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

Summary of Consolidated Financial Statements for the Third Quarter FY2022(Based on Japanese GAAP)
August 8, 2022
Name of listed company: GMO Financial Gate, Inc.
Exchange: Tokyo Stock Exchange Growth
Stock code:4051
URL https://gmo-fg.com/
Representative: Kentaro Sugiyama President & Chief Executive Officer
Contact:
Masamitsu Ikezawa Director & Administrative Division Executive Manager Tel: +81-3-6416-3881

Scheduled submission date of quarterly
Scheduled date of commencement forAugust 10, 2022－
reportdividend payment
Supplemental materials prepared for : Yes
financial results
Information meeting arranged related to : Yes (for institutional investors and analysts )financial results(Amounts rounded down to the nearest one million yen)

1. Consolidated Financial Statements for the Third Quarter, FY2022(From October 1, 2021 to June 30, 2022)(1) Consolidated Financial Statements (Cumulative)(Percentages represent year-on-year % change)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Revenue
Mil.YenQ3 FY2022
Q3 FY2021(*) Comprehensive profit%

Mil.Yen

7,446
53.9
4,837
70.6
Q3 FY2022
Basic earnings per
share

Q3 FY2022
Q3 FY2021%

Mil.Yen

563
20.8
466
12.0
360Mil.Yen( 28.9%)%

Mil.Yen

%

562
20.3
358
14.9
467
16.9
311
30.5
Q3 FY2021 279Mil.Yen( 27.7%)

Diluted earnings per
share

Yen

Yen

86.94
77.62

85.94
74.87

(2) Consolidated Financial Position
Total assets
Q3 FY2022
FY2021(Note) Equity Capital

2.

Q3 FY2022

Total equity

Equity ratio

Mil.YenMil.Yen

6,157
7,136

4,552
4,376
4,389 Mil.Yen

%

71.3
59.1
4,216Mil.Yen

FY2021Dividends
Annual Dividend
End of Q1

End of Q2

Yen

End of Q3

Yen

FY20210.00－
FY20220.00－
FY2022(forecast)(Note) Revision to the most recently released dividend forecast

End of Q4

Total

Yen

Yen

Yen

－

51.00

51.00

－
: No

57.00

57.00

3. Consolidated Financial Forecast for the Fiscal Year Ending September 2022
(October 1, 2021 to September 30, 2022)(Percentages represent quarter-on-quarter / year-on-year % change)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Revenue
Mil.Yen%Mil.Yen%Mil.Yen%Mil.Yen%Yen

FY20229,800 38.2
737 25.1
737 19.0
461
12.1
111.90(Full year)(Note) Revision to the most recently released financial forecast: Yes
For more information on revised consolidated earnings forecast, see “Announcement of Revisions to Consolidated
Financial Forecast for the Fiscal Year Ending September 30, 2022”, released today (August 8, 2022)―1―

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

Notes:(1) Changes of important subsidiaries during the period: No(change of specific subsidiaries that leads to a change in the scope of consolidation)
Number of new subsidiaries- (Name); Number of excluded subsidiaries: - (Name(2) Adoption if the accounting method peculiar to quarterly financial statements

)

: No

(3) Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by accounting criteria: Yes[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No[4] Restatement of prior period financial statements: No(4) 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

Q3 FY2022

4,130,110 FY2021

4,106,320

Q3 FY2022

88 FY2021

65[3] Average number of shares during the term

Q3 FY2022**

4,119,393 Q3 FY2021

4,014,766

Quarterly financial statements are not subject the review by certified public accountants or financial
statement auditors.
Explanation of the appropriate use of forecasts and other special notes
The forward-looking statements, including business results forecasts, contained in this document are based on
information available to the company at the time of preparation and on certain assumptions deemed reasonable by
the company. Forward-looking statements are not intended as a promise of actual results by the company. Actual
results may differ materially due to a variety of factors. For more regarding assumptions related to earnings forecasts
and precautions concerning the use of earnings forecasts, see 1.Qualitative Information on Quarterly Consolidated
Financial Statements (3) Discussion of consolidated earnings forecasts and other forward-looking information on
page 6 of Attached Materials.

―2―

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

Table of contents of attachments

1. Qualitative Information on Quarterly Consolidated Financial Statements……………………………..4(1) Discussion of operating results……………………………………………………………………………4(2) Discussion of financial position……………………………………………………………………………5(3) Discussion of consolidated earnings forecasts and other forward-looking information……………..6

2. Quarterly Consolidated Financial Statements and Major Notes………………………………………..7(1) Quarterly consolidated balance sheet……………………………………………………………………7(2) Quarterly consolidated statement of income and statement of comprehensive income……………9(3) Notes regarding the quarterly consolidated financial statements……………………………………..11(Notes regarding the going concern assumptions)…………………………………………………….11(Changes of accounting policy)…………………………………………………………………………..11(Notes regarding significant changes in shareholders’ equity)………………………………………..11(Segment Information) …………………………………………………………………………………….11(Significant subsequent matter)…………………………………………………………………………..11―3―

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

1. Qualitative Information on Quarterly Consolidated Financial Statements(1) Discussion of operating results
Forward-looking statements in this document reflect GMO Financial Gate Group judgements as of the end of the
cumulative consolidated Third quarter of the fiscal year ending September 2022.
Financial results for the cumulative consolidated third quarter of the fiscal year ending September 2022 (October 1,
2021 to June 30, 2022) are as follows.
(Unit: Thousand Yen)
Nine Months Ended June 30, 2021
(October 1, 2020 to June 30, 2021)
Revenue

Nine Months Ended June 30, 2022

Difference(October 1, 2021 to June 30, 2022)(%)

4,837,219

7,446,363

53.9

Operating profit

466,636

563,736

20.8

Ordinary profit

467,782

562,966

20.3

311,637

358,129

14.9

Quarterly profit
attributable to owners ofparenta. Revenue
We recorded revenue of ¥7,446,363 thousand (up 53.9% year on year).
For the three months ended June 30, 2022, main factors which contributed to revenue growth include an increase
in initial sales, centered on sales of payment terminals, an increase in stock-model revenue, consisting of stock,fee and spread revenues, due to increased number of active terminals, and a recovery in the amount of payments
processed mainly at restaurants and travel- and leisure-related member merchants following the lifting of the
COVID-19 quasi-emergency measures which were implemented in January 2022.
As a result, revenue for the nine months ended June 30, 2022 amounted to ¥7,446,363 thousand, achieving 87.1%
toward the consolidated revenue forecast for the fiscal year ending September 30, 2022 of ¥8,550 million
announced at the beginning of the fiscal year at a faster rate than the percentage of days elapsed in the year.
Revenue by business model for the nine months ended June 30, 2022 is as follows.
(Unit: Thousand yen)
Nine months ended June 30, 2022
(October 1, 2021 to June 30, 2022)
Initial (Initial sales)
Stock (Fixed fee sales)
Fee (Processing fee sales)
Spread (Merchant sales)
Total

Ratio (%)

5,234,799

70.3

621,446
882,1838.3
11.9

707,9349.5

7,446,363

100.0

b. Operating profit
We recorded operating profit of ¥563,736 thousand (up 20.8% year on year).
For the three months ended June 30, 2022, stock-model revenue having higher profitability than initial sales showedrobust growth, as described above, contributing to an increase in gross profit.
In terms of expenses, selling, general and administrative expense increased compared to the first and second
quarter of the fiscal year ending September 30, 2022 due mainly to recording of allowance for employees’ bonuses
as well as investments for the future including continued employment of human resources to support growth.
As a result, operating profit for the nine months ended June 30, 2022 amounted to ¥563,736 thousand, achieving
76.5% toward the consolidated operating profit forecast for the fiscal year ending September 30, 2022 of ¥737
million announced at the beginning of the fiscal year.

―4―Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

c. Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥358,129 thousand (up 14.9% year on year).
(2) Discussion of financial position(Assets)
As of June 30, 2022, current assets decreased ¥1,129,057 thousand from September 30, 2021 to ¥4,660,520
thousand. This was mainly because merchandise decreased ¥69,779 thousand due to strong sales of payment
terminals and cash and cash equivalents decreased ¥1,202,436 thousand as a result of shortening the deposit
cycle applicable to merchants in a bid to enhance our competitive advantage in the offline cashless payment
market. Non-current assets increased ¥150,155 thousand from September 30, 2021 to ¥1,496,696 thousand due
mainly to an increase in software of ¥193,154 thousand despite decreases in goodwill and customer-related
assets of ¥33,328 thousand and ¥32,108 thousand, respectively, due to amortization.
As a result, total assets decreased ¥978,902 thousand from September 30, 2021 to ¥6,157,217 thousand.
(Liabilities)
As of June 30, 2022, current liabilities decreased ¥1,144,430 thousand from September 30, 2021 to ¥1,575,252
thousand. This was mainly because account payable and deposits received decreased ¥563,153 thousand and¥922,007 thousand, respectively, despite an increase in short-term loans payable of ¥300,000 thousand. Noncurrent liabilities decreased ¥10,197 thousand from September 30, 2021 to ¥29,829 thousand due mainly to adecrease in deferred tax liabilities of ¥9,831 thousand.
As a result, total liabilities decreased ¥1,154,627 thousand from September 30, 2021 to ¥1,605,081 thousand.
(Net assets)
As of June 30, 2022, total net assets increased ¥175,725 thousand from September 30, 2021 to ¥4,552,136
thousand. This was mainly because retained earnings increased ¥358,129 thousand due to recording of profit
attributable to owners of parent while retained earnings decreased ¥209,419 thousand due to distribution ofdividend from surplus.

―5―

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(3) Discussion of consolidated earnings forecasts and other forward-looking information
We revised the consolidated earnings forecasts for the fiscal year ending September 30, 2022, which was announced
on November 11, 2021.
In the offline cashless payment market in which the Group operates, the number of member merchants adopting the
cashless payment is on the rise against a backdrop of the government-led promotion and diversifying payment methods
as well as a shift to safe payment methods amid the COVID-19 crisis. Under such environment, the Group is focusing
on sales of payment terminals meeting the needs of member merchants, enhancement of payment processing centers,
and acquisitions of new member merchants and alliance partners.
As described in “(1) Discussion of operating results, a. Revenue,” we recorded revenue of ¥7,446 million for the ninemonths ended June 30, 2022 thanks to increases in initial sales, centered on sales of payment terminals, and in stockmodel revenue due to increased number of active terminals, achieving 87.1% toward the previously announced
consolidated revenue forecast for the fiscal year ending September 30, 2022 of ¥8,550 million at a faster rate than thepercentage of days elapsed in the year. In light of this result, we carefully examined sales forecast of payment terminals
and stock-model revenue forecast for the three months ending September 30, 2022, and as a result, upwardly revised
the consolidated revenue forecast for the fiscal year ending September 30, 2022 to ¥9,800 million, an increase by¥1,250 million from the previous forecast.
Consolidated profit forecast remains unchanged as we plan to use the estimated excess of consolidated profit over theforecast for investment in growth in future periods, including recruiting activities to enhance management structure,
return of profits to employees in the form of a bonus, improvement of operational infrastructure to reinforce systems.
Please refer to “Announcement of Revisions to Consolidated Financial Forecast for the Fiscal Year Ending September
30, 2022” released today (August 8, 2022) for more detail.

―6―

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet
End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

Current assets
Cash and cash equivalents

3,433,620

2,231,184

Trade accounts receivable
Merchandise

521,859
1,614,846

622,443
1,545,066

222,334

265,035

AssetsOther financial assets
Allowance of doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Software△3,082△3,2085,789,578

4,660,520

60,281

48,146

646,884

840,038

Software in progress
Customer-related assets

192,938
128,432

227,189
96,324

Goodwill
Other intangible fixed assets

222,192
2,549

188,863
60

Total intangible fixed assets

1,192,997

1,352,475

Lease deposits
Bankruptcy rehabilitation claims

23,645995

23,013
1,020

Deferred tax assets
Other investments and other

69,5971973,041
19

Allowance for doubtful accounts△995△1,020Investments and other assets

Total investments and other assets
Totale non-current assets
Total assets―7―

93,262

96,074

1,346,541

1,496,696

7,136,119

6,157,217

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

End of previous consolidated
fiscal year
(September 30, 2021)(Unit: Thousand yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2022)

1,092,309

529,156－
144,166

300,000
111,366－
1,129,466

44,182
207,459

89,73320,000121,000
33,800Liabilities
Current liabilities
Account payable
Short term borrowing
Income taxes payable
Contract liabilities
Deposits received
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities

244,006

228,288

Total current liabilities

2,719,682

1,575,252

39,326700

29,494334

Non-current liabilities
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

40,02629,8292,759,709

1,605,081

Shareholders’ equity
Capital stock

1,605,446

1,617,987

Capital surplus
Retained earnings

1,618,557
994,020

1,631,098
1,142,730

Total liabilities
Net assets

Treasury stock
Total shareholders’ equity
Non-controlling interests
Total net assets
Total liabilities and net assets―8―△1,252△1,971

4,216,771

4,389,844

159,639

162,291

4,376,410

4,552,136

7,136,119

6,157,217

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

(2) Quarterly consolidated statement of income and statement of comprehensive income
Quarterly consolidated statement of income(Q3 cumulative)

Revenue

Q3 FY2021(October 1, 2020 toJune 30, 2021)
4,837,219(Unit: Thousand yen)
Q3 FY2022(October 1, 2021 toJune 30, 2022)
7,446,363

Cost of goods sold3,330,792

5,511,729

Gross profit

1,506,427

1,934,633

Selling, general and administrative expenses

1,039,790

1,370,897

466,636

563,736

Interest income
Other non-operating income

60
1,209

14
103

Total non-operating income

1,270

117

122

886

2

－

Operating profit
Non-operating income

Non-operating expense
Interest expense
Other non-operating expense
Total non-operating expense
Ordinary profit
Extraordinary loss
Loss on retirement of non-current assets

124

886

467,782

562,966

898－

Total extraordinary loss

898－

Profit before income taxes

466,883

562,966

Corporation income tax, resident tax, business tax

176,942

215,460

9,974△13,275

Total corporation income taxes

186,917

202,184

Profit279,966

360,782

Profit attributable to non-controlling shareholder（△）△31,671

2,652

Profit attributable to owners of parent

311,637

358,129

Corporation income taxes deferred―9―Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Quarterly consolidated statement of comprehensive income(Q3 cumulative)

ProfitComprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling shareholder―10―

Q3 FY2021(October 1, 2020 toJune 30, 2021)
279,966(Unit: Thousand yen)
Q3 FY2022(October 1, 2021 toJune 30, 2022)
360,782279,966

360,782

311,637

358,129△31,6712,652

Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

(3) Notes regarding the quarterly consolidated financial statements(Notes regarding going concern assumptions)Not applicable(Changes in accounting policies, etc.)(Application of accounting standard for revenue recognition, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020), etc. and recognizes revenue at an amount that it expects to receive in exchange for thepromised goods or services when the control of the goods or services is transferred to a customer. As a result, theGroup changed the method of revenue recognition applied to projects to develop center functions for the purpose of
acquiring specific member merchants from recognizing the total amount of consideration received from a customer asrevenue at a point in time to recognizing over a period of time as a performance obligation is satisfied.
We applied the Accounting Standard for Revenue Recognition, etc. from October 1, 2021 pursuant to the transitional
treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition, with the
cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to October 1, 2021, adjusted to the beginning balance of retained earnings as of October 1, 2021. However, in
accordance with the method provided for in Paragraph 86 of the Accounting Standard for Revenue Recognition, we
did not apply the new accounting policy retrospectively to the contracts for which substantially all revenue wasrecognized under the previous method prior to October 1, 2021.
As a result, revenue for the nine months ended June 30, 2022 decreased by ¥7,463 thousand, and operating profit,
ordinary profit and profit attributable to owners of parent decreased by ¥7,463 thousand, respectively. There was no
impact on the beginning balance of retained earnings as of October 1, 2021.
Pursuant to the transitional treatment provided for in Paragraph 28-15 of the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue arising fromcontracts with customers in the six months ended March 31, 2022 is not presented.
(Application of accounting standard for fair value measurement, etc.)
Effective October 1, 2021, the Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019), etc., and the new accounting policy provided for in the Accounting Standard for Fair
Value Measurement, etc. is applied prospectively pursuant to the transitional treatment provided for in Paragraph 19of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There was no impact on the quarterly consolidated financial
statements.
(Notes regarding significant changes in shareholders’ equity)
Not applicable(Segment information)[Segment information]
Segment information has been omitted as the GMO Financial Gate Group has only one business segment, namely theface-to-face payment processing services business, which is not material in terms of segment information disclosure.
(Significant subsequent matter)
Not applicable―11―