Summary of Consolidated Financial Statements for Q2 FY2024 (IFRS)
May 10, 2024
Name of listed company:
GMO Payment Gateway, Inc.
Exchange: Tokyo Stock Exchange
Stock code:
3769
URL: https://www.gmo-pg.com/en/corp/
Representative:
Issei Ainoura
President & Chief Executive Officer
Contact:
Ryu Muramatsu
Director, Executive Vice President
Tel: +81-3-3464-0182
Scheduled submission date
Scheduled date of commencement
May 13, 2024－of securities reportfor dividend payment
Supplemental materials prepared for financial results:
Yes
Information meeting arranged related to financial results:(for institutional investors and analysts)
Yes(Amounts rounded down to the nearest million yen)

１．Consolidated Financial Statements for Q2 FY2024 (From October 1, 2023 to March 31, 2024)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue％

Mil Yen(Percentages represent year-on-year change)

Profit before
income taxes％

Mil Yen％

Mil Yen36,099 18.5 12,652 22.2 13,118 33.1
30,454 26.6 10,350 25.1 9,856 13.4

Q2 FY2024
Q2 FY2023

Basic earnings per
share
Q2 FY2024
Q2 FY2023

Profit attributableTotal
to owners of comprehensive
parentincomeProfit％Mil Yen8,608 36.8
6,292 12.1

8,328
6,129

Mil Yen％ Mil Yen％

35.9 9,347
81.3
11.1 5,154 △58.2

Diluted earnings per
share

Yen

Yen

109.81
80.81

108.61
80.02(2) Consolidated Financial Position
Total assets
Q2 FY2024
FY2023

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%334,497292,346

97,251
94,804

94,572
92,274

28.3
31.6

２．Dividends
Annual dividend
End of Q1
FY2023
FY2024FY2024 (forecast)(Note)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00

89.00

89.00

0.00

103.00103.00

Revision to the most recently released dividend forecast:No

３．Consolidated Financial Forecast for the Fiscal Year Ending September 2024
(From October 1, 2023 to September 30, 2024)(% represents year-on-year change)

Revenue
FY2024(Note)

Operating profit

Profit before
income taxes

ProfitBasic earnings
attributable toper shareowners of parent

ProfitMil Yen%

Mil Yen%

Mil Yen%

Mil Yen%

Mil Yen%Yen

73,28616.1

25,00023.1

23,90415.8

15,961

15.5

15,52315.2

204.68

Revision to the most recently released financial results forecast:

―1―

No

※

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 FY2024: 76,557,545

FY 2023: 76,557,545

Q2 FY2024:
709,752
Q2 FY2024: 75,844,415

FY 2023: 715,071
Q2 FY2023: 75,842,492(Note) 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 FY2023; 704,305 shares for Q2
FY2024.)※※

These financial statements are not subject to the 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) Earnings Forecast” under “1. Qualitative Information on Consolidated Financial
Statements for the Quarter” on page 9 of the attachment.
Results Presentation for investors and analysts to be held on May 13, 2024. Supporting materials and a video ofthe presentation will be made available promptly on the company's website after the event.

2.

―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）Earnings 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 condensed consolidated financial statement………………………………………….…......

17➀

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

17➁

Trade and other receivables…………………...……………..………...……………..…..………………..

17③

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

17

―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 GMO Payment Gateway, Inc. (GMO-PG
or the Company) and its consolidated subsidiaries at the end of the quarter under review.
Consolidated operating results①

Cumulative financial results for the consolidated second quarter 2024 (October 1, 2023 to March 31, 2024) as
follows.
(Unit: Thousand Yen)
Q2 FY2023(From October 1, 2022
to March 31, 2023)

Q2 FY2024(From October 1, 2023
to March 31, 2024)

Rate of change (%)

Revenue

30,454,383

36,099,661

18.5

Operating profit

10,350,230

12,652,564

22.2

Profit before income taxes

9,856,370

13,118,209

33.1

6,129,098

8,328,671

35.9

Profit attributable to owners ofparentａ. Revenue

Revenue reached ¥36,099 mil, up 18.5% YoY. The sum total of online billing, recurring billing, Card Present (CP)payment and GMO Payment After Delivery’s transaction volume increased by 20.4% YoY and transaction value
by 24.8% YoY. As a result, the Payment Processing Business revenue reached ¥27,241 mil (up 18.1% YoY),
Money Service Business (MSB) revenue was ¥8,216 mil (up 19.4% YoY) and Payment Enhancement Businessrevenue was ¥693 mil (up 34.6% YoY). For details, please refer to page 5 of “② Results by segment” foundunder “(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 FY2023(From October 1, 2022
to March 31, 2023)

Q2 FY2024(From October 1, 2023
to March 31, 2024)

Rate of change(%)

Initial(Initial revenue)

5,275,587

6,376,456

20.9

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

4,526,686

5,484,639

21.2

8,568,672

10,360,394

20.9

12,083,437

13,878,171

14.9

30,454,383

36,099,661

18.5

Total

―4―

ｂ. Operating profit
Operating profit reached ¥12,652 mil, up by 22.2% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2024 (FY2024).
By segment, Payment Processing Business segment profit (operating profit) was ¥12,515 mil, up 21.0% YoY;
Money Service Business segment profit (operating profit) stood at ¥2,043 mil, up 38.1% YoY; Payment
Enhancement Business segment profit (operating profit) of ¥184 mil (up 62.2% YoY). For details, please refer topage 5 of “② Results by segment” found under “(1) Consolidated operating results” of “1. Qualitative Information
on Consolidated Financial Statements for the Quarter”.
ｃ. Profit before income taxes
Profit before income taxes reached ¥13,118 mil, up 33.1% YoY. The reason for the second quarter pre-tax profit
to increase by 33.1% YoY compared to the operating profit growth rate of 22.2% YoY is due to recording financial
expenses of ¥953 mil, including foreign currency loss of ¥526 mil, in same period of the previous fiscal year.
②

Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand Yen)
Segment
Payment Processing Business
Revenue
Segment profit (△=loss)

Q2 FY2023(From October 1, 2022
to March 31, 2023)

Q2 FY2024(From October 1, 2023
to March 31, 2024)

Rate of change(%)

23,070,074
10,341,836

27,241,363
12,515,966

18.1
21.0

6,879,418
1,479,802

8,216,799
2,043,432

19.4
38.1

Money Service Business
Revenue
Segment profit (△=loss)
Payment Enhancement
Business
Revenue
Segment profit (△=loss)
Adjustments
Revenue
Segment profit (△=loss)

515,165
113,941

693,607
184,81234.6
62.2△10,274△1,585,350△52,109△2,091,647

－
－

Total
Revenue
Segment profit (△=loss)

30,454,383
10,350,230

36,099,661
12,652,564

18.5
22.2

―5―

ａ. Payment Processing Business
The Payment Processing Business focusses on expanding payment processing services for online billing,recurring billing, and CP payments, as well as providing Banking as a Service (BaaS) support to financial
institutions and business operators. In the online billing and recurring billing domain, we focused our efforts toacquire large and medium- to small-sized merchants across various industries as well as expand our services toa wide array of non-EC merchants, given the backdrop of the steadily expanding E-Commerce (EC) market.
In the online billing and recurring billing domains, revenue in the non-merchandise sectors grew for the second
quarter under review, thanks to the growth of payments in public taxes/utilities and travel/ticket sectors and theincrease of online payments by new industries given the heightened needs for digital transformation (DX), despite
the adverse impact on transaction value from electricity tariff reduction caused by government measures tomitigate the impact of rapid economic change. In the merchandise sectors, daily household goods and food andbeverage sector increased, although small-sized merchants continue to be negatively affected due to the shift
towards CP consumption.
In the CP domain during the second quarter under review, initial revenue benefited from the steady sales of
payment terminals led by ‘stera,’ IoT terminals such as unattended machines, mobile terminals used in taxis, etc.,
thanks to the continuing high demand for cashless due to the increase in inbound consumption. In addition, stock,fee and spread revenues also increased from the stable operation of payment terminals from the contribution of
inbound consumption from the increase in foreign tourists.
Furthermore, in the Banking as a Service (BaaS) service, processing platform service revenue increased fromthe revenue contribution of a large-scale project commencing from the first quarter, given the backdrop of
expanding DX needs and cashless migration of payments by financial institutions and business operators.
As a result, segment revenue reached ¥27,241 mil, up 18.1% YoY and segment profit (operating profit) was¥12,515 mil, up 21.0% YoY.
ｂ. Money Service Business
Money Service Business (MSB) consists of Early Payment service to help merchants improve their cash flow;
Transaction Lending service, a loan service for merchants; Lending service to overseas FinTech operators;
Remittance service; Instant Salary byGMO, a salary prepayment service, and GMO Payment After Delivery
provided by the consolidated subsidiary GMO Payment Service, Inc.
During the second quarter under review, revenue for Payment After Delivery service increased from theacquisition of large merchants despite the cycling through of commission rate revisions in the previous fiscal year.
Also, the new Buy Now Pay Later (BNPL) service “atokara” that enables installment payment and addresses CPtransactions was launched on February 7, 2024 together with Sumitomo Mitsui Card Company, Limited. In thelending service to overseas FinTech operators, loan balance grew 25.3% YoY particularly in North America andIndia, which also contributed to segment revenue growth. Furthermore, the number of contracts trended steadily
for Instant Salary byGMO.
As a result, segment revenue reached ¥8,216 mil, up 19.4% YoY and segment profit (operating profit) was ¥2,043
mil, an increase of 38.1% YoY thanks to the decline in default rates that enabled credit cost to be controlled for
Payment After Delivery service as well as the growth in lending service to overseas FinTech operators.

―6―

ｃ. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service to support the revenue growth atmerchants the Group transacts with, and “Medical Kakumei byGMO,” a reservation management system
exclusively for medical institutions to enable operational efficiency at reception counters, provided by the
consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
In the second quarter under review, demand increased for services offered by GMO Medical Reservation
Technology Co. Ltd., such as smartphone-based app to make reservations, fill out medical questionnaires,complete reception and payment as well as to consolidate multiple patient registration cards from medical
institutions on the smartphone, resulting in a favorable revenue growth of 71.1% YoY as well as positively
contributing to profits. In addition, online advertising revenue also increased.
As a result of the above, segment revenue was ¥693 mil, up 34.6% YoY and segment profit (operating profit)
was ¥184 mil, up 62.2% YoY.

The table below shows the companies providing the various businesses/services by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)

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

Payment processing service
GMO Financial Gate, Inc. (consolidated subsidiary)(CP)
GMO Payment After Delivery

GMO Payment Service, Inc.
(consolidated subsidiary)

Remittance service
Money Service
Business

Transaction Lending
Overseas Lending

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

Early Payment service

Payment

GMO Payment Gateway, Inc.

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

Instant Salary byGMO

GMO Payment Gateway, Inc.

Online Advertising service

GMO Payment Gateway, Inc.

Enhancement
Medical Kakumei byGMO

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)Business―7―

（２）Status of consolidated financial position① Assets, liabilities and equity
ａ. Assets
Total assets at the end of the consolidated second quarter increased by ¥42,150 mil from the end of the previous
fiscal year to reach ¥334,497 mil. This is mainly due to the increase in cash and cash equivalents of ¥33,252 mil,trade and other receivables of ¥4,092 mil, advances paid of ¥3,502 mil, accrued revenues of ¥2,200 mil,inventories of ¥956 mil, other financial assets of ¥988 mil and goodwill and intangible assets by ¥1,140 mil,despite the decline in deposits to subsidiaries and affiliated companies of ¥5,300 mil.
ｂ. Liabilities
Balance of liabilities at the end of the consolidated second quarter under review stood at ¥237,246 mil, an
increase of ¥39,704 mil from the end of the previous consolidated fiscal year. This is mainly due to the increasein trade and other payables of ¥1,260 mil, accrued expenses of ¥3,343 mil, deposits received of ¥33,356 mil andborrowings of ¥4,175 mil., despite the decrease in income tax payables of ¥3,437 mil.
ｃ. Equity
Equity balance at the end of the consolidated second quarter under review was ¥97,251 mil, an increase of¥2,446 mil from the end of the previous consolidated fiscal year. This was mainly due to the increase in profit of¥8,608 mil. and other comprehensive income of ¥738 mil despite the decrease in retained earnings for dividend
payment of ¥6,749 mil. despite the increase
Consolidated cash flow③

Cash and cash equivalents (“funds”) at the end of the consolidated second quarter under review increased by¥33,252 mil compared to the balance at the start of the term, to reach ¥166,910 mil. The state of cash flows overthe second 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¥33,859 mil, which compares to ¥18,625 mil in net funds acquired in the same period of the previous year. This
resulted from cash outflows from (i) increase in trade and other receivables of ¥4,235 mil, (ii) an increase inadvances paid of ¥3,502 mil, (iii) an increase in accrued revenues of ¥2,200 mil, (iv) income tax payments of¥7,976 mil, which was offset by cash inflows of (i) profit before income tax of ¥13,118 mil, (ii) increase in accrued
expenses of ¥3,174 mil, (iii) increase in deposits received of ¥33,356 mil.
ｂ. Cash flow from investing activities
Net funds provided by investing activities during the consolidated second quarter under review totaled ¥1,827
mil, compared to the net funds acquired of ¥12,904 mil during the same period of the previous year. This resulted
from cash outflows from (i) purchase of intangible assets of ¥2,216 mil, (ii) purchase of investment securities of¥1,271 mil, which was offset by cash inflows from withdrawal of deposits to subsidiaries and affiliated companiesof ¥5,300 mil.
ｃ. Cash flow from financing activities
Net funds used by financing activities over the consolidated second quarter under review was ¥3,095 mil which
compares to net funds used of ¥8,338 mil during the same period of the previous year. This is mainly due to cash
inflows from net increase in short term borrowings of ¥3,900 mil which was offset by cash outflows from dividend
payouts of ¥6,745 mil.

―8―

（３）Earnings forecast
The businesses of GMO-PG and its consolidated subsidiaries are positioned primarily within the E-Commerce (EC)market, and the current merchandise sector of the B2C EC market is expected to continue to grow thanks to largescale business operators expanding their sales channel and changes in consumption behavior, despite somesaturation in the market segment addressed primarily by small-sized merchants. Additionally, the non-merchandise
domain, such as services and sectors closely related to daily life such as public utilities, taxes/public dues andmedical expenses, is expected to continue its high growth from the solid progress in online migration of payments. In
addition, the scope of the EC market itself is expanding driven by the online migration of inter-company transactions(B2B) and inter-consumer transactions (C2C).
The CP domain which is addressed by the consolidated subsidiary GMO Financial Gate, Inc. is undergoing an
acceleration in cashless adoption of various payment methods including credit cards. This is leading to new business
opportunities as well as to expand the scope of businesses for GMO-PG and its consolidated subsidiaries.
The business environment for the fiscal year ending September 2024 (FY2024) faces continued uncertainty overprivate consumption caused by uncertainties over the global state of affairs leading to volatile capital markets,
inflation and the decline in real wages, despite positive effects from the shift of economic activities to a post-COVID‘new Normal’ leading to an increase in inbound consumption and rising momentum for wage increases by corporates.
This is expected to have a negative impact on online payment for GMO-PG and its consolidated subsidiaries in thenear term. Given this business environment, we will work to strengthen the business foundation to continue to growoperating profit at a compound average growth rate (CAGR) of 25% by pursuing the priority initiatives such as
acquiring large-scale, growth-oriented merchants and undertaking large-scale projects, industry-specific DX
platforms that offers ‘payment + α’ solutions, BaaS support services to financial institutions and business operatorsand the next generation payment platform of ‘stera’.
The consolidated earnings forecast for FY2024 is revenue ¥73,286 mil (up 16.1% YoY), operating profit of ¥25,000
mil (up 23.1% YoY), profit before income taxes of ¥23,904 mil (up 15.8% YoY) and profit of ¥15,961 mil (up 15.5%
YoY) and profit attributable to owners of parent of ¥15,523 mil (up 15.2% YoY).

―9―

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

End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2024)

AssetsCurrent assets
Cash and cash equivalents①

133,658,153

166,910,556

Trade and other receivables②

18,953,746

24,052,998

Advances paid

63,387,197

66,890,125

Accrued revenue

33,395,131

35,595,530

Inventories

2,405,040

3,361,400

Deposits to subsidiaries and affiliates

5,300,000－

Other financial assets

650,307715,096

Other current assets

717,719910,020

Total current assets

258,467,295

298,435,726③

Non-current assets
Property, plant and equipment

3,353,504

3,958,967

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

9,310,325

10,450,874

9,194,822

9,583,290

3,622,301

2,615,698

Other financial assets

6,615,112

7,539,222

Deferred Tax Assets②

1,700,228

1,712,293

Other non-current assets

83,227

201,669

Total non-current assets

33,879,522

36,062,016

292,346,818

334,497,743

Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2024)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

6,555,211

7,815,535

Accrued expenses

25,371,033

28,714,578

Deposits received

97,231,797

130,588,776

Borrowings

20,395,000

24,340,000

Other financial liabilities

388,765

677,743

Income taxes payable, etc.

7,888,647

4,451,082

Provisions

320,963

308,034

Other current liabilities

5,138,950

5,670,957

Total current liabilities

163,290,369

202,566,708

Corporate bonds

19,763,730

19,806,486

Borrowings

8,955,000

9,185,000

Other financial liabilities

2,128,594

2,361,735

130,854

131,024

1,221,695

1,141,387

Non-current liabilities

Provisions
Deferred tax liabilities
Other non-current liabilities

2,051,729

2,053,923

Total non-current liabilities

34,251,605

34,679,557

197,541,975

237,246,265

Capital stock

13,323,135

13,323,135

Capital surplus

15,247,534

15,187,277

Retained earnings

50,768,961

52,351,139

Treasury stock△1,153,329△1,115,669

Other items of equity
Total equity attributable toowners of parent
Non-controlling interests

14,088,034

14,826,531

92,274,336

94,572,414

2,530,506

2,679,063

Total equity

94,804,843

97,251,478

292,346,818

334,497,743

Total liabilities
EquityTotal liabilities and equity―11―（２）Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

Q2 FY2023(From October 1, 2022
to March 31, 2023)

Revenue(of which, interest income※)
Cost of revenue
Gross profit(Unit: Thousand Yen)
Q2 FY2024(From October 1, 2023
to March 31, 2024)

30,454,383

36,099,661

5,573,649

6,679,073△10,845,249△12,831,709

19,609,134

23,267,952

Other income
Selling, general and administrative
expenses
Other expense

138,085

166,958△9,361,960△10,776,264△35,029△6,082

Operating profit

10,350,230

12,652,564

Financial income

462,285585,775

Financial expense△953,859△266,031△2,285145,901

9,856,370

13,118,209△3,563,564△4,509,573

6,292,805

8,608,636

6,129,098

8,328,671

163,707279,964

6,292,805

8,608,636

Basic earnings per share

80.81

109.81

Diluted earnings per share

80.02

108.61Equity method investment gains or loss
Profit before income taxes
Income tax expenses
Quarterly profit
Quarterly 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.

―12―

Condensed consolidated statement of comprehensive income

Notes

Q2 FY2023(From October 1, 2022
to March 31, 2023)

Quarterly Profit
Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Share of other comprehensive income ofequity 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
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand Yen)
Q2 FY2024(From October 1, 2023
to March 31, 2024)

6,292,805

8,608,636

45,157△250,239△119,218

67,636△74,061△182,602△1,064,106

921,441△1,064,106

921,441△1,138,168

738,838

5,154,636

9,347,475

4,997,9789,067,776

156,658

279,698

5,154,636

9,347,475

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

―13―

（３）Condensed consolidated statement of changes in equity
Second quarter of the previous consolidated fiscal year (from October 1, 2022 to March 31, 2023)

Notes

Balance as of October 1,
2022
Quarterly Profit
Other comprehensive
incomeQuarterly comprehensive
incomePurchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of March 31,
2023

Capitalstock

CapitalsurplusRetainedearnings

13,323,135 15,272,474(Unit: Thousand Yen)
Total equity
Other
NonTreasury
attributable
items ofcontrolling Total Equity
stock
to owners
equityinterestsof parent

49,424,496 △1,152,444 10,255,198

87,122,860

2,137,790

89,260,651

6,129,098

163,7076,292,805－－

6,129,098

－

－

－

－

－

6,129,098

－

－

－

△884

－

－ △12,134,807－－ △12,134,807

－

－

－

－

－

－

△102,856△102,856－

22,393－－－22,393－22,393－△67,386－－－△67,386

145,618

78,231－－△4,369－－△4,369－△4,369△44,993 △12,139,177

△884

－

13,323,135 15,227,481－－－ △1,131,119 △1,131,119－ △1,131,119

43,414,417 △1,153,329－

4,997,978156,658

5,154,636

△884

－

△884

－ △12,185,055
9,124,078△7,049 △1,138,168

79,935,783－ △12,134,807

42,761 △12,142,294
2,337,210

82,272,994

Second quarter of the current consolidated fiscal year (from October 1, 2023 to March 31, 2024)

Notes

Balance as of October 1,
2023
Quarterly Profit
Other comprehensive
incomeQuarterlycomprehensive income
Purchase of treasury
stock
Disposal of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Transfer from othercomponents of equity toretained earnings
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of March 31,
2024

Capitalstock

Capitalsurplus13,323,135 15,247,534

Retainedearnings

Treasurystock(Unit: Thousand Yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent

50,768,961 △1,153,329 14,088,034

92,274,336

2,530,506

94,804,843－－

8,328,671－－

8,328,671

279,964

8,608,636

－

－

－

－

739,104

739,104△266

738,838－－

8,328,671－

739,104

9,067,776

279,698

9,347,475

－

－

－

△777

－

△777

－

△777

－

△333

－

－

－

△333

－

△333

－

－ △6,749,980－－ △6,749,980

－

－

－

－

－

－

△165,221△165,221

－

－

△205

－

205

－

－

－

－

△71,117－

38,437－△32,680－△32,680－

11,194－－－

11,19434,08045,274

－

－

3,691

－

△812

2,878

－

2,878

△60,257 △6,746,493

37,659－13,323,135 15,187,277△607 △6,769,698

52,351,139 △1,115,669 14,826,531―14―

94,572,414－ △6,749,980△131,141 △6,900,840
2,679,063

97,251,478

（４）Condensed consolidated statement of cash flows
Notes(Unit: Thousand Yen)
Q2 FY2024(From October 1, 2023
to March 31, 2024)

Q2 FY2023(From October 1, 2022
to March 31, 2023)

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

9,856,370

13,118,209

1,167,932

1,574,278

491,573△319,744

2,285△145,901△1,611,996△956,359△5,059,409△4,235,297△5,349,818△3,502,927△2,675,833△2,200,419

1,362,305

1,260,144

2,232,829

3,174,208

25,186,724

33,356,912△1,113,538

528,643△461,552

29,974△427,855△352,299

23,600,018

41,329,422

Interest and dividends received

407,769

595,306

Interest paid

△71,437△88,455

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payments into restricted deposits
Proceeds from withdrawal of restricted
deposits
Purchase of property, plants andequipment
Purchase of intangible assets△5,310,850△7,976,401

18,625,500

33,859,872△9,088,620－

13,763,269－△350,731△168,848△2,179,039△2,216,696

Purchase of investment securities
Purchase of investments accounted forusing equity method
Proceeds from distributions ofinvestments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal of deposits
to subsidiaries and affiliates
OthersNet cash provided by (used in)investing activities△570,754△1,271,720－△200,000

150,582

415,538△5,300,000－

16,500,000

5,300,000△20,498△30,976

12,904,208

1,498,580―15―

NotesNet cash provided by (used in) financing
activities
Net
in/decreaseinshort-termborrowings (△=decrease)
Increase in long-term borrowings
Repayment of long-term borrowings
Dividends paid
Dividends paid to non-controllinginterests
Capital contributions fromnoncontrolling 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
Balance of cash and cash equivalents at
the end of period(Unit: Thousand Yen)
Q2 FY2024(From October 1, 2023
to March 31, 2024)

Q2 FY2023(From October 1, 2022
to March 31, 2023)

1,700,000

3,900,000

2,450,000

500,000－△225,000△12,121,488△6,745,593△102,856△165,221

23,89017,495△288,469△376,853△8,338,924△3,095,173△752,242

660,405

22,438,542

33,252,403①

113,967,930

133,658,153①

136,406,472

166,910,556―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, 2023)(Unit: Thousand Yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2024)

127,578,153

166,910,556

6,080,000－

133,658,153

166,910,556

Cash and cash equivalents
Deposits to subsidiaries
and affiliates
Total② Trade and other receivables
Breakdown of trade and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q2 of current
consolidated fiscal year
(March 31, 2024)

Trade and other receivables

7,414,365

9,654,981

Operating loans

14,760,925

16,587,364

661,867

760,519△261,110△334,168

Total

22,576,047

26,668,696

Current assets

18,953,746

24,052,998

Non-current assets

3,622,301

2,615,698

22,576,047

26,668,696

Other
Provisions for doubtful
accounts

Total③ Deposits to subsidiaries and affiliates

The deposits to subsidiaries and affiliates are deposits made from cash-on-hand to the CMS (cash management
system) operated by GMO Internet Group, for use by the entire GMO Internet Group companies.

―17―