of October 1,
4,712,900 5,847,480 15,884,444 △1,181,846 1,231,655
26,494,633 1,044,664 27,539,297
2019
Cumulative effects of－－△97,243－－△97,243 △38,971 △136,214
accounting changes
4,712,900 5,847,480 15,787,200 △1,181,846 1,231,655
26,397,389 1,005,692 27,403,082
Restated Balance
ProfitOther comprehensive
incomeQuarterly comprehensive
incomeDividends
Transfer from other items
of equity to retained
earnings
Share-based paymenttransaction
Changes in the interest incontrolled subsidiary
Other increase/decrease
Total transactions withownersBalance as of December
31, 2019－－

1,729,329－－

1,729,329

25,283

1,754,613

－

－

－

－

238,792

238,792△4,093

234,699－－

1,729,329－

238,792

1,968,122

21,1901,989,312－－ △2,648,221－－△2,648,221－－

25,788－△25,788

－

－

－

－

28,055－－△22

28,032

4,870

32,902－△9,528－－－△9,528－△9,528

－

－

－

－

△313

△313

－

△313

18,526 △2,622,433－△26,125△2,630,031

5,866,006 14,894,096 △1,181,846

1,444,322

25,735,480 1,031,753 26,767,233－
4,712,900－ △2,648,221

4,870 △2,625,161

First quarter of the current consolidated fiscal year (From October 1, 2020 to December 31, 2020)(Unit: Thousand yen)
Total equity
Other
CapitalCapital Retained Treasury
attributable Minority
Total
Notes
items ofstock
surplus earnings
stock
to owners of interests Equity
equityparentBalance 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
1,704,968
44,217 1,749,186－－ 1,704,968－－
ProfitOther comprehensive－－－－ △243,097△243,097 △1,759 △244,857
incomeQuarterly comprehensive
1,461,871
42,457 1,504,328－－ 1,704,968－ △243,097
incomePurchase of treasury－－－△1,345－△1,345－△1,345stock－－ △3,826,483－－△3,826,483－ △3,826,483
Dividends
Dividends paid to non－－－－－
－ △63,671△63,671
controlling interests
Conversion of convertible
274,290
268,699542,989
542,989－－－－bond-type bonds withstock acquisition rights
Transfer from other items
330,624－－－ △330,624－－－
of equity to retained
earnings
Share-based payment
26,971
26,943
26,943－－－△28－
transaction
Changes in the interest in
22,44812,135－△10,313－－－△10,313
controlled subsidiary
Changes in ownership
35,32935,32935,329－－－－－interest in associates
Total transactions with
274,290
320,686 △3,495,859△1,345 △330,652△3,232,880 △41,222 △3,274,103
ownersBalance as of December
4,987,190 5,996,247 18,934,575 △1,150,687 1,195,810
29,963,136 1,720,604 31,683,740
31, 2020―14―

(4) Condensed consolidated statement of cash flows

Notes(Unit: Thousand yen)
Q1 FY2021(From October 1, 2020
to December 31, 2020)

Q1 FY2020(From October 1, 2019
to December 31, 2019)

Net cash provided by (used in) operating
activities
Profit before income taxes
Profit before income taxes fromdiscontinued operations (△=loss)
Depreciation & Amortization
Impairment Loss
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/Decreaseinothercurrent
liabilities(△=decrease)Other

2,758,778

3,038,656△29,934－

356,193445,134

54,125－△220,936

62,134△427,402

21,90923,107△362,341

448,863

382,960△6,690,419△13,332,440△5,591,958△5,264,412

577,494

1,069,054

5,401,424

5,009,381

21,947,537

15,494,512

161,646△783,490△2,886△32,146

18,765,632

5,748,912

10,6997,812△41,032△33,678

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△1,749,884△2,696,454

16,985,415

3,026,591△191,343△46,012△398,531△340,758

Purchase of investment securities
Proceeds from sale of investment
securities
Proceeds from redemption of
investments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal 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△356,914△731－

489,922

118,757

29,960－△2,000,000－

5,000,000△76,337

△67

4,646

700,164△64,094△42,866△963,816

3,789,610

SubtotalInterest and dividends received
Interest paid

―15―

NotesNet cash provided by (used in) financing
activities
In/Decrease in short-term borrowings(△=decrease)
Repayment of long-term borrowings－

1,000,000△200,100△200,100－△1,345△2,634,495△3,797,895－△63,671－

26,478△117,465△147,901△2,952,060△3,184,435

56,335△32,109

13,125,873

3,599,656①

52,013,447

95,830,807①

65,139,321

99,430,463

Payment for stock buyback
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)
Q1 FY2021(From October 1, 2020
to December 31, 2020)

Q1 FY2020(From October 1, 2019
to December 31, 2019)―16―

(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, 2020)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
December 31, 2020)

94,880,807

96,080,463

950,000

3,350,000

95,830,807

99,430,463

Cash and cash equivalents
Deposits toand affiliates

subsidiaries

Total

②

Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2020)(Unit: Thousand yen)
End of Q1 of current
consolidated fiscal year
December 31, 2020)

Accounts receivable - trade5,187,311

6,141,389

Operating loans

6,040,284

4,703,462

1,628,262

1,631,483△98,461△99,824

Total

12,757,396

12,376,511

Current assets

10,782,296

10,401,411

Non-current assets

1,975,100

1,975,100

12,757,396

12,376,511

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.

―17―