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, 2023
(Based on Japanese GAAP)
January 15, 2024
Company name:Gunosy Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Kentaro Nishio

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

Tatsuyuki Iwase
January 15, 2024

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, 2023 (from June 1, 2023 to November 30, 2023)(1) Consolidated operating results (cumulative)

Six months ended November 30, 2023
Six months ended November 30, 2022

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
%
3,729
(5.1)
(205)
–(751)–(1,018)–
3,928 (10.4)(162)–(929)–(160)–Earnings per share

Diluted earnings per shareYen(42.36)(6.70)

Six months ended November 30, 2023
Six months ended November 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2023
As of May 31, 2023

Net assets

Millions of yen
11,577
12,324Equity ratio

Millions of yen
10,162
10,857

%
87.1
87.5

2. Cash dividends
Annual dividends per share

Year ended May 31, 2023
Year ending May 31, 2024

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, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)
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
7,200 (10.6)(260)–(1,304)–(1,648)–(68.53)

1

4. Notes(1) Changes in significant subsidiaries during the six months ended November 30, 2023
(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:

No
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, 2023

24,237,774 shares As of May 31, 2023

24,237,774 sharesNumber of treasury shares at the end of the period
As of November 30, 2023

163,744 shares As of May 31, 2023

222,444 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended November 30, 2023

24,041,321 shares Six months ended November 30, 2022

223,945,543 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2023

As of November 30, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Other
Total current assets

5,925
669

5,188
722

677

952

7,272

6,863

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

88

Other, net

44

Total property, plant and equipment

1212Goodwill
Other

40
0

290

Intangible assets

Total intangible assets

40

29

Investments and other assets
Investment securities

4,940

4,599

Deferred tax assets
Other

18
39

31
41

4,998

4,672

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

3

5,051

4,713

12,324

11,577

(Millions of yen)
As of May 31, 2023

As of November 30, 2023

Liabilities
Current liabilities
Accounts payable - trade

421

386

Accounts payable - other
Income taxes payable

325
42302
97

Advances received
Provision for point card certificates

466
0420
0

9–

84

Provision for share awards
Provision for bonuses
Other

172

135

1,438

1,355

Provision for share awards
Deferred tax liabilities

919

949

Total non-current liabilities

28

59

1,466

1,414

Shareholders' equity
Share capital

4,099

4,099

Capital surplus
Retained earnings

4,099
2,478

4,099
1,408

Treasury shares(307)(216)10,369

9,390

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

169065(11)Foreign currency translation adjustment

311

642

Total accumulated other comprehensive income

419

696

68

75

10,857

10,162

12,324

11,577

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
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, 2022

November 30, 2023

Net sales
Cost of sales

3,928
2,408

3,729
2,334

Gross profit

1,520

1,395

Selling, general and administrative expenses

1,683

1,600

Operating loss

(162)

(205)

Interest income
Foreign exchange gains

5162020

Other

12

Total non-operating income

2342

Commission expenses
Loss on investments in investment partnerships

812421

Share of loss of entities accounted for using equity methodOther768
15620

Total non-operating expenses

790

588(929)(751)

91,001––20

1,0120––19165

Non-operating income

Non-operating expenses

Ordinary loss
Extraordinary income
Gain on sale of investment securities
Gain on change in equity
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses–

185

Profit (loss) before income taxes

83(937)

Income taxes - current
Income taxes - deferred

25219

79
1

Total income taxes

245

81

Loss(161)(1,018)(1)–(160)(1,018)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, 2022

November 30, 2023
(161)

(1,018)Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

51
30

48
(101)

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

3–412330498277

Comprehensive income

337(741)

Comprehensive income attributable toComprehensive income attributable to owners of parent

338(741)(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, 2022

November 30, 2023
83(937)

11–11911(156)

11(156)

Interest income
Loss (gain) on sale of investment securities

(5)
(9)

(20)
–

Loss (gain) on valuation of investment securities
Share of loss (profit) of entities accounted for using equity

–

165

768

562

Depreciation
Impairment losses
Amortization of goodwill
Foreign exchange losses (gains)

methodLoss (gain) on change in equity(1,001)–

Decrease (increase) in trade receivables
Increase (decrease) in trade payables

28
(39)

(52)
(34)

Increase (decrease) in accounts payable - other
Decrease (increase) in prepaid expenses

103(391)

(23)
(300)

Increase (decrease) in advances received
Increase (decrease) in provision for share awards

859(46)
8

Other, net

28

12

Subtotal(472)

(789)

520

Interest and dividends received
Income taxes paid

(13)

(6)

Net cash provided by (used in) operating activities

(481)

(775)

Proceeds from withdrawal of time deposits
Purchase of investment securities

1,004
(247)

882
(14)

Proceeds from sale of investment securities
Other, net

292–
(1)

Net cash provided by (used in) investing activities

789866

Cash flows from investing activities

Cash flows from financing activities
Proceeds from disposal of treasury shares
Commission fee paid

12–(8)(5)

Net cash provided by (used in) financing activities

3(5)Effect of exchange rate change on cash and cash equivalents(3)

2

Net increase (decrease) in cash and cash equivalents

308

87

Cash and cash equivalents at beginning of period

4,947

5,100

Cash and cash equivalents at end of period

5,255

5,188

7