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

Summary of Consolidated Financial Results
for the Six Months Ended November 30, 2022
(Based on Japanese GAAP)
January 13, 2023
Company name:Gunosy Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

6047
URL https://gunosy.co.jp
Representative Director and President

Yuya Taketani

Inquiries:
Corporate Officer and CFO
Scheduled date to file Quarterly Securities Report:

Tatsuyuki Iwase
January 13, 2023

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

Holding of quarterly financial results meeting:

Yes

TEL

(03)5953-8030(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended November 30, 2022 (from June 1, 2022 to November 30, 2022)(1) Consolidated operating results (cumulative)

Six months ended November 30, 2022
Six months ended November 30, 2021

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3,928 (10.4)(162)–(929)–(160)–
4,383
2.1
161 (57.0)
(40)
–(27)
–
Earnings per share

Diluted earnings per share

Yen(6.70)(1.18)

Six months ended November 30, 2022
Six months ended November 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2022
As of May 31, 2022

Net assets

Millions of yen
14,056
13,518Equity ratio

Millions of yen
12,32911,934%86.8
87.3

2. Cash dividends
Annual dividends per share

Year ended May 31, 2022
Year ending May 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
0.00

Yen
0.00

–––

Year ending May 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2023 (from June 1, 2022 to May 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
8,250
(8.3)
(290)
––––––

1

4. Notes(1) Changes in significant subsidiaries during the six months ended November 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2022

24,237,774 shares As of May 31, 2022

24,237,774 shares

Number of treasury shares at the end of the period
As of November 30, 2022

241,434 shares As of May 31, 2022

320,009 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended November 30, 2022

23,945,543 shares Six months ended November 30, 2021

223,702,801 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2022

As of November 30, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
OtherTotal current assets

6,492
7725,991
744

612

964

7,877

7,700

Non-current assets
Property, plant and equipment
Buildings and structures, net

1514

Other, net

108

Total property, plant and equipment

26

23

Goodwill
Other

63
50

52
43

Intangible assets

Total intangible assets

114

95

Investments and other assets
Investment securities

5,180

6,047

Deferred tax assets
Other

241
76

23
165

5,499

6,236

Total investments and other assets
Total non-current assets
Total assets

3

5,641

6,356

13,51814,056

(Millions of yen)
As of May 31, 2022

As of November 30, 2022Liabilities
Current liabilities
Accounts payable - trade

637

598

Accounts payable - other
Income taxes payable

297
73

401
50

Advances received
Provision for point card certificates

348
7433
0

Provision for share awards
Other

13185

13
170

1,563

1,667

Total current liabilities
Non-current liabilities
Provision for share awards

35

Deferred tax liabilities

1653

Total non-current liabilities

2059

1,583

1,727

Share capital
Capital surplus

4,099
4,099

4,099
4,099

Retained earnings
Treasury shares

3,709(463)

3,478
(332)

Total shareholders' equity

11,444

11,344

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

4799

Deferred gains or losses on hedges
Foreign currency translation adjustment

55
257

85673

Total accumulated other comprehensive income

360

858

86
43

83
42

11,934

12,32913,51814,056

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

November 30, 2021

November 30, 2022

Net sales
Cost of sales

4,383
2,457

3,928
2,408

Gross profit

1,925

1,520

Selling, general and administrative expenses

1,763

1,683

161

(162)

Interest income
Foreign exchange gains

016516

Other

01

Total non-operating income

1723

6
202

8–

Loss on investments in investment partnerships
Share of loss of entities accounted for using equity method

5–

12768

Other51

Operating profit (loss)Non-operating income

Non-operating expenses
Commission expenses
Idle asset expenses

219790Ordinary loss

Total non-operating expenses

(40)

(929)

Extraordinary income
Gain on sale of investment securities

80

9Gain on change in equity
Gain on reversal of share acquisition rights–
101,0012

Total extraordinary income

91

1,012

50

–

Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses

50–

Profit (loss) before income taxes

(0)

83

Income taxes - current
Income taxes - deferred

107
(83)

25219

Total income taxes

23245

Loss

(24)

(161)

3(1)

(27)

(160)

Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Loss
Other comprehensive income

Six months ended

Six months ended

November 30, 2021

November 30, 2022
(24)

(161)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

17–

51
30

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted

(15)

3–412

1498Comprehensive income

(22)

337

Comprehensive income attributable toComprehensive income attributable to owners of parent

(26)

338

3(1)

for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

November 30, 2021

November 30, 2022
(0)83

Depreciation
Amortization of goodwill

14111111

Foreign exchange losses (gains)
Interest income

(18)
(0)

(156)
(5)

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

(80)
50(9)
–

Share of loss (profit) of entities accounted for using equity
method–768

Loss (gain) on change in equity
Decrease (increase) in trade receivables–
49(1,001)
28

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other(73)17(39)
103

Decrease (increase) in prepaid expenses
Increase (decrease) in advances received(294)10(391)
85

Increase (decrease) in provision for share awards
Other, net

7(27)

928

Subtotal(332)(472)

Interest and dividends received
Income taxes paid0(139)

5(13)Net cash provided by (used in) operating activities

(471)

(481)

Cash flows from investing activities
Proceeds from withdrawal of time deposits

–

1,004

Purchase of investment securities
Proceeds from sale of investment securities(1,726)233(247)
29(13)

2(1,507)

789

Proceeds from disposal of treasury shares
Proceeds from issuance of shares

12912–

Other, net

(5)

(8)

Net cash provided by (used in) financing activities

153

Effect of exchange rate change on cash and cash equivalents

10(3)Net increase (decrease) in cash and cash equivalents(1,953)308

Cash and cash equivalents at beginning of period

8,952

4,947

Cash and cash equivalents at end of period

6,999

5,255

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

7